ASX Announcement

28 September 2018

The Manager Company Announcements Office Australian Stock Exchange Limited Level 4, 20 Bridge Street NSW 2000

Re: INVESTOR PRESENTATION – SEPTEMBER 2018

Pacific Star Network Limited (PNW) is pleased to provide this investor presentation.

The presentation includes FY19 Underlying EBITDA guidance of between $8.75-9.25 million (refer to Page 28).

For further information, please contact:

Craig Hutchison CEO and Managing Director – Ltd (03) 8825 6600

Pacific Star Network Limited | ABN 20 009 221 630 | P (03) 8420 1116 | pacificstarnetwork.com.au

Level 5, 111 Coventry Street, Southbank 3006

[ DRAFT ]

Investor Presentation September 2018 Agenda. [ DRAFT ]

Business Overview

Operational Review

FY18 Financial Results

Outlook

Key Personnel

1 [ DRAFT ]

Business Overview Overview. [ DRAFT ]

We are a sports media and entertainment business connecting brands to fans with highly engaging content over multiple media platforms and focused on our ‘Whole of Sport’ strategy

We are building our ‘Whole of Sport’ offering for audiences and national brand partners led by a focus on radio platforms, regional geographies and sport content

We operate three broad business divisions - Broadcasting: distributing our own sports and entertainment-based content over multiple media platforms including our owned radio platforms and supplied radio platforms

- Publishing: producing and distributing sport-based publications

- Complementary Services: sport and entertainment-based events and services (talent management, television production, boutique creative agency) to extend the reach of brands to fans

Our business model is predominantly focused on generating advertising-based revenue by delivering our national brand partners’ stories to our audiences

3 Business Model. [ DRAFT ]

We invest in content and media distribution platforms, to connect our brand partners with relevant audiences, driving advertising based revenues

We distribute our We invest in ‘content We create exclusive We connect our content over multiple enablers’ content brand partners to fans media platforms

- the ingredients to our content - highly engaging and - a radio-led strategy with - leveraging our content to exclusive content with a our owned radio platforms integrate brand partners Multi-year radio broadcast genuine connection to and supplied radio platforms with our audiences to rights to premier Australian and audiences generate advertising international sporting codes revenues

High profile talent

State-of-the-art production infrastructure

Supported by Complementary Services – talent management, events and entertainment services which extend the reach of brands to fans

4 Content Enablers: Sport Broadcast Rights[ DRAFT ]

We have a track record of successfully developing, managing and monetising multi-year commercial radio broadcasting rights with premier Australian and international sporting codes

Australian League (AFL): 2017 – 2022 over regional radio markets (exclusive) and two games per weekend over all key metropolitan radio markets

National (NRL): 2018 – 2022 season over regional radio markets (exclusive) and two games per weekend over all key metropolitan radio markets

Football Federation of (A-League): 2017/2018 - 2022/23 season exclusivity over all metropolitan and regional radio markets (master radio rights holder)

Cricket Australia: 2018/19 – 2023/24 Big Bash League into capital cities and regionally (exclusive everywhere except ), and Test matches (non- exclusive) and syndication of International matches produced by Macquarie Media Limited into regional radio markets (exclusive)

5 Content Enablers: Sport Broadcast Rights[ DRAFT ]

We will engage with other premier Australian and international sporting codes for additional multi-year broadcast rights partnerships to expand our ‘Whole of Sport’ offering

Melbourne United: radio broadcasting of all home, away and finals games (exclusive)

National Football League (NFL): 2018 - 2019 season radio broadcasting of one game a week, in addition to the 2019 Super Bowl LIII and International Series Games

Racing Victoria: 2018 radio broadcast of 18 race events including marquee Spring Carnival race days – Cox Plate, Victoria Derby, and VRC Oaks

6 Content Enablers: Talent and Production[ DRAFT ] Infrastructure

Our unique and exclusive content is supported by an investment in high profile talent and state-of-the-art production infrastructure

