Melbourne IT Ltd ABN 21 073 716 793 ACN 073 716 793 Level 4, 1-3 Smail Street Ultimo NSW 2007 Australia www.melbourneit.info

29 May 2017

MELBOURNE IT LTD (ASX: MLB)

2017 Annual General Meeting Chair’s Address and CEO’s Presentation

In accordance with ASX Listing Rule 3.13.3, attached is a copy of the Chair’s Address and the CEO’s presentation to be delivered at the Annual General Meeting which will be held today.

As previously advised, the AGM will be webcast live. The webcast will be accessible via this URL link http://webcast.openbriefing.com/3690. Participants will need to register to access the webcast. The webcast will be activated 15 minutes prior to the start of the meeting.

A recording of the event will be available on our corporate website via this link: 2017 Annual General Meeting later today.

For any queries, please contact:

Edelvine Rigato Company Secretary

E: edelvine.rigato@melbourneit.com.au T: +61 2 9215 6164 M: +61 400 830 992

ENDS.

About Melbourne IT

Melbourne IT Group is a publicly listed company with offices in Melbourne, Sydney, and Brisbane. Our purpose is to “fuel our customers’ success through the smart use of technology”. We aspire to be Australia’s most impactful digital technology partner. By 2020 we aim to have fuelled the success of over one million businesses. Our customers will love us, our people will be our most passionate advocates, and our investors will be rewarded. Melbourne IT operates two businesses marketed under 7 brands.

The SMB of Melbourne IT provides Australian small and medium businesses with online marketing solutions. It has over 450,000 direct customers, provides services to over 700,000 Australian businesses, and generates revenue over $90M. The SMB business operates under five brands: Melbourne IT, WebCentral, Netregistry, and TPP Wholesale and Domainz.

The Enterprise Services Business (ES) of Melbourne IT is the leading end-to-end provider of digital solutions for the corporate and government market with revenues over $70M. ES have expertise in customer-focused design, software engineering, data analysis and management of flexible digital solutions across foundational technologies: Mobile, Data and Analytics, Cloud and Security. ES is based in Sydney, Melbourne and Brisbane and has a blue chip customer base. It operates under three brands, Melbourne IT, Infoready and Outware.

Visit: www.melbourneit.com.au

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http://webcast.openbriefing.com/3690http://melbourneit.info/investor-centre/investor-calendarhttp://melbourneit.info/investor-centre/investor-calendarmailto:edelvine.rigato@melbourneit.com.auhttp://www.melbourneit.com.au/

Melbourne IT Ltd 2017 AGM

Chair’s Address 2016 was a significant year for Melbourne IT. Under CEO Martin Mercer’s leadership, with the support of the Board and the former Chair Simon Jones, the turnaround of the business is complete, and both our Enterprise Services (ES) and Small and Medium Business (SMB) divisions exited 2016 growing at the top and bottom lines. Martin’s presentation will speak in more detail on the transformation journey that the business embarked upon more than three years ago. Delivering Shareholder Value

We are pleased to deliver another solid result for shareholders, growing revenue and underlying EBITDA, adding new customers, and providing consistent improvement in shareholder return. To illustrate, over the last three years, Melbourne IT Group revenue has grown at a compound annual growth rate of 18%, increasing from $103.4m in 2013 to $168.4m in 2016, underlying EBITDA has grown at a CAGR of 70% to $28.4m, and underlying EPS has grown at a CAGR of 24% to 14.2 cents. These results confirm that our consistent execution against a clearly defined strategy is driving strong growth in the business which the market has now recognised. Considering the financial results for 2016, the Board of Melbourne IT was pleased to support a 60% increase in our dividend to 8.0 cents per share, now fully franked. We remain committed to delivering ongoing value for our shareholders. I would also like to take this opportunity to affirm our guidance for 2017. Following our acquisition of WME, we expect underlying EBITDA of between $37.5M and $41.5M. Changes to the Board

I was appointed Chair in February of this year and have taken the reins from Simon Jones, who is now retiring from the Board after being a key member of our team for more than a decade. Simon was Chair from November,2009 and led the Board through a time of dramatic change in leadership and direction. The Melbourne IT of today is now unrecognisable from the Melbourne IT of old and Simon’s contribution will be sorely missed. I would like to take this opportunity to sincerely thank Simon for his hard work, dedication, and focus during his time with us and wish him all the best for the future.

