COMMS GROUP LTD — Investor Presentation 2022

Aug 24, 2022

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FY22 Full Year Results Presentation

25 August 2022

COMMS GROUP LIMITED (ASX: CCG)

https://commsgroup.limited

1 This document has been approved by the Board of Comms Group Ltd

Agenda Company Overview 3 Financial Highlights 9 Business Update and Highlights 15 Strategy and Outlook 20 Glossary 24 COMMS GROUP | 2

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Company Overview

COMMS GROUP | 3

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Comms Group at-a-glance

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A leading B2B provider of cloud communications and managed IT & cloud services to businesses

We service our customers via three key business units

Voice Services We enhance Global business agility Data Services Telco service Specialist UCaaS Award-winning IT through innovative provider to and CPaaS Managed Service Australian SME & provider to Provider supporting cloud-based corporate midWholesale, corporate communications Unified market sectors Enterprise and customers' ICT Communications (<1,000 employees) Global MNCs needs, focusing on and IT solutions Solutions (UCaaS) with the latest (>1,000 employees) innovation and products and award with global network developing longwinning customer reach. term relationships. service. Managed IT & Cloud Services www.nexttelecom.com.au https://commsgroup.global https://onplatinum.com.au

• 140 staff located across Sydney, Melbourne, Gold Coast, Singapore, Philippines, UK

• • Refer https://commsgroup.limited/managementteam for management team

Note: Refer glossary for definitions.

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COMMS GROUP | 4

Key timeline of events

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August 2020

• Expands global MS Teams calling network to China, Philippines, Tokyo, the US and Europe

• 700% increase in underlying EBITDA to $2.5m for FY20

December 2020

• Acquisition of leading SME telco provider Next Telecom increasing revenue to $30m+ annualised

August 2021

• Acquisition of SME telco Switched On, building base in Melbourne, increasing annualised revenue to $36m+

March 2022

September 2021

• •

• Partnership with Partnership with Vodafone Fiji Vodafone Business

February 2022

November 2020

• Re-branding of parent company

• April 2019 to Comms • Peter McGrath Group Limited appointed as CEO & MD

April 2021

• Acquisition of Melbourne based telco infrastructure owner Binary Networks

August 2021

• Branding change with Next Telecom serving domestic SME & Comms Group serving global, wholesale and Enterprise

• 28% increase in underlying EBITDA to $3.2m for FY21

• Acquisition of leading ICT Services provider onPlatinum

• Inaugural debt facility of $10m with CBA established

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COMMS GROUP | 5

Our products and services

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A highly focused B2B service provider with a full ICT product suite and leading position as a global unified communications provider

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Voice services

• Replace legacy ISDN/PABX lines

• • Move traditional “in-office” PABX to the cloud

• Advanced cloud business phone/hosted PBX (domestic)

• Global PBX for International offices

• Inbound 13/1300/1800 services

• 4G/5G Mobile & Mobile Broadband

Wholesale/Global

• SIP Trunks

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Data services

• High speed fibre-optic based data & internet services

• NBN services inc. NBN Enterprise Ethernet

• Own our own Layer 2 and Layer 3 (ISP) networks

• SD WAN

• Multi-carrier diversity services

• Access to Cloud Services

• Firewall services

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Unified Comms Solutions (UCaaS)

• Industry leading Global Microsoft Teams calling (Direct Routing)

• Range of value-added applications

• Contact Centre

• Call Recording

• Call Analytics

• SMS messaging with integration to MS Teams

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Managed IT services

• 24x7 IT Managed services

• • Provision of ICT hardware

• Security services

• Cloud based services (Azure, VMWare)

• Own our own Cloud IaaS Virtual Server cluster (VMWare)

• Desktop as a service

• Backup as a service

• SIP & MS Teams calling services wholesale

• Call Termination Services

• Global DIDs/Telephone numbers

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COMMS GROUP | 6

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Comms Group global network

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Comms Group is a leader in Microsoft Teams calling for global businesses.

Extensive international network with in-depth Asia Pacific coverage and carrier relationships.

Upgraded & expanded capacity of core Global voice network with 6 SuperPOP locations now in place – Sydney, Singapore, London, Frankfurt, US West & US East

Expanded network capability and capacity in key markets of Philippines, Hong Kong, Vietnam & Thailand

Enhanced capacity of our domestic data (Layer 2), internet (Layer 3, ISP) & cloud hosting platforms in FY22

COMMS GROUP | 7

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onPlatinum acquisition in Feb 22 - leading managed IT services provider

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In Feb 22, we acquired a leading provider of ICT[1] services with a high-quality customer base

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Extends Comms Group’s product offering, broadening product set into the IT services market. Provides strong cross sell opportunity.

