STRATEGY BRIEFING 3 July 2019

AUSTRALIA’S SPECIALIST FIBRE AND NETWORK SOLUTIONS PROVIDER CONNECTING ALL MAINLAND CAPITALS WITH ASIA WELCOME Bob Mansfield Chairman 09:10 – 09:30 Overview Kevin Russell

09:30 – 11:00 Vocus Network Services Kevin Russell, Andrew Wildblood, Mark Callander, Ellie Sweeney

11:00 – 11:15 Coffee Break

11:15 – 11:45 Vocus Retail AGENDA Antony de Jong

11:45 – 12:15 Vocus New Zealand Mark Callander

12:15 – 13:00 Key Takeaways and Q&A Kevin Russell

Lunch

3 EVALUATING VOCUS

ASSETS & MARKET EXECUTION & OPPORTUNITY TIMING

WE ARE IN THE EARLY STAGE OF A 3 YEAR TURNAROUND

4 THREE YEAR TURNAROUND UNDERWAY

• New leadership 1 PEOPLE AND CULTURE • LTI introduced • New Vocus values introduced • FY19 guidance will be met PLANNING AND EXECUTION • Cash and balance sheet well managed 2 • Cost out program established • 3 year operating plan and goals established

VOCUS NETWORKS • Clear market priorities 3 REVENUE ENABLERS • Australia Singapore Cable operational • Invest in key products (SD-WAN, Secure)

4 STRATEGIC FIBRE BUILDS • 5 year pipeline established

• Steady operational improvements TECHNOLOGY SIMPLIFICATION • Network Operations Centres consolidated 5 AND MODERNISATION • SuperCore network consolidated • Future State plans agreed and vendors selected • Commander brand relaunched RETAIL TURNAROUND • Optus MVNO renegotiated, with a path to 5G 6 • NBN price increases implemented • Cost and operational improvements underway

5 SIMPLIFYING TO THREE INDEPENDENT OPERATING BUSINESSES

VOCUS NETWORK SERVICES VOCUS RETAIL VOCUS NZ Strong performer with Untapped growth potential Reset and turnaround strategic options Full service offering of fibre Leading fibre and network Reseller of broadband, mobile, connectivity, broadband, voice OVERVIEW solutions provider voice, energy energy and mobile

• Enterprise • Consumer TARGET • Federal, state and local • Price sensitive consumers • Enterprise MARKETS government • Small to medium enterprises • Government • Wholesale • Wholesale

• c.25,000km fibre NETWORK • 4,200km of inter capital fibre • 5,500+ on-net buildings • 3 owned data centres ASSETS • 17 owned data centres

6 SIMPLIFYING TO THREE INDEPENDENT OPERATING BUSINESSES

• c.25,000km fibre NETWORK • 4,200km of inter capital fibre • 5,500+ on-net buildings • 3 owned data centres ASSETS • 17 owned data centres

OUR CORE BUSINESS 7 NEW TIER ONE EXECUTIVE LEADERSHIP TEAM

KEVIN RUSSELL ANDREW WILDBLOOD MARK CALLANDER ELLIE SWEENEY Managing Director & Chief Executive, Enterprise Chief Executive, New Zealand Chief Operating Officer Chief Executive Officer & Government Chief Executive, Wholesale and International

ANTONY DE JONG MARK WRATTEN ASHE-LEE JEGATHESAN AMBER KRISTOF Chief Executive, Chief Financial Officer General Counsel Head of People & Culture Business & Consumer & Company Secretary

8 PEOPLE ARE THE LEAD INDICATOR OF PROGRESS IN A TURNAROUND

Employee NPS Voluntary Attrition Alignment with goals, “How likely are you to recommend objectives and values1 Vocus as a place to work?” 8 7.1 20%

6.5

6 15%

-1

-3 May-18 Sep-18 Current May-18 Sep-18 Current

9 1 Out of 10 VOCUS RETAIL More than halfway through navigating the structural headwinds in Voice and Broadband

Voice SIOs1,2 Copper and NBN SIOs1,2 (‘000s) (‘000s)

IP Voice Legacy Voice NBN Copper Copper

402 • ARPU: $59 (187) Voice 589 (84) • AMPU: $27 505 215 • ARPU: $49 138 404 402 • AMPU: $26 NBN

181 367 • ARPU: $64 185 +182 36 • AMPU: $21 Jun-17 Jun-19* Jun-17 Jun-19*

• Material margin dilution due to loss of legacy voice and copper ADSL SIOs, together with the migration to lower margin NBN products • Expect the impact of erosion to be fully offset by new revenue streams and cost savings during H2 FY21

* End May-19 SIOs + 1 month forecast. ARPU and AMPU based on H1FY19 1 Services in operation 10 2 Retail (including Consumer and Commander) GUIDANCE

