The IPO : a game changer and a once in a life-time opportunity / visibility for a company. Happy to share my personal experience on a double listed IPO for a high growth tech company.

1. The IPO: a game changer
ESSEC – MSc Finance Track
June 1st 2017

2. 209/06/17
The IPO
• >20 years experience in strategy / business /finance for listed and private companies
• Broad expertise in Finance, Financing/IPO, Investor Relations, Strategy and
Communication
• A taste for entrepreneur & international environments
• Strong track record in building durable valuation for high -growth Tech/Fintech
companies: contributed to value x10 for Completel and Ingenico Group in 5/6 years
• Growth financing for >€2bn (IPO, bank debt, high yields, convertible bonds )
and complex financial restructuring
CATHERINE BLANCHET
Growth enabler – Value bloomer – Board member
Helping companies grow and build durable value
T h e I P O : a g a m e c h a n g e r

3. 309/06/17
The IPO: a game changer
1. A game changer
2. Driving a strategic project
3. The IPO isn’t the end of the game
4. Completel Europe NV / Life of a listed company isn’t a long quiet river
T h e I P O : a g a m e c h a n g e r

4. 01
The IPO: a game changer

5. 509/06/17
The IPO: a game changer
A GREAT OPPORTUNITY:
• TO FINANCE GROWTH / TO OFFER LIQUIDITY
• TO MARKET A SOLID AND APPEALING STORY
• TO INCREASE BRAND VISIBILITY AND NOTORIETY
• TO ATTRACT NEW TALENTS
T h e I P O : a g a m e c h a n g e r

6. 609/06/17
The IPO: getting the right company valuation
RATIONALE / COMPANY SOLID AND APPEALING EQUITY STORY
• A M B I T I O N / B U S I N E S S P E R S P E C T I V E S
• G R E A T / E X C E P T I O N A L C O M P A N Y F I N A N C I A L & O P E R A T I O N A L P E R F O R M A N C E
X EXPECTATIONS OF EXISTING SHAREHOLDERS
X PEER VALUATION BENCHMARK
X THE RIGHT TIMING (MARKET CONDITIONS / CYCLE)
X THE RIGHT MARKET PLACE (NASDAQ / NYSE / LSE / HONG KONG)
COMPANY VALUATION =
T h e I P O : a g a m e c h a n g e r

7. 709/06/17
An IPO in a nutshell
IT’S ALL ABOUT BEING READY
AT THE RIGHT TIME,
ON THE RIGHT MARKETPLACE,
WITH THE RIGHT STORY / RATIONALE,
AND WITH THE RIGHT TEAM / MANAGING BANKERS
… WHILE CONTINUING TO MANAGE BUSINESS
T h e I P O : a g a m e c h a n g e r

8. 809/06/17
An IPO: selecting the right partners is key to connect to a new world
FINANCIAL
ADVISOR
LAWYERS
AUDITORS
TAX ADVISORS
ANALYSTS
INVESTORS
COMPANY
BANKERS /
GLO-COODINATORS,
JOINT BOOK RUNNERS,
CO-LEADERS
T h e I P O : a g a m e c h a n g e r

9. 909/06/17
An IPO: an exciting
AN ACHIEVEMENT / PRIDE FOR ALL EMPLOYEES
AN INTENSE AND A ONCE IN A LIFE -TIME
OPPORTUNITY FOR THE COMPANY TO BE VISIBLE
TO ALL PARTIES (media, investors, customers,
partners, employees,…)
BEYOND SUPPORT OF THE RIGHT TEAM AND
BANKERS, MANAGEMENT STILL NEEDS TO BE
REASSURED TO GET INTO THIS NEW WORLD
and stressful project
T h e I P O : a g a m e c h a n g e r

10. 02
The IPO: driving a strategic project

11. 1109/06/17
The IPO: driving a strategic project
4 MAIN STREAMS
• BUILDING A STRONG & APPEALING EQUITY STORY
• PROVIDING ALL LEGAL DOCUMENTATION
• GETTING READY TO TALK TO INVESTORS
• MARKETING THE EQUITY STORY
A CONSTRAINED PROCESS
• SPECIFIC TIMING FOR EVERY STEP
• ALL DOCUMENTS REVIEWED BY MARKET AUTHORITIES
T h e I P O : a g a m e c h a n g e r

12. 1209/06/17
BUILDING A SOLID & APPEALING EQUITY STORY
A CLEAR, SIMPLE AND TRANSPARENT STORY
HELP INVESTORS TO UNDERSTAND HOW THE COMPANY CREATES VALUE
• Strategy / Value proposition / Positioning / Differenciation vs. other players
• Trends
• Business model
• Risks and opportunities
• KPIs & Figures
T h e I P O : a g a m e c h a n g e r

