COMMS GROUP LTD — Investor Presentation 2022

Feb 14, 2022

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Company Presentation to Bell Potter

15 February 2022

COMMS GROUP LIMITED (ASX: CCG)

https://commsgroup.limited

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

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Agenda Company overview 3 Financial metrics 12 Strategy and outlook 15 Glossary 19

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COMMS GROUP | 2

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Company Overview

COMMS GROUP | 3

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Presenting today - CEO & CFO Bios

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Mr Peter McGrath CEO and Managing Director

Peter’s business career spans 30 years in telecommunications, ICT and corporate advisory, with over 15 years in senior leadership positions.

Peter was CEO of the Nextgen Group (Nextgen Networks, Metronode & Infoplex) as well as Managing Director of Leighton Contractors Telecommunications Division and Managing Director of Visionstream for 8 years. Under Peter’s leadership, the businesses all grew to become leading players in the Australian marketplace. Prior to this, Peter was Chief Executive Officer of publicly listed Uecomm and earlier Chief Operating Officer of leading commercial ISP: Connect.com. Peter also has extensive experience in equity capital markets and corporate finance with ANZ Securities and UBS Warburg and has served on a number of boards over his career.

Peter holds a Bachelor of Engineering Degree (RMIT) as well as an MBA from Melbourne Business School.

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Mr Matthew Beale Chief Financial Officer

Matthew is a qualified Chartered Accountant with broad corporate accounting and finance experience.

Matthew acted as a permanent and interim CFO of SMEs both publicly listed and privately owned, across agricultural food production and processing, import/wholesaling, port operations, sand mining and processing, IT and online retail clothing. Matthew has worked closely with and reported through to business owners including investment managers, family offices, managing directors and boards of directors. Prior to Matthew’s first CFO role ~15 years ago, he worked in Corporate Finance roles including advisory and corporate banking. Through these roles and acting as CFO, he has gained experience in due diligence and business valuation for acquisition and sales purposes, capital raisings including pre-IPO and private raisings and debt funding for a variety of uses.

Matthew also has an MBA from The Australian Graduate School of Management.

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COMMS GROUP | 4

Comms Group at a glance A leading B2B provider of cloud communications (UCaaS) and IT services to businesses

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We service our customers via
three key divisions
Voice Services
Our goal is to
enhance business
Data Services
agility through Telco services Specialist UCaaS [1] Leading ICT
innovative domestically to provider to managed
the wholesale, services provider
cloud-based
Unified SME/corporate enterprise and with strong
communications Communications mid-market Global MNCs reputation for
Solutions (UCaaS) sectors (>1,000 quality, expertise
and IT solutions
(<1,000 employees) and innovation
employees)
IT Managed Services www.nexttelecom.com.au https://commsgroup.global https://onplatinum.com.au
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1 Unified Communications as a Service (UCaaS): 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.

COMMS GROUP | 5

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Market Data

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CCG.ASX Share Price (AUD)

Share price1	$0.107
Market Capitalisation1	$39.5m
Net debt2	$5.9m
Enterprise Value	$45.4m

1 As at 14 February 2022

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$0.124
$0.114
$0.104
$0.094
$0.084
$0.074
$0.064
$0.054
$0.044
$0.034
$0.024
COMMS GROUP | 6
Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22
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2 Calculated using cash balance as at 31 December 2021

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+

September 2021

• Partnership with Vodafone Fiji

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

• Guidance upgrade to annualised revenue of $50m+ and annualised EBITDA of $7m+

COMMS GROUP | 7

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Products & Services Overview

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A highly focused B2B telco 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

• • Mobile voice/data plans

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

SME/Corporate sector (Up to 1,000 employees

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Unified Comms Solutions (UCaaS)

Managed IT services

• 24x7 IT Managed services

• • Provision of ICT hardware

• Industry leading Global Microsoft Teams calling (Direct Routing)

• Security services

• Range of value-added applications

• Cloud based services (Azure, VMWare)

• Contact Centre

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

• Call Recording

• Call analytics

• •

• SMS messaging with Desktop as a service •

• integration to MS Backup as a service Teams

• SIP & MS Teams calling services wholesale

• Call Termination Services

• DIDs/Telephone numbers

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COMMS GROUP | 8

Leading global Microsoft Teams calling provider Comms Group provides a world leading international calling experience

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Comms Group has added a number of key products to its key Unified Communications offering, including:

Contact Centre for Microsoft Teams 1 Native contact centre for Microsoft Teams. Intuitive and powerful web administration.

