MEGAPORT LIMITED — Interim / Quarterly Report 2021

Feb 9, 2021

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Global UpdateMarket Update

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1HFY21 HALF YEAR RESULTS
10 FEBRUARY 2021
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Appendix

Company Financial Business Regional Highlights Performance Update Highlights

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1HFY21 MARKET UPDATE

Company Highlights

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HIGHLIGHTS 1HFY21

Company Highlights 1HFY21

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+11% +11% +11%
Monthly Recurring Revenue [1] Total Number of Customers
$5.7M $6.3M $67.8M $75.0M 1,842 2,043
30 JUNE 2020 31 DEC 2020 30 JUNE 2020 31 DEC 2020 30 JUNE 2020 31 DEC 2020
+16% +15% +5%
Total Number of Services [3]
Total Number of Ports Total Installed Data Centres [4]
16,712 19,278
5,767 6,691 366 386
30 JUNE 2020 31 DEC 2020
30 JUNE 2020 31 DEC 2020 30 JUNE 2020 31 DEC 2020
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1. Monthly Recurring Revenue (MRR) is revenue (excluding one-off and non-recurring revenue) for the last month of the relevant period. 2. Annualised Revenue is MRR for the month multiplied by 12 3. Total Services comprises of Ports, Virtual Cross Connections (VXCs), Megaport Cloud Router (MCR), and Internet Exchange (IX) 4. Installed Data Centres are Data centres in which Megaport has a Point of Presence with physical networking hardware.

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HIGHLIGHTS 1HFY21

Company Highlights 1HFY21

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+12% +7%
Leading Cloud Partners Cloud Onramps Total Enabled Data Centres [1]
NEW 23 220 47 716
1HFY21
NEW TOTAL NEW TOTAL
+10%
Cloud Regions Megaport Marketplace
11 120
365+
NEW TOTAL
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1. Enabled Data Centres is the total of Installed Data Centres plus Extended Data Centres. Extended Data Centres are data centres that can be connected directly to Megaport networking hardware within Installed Data Centres by means of interconnection services offered directly by the data centre campus / facility operator of an Installed Data Centre.

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HIGHLIGHTS 1HFY21

Revenue Performance 1HFY21

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North America Asia Pacific Europe Global
1HFY21 1HFY21 1HFY21 1HFY21
$17.2M $12.3M $6.5M $36.0M
$5.8M 51% $2.9M 31% $1.4M 30% $10.1M 39%
1HFY20: $11.4M 1HFY20: $9.4M 1HFY20: $5.1M 1HFY20: $25.9M
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Note: Growth rates are calculated using the actual $ values.

Appendix

Company Financial Business Regional Highlights Performance Update Highlights

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1HFY21 MARKET UPDATE

Financial Performance

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1HFY21 FINANCIAL PERFORMANCE

Financial Results

					e
	Consolidated Proft & Loss	1HFY21 $’000	1HFY20 $’000	Chang %
	Revenue 36,005 25,856 39 %
	Direct network costs1 (17,782) (12,689) ( 40% )
	Proft after direct network costs1 18,223 13,167 38 %
	Proft after direct network cost margin 51% 51% -
	Operating Expenses (OPEX) (26,898) (23,433) (15%)
	Normalised EBITDA2 (8,675) (10,266) 15%
	Normalised EBITDA margin (24 %) (40%) +16pp
	Depreciation and amortisation expense (10,916) (6,926) (58%)
	Non-operating items & tax3 (18,830) (1,764) (967%
	Net loss for the year (38,421) (18,956) (103%

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Financial Results

For half year ended 31 December 2020

Revenue of $36.0M up 39%

Profit after direct network costs[1] of $18.2M, an improvement of $5.1M

Profit after direct network cost margin of 51%, consistent with 1HFY20

Normalised EBITDA loss of $8.7M, equivalent to -24% of revenue (1HFY20: -40% of revenue)

Note: results include the impact of AASB16 Leases. Refer to the Appendix for a more detailed presentation of the impact of AASB16.