We source high profile sport and entertainment talent with expertise, charisma and strong metropolitan and regional affiliations to deliver highly engaging content - AFL talent features premiership players and coaches, AFLW stars, Brownlow Medallists, All Australian players and Hall of Fame inductees - NRL talent includes some of rugby league’s legends, stalwarts and high profile former players - talent comprises the ‘1116 SEN XI’ spearheaded by and Simon Katich - Our live sport broadcasting is supported by our Chief Sports Caller, and regular sports commentators Anthony Hudson and Jack Heverin

We have invested in state-of-the-art radio production infrastructure including studios in Melbourne (five), Adelaide (one), Perth (one), Sydney (one), Tweed Heads (one), and one fully equipped television production studio (Melbourne)

7 Exclusive Content. [ DRAFT ]

We leverage our ‘content enablers’ to produce unique, highly engaging and exclusive content that has a genuine connection with our audiences, suitable for multiple media platforms

We produce 41 radio shows and over 650 hours of radio content weekly - Live broadcasting of AFL, NRL, A-League, Cricket, Melbourne United and NFL games leveraging our sport rights broadcasting partnerships - Programming to compliment our live broadcasting, with shows such as Sportsday, Off The Bench, The Drivers Seat and Reel Adventures, covering multiple sports including Women’s Footy, lawn , horse racing, golf, motorsports and fishing. On our own radio platform 1116 SEN, our shows are built around identities such as , , Gerard Whateley, Andy Maher, Kevin Bartlett and John Rothfield

We produce sport-based television content which includes coverage of the AFLW League, local and country AFL news, AFL trade and draft activities, country horse racing and live lawn bowls events

Our online content includes live broadcasting of our sports rights broadcast partnerships, NAB AFL Trade Radio and sport and entertainment podcasts

8 Distribution Platforms. [ DRAFT ]

Our content distribution strategy is radio-led and comprises owned platforms and broadcast partners’ networks

We own two Melbourne based AM commercial broadcasting licenses - 1116 SEN: Melbourne’s ‘Home of Sport’ with 24/7 sports content on 1116 kHz AM - SEN+: drives an additional live sports agenda to leverage existing radio broadcast rights and content partnerships on 1377 kHz AM

Our radio footprint provides distribution to almost 95% of the country

We are actively assessing radio platform ownership and broadcast partner opportunities to expand our radio reach and leverage our broadcast rights and content partnerships

9 Distribution Platforms: Print, Television, In[ -DRAFT ] Stadium and Online

We supplement our radio-led content distribution strategy with other media platforms including print, television, in-stadium and online

Our print distribution represents our recently acquired AFL Publishing business, responsible for numerous football related publications, with an annual audience of 987,0001

Television distribution includes access to telecast times and geographies pursuant to agreements with Channel 9 (Victoria, and Western Australia) and Southern Cross Nine (Victoria). Including assets in Victoria (Off The Bench TV, Future Stars, The Trade Table & Women’s Footy), South Australia (Footy SA, The Trade Table & Women’s Footy), Western Australia (Footy WA, The Trade Table & Women’s Footy)

We have in-stadium advertising (LED signage and big screen) and hospitality inventory at MCG (Melbourne), Marvel Stadium (Melbourne), Optus Stadium (Perth), and GMHBA Stadium ()

Our online platforms include - Websites: sen.com.au, aflnation.com.au, nrlnation.com.au and myfootballnation.com.au - Podcasts: The Sounding Board and Don’t Shoot the Messenger - Online: NAB AFL Trade Radio

1. Total 2017 circulation 10 Connecting Brands to Fans. [ DRAFT ]

Our business model is predominantly focused on generating advertising-based revenues by delivering our national brand partners’ stories to our metropolitan and regional audiences

National top-tier brands are our starting point and connecting them to relevant regional and metropolitan audiences is our focus

We use our exclusive content to integrate brand partners with audiences, and generate advertising revenues (traditional spots, in-segment, naming rights, competition sponsorship)