Call Recording for Microsoft Teams

• Call Recording for Microsoft Teams

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

Call Analytics for Microsoft Teams

• 3 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 | 9

Comms Group Global Network

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

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COMMS CHOICE WORLDWIDE NETWORK

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

COMMS GROUP | 10

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OnPlatinum acquisition – entering IT services market

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Acquires a leading provider of ICT[1] services with a highquality 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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Adds ~$16m in total group revenue, a ~45% increase on current business revenue

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Strengthens Comms Group’s position in the corporate mid-market[2]

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Expands the Company’s domestic footprint into QLD

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Base EBITDA contributions of $2m[3] (incl. synergies) and expected to grow overtime

1 ICT refers to Information Technology (IT) services as well as Communications Services. 2 For Comms Group, Corporate Mid-Market refers to larger organisations with typically 500+ employees and monthly spend (MRR) of typically > $5,000. 3 Annualised EBITDA contribution.

COMMS GROUP | 11

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Strategic Rationale

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Consistent with the Company’s strategy of pursuing near term accretive acquisition opportunities

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Expansion of domestic footprint

• Provides access to

• customers in QLD and NSW via onPlatinum’s services to SME and

• corporate mid-market

• New base in QLD with significant resources and capabilities

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Transformational acquisition

• Adds ~$16m in total group revenue,

• representing a ~45% increase on current group revenue

• Full year FY22,

• underlying EBITDA

• guidance upgraded to $5m to $5.5m which includes 5 months trading from onPlatinum

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Extension of service offerings

• Delivers a high-quality corporate customer base

• Broadens Comms

• Group’s product set into the IT services market

• Extension of offerings to existing client base via onPlatinum’s

• managed IT services and cloud offerings

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Consistent with M&A strategy

• Targets expanding

• offerings & client base

• Post-acquisition,

• annualised revenue is expected to be over

• $50m and annualised underlying EBITDA of $7m+ including

• expected synergies from onPlatinum[1]

1 Based on full year contributions from all businesses acquired over the past 12 months

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COMMS GROUP | 12

onPlatinum business overview

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Trading via the onPlatinum and Tango Technology businesses

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Managed services

Domestically to the SME/Corporate sector Managed services, provision of hardware, professional and security (Up to 1,000 employees) services

~ 54% of revenue

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Data services

Wide Area Network (WAN) maintenance and services, WAN provisioning and SDWAN offerings

~ 11% of revenue

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Cloud services

Desktop as a service, Office 365 services, Windows cloud services, and Backup as a service

~ 25% of revenue

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Voice services

A fully supported PBX hosted system combining traditional phone systems, VOIP and cloud computing

• ~ 10% of revenue

• A strong reputation for quality, expertise and innovation

• An award-winning business with a demonstrated history of sustainable growth

• Infrastructure services that support over 55,000 requests per month – with only 4,500 that require human involvement

• ~500 customers with average revenue per customer (ARPU) of circa $3,000 per month

• Aims to have customers on longer term contracts of 3+ years

• Servicing all capital cities and headquartered on the Gold Coast with over 60 employees

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COMMS GROUP | 13

onPlatinum partners with industry leaders A client base that has grown to ~500 clients with 7500 end-points globally, since 2012

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One of just 14 Australian businesses authorised and approved by Microsoft to build third party hosted solutions privately