1. Direct network costs comprise data centre power and space, physical cross connect fees, bandwidth and dark fibre, network operation and maintenance, and channel commissions which are directly related to generating the service revenue of Megaport Group. 2. Normalised Earnings Before Interest Tax Depreciation and Amortisation (Normalised EBITDA) represents operating results excluding equity-settled employee costs ($2,645 in 1HFY21, $2,748 in 1HFY20), foreign exchange gains / (losses) (($17,157) in 1HFY21, $742 in 1HFY20) and other non operating expenses (($154) in 1HFY21, $4 in 1HFY20). Including these amounts, EBITDA would be ($28,631) in 1HFY21 and ($12,268) in 1HFY20.

2. Refer to Appendix for more detail

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1HFY21 FINANCIAL PERFORMANCE

Revenue

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1HFY21 1HFY20
$12.3M
$17.2M 34% $11.4M $9.4M
36%
48% 44%
$5.1M
$6.5M
20% $17.2M
18%
48%
Asia Pacific Europe North America
from 1HFY20
REVENUE: $36.0M 39%
from Dec 19
MRR [] : $6.3M 37%
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Financial Results

For half year ended 31 December 2020

Revenue of $36.0M, up 39%, driven by increased usage of services across all regions

48% from NAM 34% from APAC 18% from EUROPE

MRR* was $6.3M for Dec 2020, up 37% vs Dec 2019, driven by increased utilisation of Megaport services globally

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• Monthly Recurring Revenue (MRR) is revenue (excluding one-off and non-recurring revenue) for the last month of the relevant period.

1HFY21 FINANCIAL PERFORMANCE

Operating Costs

		1HFY21 $’000	1HFY21 $’000	1HFY21 $’000	1HFY20 $’000	1HFY20 $’000	Change %
	Direct network costs	17,782					(40%)
					12,689		(40%)
	Proft after direct network costs1 18,223 13,167 38 %
	Employee costs2	20,288					(25%)
					16,202		(25%)
	Professional fees	2,973					(65%)
					1,799		(65%)
	Marketing costs	469					66%
					1,399		66%
	Travel costs	32					98 %
					1,720		98 %
	General and administrative costs	3,136					(36%)
					2,313		(36%)
	Total OPEX	26,898					(15%)
					23,433		(15%)

Financial Results

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For half year ended 31 December 2020

Direct Network costs increased due to a 22% increase in sites deployed, additional cross connects fees to reach the new 64 Cloud onramps added and higher partner commissions in NAM.

Average direct network cost[1] per data centre per month is $7.9k in 1HFY21 ($6.9K in 1HFY20)

Employee costs[2] increased due to investment in headcount to support business growth. Employee costs as a percentage of revenue reduced to 56% from 63% in 1HFY21

Professional fees includes recruitment, tax, and legal services related to global expansion Travel costs and marketing costs decreased due to the impact of COVID-19 General and administrative costs includes increases in insurance costs and costs

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1. Direct network costs comprise data centre power and space, physical cross connect fees, bandwidth and dark fibre, network operation and maintenance, and channel commissions which are directly related to generating the service revenue of Megaport Group. 2. Excludes equity-settled employee costs.

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1HFY21 FINANCIAL PERFORMANCE

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Financial Position

Financial Results

	Financial Results
	Consolidated Financial Position 31 Dec 2020 $’000 30 Jun 2020 $’000 Current assets 157,150 180,335 Non-current assets 67,706 67,821 Total assets 224,856 248,156 Current liabilities (26,514) (24,033) Non-current liabilities (8,178) (12,093) Total liabilities (34,692) (36,126) Equity 190,164 212,030 Cash position 31 Dec 2020 $’000 30 Jun 2020 $’000 Cash at end of the year 144,828 166,877 For half year ended 31 December Current assets include tra receivables of $5.5m ($8.3 June 2020) due to improve collections in 1H which ha resulted in improved aging Total liabilities include the fnance facility of $7.3M o at 31 Dec 2020 ($8.8M at 2020). The facility was inc $20M ($12M at 30 June 2 which $7.6M was undrawn 2020. Cash at 31 Dec 20 $ 144.8M

For half year ended 31 December 2020

Current assets include trade receivables of $5.5m ($8.3m at 30 June 2020) due to improved collections in 1H which has also resulted in improved aging quality.