Our ‘Whole of Sport’ offering provides brand partners with additional audience touchpoints – unique end-to-end solutions, from community to grassroots, to the incredible match-day environment, on top of all the broadcast and content opportunities that sit around it

We expect additional enquiry from our brand partners as we expand our ‘Whole of Sport’ offering and they become more familiar with the commercial proposition our solutions provide

11 Complementary Services. [ DRAFT ]

Our ‘Whole of Sport’ offering is rounded out with complementary events and entertainment services to extend the reach of brands to fans

Talent Events Creative TV Production Management Services

Boutique and Exclusive access Boutique creative Dedicated TV exclusive for individuals agency with production representation of and corporate extensive services to both media groups to the experience in broadcasters professionals biggest and best developing and and brands, including events and managing brand utilising purpose presenters, experiences on communications built state-of-the- broadcasters, the planet across all art TV studios journalists, sports including the touchpoints professionals and Super Bowl and including print, entertainers Kentucky Derby television, digital, radio and social media

12 [ DRAFT ]

Operational Review Crocmedia Merger: Rationale [ DRAFT ]

We successfully completed the merger with Crocmedia on 29 March 2018

Expanded our ‘content enablers’ including multi-year sports broadcast rights, high profile talent and production infrastructure - further expanding our exclusive content offering

Enlarged our distribution footprint to almost 95% of the country

Enhanced our value proposition to brand partners with additional content and audience touchpoints, extending their reach to fans

Meaningful corporate and financial logic – synergies, all scrip transaction provided shareholder alignment, improved capital market access, strengthened balance sheet, and an attractive platform to assess organic and acquisitive growth opportunities

14 Crocmedia Merger: Accelerated Synergies[ DRAFT ]

Accelerated integration initiatives have resulted in implementation of merger cost synergies within three months of completion, well ahead of plan

Accelerated implementation of $3.0 million in identified cost synergies, effective 31 August 2018, was driven by numerous operational initiatives: - consolidated sales teams, broadcast operations and talent, and administrative functions - centralised head-office employees into a single location - eliminated duplicated costs including office leases - implemented best-of-business practices group-wide

Cost synergies have allowed reinvestment into organic revenue growth initiatives to support future revenue growth initiatives (discussed on following pages)

15 Revenue Initiative: Expanded Multi-year[ DRAFT ] Radio Broadcast Rights Partnerships

We are well placed to expand our ‘Whole of Sport’ offering and pursue multi-year broadcast partnerships with other premier Australian and international sporting codes

In 2018 we expanded our commercial radio broadcast rights partnerships with premier sporting codes - NRL broadcast partnership for the 2018 – 2022 seasons - Cricket Australia broadcast partnership for six years - Melbourne United club broadcast partnership for all home, away and finals - NFL broadcast partnership for the 2018 and 2019 seasons

Merger cost synergies realised in FY18 have been reinvested into resources to support new rights partnerships

Monetisation of broadcasting rights is expected to improve as: - sales teams have increased sales ‘runway’ and become more familiar with available content - audiences become familiar with additional programming content - brand partners become familiar with the unique content offering and commercial proposition

16 Revenue Initiative: Broadcasting Live Sport[ DRAFT ] Events

We expanded into live commercial radio and television broadcasting of high profile premier Australian and international sporting events

Crocmedia appointed Gerard Whateley as Chief Sports Caller in January 2018, supporting the expansion into live commercial radio broadcasting of high profile sporting events

Recent live broadcasts have included coverage of the 2018: - South African Cricket Test series between Australia and South Africa - National Football League Super Bowl LII in Minnesota, USA - Masters Tournament from Augusta National Golf Club in Georgia, US - FIFA World Cup in Russia

We have recently secured: - a commercial radio broadcasting partnership with Racing Victoria to broadcast 18 race events in 2018 including marquee Spring Carnival race days – Cox Plate, Victoria Derby, Melbourne Cup, VRC Oaks - a two year media production partnership with Bowls Australia to produce exclusive radio and television content, including live and post-produced television content for SBS and Australia ( and Bowls Premier League) and broadcasting of our ‘Without Bias’ radio program on our 1116 SEN platform

