Capital Raising Presentation 4 July 2012 1 Vocus Communications - PowerPoint PPT Presentation

Capital Raising Presentation 4 July 2012 1

Vocus Communications Overview  Leading independent provider of wholesale and corporate telecommunications services in Australia and New Zealand, including: International internet (45% of Group revenue) (1) • • Voice (21% of Group revenue) (1) Data Centre and Cloud Services (18% of Group revenue) (1) • • Fibre and Ethernet (14% of Group revenue) (1)  Strong industry fundamentals and continued investment in network and sales force driving organic growth  Growth from successful acquisition and integration of 3 businesses since listing • Acquisitions of E3 Networks (Sydney and Melbourne) and PerthIX (Perth) created a successful national data centre business • Acquisition of Digital River Networks’ dark fibre assets formed base for rapidly expanding fibre services • Recently completed acquisition of Maxnet Limited, New Zealand based data centre operator and cloud provider  Focus on differentiated customer service proposition and expanded product offering, along with strategic acquisitions, has resulted in customer growth from 103 in March 2010 to 363 in March 2012  Underlying EBITDA growth of ~132% from June 2010 to $16 – 16.5 million in June 2012 (based on low-end of guidance) (1) Estimated contribution for FY12 2

Capital Raising Overview • Vocus is launching an underwritten institutional placement of 9.15 million shares (15% of issued capital) to raise approximately $14.9m (“placement”) • The placement is being offered at a fixed price of $1.63 per share − 15.5 % discount to the share price on 3 July 2012 ($1.93) − 14.7% discount to Vocus’ 5 day VWAP ($1.91) • Vocus is also announcing a non-underwritten share purchase plan at the placement price, offering $15,000 of shares per eligible shareholder to raise up to $7.5m • Vocus is undertaking the capital raising to fund existing capital expenditure requirements and provide financial flexibility for future growth − Vocus continues to consider potential acquisitions that would expand or complement its existing product set • Further detail, including timetable, can be found in the Appendix 3

Key Business Highlights  History of strong financial growth delivering shareholder returns supported by recurring annuity style revenue − Revenue growth of ~158% and underlying EBITDA growth of ~132% from FY10 to FY12 (1) − Combination of organic and acquisition growth, with organic new product growth accelerating in FY12 − Total shareholder return of ~286% since listing (2)  Well positioned to benefit from positive industry trends − Growth of all divisions underpinned by continuing data consumption by consumers and corporates − Exposure to trend of increasing outsourcing and well positioned to capitalise on growth of cloud market  Strong customer growth momentum underpinned by differentiated customer service proposition − Increased number of customers by 252% over the last two years (to March 2012) − Weighted average customer contract length increased from ~24 to ~26 months since 1Q11  Carrier neutral operator − Dark fibre only actively provided by two other operators − One of very few ‘ independent wholesalers ’ of IP traffic  Continued execution on clearly developed growth strategy − Considerable operating leverage from fixed cost base in IP transit and Fibre − Significant cross selling opportunities from broader product offering − Proven acquisition track record, and expanding fibre network and data centre offering based on customer demand − Well positioned to capitalise on NBN opportunities  Experienced board and management team overseeing growth − Balance of telecommunications industry, M&A and listed company experience (1) Using low-end of guidance (2) As at 3 July 2012 4

