James EnckCorp. Development & IR

CityFibre overview

Presentation to DG ConnectSlide 2

Dundee

Newcastle

Ayr

Sheffield

Bath

BOURNEMOUTHFibre to the

Home Network

Kirklees

• Designer, builder, operator & owner of city-wide shared fibre optic wholesale network infrastructure (Stokab in Stockholm is probably the best reference point)

• CityFibre Infrastructure Holdings PLC

• Created via acquisition in 2011

• £46.5m equity raised to date (AIM: CFHL)

• Strong institutional investor base

• Gigabit Cities in deployment:

• York, Peterborough, Coventry, Aberdeen

• Network presence in 57 conurbations

• Largest FTTH network in UK in Bournemouth

A Builder of UK Gigabit Cities

A shared infrastructure model entirely independent of BT Openreach

Contract-based, shared infrastructure model

Presentation to DG ConnectSlide 3

• Consumers (FTTH)

• Small Businesses

• Mobile Cell Sites

• Big Businesses

• Public WiFi & CCTV

• Public Sector Sites

Anchor contract partially de-risks

ROI

High returns on incremental

capex

Shared infra delivers better economics for

partners

Contract-based, shared infrastructure model

Upsell: Local Authority Upsell: Businesses & Mobile Upsell: Consumer FTTH

Contract and network grows as more public services are added: schools, NHS, council sites, CCTV etc.

Incremental networks growth for significant returns by targeting close proximity mobile masts, data centres and SMEs

ISPs take CityFibre to the home as consumer media suppliers need faster internet speeds to sell

Anchor contract: 5 - 20 year agreement for initial fibre networkcovers 50 - 100% of build costs, but uses less than 5% of the network capacity

Source: CityFibre GIS data Source: CityFibre GIS data Source: CityFibre GIS data

Presentation to DG ConnectSlide 4

Progressing towards a highly scalable footprint

Indicative: Assumes typical UK city with 100,000 homes, 7,000 businesses and 500 public sector sites200 mobile cell sites per city, (small cells at 3:1 ratio of macro cells)

• CityFibre’s approach is gaining support from many large consumers of infrastructure, across all market segments

• Our 5 current projects provide an addressable footprint of >500,000 homes

• Anchor opportunities are accelerating; Local authority & government support is increasing

Gigabit CitiesShared Infrastructure

Public Sector Sites (Cumulative Addressable)

Addressable Mobile Cell Sites (Cumulative)Macro Cells [Small Cells]

Addressable Businesses (Cumulative)

Addressable Homes(Cumulative)

5 Cities 2,500 1,000 [3,000] 35,000 >500,000

10 Cities 5,000 2,000 [6,000] 70,000 1,000,000

15 Cities 7,500 3,000 [9,000] 105,000 1,500,000

20 Cities 10,000 4,000 [12,000] 140,000 2,000,000

25 Cities 12,500 5,000 [15,000] 175,000 2,500,000

Partners / Potential Partners

Indicative Contract Term 5 - 20 years 10 years 3, 5 or 7 years 10 years +

Presentation to DG ConnectSlide 5

City of York – Proving the model

Anchor contract a solid foundation

Went live 2011, connecting 105 education and council sites

10 year initial contract: £4.2m contracted revenue (TCV)

Network build: £4.5m for 94km network (94% TCV/capex)

Incremental business shows increasing operating leverage

Additional £2.2m (+52%) of contracted revenue added since anchor –

with incremental capex of only £0.97m (229% TCV/capex)

£426k TCV added in H1, vs. capex of £114k (TCV/capex of 373%)

£700,000 current annual run-rate revenue, 93% gross margin

FTTH JV on track and moving forward

JV with Sky and TalkTalk to deploy FTTH city-wide progressing

Fujitsu construction contract signed, in deployment

First residential customers expected to be connected in mid-2015

YORK

Presentation to DG ConnectSlide 6

Expansion cities update

Build on schedule and on budget for completion December 2014

30 out of 106 planned council sites already live with services

25% of businesses pre-registered for services, 40+ converted to contract

Acquisition of 180km network closed 3 June, rebranded as Coventry CORE

“Gig Up” demand aggregation campaign launched in June

Over 220 businesses pre-registered to date

Announced 11 August, 72km build to connect 176 public sector sites

First contract win with PSN accredited partner Easynet

First PSN procurement to employ significant dark fibre solution

Announced 3 September, partnering business ISP, Internet For Business

Contractual commitment to upsell/migrate existing customers, 50km initial

build of potential 120km

A UK economic powerhouse

No Virgin Media presence

KIRKLEES

Presentation to DG ConnectSlide 7

Thank you