COMMS GROUP LTD — AGM Information 2019

Nov 11, 2019

Annual General Meeting

12 November 2019

Disclaimer

The material in this presentation is a summary of CommsChoice Group's (CCG) activities and results, and is current at the date of preparation, 12 November 2019. Further details are provided in the Company's full and half year accounts and results announcements released to the ASX.

No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this presentation, including the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in the presentation ("forward- looking statements"). Such forward-looking statements are by their nature subject to significant uncertainties and contingencies and are based on a number of estimates and assumptions that are subject to change (and in many cases are outside the control of CCG and its Directors) which may cause the actual results or performance of CCG to be materially different from any future results or performance expressed or implied by such forward- looking statements.

Undue reliance should not be placed on forward-looking statements and except as required by law or regulation, CCG assumes no obligation to update these forward-looking statements. To the maximum extent permitted by law, CCG and its related corporations, Directors, officers, employees and agents disclaim any obligations or undertaking to release any updates or revisions to the information in this presentation to reflect any change in expectation or assumptions and disclaim all responsibility and liability for these forwardlooking statements (including without limitation, liability for fault or negligence.)

This presentation provides information in summary form only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor.

Due care and consideration should be undertaken when considering and analysing CCG's financial performance. All references to dollars are to Australian Dollars unless otherwise stated.

To the maximum extent permitted by law, neither CCG nor its related corporations, Directors, officers, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

Certain financial data included in this presentation may be "non-IFRS financial information" under Regulatory Guide 230 Disclosing non-IFRS financial information published by ASIC. [The non-IFRS financial information in this presentation may include underlying profit after tax]. CCG believes this non-IFRS financial information, where included, provides useful information to users in measuring the financial performance and conditions of CCG. The non-IFRS financial information measures do not have standardised meanings prescribed by International Financial Reporting Standards and, therefore, may not be comparable to similarly titled measures presented by other entities, nor should they be considered as an alternative to other financial measures determined in

accordance with International Financial Reporting Standards. Undue reliance should not be placed on any non-IFRS financial information.

This presentation is not and should not be considered as an offer or an invitation to acquire shares in CCG or any other financial product and does not and will not form any part of any contract for the acquisition of shares.

This presentation should be read in conjunction with other publicly available material. Further information including historical results and a description of the activities of CCG is available on our website www.commschoice.com

Chairman's Speech

John Mackay

Managing Director & CEO Speech

Peter McGrath

Financial Performance 18/19

\$M	FY19	FY18 (6.5mths)
Revenue	21.0	10.5
Cost of Sales	(12.0)	(5.8)
Gross Margin	9.0	4.7
Opex	(8.7)	(4.4)
Underlying EBITDA*	0.3	0.3
Restructuring Costs	(19.0)	(4.1)
EBITDA	(18.7)	(3.8)

* EBITDA (underlying) excludes net interest, share issue and non-cash LTIP costs, depreciation and amortization and excludes restructuring charges mentioned in this presentation.

Balance Sheet 30 June 2019

\$m Group	30 June 2019	30 June 2018
Cash	0.4	1.7
Total assets	17.1	34.9
Borrowings	-	-
Total liabilities	(6.3)	(6.4)
Net assets	10.8	28.5
Equity attributable to members of the parent	10.8	28.5

Key Highlights

• Strong balance sheet debt free
• Net cash/deposits of \$1.5m as at 31 Oct
• Adequately funded to support organic growth

Key Achievements – Last 6 Months

4 Pillar Growth Strategy

Strategy	Segments	Key Offerings
Domestic Growth	SME Corporate Mid Market	Cloud business phone, MS Teams calling and SD-WAN offerings
Wholesale Partners	Contact centre and IT service provider	SIP services, CTS and cloud business phone & MS Teams calling
Overseas Growth	Corporate Multi-national	Global cloud business phone and MS Teams calling offerings to multi-site global customers
Strategic Acquisitions	SME Corporate	SME telco services SD WAN & Managed IT services

Outlook

• Strong start to FY20 with new sales and monthly profit performance
• Continued positive EBITDA performance on monthly basis.
• Reaffirming FY20 guidance of EBITDA \$1.8m to \$2.2m.
• Cash at bank / deposits of \$1.5m at 31 Oct
• Majority of restructuring payments now finalised with circa \$0.6mil restructuring costs remaining

CCG Investor Metrics

Metric as as 8 November 2019	Value
Number of shares	190.4m
Share Price	\$0.066
Market capitalization	\$12.6m
Net (debt) / cash (31 Oct 19)	\$1.5m cash
Enterprise Value	\$11.1m
Performance Rights on Issue - 50% vesting at 12.5c per share - 50% vesting at 20c per share	17.6m