DEUTSCHE BANK EUROPEAN TMT CONFERENCE

JIM MARSH, CHIEF EXECUTIVE OFFICER 10 SEP 2010

CABLE&WIRELESS WORLDWIDE GENERATING CASH

m
500 400 300 200 100 0 (100) (200) (300) (400) %

ARGIN % GROSS M

50% 40% 30%

DA EBIT

RGIN % EBITDA MA

20% 10% 0%

TRADING CASH FLOW

2006/07

2007/08

2008/09

2009/10

GROSS MARGIN FROM THE RIGHT AREAS

UK ENTERPRISE GLOBAL 22% 41% UK CARRIER 10%
16% 56% TRADITIONAL VOICE & LEGACY

28% IP & DATA

11% 16% UK MID MARKET UK PUBLIC SECTOR

HOSTING & APPLICATIONS

CUSTOMER GROUP

PRODUCTS

2009/10

1,075M
GM: 47%
3

UK ENTERPRISE OUR PRIMARY MARKET

UK ENTERPRISE GLOBAL 22% 41% UK CARRIER 10%

UK ENTERPRISE

MARKET MOVING IN OUR FAVOUR 4.3BN MARKET AND 19% SHARE IT BUDGETS GROWING 2.5% - GARTNER MANAGED SERVICE >50% VIDEO CONFERENCING GROWTH FIXED MOBILE CONVERGENCE
11% 16%

HOSTING / NETWORK INTEGRATION

UK MID MARKET UK PUBLIC SECTOR

2009/10

446M
GM: 53%
4

UK PUBLIC SECTOR BUILDING ON ENTERPRISE SUCCESS

UK ENTERPRISE GLOBAL 22% 41% UK CARRIER 10%

PUBLIC SECTOR

REAL CHOICE FOR GOVERNMENT SHORT TERM PAIN, MEDIUM TERM OPPORTUNITY 2.4BN MARKET AND 12% SHARE REAL DESIRE FOR COMPETITION SPECIFIC PRODUCTS FOR GOVERNMENT

11% UK MID MARKET 16%

UK PUBLIC SECTOR

2009/10

168M
GM: 59%
5

CARRIER LEVERAGES NETWORK ASSET MID MARKET, ACCESS TO NEW MARKETS

UK ENTERPRISE GLOBAL 22% 41% UK CARRIER 10%

UK CARRIERS

2009/10
111M, GM: 32%

SCALE AND STRENGTH BANDWIDTH DEMANDS INCREASING GREATER SHARE OF BACKHAUL MARKET NEW BROADBAND ENTRANTS >800 LLU FOOTPRINT

11% UK MID MARKET

16%

MID MARKET

2009/10
118M, GM: 49%
BT BUSINESS 51% THUS

COMMITTED TO THE UK MID MARKET

DATA RICH PRODUCT MIX

UK PUBLIC SECTOR

HIGH MARGIN BACKED BY UK NETWORK

GLOBAL CONNECTING CONTINENTS

GLOBAL 22% UK ENTERPRISE

CONNECTING CONTINENTS C.61B MARKET, 69 GLOBAL CABLE SYSTEMS <1% MARKET SHARE
41%

GLOBAL

DEMAND UP 60% ECONOMIC GROWTH ASIA DEVELOPING GROWTH AFRICA

UK CARRIER

10%

153 COUNTRIES DOUBLE RESILIENCE ON KEY ROUTES 2 NEW CABLE SYSTEMS (EIG, WACS) MSP ASSETS IN 26 COUNTRIES APOLLO CAPACITY UPGRADE ETHERNET IN EU AND ASIA

11% 16% UK MID MARKET UK PUBLIC SECTOR

2009/10

229M
GM: 42%
7

TELECOMS INDUSTRY TRENDS

INCREASING CRITICALITY

BANDWIDTH DEMAND

CLOUD

GLOBALISATION

1. INCREASING CRITICALITY
A LARGE UK PLC
CORE VOICE ADD SOME DATA LINKS FULL VOICE & DATA ESTATE RELATIONSHIP SALES FMC BROADBAND MANAGED HOSTING HOSTED APPLICATIONS

WINS

YEAR

1
BUILD TRUST MISSION CRITICAL SERVICE CONFIRM TRUST DEEPEN RELATIONSHIP EXPAND PRESENCE

DELIVER

APPROACH

2. BANDWIDTH DEMAND
200X INCREASE IN LAST 10 YRS FIXED CONSISTENTLY FASTER THAN MOBILE
FTTH 1,000,000 Bandwidth (Kbps) peak user rates

60,000 Global Bandwidth Demand per month ((PB) 50,000 40,000 30,000 20,000 10,000 1995 2000 2005 2010

Fixed Access
4G VDSL ADSL2+ 10,000 ADSL 1,000 100 10 1 1985 1990 1995 2000 2005 2010 2015 ISDN-BRI GPRS GSM 2G 3G

100,000

Mobile Access

SOURCE: CISCO 1 PB=10^15 BYTES

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3. CLOUD
Apps (SAAS) Platform (PAAS) Infrastructure (IAAS)

40 35 30 25 $B 20

Global Hosting Market 2007-2015F

31

37

Cloud

Virtualisation
24 19 15

Cable & Wireless Worldwide Offer

OUR FOCUS HIGHER VALUE

15 10 5 0 2007 2008 2009 10 7 8

12

Managed Hosting

2010

2011

2012

2013

2014

2015

Co-Location

Traditional Hosting

Cloud Hosting

SOURCE: OC&C
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4. GLOBALISATION
ENTERPRISES LEVERAGING GLOBAL FOOTPRINTS..

MARKETS ARE BECOMING INCREASINGLY GLOBAL

..ENTERPRISES HAVE NEED TO SECURELY JOIN THEIR OPERATIONS ACROSS CONTINENTS

153 COUNTRIES 69 CABLE SYSTEMS

TELECOMS HAS MOVED FROM AN INHIBITOR TO AN ENABLER

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CWW POSITION FOR THESE TRENDS

More than 50% of margin from Managed Services >70% of margin from strategic product set 74* of FTSE100 served

INCREASING CRITICALITY

BANDWIDTH DEMAND

UK's largest fibre network dedicated to business Moving UK core to 100GB optical capability Building on broadband footprint to deliver Ethernet

VIRTUALISATION

> 205,000 sq ft of data centre space in UK > 70% of hosting revenue from Managed Launched Cloud early adopters programme

GLOBALISATION

Increasingly serving UK MNCs globally 69 sub sea cable systems, c.500,000 KM Global Network Asia core region outside UK, Africa coming on stream Investing in global network, 2 new cables on stream in next 6 months

* As of March 2010
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