FY20HalfYearResultsPresentation26February2020

CommsChoice GroupLimited(ASX:CCG)

ThisdocumenthasbeenapprovedbytheBoardofDirectors.

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ThematerialinthispresentationisasummaryofCommsChoiceGroup’s(CCG)activitiesandresults,andiscurrentatthedateofpreparation,26February2020.FurtherdetailsareprovidedintheCompany’sfullandhalfyearaccountsandresultsannouncementsreleasedtotheASX.

Norepresentation,expressorimplied,ismadeastothefairness,accuracy,completenessorcorrectnessofinformationcontainedinthispresentation,includingtheaccuracy,likelihoodofachievementorreasonablenessofanyforecasts,prospects,returnsorstatementsinrelationtofuturematterscontainedinthepresentation(“forward-lookingstatements”).Suchforward-lookingstatementsarebytheirnaturesubjecttosignificantuncertaintiesandcontingenciesandarebasedonanumberofestimatesandassumptionsthataresubjecttochange(andinmanycasesareoutsidethecontrolofCCGanditsDirectors)whichmaycausetheactualresultsorperformanceofCCGtobemateriallydifferentfromanyfutureresultsorperformanceexpressedorimpliedbysuchforward- lookingstatements.

Unduerelianceshouldnotbeplacedonforward-lookingstatementsandexceptasrequiredbylaworregulation,CCGassumesnoobligationtoupdatetheseforward-lookingstatements.Tothemaximumextentpermittedbylaw,CCGanditsrelatedcorporations,Directors,officers,employeesandagentsdisclaimanyobligationsorundertakingtoreleaseanyupdatesorrevisionstotheinformationinthispresentationtoreflectanychangeinexpectationorassumptionsanddisclaimallresponsibilityandliabilityfortheseforward-lookingstatements(includingwithoutlimitation,liabilityforfaultornegligence.)

Thispresentationprovidesinformationinsummaryformonlyandisnotintendedtobecomplete.Itisnotintendedtoberelieduponasadvicetoinvestorsorpotentialinvestorsanddoesnottakeintoaccounttheinvestmentobjectives,financialsituationorneedsofanyparticularinvestor.

DuecareandconsiderationshouldbeundertakenwhenconsideringandanalysingCCG’sfinancialperformance.AllreferencestodollarsaretoAustralianDollarsunlessotherwisestated.

Tothemaximumextentpermittedbylaw,neitherCCGnoritsrelatedcorporations,Directors,officers,employeesoragents,noranyotherperson,acceptsanyliability,including,withoutlimitation,anyliabilityarisingfromfaultornegligence,foranylossarisingfromtheuseofthispresentationoritscontentsorotherwisearisinginconnectionwithit.

Certainfinancialdataincludedinthispresentationmaybe“non-IFRSfinancialinformation”underRegulatoryGuide230Disclosingnon-IFRSfinancialinformationpublishedbyASIC.[Thenon-IFRSfinancialinformationinthispresentationmayincludeunderlyingprofitaftertax].CCGbelievesthisnon-IFRSfinancialinformation,whereincluded,providesusefulinformationtousersinmeasuringthefinancialperformanceandconditionsofCCG.Thenon-IFRSfinancialinformationmeasuresdonothavestandardisedmeaningsprescribedbyInternationalFinancialReportingStandardsand,therefore,maynotbecomparabletosimilarlytitledmeasurespresentedbyotherentities,norshouldtheybeconsideredasanalternativetootherfinancialmeasuresdeterminedin

accordancewithInternationalFinancialReportingStandards.Unduerelianceshouldnotbeplacedonanynon-IFRSfinancialinformation.

ThispresentationisnotandshouldnotbeconsideredasanofferoraninvitationtoacquiresharesinCCGoranyotherfinancialproductanddoesnotandwillnotformanypartofanycontractfortheacquisitionofshares.

Thispresentationshouldbereadinconjunctionwithotherpubliclyavailablematerial.FurtherinformationincludinghistoricalresultsandadescriptionoftheactivitiesofCCGisavailableonourwebsitewww.commschoice.com

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1HFY20 Results

StrongreturntoprofitabilitywithEBITDAof$1.5mwhichcompareswithpcpEBITDAof$0.1m.

Underlying*EBITDAof$1.3m.

Revenueof$9.7mwhichis$1mlowerthanpcp.Oneoffrevenuedeclinedby$1.2mduetohigherone-offitemsfromkeycustomerprojectsinFY19,whilstrecurringandusagerevenueactuallyincreasedby$0.2m.

NPATof$1.5mwhichcompareswithNPATlosspcpof$0.7m.

Positiveoperatingcashflowof$0.4m- excludingrestructuringcosts$1.4m.

Capexof$0.3minperiod.

Cashatbankof$1.9mat31Dec2019.$0.2mdebt.