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Added $16m+ to total group revenue

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Strengthens Comms Group’s position in the corporate mid-market

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Expands the Company’s domestic footprint into QLD

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Base EBITDA contributions of $2m[2] (incl. synergies) and expected to grow overtime

1 ICT refers to Information Technology (IT) services as well as Communications Services. 2 Annualised EBITDA contribution.

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COMMS GROUP | 8

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Financial Highlights

COMMS GROUP | 9

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FY22 Key Results Summary

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Broader, more diversified business with continued revenue & EBITDA growth in FY22

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FY22 Revenue FY22 Underlying EBITDA[1, 2] FY22 Gross Profit FY23 revenue FY23 underlying Up 64% Up 28% Up 68% target EBITDA target $50m+ $6m+ to $41.3m to $4.1m to $19.1m

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

2 Excluding start up costs associated with Vodafone contract win, FY22 underlying EBITDA was approx. $4.8m (up 50% on pcp).

COMMS GROUP | 10

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Financial Performance FY22

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• Increase in operating revenues includes a full year’s operations of prior year acquisitions and acquisition of Switched On (Sep 21) and onPlatinum (Feb22). Annualised operating revenues now in excess of $50m.

• Gross margin increase from 45% to 47% a product of the acquisition of higher margin businesses during the year but more significantly, the realisation of synergies in excess of those budgeted (timing and quantity).

• Increase in operating expenses to $15.1m also due to the inclusion of prior year acquisitions for a full year and those made during the year. Whilst pressure is on employee costs in particular, through tight control operating costs have largely been kept within budget.

$M	FY21	FY22
Operating Revenue	25.1	41.0
Cost of Sales	(13.8)	(21.9)
Gross Profit	11.4	19.1
Gross Margin (group)	45%	47%
Other income	0.1	0.1
Operating expenses	(8.3)	(15.1)
Underlying EBITDA	3.2	4.1

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

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COMMS GROUP | 11

Financial Performance Over Time

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----- Start of picture text -----

Operating Revenue Gross Profit
19.1
41.0 20
40 68%
63%
15
30 25.1 23.7 11.4 11.1
19.1 10 9.0
20
16.1 6.9
9.4 4.4
10 17.3 5 8.0
9.7 9.0 4.6 4.5
0 0
FY20 FY21 FY22 FY20 FY21 FY22
1st Half 2nd Half 1st Half 2nd Half
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Operating Revenue by Business Unit EBITDA by Business Unit
6.0 4.1
41.0
40 5.0 3.2 0.4
6.6 1.4
4.0
30 25.1 10.0 3.0 2.1
19.1 2.0 3.8
20 10.2 1.0 2.4
9.7
24.4 0.0
10
14.9 -1.0 -1.3 -1.5
9.4
0 -2.0
FY20 FY21 FY22 FY21 (estimated) FY22
SME Global ICT SME Global ICT Corporate Centre / Overheads
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COMMS GROUP | 12

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Cash Flow

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$M	FY21	FY22
Underlying operating cashflows	1.9	3.4
Less: Payment of business acquisition, restructuringand integration expenses	(1.0)	(1.4)
Net cash from operations	0.9	2.0
Plus: net proceeds from capital raisings	5.9	-
Plus: proceeds from bank borrowings	-	8.1
Less: rent (lease) payments	(0.4)	(0.8)
Less: net investing activities	(3.3)	(11.9)
Net cash inflows	3.1	(2.6)
Opening cash	2.4	5.5
Closing cash	5.5	2.9

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Underlying Net investing Investing activities cashflow from payments of have been funded operations $11.9m include by a new CBA loan $3.4m after an $10.7m for the $8.1m and $3.8m investment in acquisition of cash on hand net working Switched On and (including from capital of $1.1m. onPlatinum. that generated during the year).

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COMMS GROUP | 13

Balance Sheet

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Balance sheet Cash at bank Paid $18.6m for continues to $2.9m at 30 Switched On and strengthen, net June onPlatinum. asset increasing 2022. Undrawn to $30.0m. overdraft $0.7m.

CBA term loan facility limit $10.0m, drawn to $8.1m at 30 June 2022. Preliminary covenant testing indicates significant margin to minimum requirements.