Total liabilities include the vendor finance facility of $7.3M outstanding at 31 Dec 2020 ($8.8M at 30 June 2020). The facility was increased to $20M ($12M at 30 June 2020) of which $7.6M was undrawn at 31 Dec 2020.

Cash at 31 Dec 2020 $144.8M

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1HFY21 FINANCIAL PERFORMANCE

Operating Leverage (month of December[1] )

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Group (A$ million)

Revenue growth 81% 58% 73% 36%

Margin Trends[1]

Group Profit after direct network cost[2] margin has continued to expand as MRR growth has outstripped growth in direct network costs

Group EBITDA margin has significantly improved as all regions were EBITDA positive in 2QFY21

Dec-16 Dec-17 Dec-18 Dec-19 Margins Dec-20	Dec-16 Dec-17 Dec-18 Dec-19 Margins Dec-20	Dec-16 Dec-17 Dec-18 Dec-19 Margins Dec-20	Dec-16 Dec-17 Dec-18 Dec-19 Margins Dec-20
(16%) 26% 37% 53% Profit after Direct Network Cost Margin % 54 %
Group EBITDA Margin % (120%) (80%) (30%) n.m.	(15%)

Group EBITDA loss narrowed in Dec-20 as all regions were EBITDA positive in 2QFY21

1. All figures are for the month of December

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2 Direct network costs comprise data centre power and space, physical cross connect fees, bandwidth and dark fibre, network operation and maintenance, and channel commissions which are directly related to generating the service revenue of Megaport Group.

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Company Financial Highlights Performance

Business Regional Update Highlights

Appendix

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1HFY21 MARKET UPDATE

Business Update

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BUSINESS UPDATE

Growth in Ports, Services, and Revenue

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MRR growth impacted by movements in foreign exchange rates[ 3]

1. Total Services comprises of Ports, Virtual Cross Connections (VXCs), Megaport Cloud Router (MCR), and Internet Exchange (IX) at period end.

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1. Monthly Recurring Revenue (MRR) is revenue (excluding one-off and non-recurring revenue) for the last month of the period.

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1. Refer to Appendix for details of MRR growth in local currency.

BUSINESS UPDATE

Megaport Cloud Enablement

Available Cloud Regions

220 Onramps

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1HFY21 +23 +12%

sia Pacifc (Sydney) sia Pacifc (Hong Kong) sia Pacifc (Singapore) sia Pacifc (Tokyo) sia Pacifc (Osaka) U (London) U (Ireland) U (Frankfurt) U (Paris) U (Stockholm) WS GovCloud (West) S East (Ohio) S East (N.Virginia) S West (N.California) S West (Oregon) anada (Central) - Australia East - Australia South East - East Asia - Southeast Asia - Japan East - Japan West - UK South - France South - Germany North - Germany Central - West Europe (Amsterdam) - North Europe (Ireland) - Switzerland North - Switzerland West - Norway East - Norway West - Asia Northeast1 (Japan) - Asia Northeast2 (Osaka) - Asia Southeast1 (Singapore) - Australia South East1 (Sydney) - Asia East1 (Taiwan) - Europe West1 (Belgium) - Europe West2 (UK) - Europe West3 (Germany) - Europe West4 (Netherlands) - Europe West6 (Zurich) - North America-Northeast1 (Montréal) - US Central1 (Iowa) - US East1 (South Carolina) - US East4 (Virginia) - US West1 (Oregon) - US West2 (Los Angeles) - UAE North - US Gov Arizona - US Gov Virginia - US Gov San Antonio - US DoD East (Virginia) - US DoD Central (Chicago) - North Central US - South Central US - West Central US - East US - East US2 - West US - West US2 - Canada East - Canada Central	- APAC Sydney - APAC Melbourne - Japan East (Tokyo) - Japan West (Osaka) - EMEA Frankfurt - UK South (Slough) - UK Gov (London) - Switzerland North (Zurich) - US Ashburn - US Chicago - US West Phoenix - US West San Jose - US Gov DC - US Gov PHX - Canada (Toronto) - Canada (Montreal)
	st est ntral on UK - Australia (Sydney) - Europe (Frankfurt) - US East (Ashburn) - US East (Sterling) - US West (Chandler)