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18 months ago, under Simon’s leadership, the Board began a refresh program to facilitate succession and close out any gaps in its skill mix. To that end, in 2016 the Board recruited John Armstrong, the former CFO of SEEK, to replace Rob Stewart as Chair of the Audit & Risk Committee and myself to replace Simon as Chair. As the next step, we have recognised that with our rapidly growing ES business we lack specialist enterprise skills on the board. We are in the final stages of recruiting a director with those skills, and hope to announce that appointment in the near term. Thanks

Since joining the Board, I have observed growing excitement in the business as the tangible evidence of our transformation’s success becomes evident. I have also observed more and more external validation, excitement, and rising confidence from analysts and the market generally that our transformation is real and we are no longer the Melbourne IT of twenty, ten, or even five years ago. This transformation would not have been possible without the contribution and dedication of the Board, Martin and his Leadership Team, and our people across the company. I am lucky to be serving on a Board made up of members who are all equally committed to seeing this company succeed and who dedicate an enormous amount of time and energy to making sure we have the right strategy and direction in place to continue on our growth trajectory. Martin and his Leadership team have done an outstanding job turning the company around over the last three years and have a laser-like focus on ensuring that Melbourne IT continues to deliver for our shareholders, our customers, and our people. We owe a tremendous amount to our people at all levels across the business who work with our customers every day. Right across the business spectrum, from small businesses to large governments and enterprises, our people are helping our customers connect with and understand their own customers more effectively. Our people are specialists in the contemporary technologies that enable these connections and understanding. They are the backbone of our company and we would like to thank them for the work they do every day. I would also like to express our appreciation to you, our shareholders, for your continued support. You’ve accompanied us on this transformation journey and I am confident that we will continue to deliver shareholder value over the coming years. Looking Ahead

When it comes to our future, I’m passionate about Melbourne IT taking its place among the leading technology players in Australia. I think there’s a tremendous opportunity for Melbourne IT to take a leadership position in what is currently a highly-fragmented market. In order to do that, we have to have an exciting employee value proposition, and we are working on that and our remuneration and incentive schemes this year to help make Melbourne IT a great place to work for top technology talent. I would like to see Melbourne IT rank alongside Google and Atlassian as one of the most exciting places to work that develops, rewards and engages its employees and attracts and creates a diverse workforce.

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CEO’s AddressMartin Mercer

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Purpose and Vision

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• We fuel our customers’ success through the smart use of technology.

• We aspire to be Australia’s most impactful digital technology partner.

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Priorities: mission accomplished

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We have achieved the three priorities that underpinned our turnaround. The future is all about growth.

Priority Status Comment

Return SMB to Growth

We have repaired the legacy domains and hosting business and succeeded in developing a new “managed marketing solutions” business. Solutions revenue now accounts for 20% of total SMB revenue and is growing at 56%pa. SMB enters 2017 growing at the top and bottom lines.

Accelerate the Transformation of ES

ES is well on its way to becoming Australia’s most impactful digital technology partner for the enterprise market. Over the past three years ES has tripled in size. In 2016 revenue grew 73% while EBITDA grew 87%. ES expects to enjoy strong growth in 2017.

Realise Synergy Savings

The acquisitions of Netregistry (Feb 2014) and Uber Global (April 2015) were expected to deliver combined synergy savings of $10M ($5M by the end of 2015, another $2.5M in 2016, and the final $2.5M in 2017). At the end of 2016 we had realised $8.5M of savings ($1.0M more than originally targeted) and have clear line of sight to the remaining $1.5M.

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FY 2016 Result: highlights

Year Ended 2016 2015 ⇳ % Guidance

31 December 2016 Range Achieved

Revenue $168.4m $150.3m 12%

Reported EBITDA $28.2m $16.5m 71% $26m - $28m

Underlying EBITDA $28.4m $22.0m 29% $28m - $30m

Underlying EPS (cents) 14.2 11.6 22% 14.0 – 15.0

Dividend (cents per share) 8.0 5.0 60% 55% - 75% 75%

Figures throughout this document may not be exact due to rounding and include non-IFRS financial information that is relevant for users understanding the underlying performance.

• Consistent execution against a clearly defined strategy is driving strong growth.

• 68% growth in EBITDA H2 on H1. • Strong growth supports 60% increase in dividend (now

fully franked).

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Growth: consistently strong growth

Underlying financial information presented adjusts for one-off and non-recurring costs and the pro forma impacts of acquisitions and divestments made in the financial period as outlined in the previous slides.

3.7 3.6 5.2 11.2 2.1

9.2 11.3

17.0

0

10

20

30

2013 2014 2015 2016

Reported EBITDA ($m)

5.8

12.816.5

28.2

3.7 6.1 10.0 10.6 2.1

10.2

12.0 17.8

0

10

20

30

2013 2014 2015 2016

Underlying EBITDA ($m)

5.8

16.3

22.0

28.4

3.9 3.1 4.6 4.6 2.3 5.8

6.19.7

0

10

20

2013 2014 2015 2016

Underlying NPAT ($m)

6.28.9

10.7

14.3

4.7 3.3 5.0 4.6

2.8 6.2 6.5 9.6

0

10

20

2013 2014 2015 2016

Underlying EPS (cents)

7.59.5

11.5

14.2

H1H2

3YR CAGR

69%

3YR CAGR

70%

3YR CAGR

24%

3YR CAGR

32%

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Shareholder Return: 75% TSR over the past 3 yrs

TSR calculated over the three years to 2016 as calculated by independent party, Mercer ConsultingThe MLB share price based on the daily open price from 1/01/2008 until 19/05/2017.

