Geoff Horth, CEO ________ CEO REVIEW. Dear Valued Shareholder, It is my pleasure to present to you a review of a significant and transformational year for Vocus. FY16 was a year in which the Company expanded rapidly through merger and acquisition (M&A) activity, while maintaining an excellent organic growth trajectory. FINANCIAL RESULTS In FY16 we reported revenue growth of 455% to $830.8 million, underlying EBITDA1 growth of 318% to $215.6 million and underlying NPAT1 growth of 461% to $101.7 million. The full year result included an almost full year contribution from the acquisition of Amcom Telecommunications Limited (“Amcom”) and a four month contribution from the M2 Group Ltd (“M2”) business. 8 | VOCUS.COM.AU The result reflects strong earnings growth flowing from the Consumer and Corporate segments of the business in both Australia and New Zealand. The Company continued to report growth in services in operation in key market segments and increased its market share of the growing Australian National Broadband Network (NBN) and New Zealand Ultra-Fast Broadband (UFB) rollouts. As noted in the Chairman's letter, the Board of Directors declared a final dividend of 8.0 cents per share, taking the full year dividend to 15.6 cents per share2, a 388% increase over the previous corresponding period (pcp). The increase in dividends reflects the benefits of recent acquisitions combined with the underlying organic growth of the business which together drove a 244% increase in free cash flow. We move forward with a policy of growing dividends in line with profitability, cash flow and the availability of investment opportunities. CONSOLIDATION OF THE TELCO SECTOR We have been an active participant in the consolidation of the telco sector for some time. M&A activity has been an important element of our growth and our transformation into a full service vertically integrated Trans-Tasman telco. In FY16, we completed two major transactions which have expanded and transformed our company, creating a platform for future growth. In July 2016 we completed the acquisition of Amcom, creating a major national telecommunications infrastructure provider with fibre optic networks and data centre infrastructure across Australia and New Zealand. In February 2016 we completed the merger with M2 creating a fully integrated telecommunications service provider. The merger delivers Vocus a significant presence in two new market segments, small business and consumer, extending our brand family and addressable markets. The M2 brands are leading challengers in the consumer segment in Australia (Dodo, iPrimus) and New Zealand (Slingshot, Orcon, Flip) delivering us a strong and growing position to benefit from the rollouts of the NBN and UFB. On 29 June 2016, we announced the acquisition of 100% of Nextgen Networks, the North West Cable System, and the Australia Singapore Cable development project. Nextgen Networks’ domestic backhaul fibre network will be integrated with our existing metro fibre network creating a national platform further enhancing our competitive position. TEAM Within a few months of the Amcom acquisition, we had aligned processes around performance, remuneration and had moved everyone onto Vocus terms and conditions of employment. On implementation of the M2 merger, we launched to our expanded Team our “Big 5 Benefits”: No Dress Code, Purchased Leave, 5 weeks leave for 5+ years tenure, Anniversary Day Leave (a day off in celebration of another year with us) and a Health and Wellbeing subsidy for everyone. With the understanding that alignment of the Teams is crucial to the success of the Vocus / M2 integration, we leveraged our combined senior leadership team and quickly redeveloped our goals and values, which are a testament to our ambition to build a telco like no other. Our focus remains on empowering our Team Members, doing the right thing by the customer and each other, and delivering returns to our shareholders. Our fantastic Team continued to produce outstanding results during an intense period of transactional activity and integration, many of them working on these projects alongside their business as usual activity. Our Team has demonstrated an exceptional commitment and dedication to the business, as well as adaptability, passion and willingness to ‘have a crack’. For that, I would like to thank them and to reaffirm our commitment to being a great place to work. LOOKING FORWARD There is no doubt that we have a lot to do in the coming years. In amongst our business as usual activities we are focused on the need to bed down recent acquisitions, ensuring that we extract synergy benefits and leverage the opportunities that our expanded platform and scale create. With so much to do, it’s important that we are disciplined about where we allocate our time and energy. Therefore, the business will be focused on three key areas: 1. Grow share of market – invest in expanding our sales teams and distribution networks to take advantage of the growing demand for bandwidth in households and corporates 2. Improve customer experience – simplifying our network, systems and processes to make the customer experience seamless, leverage our deep data to constantly improve our understanding of our customers’ needs. 3. Be a great place to work – use feedback to constantly look for ways to improve our team member experience, understanding of the business goals and alignment on values. At the heart of this strategy is a strong drive to constantly improve the financial performance of the business and returns to shareholders. Thank you for your continued support. I look forward to delivering on our commitment to you. Geoff Horth Chief Executive Officer 1. Underlying EBITDA excludes gains on total return swaps, acquisition and integration costs and other gains/losses. Underlying NPAT also excludes amortisation of acquired intangibles. 2. Excludes special dividend of 1.9cps paid in April 2016 9