Infratil 2019 Sydney Investor Day

Infratil Limited 5 Market Lane, PO Box 320, W ellington, New Zealand Tel +64-4-473 3663 www.infratil.com



15 October 2019



Infratil 2019 Sydney Investor Day

Infratil Limited ("Infratil") has released the presentation materials for its Investor Day held today in
Sydney, Australia.

Infratil’s objective is to keep its stakeholders well informed about how its businesses are performing
and how their delivery on strategic objectives is progressing. Today’s Investor Day in Sydney
addresses Infratil’s investments in CDC Data Centres and Vodafone NZ.


Any enquiries should be directed to:

Mark Flesher, Investor Relations, Infratil Limited
mark.flesher@infratil.com
info@infratil.com

---

CDC Data Centres
October 2019
Investor Presentation

1
This presentation contains confidential, non-public information and has been prepared by Canberra Data Centres Proprietary Limited (ABN 59 125 710 394) (“CDC”). Distribution of this presentation,
or of any information contained in this presentation, to any person other than an original recipient (or as permitted in an accompanying, executed Confidentiality Agreement) is prohibited. Any
reproduction of this presentation in whole or in part, or disclosure of any of its contents, without prior consent of CDC is prohibited. No reliance should be placed on the information and no
representation or warranty (whether express or implied) is given or made in relation to the accuracy or completeness of the information set out in this presentation and no responsibility, obligation or
liability whatsoever is or will be accepted for the accuracy or sufficiency thereof or for any errors or omissions.
Material contained herein is intended to be general background information on CDC, its related bodies corporate (as defined in the Corporations Act 2001) and its activities as at the date of this
document. Material has been provided in summary form, is not necessarily complete, is not intended to be relied upon as advice or recommendations and does not consider a recipient’s particular
objectives, financial situation or needs. Each recipient of this presentation should: (i) make its own enquiries and investigations regarding all information in this presentation including (but not limited to)
the assumptions, uncertainties and contingencies which may affect future operations of CDC and the impact that different future outcomes may have on CDC; (ii) seek legal, accounting and taxation
advice appropriate to their jurisdiction; and (iii) note that past performance, including past financial performance and pro forma historical information in this presentation, is given for illustrative
purposes only and cannot be relied upon as an indicator of (and provides no guidance as to) future performance.
Information set forth in this presentation may contain “forward-looking information”, including “future oriented financial information” and “financial outlook”, under applicable securities laws (collectively
referred to herein as “forward-looking statements”). Except for statements of historical fact, information contained herein constitutes forward-looking statements and may include (but is not limited
to): (i) CDC’s projected financial performance; (ii) the expected development of CDC’s business, projects and joint ventures; (iii) execution of CDC’s vision and growth strategy; (iv) sources and
availability of third-party financing for CDC’s projects; (v) completion of CDC projects that are currently underway, in development or otherwise under consideration; (vi) renewal of CDC’s current
customer, supplier and other material agreements; and (vii) future liquidity, working capital, and capital requirements. Forward-looking statements are provided to allow recipients of this presentation
the opportunity to understand CDC’s beliefs and opinions, so that such beliefs and opinions may be used by recipients as one factor in performing evaluation of financing opportunities.
Although forward-looking statements contained in this presentation are based on what CDC believes to be reasonable assumptions, there can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Recipients of this presentation acknowledge and accept that future results
may be affected by a range of variables which could cause outcomes or trends to differ materially, including (but not limitedto): (i) price fluctuations; (ii)actual demand; (iii) environmental factors and
risks; (iv) development progress; (v) operating results; (vi) engineering estimates; (vii) loss of market; (viii) industry competition; (ix) geopolitical risks, legislative, fiscal and regulatory developments; (x)
economic and financial markets conditions; (xi) approvals; and (xii) cost estimate.
This presentation does not constitute an offer, invitation or recommendation, and neither this presentation nor anything contained in it shall form the basis of any contract or commitment.
Important notice and disclaimer

Contents
1CDC overview
2Growth strategy
AKey terms
BKey risks and mitigants
CIntroduction to data centres

CDC overview
1

4
CDC is a leading Australian operator of secure world-class Data Centre (DC) facilities, guaranteeing
the availability of mission-critical systems
⚫CDC builds, owns and operates world-class facilities across a growing footprint at three campuses in Fyshwick (ACT), Hume (ACT) and Eastern
Creek (NSW)
⚫Established in 2007, CDC has operated in Australia for over 12 years with the purpose of being the country’s most secure and resilient provider
of DC facilities to Government, Defence, Hyperscale and National Critical Infrastructure (NCI) / Commercial customers
⚫Today, CDC’s diversified operations allow clients to securely store their core IT infrastructure within resilient centres whilstaccessing global
Hyperscale cloud providers, forming a growing and large-scale ecosystem
⚫CDC’s innovative business model enables CDC to remain ahead of the growth curve, and provide clients with bespoke and scalable data hall fit-
outs according to their specified needs
CDC overview

5
CDC has a strong track record of delivering incremental facilities on time and on budget
CDC History
CDC begins construction
of its first DCs at the
Hume Campus (ACT)
Fyshwick site acquired with
plans for 39MW capacity
across two DCs (Fyshwick
1 (18MW) and Fyshwick 2
(21MW))
Hume 3 (9MW) construction
begins, full committed
capacity within 12 months
200720122015
2009
2019
2018
Expansion into
Sydney with Eastern
Creek site acquisition,
with EC1 upgrade and
EC2 fit out
commencing
Hume 4 construction
begins, 66%
1
committed capacity
prior to construction
start
2018
Acquisition of CDC
by Infratil and
Commonwealth
Super Corporation;
Construction of
Hume 3 complete
2016
Construction of
Fyshwick 1 is
completed
2015
Both Hume 1 (6MW)
and Hume 2
(6MW total) reach
capacity
EC 1 and EC2
construction complete,
EC3 construction
commences
2019
Notes: (1) Inclusive of FROR capacity.
Fyshwick 1
construction
commences
2014
Fyshwick 2
construction
commences
2017
Fyshwick 2
construction
completes