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BUSINESS UPDATE

The Network Effect

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Megaport Service Connections
Ports
Services
31 Dec 2017 31 Dec 2018 31 Dec 2019 31 Dec 2020
Service Connection Types
20% 19% 19%
25%
Direct Public Cloud
51% 16% 16% 13%
Internet Exchange 64% 65% 68%
24%
Private Connection
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BUSINESS UPDATE

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Megaport Cloud Router (MCR)

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Average Monthly
MCR Growth
Revenue per Customer [1]
Customer Benefits
$2,791 $5,152 Ease of Use
Non MCR Customer MCR Customer
No Customer Infrastructure Needed
Avg Services per Customer [2]
Real-Time Provisioning
8.9 13.8
92%
Non MCR Customer MCR Customer Global Reach
XX%
Total MCRs Cloud and Service Agnostic
228 382 Cloud to Cloud Networking
At 31 Dec 2019 At 31 Dec 2020
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1. Represents Dec 2020 MRR divided by relevant customer count at 31 Dec 2020 2. At 31 Dec 2020

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BUSINESS UPDATE

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Megaport Virtual Edge (MVE)

MVE Platform Status:

• MVE deployed to 11 major metros, with 10 additional metros to be added in H2 FY21

• MVE platform availability on target: March 31

• VMWare Velocloud SD-WAN integration underway

• Technology Partner pipeline: 50% of SD-WAN market share (source: IHS Markit)

Cisco SD-WAN Integration and Service Offering

• Customer trials underway

• Integrated Cisco Viptela service offering availability: 4QFY21

• Product launch will be featured at Cisco Live! 2021, Cisco’s premiere global conference (30 March to 1 April 2021)

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“This collaboration extends Cisco’s SD-WAN leadership, by offering an ecosystem platform for partners, of which Megaport is the first, to bridge Cisco SD-WAN fabric with the carrier-neutral and software-defined cloud interconnect fabrics.”

Raj Gulani, Senior Director, Product Management Cisco SD-WAN and Cloud Networking

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Company Financial Business Regional Highlights Performance Update Highlights

Appendix

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1HFY21 MARKET UPDATE

Regional Highlights

NORTH AMERICA | ASIA PACIFIC | EUROPE

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REGIONAL HIGHLIGHTS
Growing Global Ecosystem
North America EMEA Asia Pacific Group
Countries
23
Cities
130
Installed [1]
386
Enabled [2]
716
Countries Cities Installed [1] Enabled [2] Countries Cities Installed [1] Enabled [2] Countries Cities Installed [1] Enabled [2]
2 82 184 390 16 32 105 202 5 16 97 124
Megaport Enabled and In-Build Data Centres X Two or more Megaport Enabled and In-Build Data Centres
1. Installed Data Centres are Data centres in which Megaport has a Point of Presence with physical networking hardware.
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1. Installed Data Centres are Data centres in which Megaport has a Point of Presence with physical networking hardware.

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1. Enabled Data Centres is the total of Installed Data Centres plus Extended Data Centres. Extended Data Centres are data centres that can be connected directly to Megaport networking hardware within Installed Data Centres by means of interconnection services offered directly by the data centre campus / facility operator of an Installed Data Centre.

