PRESENTATION. 23 AUGUST 2016 STRAIGHTFORWARD. CONTENTS. 1. FY16 - PowerPoint PPT Presentation

FY16 ANNUAL RESULTS PRESENTATION. 23 AUGUST 2016 STRAIGHTFORWARD.

CONTENTS. 1. FY16 RESULTS. 2. DIVISIONAL SUMMARY. 3. BUSINESS UPDATE. 4. APPENDICES. STRAIGHTFORWARD. 2

HIGHLIGHTS. FULLY INTERGRATED TELCO SERVICING HOUSEHOLDS AND CORPORATES STRAIGHTFORWARD. 3

FINANCIAL HIGHLIGHTS. A YEAR OF SIGNIFICANT GROWTH AND TRANSFORMATION STRAIGHTFORWARD. 4

HEADLINE RESULTS – REVENUE. STEP-CHANGE IN EARNINGS FROM ENHANCED SCALE • 830.8 • 481.0 • 349.8 M2 149.8 Vocus 92.3 66.9 • FY13 FY14 FY15 FY16 • 10% 7% 35% ² AU – Corporate AU – Consumer NZ – Corporate NZ – Consumer 48% STRAIGHTFORWARD. 5

HEADLINE RESULTS – EBITDA. STRONG DIVERSIFIED PLATFORM CREATED TO DRIVE FUTURE GROWTH • 215.6 • • 51.6 33.0 22.4 FY13 FY14 FY15 FY16 • STRAIGHTFORWARD. 6

EARNINGS AND DIVIDENDS. CONTINUING TO DELIVER STRONG RETURNS FOR SHAREHOLDERS • 29.9 • 17.4 16.1 • 11.5 • FY13 FY14 FY15 FY16 • 15.6 3.2 1.8 1.0 FY13 FY14 FY15 FY16 STRAIGHTFORWARD. 7

CASH FLOWS STRONG OPERATING CASH FLOW FROM QUALITY INFRASTRUCTURE ASSETS • Ope Operating Cas Cash Flo Flow w ($m ($m) 1 35.6 218% p growt wth over • FY1 5 42.6 30.6 1 5.3 FY1 3 FY1 4 FY1 5 FY1 6 Free Cash Fr Cash Fl Flow w ($m ($m) 37.8 244% p growth over r 1 1 .0 9.2 FY1 5 (1 .4) FY1 3 FY1 4 FY1 5 FY1 6 STRAIGHTFORWARD. 8

CAPITAL EXPENDITURE DISCIPLINED INVESTMENT IN LONG-TERM INFRASTRUCTURE • 89.0 • 30.9 19.3 17.6 FY13 FY14 FY15 FY16 • 29% 21% 19% 11% FY13 FY14 FY15 FY16 STRAIGHTFORWARD. 9

BALANCE SHEET. PRUDENT CAPITAL STRUCTURE WITH LIQUIDITY AND FLEXIBILITY • • - - • • ¹ • STRAIGHTFORWARD. 10

DIVISIONAL SUMMARY.

CORPORATE (AU). ANNUITY REVENUES FROM EXTENSIVE INFRASTRUCTURE NETWORK • • 137.1 9.5 127.6 • 37.0 28.2 M2 AU 15.1 Vocus AU FY13 FY14 FY15 FY16 4,037 2,624 3,647 2,356 3,315 2,120 1,270 1,048 687 585 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 STRAIGHTFORWARD. 12

CORPORATE (AU). INCREASE BUNDLING OPPORTUNITIES TO CORPORATE CUSTOMER BASE ¹ • 81.5 11.6 69.9 • 39.6 37.6 27.1 M2 AU • Vocus AU FY13 FY14 FY15 FY16 ¹ ¹ 47.7 132.4 3.3 44.4 99.1 M2 AU M2 AU Vocus AU 21.2 Vocus AU 18.6 11.6 15.6 8.7 7.4 33.3 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 STRAIGHTFORWARD. 13

CORPORATE (AU). ADDITIONAL SALES TEAM GROWTH TO CAPITALISE ON MOMENTUM 2,303 DIRECT EAST 56 SALES STAFF 1,389 WHOLESALE 1,312 1,151 42 SALES STAFF 761 Q4 / 15 Q1 / 16 Q2 / 16 Q3 / 16 Q4 / 16 • • DIRECT WEST 39 SALES STAFF • STRAIGHTFORWARD. 14

