Henri Piganeau

CubeInfrastructure Fund

NGN Funding Public / private interplay

November, 20th 2013

« DigiWorld »

2

1) Source: Xerfi (2011 results)2) Including 80MW of wind currently under construction, excluding the 11MW

cogeneration and 4MW of PV3) Source: NEIL analysis, based on Revenues4) Source: NEIL analysis, based on # of concessions

Transport Platform

Communication Infrastructure Platform

Energy Supply Platform

1. Cube has 13 Investments in portfolio across 4 industrial platforms as of June 30, 2013

Ferries & BusLeading ferry and bus operator in Norway

Railways & Bus2nd largest3) private

public transport operator in Germany

Telecom Sub-marine Cable

Sub-sea optical fiber telecom cables operator

in Spain

Fiber Optics Local Loops

#14) French independent fibre optic networks’ concessions operator

Power Generation Platform

rHydro Energy

Hydro power plants in Spain and Portugal (capacity of 88 MW)Photovoltaic Energy

Solar energy assets in Europe (installed capacity of 6 MW)

Wind Energy Wind producer in France

(capacity of 276 MW2))

Waste to Energy Leading position in the UK energy-for-waste

industry

DEVELOPMENT

Cogeneration, Biomass & Biogas Energy Independent power producer specialized in small to mid size cogeneration, biomass and biogas plants

E U R O P EE U R O P E

5) Divestment foreseen in Q3 2013

Idex Services3rd largest1) district heating and energy

services group in France

NeoElectraDistrict heating and

energy services specialist in France

3

2. NGN1) roll-out in Europe

EC Digital Agenda objective is to having 50% of households with over 100 Mbps subscription by 2020

Actual progress rate stands at 2%

1) NGN applies for symmetric bit stream superior to 100 Mbps

Europe is lagging behind Asia and North America in terms of FttH take-up

Europe is largely heterogeneous with only a limited number of best performing countries in terms of effective access to high speed broadband technology

A blatant need for funding ICT infrastructureA blatant need for funding ICT infrastructure

Source: Digital Agenda Scoreboard

Source: European Commission

2%

4

3. Infrastructure Funds in EuropeGeneral overview

Typology Specialized Private Equity Funds that concentrate on financing

infrastructure companies

Despite its qualities (anti-cyclical nature, etc.), communication infrastructure might not always be perceived as infrastructure to infrastructure investors…

Despite its qualities (anti-cyclical nature, etc.), communication infrastructure might not always be perceived as infrastructure to infrastructure investors…

Available funds

An untapped potential for

Telco

Dry powder has been largely growing from 2003 on

Current dry powder in EU: ca. € 25 billion1) Telco sector attracted only 6% of investment in infrastructure in 2005-111)

0%

5%

10%

15%

20%

25%

30%

35%

Oil & Gas Transport Power RenewableEnergy

Mining Social &Defense

Telecom Waste &Water

1) Source: Preqin, September 20132) Source: Ventura, March 2012

1.76 7.9

15.9

22.619.7 17.9

20.7

31.7

24.1

31.8

05

101520253035

déc.-03 déc.-04 déc.-05 déc.-06 déc.-07 déc.-08 déc.-09 déc.-10 déc.-11 déc.-12 sept.-13

Dry powder Europe

$ bn

5

3. Infrastructure Funds in EuropeWhere has their money gone to date?

Set of common characteristics

Open Access Networks, i.e. underlying infrastructure is separated from services procurement

Mostly, enjoying a monopolistic or duopolistic position

With a developed asset base

And for some, existing revenues (including cable that would migrate to FttH)Infrastructure funds strive to limit the commercial risk when

investing in NGN assetsInfrastructure funds strive to limit the commercial risk when investing in NGN assets

Fund Investment Date

200x

2008

2009

2011

2011

2011

2012

2013

2013

RIP

6

3. Infrastructure Funds in EuropeAttracting Infrastructure Funds: Addressing the risks

Technological risk

Several risks are associated to Communication Infrastructure projects; main one is the commercial risk

Commercial risk

Distribution

Regulatory risk

[1] Open Access Networks

with a monopolistic

position

[2] Commitment from

RSPs to use the network

[3] Long term contracts

with RSPs or local

authorities

[4] Availability payments

or guarantee from local

authorities

[5] Extinction of copper

(copper removed once roll

out is completed)

[6] Migration from copper

(ownershio of both copper

and fiber network –

extinction of copper

afterwards)

[1]

[1]

[4][3]

MitigantRisk Cartography

Construction risk

Financing risk

Market adoption

Network competition

Regulatory risk

Network competition

Network competition

DistributionMarket

adoption

Technological risk

Financing risk

Commercial risk

Commercial risk

Financing risk

Commercial risk

Financing risk

Commercial risk

Financing risk

Financing risk

Network competition

DistributionMarket

adoption [6]

[6]

[6]

[6][5]

[5]

[5]

[5]

[5]

[2]

7

3. Infrastructure Funds in EuropeAttracting Infrastructure Funds: Addressing the risks

The commitment of the RSPs, notably the incumbant, would be a key to an efficient financing scheme

[1] Open Access

Networks with a

monopolistic position

[2] Commitment from

RSPs to use the network

[3] Long term contracts

with RSPs or local

authorities

[4] Availability

payments or guarantee

from local authorities

[5] Extinction of copper

[6] Migration from

copper

FeaturesStructure Chart

Special Purpose Vehicule

Infrastructure Funds

Public authoritie

s

RSPs (including

incumbant) and neutral

operators

Operation contract

(1-x%) x%/ x>>50%

Banks / bond

holders

Commitment to use the network

Concession for the roll out of a fiber Open-Acceconcession ss Network - copper to be contributed (to the SPV, to the concesssion...).

Guaranttees