EXHIBIT 99.1

EX-99.1 2 dex991.htm EXHIBIT 99.1 EXHIBIT 99.1

Philip J. Koen

Chief Executive Officer

May 31, 2006

Introducing SAVVIS

NASDAQ: SVVS

Exhibit 99.1

SAVVIS Proprietary & Confidential

This document

contains forward-looking statements within the meaning of

the Private Securities Litigation Reform Act of 1995. Actual results may

differ materially from SAVVIS’

expectations. Certain factors that could

affect actual results are set forth as risk factors in SAVVIS’

SEC reports

and filings, including its annual report on Form 10-K for the year ended

December 31, 2005, as filed with the Securities and Exchange Commission

on February 28, 2006, and all subsequent filings. The forward-looking

statements in this document speak only as of the date of publication, April

24, 2006. SAVVIS assumes no obligation to update or supplement

forward-looking statements.

The presentation also includes references to certain non-GAAP financial

measures that provide additional information for investors. In compliance

with the SEC’s Regulation G, SAVVIS’

press release and filing on Form 8-K

of today, April 24, 2006, include both the rationale for why non-GAAP

information is important in describing operating performance, and the full

reconciliation with corresponding GAAP numbers.

Please Review SEC Filings

SAVVIS Proprietary & Confidential

Leader in IT infrastructure for business applications

Core Competency in Integrated Managed Hosting and Network Solutions

Global Service Infrastructure

1.4 million sq ft of space across 25 data centers in US, Europe,

and Asia

Customer Service and Operations Centers in US, Europe, and Asia

Tier 1 ISP with international fiber backbone

IP-VPN platform with 21,000+ managed end points in 45 countries

5,200+ enterprise customers and 2,100+ employees worldwide

Financial Results and Guidance

$79

$667

2005

$100 –

110

$730 –

750

2006

Adjusted EBITDA

($M)

Revenue

($M)

Year

Key Facts

SAVVIS Proprietary & Confidential

Staffing

Recruiting, developing, and maintaining key skills

Financial

High TCO and low ROI

Security

Incidents and privacy

Compliance

Expanding regulations, costs, and risks

The Problem with IT

SAVVIS Proprietary & Confidential

SAVVIS Transformation Methodology

Data Centers

Cross Connects

Power

Space

Network

Hosting

Content

Professional Services

IP-VPN

Internet

Multicast

IP Transit

Bandwidth

Caching

Streaming

Workflow

Content Library

Content Management

Dynamic Capacity

IT Security & Operations

Monitoring & Management

Servers, Storage, & Devices

Monitoring

Management

Install & Test

Remote Hands

Security

Migrations

Compliance

Program Mgmt

SAVVIS –

“Infrastructure as a Service”

SAVVIS –

“Infrastructure as a Service”

SAVVIS Proprietary & Confidential

Space & Power

Managed Hosting

Managed IP

ProServ

Consulting

Servers

Storage

Devices

Operations

Monitoring

Management

IP-VPN

Space & Power

Utility Hosting

Managed IP

ProServ

Consulting

STM

Servers

Storage

Devices

Operations

Monitoring

Management

IP-VPN

Internet

Dynamic Capacity

ProServ

Space & Power

Tier 1

Internet Access

Customer

Infrastructure

Monitoring

Management

Install & Test

Remote Hands

STM

Internet

Customer wants to

complement-

their

expertise

Customer wants to

maintain-

operations

Customer wants to

outsource-

their

environment

Customer wants

maximum performance,

scale, and value

SAVVIS Offers Choice and Flexibility

Improved Performance, Value, & Scale for Customers

Space & Power

Tier 1

Internet Access

Customer

Infrastructure

Customer Owned

Customer Managed

SAVVIS Owned

SAVVIS Managed

SAVVIS Owned

SAVVIS Managed

Customer Owned

SAVVIS Managed

SAVVIS Proprietary & Confidential

Customer Life Cycle

Customer Owned

Customer Managed

SAVVIS Owned

SAVVIS Managed

SAVVIS Owned

SAVVIS Managed

Customer Owned

SAVVIS Managed

Over 80% of new booked MRR comes from existing customers

$50/sq. ft

Up to

$250/sq. ft

Up to

$1000/sq. ft

Up to

$2000/sq. ft

* Inclusive of all services

Space & Power

Utility Hosting

Managed IP

ProServ

Consulting

STM

Servers

Storage

Devices

Operations

Monitoring

Management

IP-VPN

ProServ

Space & Power

Tier 1

Internet Access

Customer

Infrastructure

Monitoring

Management

Install & Test

Remote Hands

Space & Power

Managed Hosting

Managed IP

ProServ

Consulting

Servers

Storage

Devices

Operations

Monitoring

Management

IP-VPN

Space & Power

Tier 1

Internet Access

Customer

Infrastructure

20x

40x

SAVVIS Proprietary & Confidential

Company

Fortune 100 global company with hundreds of business units

Business Requirement

Year 1

Need more high quality data center space, but want to

avoid capital expense

Year 2

Drive to operational excellence and streamlined processes

Year 4

Reduce costs through managed services

Today

Improve time to market, reduce roll-out time of apps and

websites from months to weeks

SAVVIS Solution

Year 1

Colocation

Year 2

+ ProServ

Year 4

+ Managed security, backup, monitoring

Today

+ Utility servers and storage

Customer Scenario –

Growth Continuum

Customer Scenario –

Growth Continuum

SAVVIS Proprietary & Confidential

Company

Fortune 100 global consumer products company

Business Requirement

Aggressively leverage the Web to target 14-25 year old buyers

Implement flexible capacity to support hundreds of interactive

web sites

SAVVIS Solution

Utility servers, storage, network

Professional services and operations

Multiple data centers

“Dial-up and dial-down”

IT infrastructure

5 year $40+ million contract

Customer Scenario –

Enterprise Compute Utility

Customer Scenario –

Enterprise Compute Utility

SAVVIS Proprietary & Confidential

Sources:

Hosting

forecast

from

“U.S.