13. 1309/06/17
PROVIDING ALL DETAILED AND LEGAL COMPANY INFORMATION
T h e I P O : a g a m e c h a n g e r
THE PROSPECTUS: A LEGAL STANDARD DOCUMENT DEFINED BY
MARKET AUTHORITIES / NO ROOM FOR CREATIVITY
ALL YOU NEED TO KNOW ABOUT THE COMPANY IN~250 PAGES
• Business description
• Strategy
• Market
• Management
• Business model
• Forward looking statements
• Risks
• Management Discussion & Analysys (financials)
• Shareholder structure
• Governance

14. 1409/06/17
GETTING READY TO TALK TO INVESTORS
IPO = THE FIRST CONTACT BETWEEN COMPANY AND INVESTORS = FIRST IMAGE
MANAGEMENT CREDIBILITY IS KEY
KEEP IT SIMPLE / TRANSPARENT
NEW DISCPLINE: SAME LEVEL INFORMATION TO ALL
ANTICIPATING ALL (TRICKY) QUESTIONS
IT’S NOT ONLY ABOUT ANSWERING THE QUESTIONS BUT DELIVERING KEY MESSAGES
MANAGEMENT COACHING & TRAINING
T h e I P O : a g a m e c h a n g e r

15. 1509/06/17
MARKETING THE STORY
ANALYSTS
BRIEFING
INVESTOR
PILOT
FISHING
FINAL
ROADSHOW
Be on investors’ radar
screen
Get first feedback
Test investor appetite
Define a price range
Educate analysts,
the most
sophisticated
audience, on the
equity story.
Help them create
their financial
model to give a
market price and a
fair value
Meet with investors in
targeted regions
Book-building
Define final price and
allocation before
listing
1 2 3
T h e I P O : a g a m e c h a n g e r

16. 03
The IPO isn’t the end of the game

17. 1709/06/17
THE IPO IS NOT THE END OF THE GAME
THE BEGINNING OF A NEW LIFE:THE END OF A PROCESS
IPO
BECOMING A LISTED COMPANY
T h e I P O : a g a m e c h a n g e r

18. 1809/06/17
WHAT DOES IT MEAN TO BECOME A LISTED COMPANY?
ACCEPTING A FEW RULES / PRINCIPLES
• THE SAME LEVEL OF INFORMATION FOR ALL
• THE FINANCIAL MARKET IS ALWAYS RIGHT
• INVESTORS DO NOT LIKE SURPRISES
• IT TAKES A LONG TIME TO GAIN MARKET CONFIDENCE AND JUST A FEW MINUTES TO
LOOSE IT
T h e I P O : a g a m e c h a n g e r

19. 1909/06/17
WHAT DOES IT MEAN TO BECOME A LISTED COMPANY?
IT’S ALL ABOUT:
• MAINTAINING STRONG DISCIPLINE (INTERNALLY / EXTERNALLY)
• PROVIDING VISIBILITY ON STRATEGY EXECUTION (innovation, customer contracts,
partnerships,…)
• MANAGING EXPECTATIONS
• KEEPING INFORMED OF THE SECTOR / COMPETITOR NEWSFLOW
• KEEPING CLOSE TO THE FINANCIAL MARKET / FEEDBACK IS KEY
• CONTINOUSLY MARKETING THE STORY (Roadshows, Investor Day, Missionary IR…)
T h e I P O : a g a m e c h a n g e r

20. 2009/06/17
HOW TO SUPPORT / DEVELOP THE RIGHT VALUATION ?
GROWTH IS KEY,
WHATEVER THE TIME HORIZON
(short/medium and long term)
IN THE SHORT TERM, MULTIPLE
IS THE GREATEST
DETERMINANT OF VALUATION
T h e I P O : a g a m e c h a n g e r

21. 2109/06/17
HOW TO SUPPORT / DEVELOP THE RIGHT VALUATION ?
STRONG BRANDS DRIVING VALUE
• Over the past 9 years, strong
brands ( BrandZTM Portfolio) have
outperformed stock index by 45 -
85 points
• +10 points difference in last 2
years
T h e I P O : a g a m e c h a n g e r

22. 04
Completel Europe NV IPO

23. 2309/06/17
Completel Europe NV at a glance
T h e I P O : a g a m e c h a n g e r
CREATED IN 1998 BY A US MANAGEMENT TEAM (EX -CABLE/TELCO US/UK ENTREPREUNEURS)
TO BENEFIT FROM EUROPEAN TELECOM DEREGULATION
THE AMBITION: TO BECOME THE LEADING PAN EUROPEAN CLEC (COMPETITIVE LOCAL
EXCHANGE CARRIER)
INITIAL FUNDING: $114M FROM US EQUITY SPONSORS (PRIVATE EQUITY + BUSINESS
ANGEL)

