Cogent Communications (CCOI) 47th Annual Raymond James Institutional Investor Conference summary

Business overview and recent developments

• Provides global Internet connectivity in 1,900 data centers across 57 countries, carrying about 25% of global Internet traffic and serving 1.1 billion sq ft of North American office space.

• Recently launched wavelength/optical transport services between 1,096 data centers in North America, offering up to 400 GB speeds with rapid provisioning.

• Returned to organic top-line growth after a period of negative growth following the Sprint Global Markets Group acquisition; expects continued organic growth despite declining Sprint revenues.

Financial performance and margin expansion

• Achieved 800 basis points of EBITDA margin expansion last year, driven by cost-cutting and higher-margin on-net services.

• On-net revenue mix improved from 47% post-Sprint acquisition to 61% currently, supporting margin growth.

• Projects 6%-8% top-line growth and at least 200 basis points of annual margin expansion going forward.

Capital structure and deleveraging strategy

• Reduced dividend by 98% to focus on deleveraging after leverage rose to 6.6x due to the Sprint deal and payment structure.

• Plans to refinance $750 million unsecured debt with secured debt by restructuring IRU assets and moving $569 million of senior secured debt off the main borrowing group.

• New structure will allow for increased secured debt capacity and lower cost of capital, targeting a net leverage ratio of 4x.