Kingston Communications Interim Results 200506 For the period ending 30 September 2005

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Kingston CommunicationsInterim Results
2005/06For the period ending 30 September
2005
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IntroductionMichael AbrahamsChairman
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Financial PerformancePaul SimpsonChief
Financial Officer
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Business Structure
Affiniti Business Services Partner
Services Regions Customer Service Operations
Kingston Communications Consumer
Services Business Services Internet Services
Information Services Publishing Services Contact
Centres
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Financial Highlights
Note Results are continuing operations before
exceptional items
Adjusted EPS excludes
amortisation of intangible assets arising on
acquisitions and taxation Capex
represents purchase of property, plant and
equipment
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Group Activities Revenue and EBITDA
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Affiniti
Note Capex represents purchase of property,
plant and equipment
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Affiniti EBITDA and Capital Expenditure
m
Note Capex represents purchase of property,
plant and equipment
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KC
Note Capex represents purchase of property,
plant and equipment
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Information Services
Note Capex represents purchase of property,
plant and equipment
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Group Reported Earnings
Note Results are continuing operations before
exceptional items
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EPS and DPS

• Adjusted EPS of 1.49 pence (2004 2.35 pence)
• Excludes discontinued operations, exceptional
  items, amortisation of intangible fixed assets
  arising on acquisitions and taxation
• Proposed dividend of 0.39 pence per share

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Capital Expenditure (Cash Investment)
Note Capex represents purchase of property,
plant and equipment
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Cash Flow
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Financial Outlook

• Affiniti
• Stronger sales activity
• Order book conversion
• KC
• Broadband
• Revenue from expansion area
• Inclusive call tariffs

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Business ReviewMalcolm FallenChief
Executive
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Overview
Q1 Creation of Affiniti Reposition KC Information
Services investment
Q2 Increased activity levels Building recurring
revenues Wider and deeper proposition
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Continued Executionof Strategy

• Meeting customers needs in key vertical markets
• Reducing dependency on basic voice services
• Increasing level of direct recurring revenues
• Sustainable profitable growth
• Delivering returns to shareholders

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Market Environment
Changing technology
COMMUNICATION SERVICES MARKET ENVIRONMENT
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Market Environment
Convergence of telecoms and IT
COMMUNICATION SERVICES MARKET ENVIRONMENT
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Market Environment
COMMUNICATION SERVICES MARKET ENVIRONMENT
Declining traditional voice services
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Market Environment
Convergence of telecoms and IT
Changing technology
COMMUNICATION SERVICES MARKET ENVIRONMENT
MA activity
Declining traditional voice services
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How does Affiniti help its customers?
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Affiniti Case Study

• Toyota
• New customer
• Managed resilient IP VPN
• Pilot followed by 3 year roll out
• Selected for service support, design innovation
  and overall approach
• Benefit greater functionality, increased
  resilience and reduced costs
• Toyota now Affinitis largest multi-site IP VPN
  customer

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Affiniti Case Study

• PA Group
• Existing customer
• Design and implementation of IP communications
  network and ongoing support
• Selection based on ability to deliver and manage
  solution and extensive product knowledge
• Benefit increased capacity, scalability with
  reduced cost and complexity

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KC
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KC

• Launched in August
• Inclusive call packages for residential
  customers
• Changing consumer behaviour

KC Talk
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KC

• Launched in August
• Inclusive call packages for residential
  customers
• Changing consumer behaviour

KC Talk

• Reduced dependency on traditional revenue
• Broadband customer base up 88 YoY
• New products and services

Broadband growth
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KC

• Launched in August
• Inclusive call packages for residential
  customers
• Changing consumer behaviour

KC Talk

• Reduced dependency on traditional revenue
• Broadband customer base up 88 YoY
• New products and services

Broadband growth

• New network infrastructure
• Targeting business customers
• Early contract wins

Lincolnshire expansion
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KC Case Study

• Humberside Police
• Existing KC customer in East Yorkshire
• Extension of network connectivity into North
  Lincolnshire, plus disaster recovery
• First customer to sign up to service in expansion
  area
• Benefit reliability, security and resilience at
  a competitive cost

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Information Services

• Publishing Services
• Effect of termination of BT contract
• Strong core business
• Online sales momentum
• Contact Centres
• Profitable
• Investment in DQ platform
• Best Wholesale Service Provider

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Outlook

• Market environment changing
• Confidence in our strategy
• Continued transformation and integration
• In line with our expectations

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