PENTANET LIMITED — Interim / Quarterly Report 2021

Apr 22, 2021

5GG

INVESTOR UPDATE

Q3 FY21 Report

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Page 2 Q3 FY21 Report

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IMPORTANT: You must read the following before continuing.

DISCLAIMER

The information contained in this presentation is confidential any you must not disclose it to any other person without the Company’s prior consent. Summary information in relation to Pentanet Limited.

This presentation contains summary information about Pentanet Limited (ACN 617 506 279) (“Company”), its subsidiaries and their activities which is current as at the date of this presentation, unless otherwise indicated. The information in this presentation remains subject to change without notice, and the Company is not responsible for updating, nor does it undertake to update, it.

Industry data - Certain market and industry data used in connection with or referenced in this presentation, including in relation to other companies in the Company’s peer group, may have been obtained from public filings, research, surveys or studies made or conducted by third parties, including as published in industry-specific or general publications. Neither the Company nor its advisors or their respective representatives, have independently verified any such market or industry data.

Not financial product advice - This presentation, and the information provided in it, does not constitute, and is not intended to constitute, investment or financial product advice (nor tax, accounting or legal advice). This presentation should not be relied upon as advice to investors or potential investors and has been prepared without taking account of any person’s individual investment objectives, financial situation or particular needs. Any investment decision should be made based solely upon appropriate due diligence. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own investment objectives, financial situation and needs and seek legal, accounting and taxation advice appropriate to their jurisdiction. Recipients of this presentation are advised to consult their own professional advisers. An investment in the Company is subject to significant risks, both known and unknown and including (without limitation) risks of loss of income and capital. A number of risks are beyond the control of the Company.

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Any forward-looking statements are also based on assumptions and contingencies which are subject to change without notice and which may ultimately prove to be materially incorrect, as are statements about market and industry trends, which are based on interpretations of current market conditions. Investors should consider the forward-looking statements contained in this presentation in light of those disclosures and not place reliance on such statements. The forward-looking statements in this presentation are not guarantees or predictions of future performance and may involve significant elements of subjective judgment, assumptions as to future events that may not be correct, known and unknown risks, uncertainties and other factors, many of which are outside the control of the Company. As a result, there can be no assurance that actual outcomes will not materially differ from these forward-looking statements. The forward-looking statements are based on information available to the Company as at the date of this presentation. Except as required by law or regulation, the Company undertakes no obligation to provide any additional or updated information or update any forward-looking statements, whether as a result of new information, future events or results or otherwise.

Indications of, and guidance on, future performance are also forward-looking statements, and include statements in this presentation regarding expected or indicative costs, indicative revenues, indicative outputs and anticipated dates. To the maximum extent permitted by law, the Company, its advisors and their respective directors, officers, employees, advisers, agents and intermediaries (together, “Relevant Parties”) disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions, or any change in events, conditions or circumstances on which any such information or statement is based. Nothing in this presentation will, under any circumstances (including by reason of this presentation remaining available and not being superseded or replaced by any other presentation or publication with respect to the Company or the subject matter of this presentation), create an implication that there has been no change in the affairs of the Company since the date of this presentation.

To the maximum extent permitted by law, the Relevant Parties make no representation or warranty (express or implied) as to the fairness, accuracy, reliability, currency, reasonableness or completeness of the contents of this presentation or any other information (whether written or verbal) that the Relevant Parties otherwise provide to the recipient. The recipient may not rely on the contents of the presentation or any information in it in making any decision to invest or acquire an interest in the Company or its assets. To the maximum extent permitted by law, the Relevant Parties are not liable for any direct, indirect or consequential loss or damage suffered (whether foreseeable or not) by any person (whether arising from negligence or otherwise) as a result of relying on this presentation or the information in it, any errors therein or omissions therefrom, or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company, or otherwise in connection with this presentation or the information in it.

Investment risk - As noted above, an investment in the Company’s securities is subject to investment and other known and unknown risks, a number of which are beyond the control of the Company. The Company (nor its related bodies corporate) does not guarantee any particular rate of return or the performance of the Company, nor does it guarantee the repayment of capital from the Company or any particular tax treatment. Prospective investors should make their own enquiries and investigations regarding all information in this presentation, including but not limited to the assumptions, uncertainties and contingencies which may affect future operations of the Company and the impact that different future outcomes may have on the Company.