Experienced Board and Management David Spence James Spenceley Chairman CEO • More than 20 years Telco experience • More than 14 years experience in ISP/Telco industry • Experience in over 20 internet businesses • Previously designed and deployed the $300m COMindico • Former CEO of Unwired Ltd network (later to be known as Soul, now owned by TPG • Managing Director and CEO of OzEmail Telecom) • Chairman of the Board of the Internet Industry Association • Elected Board Member of the Asia Pacific Network Information • Currently a Director of AWA Ltd and ASX listed Hills Holding Ltd Centre Stephen Baxter Mark de Kock Independent Director Executive Director, Strategy • More than 18 years industry experience • More than 20 years industry experience • Co-founded PIPE Networks (now owned by TPG Telecom) and • Previously employed in Technical Management roles at Optus, was an Executive Director and Chief Technical Officer on listing Vodafone, Access Devices, HP (Tandem/Compaq) and • Started Adelaide ISP, SE Net (sold to OzEmail/UUNET) Andersen Consulting • Previously worked at Google Inc in California as a Technical Program Manager in the Network Deployment department Nick McNaughton John Murphy Independent Director Non-Executive Director • Established Blue Cove Ventures in 2007 • Founder and Managing Director of IWPE • Member of the start-up teams of software companies Allaire, • Director of Investec Bank (Australia) Limited and Chairman of the bank ’ s Investment Committee Soulmates Technology and Wily Technology • Non-Executive Director & Chairman at Simmersion Holdings Pty • Director of ASX listed Clearview Wealth Ltd, Consultant at Brightcove and Board Observer at Windlab • Former Director of ASX listed companies, Southcorp, Invocare, Systems Specialty Fashion, Fonezone, amongst others • Previously spent 26 years with an international accounting firm Jon Brett Richard Correll Non-Executive Director CFO • Experience as Director of a number of ASX listed companies, • Extensive experience in finance, media and communications including Techway, Kids Campus, Iocom, amongst others industries in the U.S., China, Europe and Australia • Formerly the Non Executive Deputy President of the NRMA • Previously held senior financial and general executive roles • Currently on the Board of several unlisted companies and a including CFO at Fox Sports Australia, Assistant to Managing Director of Investec Wentworth Private Equity (IWPE) Director at Austar, CFO at PocketMail Australia, Treasurer and Special Projects Manager at News Limited and Group Senior Manager at Ernst & Young 5

6 Product Overview

What We Provide and Where Extensive network reach, connecting Australia and New Zealand to the world Singapore Vocus Internet and Voice Vocus Domestic Ethernet Network Vocus Data Centres Vocus Fibre San Jose L.A. Hawaii Fiji Brisbane Perth Adelaide Sydney Canberra Melbourne Auckland Christchurch DR 7

International Internet Internet Revenue ($m) % Group Revenue (FY12E) • Operates Australia’s largest wholesale IP backbone after Telstra and Optus 25 • Provides internet access to ISPs and Telcos 35.9% CAGR Internet in Australia, New Zealand and the US 20 45% • Provides an internet offering to the Australian 15 corporate sector 10 • Indefeasible Right of Use (“IRU”) on Southern 5 Cross Cable • Doubled capacity in September 2011 to 0 FY10A FY11A FY12E meet increased demand • 31 Points of Presence (“POPs”) Key Internet Statistics • Internet products include: • Wholesale Internet FY11 FY12E Traffic Growth 128% 80% • Corporate Internet Total Customers 94 212 • Delivery of DSL, Fibre and Ethernet Number of Internet POPs 23 31 • Weighted average contract duration is ~24 months New Corporate Customers 0 30 8

Voice • Provides several services, including: Voice Revenue ($m) % Group Revenue (FY12E) • Call termination services 12 42.3% CAGR 10 • Porting traditional Voice numbers to VoIP for 8 ISPs 6 • Provision of wholesale phone numbers to 4 ISPs 2 Voice 21% • Voice network combined with the Fibre and IP 0 network should provide a strong value FY10A FY11A FY12E proposition and cost structure going forward • Capitalising on this opportunity will be a focus in FY13 9

Data Centre and Cloud Services • Operates 7 data centres across five cities, Data Centre and Cloud Services % Group Revenue (FY12E) including two in New Zealand (1) Revenue ($m) 10 • Offers leases on individual rack units or Data Centre 198.5% and Cloud private suites 8 18% 6 • Sells bundled connectivity, Data Centre and Could services 4 • Contracts typically 24 – 36 months, though 2 can be up to 10 years 0 FY10A FY11A FY12E • Customers charged monthly, either: • Per rack of equipment (including power) Summary of Data Centres • By caged floor area for large customers (power billed separately) Location Size Utilisation 897m 2 Sydney (SYD1, SYD2, SYD3a) 81% • Recently secured lease and additional power required to expand Sydney capacity by Melbourne 490m 2 100% 453m 2 (SYD3) (2) Perth 536m 2 93% • Also secured option for additional 420m 2 Auckland 72% 1,000m 2 of space (SYD4) which would increased existing capacity by 174% 128m 2 33% Christchurch (1) New Zealand (Auckland and Christchurch) data centres acquired as part of the purchase of Maxnet Limited Initial Stage Expansion of 98m 2 of the Sydney facility (S3a) expected to be complete by 30 June 2012 (2) 10