Investor Presentation
November 2014
GTT At-a-Glance
GTT operates a global Tier 1 IP network with one of the
most interconnected Ethernet service platforms around the world
We provide highly reliable, scalable and secure cloud networking
services
Our clients trust us to deliver solutions with simplicity, speed and agility
that are unmatched by other network providers
Significant
Addressable
Market
Substantial
Growth
Opportunity
Strong
Competitive
Position
Compelling
Business
Model
Experienced
Management
Team
Investment Highlights
2
Platform Positioned for Growth
4,000+
Enterprise, carrier and
government clients
200+
Points of Presence (PoPs)
100+
Countries serviced
4th
Ranked global Internet
backbone (1)
800+
Global partners for network
extensions
(1) Source: Renesys Independent research firm.
Growth Strategy
•
Extend ubiquitous network connectivity
worldwide
•
Expand cloud networking service
portfolio to multinational clients
•
Deliver outstanding client experience
with simplicity, speed and agility
3
Our Services
EtherCloud Services
One of the Most Interconnected Cloud
Networking Platforms Around the World
Internet Services
Top 5 Global Internet Backbone
Top Global Internet Providers (1)
1. Level 3
2. NTT
3. Telia Sonera
4.
5. Cogent
 Customized, private Wide Area Networks (WAN)
 EPL, EVPL, VPLS, MPLS, IP VPN
 Managed services: routers, firewalls, security
6. Tata, 7. Sprint, 8. Verizon, 9. Telecom Italia
Sparkle, 10. PCCW, 11. China Telecom, 12. XO
 Direct connections to world’s leading cloud
services and applications
 100% native dual-stack (IPv4/IPv6) network
 Multinational enterprises, carriers and
governments
 Carriers, CDNs, hosting providers and enterprises
(1) Source: Renesys Independent research firm.
 Multi-homed, BGP communities
4
Cloud Networking
Public
Utilities
Headquarters
Office
SaaS
Cloud
Computing
Services
PaaS
IaaS
Data Center
Colocation
Public Internet
Branch
Offices
Private Wide
Area Network
Cloud Network
CIOs demand more bandwidth, more scalability and more security
5
Case Study
Challenge
 40 global offices
 Software developers spread
geographically
 Inconsistent performance from
public Internet with VPN
 Need robust, private network for
real-time collaboration
GTT Solution
 Global EtherCloud WAN
 MPLS IP VPN connecting all
40 offices
 High bandwidth Direct Internet
Access (DIA)
Simplicity
 Simple design: any-to-any
connectivity
 Simple pricing: one cost
per location with full port
capacity
 End-to-end management
across all locations
Speed
 Decreased file transfer
time of over 5x
 Implemented project
ahead of schedule
 Expanding existing and
new sites with fast routes
and timely delivery
Agility
 Expanded design to
include managed router
services at all locations
 Negotiated single MSA
using client template
 Empowered business unit
account team
6
Significant Market Opportunity
($ in billions)
Ethernet and MPLS IP VPN Services Market (1)
$81.7
Dedicated Internet Access Services Market (2)
$86.1
$75.4
$68.7
$62.1
$55.8
2012
$42.5
2013
2014
2015
2016
2017
2012
(1) Infonetics, Ethernet and MPLS IP VPN Services Forecast, 2013.
(2) Insight Research, Worldwide Dedicated Internet Access Market Forecast, 2014.
$47.2
2013
$51.0
2014
$54.2
2015
$58.3
2016
$61.3
2017
7
Competitive Landscape
Unique Value Proposition
Multinational
 Simplicity, speed, agility
 Extensive network reach and
capacity
 Guaranteed performance
 Superior client service
CapEx
Intensive
CapEx
Lite
 65 direct sales representatives
 Focused on enterprise, carrier
and government in worldwide
geographic offices
Regional / Local
Highly fragmented landscape with a wide variety of business models
8
Accelerate Growth Through M&A
Selected Acquisition History