2019 2020 2021+

$350m – $370m $350m – $370m Vocus Network Services Underlying EBITDArange Underlying EBITDArange accelerating Capex to be (excl. ASC) EBITDA growth in EBITDA growth Vocus Network Services of $160m – $170m Retail business $20m – $30m offset stabilised during H2FY21 Cash conversion by similar decline in Retail 90 – 95% and primed for growth in Expect stronger FY22 NLR1 H2 performance 2.90 – 2.95 X New Zealand Capex to be steady growth Underlying D&A $200m – $210m less than $160m ~$15m on FSTP2 / ~$30m on IRU’s3 Cash conversion Above financial metrics all within original guidance 90 – 95% NLR continues to reduce

1 Net Leverage Ratio (Net Debt/EBITDA) 2 Future state technology program 11 3 Indefeasible Rights of Use (“IRU’s”) VOCUS NETWORK SERVICES Kevin Russell, Andrew Wildblood, Mark Callander, Ellie Sweeney VOCUS NETWORK SERVICES What are we building?

AUSTRALIA’S SPECIALIST FIBRE AND NETWORK SOLUTIONS PROVIDER

13 VNS Overview WHAT WE DO WELL

Customers People Delivery Fibre Secure Great relationships, Passionate, Industry-leading Complex and Trusted partner easy to do capable and capability unique builds for highly secure business with customer-focused networks Proven track record

14 VNS Overview WHY OUR CUSTOMERS CHOOSE VOCUS

We have you covered Trusted Dedicated, local account management by leading brands and Government agencies 24/7 local network operations centres Security-cleared staff operating secure network

Make it easy Crazy about customers The nimble challenger that’s The challenger brand our easy to do business with customers deserve

Innovative and Australia and NZ wide network commercially disruptive with reliability, resilience and reach, Disruptive pricing for competitive products and growing International capability Innovative solution design

15 SUBSTANTIAL VNS Overview OPPORTUNITY Enterprise market Government market Wholesale market TO GAIN MARKET $5.5b $0.6b $3.5b SHARE

Current Vocus Share Current Vocus Share Current Vocus Share c. 4.5% c. 11.5% c. 8.5% $9.6b directly addressable A challenging time for all of our competitors connectivity, network security, voice and collaboration market1

Current Vocus Share: c. 6% Impacted by Cost out of Vastly more challenges and customer facing complex product priorities in their activity and IT portfolios 1 Excludes mobile of $4.3b core consumer transformations Sources: Management estimates based on Vocusbilling data, Ovum, Gartner, IDC, company annual reports business

16 VNS Overview MARKET DEMAND IS DRIVING UTILISATION OF VALUABLE ASSETS All mainland capitals connected with Asia

Market demand Valuable assets Digitisation, automation, Secure inter-capital AI and Machine Learning network is the only Driving increasing demand complete alternative for data connectivity over to Telstra Australia’s long distances Vocus was built to be the ‘carrier’s carrier’

Hyperscale cloud Australian mobile companies are operators deploying 5G consuming significant Need to deploy or upgrade capacity across backhaul to existing and Australia and into Asia new greenfield sites

Acceleration of Addressing the Australian enterprises digital divide adopting private and between metro and public cloud regional Australia

17 VNS - E&G ENTERPRISE & GOVERNMENT CUSTOMERS TODAY Enterprise Government

EG revenue (excludes Coral Sea Cable) 5,300 200 Enterprise customers Government customers DC & Cloud (Federal, State, Local)

Other 7% 1.84 3.06 8% Average products Average products per customer per customer Voice 15% Geographically diverse Trusted, secure network 54%54% Fibre customer base across States

16%16% 60% of ASX200 On procurement panels Internet are Vocus customers for Federal, State and Local Government customers

70% of revenue Top 200 customers is from Fibre and Internet = 50% of total revenue

18 VNS - E&G KEY DRIVERS OF GROWTH IN ENTERPRISE & GOVERNMENT

Targeted approach Products Channel People Partnerships to market

Aligned to our Rationalised Reinvigorated The right skill set Disruptive unique assets and updated indirect sales and incentives to plays with and offering product set model support growth big tech

19 VNS - E&G TARGETED Government and E&G Indirect Enterprise APPROACH Special Projects & Alliances

TO MARKET Co-funded, Large Local Govt Small and secure or departments Niche industry mid-sized high- and agencies corporates Fin Services capacity across Small System Key verticals networks Federal and Prof Services Integrators State Oil & Gas requiring different Governments Mining products and go to Broadcast market approach Media Cloud services

Niche industry offers

Voice Collaboration / Unified Comms

Secure network services

Ethernet, private and IP wide-area networks

Internet access

Dark fibre, wavelength

20 VNS - E&G PRODUCTS ALIGNED TO THE NEEDS OF OUR TARGET MARKETS

Now FY20 - FY22

Networks and Limited product set Invest in team capability and Grow our voice and Connectivity relevant products collaboration portfolio Expand reach through NBN On-demand product Cloud, experience Wholesale products Open new markets through Platforms retrofitted to serve productising international capacity Integrated network to and Security Enterprise customers provide enhanced Secure network products customer experiences for government Workplace Collaboration Leverage our network to capitalise on growth in cloud services

