Ann: Full Year Results - Presentation, page-33

Hi

its an easy mistake to make, so I’m certainly not blaming anyone for it - but it’s an important distinction.

5G is a “name” for a type of wireless data technology which is faster and broadly better than the existing, incumbent 4G technology rolled out by carriers like Telstra, Optus etc.

there’s a lot of hype around it because it has the potential in some markets and for some use cases to be a killer of fixed line connections like the NBN. This technology is still in its infancy with rollouts only in a few select locations and limited handsets that can take advantage of it. Consider it another evolution of 4G like your phone has now.

this company however has nothing.. not one thing.. to do with 5G technology unless they somehow resell it in the future from a big telco (like Telstra). Lots of people get confused on this stock and I just wanted to clarify that as it comes up a lot.

this business has three primary assets:

- ex Inabox Direct business (Anittel) - a provider of managed and professional services to small and medium business primarily (with some bigger customers)

- ex IAB hosting business (Hostworks) - the acquisition that really sunk IAB as they overpaid heavily for it

- Melbourne Data Centre Business - I don’t know a lot about this but being in tech my suggestion would be that unless you’re one of the big couple of providers in the world (Equinix and NextDC in particular) you’re really going to struggle as all of the hyper scalers (Azure, AWS, Google, Facebook etc) that are consuming their services are going into these big global players data centers making scale available to everyone and prices lower (and margins) for run of the mill customers. it’s for the same reason I think that MacTel will struggle overtime and potentially exit their Datacentre business. I could talk for hours about datacentre plays, so I won’t get into it too much

anyway, hope that’s a helpful distinction for you - can’t help you much on you being impressed with their numbers - I couldn’t disagree more based on guidance but that’s why markets are two sided! Something I did notice in the report just then when I gave it a more thorough read is that there are 60 odd million shares out there today with another 15 million or so “in the money” options and performance rights outlined in the report. So around 25% of the float could well come out and dilute further, thus dragging the price down further.

cheers