6
⚫Led by Greg Boorer, CEO, since
2007
⚫Supported by a capable senior
management team across sales,
finance, operations, IT,
engineering and development
with a combined sector
experience of 100+ years, and an
unrivalled track record of strategy
execution in the Australian
market
⚫Greg and many of the team are
shareholders. All have long term
incentives tied to the continued
success of the business
contingent on future success
High quality management team with deep industry expertise in digital infrastructure, and a track
record of operational and sales excellence
Leading management team
Matt Holden
COO
Simon Black
GM Sales
Angus Vickery
CTO
Kathie Harris
GM Government
Greg Boorer
Chief Executive Officer
James Selkirk
Chief Financial Officer
⚫Founded CDC in 2007
⚫Chair of Federal Council of Australian Information
Industry Association for 9 years
⚫EY Entrepreneur of the Year for ACT and Eastern
region (NSW) in 2015
⚫Joined CDC in 2015
⚫Was previously CFO of Hutchison Ports Australia
⚫Previous finance roles at Stockland, Charter Hall
and Macquarie
Max Bristow
GM Engineering
Andrew Kirker
GM Enterprise &
Hyperscale

7
CDC now services its customers across 3 key site locations in Canberra and Sydney
Existing footprint
Hume
Canberra, established 2007
Installed capacity: 21MW
Potential capacity: 71MW
Fyshwick
Canberra, established 2014
Installed capacity: 39MW
Potential capacity: 39MW
Eastern Creek
Sydney, purchased 2018
Installed capacity: 20MW
Potential capacity: 120MW
1
2
3
Hume 3 DC
Fyshwick 1 DC
Eastern Creek Site Overview
Fyshwick Site OverviewHume Site Overview
Eastern Creek Campus

8
CDC has differentiated itself by designing and building data centres that seamlessly accommodate
traditional enterprise, Government and Hyperscale clients all co-located within the same buildings
CDC operating model
Outsourcedto DC Providers
In-house
DC infrastructure provided by specialist vendorsin:
DC infrastructure typically
housed and managed in
customer owned facilities
(available for future outsourcing)
On-premise
⚫Customerowned andmanaged
⚫Typically in older facilities
⚫Limitedindustry certifications
⚫High capex requirement
⚫Inefficient
Traditional
Colocation Facilities
⚫Multi-tenant
⚫High PUE
⚫Low rack density (<5kW)
⚫Expensive upgrade path
⚫Traditional designs have facility
and property-driven limits on
weight, power & cooling
HyperscaleDC
⚫Low PUE
⚫Very large warehouse style
facilities
⚫Dedicated halls for one
customer
⚫Typically 10MW+ facilities
⚫Custom design and builds
Co-location and Hyperscale
Hybrid/EcosystemDC providers
⚫High quality facilities (min Tier III)
⚫Hyperscale customer(s) within same campus or sharing the
same roof
⚫Enriched ecosystem of Government and cloud providers
⚫Network interconnection fabric
⚫Low PUE
⚫High rack density (up to 50 kW)
⚫Unique design: CDC has ICT-driven, reconfigurable modular
footprints that offer future flexibility as IT is refreshed in future,
making the facility lifespan longer for clients
CDC focus

9
CDC’s unique advantages enable a high level of differentiation and are highly defensible
Key differentiators
Dual Sites: Back up & disaster recovery
⚫CDC is treating Canberra and Sydney as a logical
extension of one another, enabling seamless
workload distribution between the two cities without
charging extravagant interconnect/transfer fees to
customers
⚫This is unique amongst competitors and very
attractive to Federal Government agencies and NCI
clients
Data sovereignty and highest level of
security classification
⚫High security standards are non-negotiable
elements in the Government and NCI customer
purchasing criteria. Many NCI customers have
regulatory obligations around data sovereignty
(e.g. utility customers)
⚫CDC is the only provider of significant scale in
Canberra and Sydney that is ‘built for Top Secret’
and accredited for ‘Secret’ whilst also offering
ICON connectivity in Canberra
Hybrid Cloud Co-location Ecosystem
Whilst close competitors mostly provide either public
cloud or colocation DC services, CDC has private and
public cloud as well as Government and enterprise all
co-located under a shared roof
CDC enables Government and enterprise to connect to
cloud providers, or one another, without their data having
to leave the data centre. This improves security and
performance and removes costly telecommunication
overheads
Trusted Relationships with Government &
Cloud Providers
CDC have demonstrated strong Government relationships
and increasing credibility with public cloud providers.
Few competitors can match this across Government and
public cloud provider customers
Future Proof Technology:
modular DC and availability
⚫CDC DCs are designed with granular modularity to
the rack level across the entire DC architecture
providing future proof flexibility
⚫CDC can increase power supply to customer's
existing footprint at minimal cost to CDC, and with
no disruptions to the customer, unlike competitors
who only offer row or hall upgrades which come at a
significant cost to the customer
⚫“Pay as you go, Pay as you grow” structure
⚫Only DC provider to offer 100% availability
guarantee
1
2
3
4
5
*
*
Very high differentiation
*
*
*

