Company Presentation

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1 Company Presentation September 2015

2 Disclaimer This document has been prepared by Tele Columbus AG (the "Company") solely for informational purposes. This presentation may contain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on the forward-looking statements. This presentation may contain references to certain non-gaap financial measures, such as Normalized EBITDA and Capex, and operating measures, such as RGUs, ARPU, Homes connected and subscribers pro forma calculation. These supplemental financial and operating measures should not be viewed as alternatives to measures of Tele Columbus s financial condition, results of operations or cash flows as presented in accordance with IFRS in its financial statements. The non-gaap financial and operating measures used by Tele Columbus may differ from, and not be comparable to, similarly titled measures used by other companies. For further information please see in particular the financial statements. The presentation does not constitute or form part of, and should not be construed as, and offered to sell or issue, or the solicitation of an offer to purchase, subscribe to or acquire, securities of the Company, or an inducement to enter into investment activity in the United States. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. None of the Company, the companies in the Company's group or any of their respective directors, offices, employees, agents or any other person shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of the presentation or its contents or otherwise arising in connection with the presentation. We disclaim any obligation to publicly update or revise any forward-looking statements or other information contained in this presentation. It is pointed out that the existing presentation may be incomplete or condensed, and it may not contain all material information concerning Tele Columbus AG or the Tele Columbus Group. All figures in this presentation are calculated based on exact numbers and results are rounded to appropriate accuracy. 2

3 Tele Columbus standalone at a glance Footprint 1 c.20% c.80% Eastern Parts Distribution of homes connected Ratingen Rhineland- Palatinate Saarland Bremen North Rhine- Westfalia Hesse Schleswig- Holstein Baden- Wuerttemberg Hamburg Lower Saxony Mecklenburg- West Pommerania Hanover Saxony- Anhalt Thuringia Bavaria Berlin- Brandenburg Berlin Saxony Dresden Highlights Sizeable cable player Third largest cable company in Germany in terms of number of subscribers Revenues FY2014: 213m 1 (Normalised total operating performance: 230m 1,2 ) Normalised EBITDA FY2014: 99m 1,2 (46.5% margin 1,3 ) Strong network assets 4 Homes connected: 1.68m Homes connected upgraded 6 in own L3 network 6 : 955k c.96% Docsis 3.0 penetration Highly attractive customer base for cross- and up-selling 4 c.97% of our unique subscribers are tenants in premises of Housing Associations Unique subscribers: 1.23m RGUs/subscriber: 1.50x 7 Acquisitions Acquired Leipzig based primacom in July 2015 for 711m EV (11.0x multiple pre-, 8.7x post-synergies 8 based on expected adjusted EBITDA ) Acquired Munich based pepcom on 13 September 2015 for 608m EV (9.5x multiple pre-, 7.9x post-synergies 10 based on expected normalized EBITDA ) Note: Normalised financials; 1) As of 31 December 2014; 2) Adjusted for certain non-recurring items; 3) Margin calculated as % of revenues; 4) As of 30 June 2015; 5) Own network may include leased lines; 6) Upgraded for two-way communication; 7) Including Premium TV RGUs 8) Including expected full run-rate cost synergies 9) Based on information provided by PrimaCom management ;10) Including expected full run-rate cost synergies; 11) Based on information provided by pepcom management 3

4 Tele Columbus was listed on 23 January 2015 Listing Initial Public Offering on the Regulated Market (Prime Standard) of the Frankfurt Stock Exchange SDAX Index since 22 June 2015 Shares Ordinary registered shares with no par value ( Namensaktien ) Number of shares 56,691,667 (share capital 56,691,667) Offer structure Primary offering (including greenshoe executed on 30 January 2015): 367 million gross proceeds Secondary offering and preferential allocation for ultimate pre-ipo shareholders Issuance price 10 which was the midpoint of the price range of 8.0 to 12.0 per share Use of primary proceeds Lock-up/Other Selection of largest shareholders (as of 8/2015) Repayment of debt Liquidity for investment in network and other general corporate purposes 12 months for Management Board members + 2 Supervisory Board members 180 days for ultimate indirect pre-ipo shareholders if preferred allocated ended on 23 July 2015 Tele Columbus Management S.a.r.l. with the ultimate indirect shareholders was liquidated end of August 2015 York Capital Capital Research and Management Silver Point Davidson Kempner Blackrock Ameriprise International Holdings Threadneedle Asset Management 4

5 Share price performance since IPO 1 Broker targets Share price EUR 16,0 Volume Broker Date Recommendation Target price ( ) Bankhaus Lampe 14 Aug Hold , BoAML 14 Aug Buy , Berenberg 14 Aug Hold , Citi 16 Sep Buy , Goldman Sachs (restricted) 10 Jun (Buy) (15.30) 11, Hauck & Aufhaeuser 20 Aug Buy ,0 Issue price 2000 J.P. Morgan (restricted) 14 Aug (OW) (16.00) 9,0 23 Jan 03 Feb 12 Feb 23 Feb 04 Mrz 13 Mrz 24 Mrz 02 Apr 15 Apr 24 Apr 06 Mai 15 Mai 27 Mai 05 Jun 16 Jun 25 Jun 06 Jul 15 Jul 24 Jul 04 Aug 13 Aug 24 Aug 02 Sep 0 New Street Research 4 Sep Buy Av. target price ) Bloomberg as of 04 September

6 Tele Columbus net leverage remains at 3.2x 1 in Q Leverage update 6.6x 1 Leverage of 3.2x 1 (2.9x excl. finance leases) as of 30 June 2015 in line with 3.2x 1 leverage as of 31 March 2015 Post primacom transaction (and repayment of the equity bridge financing 2 ), leverage is expected to increase to c.5.0x from 2.9x (excl. finance leases) 3.2x 1 Leverage may be lower depending on the size of the equity rights issue and/or other equity and equity-like measures Net debt Dec-2014 / Norm. EBITDA FY 2014 Net debt Jun-2015 / Norm. EBITDA LTM Jun-2015 Leverage is expected to return to the communicated medium-term range of x within months RCF and capex facility undrawn as of 30 June 2015 Note: 1) Leverage figures include finance leases; 2) The acquisition of primacom will be financed through a combination of cash on balance sheet, a fully underwritten financing including both a senior and junior tranche and a EUR 125 million equity bridge loan. The equity bridge financing and potentially a proportion of the debt financing will be taken out by an equity rights issue and/or other equity and equity-like measures which are planned to be conducted in H