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REGIONAL HIGHLIGHTS
North America
North American Region turned EBITDA Positive in 2QFY21 [ 1 ]
Average Revenue per Port [4]
Total Installed Data Centres Total Number of Customers
$981 -6%
174 184 903 1,039 No. of Ports per Data Centre
30 JUN 2020 31 DEC 2020 30 JUN 2020 31 DEC 2020
15.9 +13%
Services per Port
Total Number of Ports Total Number of Services [2]
2.8 0%
2,453 3,014 6,762 8,293
Services per Customer
30 JUN 2020 31 DEC 2020 30 JUN 2020 31 DEC 2020
8.0 +6%
Monthly Recurring Revenue [3] Profit After Direct Network Cost Margin [4] Port Utilisation [5]
30%
$2.6M $3.0M 38% 42%
Figures as at 31 Dec 2020 (vs 30 Jun 2020)
JUNE 2020 DEC 2020 30 JUN 2020 31 DEC 2020
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1. North America reported positive EBITDA on a regional basis for 2QFY21. This is before an allocation of Corporate overheads. 2. Total Services comprises of Ports, Virtual Cross Connections (VXCs), Megaport Cloud Router (MCR), and Internet Exchange (IX) 3. Monthly Recurring Revenue (MRR) is revenue (excluding one-off and non-recurring revenue) for the last month of the relevant period 4. MRR divided by number of Ports at reporting period end date. 5. Ports sold/used divided by total Ports available

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REGIONAL HIGHLIGHTS

NAM MRR[1] Growth in USD

NAM MRR Growth Trends

MRR in USD (000) MRR in AUD (000)

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+26% +15%
Impact of appreciation
in AUD/USD
exchange rate
9%
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Whilst MRR in NAM has increased by 26% from Jun-20 to Dec-20 in USD, the appreciation of the Australian dollar has reduced this to 15% in AUD See Appendix for more details.

Jun-20 MRR Dec-20 MRR

North American MRR growth was adversely impacted by the 9% appreciation in the AUD

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1. Monthly Recurring Revenue (MRR) is the recurring revenue (excluding one-off and non-recurring revenue) for the last month of the quarter. 2. Exchange rates are the average rate for the last month of the quarter.

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REGIONAL HIGHLIGHTS

Operating Leverage (month of December[1] )

North America (A$ million)

Revenue growth n.m. 88% 117% 43%

Margin Trends[1]

The significant investment in network footprint and sales capabilities in NAM has lift in profit after direct network cost[2] margin.

Strong revenue growth has seen NAM reach regional EBITDA breakeven in 2QFY21

Margins	Dec-16	Dec-16	Dec-17	Dec-18	Dec-19	Dec-20
Profit after Direct Network Cost Margin %		n.m.	(21%)	8%	38%	42%
Regional EBITDA Margin %		n.m.	(106%)	(83%)	(10%)	9%

1. All figures are for the month of December

2. Direct network costs comprise data centre power and space, physical cross connect fees, bandwidth and dark fibre, network operation and maintenance, and channel commissions which are directly related to generating the service revenue of Megaport Group.

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REGIONAL HIGHLIGHTS
Asia Pacific
APAC Region (including Japan) EBITDA Positive in 1HFY21
Average Revenue per Port [4]
Total Installed Data Centres Total Number of Customers
$803 +0%
87 97 783 849
No. of Ports per Data Centre
30 JUN 2020 31 DEC 2020 30 JUN 2020 31 DEC 2020
27.7 -2%
Services per Port
Total Number of Ports Total Number of Services [1]
3.1 +1%
2,452 2,686 7,480 8,260
Services per Customer
30 JUN 2020 31 DEC 2020 30 JUN 2020 31 DEC 2020
9.7 +2%
Monthly Recurring Revenue [2] Profit After Direct Network Cost Margin [3] Port Utilisation [5]
41%
$2.0M $2.2M 72% 68%
Figures as at 31 Dec 2020 (vs 30 Jun 2020)
JUNE 2020 DEC 2020 30 JUN 2020 31 DEC 2020
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1. Total Services comprises of Ports, Virtual Cross Connections (VXCs), Megaport Cloud Router (MCR), and Internet Exchange (IX) 2. Monthly Recurring Revenue (MRR) is revenue (excluding one-off and non-recurring revenue) for the last month of the relevant period. 3. Regional profit after direct network cost margin is normalised for reclassification of hosting charges. 4. MRR divided by number of Ports at reporting period end date 5. Ports sold/used divided by total Ports available

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REGIONAL HIGHLIGHTS

Operating Leverage (month of December[1] ) APAC (A$ million)

Revenue growth 31% 52% 55% 29%

Margin Trends[1]

Strong MRR growth and a significant portion of fixed Direct Network Costs has seen APAC profit after direct network cost[2] margin expand to ~70%. Excluding Japan, APAC profit after direct network cost margin was 72%, and regional EBITDA margin was 43%.