10
Revenue is underpinned by long-term contracts with high quality counterparties. Weighted-Average Lease Expiry
(with options) of ~17 years, or ~9 years without options. CDC has a strong pipeline and a modular design capable
of supporting all customer segments
Notes: (1) FY20F monthly revenue if all future commitments were income producing today. (2) Source: Industry report
Customers and Market Segments
GovernmentHyperscaleNational Critical Infrastructure (NCI) / Commercial
40% Revenue
1
45% Revenue
1
15% Revenue
1
Customers
Australian Federal, State and local Governments
Majority of revenue from Government counterparties
with AAA or AA ratings
Service providers to Government
Local cloud and international Hyperscale providers
Private, protected and public-cloud
Key partnership with AAA rated Global Hyperscale
Provider
Operators of NCI, including: banks, insurers, ports,
airports, utilities, healthcare etc
Demand & Strategy
Estimated 12-15% CAGR segment growth outlook
2
CDC is well placed to deliver on the Australian
Whole of Government Hosting Strategy (announced
March 2019)
Government DC consolidation is stimulating
demand among third party, flexible, multi-tenant
DCs that can offer hybrid computing outcomes, with
CDC the best placed operator in Canberra
CDC’s sales strategy is customer-centric, with
senior sales staff meeting with clients on a regular
basis to understand upcoming requirements
The strategy provides a framework to strengthen
data sovereignty, supply chain and data ownership
provisions
CDC’s membership of a whole-of-Government
panel enables the company to submit tenders to
individual Government departments in accordance
with panel set pricing
Estimated 20-28% CAGR segment growth outlook
2
Driven by the growth of cloud migration, artificial
intelligence and machine learning, High
Performance Computing research, biometric
security, etc all of which necessitate secure, 24/7
availability and rapid delivery of data
The ecosystem effect of CDC’s DC campus
networks brings intangible benefits to global
Hyperscale customers by optimising data transit,
security and performance between their hosted
clients
Sophisticated clients who understand their needs
and infrastructure requirements now and in future,
making an ideal partner to collaborate on growth
and expansion
Negotiated on a contract-by-contract basis
according to client’s design and MW capacity needs
over the short, medium and long term
Estimated 12-15% CAGR segment growth outlook
2
Providers of NCI are increasingly questioning the
viability of retaining their own DCs and in-house DC
costs, and instead looking to outsource the storage
and security of their data to third parties particularly
as regulatory obligations around data sovereignty
and security have increased
NCI organisations have an obligation to share
sensitive data with Government agencies, which is
facilitated with lower latency and cost for NCI’s
within CDC’s ‘ecosystem’ model
CDC’s unique approach to designing and building
facilitates bespoke fit-outs that can accommodate
the co-location of an NCI’s existing legacy systems,
new cloud storage servers, and security benefits
Negotiated on a contract-by-contract basis
according to client’s design and MW capacity needs
over the short, medium and long term
Position
Combination of small, private and large-scale
bespoke data halls and co-location model,
depending on size and security-level of the client
Construction of large-scale bespoke data halls for
use by a single Hyperscale provider
Fit-out of data halls is fully-underwritten, with work
only beginning after contract signing
Co-location model, with customers typically
purchasing pods within data halls

11
47
56
73
110-120
50
65
90
135-145
0
20
40
60
80
100
120
140
160
2017A2018A2019A2020F
EBITDAMarch EBITDA Run Rate
CDC has delivered a sustained period of both run rate and EBITDA growth
Financial performance
⚫Strong track record of growth and attractive metrics
⚫EBITDA growth forecast on the back of secured, long term contracts
⚫Controlled expenses with power costs directly passed through to customers
⚫Expected to deliver on budget for FY2020
CDC has built a loyal customer
base, comprising Government,
Hyperscale and NCI/Commercial
clients
⚫Long-term contracts with indexed
pricing and pass-through on key
costs (Weighted Average Lease
Expiry of 16.7 years with options)
⚫Majority of revenue from
Government counterparties and
leading global companies with AAA
or AA ratings
⚫Strong track record of renewals and
extensions
⚫History of strong contract renewal
⚫CDC has a very positive Net
Promoter Score

12
⚫Three established DC campuses at Fyshwick (ACT), Hume (ACT) and Eastern Creek (NSW)
⚫Existing operating capacity of 80MW, with 50MW under construction and 100MW+ capacity for future development
⚫Attractive scale and scope, with nine DCs across three locations forecast to be operational by 2021
Portfolio overview and growth outlook
HumeFyshwickEastern CreekTotal
Current
Facilities3227
MW capacity21MW39MW20MW80MW
In construction
Facilities1-12
MW capacity25MW-25MW50MW
Potential
Facilities2-35
MW capacity 25MW-75MW100MW
Total
6
71MW
2
39MW
6
120MW
14
230MW
Sydney
Canberra
CDC has a clear runway for growth within Canberra and Sydney

