#1Megaport Investor Presentation NOVEMBER 2020 Megaport Limited | ACN 607 301 959 | ASX: MP1 &#2Important 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/. A summary of Megaport's 5 year Historical KPIs and metrics to Jun-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 Level 3 825 Ann Street Fortitude Valley Queensland 4006 Contact: Steve Loxton Investor Relations Megaport Limited +61 412 595 133#3About Megaport Business Update Innovation INVESTOR PRESENTATION About Megaport Megaport 3#4ABOUT 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 Terms Providers Fixed capacity Flexible terms, month to month contract Neutral, one-stop shop featuring all service providers Locked-in long term contracts Limited service providers Ease of Use Intuitive portal to manage network Multiple emails, calls to vendors, and contracts Megaport 4#5ABOUT MEGAPORT Growing Global Ecosystem 13 North America 3 10 11 7 13 9 Mexico Guatemala Cuba EMEA Asia Pacific Norway 10 Laos 2 Japan Estonia Cambodia Philippines Latvia 2 Lithuania 8 Indonesia 3 6 Bela Papua New Guinea 9 16 17 2 22 6 A 5 2 Australia United Arab Emirates 14 4 Serbia 15 A Italy 3 10 13 3 m Countries Cities Installed Enabled Countries Cities Installed Enabled Countries Cities Installed Enabled 2 84 184 380 17 32 106 202 5 16 95 120 Megaport Enabled and In-Build Data Centres X Two or more Megaport Enabled and In-Build Data Centres Megaport 5#6ABOUT MEGAPORT Connecting the Ecosystem 1,980 Customers 30 100 Unique Data Centre Operators Megaport's Unique Value Proposition 360+ Service Providers Pulsant Business Unlimited Scalable and on demand Canon BHP The Washington Post accenture Suez AutoNation NEC + tierpoint SUNGARD® AVAILABILITY SERVICES™ RagingWire DATA CENTERS An NTT Communications Company Multicloud connectivity 8 Private and Secure DIGITAL REALTY Flexible Terms aws Microsoft Azure ORACLE Google Cloud Cloud SAP NUTANIX IBM Cloud salesforce Q Alibaba Cloud rackspace technology OVHcloud CLOUDFLARE Megaport 6#7ABOUT MEGAPORT The Network Effect Megaport Service Connections Ports Services 30 June 2017 30 June 2018 30 June 2019 30 June 2020 Service Connection Types 18% 24% 21% 19% Direct Public Cloud 45% 14% 58% 62% 68% Internet Exchange 21% 19% 31% Private Connection Megaport 7#8ABOUT MEGAPORT Industry Growth Trends Enterprise Cloud Service Spend (US$B) 400 300 266.4 227.8 200 100 0 2019 2020 308.5 2021 354.6 2022 Total of: BPaaS, PaaS, SaaS, Cloud Management & Security Services, Source: Gartner, 2019 Enterprise Cloud Strategy 1000+ Employees 6% 1% 93% Multicloud Single Public Source: Flexera 2020 State of the Cloud Report Multicloud Breakdown Single Private 6% Multiple Public 87% Hybrid Cloud 125%: 3 year CAGR of Megaport customers connecting to multiple clouds Megaport 8#9ABOUT MEGAPORT Selection of Major Customers Transport P ENGIE ING BANK Brambles BLACKROCK amazon vodafone MAJOR LEAGUE BASEBALL MOODY'S News Corp Australia MIZUHO accenture NSW NENT for NSW NTT Communications Go the Distance. USTRALIA RED CROSS gettyimages salesforce DBS SAP Ω facebook New York Public Library lululemon athletica Australia Pacific Airports Schlumberger of catholicon BUREAU VERITAS BOEING TSystems HGC GLOBALUNICATIONS CHEP A Brambles Company snowy hydro Bupa AON ZUELLIG PHARMA CAPITAL GROUP HALLIBURTON making healthcare more accessible BHP NEC Uber Singtel technicolor