Product Simplification Industry Solutions

21 VNS - E&G NBN Why partner with NBN? Complements Vocus’ long-haul network, enabling us to disrupt and Complementary Customers Sales Economics Capital take share Vocus long-haul Ability to win major Up-sell existing Use NBN as an Preserve capital fibre, customers beyond customers with alternative to other for strategic Vocus NBN access the reach of our new products and wholesale networks fibre builds, leverage network own network reach enabled for highest NBN to connect by NBN overall return customer tails

Growing NBN product suite

Launched Launched August Jan 2019 April 2019 July 2019 July 2019 2019 Q1 FY20

NNI Business NBN Fibre Wholesale NBN Enterprise Linking Internet Upgrades NBN Business Symmetric Ethernet Grade Access

22 VNS - E&G SEPARATE AND SECURE NETWORK FOR GOVERNMENT CUSTOMERS

Specialised network to grow Government share

• Existing contracts with major ~$600m 35% 65% Federal Government customers Addressable Government State Federal Market (FY19) • Partitionable network and management systems

• Security-cleared staff 35% of market 65% of market opportunity opportunity • Reach remote locations is in State is in Federal • Australian-owned company and local network operations centres

23 VNS - E&G INVEST IN CHANNEL, PEOPLE & PARTNERSHIPS

Reinvigorate indirect Invest in Strategic sales channel our people Partnerships

2019 2023 • Upskill to match growth ambition • Grow in public cloud, voice 350 partners 50 partners and collaboration, SD-WAN <10% E&G Revenue 20% E&G Revenue • Single sales and account • Vocus positioned as an agile Benefits of indirect channel management methodology challenger • Lower cost-of-sale, greater coverage • Access partners’ managed services • Technical sales capability to • Partners seeking brand alignment via Vocus single bill support new products for joint disruption • Allows Vocus direct sales to focus • Joint marketing, enablement and • Strengthen pricing team on major wins sales channel Action plan • Agile product development • Extend reach and branding • Enhance relevant industry experience • Build capability to offer partner-billed • New sales incentives • Brand association with global tech services companies is significant • Digitise Vocus processes opportunity

24 VNS – W&I TARGETED APPROACH Wholesale and International

TO MARKET Global Data centres System technology, Tier III & IV Integrators content and MSPs Key verticals media carriers RSPs focusing on high bandwidth services to deliver maximum returns Cloud services Niche industry offers

Voice Collaboration / Unified Comms

Secure network services

Ethernet, private and IP wide-area networks

Internet access

Dark fibre, wavelength

25 VNS – W&I TOP 100 CUSTOMERS Vision REPRESENT 80% OF To be the first-choice network into and within WHOLESALE REVENUE Australia and New Zealand

Data Centre 1,100 $24,000 4.5Tbps $7.5m Strong International Total Average International Revenue relationships Carriers Customers MRR data per team with all key 2% member players 9% Domestic Global Carriers Technology 31% 12% Wholesale revenue distribution Top 50 customers 65% of total revenue

Managed 17% Top 100 customers Service 80% of total revenue Provider 29% Retail Service Provider Top 200 customers 90% of total revenue

26 VNS – W&I FOUR DISCRETE MARKETS WE PLAY IN WITH TARGETED PRODUCT SET AND SELECTIVE CLIENT BASE

Typical Contract Competitive Capex Competition Terms Advantage Intensity Business Model Market dynamics

Telstra 2-5 years Low • NBN enabler with nationwide reach • Challenging market for RSPs, • Leverages core infrastructure but Wholesale floats on the tide Optus Reseller Low assets • Low operating leverage

MyNetFone • Voice pull through for improved Resale margins

Telstra 2-5 years High • Connecting where our customers • Cloud adoption driving bandwidth need to be in every instance and connectivity Optus IRUs Data Centre Medium • Combination of leased and IRU • Requirement for diversity and pushing 10+ years Connectivity contracts content to the edge • Customer funded builds that • Leverage international relationships reduce cashflow impacts

Telstra 2-5 years Medium • Long-term, high bandwidth deals • Stable recurring annuity revenue streams • High operating leverage • On-net; minimal costs and high margins Optus IRUs Managed High • Deal structure important • Network coverage and reliability 10+ years

Data Services • Low competition outside Telstra • Positioned as alternative to Telstra Connectivity

Indigo 1-3 years High • First mover advantage with ASC • Strong demand for data and traffic • Network ownership economics moving to the West International Hawaiki IRUs High • Protected solutions with swaps • Resiliency and diversity needs for large Data 10+ years SXC • Strong established relationships bandwidth users such as OTTs

27 VNS – W&I VOCUS CAN HARNESS INTERNATIONAL ASSETS FOR DOMESTIC AND INTERNATIONAL GROWTH

ASC is Vocus’ ticket to play in the International market • Customers include major global technology companies, OTT players and international carriers with high bandwidth demands • Internet traffic is moving to the West with low latency and diversity the key requirements for OTTs and international carriers • Vocus has sold nearly 10x the capacity of the entire SMW3 cable system in the first six months of operation • Leverage ASC ownership economics for strategic swaps that strengthen our position and reach in international market AUSTRALIA SINGAPORE • Leverage customer relationships established through CABLE ASC on other international assets and cable routes