17 Revenue Initiative: Launch of SEN+ [ DRAFT ]

We launched SEN+ on our second radio platform 1377 kHz AM, to drive an additional live sports agenda and leverage existing radio broadcast rights and content partnerships

SEN+ features almost exclusively sports content, including: - dedicated VFL calls - almost 100 A-League matches, becoming the dedicated radio home of national A-League matches - Melbourne United content and matches - cricket and racing content

We will engage with premier leagues and codes on additional broadcast opportunities with community and women’s sport as key focus areas

18 Revenue Initiative: Expanded In-stadium[ DRAFT ] Presence

We expanded our in-stadium inventory at major sporting stadiums across Australia

In order to increase our reach, we have invested heavily in club, stadium and other related assets around a series of venues across the country

All of these assets are on-sellable and allows us to drive broader revenue for our business

In-stadium advertising (LED signage and big screen) and hospitality inventory at MCG (Melbourne), Marvel Stadium (Melbourne), Optus Stadium (Perth), Adelaide Oval and GMHBA Stadium (Geelong)

19 Strategic Investment: AFL Publishing [ DRAFT ]

We have acquired the AFL Publishing business, responsible for numerous football publications, including the iconic AFL Record - the official match program for more than 100 years

The AFL Publishing business is responsible for publication of the iconic AFL Record, AFLW publications, the AFL Season Guide, JLT Community Series, AFLX, International Rules Series and the AFL Finals and Toyota Grand Final Editions

The acquisition expands our ‘Whole of Sport’ offering and complements our suite of existing AFL assets, provides exciting opportunities to integrate brand partners across multiple touchpoints while connecting footy with fans and deepens our AFL association

The total $8.1m purchase price comprises $5.85m cash payable in three instalments over 12 months1,2 plus $2.25m prepaid advertising to be retained by the AFL

Incremental EBITDA from the acquisition is anticipated to be in the region of $3.0-3.3m per AFL season representing a 2.5-2.7x multiple

1. Payable $2.38m on completion, $1.73m on 31 October 2018 and $1.73m on the anniversary of completion 2. The Company will be entitled to profits from the business from round 9 of AFL season 2018, with the quantum of these profits to be deducted from the second purchase 20 price instalment payable on 31 October 2018 Strategic Investment: AFL Publishing [ DRAFT ]

Australia’s Oldest Sporting Publication

LONG STANDING HISTORY YEAR-ROUND PUBLICATION CIRCULATION •106 years of production •198 Home & Away editions •Average weekly produced each year circulation of 35,000 •Renowned reputation copies per week as part of the AFL •Bespoke publications cater Match Day experience for the whole AFL calendar •Total 2017 circulation of 987,000 •High keepsake value

MULTICHANNEL DISTRIBUTION A UNIQUE AUDIENCE •Connected to all 17 AFL •69% of readers are venues reaching our fans male, 31% female at every game •Majority of readers are •Bespoke retail products aged between 25-49 released through years newsagents and major sales outlets

21 Strategic Investment: Melbourne United[ DRAFT ]

We have acquired of a 25% shareholding in Australia’s premier National Basketball League club, Melbourne United

The acquisition gives us greater access to brands and products and this partnership was secured prior to the NBL national television expansion announcement in 2018

Melbourne United has risen to the top of Australian basketball in just four years and is on its way to becoming one of the leading Australian sports and entertainment franchises

The acquisition expands our ‘Whole of Sport’ offering, providing brand partners additional audience touchpoints – a unique end-to-end solution from community and grassroots, to the incredible exciting match day environment

Provides new and unique revenue opportunities, including live commercial radio broadcasting of all Melbourne United’s home, away and finals games

The acquisition smooths the seasonality of our broadcasting revenue streams and complements our existing radio broadcast rights partnerships with the AFL, NRL, A-League, Cricket Australia, NFL and Racing Victoria