voxbone RE APPLE Sca catholic healthcare WORLD 中国电信 & FedEx NXP Air Liquide CHINA TELECOM TREASURY FRAMESTORE Link your destination. REA Group GENERAL sara DYNAMICS SUNPOWER 中国投资有限责任公司 CRCL CHINA INVESTMENT CORPORATION 香港| HONG KONG INTERNATIONAL 國際機場| AIRPORT JCDecaux Lendlease mastercard. Rabobank seek Brookfield indeed T one search. all jobs. TESLA BART Hydro Québec KARMA Disney ebay American Airlines T Deutsche Telekom Telstra Suez BRISBANE CITY SJJ OCBS SAN JOSE WATER CORPORATION Chevron UGRO AYA FUJITSU Microsoft eDF MONSTER Health Care TOYOTA renewables Universität Stuttgart FLIGHT COLUMBIA UNIVERSITY CENTRE Ramsay IN THE CITY OF NEW YORK THE GLOBAL GOOD FUND >>> Megaport 9#10ABOUT MEGAPORT 100 Unique Data Centre Operator Partners @Tokyo 123 colocity cologi colt DCI Data Centers DigiPlex 1623 FARNAM 365 DataCenters 5G Technology Humanized networks Data Centre Services □ CORESITE amnet TECHNOLOGY SOLUTIONS CyrusOne. Cyxtera DP edgeconnex FACILITIES DIGITAL REALTY FLEXENTIAL FUJITSU IBM INAP Level (3) ONNECT COMMUNICATIONS GlobalConnect GLOBAL SWITCH Internet Provider Berlin ... EQUINIX Green Mountain beanfield METROCONNECT BRESCO BROADBAND Internet-Telephone - Data Center CAVERN Chorus TECHNOLOGIES DATA BANK DATACOM Datacenter DATASITE LIMITED e-shelter Struxture evoque DATA CENTERS data center solutions hkcolo Ⓡ HE HKT iPrimus IRON MOUNTAIN" iPH Interactive I/P/B/ macquarie TELECOM GROUP maincubes SECURE DATACENTERS interxion MARKLEY myLoc NEC NTT NTT DATA Trusted Global Innovator QTS RACKS RagingWire DATA CENTERS An NTT Communications Company NYI oneAsla 亞洲脈絡 * revera ROGERS DATA CENTRES OvertheWire ROOT Data Center HIGH INTEGRITY IT INFRASTRUCTURE Sparknz Speedbone VANTAGE™ DATA CENTERS VOCUS communications STREAM DATA CENTERS STTelemedia SUNGARD AVAILABILITY SERVICES O VOLTA CHNGE webair Central London's Data Centre vodafone Secure. Managed. Scalable. phoenixNAP GLOBAL IT SERVICES pipe networks Netrality Data Centers' Host Networks datacentre CITEC datait FICOLO e k see Data Centres Cloud Connectivity NEXTDC Advantage Tomorrow, Together KDDI noris network Pulsant Q9 Business Unlimited SCOTT DATA Center SGX== UNSTOPPABLE WAYS TO MOVE FORWARD tierpoint POLARIS DATA ENTRE SABEY switch Data Centers SCALE MATRIX TELEHOUSE TELEPOINT colocation westin building WOWRACK EXCHANGE Telia YourDC Colo Megaport 10#11About Megaport Business Update Innovation INVESTOR PRESENTATION Business Update Megaport 11#12BUSINESS UPDATE Revenue Performance FY20 Asia Pacific FY20 North America Europe $20.6M $7.3M 54% FY19: $13.3M FY20 $26.3M $12.7M 94% FY19: $13.6M FY20 $11.1M $2.9M 36% FY19: $8.2M Global FY20 $58.0M $22.9M 66% FY19: $35.1M Note: Growth rates are calculated using the actual $ values. Megaport 12#13BUSINESS UPDATE Growth Trends 19% QoQ 4% QoQ $5.7M $5.4M 2% QoQ $5.8M Ecosystem richness drives greater service connection opportunities Growth in services indicates overall customer usage on the Network Increased Services per Port drives greater MRR1 growth and increased Revenue per Port MRR¹ has grown to $5.8M, up 42% from September 2019 12% QoQ $4.6M 16,712 18,145 11,812 $4.1M 15,531 10,945 13,914 10,156 12,815 8,360 9,051 6,333 5,767 5,375 4,863 4,455 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 No. Ports No. VXC+MCR +IX --Monthly Recurring Revenue 1. MRR is monthly recurring revenue (excluding