Carried forward tax losses of $2.0m with a tax benefit of $0.5m

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$M	30 June 2021	30 June 2022
Cash	5.5	2.9
Working Capital (current assets less current liabilities)	4.6	1.0
Non-Current Assets	27.3	51.6
Non-Current Liabilities	3.9	17.2
Net Assets	28.0	30.0

*Working capital excludes $5.4m deferred consideration for acquired businesses.

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COMMS GROUP | 14

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Business Update & Highlights

COMMS GROUP | 15

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FY22 Overall Business Highlights

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• Key • Two key acquisitions completed in FY22 – Switched On and key ICT provider onPlatinum.

• acquisitions • Business is now over $50m annualised revenue with significant scale and diversification and extensive

• & greater product and service offering.

• scale

• 3 key In FY22, structured business into three key divisions each with their own CEO:

• business • Next Telecom - Domestic SME/Corporate mid-market Telco. units • OnPlatinum - Domestic Corporate Managed ICT service provider.

• established • Comms Group Global - UCaaS / CPaaS to Wholesale/Enterprise in the global telco marketplace •

• Strong Finalised FY22 with key synergy projects completed in Q4, delivering $0.8m in annualised synergies from

• synergies recent acquisitions including Next Telecom and Binary. from • Further potential synergies have been identified across the Group which could provide up to $1m in annual

• acquisitions cost savings, realisable over the next 12 months. •

• Key A key global agreement to provide key unified comms & related services to Vodafone Business •

• agreement Significant work undertaken since contract award to be ready for launch Q1 FY23. with • Providing advanced orchestration & automation capabilities to automate many processes

• Vodafone • Positive partnership emerging with some good deals underway •

• Strong new Strong result in FY22 with new sales contracts signed sales • Total of $235k MRR of new sales contracts closed in 1H22 •

• results Total of $418k MRR of new sales contracts closed in 2H22

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COMMS GROUP | 16

FY22 Business Highlights (cont.)

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SME Business Unit

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• A leading domestic SME/Corporate mid-market Telco incorporating all of our SME businesses (including Comms Choice SME, Binary, Switched On)

• Key operations NSW, Vic & Qld and looking to expand into other states where opportunities available.

• Major focus in FY22 on branding & website update and optimizing sales organisation.

• Strong direct and indirect sales force via extensive partner network.

• Continued success in FY22 with lead products of fibre connectivity, hosted voice, MS Teams calling + value add services inc. call centre, call reporting & analytics.

• Increased growth with SD-WAN and security offerings

• Great progress on delivering synergies in FY22 as outlined

• Consistently closing new sales around $20k to $30k pcm MRR.

• Targeting revenue growth in FY23 and annual EBITDA of $4m+ in FY23.

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COMMS GROUP | 17

FY22 Business Highlights (cont.)

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• A leading IT Managed Service Provider supporting corporate customers' ICT needs, with key

• ICT offices in the Gold Coast Qld and Sydney

• Business Unit •

• Currently working through an earn-out based on quarter ending Dec-22

• Customers typically contracted for a range of managed IT services over 36+ mth periods.

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• Seeing strong interest in onPlatinum’s full range managed IT service offerings by mid market corporate customers.

• Provider of key cloud-based services including onPlatinum’s own managed IaaS virtual server cluster (VMWare)

• Strong pipeline of new sales and expect to continue to grow revenue and EBITDA over time.

• Closing new sales around the $20k to $40k pcm MRR level (and higher).

• Targeting revenue growth in FY23 and annual EBITDA of $2m+ in FY23.

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COMMS GROUP | 18

FY22 Business Highlights (cont.)

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Global Business Unit

• Global UCaaS and CPaaS business established as a separate division in FY22.

• Major work underway to add core UCaaS service ordering and management platform for customers, inc. MS Teams Operator Connect and other UCaaS products.

• Strong focus in FY22 expanding reach and capacity of core network plus addition of carrier partners and licences - to continue into FY23.

Global

• Increasing awareness with other global wholesale prospects has resulted in some recent strong wins in the CPaaS area. Expect to see growth in this area over time.

• Currently working on a number of key deals with global wholesale customers in both UCaaS and CPaaS areas.

• Closing new sales around the $20k to $40k pcm MRR level (and higher).

• Targeting moderate revenue growth FY23 and annual EBITDA of $1m+ in FY23. Some additional costs added in short term to support anticipated growth.

