InvestorPresentation

andStrategyUpdate

February2016

ASX:NOR

2 Disclaimer

This presentation has been prepared Norwood Systems Ltd (the “Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters.

No representation or warranty (whether express or implied) is made by the Company or any of its officers, advisers, agents or employees as to the accuracy, completeness or reasonableness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or provided in connection with it, or any omission from this presentation, nor as to the attainability of any estimates, forecasts or projections set out in this presentation.

This presentation is provided expressly on the basis that you will carry out your own independent inquiries into the matters contained in the presentation and make your own independent decisions about the affairs, financial position or prospects of the Company. The Company reserves the right to update, amend or supplement the information at any time in its absolute discretion (without incurring any obligation to do so).

Neither the Company, nor its related bodies corporate, officers, their advisers, agents and employees accept any responsibility or liability to you or to any other person or entity arising out of this presentation including pursuant to the general law (whether for negligence, under statute or otherwise), or under the Australian Securities and Investments Commission Act 2001, Corporations Act 2001, Competition and Consumer Act 2010 or any corresponding provision of any Australian state or territory legislation (or the law of any similar legislation in any other jurisdiction), or similar provision under any applicable law. Any such responsibility or liability is, to the maximum extent permitted by law, expressly disclaimed and excluded.

Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in the Company.

Future matters

This presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of the Company.Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of the Company may be influenced by a number of factors, many of which are outside the control of the Company. No representation or warranty, express or implied, is made by the Company, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved.Given the risks and uncertainties that may cause the Company’s actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. The Company does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended.

US Disclosure

This document does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of any “US person” as defined in Regulation S under the US Securities Act of 1993 (“Securities Act”). The Company’s shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exemption from registration including an exemption for qualified institutional buyers.

3 Overview

Norwoodprovidesvoice,messaging anddataservicestoconsumers,enterprises and

carriersaroundtheworld,leveraging itsglobal federatedtelecommunications services

networkpartnerships.

Norwooddeliversamazingend-user communications Appsthatstreamline andsimplify

howusersaroundtheworldcanaccess affordable,high-qualitytelecommunications

services – anywhere,anytime.

Keyhighlights:• Addressing aA$1trillionmobile servicesmarket.Havegenerated A$0.5million inApp

revenueinprevious6months.

• Theaward-winning,successfulWorldPhone App willbe joinedbytwonewApps:

WorldMessageand WorldWi-Fi.• Theaward-winningCORONA (COrporateROamingNetworkAccess)platformisadding

capabilities toaddresstheSMBsector,whileprovidinganewabilitytoconnectentire

officevoicenetworkstotheback-endCORONAcorenetwork.

4 Key achievements since listing on June 16, 2015

Operational• WorldPhone, successfullylaunchedJul2015,currentlyfollowingapathtoprofitablemonetisation

• 3.3milliondownloads in6months,activeusersinmorethan200countriesand5100cities

• AnnualisedrevenuerunratenearingA$2millionp.a.

• LaunchedAndroidversionontimeon30Nov2015

• KeyCORONApatentawarded

Financial• OversubscribedfirstraisingofA$5.5millionatA$0.02/share– Jun2015

• Oversubscribedsecondraisingfrominstitutions/retailofA$7.1millionatA$0.08/share– Nov2015

• Funds appliedtomarketing,customeracquisitionandR&D

• Grownshareholdervalueby200+%sincelistinginJune2015

Corporate• SeniorLeadershipTeam– appointedSteveTot(VPSales),NickHorton(VPMarketing)inOct2015

• StrengthenedBoard- appointmentofGilesEveristasNon-ExecutiveDirectorinNov2015

• Activelyrecruitingfurtherseniorrolestobuildoutinternalcapability

5

Paymentsprovider

partnershipsannouncedwithStripe&PeppermintInnovation

22December2015

Progress since listing

Listing andrecompliance

16June2015

LaunchofWorldPhone foriOS31July2015

DualWAITTAInciteAwardWinner

21June2015

Corona– firstEnterpriseclients18June2015

PartnershipwithBooking.com

30September2015

FirstWorld

Phonerevenuesannounced&300,000downloads

1October2015

NationaliAwardWinner

31August2015

TNZIPartnership24September2015

Growth strategyannounced

23September2015

Jun2015 Jul2015 Aug2015 Sep2015 Oct2015 Nov2015 Dec2015 Jan2016

WorldPhone

150,000downloads4September2015

Secondcapitalraisingof$7.1m

completed

21December2015

Customeracquisition

costs50%lowerthanGrowthStrategyplan

18November2015

32new

languagessupportedinWorldPhone

foriOS

4December

2015

QuarterlyUpdate:Annualisedrevenue$1.9m

(up200%Q-on-Q)

