STR ICTLY CONF IDENT IAL

THE TRILLION DOLLAR SHORTFALL: INVESTMENT OPPORTUNITIESIN U.S. INFRASTRUCTURE

NOVEMBER 2017

MANAGING DIRECTOR, CARLYLE GLOBAL INFRASTRUCTURE OPPORTUNITY FUND

FERRIS HUSSEIN

Infrastructure Report Card

Sources: 2017 American Society of Civil Engineers' 2017 Infrastructure Report Card. World Economic Forum, “Global Competitiveness Report 2014-2015”.No assurance can be given that current market conditions and related trends will continue.

Infrastructure Funding Gap

For informational purposes only. No assurance is given that estimates will ultimately materializeSource: McKinsey & Co.: “Financing Change: How to mobilize private sector financing for sustainable infrastructure”, January 2016.Note: Water and Ag includes Wastewater. 3

$40

$27

$19

$7

Energy

Transport

Water & Ag

Telecom

Infrastructure Demand by Asset Class (2015-2030) Private Sector Plays a Vital Role

$2-3

$1-1.5

$1-1.5 $0.15-0.2 $0.05-0.1 $6

$0

$1

$2

$3

$4

$5

$6

CurrentInvestment

Governments Private Sector MultilateralDevelopment

Banks

OfficialDevelopment

Assistance

Total

$93T

$ Trillion (Constant 2010 $) $ Trillion (Constant 2010 $)Annual Spending

Source: Carlyle analysis and Capital IQ. Note: As of 6/5/2017. Aggregate figures of Chevron, Exxon Mobil, Total S.A, Eni SpA, Royal Dutch Shell plc, BP plc. No assurance is given that current market conditions and related trends will continue, or that any related projections will ultimately materialize. 4

Lower profits, higher debt yet dividends remain steady

Energy Industry Dilemma (Excluding Power / Grid)

$0

$4

$8

$12

$16

0

$60B

$120B

$180B

$240B

$300B

$360B

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Net Income Total Debt Dividend Per Share

Oil & Gas Companies’ Return on Capital (2003-2016)

• Global demand is expected to surpass 100mmbbl/d by 2025

• Oil & Gas companies have been forced to delay $2T in development projects since mid-2014

Oil & Gas is Here to Stay

Source: “Global Energy: The Future of Refining” Goldman Sachs (July 24, 2017). No assurance is given that projections will ultimately materialize.1 EV refers to electric vehicles; PHEV refers to plug-in hybrid electric vehicles.2 ICE refers to internal combustion engine vehicles. 5

Increasing by Nearly 25 Fold, Electric Vehicles Will Still Only Represent About 5% of the Total Road Fleet in 2030

Electric Vehicle Projected Market Share

Billions of Vehicles on the Road

99.7%99.3%

97.6% 94.8%

0.3%0.7%

2.4%5.2%

1.161.28

1.451.59

0.0

0.3

0.6

0.9

1.2

1.5

1.8

2017 2020 2025 2030

Billi

ons

EV/PHEV1 (mm)ICE Vehicles2 (bn)

3.51.15

9.01.27

34.81.42

82.71.51

Incremental Vehicles on the Road 2017 – 2030:

• ICE = +350mm

• EV = +79mm

There will be more internal combustion engine vehicles added than electric vehicles

Energy Consumption in the United States (1776 – 2015)

Source: Energy Information Administration (EIA).No assurance can be given that current market conditions and related trends will continue. 6

Sources: Airports Council International, “Policy Brief: Airport ownership, economic regulation and financial performance”. ACI inventory of privatized airports, 2016.No assurance can be given that current market conditions and related trends will continue. 7

Airports: U.S. vs Rest of World

Water Infrastructure Systems

8Source: American Society of Civil Engineers.No assurance can be given that current market conditions and related trends will continue.