Growth strategy
2

14
Several long-term drivers underpin growth in the data centre market. The hyperscale DC segment
is expected to grow at twice the pace of traditional DCs
Source: Industry report
Market Growth Drivers
Traditional Data CentresHyperscale Data Centres
Shared growth drivers
Continuing, robust data growth, on average, 25% p.a., with certain industries growing at a faster rate
Continued digitisation of business operations
Increasing degree of “mission criticality” (i.e. 24-7 organisations wanting highly available data centres)
“Always on” consumers driving growth in digital content, including streaming
Commencement of the 5G rollout, underpinned by virtualisation of telco infrastructure
Data sovereignty requirements driving onshore development of DCs in Australia
Geo-politically, Australia is an attractive location to invest (e.g. strong rule of law, political / social predictability)
Canberra is set to become the first city outside Europe to source 100 per cent of its electricity needs from
renewables, potentially a preferred destination for backup and disaster recovery
Unique growth drivers
Higher propensity to outsource DC services
Adoption of hyperconverged infrastructure
Increasing cloud adoption
Increase in cloud based workloads from AI, machine learning
and IoT
Australia is an attractive location for the broader regional DR
strategy of public cloud providers
Increase in number of global cloud
provider availability regions / zones

15
CDC has successfully grown its portfolio of assets and has a range of ongoing, diversified growth
options which now include the expansion of the Eastern Creek campus
Note 1. From a Hyperscale provider, contracted based on FROR prior to construction commencing; Capacity filled is on a footprintPOD basis and not MW basis; 2. 60% completed and 40% in the process of being commissioned
* In place at acquisition
Growth by site
Facility
Capacity
(MW)
Capacity
filled
1
Phase 1:
Build
Phase 2:
Fit-out phase
Hume 16MW>95%CompletedCompleted
Hume 26MW100%CompletedCompleted
Hume 39MW>95%CompletedCompleted
Hume 425MW66%
1
In progressIn progress
Hume 5 & 625MW-Future buildFuture build
Fyshwick 118MW >95%CompletedCompleted
Fyshwick 221MW80%CompletedIn progress
Eastern Creek 17MW~85%Completed*Completed*
Eastern Creek 213MW100%Completed*In progress
Eastern Creek 325MW~50%
2
In progressFY21
Eastern Creek 4, 5, 675MW-Future buildFuture build
⚫7 completed data centres
•Built, income generating
•Mostly let
⚫2 data centres under construction
•Strong pre lets

16
Eastern Creek is well-positioned to capitalise on the prolific growth of data held by Hyperscale cloud
providers and operators of NCI who require increasingly secure and resilient storage solutions
Note: 1. 60% completed and 40% in the process of being commissioned
⚫Acquired 145,000 sqm Eastern Creek campus in December 2018, 36km west of Sydney’s
CBD
⚫Close proximity to Sydney, a major hub for operators of NCI, and Western Sydney Airport
(attractive to existing Government Agency clients)
⚫Substations and transformers in place for connectivity to 132KV transmission grade
power with zero downtime
⚫Two existing 6,000 sqm data halls: EC1 is a 6MW capacity data hall occupied by
enterprise and Government clients, EC2 (13MW capacity) is largely handed over, with
final delivery date of December 2019
⚫Enables CDC to deliver ‘outside Canberra’ geographic diversity and expand its
ecosystem, highly attractive to existing clients
-Sydney becomes an on-ramp for Canberra capacity and vice-versa from a multi-
geographic resilience perspective
⚫Transmission grade power with zero downtime
Highlights
Eastern Creek focus
Facility
Capacity
(MW)
Capacity
filled
Phase 1: Build
Phase 2:
Fit-out phase
Eastern Creek 17MW~85%CompletedCompleted
Eastern Creek 213MW100%CompletedIn progress
Eastern Creek 325MW~50%
1
In progressFY21
Eastern Creek 4, 5, 675MW-Future buildFuture build

17
CDC has developed a strong track record of delivery and a world class build strategy
Development philosophy
⚫Design and construct timeframe is circa 12 months for new data centre builds
⚫Once the surrounding campus infrastructure is completed, the fit-out of the individual DC facilities (Phase 2) is much faster
⚫This enables CDC to develop new sites within a sufficient timeframe to meet different customers’ growth expectations
⚫CDC leverages close relationships with its clients to pre-empt demand and ensure the relevant capex is deployed at the right time
⚫Given the changing nature of Hyperscale and Government contracts, the separation of Phase 2 (fit-out) enables CDC to submit bespoke
tender responses that meet clients’ specific operational and financial requirements; avoiding a retro-fit of pre-built and designed facilities to
client tenders
Highlights
Phase 2: Fit-out
Only once a customer has signed the SLA, fit-out of the data
hall begins
Consequentially, the capex to fund this expansion phase of
growth is fully-underwritten by customers
CDC’s modular design enables data halls to be scaled
incrementally
Lower commercial risk: secured by client contracts
Lower technical risk: smaller fit-out, repeatable builds on which
CDC obtains fixed-pricing
Phase 1: Land Acquisition & Build (‘Build’)
CDC acquires land at strategic locations based on proximity to power supply
and critical infrastructure
Significant site assessment and risk management diligence
Following a build-ahead strategy, the building structure, initial infrastructure
and communications connectivity are installed

18
FY20 is progressing well; delivering developments, securing new customers and providing the
foundation for future growth
•Bring 24MW+ capacity to income producing –On track
•Final handover of Eastern Creek 2 in December –On track, 10MW to be handed over within 12 months of purchasing
site
•Go live of Hume 4 in FY2020 –On track
•Construction of Eastern Creek 3 –commenced
•Grow EBITDA run rate by over 50% year on year –On track
•Extend debt facilities headroom and look to improve terms –well progressed
•Grow National Critical Infrastructure client base –well progressed
•Identify and pursue additional strategic opportunities –well progressed
Next 6 months
Execute and deliver both
short and mid-term
Establish a sustainable
runway for continued
mid term growth

