James Saundres, Managing Director of Commercial Ventures Quintain discusses multi utility initiatives, vacuum waste disposal and fibre initiatives at NextGen 09 in Leeds on 16 and 17 November 2009

1. Multi Utility Challenges and Ventures
James Saunders
Managing Director, Commercial Ventures
Quintain Estates Development
© Quintain Estates and Development PLC 1

2. Quintain
• Urban Regenerator
– Wembley City
– Greenwich
Peninsula
• Focussed on long-term
revenue from
infrastructure
ownership
• Challenging existing
models of working with
incumbents
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3. What Multi-Utility means to Quintain
• Synergies in deployment
• Synergies in operations
• Forming alliances of interested parties
• Innovating business models
• Designing new services that meet real consumer needs
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4. Multi-Utility Challenges
• Competing interests amongst alliance partners
– Different mandates
– Different risk tolerances
– Different expectations: IRR’s, Year ends
– Attitude to open book / documentation
– Incumbents don’t play ball unless inside Musco
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5. Multi-Utility Challenges
• Lack of UK Precedents and Experience
– Most Musco’s on hold
– Few Esco schemes live
– Few NGA networks operational
– Consultants with no implementation experience
– New business models, technology, alliances
– Large corporates stretching into new niche areas
– Business model has consistently been the hardest issue to
resolve
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6. Multi-Utility Challenges
• Unclear Regulation
– OfGem, OfWat, OfCom hard to navigate
– Little joined up thinking, except protecting consumer
– Changing goal posts – Private Wires, Battery Backup
– Lawyers stretching to interpret rules (and learning at your
pace)
– Changing Regulatory landscape does not encourage new
entrants and new models
– Next Gen Telecoms are an after-thought compared to
Decentralised Energy
© Quintain Estates and Development PLC 6

7. Multi-Utility Challenges
• Current Market Uncertainty - > build rate uncertainty
– Balance sheets are weaker
– Capex plans are difficult to commit
– Can’t sell services if no residents or slower move in rates
– Developer bears most of the risk in alliances
– Partners withdraw from particular area or de-prioritise new
initiatives
Developer plot-by-plot mentality, not site-wide
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8. So what are developers left with?
• You can form an alliance of incumbents, but this is NOT a MUSCO
 Need to take control and set clear criteria that work for you
 Assemble a flexible team that has the right skills and experience to tackle the
uncertainties ahead
 Use modular / upgradeable technology
 Focus on consumer benefits - not premium pricing
 Flex the business model
 Prepare to think again – tender operations separately from asset build
 Hope for, but do not rely on, subsidy regime
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9. What are Quintain doing?
• Quintain are currently not implementing Musco’s
• We are focussing on the infrastructure elements that make sense
given development programme
• Challenging incumbents view of the world
• We seek partners with depth of operating experience (often from
outside UK)
• Sustainable Supply Chain management
• Prioritising Renewable Energy, Telecoms and Waste Disposal
• Taking the “Brave Pill”
• Learning, re-applying, exporting
© Quintain Estates and Development PLC 9

10. Waste Disposal:
• Goals:
– Zero wheelie bin environment
– Fewer refuse truck trips
– Higher recycling levels
• Solution: Envac Vacuum Waste
Disposal
• Results:
– 40% Increase in recycling
– 90% fewer refuse truck trips
– 400 tonnes less carbon per
annum
– 15p a month per resident to run
© Quintain Estates and Development PLC 10

11. Envac System
1A: Waste is thrown into a waste inlet 1B: The system can be retrofitted with additional inlets 2: The
computer- controlled evacuation takes 30 seconds 3: All waste is sucked out through a network pipes at
a speed of 70km/h 4: Fans create the partial vacuum that sucks the waste through to the reception
facility in the terminal station 5: The waste is directed to the correct container 6: The air is cleaned by
filters before it is released
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12. Fibre Optic Communications
• Goals:
– High speed broadband, TV, phone and multiple IP services to residents and
businesses
– Utilising single fibre connection
– Instant activation for resident
– Scalable across Quintain developments and others around UK
• Solution: Velocity1
– JV with Industria Media
– Flexible IP platform capable of delivering multiple services
• Initial Services (because none other available)
– 8,16,32,mb/s broadband with 100mb/s boost
– Freeview TV and Sky-by-Wire
– Phone with free calling packages
– Local information portal
• Open Access roadmap
• Results: 90% consumer take-up of services.
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14. What have we learned after 12 months?
• Consumer higher receptive to new services
• However you must deliver the market norms
– Service, Support, Quality, Bundles
• Consumer very aware of national advertised pricing – “up to” etc
• No need to deliver 100mb/s today, but need the capability
• Residents can run businesses from home
• Residents seek out your development because of superior internet
access
• Private customers value Broadband above all else; Affordable
housing TV
• Instant activation major benefit, especially in rental market
• Marketing story for developers strong
• There is a chronic shortage for FTTH ISP’s in the marketplace
© Quintain Estates and Development PLC 14

15. THANK YOU
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