22 Strategic Investment: Melbourne United[ DRAFT ]

Key Statistics

23 Strategic Divestment: Morrison Media [ DRAFT ]

We divested our non-sport publishing business, Morrison Media, following a strategic review of our publishing assets and related opportunities

Morrison Media was responsible for non-sport related publications including Frankie Magazine and Smith Journal

Aligns with the expansion of our ‘Whole of Sport’ offering by divesting non-sport related publications

Total sale consideration was $2.4 million cash less working capital adjustments payable 70% on settlement and 30% on 30 June 2019

24 [ DRAFT ]

FY18 Financial Summary FY18 Financials. [ DRAFT ]

Reported results comprise a 12-month PNW and three-month Crocmedia contribution, partial realisation of merger cost synergies and investment in organic revenue growth initiatives

Reported FY18 Pro forma ($ million)1 Pro forma ‘Run Rate’: FY18 FY17 'Run Rate' - assumes full 12-month FY18 contributions from Revenue PNW and Crocmedia Broadcasting 24.7 15.3 42.4 - includes re-investment of realised FY18 Complimentary Services 3.0 0.0 7.6 merger synergies into organic revenue AFL Publishing 0.0 0.2 6.0 growth initiatives Total Revenue 27.7 15.5 56.0 - excludes incremental contribution from recent organic revenue growth initiatives Operating Expenses 24.7 13.8 48.7 and strategic investments

EBITDA 3.0 1.7 7.3 + Merger Normalisations 0.5 - 0.5 Contributions from the now divested Morrison

+ Raceforce Media Abnormal Costs 0.2 - 0.2 Media business have been removed from the financial reconciliations Underlying EBITDA 3.7 1.7 8.0

1. Excludes contributions from the now divested Morrison Media business 26 [ DRAFT ]

Outlook FY19 Outlook. [ DRAFT ]

Revenue growth is expected to outpace cost growth, supported by the monetisation of organic revenue growth initiatives and return from strategic investments

FY18 FY19 ($ million) Pro forma Run Guidance FY19 Underlying EBITDA guidance of $9.1 Rate million up from $8.0 million in FY18 Revenue Total Revenue 56.0 64.0

Operating Expenses 48.7 55.0 We have invested in resources to support EBITDA 7.3 9.0 organic revenue growth initiatives and anticipate a FY19 return on these investments + Merger Normalisations 0.5 -

+ Raceforce Media Abnormal Costs 0.2 - We anticipate growth in revenue streams Underlying EBITDA 8.0 9.0* from our expanded year-round portfolio of * Expected underlying EBITDA range between $8.75m to $9.25m live sport radio broadcasting rights and maturity of existing products

Growth will be further supported by realisation of merger synergy initiatives already implemented

28 FY19 Funding Position. [ DRAFT ]

We are well funded and continue to actively assess opportunities to expand our radio, regional and sport-led ‘Whole of Sport’ offering – which would be incremental to FY19 guidance

Net debt as at 30 June 2018 was $0.5 million

Subsequent to FY18 we have made two strategic investments and one divestment, which is expected to have a positive FY19 cash flow impact, inclusive of expected contributions from strategic investments

FY19 capital expenditure is forecast to be approximately $1.0 million

A new three-year $15.1 million debt facility has been entered into with the Commonwealth Bank of Australia, effective 31 August 2018

29 [ DRAFT ]

Key Management Personnel Board of Directors. [ DRAFT ]

Pacific Star Network is led by an experienced Board and executive management team

Craig Coleman Mr Coleman is Executive Chairman of private and public equities fund manager, Viburnum Chairman Funds Pty Ltd. He is also currently a Director of Bell Financial Group Limited and Universal Biosensors Inc.

Colm O’Brien Mr O’Brien is a Director of Carrington Partners, a specialized management consultancy Non-Executive Director business focused on Board and Executive level practical advice and is also a Non- Executive Director of Serpentine Technologies.

