1. Telco Financial Analysis May, 1993

2. XXXX/ Gemini 12/6/2015 - 2 - XXXX/Gemini CP/PD A&D - Confidential Approach Evaluated financial aspects of XXXX by measuring against industry competitor and best in class positions Analyzed XXXX specific financial information available for 1993 and XXXX formation Reviewed critical success factors and 1993 goals including, among others, XXXX Silver Bullets and Project Prioritization criteria Reviewed budgeting process and key performance indicators Reviewed cost components of the business Identified “Next Steps” for funding and Business Case development

3. XXXX/ Gemini 12/6/2015 - 3 - XXXX/Gemini CP/PD A&D - Confidential Today, XXXX & The Alliance Generate $14B in Owner Company Revenue We shape and maintain the industry Source: 1992 Annual Reports XXXX

4. XXXX/ Gemini 12/6/2015 - 4 - XXXX/Gemini CP/PD A&D - Confidential In Turn, XXXX Accounts for Only 5% of Owner Costs Source: 1992 Annual reports 1992 Owner Company Product Expence $10.8B 1993 Owner Company XXXX Funding $492MM Ongoing market support Backhaul Billing R&D Program Cost Maintenance Adv & Promo Equipt. Service Provisions Exceptions XXXX PD&I 5%

5. XXXX/ Gemini 12/6/2015 - 5 - XXXX/Gemini CP/PD A&D - Confidential In 1998, the Alliance Seeks to Generate $18B in Revenue XXXX products are the base for this aggressive growth Source: Nine 1992 Owner Company Annual Reports Annual Growth Rate in Revenue ($ Billions) 2% 2.5%0% 4.2% 168% of most recent historical year

6. XXXX/ Gemini 12/6/2015 - 6 - XXXX/Gemini CP/PD A&D - Confidential Competitors Are Taking Aim At Alliance Core Businesses Potential Impact of Market Erosion on Revenues Revenue@ 5%@ 15% 1993$14B 1998$18B 6 Yr.$84B

7. XXXX/ Gemini 12/6/2015 - 7 - XXXX/Gemini CP/PD A&D - Confidential Current Project Funding Suggests an Investment Strategy That Is Narrow and Short Term 1993 XXXX Portfolio Revenue by Service Total Revenue $537MM Ability to maximize future revenue is limited by our portfolio structure Source: PMO database; Gemini analysis 1993 XXXX Portfolio Investmment by Service Total Investment $351MM Voice 68% OSS 15% Planning 8% Marketing 7% Other 2% Voice 72% Wireless 1% Marketing 8% Data 6% OSS 4% Other 9%

8. XXXX/ Gemini 12/6/2015 - 8 - XXXX/Gemini CP/PD A&D - Confidential Contributions, Funding and Project Costs are Balanced NEWFOUNDLAND TEL MT&T ISLAND TEL NBTEL BELL MST SASKTEL AGT BC TEL NOR. TELECOM % DND Bell Canada clearly drives XXXX programming Source: XXXX White Book 5/93; XXXX Management Presentations; XXXX Program Components Owner Company Contributions Projected Project Funding Projected Project Costs Total Contributions $492MM Total Funding $480MM Total Expense $492MM

9. XXXX/ Gemini 12/6/2015 - 9 - XXXX/Gemini CP/PD A&D - Confidential Labor, R&D Contract Costs and ODA Drive XXXX Expenditures 1993 XXXX Expense $528MM 1993 XXXX Controllable Expense $501MM 95% of expense is controllable Source: XXXX 1993 YTD Income Statement ADMINISTRATIONPROJ. CONT. BELLEXT. PRGM SERV.REAL ESTATEDEP. FURNISHINGS DEP. LAB EQUPT.CONTRACTAD & PROMOR&D MATERIALR&D CONTRACT TRAVEL/MISC.CUSTOM FUNDINGRESERVEODAPMG-8 TELECOMPENSIONSDATA PROCESSING/ISSALARY