Margins	Dec-16	Dec-17	Dec-18	Dec-19	Dec-20	Dec-20
Profit after Direct Network Cost Margin %	11%	45%	58%	70%	68%
Regional EBITDA Margin %	(86%)	(2%)	12%	34%	36 %

Regional EBITDA margin has expanded as APAC has approached scale.

1. All figures are for the month of December

2. Direct network costs comprise data centre power and space, physical cross connect fees, bandwidth and dark fibre, network operation and maintenance, and channel commissions which are directly related to generating the service revenue of Megaport Group.

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REGIONAL HIGHLIGHTS
Europe
Europe Region EBITDA Positive in 1HFY21
Average Revenue per Port [3]
Total Installed Data Centres Total Number of Customers
$1,145 -12%
105 105 355 386
No. of Ports per Data Centre
30 JUN 2020 31 DEC 2020 30 JUN 2020 31 DEC 2020
9.4 +15%
Services per Port
Total Number of Ports Total Number of Services [1]
2.7 -4%
862 991 2,470 2,725
Services per Customer
30 JUN 2020 31 DEC 2020 30 JUN 2020 31 DEC 2020
7.1 +1%
Profit After Direct Network Cost Margin Port Utilisation [4]
Monthly Recurring Revenue [2]
27%
$1.1M $1.1M 64% 60%
Figures as at 31 Dec 2020 (vs 30 Jun 2020)
JUN 2020 DEC 2020 30 JUN 2020 31 DEC 2020
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1. Total Services comprises of Ports, Virtual Cross Connections (VXCs), Megaport Cloud Router (MCR), and Internet Exchange (IX) 2. Monthly Recurring Revenue (MRR) is revenue (excluding one-off and non-recurring revenue) for the last month of the relevant period 3. MRR divided by number of Ports at reporting period end date 4. Ports sold/used divided by total Ports available

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REGIONAL HIGHLIGHTS

Operating Leverage (month of December[1] )

Europe (A$ million)

Revenue growth 44% 34% 35% 30%

Margin Trends[1]

While overall EMEA margins are higher due to the acquisition of the IX business in 2016, MRR growth is beginning to expand profit after direct network cost[2] margin.

Margins	Dec-16	Dec-17	Dec-18	Dec-19	Dec-20	Dec-20	Dec-20
Profit after Direct Network Cost Margin %	44%	50%	47%	59%	60 %
Regional EBITDA Margin %	(65%)	(137%)	(39%)	(15%)	7%

Regional EBITDA margin has improved in EMEA as customers per DC increases.

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1. All figures are for the month of December.

2 Direct network costs comprise data centre power and space, physical cross connect fees, bandwidth and dark fibre, network operation and maintenance, and channel commissions which are directly related to generating the service revenue of Megaport Group.

26

Summary

COVID-19

The health and wellbeing of our team is our highest priority, with working from home protocols together with the suspension of all travel expected to continue for some time.

The impact on Megaport’s operational and financial performance has not been significant.

Financial position remains strong, with $144.8 million in cash on hand at 31 December 2020.

PLATFORM INNOVATION AND PRODUCT FOCUS

Further API Integrations - SD-WAN platforms, Network Function Virtualization. Successful launch of MVE with SD-WAN in 2HFY21.

PATHWAY TO PROFITABILITY

Megaport is on track to achieve EBITDA breakeven on an exit run rate basis in Fiscal Year 2021. Achieving EBITDA positive in NAM region in 2QFY21 means all regions are EBITDA positive.