74.7% TSR

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FY 2017 Outlook: strong growth to continue

Measure Range ⇳ %1 Comment

Underlying EBITDA $37.5M - $41.5M 39% Guidance has been revised up (original guidance range was $31M - $34M) following the acquisition of WME Group.

Underlying EPS $0.17 - $0.19 27% Guidance has been revised up (original guidance range was $0.15 - $0.17) following the acquisition of WME Group.

Dividend 55% - 75% N/A Dividends in FY 2017 will be determined by reference to a payout ratio in the range of 55% to 75% of reported NPAT.

1. Change on last year calculated from the mid-point of the guidance range and last year’s actual result.NB. Figures throughout this document may not be exact due to rounding and include non-IFRS financial information that is relevant for users understanding the underlying performance.

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ES: strategy and execution

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ES: facts and figuresSuccessful reinvention. A provider of complete digital solutions with for large companies and government customers with more than 400 employees across Melbourne, Sydney, and Brisbane

Strong Growth, underlying EBITDA growing at +20%pa

Expertise: Outware founders retained; InfoReady founders retained; AWS Foundation partner in Australia, with multiple AWS accreditations.

Culture of Innovation and Customer Excellence

Enterprise Grade. Blue Chip customer base – 40% of the ASX top 30 are customers. Significant recurring revenues and repeatable project revenue. Governance and balance sheet suitable for Enterprise & Government customer partnering

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Digital Solutions: an attractive and strongly growing market

Annual Growth Rate 2015Key: Source: IBM 2015

$1.4b Market$6.5b Market

+

Complete Digital Solutions

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Execution: solutions driving growth

SPLIT BY SERVICES

SOLUTIONSINFRASTRUCTURE

2014$27.8M

25%75%

2015$40.7M

9%91%

2016$70.4M

3%

97%

• Low value data centre infrastructure churn has bottomed out

• ES continues to successfully execute on its digital solutions strategy

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Execution: capturing revenue synergies

June2016

Data & Analytics(Infoready)

Mobile(Outware Mobile)

Cloud & Managed Services

May 2017

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ES Customers: marquee brands

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SMB: strategy and execution

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SMB: facts and figuresMore than 300 employees with offices in Melbourne, Sydney, Brisbane and Canberra

Largest Australian domain name and web hosting provider, with more than 40% market share

We have helped fuel the success of more than 600,000 Australian SMB customers

A portfolio of SMB brands:

Growing web solutions business – the key to revenue growth and value creation

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5Solutions Revenue (20%) – managed marketing services comprising web design and digital marketing

Components Revenue (80%) – domain names, web hosting and emailF

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SMB: growth from solutions

SOLUTIONS MARKET

• Customers prepared to pay for solutions that meet a need or solve a problem

• Highly fragmented market with no major competitor in Australia

• Market growing at 20%+ per annum• Average revenue per user (ARPU) $100-$1,000pm

90%

COMPONENTS MARKET

• Domains, web hosting, and email are key components for SMBs

• MIT No. 1 in the Australian market but highly competitive with large competitors driving commoditisation

• Market growing at low single digits• Average revenue per user (ARPU) of $5-$50pm

10%

* Revised market size following independent study from Growth Solutions Group, 2016.

Commissioned by Melbourne IT.

COMPONENTS $200M 10%

SOLUTIONS$2B 90%

SMB Growthfrom Solutions

TOTAL SMB DIGITAL SOLUTIONS

MARKET SIZE = $2.2B*

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Execution: revenue growth

85%

15%

80%

20%

2015

REVENUE SPLIT BY SEGMENT

SOLUTIONSCOMPONENTS

20160

2

4

6

8

10

12

14

16

18

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

$M

Direct Revenue - Components vs Solutions

Solutions Components

Acquisition of Uber Global

Acquisition of Netregistry

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WME Group: facts and figuresFounded in 2008 WME Group is one of Australia’s leading providers of search engine optimisation & digital marketing services for small to medium enterprises:• Leading skills and competencies in the rapidly growing/lucrative digital advertising industry • Extensive expertise in search engine optimisation (SEO), search engine marketing (SEM), social

media advertising & web design & development. A full service digital agency• Has experienced exceptional growth due to world-leading innovation. Highly systemized operation

that has resulted in superior customer acquisition, outstanding client results and employee retention• Ongoing revenue, low customer churn, track record of successfully expanding customer base