3.3m+WorldPhonedownloadsTop-grossingTravelApp

in116AppStores

29January2016

CoreCORONA

Patentawarded14January2016

AndroidWorld

Phonelaunched1December2015

Strategyupdate

7 Norwood’s Strategic Direction

HavingprovenWorldPhonemarketadoption,Norwoodisnowfocusingonthefollowingstrategicpriorities:

• Creatingamulti-serviceAppportfoliotosupportdiverseend-usercommunicationsneeds– beyondjustvoice

services

• Integrating theCompany’scorporateandenduserplatforms,CORONAandtheWorldApps,tosupportatrue

continuumofusecases;fromindividualusethroughtoSMBs;throughtoEnterprises; throughtoCarriers.

• Building aflexibleandpowerfulcreditmanagementandmonetisationframeworktomaximise theeconomic

potentialofbothoftheseinitiatives andNorwood’songoingservices

• ConsideringWhiteLabel carrier licensing asapathwaytoscale

Norwoodisnowinvestingheavilyinenhancingandaugmenting itsAppsandServicesportfolios,aswellassetting

upnewchannels tomarket:

• Enhancing CORONAtocapture:– SMBcustomers,usingpurelyCloud-basedvoiceservices,whileintegrating theWorldApps

– Fixed-lineofficevoice traffic,usingNorwood’sglobal federatedtelcoaccessnetwork

• Expanding thego-to-market focustoinclude telcolicensingoptions,duetoinboundinterestarisingfromour

highAppStorerankings

• AugmentingTelephonyserviceofferingstoinclude Messaging andData services

8 CORONA Recap

Seamlesscorporateconnectivity– Employeescanroambetweentheircorporate

phonesystemsandpubliclandlinenetworks

– Nochangetotheorganisation’stelephony

numberingplan

– Nochangeofend-userbehaviourneeded

– Supportsaglobalcorporateservicefootprint

Extremelyscalable– Supports100,000sofcorporatenetworks

and1,000sofpartnerlandlinenetworks

– Corecomponentsloadtestedto1,000,000

callinitiationspersecond

Basedonprovenstandards– Usesthecellularnetworks’veryown

standardroamingprotocols:

bullet-proofandwidelydeployed

– Setsstageforfuturecarriersaleschannel

development

PhoneNetworks

(voicetraffic)

Internet(roamingsignaling)

9 Enhancing the CORONA service portfolio

EXISTING

CORONAOn-Prem• On-premisesarchitecture

• Mainlytargetinglarge

organisations’roaming

businesstravellers

NEW

CORONACloud• ‘Cloud-first’scalable

architecture

• Centralisedwebdashboard

formanagingmultipleusers

andgroups

• IdealSMBsolution

Voice,messaging anddataproductsforBusinesses. Usingpatented,award-winningtech.

NEW

CORONAGlobalTrunkServices• Connectsall-of-officevoice

traffictoNorwood’sglobal

federatednetwork

• Singlevendorsolutionfor

multi-sited,multi-country

organisations

GTS

NEXT

NextGenCORONA• Furtherproductsandfeature

enhancementsinroadmap

TBD

10 CORONA Cloud

“Effortlessly addexistingWorldPhoneuserstoyourCORONACloudaccount”“Migrateeasilyfromindividualpre-payusagetocentralisedpost-paycontracts”

• Compelling, simplemigrationforWorldPhoneusergroups

• Centralisedweb-basedadministration, paymentsandreporting• SimilarstrategytoUber forBusiness, DropboxforBusiness, etc.

• ShippingMarch2016

Trademarksreferredtoabovearethepropertyoftheirrespectiveowners.