APPENDIX
Key terms
A

20
Acronym Library
AcronymDefinition
AIArtificial Intelligence
CAGRCompound Annual Growth Rate
CDCCanberra Data Centres
CPIConsumer Price Index
CSCCommonwealth Superannuation Corporation
DCData Centre
FRORFirst Right of Refusal
HVHigh Voltage
ICONIntra-Government Communications Network
IFTInfratil
IP TrafficInternet Protocol Traffic
KVKilovolt
kWKilowatt
LPILimited Price Indexation
MWMega Watts
NCINational Critical Infrastructure
PODComplete, stand-alone and multi-workload systems management module connected into power distribution and cooling
PUEPower Usage Effectiveness

APPENDIX
Key risks and mitigants
B

22
CDC thoroughly understands the risks involved with the business and industry, and has worked to
effectively mitigate these
Risks and mitigants
Termination rights
Data information and
security
Management
Development and
execution
Competition
1
4
3
2
5
✓High switching costs and risks (time, IT risk), timing given embedded infrastructure and lack of secure
alternatives
✓Long history of customer renewal and extension
✓Termination for convenience typical of Government contracts
RiskMitigants
Contract renewal and
repricing
6
Description
Existing contracts with a
termination for
convenience clause
Risk of physical security
breach and impact on
customer relationships
Existing management
have strong relationships
with customers and
experience in execution
CDC could experience
delays in completing its
builds
Key competitors continue
to invest in new facilities
Potential for re-pricing
risk at contract renewal
✓Responsibility for cybersecurity and application-layer protection of data rests with the client
✓CDC’s responsibility for physical perimeter security is bolstered by strong record and ASIO-T4 certification
✓24/7 security
✓Management team has been expanded in recent years, with investment in all key areas
✓Existing management strongly committed to the business and appropriately incentivised
✓Strong governance framework in place
✓Track record of executing on time and on budget
✓Large % of capex is underwritten by existing customer contracts
✓Significant demand expected to more than outweigh supply
✓CDC well-positioned in Sydney & Canberra to win new business
✓Premium provider with privileged and ongoing trusted-advisor relationship with Government and a global
Hyperscale provider
✓CDC has a differentiated, premium offering and works with clients to customised pricing
✓No current sign of price pressure within CDC customer base
✓Government pricing secured for 5 years
✓Track record of re-tendering at / or above existing prices

APPENDIX
Introduction to data centres
C

24
A data centre is a facility used to house computer systems and associated components, it
can be insourced or outsourced
A data centre’s main purpose is holding and running IT systems that handle
the core business and operational data of an organisation (e.g. its data, mail
services, applications).
Key Infrastructure
Insourced vs. outsourced
Insourced:
-an organisation builds, operates and manages its own data
centre
-advantages include full control over data and applications
-disadvantages include increased operating and personnel
costs and lower system reliability
Outsourced:
-an organisation leases space and/or hosting services from
an external data centre provider
-advantages include lower operating cost, reduction in
required in-house expertise and higher system reliability
-electricity costs are passed on to the customer (c.$1k /
month / rack*)
-organisations may incur significantly lower electricity costs
through outsourcing as the power usage effectiveness (PUE)
ratios of colocation specialists tend to be far lower than those
of insourced DCs
-disadvantages include reduced perceived control over
system
Data Centre 101

25
DCs are dedicated, secure locations that house IT hardware (servers) and provide the power,
cooling and connectivity needed to operate them
DC equipment / housing:DC location and core infrastructure:
Data Centre 101

26
DCs can differ in their infrastructure approach and the technologies they employ
Data Centre 101

27
Data centre design options are evolving with client needs and new technologies
Data Centre 101

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Investor Day –Vodafone NZ

2
Vodafone Investor Day Agenda
IntroductionMarko Bogoievski
Vodafone Strategy Jason Paris
Q&A
Financial Update Kate Jorgensen
Business Improvement ProgrammeMatt Crockett
Q&A
Regulatory EnvironmentJuliet Jones
Business and CloudLindsay Zwart
A 5G futureTony Baird
SummaryJason Paris
Q&A

Strategy Update –Jason Paris

Significant network and
infrastructure assets;
Fixed, Mobile, IoT
Strong NZ customer base
across categories;
including #1 mobile,#2 BB
Well balanced across business
and consumer segments
Strong partnerships including
Vodafone Group, Nokia, AWS
Extensive channels to market;
app. Web, retail, MMR, care
Diversified product set;
Fixed, Mobile, Cloud, IoT
4
We have best-in-class assets to compete
Providing strong potential upsides

15%
85%
52%
48%
Balanced portfolio mix
41%
59%
#1
Others
Others
Other (Sky TV)
26%
74%
#2
#2
5
Traditional Pay TV connection share
Fixed broadband connection share
1
Mobile subscriber share
1
Enterprise &
Wholesale
Consumer
Revenue Mix
2
Notes:
1.New Zealand Commerce Commission Annual Telecommunications Monitoring Report –December 2018
2.Based on 30 September 2019 unaudited results
Strong New Zealand customer base across all categories
#1 in mobile, #2 in broadband