one-off and non-recurring revenue) for the last month of the relevant quarter. Monthly Recurring Revenue¹ $4.1M SEP 2019 $5.8M SEP 2020 Megaport 13#14BUSINESS UPDATE Company Highlights Q1 FY21 +5% Total Installed Data Centres² 366 385 215 +9% Cloud Onramps 197 $ +5% Normalised Monthly Recurring Revenue³ $5.7M $5.9M 30 JUN 2020 30 SEP 2020 30 JUN 2020 30 SEP 2020 30 JUN 2020 30 SEP 2020 +7% Total Number of Customers 1,842 1,980 +10% +9% Total Number of Services4 Total Number of Ports 5,767 6,333 16,712 30 JUN 2020 30 JUN 2020 30 SEP 2020 30 JUN 2020 30 SEP 2020 18,145 30 SEP 2020 1. Percentage growth rates refer to increase in Sep-20 compared to Jun-20 2. Installed Data Centres are Data centres in which Megaport has a Point of Presence with physical networking hardware. 3. Monthly Recurring Revenue (MRR) is revenue (excluding one-off and non-recurring revenue) for the last month of the quarter. Normalised MRR was calculated using Jun-20 FX rates. Reported MRR was $5.8M, which was 2% higher than Jun-20 MRR of $5.7M. 4. Total Services comprises of Ports, Virtual Cross Connections (VXCS), Megaport Cloud Router (MCR), and Internet Exchange (IX) Megaport 14#15BUSINESS UPDATE Company Highlights Q1 FY21 Leading Cloud Partners NEW Q1 FY21 CLOUDFLARE ADDED OCT-20 OVHcloud aws Microsoft Azure Google Cloud Cloud Onramps 18 215 NEW TOTAL Total Enabled Data Centres¹ 33 702 NEW TOTAL IBM Cloud salesforce SAP ORACLE Cloud Cloud Regions Megaport Marketplace Alibaba Cloud rackspace NUTANIX 8 117 360+ technology. NEW TOTAL 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. Megaport 15#16BUSINESS UPDATE Growth Q1 FY20 30 JUN 20 1,980 385 400 366 2,000 1,842 300 200 100 1,500 1,000 500 0 0 Installed Data Centres 5% 0 Revenue Growth Growth in Ports and Services per data centre directly increases Annualised Revenue Customers +7% Annualised Revenue² $67.8M JUN 2020 $69.4M SEP 2020 $1.6M / 2% 30 SEP 20 8,000 20,000 6,333 16,712 5,767 6,000 15,000 4,000 2,000 0 Ports +10% 10,000 1. Total Services comprises Ports, Virtual Cross Connections (VXCS), Megaport Cloud Router (MCR), and Internet Exchange (IX) 2. Annualised Revenue is MRR for the last month of the relevant period multiplied by 12. 3. Figures do not add due to rounding 5,000 18,145 Ports 0 Total Services 1 +9% per Installed DC 15.8 JUN 2020 16.4 SEP 2020 0.73 / 4% Megaport 16#17BUSINESS UPDATE Megaport Cloud Enablement 215 Total Onramps Available Cloud Regions aws Microsoft Azure 1Q FY21 Increase: 18 +9% Total Onramps Asia Pacific (Sydney) Australia East Asia Pacific (Hong Kong) Australia South East - Asia Pacific (Singapore) East Asia Microsoft Azure 48 Asia Pacific (Tokyo) Amazon Web Services 46 EU (London) Google Cloud 32 EU (Ireland) Oracle Cloud IBM Cloud Cloudflare 26 20 EU (Frankfurt) EU (Paris) Asia Pacific (Osaka) Southeast Asia Japan East Japan West UK South France South Germany North 16 EU (Stockholm) AWS GovCloud (West) 14 US East (Ohio) Germany Central North Europe (Ireland) West Europe (Amsterdam) Rackspace 11 US East (N.Virginia) Switzerland North Salesforce 9 US West (N.California) Switzerland West US West (Oregon) Norway East Alibaba Cloud 8 Canada (Central) Norway West Nutanix 6 SAP 5 NUTANIX Alibaba Cloud 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 Google Cloud 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) IBM Cloud salesforce