Andrew Moffat Mr Moffat is the sole principal of Cowoso Capital Pty Ltd, a company providing corporate Non-Executive Director advisory services and is also a Non-Executive Director of 360 Capital Group Limited and was previously Chairman of PNW.

Craig Hutchison Co-founded Crocmedia in 2006, the Walkley Award winning journalist’s visionary and Executive Director entrepreneurial nature has seen the company grow from four staff to over 170 in ten years.

Chris Giannopoulos Joined Crocmedia in 2011 and is focused on acquisition of live sports rights, managing Executive Director relationships with supplied radio partners and leading Bravo Management. Chris was previously a Director of Client Management and New Business at IMG for 14 years

31 Key Executives. [ DRAFT ]

Pacific Star Network is led by an experienced Board and executive management team

Craig Hutchison Co-founded Crocmedia in 2006, the Walkley Award winning journalist’s visionary and Chief Executive Officer entrepreneurial nature has seen the company grow from four staff to over 170 in ten years.

Chris Giannopoulos Joined Crocmedia in 2011 and is focused on acquisition of live sports rights, managing Managing Director – Bravo relationships with supplied radio partners and leading Bravo Management. Chris was Management previously a Director of Client Management and New Business at IMG for 14 years

Jodie Simm Joined Crocmedia in 2007 and previously had 10 years experience with Deloitte Growth Chief Operating Officer Solutions as Client Director consulting to SME’s and high net wealth clients

Richard Simkiss Joined Crocmedia in January 2018 after 13 years at the AFL as GM of Commercial Group Business Director Operations managing the strategic planning and growth of revenue including partnerships, digital, events, hospitality, licensing and ticketing portfolios.

Chris Tan Joined Crocmedia in March 2018 after holding senior management positions with ASX listed Chief Financial Officer JB Hi-Fi Limited and the AFL. Chris is a Chartered Accountant with over 15 years experience across chartered practice, retail and sporting industries.

32 [ DRAFT ]

Disclaimer

THE INFORMATION CONTAINED IN THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND HAS BEEN PREPARED FOR USE IN CONJUNCTION WITH A VERBAL PRESENTATION AND SHOULD BE READ IN THAT CONTEXT. The information contained in this Presentation (Presentation) is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Please note that, in providing this Presentation, Pacific Star Network Limited (PNW) has not considered the objectives, financial position or needs of any particular recipient. PNW strongly suggests that investors consult a financial advisor prior to making an investment decision. The historical information in this Presentation about PNW is, or is based upon, information that has been released to the Australian Securities Exchange (ASX). Investors should note that this Presentation contains pro forma historical and forecast financial information. The pro forma and forecast financial information, and the historical information, provided in this presentation is for illustrative purposes only and is not represented as being indicative of PNW’s views on its financial condition and/or performance. The pro forma financial information has been prepared by PNW in accordance with the measurement and recognition requirements, but not the disclosure requirements, of applicable accounting standards and other mandatory reporting requirements in Australia. To the maximum extent permitted by law, PNW and its advisers and any of their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents: ▪ make no representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness, opinions and conclusions contained in this Presentation; and ▪ exclude and disclaim all liability, including without limitation for negligence or for expenses, losses, damages or costs incurred by you as a result of the information contained in this Presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise. This Presentation includes “forward-looking statements” within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of the words “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan”, “guidance” and other similar expressions. Indications of, and guidance on, future earning or dividends and financial position and performance are also forward-looking statements. Such forward- looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of PNW and its directors, officers, partners, employees, agents or associates, that may cause actual results to differ materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward-looking statements and PNW assumes no obligation to update such information. Actual results, performance or achievement may vary materially from any forward-looking statements and the assumptions on which those statements are based. This Presentation is dated 28 September 2018. Statements made in this Presentation are made only as the date of this Presentation. The information in this Presentation remains subject to change without notice. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. All references to $ in this Presentation are to AUD.