7 The Tele Columbus growth story Company repositioned for growth already evident in recent results with attractive further upside Attractive market opportunity Completion of Tele Columbus transformation Strong results from initial investments Clear strategy to generate growth and returns German cable growth No FTTH and little VDSL competition Norm. EBITDA +6.0% Norm. EBITDA +12.3% Accelerate growth Unique upside potential 1.50x RGU/sub ARPU 4 Robust results in despite several issues and company restructuring Accelerated growth momentum in 2014 Investment plans and continued focus on operational excellence Yesterday 1) CAGR growth rate 2) Year-on-year growth rate 3) As of 30 June ) For Q2 FY2015 ended 30 June

8 Core management team Ronny Verhelst Frank Posnanski (CEO, 2011) Key responsibilities (CFO, 2011) Key responsibilities Selected experiences Group management M&A and Business development Customer management Training & quality management Customer service B2B Customer service B2C Customer operations Telenet (including the 2005 IPO), PWC, Anhyp, Belgacom, Belgian FA 26 years of Cable and TMT experience Stefan Beberweil Selected experiences Reinhard Sauer Accounting & tax Group controlling & treasury Capex and project controlling Purchasing & content Legal, Personnel IT & data security Investor Relations Operational business improvement Digital Identification Solutions, Pulsion Medical, Kabel BW 6 years of Cable and TMT experience (CCO, 2014) Key responsibilities (CTO, 2014) Key responsibilities B2B sales Key account management Housing industry B2C marketing and sales Product management B2C sales channels Marketing Technology Project management IP-Services Network operations Technical service Selected experiences Unitymedia, Kabel BW, Vodafone 12 years of Cable and TMT experience Selected experiences RFC, Bosch Breitbandnetze, Robert Bosch GmbH 24 years of Cable and TMT experience c. 70 years of Cable and TMT Experience 8

9 Supervisory board members Member Selected experiences Frank Donck Chairman Managing Director of 3D NV and Ibervest NV Past experience: Chairman of Telenet (12 years), Director of Zenitel NV and Director of KBC Academics: Master s in Law from University of Ghent, Master s in Finance from Vlerick Business School Robin Bienenstock Member Partner at Gladwyne Partners and Senior Research Analyst at Sanford C Bernstein Past experience: Associate Principal at McKinsey, investment banking at SG Warburg Academics: B.A in politics, philosophy and economics from University of Oxford, M.A in International Relations from University of Toronto Carsten Boeckhorst Member Partner at Pamplona Capital Management Past experience: Equity Analyst at York Capital, Partner at Sequoia Capital, M&A at Merrill Lynch, Loyens & Loeff Academics: MBA from the Kellogg School of Management, Master s in Dutch Law and Business Sciences from the Radboud University Nijmegen, and Bachelor s in Law from Universite Rene Descartes Andre Krause Member Chief Financial Officer at Sunrise Communications AG Past experience: CFO and VP of Strategy & Consulting at O2 Germany, McKinsey & Company, Arthur Andersen Academics: Studied business administration in Bielefeld and Budapest Yves Leterme Member Minister of State and President of IDEA Past experience: Prime Minister of Belgium, Minister of Foreign Affairs, Minister President of the Flemish Government, Vice President of OECD, Group Chairman and National Secretary and Chairman of the CD&V party, Deputy in the Chamber of Representatives Academics: Degrees in Law and Political Science from the University of Ghent Catherine Mühlemann Member Co-owner of Andmann Media Holding GmbH Past experience: Senior Manager at VIVA Media Group and MTV Central, Head of Programming and Programme Acquisition / On-Air Promotion for TV3 and Director of Media for Swiss TV station SF DRS Academics: Media Sciences and Constitutional Law in Berne and Marketing at the Management School St. Gallen 9

10 Tele Columbus has strong proximate relationships with HAs and leading market shares within footprint Product 1 Providers CATV Cable + DTAG competition only DT mainly focused on very large size HA wins Low level of proximity to vast and scattered HA market VOD DE / KDH integration as current strategic priority Particular focus in Saxony and Thuringia Smaller scale and financial resources Unity-KBW merger case still ongoing Internet market share in Tele Columbus footprint1 2 Broadband/ Telephony Competition from DSL only Once the CATV contracts with HAs are signed (concession agreements) there is no competition from other cable operators in those homes 3% (incl. Alice) Other 7% 9% 26% 17% (incl. Arcor) 38% 3 Premium TV No direct competition Tele Columbus offers a wide choice of premium content to its clients Sky offering supports the up-sell of Premium TV packages to Tele Columbus customers Sky pays Tele Columbus a carriage fee based on the network reach and a commission for the sale of Premium TV packages that includes Sky s offering Source: Company information, IFF International/Delphi Research 1) Broadband market share based on survey from market research study conducted by Tele Columbus on 1,003 randomly selected homes within the Tele Columbus network; information as of August

11 Tele Columbus provides a compelling basic CATV and Premium TV offering CATV Premium TV 3 types of packages offered: 1.Standard Description 100 digital TV (free TV) channels including c.35 channels in HD quality and more than 70 digital radio channels Extra HD: 30 channels incl. 10 HD channels Lifestyle HD: 11 channels incl. 6 HD channels 2. International: 8 languages 3. Sky Bulk Contract CATV individual pricing (as part of the bulk contract) Pricing Plus HD: 4.99 (individually marketed option) Single Contract Standard: Extra HD: Lifestyle HD: 6.99 International: TV: CATV HD: TV offering Note: TV services are offered through 3 types of CPEs; HD-Receiver ( 4.99 / month & one time), HD-Receiver + HDD ( 7.99 / month & one time), CI + Modul ( 4.99 / month & one time) 11

12 German cable market growth has been accelerating Cable is taking fixed broadband market share from DSL and cable Pay TV market growth momentum is accelerating (% of German market net adds, % market share) German cable Pay TV¹ subscribers (m) and penetration (%) 44% 46% 47% 46% 45% 45% 25% Pay TV penetration 20% 43% 12% 42% 14% 15% 16% CAGR : +10% 20% 36% 6,3 50% 5,8 70% 5,3 80% 4,7 89% 20% 18% 15% 13% 9% 7% 5% 20% 30% 11% 64% 80% 80% 75% 50% 11% Cable 2009 DSL Cable market share DT market share Cable is the winning technology in fixed Broadband and Pay TV in Germany Source: ANGA, DT company information, Solon Report ) Pay TV includes all services for which users pay a subscription to access the content; 2) DT disclosed market shares based on management estimates 12