2009
Broadened global customer
base to over 1,200 clients
Expanded portfolio of data
services – Global Ethernet /
Peering, Cloud Networking
and Network Infrastructureas-a-Service
2010
2011
 Extend ubiquitous network
connectivity worldwide focusing
on network assets in new
geographies
April 2013
June 2011

M&A Growth Strategy


Top-five global IP Transit
service provider
Leading IPv6 network with
over 120 PoPs in 24 countries
2012
 Expand cloud networking service
portfolio with additional service
offerings
 Grow salesforce and multinational
client base
2013
2014
Proven Approach
 Disciplined – focused on postsynergy EBITDA
April 2012
December 2009


Portfolio of IP transit and
Ethernet services
Added 60 PoPs across North
America, Asia and Europe


Expanded IP transit, data
transportation and
managed networking
services portfolio
Boosted global Ethernet
coverage and scale
October 2014


Ethernet and MPLS widearea-network solutions,
Internet services and
managed services
Added more than 2,000
clients
 Model based on specifically
identified cost savings to be
realized within 1-2 quarters
 Fully integrate organization,
brand, processes / systems and
networks
9
Financial Snapshot
($ in millions)
Revenue
Adjusted EBITDA (1) & Unlevered FCF (2)
Annual
Annual
$157.4
$81.1
$64.2
$91.2
$24.3
$107.9
$6.7
$4.2
$3.8
2009
2010
2011
2012
2013
2009
$9.1
$8.6
$6.5
2010
2011
Adjusted EBITDA
Quarterly
Revenue, Gross Profit & Gross Margin(3)
$46.1
$45.1
36.2%
34.5%
$15.6
3Q13
$16.7
4Q13
Revenue
$47.5
37.0%
$17.6
1Q14
Gross Profit
$20.3
$13.5
$48.1
$49.2
38.7%
39.2%
$18.6
2Q14
$11.7
2012
2013
Unlevered FCF
Adjusted EBITDA (1) & Unlevered FCF (2)
$7.6
$8.0
$8.4
$6.2
$6.3
$6.7
3Q13
4Q13
1Q14
$8.6
$7.6
$8.9
$8.5
$19.3
3Q14
Gross Margin
(1) Adjusted EBITDA excludes one-time and non-cash charges
(2) Unlevered Free Cash Flow defined as Adjusted EBITDA less capital expenditures
(3) Gross Profit defined as Revenue less Cost of Telecommunications Services
Adj EBITDA
2Q14
Unlevered FCF
3Q14
10
Balance Sheet Highlights
(in millions)
May 25, 2014: Secondary Offering
As of September 30, 2014
Cash
$ 41.9
Current assets



69.8
August 6, 2014: Debt Refinancing

Total assets
Current liabilities
Total debt
Total liabilities
Stockholders’ equity
209.0
49.3
125.0
171.1
37.9
$25.1MM net proceeds
3.45MM shares issued
Increased trading volume, industry analyst
coverage and institutional ownership


$170MM, 5-year senior debt facility
 $110MM term loan
 $ 15MM delayed draw term loan
 $ 15MM revolving line-of-credit
 $ 30MM accordion feature
Replaced all outstanding debt and eliminated all
outstanding warrants
Reduced cost of debt by 350bps from
approximately 8.0% to 4.5% (LIBOR+425bps)
October 1, 2014: UNSi Acquisition