10. XXXX/ Gemini 12/6/2015 - 10 - XXXX/Gemini CP/PD A&D - Confidential 50% of XXXX Employees Participate in The Product Development Process Original projections of 64% suggest higher support requirements Assessment & Feasibility Development Standardization Deployment & Use Executive Leadership And Vision Culture Communications Roles & Responsibilities Strategic Alliances/Development Partnerships Owner Management Concept Vision Planning Fit Operation & Maintenance Support Viability IntroductionDesignTestCheckout & Installation Requirement s Performance Economics Specifications Organization Structure Performance Measurements Systems Financial Service/Support Groups Engineering and Research Marketing (Domestic and International) Business Planning and Support Supporting Operational Systems Rates and Policy Implementation 0.16% $0.26 2.28% $3.9 6.38% $10.8 0.99% $1.6 0.47% $0.78 0.62% $1.1 2.49% $4.1 7.0% $11.8 9.65% $16.3 Aggregate PD&I:48.91% Aggregate Support:48.76% Other: 2.33% * 1928 of 2002 employees were found (3% are unaccounted for) ** Average cost of employee = $87k, total cost of employees is $168.5MM = % of employees in segment* = employee cost per segment ($MM)** 21.06% $35.5 10.01% $16.9 20.07% $33.8 18.83% $31.7 Portfolio Value $630MM+

11. XXXX/ Gemini 12/6/2015 - 11 - XXXX/Gemini CP/PD A&D - Confidential Our Funding/Budgeting Process is Disconnected Bottom Up XXXX Budget Process Top Down Owner Company Contribution Strategic Intent & Portfolio GAP A top-down process allocating funds via strategic intent and portfolio approach should connect the process

12. XXXX/ Gemini 12/6/2015 - 12 - XXXX/Gemini CP/PD A&D - Confidential Key Performance Indicators & Measures Are Moving Targets Clear, concise performance measures must be determined Formal Measures Ability to make budget Informal Measures Contribution to owner revenues XXXX portfolio NPV Prioritization of Projects Project Measures Cumulative NOR Probability of success Profitability of markets/services Contribution to service quality 5 year average market growth rate Cumulative cost savings/NPV Silver Bullets Break even time Strategy/Portfolio mix

13. XXXX/ Gemini 12/6/2015 - 13 - XXXX/Gemini CP/PD A&D - Confidential Current State of Business Raises Concerns With XXXX’s Ability to Support These Owner Company Challenges A $36M gap between funding and project expense still exists Additional over-runs in excess of $25M were identified Underspending on key programs is a key issue Measures and key performance indicators are unclear The budget process is disconnected There is a lack of competitive focus and strategic direction

14. XXXX/ Gemini 12/6/2015 - 14 - XXXX/Gemini CP/PD A&D - Confidential A Combination of Expense Reduction and Revenue Enhancement Is Required to Achieve Our Mandate Procurement Management Portfolio Rationalization Project Mix Reduce Cycle Time Reallocate Resources Eliminate Duplication Increase Efficiency & Effectiveness Culture Communication Organization Structure Performance Measurement Systems Effective Decision Making Executive Leadership & Vision 1998 1993 XXXX must take steps to transform its business

15. XXXX/ Gemini 12/6/2015 - 15 - XXXX/Gemini CP/PD A&D - Confidential Next Steps Complete analysis diagnostics area probes and functional studies Evaluate findings and identify strengths and opportunities Assess/impact of findings across XXXX Communicate conclusions throughout XXXX

16. XXXX/ Gemini 12/6/2015 - 16 - XXXX/Gemini CP/PD A&D - Confidential XXXX Funding is Not in Line With Competitors and Best Practice R&D Groups XXXX must find other ways to compete Source: 1992 Annual Reports, Goldman Sach Investor Surveys, Gemini analysis 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00