Global technology companies and international carriers will only deal with cable owners

28 VNS – W&I

THREE DISTINCT Global International and Content Distribution INTERNATIONAL Technology Giants Domestic Carriers Networks (CDNs) Trends • Adoption of cloud-based • Increased focus on • Growth in bandwidth COHORTS services, big data diversity, service uptime in all market segments • Live video streaming, • Protection within and • Connectivity is the critical better quality between Data Centres enabler of CDN partners What makes Vocus different? • Augmented reality • Bandwidth explosion with • Delivers lowest cost and and virtual reality double digit CAGR lowest latency content • Design of the Australia Singapore Cable with 4 fibre pairs, breakout Customer • Network scale and • Network scale and • Commercial flexibility into Indonesia Value capacity capacity and content reach Proposition • Network reach • Pull through services • Network scale and • Capacity advantage 60Tbps throughout Australia and network reach capacity with one owner versus competitor 36Tbps with four owners Capability • Ownership economics • Ownership economics • Ownership economics • Ability to deliver data anywhere Leverage • Relationships • Relationships • Relationships in Australia on our network Future • Software enabled • International voice, • Software enabled • Protection solution can be offered Capability customer experience bi-laterals customer experience with strategic swaps at ownership • Low commit with • Online ordering and APIs • Flexible bandwidth economics high burst flexibility • Realtime provisioning provisioning in real time • Realtime provisioning • Zero touch provisioning • Australia Singapore Cable is wholly Australian owned Bandwidth sold on ASC 68.7% 31.2% 0.1% (in excess of 3.5 Tbps)

29 VNS – W&I WHY CONSIDER SWAPS ON ASC - WHAT ARE THE KEY DRIVERS

Swap considerations International Go To Market

Sell Swap A B Yield Management Value Accretion Capacity Value of Lease Earnings Improvement offered to the capacity IRUs Extended Reach Vocus to Vocus Capex Avoidance

Align ASC value to capacity offered International Network Planning Sales Management and Commercial C

30 VNS – W&I KEY DRIVERS OF GROWTH IN Sales enablement Pricing and Development of sales operations commercial WHOLESALE AND to increase selling effectiveness Leverage dedicated INTERNATIONAL and customer engagement pricing team across VNS Enhanced customer delivery Maximise profitability across with team focused on end to segment opportunities process, not just sales effort Align incentive programs Product simplification, with the optimal returns online ordering and APIs for the business

GTM enhancements International Dedicated product resource Build specialist international for Wholesale and International sales team to capitalise on market business opportunity created by ASC Increased base management Focus on pull the through capability, white space management of domestic services and customer marketing Potential new presence Consistent selling methodology and in Singapore and US marketing supported campaigns

31 VNS – I&O LEADING FIBRE ASSETS CONNECTING AUSTRALIA WITH ASIA Our fibre and core transport network are our key assets

• 15,020km of inter-capital network in Australia • Over 9,500km of metropolitan and regional fibre in all major centres • 4,200km of inter-capital network in New Zealand

• More than 5,500 on-net buildings • Connectivity to 17 major sports stadiums

• Australia Singapore Cable gateway to Asia • North West Cable System connecting offshore oil and gas facilities

• Own and operate portfolio of 17 data centres in Australia

• Delivering Secure network and operations for Government customers

32 VNS – I&O PROVEN TRACK RECORD OF RUNNING NETWORKS Operating ahead of target metrics

Customer Network Systems Satisfaction Resilience Availability

Customer Service Delivery Targets beaten Targets beaten NPS Score IP Core Network Operating Support Systems 40 (OSS) 30 Edge network Business Support Systems 20 Voice Network (BSS) 10 Transmission Network IT Systems 0 Feb-19 Mar-19 Apr-19 May-19 Jun-19

33 VNS – I&O PROVEN TRACK RECORD OF WINNING AND BUILDING LARGE SCALE CABLES

Delivery date Description

• 2,100km, 12TB capacity North West Cable Oct 2016 System (NWCS) • Connecting offshore oil and gas facilities in the Timor Sea, between Port Hedland and Darwin

• 4,600km, 60TB capacity Australian • New high capacity route to Asia (and onto Europe) replacing ageing and Sep 2018 Singapore unreliable SeaMeWe3 system Cable (ASC) • Delivered ahead of time and under budget

• 4,800km, 40TB capacity Sydney to Honiara and Port Moresby Coral Sea Cable Dec 2019 • 800km Domestic submarine cable network between 4 islands in Solomon System Islands

34 VNS – I&O OUR OPPORTUNITY IS TO SIMPLIFY, MODERNISE AND ENABLE GROWTH

Phase 2 Future State Phase 1 FY20+ Initial integration • Simplify and 2017-2019 modernise • NOC Consolidation • Network consolidated M&A Activity to Supercore • Ipera, Amcom, • Stabilised Delivery Nextgen, Vocus, • Voice consolidation M2, IPTel • Isolated Secure Network • Secure gateway