13 Tele Columbus has recently launched new fixed Internet & Telephony offers Recent developments Triple-play products 21 July 2014: Introduction of new Wifi router Triple-play 50 HD Triple-play 50 Extra HD Triple-play 50Sky Download speed (Mbit/s) Upload speed (Mbit/s) extra 2.00 extra 2.00 extra 2.00 Private FreeTV HD channels Number of channels (SD/HD) 63/33 63/33 63/33 Pay-TV HD (10 HD- / 20 SDchannels) Sky World + a theme package PVRready extra 4.99 extra 4.99 extra 4.99 Bundle PVRready + HDD extra 7.99 extra 7.99 extra 7.99 Price (after promotion period) 1 September 2014: Introduction of new product portfolio with higher speed 3 November 2014: Introduction of triple-play products April / September 2015: Launch of new Internet offering comprising download speed of up to 400 Mbit/s in the cities of Potsdam and Jena reaching c.60k homes connected 1 September 2015: Introduction of a mobile telephony and data service to complement fixed offering Incl. Wifi Core product of the new portfolio is now based on 50 Mbit/s download speed The 100 Mbit/s and 150 Mbit/s products introduced in September 2014 account for ~10% of gross adds 13

14 with attractive pricing Internet & Telephony bundle pricing 14

15 ... and 400 Mbit/s in the cities of Potsdam and Jena... Footprint Highlights Indicative map of homes connected Potsdam Product In April 2015 we launched our new Internet offering comprising download speed of up to 400 Mbit/s First operator to launch 400 Mbit/s Internet product in the German market which is twice the speed of what is currently offered in selected cities Products is available since April 2015 in the city of Potsdam reaching c.40k homes connected and has been rolled-out to another 20k HC in the city of Jena in September 2015 Pricing: per month Technology Current Wi-Fi cable gateways deployed support speeds of up to 1.3 Gbit/s Backbone connection 10 Gbit/s - TC Homes connected - TC Network DOCSIS downstream capacity 1 Gbit/s per service group (20 channels) FTTB approach deployed The launch of new Internet product underpins the strength and capability of TC s network 1) Dense Wavelength Division Multiplex 15

16 ... complemented by an attractive mobile data and voice service Product specifications Strategic approach Product Set-Up Launched on 1 September 2015 Efficient cooperation with German independent telecommunications provider Drillisch LTE-based mobile double flat for telephony and data German AllNet-flat offering free calls to all German networks Internet flat with 2 Gigabyte data volume included Option to raise data volume with an additional 1GB for 4.99 Download-speed of up to 50 Mbit/s Based on the Telefónica O2 and E-Plus mobile networks Pricing: per month One-time set-up fee: months minimum contract duration Tele Columbus to take on marketing, contract administration, customer service, billing of mobile services (face to the customer) Drillisch responsible for network capacities, product development, 2nd level support, mobile-specific processes Target Increase ARPU Push number of RGUs per subscriber Reinforce customer retention Increase customer satisfaction 1) Dense Wavelength Division Multiplex 16

17 Award winning products dtgv.de dtgv.de 1. PLATZ 1. PLATZ TARIFE ( kbit/s) Kabel-Internetanbieter Internetanbieter ANGEBOT, TARIFE, SERVICE ANGEBOT, TARIFE, SERVICE Test 11/2014 im Test: 4 Anbieter Teilkategorie im Test 11/2014 im Test: 12 Anbieter DSL & Kabel DtGV Deutsche Gesellschaft DtGV Deutsche Gesellschaft für Verbraucherstudien mbh für Verbraucherstudien mbh 17

18 Fixed network Internet providers Testsieger TV- and VoD providers Award winning service Testsieger Der große Hotlinetest 2015: Gesamtbeurteilung 15 DSL & Festnetz Provider Tele Columbus Unabhängige Tests seit 1978 CHIP 12/2014 Der großen Hotlinetest 2015: Gesamtbeurteilung 13 TV & VoD - Provider Tele Columbus Unabhängige Tests seit 1978 CHIP 12/

19 Multi-channel sales approach to drive frequency of customer touch points Tele Columbus shops Tele sales (IB + OB) 17% 38 Tele Columbus shops 18% Online 29% Retail & Promotion 9% Field sales (D2D) Customer service 14% 13% Special inbound and outbound sales team Sales optimized webshop Partnerships with large retail chains Dedicated field sales team Up- and cross-selling activities Current status Current status Current status c.25 agents Commission based One external call Current status c.80 self employed agents Commission based Sales steering inhouse Future plans Own team leads and external sales agents additional to agency Cooperation with B2B key accounts to be intensified Intensify pull channels as sales leads for door-2-door Current status Pure franchise model Current status Google Affiliate Display marketing Future plans Expansion of selfservices Live service- and sales chat Expansion of the behavioral targeting based personalization criteria to increase conversion and customer satisfaction Future plans Improving shop location from site C (commercially far-away place) to site B (walkable) New shop concept center Stable volume Increasing conversion rate and sales/rgu Quality calls and monitoring Future plans Sales score NBA (Next Best Activity) tool Rollout outbound tele sales % c.70 retail partners 50 Saturn/ MediaMarkt Commission based Future plans Intensify MSD partnership Roll out premium partner concept Sale Mobile c.220 agents Outsourced Commission based Future plans Aim to Increase sales from customer services Focus on up-selling and cross-selling Share of IP-Sales 19

20 Internet & Telephony RGUs and blended ARPU continue growth trajectory in Q Homes connected RGU breakdown HCs acquired in Q offset the Nassauische Heimstätte c.41k HCs lost in June end of period 000 end of period CATV Premium TV Q Q Telephony Growth: 1.1% Growth: (1.6)% Internet Q Q Q % % 161 (0.9%) YoY growth Q Q Q Q Q (3.3%) ARPU Internet penetration, p.m. for the quarter Internet RGUs within own network as a % of two-way homes upgraded within own network 4.1% (3.2)% +1.7ppt 3.3% 22,3 21,8 21,7 22,6 23,2 13,9 14,0 14,0 14,1 14,3 9,6 9,7 9,6 9,3 9,3 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 TV Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Internet & Telephony Q2 14 Q3 14 Q4 14 Blended Q ,5% 20,1% 20,5% 20,9% 21,2% Q Q Q2 15 Q Q Q