11 CORONA Global Trunk Services

GTS

“Connectyouroffice(s)directlytoourGlobalFederatedTelcoNetwork”“Dealwithasinglevendorathighlycompetitiverates,acrossborders”• Capturesall officefixed-linevoicetraffic,not justtheroamers• Enablescompanies toconnectdirectlytotheCORONAcoreback-end

• Deployedthroughlocal/regional telco/PBXsystemintegrators

• ShippingApril2016

12 Expanding Norwood’s Channels

Direct-To-ConsumerDigitalMarketing.Highlyeffective,proven,low-costandglobalmeanstoacquireconsumercustomers

DirectandIndirectCorporateSales.TeamnowspansAustralia,US,UK andAsia – also leveraging insights fromdigitalmarketing efforts

todrivepipeline growth

TelcoOperators.OfferWhite-Label version(s)ofNorwood’sservice

platforms– revenueshareorlicensing deals

13 Expanding Norwood’s App portfolio

World Phone

Arevolutionary,simple-to-use, Over-the-Top(OTT)telephonyAppthat

deliversthebestpossible voiceexperience onaglobalscale

World Message

Arevolutionary,simple-to-use OTTmessaging Appthatdeliversagreat

messaging experience onaglobalscale

– Detailswillbereleased inearlyQ22016

World Wi-Fi

Arevolutionary,simple-to-use Appthatdeliversaccess toWi-Fi

networksaroundtheworld

– Detailswillbereleased inearlyQ22016

14 One network, multiple Apps, multiple segments– spanning diverse use cases and markets

Telephony

Messaging

Data

Consumer SMB/Enterprise Carrier/Telco

World Phone World Phone

World Message

White label

White labelWorld Message

World Wi-Fi World Wi-Fi World Wi-FiWhite label

World MessageCORONA Cloud

World Phone CORONA Cloud

15 Norwood’s World App Ecosystem

World Phone World Message

World Wi-Fi

Shared Economy

EconomicFramework….............

Coreserviceapps…....................................... ...................

Accessenabler…...........................................................

NetworkTelcoservices…...................................

World Credit

16 World Credit Update

Userscanpurchasecommon“WorldCredit”

onanyofNorwood’sWorldApps

Acommon,securevaluestore,

tobesharedbetweenApps

EachAppcanusetheavailable

commoncreditbalance forcalls,

SMSs,ordata,respectively

World Phone World Message

SMS Data

World Wi-Fi

V1.0ShippingFebruary2016– bundledwithApp2AppandDynamicPricingV1.0

Calls

17 Global Dynamic Pricing Update

Currentscenario• Userspurchase20minute, 60minute orunlimited calling packs

• Pros:easytounderstand,alwayssame cost

• Cons:doesn’tallowforpricingtochangeandadaptfordifferentroutes,competitive

pressure;confusingpricingforinboundLocalNumbers

HowDynamicPricingWorks• Callschargedonaper-minute basis,usingdynamicallyupdatedpricingtable

• Userswillpre-purchaseWorldCredit (prepay)tospendoncalls

• Controlledbyadynamicmodelthatmaximizesgrosscontribution fromidentified

calling“Corridors”

• Willcreatebasis foradditional competitive differentiation

• Planningforpotentialrevenuevolatilityduringcalibrationphases

V1.0ShippingFebruary2016,bundledwithWorldCredit1.0andApp2App

WorldPhoneupdate

19 World Phone Recap

Aneasy-to-use andhigh-performance Over-The-Top (OTT)Voiceapp

Afirst-rateuserexperience:

Top-rankedTravelApponiOS andAndroid

Deliveringworldwideaccess:

Activeusersin200+countries,5000+cities

Leveraging the“sharingeconomy”:telcopartners inmorethan70countries

20 Controlled, monetisable growth

• WorldPhonehasearnedmorethanA$500,000inrevenuessince launch6monthsago

• Routinely inTop5downloaded/grossingTravelAppranksonbothiTunes&GooglePlay

• “Entrenched” inmanyAppStores,alongside the likesofUber,AirBnB,…

*AppleiTunes AppStoreandGooglePlayStoreanalyticsdata,2Feb2016

-$ 30,000 $ 60,000 $ 90,000 $ 120,000 $ 150,000 $ 180,000 $ 210,000 $ 240,000 $ 270,000 $ 300,000 $ 330,000 $ 360,000 $ 390,000

-400 800

1,200 1,600 2,000 2,400 2,800 3,200 3,600 4,000 4,400 4,800 5,200

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World Phone – Weekly Cumulative Downloads and Revenue

Cum Units Cum. Revenue (USD)

Units (k) Revenue (USD)

Trademarksreferredtoabovearethepropertyoftheirrespectiveowners.