6
Significant network and infrastructure assets
Across Fixed, Mobile, IoT
Nationwide fixed network infrastructure
•Over 10,000km of cabling connecting consumer and enterprise customers
•National backhaul network and access to the Tasman Global Access cable
•Local fibre in Wellington, Kapiti and Christchurch
•Hybrid Fibre Coaxial (HFC) gigabit network in Wellington and Christchurch
•Capability to deliver services over all technologies –Fibre, Cable, VDSL and ADSL
Extensive network and spectrum position including 5G leadership
•5G launching December in Auckland, Wellington, Christchurch, Queenstown
•Over 1,500 mobile cell sites delivering a mix of 2G, 3G and 4G
•98% population coverage, with over 95% 4G coverage
•80% broadband coverage of rural New Zealand
•Extensive spectrum holdings available for mass market use
•Roaming network in 200+ destinations (4G in 100+ destinations)
Nationwide Internet of Things ("IoT") networks
•#1 in IoT in New Zealand
•Two nationwide IoT networks (NB-IoT and LTE-M) supporting over 1.6m cellular IoT connections

7
Diversified and differentiated product set
Across Fixed, Mobile, Cloud and IoT
Mobile
Broadband
TV
Voice
IoT
Cloud

8
Vodafone Group’s biggest partner market
Gives NZ access to best of both worlds and significant flexibility
•Global roaming
•VodafoneTV
•IoT Platform
•Security products
•Data Analytics
•Vodafone Brand
•Artificial Intelligence
•Vodafone Procurement

9
Industry dynamics can create new opportunities
Players looking at ways to grow returns in capital intensive industry
•Improving the utilisation of existing networks
•Looking to enhance wholesale and mobile virtual network operator
offering and product development
•Vodafone already has wholesale arrangements with other players,
including 2Degrees
•Aiming to show industry leadership around sensible network sharing,
where the economics make sense
•Arrival of 5G provides opportunity to review network strategies across
the industry

10
Competitive but rational market
Underpinned by strong economic fundamentals
•Industry structure provides strongest correlation to equity returns
•Stable 3-player mobile marketwith multiple retailers and wholesale
customers
•Relatively stable regulatory environment
•Industry dynamics are creating new value opportunities (Infrastructure
and Retail)
•Competitive but not irrational behaviour
•Multiproduct or converged offers becoming more prominent
•Vodafone NZ continuing to fund or bundle VAS is not sustainable in the
long-term

•Ownership certainty achieved
√
•100% NZ-centric strategy in place
√
•Groupstrategic constraints removed
√
•5G leadership attained
√
•Cost reduction delivering ability to reinvest
√
•Agile way of working introduced
√
•Step-change in capability & culture underway
√
•Lagging in digitisation and simplification
X
•Complex legacy IT systems to be migrated
X
•Poor customer experience holding us back
X
•Top-linegrowth still hard (industry-wide issue)
X
11
The Vodafone transformation is underway
Decisive action taken on many fronts, with some big ‘work-ons’

12
Positive early signs
Solid early indicators and successes
•New operating model in place and capability step-change underway
•On track to deliver$91m of gross cost savings
•10% year-on-year call volume reduction and 70% of queries solved first time
•New channel expansion with Noel Leemingto significantly improve mobile
performance and in home technology experience
•New prepaid brand to target pricesegment (Kogan) launched
•RetailJV with Digital Mobile launched to lift retail performance
•Healthydeal pipeline for Business/Enterprise
•Best-in-class partnerships in Cloud with AWS and Azure
•5G leadership underpinning brand reconsideration
•Fixed Wireless Access being scaled

13
Transforming from old Vodafone to new Vodafone
Turning legacy into opportunity, long-term strategy review underway
From manual, complex,
expensive to...
Digital, simple
and low cost
From lagging on
Customer Experience to...
Leading on Customer
Experience
Making numbersFrom missing numbers to...

•Limited velocity, high
cost to serve and cost to
run
•Cumbersome multi-step
migration with issues
•Significant cost saving
opportunity
•Decouple front and
back-end through agility
layer
•Focus in-house
development efforts on
front-end differentiating
layers
•Validate pros and cons
of different migration
scenarios
•Move towards a greenfield
stack, with simplified
products
•Explore cloud/ SaaS native
solutions across the full
OSS and BSS
•Ensure target state
architecture is aligned with
strategic choices
Digital, modern, simple and low-cost
An opportunity to be a leading modern Telco
Complex product,
IT architecture and
technical debt to...
An ambitious but
necessary target
state...
...while stabilising
current state and
de-risking

Leading on Customer Experience (CX)
Creating a competitive advantage
•Call volumes continuing to decline year on year
•~70% of calls resolved first time
•Calls getting more complex
•New partners getting up to speed
•Investment in new Case Management team

16
Long term value creation
From missing our numbers
•Stabilisingcommercial performance
•Holding churn across all products
•Cost reduction to create headroom
•Investing in Cloud, Security, VTV, IoT and Procurement
•Taking opportunities –e.g. FWA, Multi-brand, 5G, winning key
market segments
•Owners mind-setdeveloping
•Optimise balance between revenue/share and margin
•Stronger execution focus
•Shift to long-term investment horizon –targeting uplift in EBITDA
margins over time

17
Risksto manage or mitigate
External and internal factors
•Market dynamics
•Ongoingcommoditisation andprice downs
•Regulatory changes or investmentuncertainty
•Funding of free VAS and OTT services
•Monetising investmentin 5Gin core telco andadjacencies
•Organisational dynamics
•Pace/quality of execution
•Cost management
•Culture and capability requirements
•Trading momentum
•Technology/IT dynamics
•Migration to future IT state
•Ongoing simplification, digitisation and automation
•Timely retirement of legacy
•Customer Experience impacts