SAP APAC South (Sydney) APAC North (Tokyo) US East US West EU Central London UK Tokyo Australia (Sydney) Europe (Frankfurt) US East (Ashburn) US East (Sterling) US West (Chandler) rackspace technology Washington DC Dallas Chicago Hong Kong London Frankfurt Sydney ORACLE® Cloud 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) CLOUDFLARE Washington DC Dallas Chicago Hong Kong London Frankfurt Sydney 117 Total Cloud Regions San Francisco Santa Clara Ashburn Asia Pacific SE1 (Singapore) Asia Pacific SE2 (Sydney) CN-Hong Kong EU (London) US West 1 (Silicon Valley) EU (Germany) 1Q FY21 Increase: 8 +7% US East 1 (Virginia) US East (DC) US South (Dallas) Megaport 17#18BUSINESS UPDATE Customer Cohort Trends Average Services per Customer Cohort Age Year 7 20.9 Year 6 14.8 20.1 Year 5 11.1 17.8 16.3 Year 4 8.6 13.1 13.2 12.9 Year 3 6.7 8.5 10.0 10.2 11.0 Year 2 5.0 6.3 7.3 7.6 7.8 6.6 Cohort Age Average Monthly Revenue per Customer ($) Year 7 3,155 Year 6 2,637 5,785 Year 5 2,303 3,723 4,437 Year 4 1,696 2,689 3,288 4,055 Year 3 1,324 1,695 2,454 2,847 3,598 Year 2 1,240 1,274 1,624 2,027 2,528 2,759 Year 1 2.3 3.3 4.0 4.0 4.0 4.4 4.6 Year 1 433 666 672 1,131 1,249 1,257 2,008 FY14 FY15 FY16 FY17 Customer Cohort Year FY18 FY19 FY20 CAGR¹ 44% 43% 42% 48% 66% 50% FY14 FY15 FY16 FY17 Customer Cohort Year FY18 FY19 FY20 CAGR¹ 39% 54% 60% 53% 70% 119% Average Services per Customer² 9.1 +17% Customer spend increases over time as a result of service uptake and adoption Note: Yearly cohorts are customers acquired in a given reporting year 1. Compound average growth rate for each customer cohort is calculated for the period from end of Year 1 to 30 June 2020. 2. At 30 June 2020; percentage represents growth compared to 12 months earlier 3. Represents June 2020 MRR divided by total customers at 30 June 2020; percentage represents movement compared to 12 months earlier Average Revenue per Customer³ $3,068 +27% Megaport 18#19Ports BUSINESS UPDATE Growth in Customers and Ports Customers 0 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 2,400 160 11:38 123 116 123 1,777 1,842 1,679 1,800 1,584 120 1,490 1 367 91 87 1,277 90 94 95 98 77 1,161 1,200 1,038- 951 60 62 860 55 783 7.38 676 621 45 600 40 50 10 80 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Customers Increase in Customers Trendline for Net Increase in Customers 1. Total Services comprises of Ports, Virtual Cross Connections (VXCS), Megaport Cloud Router (MCR), and Internet Exchange (IX) at period end. 2. Monthly Recurring Revenue (MRR) is revenue (excluding one-off and non-recurring revenue) for the last month of the period. 0 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 8,000 800 6,333 5,767 566 6,000 5.375 600 44099 4,000 22620 2,755 3,026 33384 3,668 324 4,455 386 4,863 408 392 400 271 22.354 2,000 1,479 116793 1939 2.259 195 235 200 70 0 0 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Ports - Increase in Ports - Trendline for Net Increase in Ports Net Increase in Ports Megaport 19 Net increase in Customers#20BUSINESS UPDATE Historical Financial Performance Group A$M¹ Margin Trends¹ 6 4 2 0 -2 -4 Jun-16 Jun-17 Jun-18 Jun-19 Jun-202 Revenue Gross Margin Normalised EBITDA Normalised Group Margins¹ Jun-16 Jun-17 Normalised profit after direct network cost margin Normalised EBITDA margin (93%) n.m. 5% (215%) Jun-18 19% (120%) Jun-19 41% Jun-20² 55%2 (49%) (29%)² 1. All figures are for the month of June 2. Figures for Jun-20 are normalised for reclassification of hosting charges and backdated cross connection charges. Excluding the impact of AASB16, Normalised profit after direct network cost margin for the month of Jun-20 would be 46% and Normalised EBITDA margin would be (39%). 