#1For personal use only Megaport INVESTOR PRESENTATION QUARTERLY UPDATE - 3QFY23 MEGAPORT LIMITED | ACN 607 301 959 | ASX: MP1 | APRIL 2023#2For personal use only QUARTERLY OVERVIEW OPERATIONAL REVIEW 3QFY23 OVERVIEW OUTLOOK AND GUIDANCE#3For personal use only QUARTERLY OVERVIEW 3QFY23 HIGHLIGHTS | New CEO Announced | Strong March Monthly Recurring Revenue | Cost-out Program on Target | Operational Review Commenced | Improvement in Cash Flow | Normalised EBITDA¹ for 3QFY23 of AU$5.0M Megaport 1. Normalised Earnings Before Interest Tax Depreciation and Amortisation, which represents Reported EBITDA adjusted (reduced) for certain one-off accrual reversals. Reported EBITDA represents operating results excluding equity-settled employee and related costs, foreign exchange gains and losses, gains and and losses on disposal of property, plant and equipment, and certain non-recurring non-operational expenses. PAGE 3#4QUARTERLY OVERVIEW KEY PERFORMANCE INDICATORS (AUD) Incremental KPIs 3QFY23 2QFY23 YTD23 YTD22 Customers 72 39 168 256 Customer Ports¹ 188 368 740 1,323 MCR MVE 34 (4) 71 168 Total Services 20 25 (1) 46 38 607 762 2,312 4,224 For personal use only Summary Financials MRR2 Revenue Reported EBITDA³ Normalised EBITDA4 Megaport 3QFY23 2QFY23 QoQ YTD23 $'M AUD $'M AUD % $'M AUD YTD22 $'M AUD YOY % 14.1 12.4 14% 14.1 9.5 48% 38.1 37.0 3% 108.8 79.1 38% 7.2 2.4 200% 10.6 (12.1) n.m. 5.0 2.4 108% 8.4 (12.1) n.m. 1. Customer Ports exclude consolidation of legacy strategic ports as part of our transition to 100Gb cloud on-ramp interconnections. Net ports additions were 22 in 3QFY23 and 203 in 2QFY23. 2. Monthly Recurring Revenue for the last month of the relevant quarter 3. Reported Earnings Before Interest Tax Depreciation and Amortisation ("Reported EBITDA") represents operating results excluding equity-settled employee and related costs, foreign exchange gains and losses, gains and losses on disposal of property, plant and equipment, and certain non-recurring non-operational expenses. 4. Normalised Earnings Before Interest Tax Depreciation and Amortisation ("Normalised EBITDA") represents Reported EBITDA that has been adjusted (reduced) for certain one-off accrual reversals. UNAUDITED KEY PERFORMANCE INDICATORS FOR THE QUARTER ENDED 31 MARCH 2023 MRR grew 14% QoQ, up $1.7M to $14.1M in March 2023, mostly driven by Cloud VXC repricing Revenue of $38.1M up $1.1M, 3% from 2QFY23 and 38% from 3QFY22. EBITDA³ of $7.2M, 19% of revenue (2QFY23: $2.4M, 6% of revenue) These results add to the continued strengthening of EBITDA³ positive growth, resulting in $10.6M YTD for 3QFY23 PAGE 4#5For personal use only EBITDA ASM QUARTERLY OVERVIEW EBITDA¹ JOURNEY 5.0 2.5 0.0 -2.5 "Scale up, Scale Out" QoQ increase 3QFY23 vs 2QFY23 ווויוון -5.0 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 Megaport 1. EBITDA shown is Normalised Earnings Before Interest Tax Depreciation and Amortisation, which represents Reported EBITDA adjusted (reduced) for certain one-off accrual reversals. Reported EBITDA represents operating results excluding equity-settled employee and related costs, foreign exchange gains and losses, gains and and losses on disposal of property, plant and equipment, and certain non-recurring non-operational expenses. The main drivers in the improvement in quarterly EBITDA include a $1.2M net benefit from the Cloud VXC price increase on existing services, a $1.0M reduction in operational expenditure on events, conferences and travel and a $0.4M reduction in the doubtful debts provision, which was driven by higher collections and a stronger debtor profile PAGE 5#6For personal use only QUARTERLY OVERVIEW OPERATIONAL REVIEW OUTLOOK AND GUIDANCE OPERATIONAL REVIEW#7For personal use only | OPERATIONAL REVIEW OPERATIONAL REVIEW FINDINGS | 'Scale Up, Scale Out' initiative did not yield expected returns from investment in headcount, and increased operational cost Opportunity to improve team cohesiveness and efficiency by centralising more of the Company's core back-office functions to Brisbane HQ Globally geographically dispersed Leadership Team led to reduced interactions and coordination on strategy WFH for main back-office functions has led to less interactions with team members outside immediate circle and more "siloed" approach to thinking Opportunity to significantly improve back-office automation and implement scalable business systems with modest investment, and enforce simple rules around non-standard requests, streamlining business processes Megaport PAGE 7#8For personal use only OPERATIONAL REVIEW BUILDING SALES MOMENTUM | Market demand is still strong, we just need to better focus our resources with the right go-to-market motion and hire more Salespeople in the right areas with the right incentive plan Channel Program has not delivered the targeted return on investment Slowing of Sales momentum is directly correlated with reduction of quota bearing Direct Sales team (down ~50% from a