OBAC Meeting - July 26

Transcription

1 OBAC Meeting - July 26 1

2 Agenda Zayo Overview Oregon Fiber Infrastructure Infrastructure Drivers Blockchain

3 OVERVIEW Zayo at a Glance OUR ASSETS OUR EXPERTISE PRODUCT MIX - % OF REVENUE* 11.5M 34k 40% Fiber Solutions (Cell & Dark Fiber) FIBER MILES BUILDINGS 3,655 26% Enterprise Networks (SD-WAN, MPLS, EMPLOYEES Cloud, & Internet) k 22% Transport (Wavelengths & Ethernet MARKETS ZAYO DATA ON-NET DATA 11% Colocation CENTERS CENTERS OUR TRACK RECORD $ ~$2.6B revenue ~$1.3B adjusted EBITDA * Mix excludes Allstream. Metrics for Mar 18q $1.1B invested equity since 2007 inception $8.6B equity value today; ~8x return 41 acquisitions for ~$6.7B NYSE: ZAYO Oct

4 Vision and Mission

5 ACQUISITION HISTORY 41 acquisitions since 2007 totaling ~$6.5B US Carrier CFS Regional Markets ** Acquisitions with assets in the Oregon Market 5

6 11.5M Fiber Miles 127,000+ Route Miles 51 zcolo Data Centers 391 Markets Served 6

7 Dense Metro and Regional Fiber SAN FRANCISCO PORTLAND - HILLSBORO San Francisco Metro Portland Metro SEATTLE - TACOMA Seattle Metro 7

8 Oregon Infrastructure

9 Fun History Quiz What was the distance of the Oregon Trail in miles from Missouri to Oregon?

10 Oregon Infrastructure

11 Oregon Infrastructure Key Metro Markets 1. Portland/Hillsboro 2. Eugene 3. Salem 4. Bend, Pendleton, Umatilla Key Long Haul (LH) Routing Design 1. Seattle/Portland/Bay Area 2. Portland to Umatilla New Construction 3. Umatilla to Reno New Construction On Net Facilities Stats Total On Net Buildings 2147 Buildings 1832 SC/FTT/MSC/POP 209 Pending 106 Network Stats Route Miles (RM) Total Owned RM 629 Owned Metro RM 120 Owned LH RM 509 Pending RM 772 Partner LH RM 838 Partner Metro RM 206

12 Portland/ Salem OR Existing UG Owned Existing Aerial Owned Existing Partnered Planned/ In Process

13 Eugene OR Existing UG Owned Existing Aerial Owned Existing Partnered Planned/ In Process 13

14 Long Haul Network Existing Owned Existing Partnered In Process 14

15 Infrastructure Drivers

16 Cloud Infrastructure Nx100 Gbps (Tbps) has become the sweet spot for interfaces. Enterprise A Enterprise Data Center Provider Port Public/Private Network 50+ Providers 250+ On ramps* Enterprise B *Increase of 100+ On-ramps in 9 months

17 Seattle (9) Cloud Infrastructure Footprint Highlights (Key Zayo Cloud Interconnects)* London (7) Portland (6) Toronto (5) New York (8) Paris (14) Frankfurt (10) SFC/ San Jose(21) Los Angeles (13) Denver (13) Chicago (9) Ashburn (16) Atlanta (7) Dallas (17) LEGEND Current Node *highlights of actual Zayo interconnects. Does not reflect all actual or possible interconnections. 17

18 Advanced Technologies and Smart Cities Technology convergence will revolutionize transportation, dramatically improving safety and mobility while reducing costs and environmental impacts Connected Vehicles Autonomous Vehicle (AV) Internet of Things Machine Learning Big Data Mobility on Demand Connected-Automated Vehicles Smart Cities Benefits Order of magnitude safety improvements Reduced congestion Reduced emissions and use of fossil fuels Improved access to jobs and services Reduced transportation costs for gov t and users Improved accessibility and mobility Source: US Department of Transport

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23 Blockchain

24 What is a blockchain? A blockchain is a decentralized, distributed and public digital ledger The implications Used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network. Bitcoin was the first recognized blockchain implementation. Why should we care? The implications of this technology are far-reaching and has the potential to impact many industries and use cases, in a similar fashion to the disruption the Internet caused. Here are just a few examples: Securing digital identity records Tokenizing real world assets on the blockchain Inter-organizational data management Automated governance Smart contracts For streamlining of clearing and settlement For automating regulatory compliance

25 What is Zayo s Thoughts on the Implication? Blockchain technology will change the way infrastructure providers deploy network infrastructure investment capital Data Centers and Mining Facilities One of the main implications to telecommunications infrastructure, is the way that data centers will be built and managed As more real world uses of blockchain become mainstream, the quicker we ll see a change in the way companies utilize data center infrastructure similar to that of mining facilities Think of Softwarization of networks Bandwidth Infrastructure Today, many blockchain protocols use very little bandwidth As these applications of the technology start to mature, the more bandwidth demand will be generated Telecommunication Protocols Similar to the Internet Protocol, new blockchain protocols will make our bandwidth routing more efficient and less expensive

26 How should legislation be formed to help? Colorado, Arizona, Wyoming, and California recently passed legislation recognizing blockchain transactions and contracts as legally enforceable agreements State level legislation should consider a focus on blockchain tech: Exempt blockchain companies from Money Transmitter laws Define state security laws to fully incorporate crypto-assets Utility Tokens are commonly categorized as securities and stifle innovation Define whether or not Crypto assets are taxable as property or something more similar to rare metals or cash Introduce legislature to recognize blockchain records as legitimate corporate records, shareholder identification (token holder) by blockchain addresses, and recognize transaction signatures as shareholder votes in private/public enterprise settings