Next Layer OverviewTAKING THE CLOUD TO THE NEXT LAYER

Investor

Presentation

December 2012

4CONFIDENTIAL

Paired Strategic Locations

• High-demand, urban colocation facilities bolstered by secondary facilities for disaster

recovery

Robust IP Network

• Immediate market presence via proprietary, well-established regional and national 10 Gig

backbone and multiple POPs

Scalable Growth

• Well-designed existing facilities and targeted expansion in new locations support organic

growth of established monthly recurring revenues

Attractive Margins

• EBITDA margins of 45% or more with strong revenue growth

Executive Summary

Next Layer was created to focus exclusively on Data Center Services

One network connection to all products

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Hired Management and Industry Sales team in 2011 and 2012

Strong IT Industry Background

Focused on Growing Services to Corporate Canada

Maintaining existing Carrier and Content Provider relationships

Strategic Focus

• Creating the ALL Canada Cloud

• Targeting a roll up of value added Colo, Cloud, Managed and IT Services

• Developing more Sites in Canada than anyone else

• Lower Latency for Service access

• Faster Content Delivery

• Video

• Data

Executive Summary

Next Layer formed in 2011 carved out from Navigata Communications 2009, Inc. (NC09)

One network connection to all products

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Calgary

4,100 sq ft of colocation space

Private data suites available

92 rack capacity

Offering multiple carriers with

fiber connectivity

Centrally located in downtown

Calgary

Lease term: August 2015

Toronto

2,100 sq ft of colocation space

Private data suites available

65 rack capacity

Offering multiple carriers with

fiber connectivity

Operating centre adjacent to

Adelaide Street CO

Lease term: May 2015

Vancouver 1

1,500 sq ft of colocation space

Private data suites available

33 rack capacity

Offering multiple carriers with

fiber connectivity

Centrally located on the

Vancouver harbor

Lease term: April 2017

Vancouver 2

5,400 sq ft of colocation space

Private data suites available

102 rack capacity

Offering multiple carriers with

fiber connectivity

Adjacent to Vancouver “Carrier

Hotel” at 555 West Hastings

Lease term: March 2017

Current Data Centers

Note: Vancouver 1 and Toronto leases include a five year option to renew; Vancouver 2 and Calgary leases can be renewed subject to pricing discussions.Next Layer has occupied each of its four facilities for more than 10 years.

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Data Center Capacity

2012 2012 2013 2014

Data Centers Current Rack

Capacity

Additional Potential Capacity

Total In Service 2012

Sell 2012

Sell 2013

Sell 2014

Vancouver 1 33 40 31 17 25 0

at capacity

Vancouver 2 102 0 93 9 0

at capacity

0

at capacity

Toronto 65 0 60 5 0

at capacity

0

at capacity

Calgary 92 100 85 24 33 33

Kamloops 200 0 50 50 50 50

Total 492 140 319 105 108 83

Current

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Background – Transition

Investors acquired Navigata Communications 2009, Inc.(now called Cascade

Divide Enterprises, Inc.) from Sasktel in Dec, 2009

55-year operating history with critical systems already in place

Strong national and regional networks operational support

Gold standard customer list includes:

• BC Provincial Government, BC Hydro, CN, Spectra, Google, HP, SaskTel,

Tata Communications, Hutchison Global Communications, P&G, Rogers,

TELUS, and Allstream

• Investors sold the Core operations of Navigata Communications 2009, Inc. to

Teliphone, retaining ownership in Next Layer and certain other assets

• Maintain access to all network services of Teliphone on MFN

• Maintain shared use of certain facilities on favorable terms

• Renamed Navigata Communications 2009, Inc. to Cascade Divide Enterprises, Inc

Next Layer enjoys "most-favored nation" (MFN) access to national data network

and extensive regional data network in Western Canada

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National Network

10 Gig National Backbone

Local Access in 200 Canadian

& US Cities

Copper to Ethernet to Fiber

Low latency and high security

Connections to all Major

Carriers to provide vendor

neutral access

Teliphone/SaskTel relationship

results in significantly lower

costs to Next Layer

Our National Competitive Advantage

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2011 – 2013 LQA EBITDA Buildup

LQA EBITDA

1,871 1,715 1,518 1,551 1,921

1,645 1,844

2,834 2,841

4,167

5,735

6,905

1,308

1,434 1,514

1,571

1,629

1,686

18

71 91

94

114

126

$1,871 $1,715

$1,518 $1,551

$1,921 $1,645

$3,171

$4,339 $4,446

$5,832

$7,477

$8,717

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

$9,000

Q1/11A Q2/11A Q3/11A Q4/11A Q1/12A Q2/12A Q3/12E Q4/12E Q1/13E Q2/13E Q3/13E Q4/13E

Next Layer Base Toronto Winnipeg

(CAN$ in thousands)

1,871 1,715 1,518 1,551 1,921

1,645 1,844

2,834 2,841

4,167

5,735

6,905

1,308

1,434 1,514

1,571

1,629

1,686

18

71 91

94

114

126

$1,871 $1,715

$1,518 $1,551

$1,921 $1,645

$3,171

$4,339 $4,446

$5,832

$7,477

$8,717

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

$9,000

Q1/11A Q2/11A Q3/11A Q4/11A Q1/12A Q2/12A Q3/12E Q4/12E Q1/13E Q2/13E Q3/13E Q4/13E

Next Layer Base Toronto Winnipeg

(CAN$ in thousands)

Pro Forma

Total Debt

Debt/LQA EBITDA

$17,041 $17,041 $17,041 $17,041 $17,041 $17,041

5.4x 3.9x 3.8x 2.9x 2.3x 2.0x

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Top 10 Customers

% Mix Initial Contract Current Customer Colocation Bandwidth/Other Date MRR

Customer A 89% 11% 09/04/09 $ 35,900

Customer B 84 16 03/21/02 20,234

Customer C 90 10 06/28/07 16,780

Customer D 100 0 09/02/09 15,559

Customer E 8 92 11/01/06 15,004

Customer F 46 54 12/25/09 13,878

Customer G 27 73 11/18/11 13,687

Customer H 17 83 12/09/08 12,698

Customer I 82 18 10/01/11 12,321

Customer J 91 9 11/30/05 11,520

Total $ 167,581

Kamloops Data Center

Ledcor – 360Networks built a Regen Site in Kamloops to serve their cross Canada network in early 2000…

Bell acquired the site in 2005, and today uses the site for their fiber

Next Layer has entered into an agreement to purchase the building, and has started to upgrade the site

The facility has 10,000 sq feet, and can handle over 350 racks

The facility is on the City of Kamloops and Cascade Divide’s fiber network

The Kamloops site was intended to provide mirrored backup to carrier and corporate clients, and is connected with gigabit capacity

The building costs is $2.8 mil, $400k has been paid, and the building appraised at $3.2 mil. Another $1.7 mil is owed to Schneider/Tier 5 for equipment that is at the site.