Henri Piganeau, Managing Partner, Cube Infrastructure Henri Piganeau is Managing Partner at Cube Infrastructure, a €1.1 bn fund dedicated to majority investments in brownfield infrastructure companies across Europe; he is notably in charge of the development of the telecom platform since joining Cube in 2007. Henri has over 26 years of infrastructure project management and investment experience in concession projects, including over 10 years in the Telecom industry at Vivendi, where he developed and managed numerous concession projects, particularly in Hungary, Morocco and Spain. He notably served as CEO in Budapest for three Vivendi’s subsidiaries representing 1,200 employees servicing more than 450,000 clients and in Madrid, as deputy CEO of Xfera (today renamed Yoigo), the 4th Mobile Telecom Operator. Henri’s extensive infrastructure experience also includes a €2.7 billion project he lead as Deputy General Manager of Engineering & Architecture at Aéroports de Paris, several major concession projects (Millau Bridge, A41, A86 tunnel, etc.) as CEO at SETEC and prior to that as General Manager of the industrial division of Spie Batignolles Group, as well as the infrastructure program of the 1992 Winter Olympic Games in Albertville for the Ministry of Transportation and the County of Savoie. Henri is a graduate of Ecole Polytechnique (X79) and of Ecole Nationale des Ponts et Chaussées (Corps) and has a M.Sc. from Berkeley, USA.

1. Henri Piganeau
NGN Funding
Cube
Infrastructure
Fund
Public / private interplay
November, 20th 2013
« DigiWorld »

2. 1. Cube has 13 Investments in portfolio across 4 industrial platforms as of June
30, 2013
Transport Platform
Energy Supply Platform
Ferries & Bus
Leading ferry and bus
operator in Norway
Idex Services
3 largest1) district heating and
energy services group in France
rd
NeoElectra
District heating and energy
services specialist in France
Railways & Bus
2nd largest3) private public
transport operator in
Germany
Power Generation Platform
Communication Infrastructure Platform
Cogeneration, Biomass & Biogas Energy
Independent power producer
specialized in small to mid size
cogeneration, biomass and biogas plants
Wind Energy
Wind producer in France
(capacity of 276 MW2))
Hydro Energy
Hydro power plants in Spain and
r
Portugal (capacity of 88 MW)
Photovoltaic Energy
Solar energy assets in Europe
(installed capacity of 6 MW)
Waste to Energy
Leading position in the UK
energy-for-waste industry
2
EUROPE
Telecom Sub-marine Cable
Sub-sea optical fiber telecom
cables operator in Spain
DEVELOPMENT
Source: Xerfi (2011 results)
Including 80MW of wind currently under construction, excluding the 11MW cogeneration and 4MW of PV
3)
Source: NEIL analysis, based on Revenues
4)
Source: NEIL analysis, based on # of concessions
1)
2)
Fiber Optics Local Loops
#14) French independent fibre
optic networks’ concessions
operator
5)
Divestment foreseen in Q3 2013

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%
2%
Source: Digital Agenda Scoreboard
 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
Source: European Commission
A blatant need for funding ICT infrastructure
A blatant need for funding ICT infrastructure
3
1)
NGN applies for symmetric bit stream superior to 100 Mbps

4. 3. Infrastructure Funds in Europe
General overview
Available funds

Specialized Private Equity Funds that concentrate on financing infrastructure
companies

Typology
Dry powder has been
largely growing from
2003 on
Current dry powder in
EU: ca. € 25 billion1)

$ bn
35
30
25
20
15
10
5
0
31.8
31.7
22.6
15.9
1.7
6
19.7
17.9
24.1
20.7
7.9
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

Telco sector attracted only 6% of investment in infrastructure in 2005-11 1)
35%
30%
An untapped
potential for
Telco
25%
20%
15%
10%
5%
0%
Oil & Gas
Transport
Power
Renewable
Energy
Mining
Social &
Defense
Telecom
Waste &
Water
Despite its qualities (anti-cyclical nature, etc.), communication infrastructure might
Despite its qualities (anti-cyclical nature, etc.), communication infrastructure might
not always be perceived as infrastructure to infrastructure investors…
not always be perceived as infrastructure to infrastructure investors…
4
1)
2)
Source: Preqin, September 2013
Source: Ventura, March 2012

5. 3. Infrastructure Funds in Europe
Where has their money gone to date?
Fund
Investment
Date
RIP
200x
Set of common characteristics
2008
2009
2011
2011
 Open Access Networks, i.e. underlying
infrastructure is separated from services
procurement
 Mostly, enjoying a monopolistic or
duopolistic position
2011
2012
2013
 With a developed asset base
 And for some, existing revenues
(including cable that would migrate to FttH)
2013
Infrastructure funds strive to limit the commercial risk when investing in NGN assets
Infrastructure funds strive to limit the commercial risk when investing in NGN assets
5

6. 3. Infrastructure Funds in Europe
Attracting Infrastructure Funds: Addressing the risks
Several risks are associated to Communication Infrastructure projects; main one is the commercial risk
Mitigant
Risk Cartography

monopolistic position
Distribution
Market
adoption
[2] [5] [6]
Network
competition
[5] [6]

Commercial
risk
[5]
Construction
risk
[2] Commitment from RSPs to use
the network
[1] [5] [6]
Technological
risk
[1] Open Access Networks with a

[3] Long term contracts with RSPs
or local authorities
Regulatory
risk
[1]

[4]
Availability
or
guarantee from local authorities

[5] Extinction of copper (copper
removed once roll out is completed)
Financing risk

[3] [4] [5] [6]
[6] Migration from copper (ownershio
of both copper and fiber network – extinction
of copper afterwards)
6
payments

7. 3. Infrastructure Funds in Europe
Attracting Infrastructure Funds: Addressing the risks
The commitment of the RSPs, notably the incumbant, would be a key to an efficient financing scheme
Features
Structure Chart

RSPs (including
incumbant) and neutral
operators
Commitment
to use the
Operation
network
contract
(1-x%)
a monopolistic position
Infrastructure
Funds

[2] Commitment from RSPs to
use the network
x%/ x>>50%
Special Purpose
Vehicule
[1] Open Access Networks with
Public
authorities

[3] Long term contracts with
RSPs or local authorities
Guaranttees
Banks / bond
holders

[4]
Availability
payments
guarantee from local authorities

Concession for the roll out of a fiber OpenAcceconcession ss Network - copper to be
contributed (to the SPV, to the concesssion...).
7
or
[5] Extinction of copper

[6] Migration from copper