COMMS GROUP LTD — Investor Presentation 2021

Aug 25, 2021

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FY21 Full Year Results Presentation

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COMMS GROUP | 1 This document has been approved by the Board of Directors

COMMS GROUP LIMITED (ASX: CCG)

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Agenda
About Comms Group	3
Financial Highlights	4
Business Update	10
Key Acquisitions Last 12 Months	12
Strategyand Outlook	17

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COMMS GROUP | 2

About Comms Group

Comms Group became the new name for the Group from Nov 2020.

A profitable telecoms business with an extensive product suite and global UCaaS* offerings.

Our Goal is to enhance business agility through innovative cloud communications solutions.

We service our customers via two key divisions:

• Next Telecom - SME/Corporate (up to 1,000 employees)

• Comms Group - Wholesale, Enterprise, Global (+1,000 employees).

Sydney Head Office with offices in Melbourne, Singapore and the Philippines.

Expanding via corporate, enterprise and wholesale channels, international expansion and further acquisitions.

* UCaaS (Unified Communications as a Service) – a communications delivery model based on the cloud, that allows companies to access key comms services including telephony (voice), video, messaging, chat, collaboration, document storage supporting teamwork, agility, mobility and work from anywhere.

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~ 6,500 customers today

~ 80 dedicated staff

Recent acquisitions include Next Telecom , Binary Networks and Switched-On Australia (Aug 21)

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Leading Global Microsoft
Teams calling provider.
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COMMS GROUP | 3

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Financial Highlights

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COMMS GROUP | 4

FY21 Key Results Summary

INCREASED SCALE AND CONTINUED PROFIT GROWTH

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Current Run Rate Current Run Rate (annualised) FY21 Revenue FY21 EBITDA[1] FY 21 Gross Profit (annualised) revenue[2] underlying EBITDA[2] Up 30% Up 28% Up 27% Up 100% YoY Up 100% YoY to $25.2m to $3.2m to $11.4m to $36m - $38m to ~$5m

1 Underlying EBITDA excludes net interest, tax, non-cash share LTIP costs, depreciation, amortisation and business, integration & restructuring costs.

2 Run Rate Revenue and EBITDA is annualised Underlying Revenue & EBITDA including all acquisitions finalised during the year and the recent acquisition of Switched On Australia

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COMMS GROUP | 5

Financial Performance FY21

• Gross Margins excluding acquired businesses continue to improve adding 2% to be 49% for the year

• Through tight credit control bad and doubtful debts have been kept to a minimum with little impact on collections

• Operating expenses excluding acquired businesses have reduced by circa $0.1m

• Acquired businesses are largely trading within expectations

$M	FY20	FY21
Operating Revenue	19.1	25.1
Cost of Sales	(10.1)	(13.8)
Gross Profit	9.0	11.4
Gross Margin (group)	47%	45%
Other income	0.2	0.1
Operating expenses	(6.7)	(8.3)
Underlying EBITDA	2.5	3.2

*Operating Expenses exclude restructuring and business acquisition / integration costs and share based payments

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COMMS GROUP | 6

Financial Performance Over Time

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Operating Revenue
$30.0 m
25.1
$25.0 m
19.1
$20.0 m
16.1
$15.0 m 9.4
$10.0 m
$5.0 m 9.7 9.0
$0.0 m
FY20 FY21
1st Half 2nd Half Total
Revenue Breakdown by Division
$30.0 m 100000
$25.0 m
10000
$20.0 m 10.2 $21,000
1000
$15.0 m
9.7
100
$10.0 m
14.9 $360
10
$5.0 m 9.4
$0.0 m 1
FY20 FY21 ARPU pcm
SME Wholesale & Enterprise
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Gross Profit
$20.0 m 50%
49%
47%
$17.5 m 45% 45%
$15.0 m 40%
$12.5 m 11.4 35%
$10.0 m 9.0 30%
$7.5 m 6.9 25%
4.4
$5.0 m 20%
$2.5 m 4.6 4.5 15%
$0.0 m 10%
FY20 FY21
1st Half 2nd Half GM % core GM % Combined
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COMMS GROUP | 7