CONSUMER (AU). 55K ORGANIC GROWTH IN BROADBAND SERVICES IN FY16 ¹ ¹ 520 141 16 126 487 113 106 16 465 93 68 16 438 41 26 414 51 60 74 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 ARPU PU ($) $) $116 $116 $110 $110 $109 $109 $105 $105 $101 $101 ¹ 385 370 349 Amnet 178 178 173 170 167 NBN Bundled DSL Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 ARPU PU ($) $) $30 $30 $35 $35 $37 $37 $37 $37 $34 $34 ARPU PU ($) $) $68. $68.3 STRAIGHTFORWARD. 15

CONSUMER (AU). CONTINUED STRONG SALES MOMENTUM ACROSS DIVISION • 331 263 235 235 226 • 79 64 58 57 Net Adds 19 • Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 • 6.4% 5.2% 5.1% 5.0% • Dec-14 Jun-15 Dec-15 Jun-16 STRAIGHTFORWARD. 16

CONSUMER (AU). IMPLEMENTING STRATEGY TO IMPROVE CUSTOMER LIFETIME VALUE • Unified Un ed ag agen ent console Con ontact cen entre so solu lution • Provides a single customer • Seamless cross- view for agents channel customer interactions • Improved ability to cross- - • Improved workforce sell management • Simplified agent training • Best-in-class customer programs - routing and • Customer self- prioritisation CUS USTO TOMER service platform EXPE PERI RIENCE - • Data driven, customer centric marketing - • Strategic analytics to grow market share Data an anal alytics & • Actionable insights to - insig insights improve sales conversion & retention STRAIGHTFORWARD. 17

NEW ZEALAND. VERTICALLY INTEGRATED AND COMPETING IN ALL MARKET SEGMENTS • 145.5 • 86.6 • 50.7 58.9 29.1 23.4 M2 NZ Vocus NZ FY13 FY14 FY15 FY16 8% 8% Fibre & Ethernet Vocus – Corporate Internet Vocus – Consumer 23% 23% 38% 43% M2 – Corporate 50% 50% Voice M2 – Consumer Data Centre 19% 19% 17% 2% STRAIGHTFORWARD. 18

NEW ZEALAND. UFB ROLL OUT TO DRIVE GROWTH IN CONSUMER BROADBAND 192 187 186 27 16 21 113 118 129 72 60 14 52 UFB 48 DSL Bundled 4 41 DSL Naked Net Adds Jun-15 Dec-15 Jun-16 Dec-15 Jun-16 ARPU PU (NZD ZD$) $70 $70 STRAIGHTFORWARD. 19

NEW ZEALAND. LEADING CHALLENGER WITH NEXT GENERATION NETWORK

NEW ZEALAND. IMPROVED SCALE AND CAPABILITIES HAS INCREASED COMPETITIVENESS • • • • • • • • • • • STRAIGHTFORWARD. 21

BUSINESS UPDATE.

INTEGRATION UPDATE. AMCOM INTEGRATION NEARING COMPLETION - M2 TRACKING TO PLAN         STRAIGHTFORWARD. 23

NEXTGEN NETWORKS. THE MISSING PIECE IN VOCUS’ INFRASTRUCTURE NETWORK • NWC WCS Darwin • Cairns ASC Port Hedland • Geraldton • Brisbane Perth Sydney Adelaide Canberra • Melbourne Nextgen fibre RBBP fibre Third party capacity lease NWCS (development project) ASC (development project) STRAIGHTFORWARD. 24

GOALS & VALUES. NOT LIKE THE OTHERS STRAIGHTFORWARD. 25

KEY MESSAGES THE YEAR AHEAD…. STRAIGHTFORWARD. 26

CONTACTS. GEOFF HORTH INVESTORS CEO KELLY HIBBINS INVESTOR RELATIONS RICK CORRELL DL: +61 2 83169856 CFO M: +61 414 609192 DEBRA MANSFIELD CORPORATE COMMUNICATIONS MANAGER P: +61 2 8999 8999 E: INVESTOR@VOCUS.COM.AU WWW.VOCUS.COM.AU STRAIGHTFORWARD. 27

APPENDICES.

UNDERLYING EBITDA RECONCILIATION OF STATUTORY AND UNDERLYING RESULTS STRAIGHTFORWARD. 29

UNDERLYING NPAT RECONCILIATION OF STATUTORY AND UNDERLYING RESULTS • STRAIGHTFORWARD. 30

GLOSSARY OF TERMS UNBUNDLING TELCO TALK STRAIGHTFORWARD. 31

DISCLAIMER STRAIGHTFORWARD. 32