21 Financials / share price / issued capital

CapitalStructure

ASXCode NOR

SharesonIssue 867,609,598

PerformanceShares&Rights1 165,595,070

Options(variousexerciseprices) 95,974,485

SharePrice $0.066

MarketCapitalisation ~$60.7m

Cashonhand(31Dec2015) ~$6.5m

EnterpriseValue $54.2m

Notes:1. Comprising 157,739,522 performance shares and 7,855,548 performance rights,which will convert to fully paid ordinary shares upon the achievement of theMilestones 1 & 2 (conversion of 50%

each) as follows:a) Milestone 1: Norwood being awarded two separate ‘Material Contracts’ whereby a ‘Material Contract’ is defined as a contract with a third party which generates gross revenue to

Norwood of at least $200,000 in any 12 month consecutive periodb) Milestone 2: Norwood generating gross revenue for any 12 month consecutive period of at least $3.0 million

22 Board and Governance

Paul OstergaardManaging Director & Founder

Amit PauNon Executive Director

Giles EveristNon Executive Director

Mike EdwardsNon Executive Chairman

• OneofAustralia’s100Most

InfluentialEngineersin2015

(EngineersAustralia)

• Ledstrategyfora$1bnrevenue

datanetworkplatformat3Com

Corporationinthe1990s

• FoundedandledoneofEurope’s

30HottestTechFirms(rankedby

TimeMagazine)inthe2000s

• PearceyFoundation’sWA

EntrepreneurofTheYearin2014

• MBA(INSEAD),BE(UWA)

• FormerGroupManaging

DirectorforInternational

AccountsandBusiness

MarketsatVodafone

• LeddivisionalunitsofAT&T,

GlobalTeleSystems

• FormerdirectorofVodafone

SpainRadamecPlc

• ManagingDirectorofAriadne

CapitalLtd

• Extensivecorporateand

financingexperienceatCoopers

&Lybrand,RioTinto,Fluor

Australia,andMonadelphous

• HaschairedASXlistedcompanies

andisaDirectorofASXlisted

MacmahonHoldings,Decmil

GroupandAustal

• Over20yearsSenior

Managementexperiencein

theprivateandpublicsector

• FormerCEO,Monteray

MiningGroupandFormer

CEOandExploration

ManagerforASXlisted

LatitudeConsolidated

• Non-ExecDirectorofDawine

Pty

• ConsultanttoVentnorCapital

23 Senior Leadership Team

Paul OstergaardCEO

David WilsonCTO

Mans ShapshakVP Analytics

Mike VosperVP Operations

Nick HortonVP Marketing

Steve TotVP Sales

Technical lead• Newproduct

development• Softwareand

SystemsEngineering

DigitalMarketinglead• Growthhackerteam

Infrastructurelead• Strategic

relationships

Consumerlead• Product

Management• Brand&PR

Enterpriselead• Cloud&OnPremise

solutions• Partnermanagement

50+YearsCumulativeStart-upExperience75+YearsCumulativeTelcoIndustryExperience

Conclusion

25 Investment highlights

4. Cloud-baseddisruptivetechnologyNorwoodisleveraging theSharingEconomytoconnectroamingbusinesstravellers

tolocalhigh-qualitytelecommunicationsnetworks– delivering largesavings

1. AscalablebusinessmodelCommunications-as-a-Service(CaaS)revenuemodel,requiringminimal

CAPEXandOPEX– targetingcarrierpartnersforscale

3. Evolvingfirst-movercorporateroamingsolutionSimple,high-qualityintegration tocorporatenetworks,nowwithpatentedbarrierstoentry– delivering seamlessroaming