Cash Flow

$M	FY20	FY21
Underlying operating cashflows	3.2	1.9
Less: payment of restructuring costs	(1.4)	(0.3)
Less: payment of prior year corporate tax	(0.4)	-
Less: Payment of business acquisition and integration expenses	0.0	(0.7)
Net cash from operations	1.4	0.9
Plus: net proceeds from capital raisings	1.9	5.9
Less: repayment of borrowings	(0.4)	-
Less: rent (lease) payments	(0.4)	(0.4)
Less: investing activities	(0.5)	(3.3)
Net cash inflows	2.0	3.1
Opening cash	0.4	2.4
Closing cash	2.4	5.5

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Net proceeds from Other investing capital raisings in activity includes December 2020 $2.8m for the and January 2021 purchase of Next total $5.9m Telecom and Binary Networks

Underlying cashflow from operations $1.9m

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COMMS GROUP | 8

Balance Sheet

Strong Cash of Paid $10.6m for Next Increase in Carried forward tax balance sheet, net $5.5m at 30 June Telecom & Binary Intangible assets losses of $3.4m assets $28.0m 2021. Nil debt Network Acquisitions from $12.0m to with a tax benefit $23.6m of $0.9m

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$M	30 June 2020	30 June 2021
Cash	2.4	5.51
Working Capital (current assets less current liabilities)	0.9	4.6
Non-Current Assets	15.1	27.3
Non-Current Liabilities	2.0	3.9
Net Assets	14.0	28.0

1 The Company announced on 10 Aug 21 that it is acquiring Switched On Australia requiring initial payment of $3.65m.

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COMMS GROUP | 9

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Business Update

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COMMS GROUP | 10

FY21 Business Highlights

Organic growth from global multi-national corporates (MNCs) for our key MS Teams calling offering + MS Teams comms value adds (e.g. PCI compliant call recording)

Continued focus on supplier cost management and opex management saw improvements in gross margin and EBITDA

Three key acquisitions in Next Telecom, Binary Networks and Switched On Australia (Aug 21), reinforcing our SME business and key Melbourne market

Melbourne now a significant base for the overall business with key management and sales resources engaged

Opened our Singapore office with carrier license obtained; targeting wholesale and MNCs in Asia Pacific region

Key work done on new systems, systems integration and extracting synergies from recent acquisitions. Good progress with synergies on acquired businesses

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Awarded Microsoft Gold Communications Partner in the year

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COMMS GROUP | 11

Key Acquisitions Last 12 Months

NEXT TELECOM

• A telco service provider servicing the SME and mid-sized corporate business markets in Australia

• Offers corporate data services (including corporate fibre and NBN products), cloud IP telephony, managed IT services, managed security offerings and other telecommunication services

• Market leading position with provision of fibre optic-based data services for corporate customers

• Completed 29 January 2021

BINARY NETWORKS

• Service provider to SME/Corporate based in Melbourne Australia.

• Delivers Layer-2 data network to the group, with key PoPs in Sydney, Melbourne and Brisbane. Advanced on-line ordering.

• NBN Broadband, Fibre Broadband (Ethernet), Dark Fibre, Co-Location and Virtual Cloud Hosting to SME/Corporate across Australia. Extensive Layer 3 (internet) peering network.

• Designed to strengthen our position in the Melbourne marketplace and national data market

SWITCHED ON AUSTRALIA

• Switched On Australia is a Melbourne based telco service provider focused on the SME market.

• Switched On’s services include voice & data solutions, mobile services, business phone system installation and maintenance and managed IT support services.

• Acquisition will further strengthen our position in the Melbourne marketplace.

• Expected to complete end of August 2021

• Completed 1 April 2021

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COMMS GROUP | 12

FY21 Key Services Revenue Breakdown

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Revenue by Service Type International and Domestic Revenue
$25.0 m
$5 mil
4.9
$20.0 m
2.3
5.5
$15.0 m 4.2
$10.0 m
14.7
12.6
$5.0 m
$20 mil
$0.0 m
FY20 FY21
Voice inc. UCaaS & Cloud PBX (1) Data Mgd Services International customers & international revenue
1 Teams Calling UCaaS MRR has increased >100% Year on Year Australian Domestic Customers with domestic revenue
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COMMS GROUP | 13

FY21 Key New Clients and Clients with Expanded Offerings

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COMMS GROUP | 14

Comms Group Global Network

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CommsChoice is a leader in Microsoft Teams calling for global businesses.

