Melbourne IT's 2010 Annual General Meeting - 25 May 2010

1. 2010 AGM Melbourne, Australia 25 May 2010

2. Board of Directors Simon Jones, Chairman Theo Hnarakis, CEO & MD Tom Kiing, Non-Executive Director Prof Iain Morrison, Non-Executive Director Rob Stewart, Non-Executive Director Lucy Turnbull, Non-Executive Director Andrew Walsh, Non-Executive Director

3. Auditors

4. Agenda Chairman’s Address CEO’s Address Q&A Formal Business Q&A Tea & Coffee

5. Chairman’s Address Simon Jones

6. 2009 Overview Year ended 31 December (A$) FY 09 FY 08 % $200.1m Revenue $186.2m 8% $23.4m EBIT $23.7m -1% $16.8m NPAT $16.2m 4% 21.42¢ Basic EPS 20.87¢ 3% $23.6m Operating Cash $26.4m -11% 8.0¢ Final Dividend 8.0¢ Unchanged (Fully franked) $31.1m Deferred Gross Margin $28.5m 9%

7. Financial Performance Revenue ($m) EBIT($m) NPAT($m) Operating Cash ($m) $200.1m $23.4m $16.8m $23.6m

8. Financial Performance Deferred Gross Margin ($m) Basic EPS & Dividend (¢) $55.7m 21.42¢ 15.0¢ $31.1m 21.42¢ 18.15¢ 20.87¢ EPS 9.87¢ 10.47¢* 15.0¢ 13.0¢ 15.0¢ Div 7.5¢ 8.0¢ Deferred Revenue Deferred Gross Margin * 2006 EPS excludes gain on sale of Neulevel

9. Successful shift to high margin IT services continues 59.7% 58.5% 51.3% 31.0% 13.4%

10. 2009 Overview Full year revenues of $200.1m up 8% Y-o-Y Appreciating Australian Dollar vs US and European currencies impacted revenues in 2009 Full year result impacted by one-off DBMS integration cost of $3.5m Second half rebound EBIT $14.1m – up 50% in H2 and up 16.9% Y-o-Y Tight cost control contributed to H2 performance Renegotiation of supplier contracts No exec bonuses paid Operational efficiencies Closing cash position $30.4m / debt position $57.9m Net debt $27.5m

11. 2009 Divisional Performance

12. $56.0m 25% Digital Brand Services $44.9m* Divisional Performance Year ended 31 December (A$) FY 09FY 08% Revenue $200.1m 8% $186.2m SMB eBusiness Solutions $42.8m -1% $43.2m $64.9m 6% Global Partner Solutions $61.3m $25.6m -2% Enterprise Services $26.2m 8% For The Record $8.9m $9.6m $1.1m -35% Interest and Other Income $1.7m EBIT $23.4m -1% $23.7m SMB eBusiness Solutions $10.1m -14% $11.8m $2.2m -31% Enterprise Services $3.2m Global Partner Solutions $8.6m 16% $7.4m $6.4m 49% Digital Brand Services $4.3m* $1.0m 100% For The Record $0.5m -$0.6m Advantate Contribution -$0.7m 17% -$4.3m -48% Corporate Overhead -$2.9m *Digital Brand Services FY08 revenues and EBIT include 8 months of DBMS income following acquisition NB Figures may not total exactly due to rounding

19. In appreciation Thanks to my Board colleagues for their valuable advice and support Thanks to all the staff of Melbourne IT for their efforts Thanks to CEO and Managing Director, Theo Hnarakis, and the Melbourne IT executive team Thanks to our shareholders for your continued support of Melbourne IT

20. CEO’s Address Theo Hnarakis

21. Challenges Behind Us Service outages in our hosting business Storage platform refresh Process improvements Strengthened data centre team DBMS Integration Integration expected to be complete in June

22. Platform Stability Improvements

23. ...And Challenges Ahead Australian Dollar’s continued strength Constant currency performance shows growth Global economic instability Online investment continues to be a focus for customers worldwide Transformation programme HCL & Oracle appointed Experienced team leading project

24. Our Opportunity Internet continues to change the way we live, learn, relate and do business

25. Did you know? Melbourne IT serves 120 million web pages and delivers 8 million emails a day If growth rates continue, we will host 20 million gigabytes of information by 2020

26. Did you know? Australian eCommerce market is estimated to be worth $19 billion 67% of Australian Small Businesses take payments over the Internet (Only 32% did in 2003)

29. Divisional Outlook

30. Digital Brand Services Brands under management continue to grow New customers in 2010 include Scandic Hotels, Tabcorp Holdings, PBL Media, Randstad

31. Internationalised Domain Names http://उदाहरण.परीक्षा http://مثال.إختبار http://例子.測試 http://בײַשפּיל.טעסט http://παράδειγμα.δοκιμή http://пример.испытание

32. Enterprise Services Clear trends to fuel growth Outsourcing of IT continues to grow – benefits of economies of scale, lowering costs, greater reliability Capacity on demand or pay as you grow allows customer flexibility to rapidly scale up when required Good corporate governance requires better business continuity and disaster recovery planning Increasingly complex online applications need guaranteed uptime, more storage and greater expertise to manage Demand for virtual desktop technology is set to grow significantly

33. SMB & Partner Strong cash generators – will remain important contributors for many years to come eBusiness Centre consultative sales approach is in contrast to competitor’s “self-help” strategy Advanced online services – SEM, web design, SaaS products – continue to grow and help offset commoditisation pressures on base services

