s.1 Tore Røraas, February 2011

Dark fiber as the strategy to develop a profitable FTTH-operation

Tore Røraas Director Business DevelopmentHafslund Fibernett (Oslo)

s.2 Tore Røraas, February 2011

Our scope

• Profitable fiber networks

• Alternative and competitive

• Without too much risk

s.3 Tore Røraas, February 2011

Our experience

• Get lots of friends

• Serve all

• Sell first, build after

s.4 Tore Røraas, February 2011

1. Get lots of friends

• Turn potential competitors into customers

• Service providers like dark fiber – sell it to them!

• Help your customers to be profitable

• Don’t compete with your customers

• Focus on dark fiber is an excellent solution

s.5 Tore Røraas, February 2011

2. Serve all

• Dark fiber is useful for all service providers

• Sell through your service providers:

1. Core, metro network

2. Business access

3. Residential multi-home house access

4. Residential single-home house access

s.6 Tore Røraas, February 2011

3. Sell first, build after

• Your customers know what they need

• Sell what they need, and then build it

• Reduce risk, earn more

s.7 Tore Røraas, February 2011

The Hafslund Fibernett experience

• The only dark fiber provider in Norway• Started in 2004 from scratch

• 6 other fiber networks in Oslo in 2004• Still 4 other fiber networks today in Oslo

• Our company is the leading provider of fiber in Norway

• Invested about € 90 million in fiber network• Revenue 2010 € 23 million• EBITDA 2010 €16 million

• Company sold December 2010 at enterprise value of €187 million

Annual revenue & EBITDA: 2004-2010

ROIC: 2004-2010

519

5779

124

151

180

117

4053

86101

127

020406080

100120140160180200

2004 2005 2006 2007 2008 2009 2010e

NO

Km

Revenue EBITDA

4.4 %

13.9 %16.0 %

13.3 %

16.7 % 17.1 %18.0 %

0 %2 %4 %6 %8 %

10 %12 %14 %16 %18 %20 %

2004 2005 2006 2007 2008 2009 2010e

%ROIC

www.hafslund.no/fiber

www.hafslund.no