COMPANY PROFILE JUNE 2018 NEXERA IS BUILDING POLAND S DIGITAL FUTURE WITH PLN 1.3 BILLION INVESTMENT IN NEXT GENERATION ACCESS PROJECT NEXERA is a new enterprise on the Polish market, intending to deploy modern fibre-optic broadband in thirteen areas of central and north-eastern Poland within the framework of the Operational Programme Digital Poland (POPC), one of the Polish government s flagship digital programmes. Nexera Holding Sp. z o.o. is a joint venture of Infracapital, a leading European infrastructure fund owned by M&G Prudential, with significant experience in investing in the telecommunications sector, and Nokia, the global expert in technology and telecommunications services. NEXERA is one of the largest participants (beneficiaries) in the POPC programme, which is aimed at liquidating NGA white spots on the broadband map of Poland, meaning areas with no access to high-speed Internet. In June 2017, NEXERA won a POPC competition to deploy broadband infrastructure in thirteen areas of Poland. POPC is aligned with the objectives of Digital Agenda for Europe, the most important of which is combating the digital exclusion of EU citizens. NEXERA IS BUILDING THE FUTURE Deploying a technologically advanced fibre-optic network will allow over 450,000 households in central and north-eastern Poland to access high speed Internet, telecommunications services and digital TV by 2020. Of those, over 280,000 households are in white spots and will be connected with POPC subsidies. Pupils from over 2,600 schools in these areas will be able to use Internet on equal terms with their counterparts in the country s regions that are more developed in terms of network infrastructure. Since the earliest age, they will be able to gain digital competences, which are essential in the 21 st century economy. 450,000 HOUSEHOLDS WITHIN OUR NETWORK S REACH 2,657 SCHOOLS COVERED BY OUR NETWORK 100 Mbps MINIMUM SPEED OF OUR INTERNET ACCESS NETWORK (NGA) 1
The construction of the network will also mean new jobs, new stimulus for businesses and increased competitiveness for regions where the network will be located. Over the long term, NEXERA will contribute to the development of a modern economy in Poland. The value of NEXERA s entire investment will reach PLN 1.3 billion, of which PLN 518 million will come from EU subsidies. The remaining PLN 785 million is provided by its shareholders. In the future, NEXERA is looking to develop its wholesale business through POPC projects as well as organic and inorganic growth. SHAREHOLDERS WITH GLOBAL EXPERIENCE GUARANTEE NEXERA S FINANCIAL AND OPERATIONAL STABILITY Infracapital a long-term infrastructure investment fund and Nokia the global provider of technological and telecommunications solutions have joined forces to implement an innovative infrastructural project on the Polish market. Infracapital is the majority shareholder of Nexera Holding Sp. z o.o. (80%) and is providing the financial backing for the roll-out and growth of the business. Nokia (20%) is both a co-owner and a technological partner in the project. Backed by its renowned shareholders, NEXERA is wellequipped to operate and develop its business in Poland. NEXERA IS ELIMINATING NGA WHITE SPOTS One of the objectives of Digital Agenda for Europe is to provide broadband coverage at 30 Mbps or more (downloading) for 100% of EU citizens by 2020, with at least half of all EU citizens using Internet access services of no less than 100 Mbps speed. Poland is implementing the Operational Programme Digital Poland (POPC), which aims to reinforce the country s digital foundations. The programme is divided into four proprieties. The first one Universal access to high-speed Internet has over EUR 1 billion in EU funding for the deployment of broadband networks throughout the country. Eliminating NGA white spots means providing Polish citizens with access to Internet speeds of at least 30 Mbps and access for all public schools (primary and secondary) to Internet speeds of at least 100 Mbps. Through its subsidiaries, NEXERA participated in a POPC competition to build a fibre-optic access network. In June 2017, it won the competition to deploy a network in thirteen areas in central and north-eastern Poland. The investment will be subsidised by EU funds (PLN 518 million, which constitutes approx. 