CHAIRMAN’S LETTER. Dear Shareholders, A year ago we set out to become the third force in corporate telecommunications. Having achieved this, we saw an opportunity to create a fully-fledged telecommunications business and become a major competitive force in this sector in both Australia and New Zealand. We have built a diversified trans-Tasman communications business providing services to business, consumers and government. RECAP OF THE YEAR In the past 12 months, we have gone from being a new entrant in the ASX 200 to securing a position in the ASX 100, with a market cap of approximately $3.5 billion. Capitalising on the vision of the management team and planned strategic direction for the business, we completed the acquisition of Amcom against strong competitor tactics, merged with M2, and announced our intention to acquire Nextgen Networks along with the ASC and the North West Cable projects. FY16 has been a year of significant growth and transformation with revenue up 455% and underlying EBITDA up 318%. We are pleased to declare a final dividend of 8 cents, making a total of 17.5 cents in dividends per share for the year. Our ability to achieve outcomes in pressed timeframes has helped us to deliver strong shareholder growth. By working with a diverse group of talented people, we were able to come together and accomplish incredible results. Vocus is Fast, Focused and Forward-thinking. YEAR AHEAD Looking ahead, we will continue with our system and business integration plans, as well as working hard to achieve our cost and revenue synergy targets. I’m pleased to report we are on track on most of these plans, despite all the diversions created during the acquisitions during the year. 6 | VOCUS.COM.AU Our multiple brand strategy in the Consumer segment is a great differentiator as is our disciplined investment in long term infrastructure. We strongly believe in leveraging the opportunities from our extensive trans-Tasman infrastructure network and the significant growth opportunity from improving our network utilisation. Our trans-Tasman network reach following the acquisition of Nextgen will be better than any other telecommunications company in this part of the world. We have come so far in such a short time and look to next year with great excitement and anticipation. GROWTH Maintaining our strong growth is important, as our industry is growing and changing rapidly. As the demand for bandwidth increases almost daily, it is important we continue to be flexible and agile to best respond to the changing nature of that demand. Reliability, security and flexibility are more important than ever before. Our aim is to lead our industry in these key areas. To do that requires constant investment and smart people. Only a strong growth business at the forefront of technology can deliver those outcomes. We remain committed to growth that is: ➜➜ profitable ➜➜ sustainable ➜➜ risk managed, and ➜➜ within our capabilities As we have said every year before; we believe in removing complexity and delivering simple solutions for our customers. We will use our analytical capabilities to understand and deliver on their needs for the future. I strongly believe the adoption of new technology is an important part of keeping our people in sync with the fast moving world. We embrace innovation, and we will continue to foster this thinking with our people. David Spence, Chairman ________ FUTURE We are well positioned for a seventh year of profitable and sustainable growth. To keep across our news please access www.vocus.com.au/investors. I would like to thank James Spenceley for his remarkable leadership, our executive management team, led by our new CEO Geoff Horth, as well as all our incredible Team Members who have worked tirelessly and made the FY16 year such a success. Thank you again for your investment and interest in Vocus Communications. We have another exciting year ahead. Our vision and goals are clear and we remain committed to being the Most Loved Telco. A core part of our strategy to achieve that goal is to always keep our customers front of mind – they are an integral part of our company and our future. David Spence Chairman We will continue to strive for the delivery of strong returns to our shareholders. We have a dividend policy that is reflective of profitability, cash generation and investment opportunities and maintains our conservative gearing position. To my past and new Board (post M2 merger), a big thanks. Our Board Committees are strong and have delivered the overall governance and risk management that our dynamic company requires. 7