$40MM purchase price
 $2.9MM paid in stock (231,539 shares valued
at $12.45)
 $4.0MM hold back for undisclosed liabilities
(1) As of November 12, 2014, GTT had 29.1 million common shares outstanding and 1.4 million employee stock options outstanding.
11
Experienced Team
Management
Board of Directors
Rick Calder | President & CEO
Brian Thompson
 Joined GTT in May 2007
 Previous senior roles with InPhonic, Broadwing, Winstar, Tellabs, GO Communications and MCI
 Over 25 years telecom experience
 Executive Chairman of GTT since 2005
 Previous leadership roles at Comsat, Global TeleSystems, LCI, Qwest and MCI
 Board positions at Axcelis, Pendrell, Penske and
Sonus Networks
Chris McKee | General Counsel & EVP, Corporate Development
 Joined GTT in April 2008
 Previous experience includes StarVox, Covad Communications, XO Communications and Net2000
 Over 20 years broad legal experience
Michael Bauer | Chief Financial Officer
 Joined GTT in January 2008
 Previous experience includes MeriStar Hospitality, Arthur Andersen, Sprint and OneMain.com
 Over 18 years finance and accounting experience, Certified Public Accountant
Layne Levine | EVP, Americas Business Unit
Rick Calder
 President & CEO of GTT Communications
Morgan O’Brien
 Co-founder of Nextel Communications
 Board of trustees of The Field School and the Law Board of Northwestern University
School of Law
Howard Janzen
 Joined GTT in November 2012
 Previous experience includes Alpheus, Deltacom/Earthlink, Airband, Level 3 and Broadwing
 Over 20 years experience leading sales teams
 President & CEO of Cool Planet
 Former CEO of One Communications
 Board of directors of Sonus Networks, Vocera Communications and Anyware Mobile
Solutions
Andy Johnson| Managing Director, EMEA/APAC Business Unit
Rhodric Hackman
 Joined GTT in June 2011
 Previous experience includes PacketExchange, PSINet Europe, Level 3, 3Com and Motorola
 Over 18 years telecom experience
 Co-founded Mercator Capital
 Served as Co-Head of Communications & Media Investment Banking at PWC
Corey Eng| Chief Marketing Officer
S. Joseph Bruno
 Joined GTT in April 2013
 Previous experience includes Comcast, InPhonic, Nextel, Broadwing, Winstar, GO Communications and MCI
 Over 20 years marketing and product management experience in telecom and technology
 President & CEO of Building Hope
 Board of DC Prep Charter School, the Center City Public Charter Schools,
Georgetown University Hospital and Intergroup Service
 Certified Public Accountant and former partner of KPMG Peat Marwick
Bob Burris| SVP, Network Engineering and Operations
Theodore B. Smith, III
 Joined GTT in June 2014
 Previous experience includes Harris Caprock Communications, Arbinet, and Cable and Wireless
 Over 30 years of telecom-related network operational and engineering experience
 Chairman and CEO of John Hassall, a privately held manufacturer of custom formed
and machined metal parts
 Various positions in manufacturing and sales for John Hassall, including President
12
Investment Highlights
Significant
Addressable
Market
 Large growing market for EtherCloud and Internet Services
 Opportunity to extend into adjacent, growing markets of VoIP / UC and cloud
computing
Compelling
Business
Model
 Monthly recurring revenue model with expanding gross margins and EBITDA margins
 Low CapEx model delivering high Unlevered Free Cash Flow(1)
Strong
Competitive
Position
 Top five global Internet backbone(2) and one of the most interconnected cloud
networking platforms around the world
 Addressing the high-demand, growing needs of multinational enterprises and carriers
underserved by global incumbents, not addressed by regional carriers
Substantial
Growth
Opportunity