21 Successful network upgrades continue progress and RGUs/sub reaches 1.5x Two-way upgrade status Development of RGUs/sub and % of bundles Homes two-way upgraded - own network ( 000 end of period), as % of homes connected - own network end of period 48% 51% 57% 55% 40% 33% % 64% ,26x % 57% % c.22k Internet-only customers migrated to bundled product 18.5% 21.2% 14.5% 20.5% 13.7% Q Internet penetration¹ Homes two-way upgraded - own network ,30x % 73% 1,50x 1,40x 1,44x ,34x 2012 Q RGUs/sub % of bundles² As % of homes connected Operational results continue to confirm the success of our strategy 1) Calculated as RGUs on own network as % of two-way upgraded homes connected to own network 2) Based on subscribers segmented by bundles, only Internet and only Telephony 21

22 Q2 revenue and EBITDA driven by Internet & Telephony growth, migrations, reduced signal fees and improving product mix Revenues Normalised EBITDA m m # Normalised total operating performance 58.2 Revenue split by activity % margin 10% (10%) 54,3 51.0% Growth: 9.2% (Q2 15 / Q2 14) Growth: 2.3% 53,1 % 62% (67%) 25,4 27,7 Q Q % (24%) Q TV Int. & Tel. Other Q EBITDA margin uplift of 3.2ppt Revenue growth of 2.3% in the quarter Capex2 OpFCF1 m m Customer Projects % Network architecture 23.6% Other % conversion 50.6% 43.0% 15.7% Growth: (66.2)% Growth: 86.4% % of revenue 23,4 5,4 12,5 2,7 12,8 4,3 3,0 4,9 Q ,6 15,2 Q Capex increased as strategic investment programme continued to be executed Note: Normalised financials; 1) Defined as Normalised EBITDA Capex; 2) Other capex includes IT capex, OWC capex and other capex Q Q OpFCF lower due to investment strategy 22

23 with similar developments leading to a strong H1 performance Revenues Normalised EBITDA m m # Normalised total operating performance Revenue split by activity 107,9 10% (9%) 44.7% margin 48.3% Growth: 10.4% (Q2 15 / Q2 14) Growth: 2.3% 105,5 % 63% (67%) 47,2 52,1 H H % (23%) H TV Int. & Tel. Other H EBITDA margin uplift of 3.5ppt Revenue growth of 2.3% in H1 Capex2 OpFCF1 m m Customer Projects % Network architecture 17.6% Other % conversion 28,7 38,0 9,1 18,5 8,2 H ,2 6,1 27.0% Growth: (51.0)% Growth: 105.2% % of revenue 60.7% 35.3% 14,0 5,5 23,5 H Capex increased as strategic investment programme continued to be executed Note: Normalised financials; 1) Defined as Normalised EBITDA Capex; 2) Other capex includes IT capex, OWC capex and other capex H H OpFCF lower due to investment strategy 23

24 Stable performance in TV while migration strategy continues to boost significant growth in Internet & Telephony TV performance review Revenues ( m) x Internet & Telephony performance review Revenues ( m) Growth: (4.7)% Growth: 19.4% 39,1 37,3 Q Q Q Q Normalised Other income 41.4 x Own work capitalised Contribution margin ( m) x 15,4 12,9 Normalised total operating performance % of revenue x 14.5 Normalised Other income x Own work capitalised Contribution margin ( m) 15.9 Normalised total x operating performance % of revenue Growth: (4.3)% Growth: 18.8% 26,3 25,1 14,6 12,3 67,2% 67,4% 95,1% Q Q Q ,6% Q Note: Normalised financials; TV includes CATV and Premium TV 24

25 Key recent developments and confirmed guidance M&A Acquisition of primacom completed on 31 July 2015 for a total consideration of 711m on a cash and debt free basis Represents a multiple of 11.0x pre-synergies and 8.7x post-synergies1 (based on primacom s adjusted EBITDA 2015E2) Transaction fully financed as of 31 July 2015, with integration process starting end of August Equity rights issue and/or other equity and equity-like measures which are planned to be conducted in H Acquired several smaller cable network operators in Q offsetting the Nassauische Heimstätte c.41k homes lost in June 2015 New product launches and network developments Transitioning customers to higher speed products and from Internet-only to Internet & Telephony contracts led to c.22k net adds in Telephony RGUs (with minimal churn) Roll-out of Internet offering with download speed of up to 400 Mbit/s in Jena (c.20k HCs) accomplished on 3 September 2015 after successful initial launch in Potsdam (c.40k HCs) in April 2015 Mobile telephony and data offering (incl. 4G) launched on 1 September 2015 Two WIFI hotspot pilots in Halle/Saale in June BMB network, Ennepetal, connected via DOCSIS Remote PHY in June Ongoing strengthening of management (New Head of B2B Sales from Kabel Deutschland joined in February 2015; New Head of M&A from Kabel Deutschland joined mid-march 2015; New Head of Product Development from Solon Management Consultants joined in April 2015) Other In response to the primacom acquisition, Standard & Poor s changed the Tele Columbus rating to B+ negative outlook (from stable outlook) and Moody s changed the TC rating to B2 stable outlook (from positive outlook) Guidance for the combined Tele Columbus and primacom entity will be provided later in the year TC standalone revenue guidance to be towards the low-end of the 4-6% range TC standalone capex guidance to be m (down from m) with the additional amount deferred to ) Including expected full run-rate cost synergies; 2) Based on information provided by primacom management 25

26 Strategy 1.7:17:70 replicate European cable success story Tele Columbus standalone Key initiatives Ultimate targets Push migrations and leverage network Leverage existing CATV subscriber base Operational excellence 1 Reinforce and strengthen regional TV leadership 2 Become internet leader in our region 3 Most attractive bundled offers 4 New products: VoD/Wifi/mobile 5 Excellent customer service Strategy 1.7:17: RGUs/subscriber blended monthly ARPU 70 70% network migrated and upgraded1 1) Upgraded for two-way communication 26

