Financials as reported 22 February 2019GROWTH STRATEGY DELIVERS...

Financials as reported 22 February 2019

GROWTH STRATEGY DELIVERS RECORD HALF YEAR REVENUE22 February 2019 (Sydney):

NetComm Wireless Limited (ASX: NTC) is pleased to announce its results forthe 6 months ended 31 December 2018 (1H19), a year that saw the Company deliver record half-yearrevenue as it executes its global growth strategy.Key metrics1:• Group revenue up 6.5% on 1H18 to $94.3 million (FY19 Revenue guidance of 15-20% growthreaffirmed)• EBITDA of $8.3 million, compared to $9.2million in 1H18 (FY19 EBITDA Guidance of $15-18 millionreaffirmed)• NPAT $2.3 million, compared to $3.7 million in 1H18• Operating cashflow of $1.9 million, compared to outflow of $0.4 million in 1H18• Strong balance sheet, with no debt and cash of $17.4 million.

Commenting on the Company’s 1H19 performance, NetComm Chairman Justin Milne said: “We are pleasedto have delivered record revenue in 1H19 underpinned by strong Fixed Wireless and Network ConnectionDevice (NCD) orders, while strategic investments made in 5G position us extremely well with regards to thisexciting technology.”Group revenue was up 6.5% to a record $94.3 million as the Company continued to roll out contracts todomestic and global customers.

Telecommunication Infrastructure Equipment and Industrial Internet ofThings (IIoT)2 revenue was up 11% to $83.6 million and now represents 89% of Group revenue.

“The growth in revenue achieved over the half was largely attributable to the scaling of NetworkConnection Device (NCD) orders from nbn and sales of Fixed Wireless devices to multipletelecommunications carriers around the world. The decline in EBITDA reflects the change in our sales mix,with NCD sales having a lower margin than Distribution Point Units, as well as higher operating expenses inpart related to developing our 5G capabilities which will underpin the next phase of our growth.

Our balance sheet remains strong, with $17.4 million in cash, no debt and $30 million in unutilised committedbanking facilities to provide flexibility,” added Mr Milne.

AND SELLING WHY?