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150 employees with offices in Melbourne and Auckland. Voted Top 100 Coolest Places to work in Australia

Impressive history of strong growth, EBITDA growing at >50% p.a. over recent years.Numerous awards for growth and innovation

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MLB1 WME Group Combined

Customer MetricsCustomers ~3,5002 ~1,9002 ~5,400

ARPU ~$1,800pa ~$12,000pa ~$5,400pa

CapabilitiesWeb Design

SEO

PPC

Social

AccountManagement

WME & MLB: a powerful combination

The acquisition of WME Group

accelerates the transformation of

MLB’s SMB division to a

leading provider of managed marketing solutions

1. Solutions customers only, MLB has another ~500K legacy domains and hosting customers (“Components” customers) who could in the future become solutions customers.

2. Active customers.For

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85%

15%

FY15

Transformation: WME accelerates the transition of SMB to a solutions business

80%

20%

REVENUE SPLIT BY SEGMENT

SOLUTIONSCOMPONENTS

FY16

MLB SMB Direct

MLB SMB Direct with WME Group

67%

33%

MLB SMB Direct

FY16

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Summary1. Turnaround complete;

• $8.5M of synergy savings and clear line of sight to the remaining $1.5M,• SMB exits 2016 with good organic growth driven by strong performance in new

solutions products• ES tripled in size in past three years, in 2016 revenue grew 73% and EBITDA 87%

2. Strong FY 2016 results validate “digital solutions” strategy;• Revenue up 12%, reported EBITDA up 71%, NPAT up 91%, and underlying EBITDA up

29%

3. Continuation of strong growth expected in 2017;• Underlying EBITDA of $37.5m - $41.5M, up 39% YoY• underlying EPS of 17c – 19c, up 27% YoY

4. Strong free cash flow driving debt reduction and increased returns;• Debt peaks in June and strong cash generation sees it reduce progressively over 2017• Final dividend of 6c up 50% on 2015, total dividend of 8c up 60% on 2015

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GlossaryCapex Capital expenditure

ES Enterprise Services, a division of the Melbourne IT Group focusing on cloud, mobile and data analytics services for enterprise customersFY15 Financial year ended 31 December 2015FY16 Financial year ended 31 December 2016FY17 Financial year ending 31 December 2017

IDNR International Domain Name Registration business, sold by Melbourne IT to Tucows Inc. in March 2016MIT Melbourne IT Group, consisting of Melbourne IT Limited and its controlled entitiesNCI Non-controlling InterestNRG Netregistry Pty Ltd, acquired by MLB in February 2014

SMB Solutions A division of the Melbourne IT Group focusing on web services to small to medium sized businesses

Reported EBITDA Earnings before Interest, Taxation, Depreciation and Amortisation. A non-IFRS financial metric included in this presentation that is relevant for users understanding the underlying performance of the Melbourne IT Group

Reported NPAT Net Profit after Taxation. Prepared on a statutory basis in accordance with the Australian equivalents of International Financial Reporting Standards

Reported EPS Earnings per Share. Prepared on a statutory basis in accordance with the Australian equivalents of International Financial Reporting Standards

Underlying EBITDA

Earnings before Interest, Taxation, Depreciation and Amortisation. A non-IFRS financial metric included in this presentation that is relevant for users understanding the underlying performance of the Melbourne IT Group. Underlying EBITDA adjusts for one-off and non-recurring costs and the pro forma impacts of acquisitions and divestments made in the financial periodF

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Glossary (cont’d)Underlying NPAT

Net Profit after Taxation - A non-IFRS financial metric included in this presentation that is relevant for users understanding the underlying performance of the Melbourne IT Group. Underlying NPAT adjusts for one-off and non-recurring costs and the pro forma impacts of acquisitions and divestments made in the financial period

Underlying EPS

Earnings per Share. A non-IFRS financial metric included in this presentation that is relevant for users understanding the underlying performance of the Melbourne IT Group. Underlying EPS adjusts for one-off and non-recurring costs and the pro forma impacts of acquisitions and divestments made in the financial period

Solutions Product offerings within SMB Division, including search engine optimisation, website development and social media marketingCAGR Compound annual growth rateUber/ Uber Global Uber Global Pty Ltd, acquired by Melbourne IT in April 2015Outware Outware Systems Pty Ltd, acquired by Melbourne IT in June 2015InfoReady InfoReady Pty Ltd, acquired by Melbourne IT in March 2016WME Group WME Group, acquired by Melbourne IT in May 2017EGM Executive General ManagerQLD DET Queensland Department of Education and TrainingYoY Year on year

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20170529 AGM Cover & Chair's AddressMIT_2017_AGM_CEO_Deck