80% of the entire investment s eligible costs). majority shareholder of Nexera Holding Sp. z o.o. (80%) European infrastructure investment fund part of M&G Investments, Prudential group manages assets worth over GBP 3 billion across various funds operates in 10 European countries experienced investor and owner of telecommunications companies Gigaclear (UK), Alticom (NL) and Falbygdens Energi (Sweden) has an investment horizon of 20-25 years also owns Duon Dystrybucja in Poland minority shareholder of Nexera Holding Sp. z o.o. (20%) leading global provider of modern technologies truly worldwide, with a presence in more than 100 countries has about 5,400 employees in Poland Nokia European Software & Engineering Centre the largest ICT research and development institution in Poland NGA WHITE SPOT an address point not covered by a network offering access to Internet speeds of at least 30 Mbps (for educational units at least 100 Mbps). 2
BUSINESS MODEL & TECHNOLOGY NEXERA will deploy a high-speed fibre-optic network (with speeds of at least 100 Mbps) and will operate in areas located in four voivodships: Łódzkie, Świętokrzyskie, Kujawsko-Pomorskie and Warmińsko-Mazurskie. The network will cover over 450,000 households in total. Of those, over 280 000 households in NGA white spots and over 2,600 schools - thanks to POPC public subsidy. The network will be developed in FTTH (Fibre To The Home) GPON (Gigabit Passive Optic Network) architecture. That means that the signal in the network will reach households and schools without the need for any amplification, and the network itself will be more durable and less expensive to build and operate. 13 AREAS WILL BE COVERED BY NEXERA NETWORK 4 VOIVODSHIPS IN CENTRAL AND NORTH-EASTERN POLAND NEXERA will become the first purely wholesale large-scale access network operator. NEXERA s services will be available to all ISPs (Internet Service Providers) currently present in these areas as well as those wishing to enter the market in central and north-eastern Poland. Retailers will be able to use the network on a non-discriminative terms, meaning that every entity interested in working with NEXERA will have access to its services on equal terms. In line with the POPC competition requirements, NEXERA will publish its pricing at the beginning of 2018, after its wholesale offer is approved by the National Regulatory Authority Office of Electronic Communications. Once this happens, retail service providers will be able to conclude contracts for using NEXERA s access network. OUTLINE OF NEXERA S NETWORK PDU - at this point NEXERA s connects with an ISP that provides access to Internet OLT devices Access network will be deployed on energy poles or underground Household / Retail user 3
21 ST CENTURY INTERNET IN SCHOOLS Aside from the commercial dimension, the project is also significantly contributing to the development of modern education and the digital competences of Polish children and youth. NEXERA will deploy an access network to all primary and secondary schools in all of the regions covered by the project. These schools will be connected to the Nationwide Educational Network (OSE), which is financed from the state budget. Thanks to NEXERA s network and OSE s services, Polish pupils will gain access to very fast Internet. PLN 1.3 bn INVESTMENT S ENTIRE VALUE PLN 518 mn FUNDED BY EU SUBSIDIES THE INVESTMENT WILL BRING TANGIBLE BENEFITS RETAIL ISPs open access to a fibre-optic network on attractive and equal terms for all ISPs NEXERA s offering tailored to ISPs needs resilient and future-proof technology (FTTH GPON) offering capacity and service quality for years HOUSEHOLDS modern network ensuring the highest quality of service for years high speeds (at least 100 Mbps) option to select services from multiple providers in NEXERA s network convenient change of provider once installed, FTTH network does not require new cabling when replacing providers PROJECT SCHEDULE First households will be connected to NEXERA s network in mid-2018. By the end of August 2018, 80% of schools in the project s coverage area will be connected to the network. The construction of the NEX- ERA network will be completed in 2020. JUNE 2017 conclusion of agreement under POPC OCTOBER 2017 appointment of NEXERA s board DECEMBER 2018 NEXERA Group reaches its final structure Q1 2018 NEXERA s pricing unveiled SCHOOLS all schools in regions covered by the project will gain Internet access Nationwide Educational Network will provide free Internet to pupils capability to use modern teaching methods capability to develop pupils digital competences (e.g. programming) and prepare them better for challenges of the future job market MID 2018 first households connected to network AUGUST 2018 80% of schools covered by POPC connected to network MID-2020 the network will cover 450,000 households 4