3. 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. Normalised Group profit after direct network cost 23 margin has continued to expand as Revenue growth has outstripped growth in direct network costs Normalised Group EBITDA² margin has significantly improved following a strong contribution by APAC, EMEA turning regional EBITDA positive in Q4 FY20, and a reduction in regional EBITDA losses in NAM Megaport 20#21About Megaport Business Update Innovation INVESTOR PRESENTATION Innovation Megaport 21#22INNOVATION Platform Evolution 2014 Data Centre Enabled Customers A Elastic Interconnection Service Provider Ecosystem Data Centre Enabled Customers laaS / PaaS A SaaS Megaport Software Defined Network Port Marketplace Megaport Cloud Router Megaport Virtual Edge™ Cloud to Cloud Connection MSPs / NSPs 2018 Network as a Service Born in the Cloud Customers 2020 Megaport Connected Edge Born in the Cloud Customers Service Provider Data Centre Enabled Ecosystem Customers laaS / PaaS A SaaS laaS Infrastructure as a Service, PaaS = Platform as a Service, SaaS = Software as a Service, MSP = Managed Service Provider, NSP = Network Service Provider *MVE is under development with anticipated launch in 2QFY21 Service Provider Ecosystem laaS / PaaS A SaaS MSPs / NSPs MSPs / NSPs Customers with Branch Offices Megaport 22 22#23INNOVATION Megaport Connected Edge Model Cloud Connect ૦ ૦′ OC oc ос Enterprise Megaport Enabled Data Centre Multicloud & Cloud-to-Cloud - - 0 Megaport SDN Public Cloud Provider א (₫) (A Branch Enablement Branch Offices € Megaport Virtual Edge *under development with anticipated launch in 2QFY21 Megaport Enabled Data Centre Public Cloud Providers Branch Offices Data Centre to Data Centre Megaport 23 Megaport Enabled Enterprise Data Centre Megaport Cloud Router Enterprise Megaport Enabled Data Centre Megaport SDN Megaport Enabled Enterprise Data Centre Public Cloud Providers Agile networking methodology enabling end-to-end, on-demand connectivity#24INNOVATION Megaport Virtual Edge Overview MVE will integrate Megaport's platform with various networking technologies including SD-WAN Branch Locations ייייי API Integrations Cisco SD-WAN SD-WAN Provider 2 SD-WAN Provider 3 NFV Edge Services Branch Locations MVE laas / PaaS Megaport SDN SaaS Megaport Ecosystem 360+ Service Providers 200+ Cloud Onramps 700+ Enabled Data Centres MSPs / NSPS ... Megaport Portal Private Cloud Megaport Enabled Data Centres End-to-end Setup. Provisioning. Policy. Traffic Control, Visibility *MVE is under development with anticipated launch in 2QFY21 Extends reach of Megaport platform Cisco SD-WAN first MVE use case • Enables branch office connections • API for future technology support Extends enterprise network edge • Activate on demand network devices • End-to-end provisioning Megaport 24#25Thank you ASX: MP1 On the Web megaport.com/investor megaport.com/media-centre Social f /megaportnetworks in @megaport @megaportnetwork Megaport Limited | ACN 607 301 959 | ASX: MP1 &