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COMMS GROUP | 14

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Financial metrics

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COMMS GROUP | 15

Key financial highlights Increased scale and continued profit growth

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FY21 Revenue FY21 EBITDA [1] FY 21 Gross Profit FY21 Gross Margin
Up 30% Up 23% 49%
Up 20%
YoY growth to $25.2m YoY growth to $3.2m YoY growth to $11.4m Up from 47% YoY [2]
Annualised revenue [3 ] Annualised EBITDA [1,3 ]
expected to be expected to be
>$50m >$7m
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1 Underlying EBITDA excludes net interest, tax, non-cash share LTIP costs, rent, depreciation, amortisation and business, integration & restructuring costs. 2 Gross Margins excluding acquired businesses

3 Annualised underlying revenue & EBITDA including all acquisitions finalised during the year and the recent acquisition of OnPlatinum Australia

COMMS GROUP | 16

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A demonstrated history of performance

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Revenue Underlying EBITDA [2]
$7.0m +
$50.0m +
119%
$25.2m $3.2m
$21.0m -8% $2.5m
$19.3m
317%
$0.6m
FY19 FY20 FY21 Pro Forma FY All
FY19 FY20 FY21 Pro Forma FY All
Businesses 1
Businesses1
98%
28%
31%
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Strong revenue growth with high gross margins of nearly 50% and continued increase in EBITDA

1 Annualised revenue & EBITDA of all businesses including onPlatinum based on current run-rate of all businesses 2 Underlying EBITDA excludes net interest, tax, non-cash share LTIP costs, rent, depreciation, amortisation and business, integration & restructuring costs.

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COMMS GROUP | 17

A diversified revenue stream

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Revenue by service type (in $million)
$25m
$4.9m
$20m
$2.3m
$5.5m
$15m
$4.2m
$10m
$14.7m
$12.6m
$5m
$0m
FY20 FY21
Voice (2) Data Managed Services
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2 Including UCaaS and Cloud PBX - Teams Calling UCaaS MRR has increased >100% Year on Year

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COMMS GROUP | 18

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Strategy and Outlook

COMMS GROUP | 19

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Comms Group strategic imperatives

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Extend our services in the corporate midmarket sector with a full ICT service offering

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Become a key UCaaS provider throughout the APAC region and globally, servicing the wholesale and enterprise (MNC) 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

“We are singularly focussed on continuing our growth journey and enhancing business agility through innovative cloud communications & IT solutions”

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COMMS GROUP | 20

Board

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John Mackay Independent NonExecutive Chairman

Over 15 years’ experience as chairman and director of major listed and unlisted companies across the

communications, utilities, health, construction and education sectors.

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Peter McGrath CEO and Managing Director

Peter’s business career spans 30 years in telecommunications, ICT and corporate advisory, with over 15 years in senior leadership positions.

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Ben Jennings Non-Executive Director

Ben has spent almost 18 years as an accountant working in both commercial and public practice roles in both Australia and the United Kingdom.

.

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Claire Bibby Independent NonExecutive Director

A highly experienced lawyer with over 25 years’ experience as general counsel, Executive and NonExecutive Director with ASX, multinational, private and NFP organisations.

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Ryan O’Hare Non-Executive Director

Ryan’s telecoms career began in 1993 when cofounding telecommunications service provider corpTEL Communications. corpTEL rapidly became one of the largest privately owned B2B telecom groups in Australia until its sale to AAPT (TPG) in 1998.

COMMS GROUP | 21

Glossary

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Term	Definition
Cloud Communications	The provision of key communications services from cloud servers based in data centres and 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. Comms Group operates 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.
CTS	Call Termination Services – provision of a service by wholesale service providers to terminate voice calls in different markets or 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 the most common forms of data services in the SME and corporate mid-market. Comms Group operates a domestic Layer 2 (data) and Layer 3 (internet) network with key Points of Presence (PoPs) in Sydney, Melbourne & Brisbane and aggregates 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 WANs using lower-cost and commercially available Internet access. SD-WAN is replacing traditional data 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.
Unified Communications (UCaaS)	A communications 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. Comms Group is a leading provider of MS Teams calling with a global network and offering.
**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, 15 Feb 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 forwardlooking 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 https://commsgroup.limited

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COMMS GROUP | 23

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COMMS GROUP LIMITED (ASX: CCG)

COMMS GROUP | 24 This document has been approved by the Board of Directors