Henri Piganeau

CubeInfrastructure Fund

NGN Funding Attracting Infrastructure Funds dry powder

May 2014

Transform Digital INCA Conference

2

Cube Infrastructure Fund – snapshot

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

13 investments across 3 industrial platforms and a diversified portfolio of power generation assets

CommunicationInfrastructure

Fiber Optics, Local Loops, Telecom Submarine Cable

PublicTransport

Ferries & Bus, Railways & Bus

Power Generation

Cogeneration & Biomass, Waste to Energy, Photovoltaic, hydro and Wind energy

D EVEL O PM EN T

EnergySupply

District Heating,Energy Services

2 leading public transport operators in Sweden and Finland

subject to transaction closing

2019 to 2022Term

Natixis Environnement & Infrastructures Luxembourg; Team of 24 professionals with proven industrial, managerial and cross-border investment experience

Manager

Focus

Regulated brownfield infrastructure in the E.U.Sectors : transport, energy, environment and communication infrastructureLong term predictable cash flows offering solid growth potential, preferably in the middle-market60% of cash flows in Euros

Currently 13 investments completed and3 investment platforms created

Investments

Current commitments at €1.2 billion23 investors: 2/3 France – Europe, 1/3 North America

Fund Size

Cube Infrastructure Fund Cube’s portfolio

Communication Infrastructure Platform

Current and prospective geographic presence

Local NetworksBackboneNew tenders 2013 –

2014Consolidation

targets

BalaLinkOranLinkEulaLink

Revenues: € 54mEmployees: 15010,000 km of fiber network

Key Figures (consolidated)

Key investment considerations

•Long term contracts with local authorities and high barrier at entry to build and operate networks in semi-dense areas•Strong growth potential driven by the need for superfast symetric broadband from both enterprises and general public

Outlook

•Capitalize on its unlevered structure and on the significant pipeline of tenders coming to the market, to increase further its long-term growth prospects and diversify its contract base•Pursue opportunistic acquisitions and partnerships Key investment considerations

•Strong cash flows backed by long-term contracts with major telecom providers in a fast growing market•Value creation through profitable development: CanaLink (2011), OranLink (2011)

Outlook

•Stay alert to the current trends towards consolidation in the European telecom landscape•Pursue additional development opportunities : OrVal cable between Oran and Valencia, EulaLink to connect Latin America to the Iberian Peninsula

3

Cube’s investments in communication infrastructure

4

Infrastructure Funds in Europe - general 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 2005-112)

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

Where has their money gone to date?Examples

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

Attracting 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

(ownership 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]