27 Tele Columbus has unique growth potential in European cable Broadband penetration1 of European cable peers Subscribers by broadband speed Premium TV3 penetration of European cable peers Broadband subscribers as % of unique cable subs as of 30 June 2015 Subscriber split by broadband speed (% of total) as of 30 June Subscription to Premium TV as % of basic CATV subscribers as of 30 June % 71% 71% 73% 70% 23% 73% 100% 64% 77% 31% 33% Vodafone/ KD 67% 42% Ziggo 21% 33% 36% 18% 30 Mbit/s RGUs/sub5 of European cable peers ARPU6 of European cable peers RGUs per unique subscriber (CATV, Premium TV, Internet, Telephony) as of 30 June 2015 Blended ARPU, /month for the quarter ended 30 June Mbit/s VMED VMED 8 Telenet 7 German Cable operators Com Hem TC TC VMED Ziggo Com Hem Telenet Unitymedia Vodafone/ KD TC 33% 11 TC Vodafone /KD Unitymedia Telenet 22,9 48,8 Ziggo 19,3 44,5 Com Hem 14,3 38,810 VMED 68,5 2,5x VMED Ziggo 2,2x Telenet 1,9x Vodafone/ KD Com Hem Unitymedia TC 1,5x 1,7x 1,8x 2,3x Source: Company information and cable peers reports 1) Tele Columbus Internet RGUs within own L3 network / Homes two-way upgraded within own L3 network; KDH, Com Hem Internet RGUs / Total unique subscribers; UM/KBW, Virgin Media, Ziggo, Telenet Internet RGUs / Customer relationships; 2) Indicative estimate for German cable operators as of Dec 31, 2014; VMED as of Dec 31, 2013; 3) Premium TV defined as additional (paid) services available on top of basic CATV services; 4) Ziggo as of Dec 31, 2014; 5) RGUs do not include mobile subscriptions; 6) TC ARPUs are calculated by dividing total subscription revenues (based on combined financials; including discounts and credits and installation fees) generated from the provision of services during the relevant period by the sum of the monthly subscribers/rgus for the relevant period; 7) Telenet - 100% of base with speeds above 25Mbit/s; 8) Digital TV subscribers/unique subscribers; 9) Enhanced video RGUs/Customer relationships; 10) FX /SEK 9.32; 11) FX GBP/

28 Tele Columbus advanced own network enables majority of future Capex to be purely success-driven Summary comparison of key network statistics Best within selected peers Own upgraded HCs Docsis 3.0 enabled (%) Cable network capacity Max download broadband speeds offered HC per node (average) Future capex dynamics c.96% c.95% 99%¹ 100% 100% c.100% c.50% 862 MHz 630 MHz² 862 MHz 862 MHz 600 MHz 750 MHz 862 MHz (400 Mbit/s in Potsdam/Gera4) 200 Mbit/s 500 Mbit/s 150 Mbit/s 150 Mbit/s 152 Mbit/s 200 Mbit/s c.450 c.1,000 c.580 c.1,000 c.580 c.650 N/A3 Highly driven No need for 150 Mbit/s by successbased projects Capacity investments capacity investments Capacity investments Capacity investments Capacity investments Capacity investments Source: Public filings of the respective companies, Moody s Investors Service, broker reports 1) 99% Docsis 3.0 enabled in comparison to European cable operators definition. 92% of total footprint households have the full capability today 2) c.40% of KDH s network upgraded to 862 MHz 3) c.200 households per node on the c.50% upgraded network 4) Reaching c.60,000 homes connected 28

29 Significant broadband speed advantage versus competition In c.98% of Tele Columbus own upgraded1 footprint xdsl is the only competing infrastructure Tele Columbus has an outright network advantage on c.98% of the L3 upgraded footprint Two-way upgraded homes c.54%2 Competing fixed infrastructure on Tele Columbus Footprint² Broadband speeds (downstream/upstream) Tele Columbus Competition c.16 Mbit/s / c.1 Mbit/s DSL Competing infrastructure additional considerations Broadband speeds shared with TV delivery Technology does not allow meaningful increase in broadband speeds Delivered speed c.6 Mbit/s 150 Mbit/s (400 Mbit/s) / c.5 Mbit/s c.98% c.44%3 VDSL (FTTC) c.0% VDSL2 (vectoring) c.2%4 FTTH up to 50 Mbit/s / c.10 Mbit/s up to 100 Mbit/s / c.40 Mbit/s >150 Mbit/s / >150 Mbit/s Source: Company information; Deutsche Telekom Capital Markets Day presentation 26/27 February 2015; (data as of December 2014) ANGA 1) Networks fully upgraded for two-way communication including last-mile into home outlet 2) Calculated as: 100% minus VDSL national coverage minus FTTH national coverage; assuming customer s choice made purely on speed basis 3) Based on national incumbent s statistics 4) National coverage; excludes HFC; based on c.500k FTTH homes announced by Deutsche Telekom on 18 May 2015 Broadband speeds shared with TV delivery Only c.44% of total German population coverage (planned to grow to 80% by 2018 according to Deutsche Telekom) Broadband speeds shared with TV delivery Discussion with regulator ongoing Limited fiber availability in Germany (c.2% coverage) DT currently focused on VDSL 29

30 Network migration enables us to offer the full range of fixed-line connectivity products Network Level 3 Network Level 4 Level 4 Network Providers FROM Signal Others CATV Uni-directional communication Integrated Level 3 / Level 4 Achieved two-way upgraded own network of 57% as per 30 June 2015 TO Triple play CATV TELEPHONY Own network Leased lines INTERNET Signal PREMIUM TV Partnership with City networks Bi-directional communication Mid term goal of 70% two-way upgraded own network 30

31 Tele Columbus is leapfrogging network technology: opportunity to efficiently move towards FTTB and FTTH networks, when needed Level 3 Level 3 Level 4 (Headend) (Distribution network) (In-house) HFC Hub optional FTTC HA LA MMD Device FN c.450 HC LA FN HE FTTB HA MMD Device MN FN 1:16 c.450 HC c.93% MMD Device LA Splitter % of owned upgraded HCs c.7% optional c.30 HC (FN replaced by optical splitter) Key network statistics 4,384km HFC network Splitter Splitter 1:16 1:32 c.450 HC c.30 HC # of nodes c. 2,058 Fiber Nodes (average c.450 HC/Node)1 c. 2,300 Micro Nodes (c.30 HC/Micro Node)1 FTTH MMD Device ONU c. 200 HCs as pilot programme 1 HC (FN and MN replaced by optical splitter) Focus on investing in most flexible and advanced technology enabling seamless customer experience and minimizing future investment requirements Note: HE: Headend; FN: Fiber Node; MN: Micro Node; LA: Line Amplifier; HA: House Amplifier; MMD: Multimedia Wall Outlet; ONU: Optical Network Unit 1) As of December 2014; Networks upgraded for bi-directional communication (incl. Minorities) 31