35 VNS – I&O TECHNOLOGY FUTURE STATE Simplify and modernise

BSS Phase 2 – 2020 to 2023 • Commencing H1FY20 Phase 2 • Consolidate six Edge Networks into one Edge • Consolidate eight BSS environments into two non-customised, cloud-based environments • Implement Programmable Network to automate network actions Core Transmission City A • Digital customer self-service Phase 1 • Software Defined Networking City C City B 2017 - 2019 • Network Functions Virtualisation • Simplified network planning and operations Physical fibre • Optimised customer provisioning Fibre

36 VNS – I&O Financial efficiency • Reduce cost to serve and improve speed of service provisioning, assurance and monitoring • Annual Opex savings of c.$30m and Capex reductions of $30m by FY23

Customer experience • Provide customers with enhanced control over consumption, activation, billing, monitoring BENEFITS • Expand our market reach through enabling Channel Partners OF FUTURE Disrupt • Potential to disrupt the market with new commercial models including; STATE Bandwidth on Demand, Pay by minute, SLA, Capacity, Latency Partner ecosystem • Participate in the ecosystem of Global Cloud and Software Providers • Extend network to global players using virtualisation and open standard interfaces

Product innovation • Easier product innovation with new software, product catalogue and simplification of product • Improve speed to market and ability to white label with Challenger Partners

37 VNS – I&O TARGETED MILESTONES – FUTURE STATE

Current Milestone FY20 FY21 FY22 FY23 state

Capex spend1 $15m $30m $33m $5m

New Edge Network build1 - 55 110 160 41 Network (No. sites) Consolidation and Simplification Edge Networks 6 12

BSS Stack consolidation 8 2 BSS Consolidation and Modernisation New BSS platforms Front end Back end - implemented systems systems NFV Programmable NW Management Advanced Network and New Systems implemented - Orchestration Basic Automation Automation SDN Control Automation Infrastructure and $165m $161m $150m $145m $135m Operations Opex

1 Does not include customer fibre builds 38 2 Excludes secure network LONGER TERM OPPORTUNITIES IN OIL AND GAS MARKET North West Cable System

The Opportunity

Sunrise • Numerous scoping studies underway with potential oil and Evans Shoal gas partners along NWCS route

Bayu Undan • Vocus is uniquely placed and has unparalleled expertise in Cash Maple submarine cable connectivity

CRUX Poseidon • Typically 15 year annuity Torosa Prelude Ichthys revenue structure, frequently Brecknock Calliance customer funded Burnside

39 LONGER TERM OPPORTUNITIES STRATEGIC FIBRE BUILDS UNDER REVIEW

Projects assessed against financial and strategic Project Opportunity returns and are potentially customer funded • Vocus regional fibre assets well positioned 5G fibre to service 5G and NBN Fixed Wireless A backhaul backhaul

Indonesia • Close proximity to burgeoning Eastern B Cable Indonesian market of 60m people B • Ability to connect to offshore projects including Scarborough gas shelf C Port Hedland C branch cable • Completes the loop around Australia, improving redundancy credentials with key

D clients

• Ability to connect mining clients that are A demanding high capacity fibre Geraldton • Mining region generates 1/3 of Australia’s D to Port GDP Hedland cable • Makes Vocus the only competitive option to incumbent provider

40 VOCUS RETAIL Antony de Jong VOCUS RETAIL Strategic direction

Vocus Retail Turnaround Leverage three Diversification Deploy low cost, being established strategy underway strong brands of revenue and digital operating as a separate to return business (Dodo, iPrimus, growth through model – move standalone to revenue and Commander) mobile and away from Business Unit profit growth in to clear market energy legacy systems FY22 segments

42 VOCUS RETAIL IS EXECUTING A MULTI-BRAND STRATEGY

Dodo Be the simplest choice for For individuals on the go who The small business telco iPrimus household services – always want to stay in touch that disrupts, to give Australian Revenue fixed, mobile and energy small businesses better value by brand Commander “The most flexible internet “Simple Not Stupid” you can get” at speed Other “Making business faster, faster”

• Price conscious consumers • Consumers who value superior • SMBs up to 50 staff • Skew to lower income service and reliability Target segment • Value speed and service and youth • Willing to pay more for more from a well established, • Movers, renters and switchers trusted brand

Broadband • Broadband - NBN • Broadband - NBN • Broadband – NBN Voice • Mobile • Voice • Voice Revenue Mobile by product • Energy • Mobile • Mobile Energy Other • Entertainment • Energy

43 VOCUS IS THE FOURTH LARGEST NBN PROVIDER

The reality of NBN economics 21.6% • One-time NBN costs to acquire and connect 14.2% are high - chasing share is costly • NBN variable pricing constructs for RSPs are not aligned with end customer fixed price

8.3% • Majority of customers are on unlimited plans – higher speed tiers and higher usage impact AMPU

SIO Market Share 6.8% The Vocus approach • Increase price in market consistent 49.2% with increasing costs • Migrate to higher ARPU plans where possible • Develop Wireless Broadband options as cost effective alternatives Telstra TPG Optus Vocus Other

