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The he Na Nationwide tionwide Builder uilder of of G Giga igabit Cit bit Cities ies 2015 20 15 Fina Financ ncial ial Resu esults lts Apr pril il 20 2016 16 Cit CityFibr yFibre organic pr ic projec ject: : Edinb Edinburgh


  1. The he Na Nationwide tionwide Builder uilder of of G Giga igabit Cit bit Cities ies 2015 20 15 Fina Financ ncial ial Resu esults lts Apr pril il 20 2016 16

  2. Cit CityFibr yFibre organic pr ic projec ject: : Edinb Edinburgh M Metro Network

  3. 2015 Results Overview • Sales of 1,110 connections for TCV of £23.2m (+109%) • Turnover up +67% Year on Year to £6.4m Financials • Gross margin further expanded to 86% • Turned the corner on EBITDA, -£2.9m vs. -£3.6m in 2014 • Connected customer premises +36%, to 1,200 (2014: 885) • Route KMs of ducted metro fibre +37%, to 743 (2014: 543) KPIs • Service provider relationships expanded to 41, from 25 in 2014 • Three new city wins – Edinburgh, Glasgow and Newport • Closed £90m acquisition of KCOM’s 24 city metro duct/fibre network and 1,100 km national network Post period • Closed £180m financing (£80m placing, £100m debt) highlights • 2500+ connections and £37.5m TCV added YTD (£12.5m organic) • EBITDA positive in Q1 2016 and continuing upward trajectory - Former KCOM Metro City - LDN interconnect POPs - CityFibre Metro City 3

  4. Acquir Acquired ed footprint: Bristol ootprint: Bristol Metr etro N o Netw etwor ork

  5. Transformational Acquisition KCOM acquisition established scale: • £90m acquisition of 2,200 km of national fibre assets – 21 new cities • KCOM anchor contract, 15 year term, £5m per annum Financial resources to drive growth: • January 2016 – closed £80m equity and £100m debt facility • Fully funded for a 50 city metro footprint – c.20% coverage of the UK Leveraging our position as a national infrastructure: • Accelerated rollout: • Footprint expansion accelerated by 5 to 7 years • Our wholesale model is now available across 37 cities - KCOM Metro City, total route length 1,100km • - 1,100 km LDN is interconnected to major data centres CityFibre now in 24 of the top 30 cites outside of London • A large scale alternative to BT Openreach: CityFibre: York KCOM: Leeds • Estimated reinstatement value of combined assets >£200m • Attractive to national providers with expanded footprint • Potential for FTTP rollout to business parks across expanded footprint • Enabler for larger scale mobile FTTT and consumer FTTH rollouts • Quickly commercialising assets: • Focus on launching new Gigabit Cities on acquired assets • 450 circuits added in first 90 days since close • First capacity sale on the LDN 5

  6. Market Backdrop Global IP traffic: 23% CAGR between 2014 – 2019 Ofcom regulatory reviews 180 • 160 Ofcom’s Strategic Review of Digital Communications (DCR), 140 published February 2016, sets a new path for regulation: Exabytes per month 120 100  Greater investment in pure fibre networks 80 60  Competition to BT Openreach, and the encouragement of 40 Source: CityFibre, Cisco VNI third party infrastructure (in addition to BT and Virgin) 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F 2016F 2017F 2018F 2019F  Greater access to BT’s ducts and poles (DPA, PIA) • • Global IP traffic will increase 3x in the next 5 years BCMR – mandating Dark Fibre from BT, pricing under review, • Global mobile data will grow 3x faster than fixed IP traffic with potential appeal or challenge possible • Metro traffic will account for 66% of total IP traffic by 2019 The UK’s fibre infrastructure lags behind other countries Supportive market dynamics • As a specialist fibre infrastructure builder and integrator, we are ideally placed to take advantage of DPA, using BT’s ducts to supplement CityFibre’s own ducted infrastructure, potentially lowering deployment costs • BT’s acquisition of EE will motivate its competitors to seek alternative infrastructure solutions Source Ofcom 2015 • The “Gigabit City” phenomenon is building momentum worldwide – in the UK, CityFibre is the recognised leader • UK fibre connectivity continues to lag behind • BT has limited desire to invest in fibre to the premises • Problem is magnified outside London 6