32 Network upgrade initiatives underway A Project Empire II B Project Empire III Rationale Migrate homes from 3rd party KDH signal to own Level 3 infrastructure and upgrade Level 4 for IP services Migrate homes from 3rd party UM/KBW signal to own Level 3 infrastructure and upgrade Level 4 for IP services Key objectives Save signal fees and increase penetration of IP services Save signal fees and increase penetration of IP services Scope Migrate: 130k homes Migrate: 80k homes Cum. capex1 44m 30m Annual signal fee savings c. 7.9m2 c. 6.1m2 Payback period in years3 c.3.9 years c.4.5 years Management will also consider the alternative of supplementary small network acquisitions to attain its envisaged network upgrade targets 1) Only network capex (i.e. excluding CPE, etc.) 2) To be achieved in 3 years after the launch 3) Payback calculation on full upgrade cost and capex (SAC, CPE) to increase penetration ratio; includes EBITDA upside 32

33 Migrations drive margin expansion CATV signal fee reduction from 2011 to Comments In m Reduced number of homes through 3rd party signals from 690k to 514k since 2011 CAGR : (8.1)% Impacted by KDH signal fee hike (c.30%) 37 resulting in signal cost savings and a higher degree of control over the network Actual savings higher than recorded considering the avoided effect of c. 30% KDH signal fee hike from Savings of per subscriber / year (L3 signal delivery fees savings when migration has occurred) TC signed commercial agreement with Eutelsat/M7 on reduction of minimum signal fee guarantees by c. 1.5m (0.7% of 2014 revenues) % 15% 14% Households with 3rd party signal ( 000) 690 % of revenues 18% Base for new, improved relationship and new consumer offers Option to increase independence through eventual investments in own transponders (to be decided in next two years) Migration programmes provide for immediate cost savings in signal fees Note: Normalised financials 1) Refers to basic CATV only 33

34 Strong market position in Eastern Germany with 97% of subscribers served through HA contracts Contract structure German cable for CATV Leading positions in core regions Market share In 000; as of 30 June 2015 BerlinBrandenburg 661 Saxony Anhalt 261 Saxony m HC to 3rd party L3 network 1.22m HC to own L3 network Signal delivery contract Level 4 operators 58% 452 c.97% of Tele Columbus contracts 26% % Level 3 operators Concession agreements Thuringia % 461 Cable HH per state Total: Housing Associations 35% Tele Columbus homes connected Strong presence particularly in BerlinBrandenburg, Saxony Anhalt, Saxony and Thuringia Regional market leadership through network cluster Individual contract CATV c.3% Bulk contract CATV c.35% c.65% Unique subscribers Base for up-sell Internet, telephony and Premium TV Source: Company information as of 30 June 2015, Digitalisierungsbericht Media Authorities

35 Well diversified customer base, long-term relationships and high renewal rates provide Tele Columbus with strong visibility Low portion of contracts up for renewal each year with majority of contracts up for renewal successfully renegotiated resulting in low customer churn Well diversified customer base... expected to be even further stabilised going forward % of homes connected by contract size, as of 30 June 2015 ( 000s) Contract size >20,000 Financial constraints and KDH transaction caused exceptionally high HA churn in the past Sunrise 2008: previous management price hike by ~30% Stand-still agreement with Kabel Deutschland 2012/2013 Approx. # of contracts 7 Voluntary disconnections of non-profitable contracts Financial constraints limiting resources for network upgrades 12,2% new financial strength and investment programs to >1,000 help reduce churn and increase new HA contract adds ,8% Additional financial resources post IPO for investments Trusted, closer HA partner with tailored solutions to HAs of all sizes > ,3% Increased penetration levels of Internet & Telephony to further increase switching costs for HAs Limited competition from satellite providers given technical limitations to offer triple-play < ,6% Organic new wins, cooperations and potential M&A to offset churn and increase the number of HA contracts 35

36 Fixed broadband, telephony and TV product roadmap & strategy well under way Product 2015 and beyond Launched New 400 Mbit/s offering Wifi Introduced 400 Mbit/s Pilot Mobile bundle First operator to launch 400 Mbit/s product Pilot project in the city of Potsdam reaching c.40,000 homes connected Mobile telephony and data services launched in September 2015 on the basis of a cooperation with Drillisch Community Wifi paired with campus Wifi to Wifi Cloud services Next generation TV In the pipeline Launched Mobile bundle offering Description span Tele Columbus Wifi network for Tele Columbus fixed broadband customers Cloud services Online storage as up-selling offer for fixed Next generation TV Digital recorder with in-house multimedia broadband customers features like multi-device support or support of other media 36

37 Exciting short term TV product roadmap & strategy Product Next generation TV Digital recorder with in-house Description multimedia features like multi-device support (Tablet, smartphone, 2nd TV) or support of other media (USB, network) Wifi TV VoD Support of linear and non-linear TV Video-on-Demand (VoD) service to content on companion devices like Tablets, smartphones or 2nd TV enhance linear TV offering with non-linear videos and series Common interface across all devices including TV 37

38 Tele Columbus acquired #4 cable player primacom in July 2015 and signed purchase agreement to buy #5 pepcom in 9/2015 Key regions of largest three players Homes connected per player Homes connected 8.3m 7.1m 1.7m c.1.2m c.0.8m c.3.7mm HCs combined Note: KDG homes connected as per Q report, UM customer relationships as per Q report, Tele Columbus homes connected as per Q report, primacom homes connected as per Annual Report 2014, pepcom households as per management information; primacom and pepcom KPI calculation methodology may differ from Tele Columbus KPI calculation methodology 38