44 NBN INDUSTRY Accessibility and affordability PRICING Broadband for all Australians, especially price-conscious CONSULTATION and disadvantaged An opportunity • lower entry level pricing to make NBN • support voice only customers more economically and operationally Simplicity and certainty sustainable Pricing aligned to support unlimited data plans • abolish CVC, variable cost is incompatible with fixed prices • range of consumer speed tiers to support various customer needs

Fairness Promote competition, level the playing field • complexity benefits larger players and hurts competition

45 OPPORTUNITY FOR MOBILE TO DRIVE GROWTH

Grow aggressively in Mobiles to reflect Fixed share Vocus participates in $12.8bn market • High brand awareness relative to other challenger brands $5.1 $4.9 $4.2 $3.7 • Strong consideration for Dodo in broadband 100% • Optus MVNO has path to 5G and Fixed Wireless Broadband Fixed Fixed Fixed Fixed • 3x SIO growth across 3 brands in next 3 years 80% 21% Commander to drive disruption in SMB and take 7% revenue share 6% revenue share revenue share share from majors 60% • Commander is uniquely placed as SMB-only brand Segments targeted by Vocus represent • Competes with larger multi-segment brands focused 72% of AU Telco Market elsewhere 40% • Commander heritage built over 30 years with 36% awareness is a platform for growth Mobiles Mobiles Mobiles Mobiles • Most customers need an NBN sales conversation with 80% 20% yet to migrate <1% 2% <1% revenue share revenue share revenue share • Focus on 5-19 employee businesses to hit 10% share and 3 year ambition 0% Premium Value Price Business • Low penetration of mobile (7%) and energy (3%) in current base offers significant cross sell opportunity Business & Consumer Fixed + Mobile Market (2018, $B)

46 BUNDLING ENERGY EXPANDS TENURE AND MARGINS

Broadband is the entry point into the home Customer tenure improves with Almost 70% of Dodo customers with 2 products and over every additional product 90% with 3 products have Broadband as the core

BB Customers Incremental av tenure (months) 2% 8% 10 Mobile + Mobile + 77% 30% Electricity Electricity + Gas 6 2 BB + Mobile/ 3 Electricity/ Gas products products BB + 2 of 20% Mobile/ 3% 68% Electricity + Gas Electricity/ Gas 0 92% BB BB + Mobile/ Energy BB + Mobile + Energy

• Brand awareness of 40% for • Draw from Vocus NZ experience • Regulatory changes Dodo in Energy is approx. double – broadband led sales with and price transparency will other retail Energy challengers attachment of energy and accelerate customer switching mobile and single acquisition • Only 10% of current NBN and billing experience • Commander also uniquely and Mobile customers take placed to offer Energy to SMB’s Energy from Dodo today

47 ESTABLISHING THE BUILDING BLOCKS IN VOCUS RETAIL

NBN margin Launched Dodo brand Customer base focus, $10 price $5/$10 discount relaunch 76% management increase to out “Bundle and prompted focus, refreshed of contract New mobile Save” awareness and NBN migration customers and offers, digital Optus MVNO campaign. New GM Energy 14% consideration program updated plans improvements Agreement, Energy price commenced MyDodo service refresh leading rebuilding portal launched to SIO growth Energy team

Sep-18 Dec-18 Feb-19 Mar-19 Apr-19 May-19 Coming

Mobile and Bundle Online New brand and ‘Back to New offshore sales New simplified refresh reducing in- sales Business’ campaign launch team to drive cross- bundles and market plans by 50% capability attracting +380k unique sell/upsell mobile plans launched website visitors

AU labour and marketing 20% year on year offshore Ombudsman complaints efficiencies implemented post headcount reduction improved 15% formation of Retail BU in March

48 VOCUS NEW ZEALAND Mark Callander VOCUS NZ, SUSTAINED GROWTH WITH SIGNIFICANT MARKET SHARE OPPORTUNITY

Consistent and sustained revenue growth over five years from core telco and energy bundles. Incremental EBITDA delivered, whilst consolidating merged companies and investing for growth.

Revenue EBITDA

363.5 340.6 350.4 331.7 61.3 55.6 53.6 50.3

H1 H1 188 30.6

FY15 (A) FY16 (A) FY17 (A) FY18 (A) FY19 (F) FY15 (A) FY16 (A) FY17 (A) FY18 (A) FY19 (F)

FY15-17 financials represented on a pro-forma basis for one-off and non-recurring items and contribution of acquired entities throughout the historical period

50 NZ TELCO MARKET MARKET INSIGHTS – $5.4BN Data Consumption Market Share Significant market share opportunity exists for Vocus NZ’s core telco Intensifying • Consumer broadband products, leveraging network reach and capability. Targeted growth • Streaming services market share 13% in the non-core energy market through cross sell and bundling. • Catch up services of total connections • Video and user content • Enterprise and • Rugby World Cup Government revenue Addressable Addressable share at 5% of market Market Market