18

19
Strong team now in place to deliver on clear plan
Focus on execution and cadence
Jason ParisMatt CrockettJuliet JonesLindsay ZwartTony Baird
•Chief Executive Officer
•Joined Vodafone NZ
November 2018
•Former Chief Executive
of Home, Mobile and
Business at Spark
•Finance Director
•Joined Vodafone NZ
in April 2019
•Former CFO of
KiwiRail
•Transformation Director
•JoinedVodafone August
2019
•Experiencedexecutive in
telecommunications, and
across multiple
transformation
programmes
•Legal, Regulatory &
Sustainability Director
•12 years at Vodafone NZ
including as GM Strategy
•Business Director
•Joined Vodafone NZ in
September 2019
•Has held senior positions
in Microsoft, most
recently as US General
Manager Cloud and
Enterprise Business
•Technology Director
•9 years at Vodafone NZ,
5 years in current
technology leadership
role
•Former CEO of Farmside
Kate Jorgensen

Q & A

Investor Day –Kate Jorgensen

22
Financial performance overview
Long-term EBITDA growth achievable, dependent on execution
•Commercial performance has stabilised, largely through tight
operating disciplinesand cost reduction
•Long-term growth requires execution on business improvement
programme, and successful investments, e.g. in 5G and FWA
•Digitisation and simplification will enable a greater range of
strategic choices
•Current year performance can be characterised as; our cost
management has been excellent but our trading momentum and
customer experience needs improvement

Financial Outlook
Vodafone on track to achieve guidance metrics
31 March20162017201820192020F
Mobile Revenue
951953973945
Fixed Revenue
841854824793
Other Revenue
171220242248
TotalRevenue
1,9632,0272,0391,9862,000-2,100
Underlying EBITDA
1
422469466463460-490
Underlying EBITDA %
22%23%23%23%23%
Capex
229223244253275-325
Capital intensity
2
12%11%12%13%14%-15%
Free CashFlow
193246222210110-190
1
Underlying EBITDA excludes acquisition costs and separation costs.
2
Capital intensity is shown as Capex as a percentage of Total Revenue
Summary of Financials ($ Millions)
23

Capital Expenditure
Vodafone fuelled for growth under new ownership
117
111
117
120
67
72
71
89
45
4030
44
20162017201820192020 F
Capex Breakdown ($ Millions)
Other Capex
IT Capex
Network Capex
229
223244
253
275-325

Operational Overview
Balanced portfolio of Vodafone well positioned to deliver
25
Balanced Portfolio (Revenue Mix)
1
52%
49%
49%
51%
Enterprise &
Wholesale
Consumer
Mobile
Fixed
1
Based on 30 September 2019 unaudited results
38%
52%
11%
Wholesale & Other
Consumer
Business

Revenue
Strong customer base with the highest mobile ARPUs in the industry
1.1 million
1.4 million
0.4 million
Prepay
Post-pay
Broadband
Subscribers
$14
$47
ARPU
1
Based on 30 September 2019 unaudited results
$104

Future Market Growth Trajectory
1
Vodafone in line with external growth projections for next generation access
technologies and mobile post-pay
Broadband ConnectionsMobile Connections
Market Spend
-25%
0%
25%
2020202120222023
ADSLVDSLCableFibreFixed Wireless
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
2020202120222023
PrepayPostpay
-8%
-6%
-4%
-2%
0%
2%
4%
6%
2020202120222023
MobileBroadbandCalling
1
Based on IDC third party market analysis.

Looking ahead –the important markers
What we view as the key medium-term financial performance levers/measures
28
•Sustainable industry dynamics/structure
•Business Improvement Programme execution
•Investment incentives and certainty
•Competitive trading performance
•Growth in Fixed Wireless Access and access bypass
•CX as a competitive advantage and churn reduction
•Digitisation and platform rationalisation
•Focus on existing and profitable customers
•Capital intensity
•EBITDA margins

Investor Day –Matt Crockett

Key beliefs about transformation
Characteristics of successful transformations
1.You can achieve substantial, 20%+ cost reduction through
a holistic transformation approach.
2.However, you can’t cost-cut your way to greatness.
3.Execution is critical.
4.“Business-as-usual” people and processes won’t deliver
significant change.
5.Mindsets and behaviours matter.
6.Leadership is critical.

$35m savings were delivered in FY19.
The programis on track to deliver $56m of incremental gross savings YoY (FY19 toFY20)
We are building on solid foundations
Focused cost program launched 12 months ago
Spend rationalisation
and outsourcing
3
Employment costs
1
Procurement and
Property
4
Migration off legacy
inputs
2

We recently enhanced the programme
With a focus on all business improvement levers
The what:
all cash improvement
levers
The how:
clearer line ownership,
more regular
governance, more
dedicated resources

A full potential improvement diagnostic
Highlights substantial opportunities
Example: tactical
opportunities
Build / improve data and
analytics capabilities to reduce
churn, uplift cross-and up-sell
Example: transformational
opportunities
Review full product portfolio
and radically simplify product
range while improving customer
and financial outcomes

In FY20 we will launch a full transformation programme
Addressing four key requirements for success
Mindset &
Behavior Change
Performance
Infrastructure
Expertise
Capability
Building

Q & A

Investor Day –Juliet Jones

A stable and predictable operating environment
Relatively stable regulatory settings
37
•Market regulation has been predictable and in line with
international experiences
•National roaming and mobile co-location regulated on a
non-price basis
•Cost-based mobile termination rates
•The Commerce Commission annual report highlighted
healthy competition and investment in the mobile market
•Mobile market review undertaken by regulator found no
need to regulate wholesale access.