39 Leverage post primacom acquisition (pepcom not included) Sources and uses Sources Uses m ,114 First Lien Term Loan B Second Lien Term Loan Equity bridge Cash from Balance Sheet Total Sources m primacom acquisition1 Refinance existing debt Fees and expenses Total Uses 1,114 Capitalisation as of June 30, 2015 Existing2 m Cash Pro-forma2 x EBITDA3 m (79) (39) Revolver ( 50m) - - Capex facility ( 75m) - - First Lien Term Loan B Net First Lien debt 296 Second Lien Term Loan Net total debt 2.9x % Capitalisation x EBITDA4 44.0% 4.4x 52.0% 5.2x x 911 Tele Columbus has deleveraged from 3.3x net total leverage at IPO financing in Jan 15 to 2.9x net total leverage end of June 2015 EV/EBITDA 2015E valuation using primacom EBITDA 2015E of 64.6m based on management information; 2 Excluding non-controlling interest and finance leases; 3 Based on Tele Columbus LTM June 2015E EBITDA of 103.8m; 4 Based on combined EBITDA of 176.6m, which includes Tele Columbus LTM June 2015 EBITDA of 103.8m + primacom run-rate EBITDA of 64m (including DTK synergies, based on primacom management information) + 50% of cost run-rate synergies of c. 8.75m and before any pro-forma adjustments 111.0x 39

40 primacom acquisition closed on 31 July rationale Significant milestone in the consolidation of the German cable market Unique opportunity to further scale-up Tele Columbus operations and strengthen its position as the third largest player in the German cable market with c. 2.8 million combined homes connected1 Significant potential for growth in Internet & Telephony and Premium TV services Combination of two well established Housing Association customer portfolios Attractive opportunity for scale effects across the combined customer and network base Substantial synergy opportunity due to network overlap and similarities of the two businesses Overlap of c.30%2 between Tele Columbus and primacom networks Tele Columbus intends to continue to play an active role in the consolidation of the German cable market and is currently actively pursuing other targets 1) Source: Tele Columbus company information as of March 2015, PrimaCom 2014 annual report; 2) Based on Tele Columbus estimates 40

41 primacom - snapshot Company overview primacom owns and runs a proprietary and high- performance hybrid fibre coax ( HFC ) network providing telecommunications and cable TV services to c. 1.2 million homes connected1 primacom footprint3 >50k HCs <50k HCs SchleswigHolstein Lower Saxony MecklenburgWest Pommerania Hamburg Bremen BerlinBrandenburg primacom is the 4th largest cable operator in Germany and focuses mainly on Eastern German regions with presence in key Western Germany regions (Baden-Wuerttemberg, Hamburg and North Rhine-Westphalia) as well Berlin SaxonyAnhalt North RhineWestfalia Saxony In 2014, primacom generated total revenues of EUR 132 million and adjusted EBITDA of EUR 55 million (41.9% margin)1 During the year, primacom acquired cable network operator Deutsche Telekabel GmbH with c. 270k homes connected3 Hesse Thuringia RhinelandPalatinate Saarland Bavaria BadenWuerttemberg The company currently employs c. 450 people2, with corporate headquarters in Leipzig 1) Source: primacom 2014 results press release; Financials pro-forma for 100% consolidation of DTK in FY2014A; does not include full run-rate DTK synergies (expected to be fully realised in 2015); 2) Source: primacom 2014 results press release; 3) Source: Based on information provided by primacom management (as of December 2014) 41

42 primacom - strongly positioned in the German Housing Association market Housing Associations business model German cable market for Housing Associations Strong and stable long-term relationships characterising % of Housing Association HHs, 2014 the current contract portfolio 5+ years relationships on average NetCologne; 2% DTAG; 2% Pepcom; 6% Easy access to client to offer bundled services Tele Columbus has c. 65% bulk contracts and c.35% individual contracts while primacom has c.70% individual contracts and c.30% bulk contracts ~28% combined Wilhelm.tel; 2% Other; 7% primacom, 9% No competition from other cable players once HA contract secured Proximity as key differentiator Tele Columbus; 13% Company perceived as trusted smaller counterparty Reachable counterparty eye-to-eye negotiation Offering tailored solutions Vodafone/KD¹; 29% Unitymedia¹; 31% Experienced sales force Widespread regional sales force coverage close to HA clients able to take up best market opportunities Source: Tele Columbus company information, Solon; Information provided by primacom management; primacom KPI calculation methodology may differ from Tele Columbus KPI calculation methodology 1) Excl. indirect customers 42

43 primacom - tangible synergy opportunities identified Run rate p.a.1 Key sources Content costs Signal fees COGS 17.5m Purchase and Telephony costs Personnel costs Opex Rent and utilities Marketing costs Procurement costs 2.5m Capex Combined capex investment program and network roll-out Integration costs Integration cost assumed to be 1x cost and capex synergies run-rate (split over first 24 months post closing) Leverage TC online sale experience Revenue synergies Leverage primacom D2D sales experience Market mobile into primacom IP base Source: Tele Columbus estimates; 1) Full run-rate expected to be achieved by

44 primacom network overview Backbone Level 2 network (L2) Level 3 network (L3) Level 4 network (L4) Available services Backbone Analog TV Peering Internet IP backbone 10 GE Central head end HFC Mini head end Amplifier Hubs/ head ends 57.0%1 ( ) 25.8% 0.7% Fiber node HFC network TV only head ends Fiber node SAT-ZF Disconnected Broadb./Tel. TV signals Peering L3 feed-in Digital TV % homes Amplifier SAT-ZF Third party TV signal 2 ( ) 16.5% Source: Information provided by primacom management (as of December 2014); primacom KPI calculation methodology may differ from Tele Columbus KPI calculation methodology 1) IP Ready HC 2) Partly available, depending on contract with L3 operator 44

45 pepcom - transaction rationale Reinforces TC s position as third largest German cable player and the key consolidation platform of the German cable market, on the back of the acquisition of primacom in July 2015 Expansion of geographic footprint with pepcom s established presence in economically attractive cities such as Munich, Nuremberg, Frankfurt am Main and Leipzig Well established pepcom B2B business adds a strategically important pillar and new customer base to the group for upside growth potential going forward Significant potential for growth in Internet & Telephony and Premium TV services Strong housing association relationship portfolio to augment current TC customer base Attractive opportunity for scale effects across the combined businesses of Tele Columbus, primacom and pepcom as well as sharing of best practices Substantial synergy opportunity due to similarities of the two businesses 45