2HFY21 focus on Revenue growth and achieving Group EBITDA positive on exit run rate.

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27

Thank you

ASX: MP1

On the Web megaport.com/investor megaport.com/media-centre

Social

/megaportnetworks @megaport @megaportnetwork

Megaport Limited | ACN 607 301 959 | ASX: MP1

Appendix

Company Financial Business Regional Highlights Performance Update Highlights

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1HFY21 MARKET UPDATE Appendix

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ABOUT MEGAPORT

The Leader in Network as a Service (NaaS)

Megaport’s Connectivity Model	Traditional Connectivity
Pricing Pay for what you use, no setup fees	Expensive locked-in pricing model, expensive setup costs
Speed Real-time provisioning (59 seconds)	Long setup times (one week – several months)
Capacity Elastic, right-sized capacity	Fixed capacity
Terms Flexible terms, month to month contract	Locked-in long term contracts
Providers Neutral, one-stop shop featuring all service providers	Limited service providers
Ease of Use Intuitive portal to manage network	Multiple emails, calls to vendors, and contracts

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ABOUT MEGAPORT

Connecting the Ecosystem

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102 Unique Data Megaport’s Unique 365+ Service
2,043 Customers Centre Operators Value Proposition Providers
Scalable and on demand
Multicloud connectivity
Private and Secure
Flexible Terms
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31

ABOUT MEGAPORT

Industry Growth Trends

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Enterprise Cloud Service Spend (US$B) Enterprise Cloud Strategy
1000+ Employees
6% Multiple Public
6%
93%
1%
87% Hybrid Cloud
Multicloud Single Public Single Private
Total of: BPaaS, PaaS, SaaS, Cloud Management & Security Services, Source: Gartner, 2019 Source: Flexera 2020 State of the Cloud Report
Multicloud Breakdown
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Number of Megaport customers connecting to multiple clouds up 7.5 times over 3 years

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32

BUSINESS UPDATE

Framestore: Digital Media Case Study

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Oscar-winning creative studio behind the world’s leading entertainment experiences

• Massively scaling to support data intensive VFX

• Modernised network for demand-based projects

• Multi-cloud and multi-region enablement

• Increased availability and productivity

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“Using Megaport is so easy and consistent everywhere that we no longer have to worry about cloud-based workloads. If anyone asks whether we can connect to a new cloud or between offices quickly, the answer is: Yeah. We have Megaport. It’s done.”

Beren Lewis, Director of Global Systems and Infrastructure Technology - Framestore

https://megaport.com/framestore

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33

BUSINESS UPDATE

Kiwi: Web/Commerce Case Study

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Global travel agency with average of 100 million daily search queries and 40K seats sold daily

• Achieved Cloud-to-Cloud in minutes - including private and public cloud - with MCR

• No physical routers to buy, install, or manage

• ● Successful migration of workloads into a multicloud architecture

• Stable latency over private connectivity between Google Cloud and AWS.

• Restored critical connection in under five minutes during unexpected IPSec tunnel downtime.

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“With Megaport, we know we have dedicated lines — and that’s vital for ensuring reliable levels of latency between clouds, especially when we’re expecting higher volumes of traffic. I don’t have to set up big routers to handle peaks; I can just add bandwidth to our virtual cross connects through the Megaport portal.”

Miloš Vyletel, Staff Engineer, Kiwi.com

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34

APPENDIX 1HFY21 HALF YEAR RESULTS

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Financial Results Im act of AASB16 Leases p

