MACQUARIE TECHNOLOGY GROUP LIMITED — Annual Report 2005

Aug 31, 2005

Full Year Results 2005

Agenda

LING THE REAL MARKETING TO BE 2. Revenue Summer KA ATESTARI STRIBUS PARTISTIKS ZEZNUS IR IR ISTAD SALARA 5. Mobiles Business G Singaroke Birshines 7. Firancials 8. Regulatory Developments 9. 2006 Guidanee

Year in Review

• Macquarie is executing on its strategy
• Investments in Metro Access Network, Security, Branding, Data IP expertise & expansion of regional capabilities
• EBITDA profit of \$0.7 million within guidance, reflects investments
• Total service revenues up 1.6% on pcp
• Trend of improving revenue mix continues
• Cash position of \$23.1 million
• Net cash outflow of \$8.7 million, due to capex

Executing strategy within guiderned

Macquarie Telecom - Convergence Strategy

Convergence

• An IP based Metro Access Network
• Meeting customers growing bandwidth needs
• Platform to leverage the increasing convergence of data and voice
• Enhance capacity for product development
• · Improve service delivery, security and end to end customer management

Competitive advantage

• Total service revenue up 1.6% to \$230.5 million
• Total service revenue increases for third consecutive half year
• Voice revenue reduction slows on previous period
• Data business revenue grows 16.0% to \$59.3 million on pop
• Mobile revenue grows 198% to \$12.2 million on pcp
• Singapore holds ground in local currency despite aggressive price reductions

An evolving revenue base - from voice to data

Australian Data Business

Australian Data Business EBITDA

• Data EBITDA loss of \$0.3 million down from profit of \$4.2 million for pcp
• Data EBITDA returns to profitability increasing from a loss \$0.9 million in first half to a profit of \$0.6 million in the second Inahi
• Data profitability impacted by:
• Investments in IP based products and service
• Investment in enhancing depth and level of IP expertise

Investments ofticial to meet customals the reasonally stabilistically and based needs

Australian Voice Business Revenue

Voice revenue reduction slows, underprinted by coole volume

Australian Voice Business EBITDA

• Voice EBITDA of \$8.4 million down 36% on pcp ra
  Li
• Industry wide price pressure impacts voice profitability O
• ACCC decision on FTM access needs to be fully implemented to m
• level competitive playing field

Macquarie Corporate Mobile

• Revenues grow to \$12.2 million up 198% on pcp
• Competitive necessity for bundled solutions
• Integrated mobile billing and reporting
• EBITDA loss improves to \$1.1 million with evolving revenue base

Mobile revenue is growing

Singapore Business

Financials

FY 04
	FY05
22GR9	230.5
1567	1562
2333	20. S
50P)	99A)
24839	924:X:)
789	0à7
887	66 Z I
(00)	(208)
582	m
Dk.	(OG)
(EA)	929 Z
(0.6)	(te:J)
men	íľm
2562	2970
	359

Total costs increase due to investments in inaukeling commitments and interference level of IP expertise

Gross Profit

• Operating cash flow was \$5.3 million (FY04 \$14.0 million) due to increased investment in operating activities
• Net cash outflow of \$8.7 million due to capital investments of \$14.7 million - Metro Access Network, Hosting, IP network and customer growth
• Further investment in security, hosting & IP

Capital investment impacts cash flow as expected

Regulatory priorities in 2006

Mobile Terminating Access Disputes

• Disputes with both Optus and Vodafone are with the ACCC for determination
• Interim pricing set by the ACCC in line with previously published ACCC pricing principals.

Unbundled Local Loop (ULL) Access Pricing

Rates for access to Telstra's copper network offered by Telstra have been determined to be "unreasonable" by the ACCC in the ACCC's recent Draft Assessment. Final assessment is pending.

Regulatory Reform & T3 (cont)

• The package aims to deal with impediments to development of competitive markets, especially Telstra's vertical and horizontal integration and therefore aims to "operationally separate" parts of Telstra's retail and wholesale businesses
• Implementation issues will be worked through for rest of calendar 2005.

Challenging the boundaries

2006 Guidance

• EBITDA for first half FY06 expected to be similar to second half FY05

• Second half FY06 profitability to return to a solid growth curve as our investments begin to deliver profit benefits

Earnings back on growth path

Full Year Results 2005