46 pepcom - transaction highlights Transaction structure and consideration Tele Columbus has entered into an agreement to acquire 100% of the shares in pepcom, Germany s 4th largest cable operator from Star Capital 100% cash offer valuing pepcom at an enterprise value of 608m on a cash and debt free basis Enterprise value represents a multiple of 9.5x pre-synergies and 7.9x post-synergies1 based on pepcom s expected normalized EBITDA The equity value payable by TC after deduction of debt like items and the KMS4 minority interest amounts to approximately 505m (pepcom has a controlling stake of 70% in the Bavarian TV and broadband cable company KMS4 together with Vodafone Kabel Deutschland which owns the remaining 30%) Significant synergy opportunity is expected from the combination due to scale effects between the two businesses and sharing of best practices and expertise Annual run-rate cost synergies of 13m and capex synergies of 2m are expected to be fully realised within 24 months of closing5 Significant synergy opportunity Conditions and timing EGM on 14 September 2015: 99.99% approval rate for up to 100% authorized capital (up to 56.7m new shares) The timing of the closing is now dependent on the registration of the capital increase of up to 240m. The closing is expected to occur by the end of 2015, at the latest by 30 April 2016 Combination of cash on balance sheet, additional senior financing under the existing SFA and an equity bridge loan The equity bridge financing and potentially a proportion of the debt financing shall be repaid by an equity rights issue based on the resolution to be adopted by the EGM on 14 September The rights issue to be conducted at the latest in May 2016 Post transaction and repayment of the equity bridge financing, the leverage is expected to stay at approximately 5.0x pro forma the acquisition of primacom in July 2015, but may be lower depending on the size of the equity rights issue and/or other equity and equity-like measures Leverage for the newly formed group Tele Columbus, primacom and pepcom is expected to return to the communicated medium-term range of x within months after closing Financing 1) Including expected full run-rate cost synergies; 2) Based on information provided by pepcom management; 3) Excluding finance leases; 4) Kabelfernsehen München ServiCenter GmbH & Co; 5) Synergy estimates do not include potential upside from combining the three businesses 46

47 pepcom - snapshot Company overview pepcom is the 4th largest cable operator in Germany offering cable TV, high-speed internet and telephony to over 580k unique subscribers out of c.810k homes connected Operations nationwide with a strong presence in the economically attractive cities such as Munich, Nuremberg, Leipzig and Frankfurt am Main Relationships with c.8,200 housing associations which are served Key network statistics and KPIs (Dec 2014) Residential customers c. 810k Homes connected Connected to own L3 network c.64% of HCs Upgraded for 2-way communication on own network c.58% of HCs Basic cable RGUs c.580k / c.72% of HCs under stable long-term contracts In 2014, pepcom generated total revenues of 126m and c.20k / c.4% of basic cable Pay TV RGUs normalized EBITDA of 57m (45% margin) Internet RGUs c.80k / c.15% of IP ready Telephony RGUs c.60k / c.11% of IP ready In 2012 pepcom acquired HL komm, a Leipzig-based provider of telecommunication services for business customers The company has a controlling stake of 70% in the Bavarian TV Blended ARPU: and broadband cable company KMS1 together with Vodafone Kabel Deutschland which owns the remaining 30% Business customers The company currently employs c. 370 people, with corporate headquarters in Unterfoehring near Munich 1,600+ business customers Customers include SMEs, large corporates, carriers and resellers Source: pepcom management information as of December 2014; 1) Kabelfernsehen München ServiCenter GmbH & Co; 2) Blended ARPU per month based on annual revenues divided by average of beginning of period and end of period cable subscribers divided by 12 months 47

48 pepcom - reinforcing Tele Columbus position as the third largest player in the German cable market Regional density1 and unique subscribers Homes connected 8.3m 7.1m c.3.7m Note: Kabel Deutschland homes connected as per Q report, UM customer relationships as per Q report, Tele Columbus homes connected as per Q report, primacom homes connected as per Annual Report 2014, pepcom homes connected as per management information Side-by-side financials 334k Total unique subscribers: c.580k Homes connected: c.810k 63k Bavaria Hesse 85k 43k 33k Mecklenburg- Brandenburg Pomerania 23k Saxony Other² Source: pepcom management information as of December 2014; 1) Regional density based on cable network; 2) Other includes North Rhine Westphalia, Baden-Wuerttemberg, Rhineland Palatinate, Schleswig-Holstein, Berlin, Saxony Anhalt, Lower Saxony, Thuringia m, 2014A Tele Columbus primacom1 pepcom2 Revenues Normalised / Adjusted EBITDA % 42% 45% % margin 1) primacom 2014 results press release (financials pro-forma for 100% consolidation of DTK in FY2014A, does not include full runrate DTK synergies); 2) pepcom management information as of December

49 pepcom - tangible synergy opportunities identified Run rate p.a.1 Key sources Signal fees COGS Internet & Telephony cost 13m Personnel costs External services / suppliers Opex Office premises Administration & other Capex Integration costs 2m Procurement costs Combined capex investment program Integration cost assumed to be 1x cost and capex synergies run-rate (split over first 24 months post closing) Leverage TC online sale experience Market mobile into pepcom IP base Revenue synergies Stimulate DTV Basic HD sales Carriage revenues B2B opportunity Source: Tele Columbus estimates; 1) Full run-rate expected to be achieved within 24 months of closing 49

50 Overview of combined key network statistics side-by-side1 Homes connected c.1.2m2 c.1.7m Connected to own L3 network c.73% of HCs Upgraded for 2-way communication on own network c.57% of HCs 213k c.80k c.83% of HCs c.57% of HCs 202k c.3.7m c.2.7m c.74% of HCs c.2.1m c.57% of HCs c.420k Internet RGUs c.130k c.58% of HCs c.64% of HCs c.0.8m 0.92 c.19% of IP ready c.60k c.360k Telephony RGUs 0.87 c.120k c.17% of IP ready Significant upside from further Level 3 migrations and upselling of Internet, Telephony, Premium TV and - recently launched - mobile services 1) Source: Tele Columbus company information as of June 2015, primacom unless otherwise stated based on information provided by primacom management (as of December 2014); pepcom management information as of December 2014; 2) Source: primacom 2014 annual report 50

51 Summary of the organic growth plan TC standalone (w/o primacom and pepcom) Replicate European cable success story 1.7 Grow RGUs/subscriber to 1.7 (from 1.50 in Q2 FY2015) 17 Increase blended monthly ARPU to 17 (from 14.3 in Q2 FY2015) 70 Migrate and upgrade for 2-way 70% of the network (from 57% in Q2 FY2015)1 1) Upgraded for two-way communication 1 Simple German cable story 2 It has been done before 3 It s about execution 51

52 Appendix

53 Financial calendar and Investor Relations contact Key dates 12 November 2015 Q3/9M FY2015 results announcement Elmar Baur, Director Investor Relations & Corporate Communications +49 (30)