Extensive international network with the most extensive Asia Pacific coverage.

Recently completed expansions into China , Japan , Philippines, HK and Indonesia .

The first and only provider of Microsoft Teams calling in China .

Continuing to expand into under served markets - currently expanding into India, South Africa and Vietnam . And other Asian countries shortly.

Singapore sales office established in 2021

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COMMS GROUP | 15

CommsChoice Core UCaaS Enhancements

LAST 12 MONTHS

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Comms Group has added a number of key products to its key Unified Communications offering.

Contact Centre for Microsoft Teams

1

Native contact centre for Microsoft Teams. Intuitive and powerful web administration.

Call Recording for Microsoft Teams

2 3

Native cloud-based Call Recording for Microsoft Teams – PCI Compliant. Seeing good interest from financial services firms.

Call Analytics for Microsoft Teams

Measure Call Sentiment through CommsChoice Insights, AI-driven Speech Analytics license, which measures conversation pace, volume, pitch, and tonality.

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COMMS GROUP | 16

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Strategy and Outlook

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COMMS GROUP | 17

Group Strategic Positioning for Organic Growth

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CORPORATE MID MARKET
& ENTERPRISE SECTORS
EXPANSION
INTO ASIA/ROW
(Wholesale / MNCs)
NICHE MARKETS &
NETWORK
CAPABILITIES
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COMMS GROUP IS POSITIONING ITSELF FOR SUSTAINED ORGANIC GROWTH VIA 3 KEY BUSINESS STRATEGIES:

CORPORATE MID MARKET & ENTERPRISE SECTORS

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• Expansion targeting businesses with 50 to 1,000+ seats via additional products & services and via key acquisitions to add capabilities and build scale.

• Key Melbourne market capabilities reinforced in FY21

• Increased focus on selling to larger SME customers.

EXPANSION INTO ASIA/ROW

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• Building strong momentum in this space today via our leading UCaaS position with Microsoft Teams calling

• Focused on key alliances/partners (wholesale), Asia Pacific presence and servicing MNCs, particularly from Australia and Asia

• Potential to expand into other key continents over time (USA, Europe, Africa, South America)

NICHE MARKETS AND NETWORK CAPABILITIES

• Including expansion into other parts of Australia

• Niche strategies adding key products, systems and network capabilities – via key acquisitions and enhancing Comms Group’s capabilities

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COMMS GROUP | 18

4 Pillar Growth Strategy

Comms Group has a longer-term roadmap to grow to scale through the following 4 growth pillars:

SME & Corporate Enterprise Niche markets (inc. regional) Cloud business phone, MS Teams calling, SDWAN offerings, security solutions, fibre & NBN access services

Contact centre Enterprise MNCs IT Providers Australian HO MNCs Global & Regional Asia Pacific core focus + Telcos ROW SIP services, CTS and Global PBX, MS Teams cloud business phone & calling & SD-WAN MS Teams calling. offerings to multi-site Contact centre global customers enablement

SME Corporate Infrastructure telcos SME and Corporate service providers, data & Managed IT competencies, national network providers

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COMMS GROUP | 19

Go to Market Branding from September 2021

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COMMS GROUP | 20

Outlook

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The Company is pleased with the ongoing transformation of the business commenced in 2019 and the results obtained in FY21

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Expect continued Following acquisition growth in wholesale & of Switched-On, enterprise areas. expect run rate Consolidation in our (annualised) SME/Corporate underlying EBITDA businesses to better of circa $5m support growth

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We expect to also continue to grow via strategic acquisitions as appropriate M&A opportunities arise.

“We are singularly focussed on continuing our growth journey and enhancing business agility through innovative cloud communications solutions for targeted businesses globally.”

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COMMS GROUP | 21

Disclaimer

The material in this presentation is a summary of Comms Group Ltd’s (CCG) activities and results, and is current at the date of preparation, 26 August 2021. 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 forward-looking 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

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COMMS GROUP | 22

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COMMS GROUP LIMITED (ASX: CCG)

This document has been approved by the Board of Directors