Consumer Telco Business Telco Network Ownership Critical Rationale Market Structure

Bandwidth explosion positive Less price discounting as fibre Fixed Mobile Fixed & ICT Mobile for infrastructure owners uptake reduces switching c. $1.4bn c. $1.9bn c. $1.1bn c. $1.0bn compared to Resellers, key numbers, but some aggressive enabler of Wholesale market short term discounting still opportunity exists

Business Industrial Consumer Energy Energy Energy Differentiation based Lifetime value of c.$3.5bn c.$3.1bn c.$3.4bn on network performance customers increasing a reality driven by through effective bundling unconstrained and and service reputation Source: Commerce Commission Telco Market Monitoring report 2018 unlimited fibre based plans driving organic growth Electricity company annual reports, Electricity authority – Electricity Market Information website Chorus and MBIE UFB Quarterly connectivity update; management estimates

51 INCREASED BANDWIDTH DEMAND MAKES NETWORK OWNERSHIP AND ECONOMICS CRITICAL TO DELIVER SUPERIOR VALUE

SAN JOSE (USA)

SYDNEY WHANGAREI ~4,300km fibre backhaul Three core network data (AUSTRALIA) network throughout New centres, interconnection with AUCKLAND Zealand over 30 major data centres in TAURANGA HAMILTON NZ and 100% UFB coverage

NEW PLYMOUTH NAPIER

PALMERSTON NORTH Spare capacity across 360+ 200Gbps wavelengths over a NELSON fibres nationwide providing multi-terabit optical transmission WELLINGTON ability to generate future growth network with market leading at relatively low marginal costs partners including Infinera, Juniper, Cisco and Nokia CHRISTCHURCH

DUNEDIN Vocus NZ Third Party Network Disciplined investment in network In-house team manages and INVERCARGILL International Connectivity and equipment upgrades has resulted develops technology and applications in efficient capital requirements across a single framework

52 LEVERAGING BRANDS, PRODUCTS AND NETWORK ECONOMICS TO GROW ADDRESSABLE MARKET SHARE

Mass market Business Wholesale Consumer SE Medium Enterprise Corporate and Government

• Dual brand strategy to win customers • Credible and trusted brands that • Proven experience in Government • Harvesting the network to • Well established brands that are compete in all enterprise market sector with involvement in One.govt maximise profitability household names and pioneers of segments • Appointment to the TaaS panel • Highly motivated wholesaler that the internet • Carrier grade network that provides under a direct supply relationship offers flexible solutions the only real alternative to the last year • Broadband led strategy with • Customised solutions including incumbents compelling reasons to bundle • Infrastructure assets key to deliver SaaS platforms • Brands sit on common platforms and • Longstanding reseller partnerships network solutions and earning • New market entrants driving growth infrastructure to enable singular scale due to flexible approach and focus leverage and new opportunities on providing complementary • Digital leadership is a key competitive services • Strong voice and carrier advantage relationships FY19 Revenue by Segment (%)

55% 45%

Mass market Enterprise, Government and Wholesale

53 NZ STRATEGIC PILLARS Focusing on what moves the needle

Increase bundling Harvest the network Significant opportunities to increase broadband Utilise the scale and capacity of Vocus NZ's and energy bundles, along with mobile to reduce network to drive profitability and reinforce its churn and increase customer lifetime value position as a motivated wholesaler for existing and new market entrants

More focus and investment Continuing to grow share in UFB into new market segments Continue to capitalise on network performance Leverage the Vocus brand and networks in the and customer experience to take share in UFB Enterprise sector with further investment in both and high value segments direct and indirect sales channels

Government Reduce cost to serve Capitalise on strong Government Singular focus driving business simplification and relationships and the product investment in automation to reduce costs, increase productivity TaaS to drive further results in this sector and lead on customer experience to win

54 CONSUMER MARKET Opportunity and strategy UFB1 provides a generational opportunity to grow our New Zealand consumer broadband market current 13% market share

Vocus NZ Consumer strategy 1.8 50% 92% Significant c.1.4 million million connected broadband broadband UFB homes Dual brand strategy targeting homes UFB homes uptake data usage passed data hungry households with growth unlimited plans for simplicity Vocus NZ Consumer strategy Price competitiveness without 8% compromising on the customer 15% 33% experience 50% 24% 62% 71% 6% Broadband led strategy with 21% 8% compelling reasons to bundle 32% 16% 12% 26% 13% 17% 17% Grow UFB to take unfair 21% 14% 4% 14% market share - goal to 9% 5% 2% 1% connect 1 in 4 kiwi homes 2014 2015 2016 2017 2018

Less than 20 GB 20-50 GB 50-100 GB 100 GB or more No cap

Source: Statistics New Zealand, Internet service provider survey. 55 1 UFB – Ultra Fast Broadband BUSINESS MARKET Highly attractive connectivity market, with UFB and the move to the cloud Opportunity and strategy providing an opportunity as customers make their next long term New Zealand business telco market dynamics choice of telco partner