  7. Recapping Our Model Low Risk Deployment Strategy, Well-Planned City Design Principle Sites connected at maturity Public Sector 300 – 400 Business 575 – 700 Mobile 75 – 100 950 – 1,200 Total Metro area Consumer FTTH Payback on incremental capex Model to drive high recurring Network gross margin >90% c.2 years revenue yield 7

  8. Accelerating the ‘Gigabit City’ Rollout Metro Cities Addressable Public Addressable Addressable Mobile Addressable Homes Shared Infrastructure Sector Sites Businesses Sites (Cumulative) (Cumulative) (Cumulative) (Cumulative) Macro Cells [Small Cells] 37 Cities 26,000 260,000 7,400 [22,000] 3,700,000 50 Cities 35,000 350,000 10,000 [30,000] 5,000,000 Platform for FTTH Partners Focus on commercialization - growing partners and revenues across metro assets expansion Gigabit City commercialisation underway: ISP partner expansion underway: Aiming to grow to 100 service provider • Up to 10 Gigabit City Launches on new assets in 2016 relationships by 2018 • Bristol – 100 connections sold • Leeds/Bradford – 350 connections sold 120 100 • Standard products and pricing to be released across 80 59 entire footprint 60 31 9 40 • FTTP business park solution being reviewed 20 41 41 41 41 25 0 2013 2014 2015 2016 2017 2018 - Current Partners - New Partner Targets 8

  9. Commercialisation of KCOM Assets and Greenfield Build Bristol – 100 connections committed • Gigabit City launch partner Triangle Networks committing to a minimum of 100 connections • Six-year contract, TCV £1.5m, limited incremental build required Leeds-Bradford – 350 connections committed • Local ISPs Exa Networks and Diva Telecom committing 250 and 100 sites, respectively • Six-year contracts, combined TCV £4.9m, good coverage and limited incremental capex Reading to Slough – first sale on the national core • 15-year IRU, first capacity sale on the national long distance network • TCV of £2.3m, limited incremental capex Southend-on-Sea (greenfield build) • 10-year contract covering 120 connections over a 50km network build • Direct procurement by the council, £3.2m TCV, high capex coverage 9

  10. 20 2015 15 Fina Financ ncial ial Res esults ults

  11. 2015 Financial Review Profit and loss (£m) Revenue growth driven by full year effect of a number of early (Year to 31 December) 2015 2014 YoY projects and contributions from new anchor city projects. Revenues from the business vertical improved by £1.0m Turnover 6.4 3.8 67% Cost of sales 56% (0.9) (0.6) Gross margin expansion of 0.9% reflects profitability of new business Gross profit 5.5 3.3 68% Gross margin 0.9% 86.1% 85.2% Non-cash and non-recurring costs of £3.2m primarily relating to depreciation, share-based payments and KCOM transaction Administrative expenses (11.7) (10.7) 9% Operating loss (6.2) (7.5) -17% Normalised administrative costs +22%, reflecting business expansion Net financials and associates (0.2) 0.4 n.m. Pre-tax loss Capex of £13.8m split 83% new Gigabit Cities/17% incremental (6.4) (7.1) -9% business on existing assets Adjusted EBITDA (2.9) (3.6) -20% Post transaction close added £90m in PP&E, Q1 cash position Balance sheet and cash flow (£m) £23m (As at 31 December) 2015 2014 YoY 14.7 15 Net PP&E 44.0 31.8 38% Trade and other receivables 6.0 3.7 61% 10 6.4 Cash, equivalents and deposits 9.7 33.2 -71% 3.8 5 2.4 Total assets 61.4 70.1 -12% 1.9 Total liabilities 17.6 20.3 -13% 0 Total equity 43.8 49.9 -12% -3.0 -2.9 -3.6 -5 2013 2014 2015 Consensus 2016 Network capex (13.8) (4.5) 207% Revenue Adj. EBITDA Operating cash outflow (5.4) (3.6) 51% 11

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