24. 2409/06/17
Completel Europe NV: the ambition to become a pan European CLEC
T h e I P O : a g a m e c h a n g e r

25. 2509/06/17
Completel Europe NV: Rationale of an IPO
T h e I P O : a g a m e c h a n g e r
CRITICAL TO BE THE FIRST MOVER TO DEPLOY LOCAL FIBER TO BUSINESS IN FRANCE,
GERMANY, UK FIRST
STRONG CAPITAL REQUIREMENT: avg. of 200k€ / km (local fiber)
CAPITAL REQUIRED BEYOND INITIAL FUNDING AND BOND OFFERING
BULL FINANCIAL MARKET IN TECHNOLOGIES
WINDOW OF OPPORTUNITY TO LAUNCH AN IPO

26. 2609/06/17
Completel Europe NV: A “BLITZ” IPO
T h e I P O : a g a m e c h a n g e r
J A N 1 9 9 9 O C T 1 9 9 9 X M A S 1 9 9 9
$ 1 4 7 M
H I G H Y I E L D
B O N D
$ 2 6 5 M
S E C U R E D
C R E D I T
L I N E
D E C I S I O N
T O G O
P U B L I C
€ 2 0 0 M
H I G H Y I E L D
B O N D
L a u n c h o p e r a t i o n s i n F r a n c e ,
G e r m a n y a n d U K
+
€ 5 5 0 M
P R O C E E D S
N A S D A Q &
E U R O N E X T
P A R I S
3 1 M S H A R E S
€ 2 . 2 b n
V A L U A T I O N
2 7 / 0 3 / 2 0 0 0
IPO

27. 2709/06/17
Completel Europe NV IPO: THE PERFECT TIMING
T h e I P O : a g a m e c h a n g e r
RAISED €550M IN A RECORD TIME (less than 3 months)
WITH A RECORD VALUATION > €2bn
DESPITE LOW OPERATIONAL / FINANCIAL PERFORMANCE
• 1999 Revenue: 3M€ – Adj EBITDA: -40M€ - Net loss: -50M€
THANKS TO THE COMBINATION OF A GREAT MANAGEMENT TRACK RECORD AND A BULL
STOCK MARKET
JUST BEFORE THE STOCK MARKET CRASH

28. 2809/06/17
Completel Europe NV: BEING LISTED IS NOT A LONG QUIET RIVER
T h e I P O : a g a m e c h a n g e r
low high
I P O
€ 1 7 . 5
€ 2 3 . 3 0 i n
A p r i l 2 0 0 0
B e l o w € 1 0 i n
A u g . 2 0 0 0
B e l o w € 5 i n
N o v . 2 0 0 0
€ 1 a n d
b e l o w
s t a r t i n g
S e p t 0 1
L i q u i d i t y
c r i s i s
a n n o u n c e d
M a y 2 0 0 2 :
R e s t r u c t u r i n g
a n n o u n c e d
( 9 7 % d i l u t i o n /
4 c l a s s e s o f s h a r e s )
D i v e r s t e d o p e r a t i o n s
i n G e r m a n y / U K
D e l i s t i n g f r o m
N a s d a q
Stock price evolution from IPO to Mid 2002

29. 2909/06/17
Completel Europe NV: GETTING BACK TO THE RIGHT VALUATION
T h e I P O : a g a m e c h a n g e r
O c t 2 0 0 2
R e s t r u c t u r i n g c o m p l e t e d & F o c u s o n F r e n c h o p e r a t i o n s
S h a r e @ 3 . 8 0
J u l y 2 0 0 5
L a u n c h o f e x p a n s i o n p l a n t o t r i p l e a d d r e s s a b l e m a r k e t :
a D S L n e t w o r k f i n a n c e d t h r o u g h a € 1 2 0 M s t a p l e d
d e b t / e q u i t y .
B e c o m i n g a k e y p l a y e r i n b u s i n e s s t e l e c o m i n F r a n c e .
S h a r e p r i c e c l o s e t o € 2 0
D e v e l o p m e n t o f o p e r a t i o n s & f i n a n c i a l p e r f o r m a n c e
D o u b l e d i g i t g r o w t h , E B I T D A @ 8 % / 1 5 % i n 2 0 0 3 / 2 0 0 4 ,
F r e e c a s h f l o w p o s i t i v e i n Q 4 ’ 0 4
R e g a i n i n g i n v e s t o r s ’ c o n f i d e n c e
2 0 0 3 - 2 0 0 5
P u b l i c o f f e r b y A l t i c e :
€ 3 5 . 5 / s h a r e ,
a 1 5 % - 2 0 % S T p r e n i u m
O c t 2 0 0 7
x10
2 0 0 2 - 2 0 0 7

30. Thank you
Catherine.blanchet@cblconseil.com