• Stronger growth expected in FY24 and beyond as existing contracts grow.

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COMMS GROUP | 19

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Strategy & Outlook

COMMS GROUP | 20

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Comms Group strategic imperatives

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S T R Extend our services in A the corporate mid- T market sector with a E full ICT service offering G Y

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Become a key UCaaS and CPaaS provider throughout APAC region and globally to wholesale & enterprise sectors

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Grow to scale organically and via acquisitions to over $100m revenue with commensurate increase in profitability

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Expand domestically to become a national provider

• onPlatinum acquisition FY22

• P acquisition FY22

• R • Extensive telco & IT

• O managed services

• G offerings today R • Looking at further E expansion S opportunities in key IT & telco services

• S areas

• Key Vodafone Business win FY22

• Major global network upgrade FY22

• Expanding carrier agreements/licences

• Key customer facing systems being added

• Adding key resources, inc. SE-Asia resources

• Over $50m annualised revenue today

• Targeting solid organic growth

• Continuing to explore strategic growth opportunities

• Keen to pursue expansion opportunities Brisbane, Sydney, Melbourne & Perth

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COMMS GROUP | 21

Outlook

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FY23 Revenue is expected to be $50m+

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Expect growth FY23 Underlying across all 3 EBITDA is expected business units in to be the Group in FY23 $6m+

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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.”

COMMS GROUP | 22

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Disclaimer

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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, 25 August 2022. 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.)

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 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.

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.commsgroup.limited

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COMMS GROUP | 23

Glossary

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Term	Definition
Cloud Communications	The provision of key communications services from cloud servers based in data centres with services delivered over high-speed internet connections.
Cloud PBX, Cloud Phone, Hosted PABX	A cloud PBX functions the same as an in office PABX but is hosted in a cloud server accessed via the internet. This is becoming the preferred option for providers and customers today. We operate a global Cloud Phone network.
Corporate mid-market	For Comms Group, this is larger organisations with typically 500+ employees and monthly spend (MRR) of typically > $5,000.
CPaaS	Communications Platform as a Service is a cloud-based platform that enables developers to add real-time communications features to their own applications without needing to build backend infrastructure and interfaces. Comms Group provides call termination (SIP Trunks), telephone numbers and management across multiple geographies.
CTS	Call Termination Services – provision of a service by wholesale service providers to terminate voice calls in different countries and on to different networks such as mobile and fixed voice networks.
Data Service	A broadband service that delivers voice, video and data over a private network or the Internet. NBN and fibre optic services are most in the SME and corporate mid-market. We operate a domestic Layer 2 (data) and Layer 3 (internet) network with Points of Presence (PoPs) in Syd, Melb & Brisb and aggregate a range of layer 2 wholesale access services.
Enterprise	For Comms Group, this is organisations with typically > 1,000 employees and operating multi-nationally as an MNC.
Fibre (optic)	Use of fibre optic networks to carry digital signals (data) via light transmission at very high speeds, transforming the telco and cloud services market globally.
ICT	Information Communication Technology is an umbrella term that covers the wide range of IT services and Communications services provided to businesses.
MNC	Multi-national corporate whereby the corporation has offices, facilities and assets in multiple countries.
MRR	Monthly recurring revenue is the monthly recurring annuity style revenue received from customers.
NBN	Australia’s national broadband network, which is a wholesale open access data network, replacing older copper and cable broadband with optic fibre networks, high speed switches and other technologies.
PABX	A typically in-house telephone switching system that interconnects telephone extensions to each other as well as the outside telephone network known as the public switched telephone network (PSTN).
SD-WAN	A software-defined wide-area network (SD-WAN) uses software-defined network technology, such as communicating over the Internet with encryption between an organisation's locations. Allow companies to build higher-performance networks using lower-cost & commercially available Internet access & replace older networks such as MPLS.
SIP	Session Initiation Protocol - being the standard IP telephony signalling protocol used to manage voice calls over the internet.
SME	For Comms Group, this is small to medium enterprise typically up to 500 employees.
UCaaS	Unified communications as a service is a delivery model based on the cloud, providing key communications services including telephony (voice), video, messaging, chat, collaboration, document storage supporting teamwork, agility, mobility and work from anywhere. We are is a leading provider of MS Teams calling with a global network and service offering.

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COMMS GROUP | 24

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COMMS GROUP LIMITED (ASX: CCG) This document has been approved by the Board of Directors