											1HFY20		e
Consolidated Proft & Loss	1HFY21 Reported $’000			AASB16 Adjustment $’000				1HFY21 Pre-AASB16 $’000			Pre-AASB16 Reported $’000	Chang %
Revenue 36,005 - 36,005 25,856 39 %
			-		36,005					25,856 39 %
Direct network costs2 (17,782) (2,686) (20,468) (14,662) (40%)
			(2,686)				(20,468)			(14,662) (40%)
Proft after direct network costs1 18,223 (2,686) 15,537 11,194 39 %
Proft after direct network cost margin 51% 43% 43% -
Operating Expenses (OPEX) (26,898) (595) (27,493) (23,623) (16%)
			(595)			(27,493)				(23,623) (16%)
Normalised EBITDA2 (8,675) (3,281) (11,956) (12,429) 4%
Normalised EBITDA margin (24%) (33%) (48%) +15pp
Depreciation and amortisation expense (10,916) 3,044 (7,872) (4,911) (60%)
Equity-settled employee costs (2,645) - (2,645) (2,748) 4%
Foreign exchange gains / (losses) 3 (17,157) - (17,157) 742 (2412 %
			-		(17,157)					742 (2412 %
Non-operating income/(expenses) (648) 325 4 (324) 348 (193%
		325 4 (324)							348 (193%
Tax beneft 1,620 - 1,620 158 926%
		-			1,620				158 926%
Net loss for the year (38,421) (88) (38,333) (18,840) (103%

Financial Results Pre-AASB16 For half year ended 31 December 2020

Profit after direct network costs 2 of $15.5M improved by $4.3M or 39%

Profit after direct network cost margin of 43%, consistent with 1HFY20

Normalised EBITDA loss of $12.0M improved by 4%, to (33%) of revenue compared to (48%) of revenue in 1HFY20

1. Direct network costs comprise data centre power and space, physical cross connect fees, bandwidth and dark fibre, network operation and maintenance, and channel commissions which are directly related to generating the service revenue of Megaport Group.

2. Normalised Earnings Before Interest Tax Depreciation and Amortisation (Normalised EBITDA) represents operating results excluding equity-settled employee costs, foreign exchange gains and loss on disposal of property, plant and equipment. Including these amounts, EBITDA would be ($28,631) post AASB16 and ($31,912) pre AASB16 (FY20: ($12,268) post AASB16 and ($14,431) pre AASB16).

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1. Foreign exchange losses are mainly attributed to appreciation of AUD against the USD (Average of 0.72 in 1HFY21, vs 0.68 in 1HFY20). Of the $17.2M loss in 1HFY21, $14.3m is related to AUD/USD movement ($10m unrealised loss relating to Intercompany balances between Megaport Limited and Megaport USA, and $4.3m realised loss relating to revaluation of USD cash balances).

35

APPENDIX 1HFY21 HALF YEAR RESULTS

Regional MRR[1] in Local Currency

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Underlying Growth in MRR

Reported growth figures have been volatile over the past four quarters due to significant movements in the Australian

dollar, particularly against the US dollar.

QoQ MRR growth in North America and Europe have been more consistent when measured in local currency[ 2] .

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1. Monthly Recurring Revenue (MRR) is the recurring revenue (excluding one-off and non-recurring revenue) for the last month of the quarter. 2. Exchange rates are the average rate for the last month of the quarter.

36

Important Information

This presentation has been authorised by the Board of Megaport.

Megaport Limited ACN 607 301 959

Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell Megaport securities in any jurisdiction. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or thoroughness of the information, whether as to the past or future. Recipients of the document must make their own independent investigations, consideration and evaluation. The information contained in this presentation is subject to change without notification.

This presentation includes certain forward looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward looking statements. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Megaport. These factors may cause actual results to differ materially from those expressed in the statements contained in this presentation. For specific risks and disclaimers, please refer to the Megaport Placement & Share Purchase Plan presentation lodged with the ASX on 7 April 2020.

All references to “$” are to Australian currency (AUD) unless otherwise noted. For definitions refer to the Glossary for Investors under the Business Overview on the Megaport website.

A summary of Megaport's 5 year historical KPIs and metrics to Dec-20 can be found on our website at https://www.megaport.com/investor/business-overview/. Subscribe for ASX announcements at https://www.megaport.com/investor/#investor-contact

Megaport Limited Contact: Level 3 Steve Loxton 825 Ann Street Investor Relations Fortitude Valley Megaport Limited Queensland 4006 +61 412 595 133