34. SMB & Partner Web redesign increased label’s sales by 50% (www.talulah.com.au)

35. SMB & Partner eBusiness Centre formula to be extended to partners globally this year Puts customers on “ARPU Escalator” to deliver high margin revenues

36. ForTheRecord Review of strategy and appointment of new EVP Five goals Revitalise partner relationships Expanding in the law enforcement and hearing room markets Shift to annuity billing model Product refresh – FTR Touch Add storage solution to bolster revenue streams

37. SMB & Partner Fffff A Bright Future

38. Top Level Domain Liberalisation Most significant change to domain names in many years Many new names launched throughout 2011 Internet terms - .web, .blog Categories - .food, .sport Geographical - .sydney, .berlin Brands - .canon Complexity of managing online brands increases dramatically Melbourne IT is perfectly positioned to take leadership role

39. Melbourne IT Fundamentals Global leader in digital brand services Voted world’s #1 domain services company by the intellectual property industry Australia’s #1 hosting company for SMBs One of the world’s largest domain registrars 5.3 million names under management Australia’s R&D partner of choice for global IT vendors 350,000 small business customers, 3,300 DBS customers 10 year reseller agreements with global leaders Yahoo! and Microsoft Courtroom recording market leader

40. Melbourne IT Fundamentals Seven straight years of profit growth Investing in transformation now to secure our future Focus on product innovation and high margin product growth Tight control on operational costs

41. Outlook Maintain profit guidance for 2010 Our expectation is for a strong rise in the underlying EBIT of the company in FY 2010, however due to the significant transformational investments the company is making, we expect net growth to be modest and for robust net profit growth to return in 2011

42. Q&A Any Questions?

43. Business of the Meeting

44. Financial Statements & Report To receive and consider the Financial Statements and the Reports of the Directors and Auditor for the financial year ended 31 Dec 2009

45. Resolution 1 – Election of Directors Mr Rob Stewart retires by rotation in accordance with rule 9.3 of the Company’s Constitution and, being eligible, offers himself for re-election Mr Tom Kiing retires by rotation in accordance with rule 9.3 of the Company’s Constitution and, being eligible, offers himself for re-election

46. Resolution 2 – Adoption of Remuneration Report To adopt the Remuneration Report for the year ended 31 December 2009

48. The company must therefore attract, motivate and retain highly skilled people

51. Remuneration for Executives and Key Senior Employees Remuneration consists of two key elements: Fixed remuneration (salary) Variable remuneration Short-Term Incentive (STI) – based on performance against company, business unit and personal performance KPIs Long-Term Incentive (LTI) – previously this was share options with a performance hurdle however a new program for 2010 is proposed

52. Requirement for New Long Term Incentive Program Previous program based on share options with performance hurdle Pre 21 April 2006 – performance hurdle based on Earnings Before Interest and Tax (EBIT) 21 April 2006 – 24 October 2008 – performance hurdle based on Earnings per Share (EPS) Taxation changes led to suspension of LTI program in 2009 Currently no LTI program in place to retain key employees

53. New LTI Program – Performance Rights A select group of key employees will be granted performance rights to acquire shares in the company 50% of the rights have an Earnings Per Share hurdle 50% of the rights have a Total Shareholder Return hurdle Performance period for testing is three years after grant date Rights cannot be vested for three years after grant date Percentage of rights that will vest is determined by EPS growth performance and TSR performance compared to ASX peer group of companies Program proposed to begin 1 July 2010

54. General Staff Remuneration Remuneration consists of two key elements: Fixed remuneration (salary) Variable remuneration for selected employees Short-Term Incentive (STI) – based on performance against company, business unit and personal performance KPIs

55. Non-Executive Director Remuneration Objective The board seeks to set aggregate remuneration at an appropriate level to attract & retain Directors of the highest calibre at an acceptable cost Structure Each NED receives a fixed fee and sits on at least one Board committee Audit & Risk Management Committee or Human Resources Remuneration & Nomination Committee An additional fee is paid for chairing a Board committee, in recognition of the additional time commitment and responsibility required NEDs are encouraged to hold shares in the Company (purchased by them on market). Two of the NEDs are substantial shareholders in the company – Tom Kiing and Lucy Turnbull NED fees are generally reviewed every two years (last review was 1 Jan 2009)

56. Non-Executive Director Remuneration NED Deferred Share Plan was suspended at end of 2009 due to government legislation changes on the taxation of share plans NED agreed not to take a fee increase in 2009 For 2010, the NED base fee is $75,000 with an additional $10,000 for Board Committee Chairs The Board Chairman’s fee is set at 2.3 x NED base fee

57. Resolution 2 – Adoption of Remuneration Report Questions? Resolution: To adopt the Remuneration Report for the year ended 31 December 2009

58. Resolution 3 – Exclusion of Performance Rights from Listing Rule 7.1 To approve the exclusion of performance rights issued under the proposed Melbourne IT Performance Rights Plan from the 15% cap in Listing Rule 7.1 of the ASX Listing Rules

59. Resolution 4 – Issue of Performance Rights to Managing Director To approve the grant of performance rights to the Managing Director, Mr Theo Hnarakis, under the proposed Melbourne IT Performance Rights Plan

60. Questions Any final questions?

61. 2010 AGM Melbourne, Australia 25 May 2010