year ago) Accelerating restoration of Direct Sales machine using a combination of recruiting new team members and reallocating channel Sales resources over the next quarter Provide new leading Sales tools and commission plans so the team is better equipped and aligned to company objectives Benefits of the rebuild of Sales pipeline expect to be realised in 2QFY24 and beyond ☐ Incoming CEO has impeccable track record of building high performance Sales teams in the networking and SaaS space Megaport PAGE 8#9For personal use only OPERATIONAL REVIEW ORGANISATIONAL REVIEW IMPACTS | Organisational review is now largely completed Regrettable reduction of 16% of the organisation's team members (50 roles) in April that could not be re-assigned within the organisation Right-sized organisational headcount of 250 people which is more than 10% above pre-COVID levels One-time redundancy charges of approximately $3M to be recognised in 4QFY23 with an estimated reduction in annualised staff costs of $10M commencing in May 2023. Megaport PAGE 9#10For personal use only OPERATIONAL REVIEW CASH FLOW IMPROVEMENT¹ Megaport $30M Improvement to Annualised Cash Flow' COGS Cost-out OpEx Cost-out $30M Cloud VXC Repricing Workforce: $10M Cloud VXC Repricing: $12M Workforce 1. Represents improvement in cash flow from these initiatives only, and does not include cash outflows from the investment in quota bearing direct Sales team and other initiatives. COGS Cost-out: $5M Opex Cost-out: $3M PAGE 10#11For personal use only QUARTERLY OVERVIEW OPERATIONAL REVIEW OUTLOOK AND GUIDANCE OUTLOOK AND GUIDANCE#12பட For perl use only EBITDA OUTLOOK AND GUIDANCE 4QFY23 NORMALISED EBITDA OUTLOOK 10.0 7.5 5.0 2.5 0.0 -2.5 "Scale up, Scale Out" ווויוון 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 (F'cast) Megaport 1. EBITDA shown is Normalised Earnings Before Interest Tax Depreciation and Amortisation, which represents Reported EBITDA adjusted (reduced) for certain one-off accrual reversals and does not include the costs of one-time redundancy charges of approximately $3M to be recognised in Q4 FY23. Reported EBITDA represents operating results excluding equity-settled employee and related costs, foreign exchange gains and losses, gains and and losses on disposal of property, plant and equipment, and certain non-recurring non-operational expenses. 4QFY23 Normalised EBITDA1 is forecast to increase compared to 3QFY23 due to a full quarter impact of the Cloud VXC pricing increase, the impact of the COGS and Opex cost-out programs, and workforce cost savings resulting from the organisational review. 4QFY23 Normalised EBITDA¹ excludes one-time restructuring costs of approximately $3M associated with the organisational review, consistent with the treatment of similar costs in previous quarters. PAGE 12#13For personal use only OUTLOOK AND GUIDANCE EBITDA GUIDANCE As a result of various initiatives designed to improve the Company's operating and financial performance and cash generation, the Company is providing the following guidance on EBITDA¹: Year Market Consensus² EBITDA Guidance (Normalised EBITDA³/ Reported EBITDA4) % Increase (Normalised EBITDA³ vs Market Consensus²) FY23 $9M $16M-18M / $18M-20M FY24 $30M $41M-46M / $41M-46M 78%-100% 37%-53% With this improvement in financial performance and cash flow, and $48M cash at bank at the end of Q3FY23, the Company does not foresee any need to raise additional capital for the normal operation of its business (other than for strategic or opportunistic reasons) Megaport 1. Guidance assumes a foreign exchange rate of AUD 1 to USD 0.67. 2. Market consensus based on Megaport's analysis of the average of broker research analyst estimates as at 24 April 2023. 3. Normalised Earnings Before Interest Tax Depreciation and Amortisation ("Normalised EBITDA") represents Reported EBITDA that has been adjusted (reduced) for certain one-off accrual reversals and does not include the costs of one-time redundancy charges of approximately $3M to be recognised in Q4 FY23. 4. Reported Earnings Before Interest Tax Depreciation and Amortisation ("Reported EBITDA") represents operating results excluding equity-settled employee and related costs, foreign exchange gains and losses, gains and losses on disposal of property, plant and equipment, and certain non-recurring non-operational expenses. PAGE 13#14For personal use only Megaport THANK YOU ASX: ON THE WEB: SOCIAL: MP1 megaport.com/investor megaport.com/media-centre /megaportnetworks in @megaport @megaportnetwork MEGAPORT LIMITED | ACN 607 301 959 | ASX: MP1#15For personal use only 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 on the Megaport website at https://www.megaport.com/investor/business-overview/. Subscribe for ASX announcements at https://www.megaport.com/investor/#investor-contact. Megaport Limited Level 3 825 Ann Street Fortitude Valley Queensland 4006 Contact: Investor Relations Megaport Limited [email protected] Megaport PAGE 15