*UnderlyingEBITDAexcludesnetinterest,non-cashLTIPcosts,depreciationandamortizationandincludesrentalexpensesin2020.F

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1HFY20 Highlights

BusinessRestructure-AnnouncedtoASXJune2019

Complete

TargetedCostSavingsofCirca

$2M

Delivered

RestructuredSalesTeamwithfocusonindirect

last6mths

Strong1st Halfsalesdealssigned>$100kMRR

EnhancedWebsite&OnlineOrdering

Capability

Phase1completedDec2019

ReturnBusinesstoProfitability

StrongEBITDAandNPAT1HFY20

StrongCustomerServiceandKeyCustomer

RelationshipsReinforced

Signedaddendumwithlargestcustomerwithfixed

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FinancialPerformance 1HFY20

$M 1HFY20 1HFY19

Revenue- Oneoff/installfees- Servicefees

9.70.59.2

10.71.79.0

Costof Sales (5.1) (5.9)

GrossMargin 4.6 4.8

Opex (3.1) (4.1)

RestructuringCosts - (0.6)

EBITDA 1.5 0.1

Underlying*EBITDA 1.3 0.7

NPAT 1.5 (0.7)

5

25%

62%

13%

RevenueBreakdown1HFY20

Data

Voiceinc.SIPandCTS

ManagedServices

• Strongreturntoprofitabilityin1HFY20• $2.2mincreaseinNPATcomparedwith1HFY19

*UnderlyingEBITDAexcludesnetinterest,non-cashLTIPcosts,depreciationandamortizationandincludesrentalexpensesin2020.1H2019excludesrestructuringcosts.

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BalanceSheet 31Dec2019

$m Group 31Dec2019 30June2019

Cash 1.9 0.4

Total assets 19.3 15.7

Borrowings 0.2 0.4

Total liabilities 6.5 6.3

Net assets 12.8 9.4

Equityattributabletomembersofthe parent

12.8 9.4

KeyHighlights• Strongbalancesheetwith

$1.9mcashatbankendofDec2019

• Taxlossesof$3.4mavailableforuse(equivalenttoDTAof$950k)

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KeyProductandSystemsInitiatives– Last6months

Majorrefreshofwebsitepluson-lineorderingcapabilityintroducedwithlaunchDec19.Includedarevampofourproductofferingsandpricepoints.

EnhancementofCommsChoice’sGlobalCloudPhoneinfrastructure– additionalPoPsandenhancedcapabilitiesimplementedglobally.

EnhancementofMSTeamsCallingproductset,offeringsandglobalinfrastructure.AdditionalPoPsinstalledandupgradetocoreMSTeamscallingmediagatewaystolatestgenerationandnowprovidingEUandUSAdeployments

Enhancingandreducingongoingcostofcoresystemsplatformswhilstimprovingcapabilitiesandintegration.

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SalesandCustomerServiceInitiatives– Last6months

Restructuredgo-to-marketapproachwith3keychannelstomarketandkeyexecutivesassignedtoheadupeachsegment.

• Business(SME)andDealerSales.• WholesaleandPartnerSales– largermorecomplexpartnersandwholesale

customers.• CorporateSales(midmarketcorporates).

RecenthireofHeadofCorporateSaleswithproventrackrecord.

Stronglevelofnewsalescontractwinsinfirst6mths- newcontractsMRR(monthlyrecurringrevenue)of>$100k.

Wehavebuiltastrongpipelineofqualityprospects.

Strongfocusoncustomerserviceandreinforcingrelationshipwithkeycustomers.

RecentlysignedcontractaddendumwithlargestcustomerwithfixedtermtoQ32022.For

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ExecutiveManagementTeam

Note:AppointmentofMrAdrianLucianoannounced6Feb2020For

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4PillarGrowthStrategy

DomesticGrowth

SMECorporateMidMkt

WholesalePartners

Contactcentre/ITserviceprovider/

Carriers

OverseasGrowth

CorporateMulti-national

Cloudbusinessphone,MSTeamscalling,SD-WANofferings&NBNaccessservices

SIPservices,CTSandcloudbusinessphone&MSTeamscalling.Callcentre

enablement.

GlobalcloudbusinessphoneandMSTeamscallingofferingstomulti-

siteglobalcustomers

StrategicAcquisitions

SMECorporate

SMEtelcoservices,SDWAN&ManagedIT

servicesplayers

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StrongstarttoFY20withfirsthalfprofitperformance

ExpectationsofcontinuedpositiveEBITDAperformancemovingforward

ReaffirmingFY20guidanceofEBITDA$1.8mto$2.2m.

WiththeFY19announcedrestructurenowcomplete,thekeyfocusisonexecutingaprofitablegrowthstrategyandsecuringnewcustomersviaourkeychannelstomarket.

Outlook

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13

Value

Numberofshares(asat19Feb2019) 191.4m

SharePrice $0.062

Marketcapitalization $11.9m

Net(debt)/cash(31Dec2019) $1.7m

EnterpriseValue $10.2m

PerformanceRightson Issue- 50% vestingat12.5cpershare- 50%vestingat20cpershare

16.9m

OptionsonIssue- Exercisableat31.25cents(expireDec2020) 3.5m

Appendix1- CCGInvestorMetrics

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5ICTproviderscametogetherin2017toformCommsChoiceGroup

Compellingmarketopportunity–Technology changes,Cloudservices, NBN rollout

Strongcomplementaryskillsandcapabilitieswithwellarticulatedvalue proposition

Soundplatformforcontinuedgrowth

AleadingproviderofUnifiedCommssolutionswithMSTeamsCallingofferings

DATANETWORK• Multi-carrier

• Fibre,NBN

• Simplify networks

• Connecttothecloud

VOICENETWORKS• Replace legacyISDN&PABX

• Cloudbasedglobalbusinessphone

• GlobalOfficelocationsupport

• MSTeamscalling

• Collaboration&UnifiedComms functionality

MANAGEDSERVICES• SDWAN

• Design,Deliver,OngoingManagementandSupport

• Highavailability,redundancy,greatercontrol

• BetteraccesstoCloudservices

Appendix2– CompanyOverviewF

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Appendix3- CommsChoiceGlobalPOPNetwork

OurglobalPOPnetworkhostedin25locationsaroundtheworld.DeliveringGlobalCloudBusinessPhonePBX+GlobalMicrosoftTeamscalling.

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