REGION AND LOCAL COMMUNITIES new jobs related to project execution stimulus for local business new initiatives, new businesses higher attractiveness and competitiveness of regions covered by the project and (in the long term) higher number of young residents NEXERA GROUP S STRUCTURE The NEXERA Group comprises the following companies: the holding company - Nexera Holding Sp. z o.o. and the operating company - Nexera Sp. z o.o. which was established in 2017 as a result of the consolidation of special purpose vehicles. EXPERIENCED MANAGERS ARE NEXERA S STRONGEST SUIT The management board of Nexera Holding Sp. z o.o. consists of leading telecoms experts with years of project management experience. The board s objective is to take the company through its start-up phase, implement the POPC-funded project, build a wholesale operator and later continue developing on the Polish market. JACEK WIŚNIEWSKI, Management Board Member, General Manager, Chief Operating Officer At NEXERA, he is responsible for network management and business operations. He has worked in the telecommunications sector for his entire professional career and has over 15 years of experience holding top-level positions with responsibility for technical areas. Served as Technology and Network Management Area Director at a leading telecom and was responsible for the development and expansion of one of the telecoms operators. PAWEŁ BIARDA, Management Board Member, Head of Sales and Business Development Paweł Biarda is in charge of NEXERA s product development and sales. He is an expert on the Operational Programme Digital Poland as well as the telecommunications and energy sectors, with over 20 years of experience. He has created and implemented strategies as well as business, product and commercialization models. PAWEŁ HORDYŃSKI, Management Board Member, Chief Financial Officer Responsible for NEXERA s finances. Paweł Hordyński spent over a dozen years managing the finances of some of the largest companies in Poland, having served as CFO at numerous companies with multimillion revenues, including state-controlled, private and WSE-listed businesses. DAVID LEVERETT, Management Board Member, Head of Engineering and Construction Responsible for NEXERA s network design and construction. Construction manager with years of experience in international markets. He has worked on projects located in the U.K., Egypt, Kazakhstan and Australia, among other places. He also has over a decade of experience in commercial property development projects in Poland. 5
NEXERA POPC PROJECTS The table below presents the number of schools and households in NGA white spots for each NEXERA POPC project. They will be provided with access to NEXERA FTTH network, co-financed by EU Funds. PLN 518,649,081.86 IS THE TOTAL VALUE OF EU SUBSIDIES RECEIVED BY NEXERA Area s and agreement s number Area Schools House-holds 3.6.28.55 POPC.01.01.00-28-0129/17-00 3.6.28.56 POPC.01.01.00-28-0130/17-00 3.6.28.54 POPC.01.01.00-28-0111/17-00 ełcki 141 11 631 olsztyński 308 26 882 elbląski 256 23 383 Total for warmińsko-mazurskie voivodeship 705 61 836 3.6.04.07 POPC.01.01.00-10-0116/17-00 3.6.04.06 POPC.01.01.00-04-0127/17-00 3.6.04.67 POPC.01.01.00-10-0117/17-00 grudziądzki 229 15 387 bydgosko-toruński 121 15 352 inowrocławski 197 13 116 Total for kujawsko-pomorskie voivodeship 547 43 855 3.1.10.19 POPC.01.01.00-10-0115/17-00 3.1.10.18 POPC.01.01.00-10-0114/17-00 3.1.10.17a POPC.01.01.00-10-0113/17-00 skierniewicki 211 19 268 sieradzki 270 30 556 piotrkowski A 163 19 475 Total for łódzkie voivodeship 644 69 299 3.3.26.52b POPC.01.01.00-26-0126/17-00 3.3.26.52a POPC.01.01.00-26-0125/17-00 3.3.26.53a POPC.01.01.00-26-0128/17-00 3.3.26.53b POPC.01.01.00-26-0119/17-00 kielecki B 172 34 714 kielecki A 160 25 545 sandomiersko-jędrzejowski A 167 17 937 sandomiersko-jędrzejowski B 262 29 436 Total for świętokrzyskie voivodeship 761 107 632 Total 2 657 282 622