2. AmonetisableAppStorepresenceA$500,000ingenerated revenue– justinthepastsixmonths

MostdownloadedTravelAppin109of154AppStorecountries

TopgrossingTravelAppin117of154AppStorecountries

26 Industry valuations

2014

SoldtoJapan’sRakutenforUS$900m

300musers

~US$3peruser

2014

SoldtoFacebookforUS$19bn

450musers

~US$42peruser

2013

23.3%privateinvestment;

impliedvaluationUS$470m

400businessessignedup

~US$1.2mperbusiness

2011

SoldtoMicrosoftforUS$8.5bn

170musers

~US$50peruser

2014

EstimatedvalueUS$13bn1

580musers

~US$22peruser

Note:1. Analyst estimate based on sumof the parts valuation of parent company, SouthKorean listedNaver Corporation.

ShaneMurphyFTIConsulting

Office:+61894858888

Mobile:+61420945291

Twitter:@ShaneWMurphy

Forfurtherinformationcontact:

PaulOstergaardCEOandFounder,NorwoodSystems

Office:+61892003500

Web:www.norwoodsystems.com

Twitter:@paulostergaard,@norwoodsystems

AWorldLeaderin‘SharingEconomy’TelcoServices

Appendix

29 Glossary

Anumberofconsumermobileappindustrymetricsmaybereferredtointhispresentation,alongsidetraditionalfinancialmetrics.Forthebenefitofreaders,thesemetricsaredefinedfurtherbelow.

Revenue formobileappsreferstogrossrevenueearnedfromsaleoftheapplicationtotheconsumer,i.e.priortoanycommission,allocation,salesshareoroverheadetc.takenbyanappstoresuchastheAppleiTunesAppStoreforiOSorGooglePlayStoreforAndroid.Typically,theseappstoreslevyanoverhandofcirca30%ofrevenue.

“Consumable”versus“Subscription”RevenuediscussesthesplitbetweenpurchasesthatareoneoffinnaturesuchasadditionalcallingminutesinsideWorldPhone,orfuturebooking.comcommissionsandsubscriptionrevenuewhichisprimarilycomprisedofleasinglocalnumbers,andplanssuchastheultimateflatratemonthlyplanavailableonWorldPhone.Oneoffrevenue,suchaspurchasingadditionalcallingminutes,isstillclassedasoneoffevenifthesameusermakesmultiplepurchasesinthesamemonth,orregularpurchasesoveranextendedperiodoftime.

RevenueAnnualRunRate referstotheapproximateAnnualRevenuesfromWorldPhonethatwouldbereceived,shouldthecurrentweeklyaveragerevenuecontinueunchanged(alongwithsimilarForeignExchangeRates)forafull12monthperiod.AsWorldPhonehasonlybeenonsalesince31July2015,anannualfigureforsalesisnotyetavailable.ThismetricisNOTaforecastoffuturerevenues,butanillustrationtoassistinvestorsindeterminingthesignificanceofcurrentweeklyrevenuefigures.

CustomerAcquisitionCost(CAC)isdefinedasthefullyattributedmarketingandsalesexpenseassociatedinconvincingacustomertobuyaproduct/service.

LifetimeRevenue(LTV)isdefinedasthedollarvalueofacustomerrelationship,basedonthepresentvalueoftheprojectedfuturecashflowsfromthecustomerrelationship.

AverageRevenueperUserorARPU issimplythetotalamountofrevenueearneddividedbythenumberofusersovertherelevantperiod,suchasweeklyormonthly.Intheindustry,amonthlyperiodismostcommonlyused.Giventhelargenumbersofnon-payinguserspresentinanyconsumermobileapp,average revenuefigureswillalwaysbemuchlowerthanavailablespendingoptionsastherevenuefromspendingusersisaveragedoutacrosstheentireuserbase.Typically,onlyafewpercentofaconsumermobileappuserbasewillspendmoneyonamobileappafterdownloadingtheappforfree.

EngagedUsers referstouserswhohavedonemorethansimplydownloadamobileapp,i.e.theyhaveopenedandusedtheappontheirmobiledeviceatleast.EngagedUsersceasetobecountedasengagediftheyhavenotinteractedwiththeappforagiventimeperiod.Engagement similarlyreferstousersactuallyusingtheapp,ratherthansimplydownloadingtheapp.