Vocus NZ Business strategy 310k 50%+ network High adoption 61% -1% NPS enterprise issues moving to of fibre at 52% planning for Unloved Target growth in key telco segments with high customers the cloud SD-WAN Customers fixed data requirements with market share upside New Zealand business telco market (NZ$m)1 Core focus is market share gains in Medium Enterprise, Corporate and Government Fixed Mobile Brand Proposition Market1 Market1 Increased investment in sales capability and Enterprise resources to deliver on the market opportunity Connectivity $550m $220m and ICT Agnostic Provider Leverage our agnostic network position with Corporate and Connectivity partners Solution Flexibility Dedicated $300m $220m Government Service Enhance product development using the service Medium Solution Flexibility proposition built for the Government (TaaS) Competitive Pricing $130m $280m Enterprise Dedicated Service Migrate small business to mass market life Simple Bundles cycle management Mass Market Data Performance $160m $240m Value Bundling $2.1bn

56 1 Management estimates WHOLESALE MARKET Opportunity and strategy A motivated wholesale partner, leveraging and harvesting our national network scale

New Zealand wholesale telco market Vocus NZ wholesale strategy

Service Carrier Enhance product suite and New Entrants Provider Market portals for online ordering and Community customer management. Key enabler of full white label Companies with no Telco Companies with limited Large Telcos solutions. capability that require an Telco capability with effective white label existing customer base • Large international Providing access to solution for market entry carriers network infrastructure, both • Smaller providers that domestically and • New industry sectors now require network reach to • Domestic carriers internationally, for data and offering Telco services enhance their services voice solutions. • Network diversity for core • System integrators and IT • Ability to evolve and grow data routes Leveraging network scale companies that require with these customers and expertise in voice at an network connectivity interconnection level. A key provider of diversity to other network operators.

57 VOCUS NEW ZEALAND A platform for future growth

Focus on market share gains Mobile growth with Launch of Orcon into Market share gains in in Medium Enterprise an MVNO structured the Small Enterprise the Consumer segments for success market segment • Increased investment in • Harvest the network sales channels • Improve mobile offering • Simple and compelling to deliver high growth to increase market share market proposition focused across retail brands and • Leveraging new product on network performance wholesale enablement capability and software • Test the market for a and ‘always on’ enablement of the network mobile partnership focused • Continue the broadband for consumption of bandwidth on growth • Leverage low cost led strategy with energy operating platform while and mobile bundling, it delivering exceptional has only just begun service

58 KEY TAKEAWAYS Kevin Russell KEY TAKEAWAYS

This is a three year turnaround

Team and plan in place and now we have to execute and deliver

The core business is Vocus Network Services and we see sustainable profitable growth in FY20 and beyond Simplification and modernisation of technology has a significant market and financial prize Diversification of revenue and cost saving opportunities will return Retail to growth as it transitions through legacy headwinds

Strong New Zealand business positioned for further growth

60 Q&A DISCLAIMER

This presentation (Presentation) contains summary information about Vocus Group Limited (Vocus) and its activities which is c urrent as at the date of this Presentation. The information in this Presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in Vocus or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Cth). This Presentation does not constitute investment or financial product advice (nor tax, accounting or legal advice) or any recommendation to acquire shares in Vocus. Vocus' historical information in this Presentation is, or is based upon, information that has been released to the Australian Securities Exchange (ASX). This Presentation should be read in conjunction with Vocus' other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au. All financial information in this Presentation is in Australian Dollars ($ or AUD) unless otherwise stated. This Presentation contains pro forma 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 Vocus' views on its future financial condition and/or performance. The pro forma financial information has been prepared by Vocus in accordance with the measurement and recognition requirements, but not the disclosure requirements, of applicable accounting standards and other mandatory reporting requirements in Australia. A number of figures, amounts, percentages, estimates, calculations of value and fractions in this Presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this Presentation. This Presentation contains certain ‘forward looking statements’, including but not limited to projections, guidance on future revenues, earnings, margin improvement, other potential synergies and estimates and the future performance of Vocus. Forward looking statements can generally be identified by the use of forward looking words such as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’, ‘estimate’, ‘target’ ‘outlook’, ‘guidance’, ‘potential’ and other similar expressions within the meaning of securities laws of applicable jurisdictions and include. The forward looking statements contained in this Presentation are not guarantees or predictions of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Vocus, its Directors and management, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. Actual performance may differ materially from these forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward looking statements, including the ris k factors set out in this Presentation. Investors should consider the forward looking statements contained in this Presentation in light of those disclosures. The forward looking statements are based on information available to Vocus as at the date of this Presentation. Except as required by law or regulation (including the ASX Listing Rules), Vocus undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward looking statements. Past performance, including past share price performance of Vocus and pro forma historical information in this Presentation, is given for illustrative purposes only and cannot be relied upon as an indicator of (and provides no guidance as to) future Vocus performance including future share price performance. The pro forma historical information is not represented as being indicative of Vocus' views on its future financial condition and/or performance. To the maximum extent permitted by law, Vocus, and their respective advisers, 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 of information in this Presentation This Presentation is for information purposes only.

62 THANK YOU