Mature legislative framework
Amendments to laws passed in 2018
38
•Amendments to the Telecommunications Act 2001 were
passed in November 2018, covering:
•Defined process to set regulated fibre pricing for “last
mile” fixed access infrastructure post 2022
•Additional consumer safeguards
•Regulatory oversight of the quality of retail services
•Rapid responses to any competition issues
•Chorus continues to have requirement to unbundle its UFB
network with LFCs expected to follow

Spectrum matters
History of stable renewal processes for spectrum
39
•Renewal process for rights in 1800/2100MHz which expire in 2021
•2x20 MHz 1800MHz for renewal, cut back by 2x5 MHz
•Vodafone to be offered full 2x25 MHz 2100MHz renewal
•Government will consider requests to swap 2100 MHz instead of 1800 MHz
•Auction of 3.5GHz spectrum faces continued delays
•Cabinet paper suggests 80MHz sufficient for each mobile network operator
•Subject to separate decisions around Maori rights under Treaty of Waitangi
•Auction late 2020or early 2021 with 20 year rights from November 2022
•Consultation on design, rollout requirements and cap will occur later in 2019
•MBIE is exploring early commercial access due to auction delay and has issued
an Expression of Interest to acquire temporary rights

Investor Day –Lindsay Zwart

Become NZ’s Leading Trusted Digital Partner for Business
Helping NZ businesses navigate digital transformations
A skilled & passionate team who are recognised by our customers
as the trusted advisers for their digital journey
Understanding
the Gigabit
world
Customer
Experience
New technology
investment
Cutting
costs
Shareholder
value

Strategic customer
Relationships
Cloud NetworkPartnershipInternational
Innovation
Procurement
Strategic partner with
customers in Digital
Transformation
Delivering the most
engaging digital customer
experience
Network attached to
public cloud first strategy
95% Organisations using
Private Cloud
Strategic Partnering for
expertise, market scale,
significant investments
and thought leadership
Leveraging Vodafone’s
international innovation
and extending through
channel partners for IoT,
AI and cloud analytics
Value added procurement
services attached to
all deals
Vodafone Cloud and Partnering Vision
To be NZ’s most trusted digital provider through market leading Cloud Services
and Strategic Partnerships

43
The market opportunity in Cloud is significant
IDC: The New Zealand SaaS market is valued $371m with CAGR over 15%

Vodafone is well placed for the Cloud opportunity
Excellent partnerships in place
Exclusive Cloud reseller
agreements with market
leading products and
services partners
Solid pipeline of new cloud
products and services to be
released in market in the
near term
Access to reselling
high-growth tech
companies solutions
[via Telstra-Ventures]
Xone’sdevelopment of
5G ecosystem.
Building innovations ready
for the future.
Proven ability to move with
speed, with no legacy cloud
infrastructure environments
Strong uptake of early
offerings in market,
with strategic customers

Investor Day –Tony Baird

Market leadership in 5G
Bringing the best of the world to NZ
•We are well placed to leverage 5G with our spectrum, fibre and network assets
•Switching on a large commercial 5G network in December, starting in parts of
Auckland, Wellington, Christchurch & Queenstown
•Launching with 100 x 5G-enabled cell-sites and 400 x upgraded 4.5G sites and
grow from there –will significantly increase network performance
•Range of devices/handsets will be available at launch, attracting high-value
customers and early adopters
•Offers significant potential to scale up our Fixed Wireless Access ambitions
•Adds to our proud heritage of being first to deliver the best technology to Kiwis
–including 2G, 3G, and 4G –giving our brand and culture uplift

5G is the next generation network technology
Greater capacity, speed and low latency
2G: The TXT Era
-1990s
-SMS
-0.1 MB/second
3G: The Internet Era
-2000s
-SMS
-Internet
-0.1-8 MB/second
4G: The Smartphone
Era
-2010s
-SMS
-Internet
-Video
-15 MB/second
5G: The Internet of
Things (IoT) Era
-2020 and beyond
-SMS
-Internet
-HD, 3D & ultra video
-1-10 GB/second

5G unleashes potential of the Internet of Things (IoT)
Vodafone #1 in IoT network connections, with platform advantages

5G builds on the foundation of 4G
Expanding use cases from 4G to 5G
49

Already real 5G use cases have emerged
Leveraging Vodafone Germany, Spain, Italy & UK as partners
Automotive
Buildings &
Integrated Transport
Health
Utilities
Education &
Entertainment
Manufacturing
•5G V2X A9 Highway
(DE)
•AR & assisted reality
•Remote steering of
vehicles
•Adaptive cruise
control
•Platooning
•Centralised building
controls
•Traffic assist using
street sensors
•Drones for aerial
security
•Drone delivery
•Smart parking,
smart waste
•5G connected robots
to improve flexibility of
production lines
•Warehouse automation
•Last mile logistics
robots, also used in
hospitals
•Precision agriculture
•Connected
Ambulance
•Remote surgery
•Remote patient
monitoring
•Remote training
(AI)
•Smart grid
•Smart meters
•Managing
energy crises
•Immersive learning –
biomedical and
mechanical
engineering (AR/VR)
•Remote events (VR)
•Media: drone/
shoulder camera
images
•AR/VR assisted
tour-guides

5G delivers efficient network economics
Offers exciting potential for lower cost delivery
•Will upgrade/improve existing 4G
•Enables decommissioning of legacy (e.g. 3G)
•Accommodates ongoing explosion in data consumption
•Offers additional wholesale opportunities
•Low cost option (capex intensity neutral)
•Smart reuse of existing ‘street’ infrastructure
•Network sharing opportunities
•Best-in-class network cost management

Summary –Jason Paris

Q & A