 Rapid historical CAGR: 25% Revenue and 55% Adjusted EBITDA(3) from 2009-2013
 Strong track record of successful acquisitions
 Expanding organic growth engine with growing, global salesforce
Experienced
Management
Team
 Deep expertise managing high-growth communications businesses
 Proven ability to identify, acquire and accretively integrate acquisitions
 Deliver clients simplicity, speed and agility
(1) Unlevered Free Cash Flow defined as Adjusted EBITDA less capital expenditures
(2) Source: Renesys Independent research firm
(3) Adjusted EBITDA excludes one-time and non-cash charges
13
www.gtt.net
GAAP to Non-GAAP Reconciliation
Adjusted EBITDA & Unlevered Free Cash Flow
Adjusted EBITDA represents operating income before depreciation and amortization on a non-GAAP (accounting principles generally accepted in the United
States of America) combined basis for the periods presented, and adjusted to exclude certain one-time expenses including costs associated with employee
terminations and other non-recurring items and non-cash compensation. GTT presents Adjusted EBITDA as a supplemental measure of GTT’s performance. GTT
also presents Adjusted EBITDA because GTT believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of
companies in its industry and in measuring the ability of issuers to meet debt service obligations. In evaluating Adjusted EBITDA, you should be aware that in the
future GTT may incur expenses similar to the adjustments in this presentation. GTT’s presentation of Adjusted EBITDA should not be construed as an inference that
GTT’s future results will be unaffected by unusual or non-recurring items. Adjusted EBITDA is not a measurement of GTT’s financial performance under GAAP and
should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP.
In addition to Adjusted EBITDA, GTT management uses Unlevered Free Cash Flow, which measures the ability of Adjusted EBITDA to cover capital expenditures.
Adjusted EBITDA is a performance, rather than a cash flow measure. Correlating our capital expenditures to our Adjusted EBITDA does not imply that we will be
able to fund such capital expenditures solely with cash from operations.
The following is a reconciliation of Gross Profit, Adjusted EBITDA , and Unlevered Free Cash Flow:
($ in m illions)
Year Ended Decem ber 31,
Three Months Ended
September 30, December 31,
2010
2009
Rev enue
$
Cost of telecommunications serv ices
Gross profit
$
45.9
$
Gross m argin
Net income (loss)
64.2
18.4
$
0.5
$
$
24.1
$
1.4
$
91.2
$
27.0
$
0.3
2013
107.9
$
76.0
$
29.6%
0.1
(0.0)
2012
64.2
29.7%
0.0
Other expenses, net
81.1
57.0
28.6%
Prov ision for income taxes
2011
31.9
$
157.4
$
54.6
(20.8)
0.7
(2.0)
11.7
0.4
0.2
1.1
-
-
2013
45.1
$
29.5
$
34.7%
(1.6) $
-
$
102.8
29.5%
0.6
2013
15.6
$
16.7
(4.3) $
June 30,
2014
2014
47.5
$
29.9
$
36.2%
0.4
17.6
(2.4)
2014
48.1
$
18.6
1.0
0.7
(0.5)
(0.6)
3.4
5.5
8.9
-
-
49.2
$
19.3
29.9
38.7%
(9.7) $
-
$
29.5
37.0%
(3.7) $
September 30,
39.2%
$
(6.6)
0.6
0.2
Loss on debt extinguishment
-
Interest expense, net
0.8
1.4
2.5
4.7
8.4
2.4
2.8
2.4
2.6
1.8
Interest and other, net
0.8
1.8
2.7
5.7
20.8
5.9
8.3
11.3
2.0
5.1
Depreciation and amortization
EBITDA
1.7
$
3.0
2.8
$
6.0
3.9
$
7.4
0.7
$
29.4
34.5%
$
46.1
March 31,
7.3
$
12.2
17.2
$
15.2
5.2
$
7.2
5.3
$
7.4
-
5.6
$
7.9
3.1
5.5
$
7.9
Restructuring costs, employee termination, and other items
0.6
-
1.0
0.7
7.7
-
-
-
-
Non-cash compensation
0.6
0.6
0.7
0.6
1.5
0.4
0.6
0.5
0.7
Adjusted EBITDA
$
Capital expenditures
Unlev ered free cash flow
4.2
$
(0.4)
$
3.8
6.7
$
(0.2)
$
6.5
9.1
$
13.5
$
11.7
(0.5)
$
8.6
$
24.3
$
20.3
(1.8)
$
(4.1)
7.6
$
(1.3)
$
6.2
8.0
$
(1.7)
$
6.3
8.4
$
(1.7)
$
6.7
8.6
5.9
$
3.3
0.7
$
(0.9)
$
7.6
4.9
8.9
(0.4)
$
8.5
15