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Page 3 Q3 FY21 Report

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On-net
customers 42%
in Q3 FY21
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TOTAL SUBSCRIBERS

FINANCIAL HIGHLIGHTS Q3 FY21

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Q1 FY21 8,386
Q2 FY21 9,538
HIGHLIGHTS
Q3 FY21 10,993
GROSS MARGINS REVENUE & GROSS PROFIT
Churn
7% 4% 15% 13%
QoQ QoQ QoQ QoQ
18% 114% 113% 126% 151%
YoY YoY YoY $2.9M YoY YoY
85%
81% $2.5M $2.5M
YTD2020
$2.3M
79% $2.2M
$1.9M
45%
40% 42% $1.30M
$1.05M
$0.90M
-$2.1M
Q1 FY21 Q2 FY21 Q3 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q1 FY21 Q2 FY21 Q3 FY21
GROSS MARGIN FIXED WIRELESS GROSS MARGIN TOTAL SALES REVENUE RECURRING REVENUE GROSS PROFIT
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15% 54% QoQ Fixed Wireless net new subscribers (QoQ)

0.78% $92 Churn ARPU

UNDERLYING EBITDA

55% YoY

YTD2020 YTD2021

EBITDA is a financial measure which is not prescribed by Australian Accounting Standard (‘AAS’) and represents the profit under AAS adjusted for depreciation, amortisation, interest and tax. Underlying EBITDA is EBITDA adjusted to exclude share-based payments, options exercised on behalf of employees and IPO cost.

-$1.2M

Gross Profit Margin is a measure of profitability that shows the percentage of revenue that exceeds the cost of goods sold (COGS). Cost of goods sold consist of network, carrier and hardware expenses.

Page 4 Q3 FY21 Report

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Further acceleration for Perth powered internet.

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• “ This is truly a once in a generation opportunity that we

” Terragraph network technology at a far more rapid scale .

• Stephen Cornish, Managing Director of Pentanet

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Page 5 Q3 FY21 Report

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Key Global Figures
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Key Regional Figures from Pentanet 18 RTX servers to be split
across two deployments
in PER and SYD
Development of Pentanet’s
GeForce NOW subscriber
Members Globally Unique Usernames Registered portal is underway, enabling user
to 31 March 2021 engagement through gamification.
Breakdown
of members:
Underpowered PC
Since 26 Feb 2021
Android
Mac 24,300
65%
iOS
0
TV (NVIDIA Shield)
27 Jan 26 Feb 31 Mar
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5%
7%
8%
15%
65%
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Page 6 Q3 FY21 Report

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PENTANET.GG

Esports Highlights

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MSI Average
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Page 7 Q3 FY21 Report

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ONGOING STRATEGY

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EXPAND NETWORK INCREASING POTENTIAL MARKET

GROW OUR SUBSCRIBER BASE

• ⬟ Deployment of large-scale mmWave wireless

⬟ Introduce new technology to increase on-net coverage

telecommunications network

⬟ Increase available speeds to 1Gbps for more fixed wireless customers

⬟ Deliver high-quality customer experience

⬟ Limit churn

⬟ Line of sight to tower no longer required for every subscriber

• ⬟ Customers become advocates

• ⬟ Competitive service offering

• ⬟ Increase market penetration with greater fixed wireless coverage across Perth metro area

⬟ Targeted marketing and media strategy

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INCREASE MARGINS $

• ⬟ Attract more off-net subscribers to higher margin on-net services

• ⬟ Diversify product offering (VOIP, consumer electronics)

• ⬟ NVIDIA GeForce NOW Alliance Member bringing cloud gaming service to Australia

• ⬟ Continue development of premium brand for alignment to speed and quality

THANK YOU

2/8 Corbusier Place Balcatta WA

+61 8 9466 2672 investors@pentanet.com.au

pentanet.com.au/investor-centre ASX: 5GG

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