Web

Hosting

Services

2006-2010

Forecast”

IDC;

May,

2006.

IP-VPN

forecast

from

“U.S.

VPN

Services

2006-2010

Forecast”

IDC;

May,

2006.

CDN

forecast

from

Tier1

Research

analysis

delivered

SAVVIS

May,

2006.

Market Opportunity for SAVVIS

16%

9,300

8,000

6,900

Hosting

37%

1,026

800

550

CDN

17%

14,273

12,291

10,464

Total

14%

3,947

3,491

3,014

IP-VPN

CAGR

2007

(US$ in Millions)

2006

(US$ in Millions)

2005

(US$ in Millions)

Market

The markets for SAVVIS services are large and growing

SAVVIS Proprietary & Confidential

Source: Gartner Magic Quadrant for North American Web Hosting 2004

Unique hosting portfolio

spanning colocation, managed

hosting, and utility hosting

Unique integrated IT solutions

capability spanning networks,

security, content, hosting, and

professional services

SAVVIS Competitive Landscape

SAVVIS Proprietary & Confidential

Hosting: $295M

SAVVIS Services –

2005 Revenues

SAVVIS Services –

2005 Revenues

Network: $330M

MANAGED: $212M

UNMANAGED: $118M

Content Distribution: $42M

Colocation

Managed Hosting

Utility Hosting

Storage

App and O/S Management

Security

ProServ

IP-VPN

Multicast

Internet

Cross Connects

Bandwidth

IP Transit

Streaming

Caching

Content Management

Workflow

SAVVIS Proprietary & Confidential

SAVVIS Vertical Focus

Deutsche Bank

London Metals Exchange

MarketAxess

Merrill Lynch

Reuters

Scottrade

CBS Sportsline.com

Deluxe Laboratories

Discovery Communications

Fox Entertainment Group

J Walter Thompson

Technicolor

Albertson’s

Buy.com

EasyJet Airlines

eBay

Gucci

Loyalty Management UK

Advanced Bionics

American Dental Partners

Medtronic

Merck

Pfizer Health Solutions

Schering-Plough

Dept of the Treasury

General Services Admin

Voice of America / Radio Free

Europe

Computer Sciences Corp

Northrop Grumman

Raytheon

SAVVIS Proprietary & Confidential

SAVVIS Growth Strategy

Drive the transition of unmanaged colocation customers to

managed hosting services

Position the SAVVIS network as a key element of an end-to-end

integrated IT solution

Leverage our global infrastructure to target and grow multinational

accounts

Position content management and distribution as a key element of

an integrated business solution

Financial Overview

SAVVIS Proprietary & Confidential

Diversified revenue; growth driven by core services

Double-digit growth in Hosting and Managed IP VPN

Visibility into revenue

•

Over 90% of revenue is recurring

•

Over 80% of new bookings from existing customers

•

Average contract length approximately two years

Adjusted EBITDA growing with improving margins

Operating cash-flow positive

Improving capital structure

Financial Highlights

SAVVIS Proprietary & Confidential

Total Revenue

616.8

667.0

740.0

100

200

300

400

500

600

700

$800

2004

2005

2006 Outlook

(Midpoint)

Adjusted EBITDA

14.4

79.3

105.0

100

$120

2004

2005

2006 Outlook

(Midpoint)

Adjusted EBITDA Margin

2004:

2005:

12%

2006 (Midpoint):

14%

Improving Revenue and Adjusted EBITDA

SAVVIS Proprietary & Confidential

Hosting revenue: anticipated >$350 million in 2006

Significant growth opportunity from repricing colo

Strengthening adoption of managed hosting services

Managed IP VPN: anticipated >$215 million in 2006

Selectively targeting global organizations

Offer clients reliability, security and global footprint

Revenue Growth Opportunity

SAVVIS Proprietary & Confidential

Grow revenue 10-15% annually

Target Adjusted EBITDA margin 25%

Target Adjusted EBITDA flow-through margin 40-50%

Long-term targets are subject to risks and uncertainties as described

in SAVVIS’

Form 10-K filed with the U.S. Securities and

Exchange Commission.

Long-term Targets

SAVVIS Proprietary & Confidential

Anticipated share count: 50 million shares of common, post-split

and exchange

1-for-15 reverse split June 6

37 million to be issued in exchange for Preferred (late June/early July)

Paid down $16 million on revolving credit facility in Q1

Variable rate at 7.6% at 3/31/06

$42 million drawn; $32 million available

Subordinated note, 15% PIK, $267 million at 3/31/06

Debt to Adjusted EBITDA ratios solid

At 2006 outlook midpoint, total debt/Adjusted EBITDA 3.5x

Adjusted EBITDA/interest 2.0x; Adjusted EBITDA/cash interest 7.7x

Operating cash flow positive; $49.6 million cash at 3/31/06

Capital Structure Overview

SAVVIS Proprietary & Confidential

2006 total revenue $730-750 million

Hosting revenue growth 20-25%

Managed IP VPN revenue growth 14-18%

Reuters contributing 12-13% of total revenue (vs. 15% in 2005)

2006 Adjusted EBITDA $100-110 million

2006 cash capital expenditures $60-70 million

~70% success-driven (revenue-generating); ~30% maintenance

$5-6 million for commission of IDC in Santa Clara

Positive cash flow

*Financial outlook is based on information current as of May 31,

2006, and is subject to risks and uncertainties as described in

SAVVIS’

Form 10-K filed with the U.S. Securities and Exchange Commission.

Financial Outlook*

Thank You