Chorus Investor Roadshow

Chorus Limited
Level 10, 1 Willis Street
P O Box 632
Wellington 6140
New Zealand
Email: company.secretary@chorus.co.nz


STOCK EXCHANGE ANNOUNCEMENT

16 October 2017


Chorus Investor Roadshow

The attached presentation has been prepared by Chorus for an international
roadshow.

ENDS
For further information:
Brett Jackson
Investor Relations Manager
Phone: +64 4 896 4039
Mobile: +64 27 488 7808
Email: brett.jackson@chorus.co.nz

---

Chorus Roadshow Presentation
October 2017

1.Introducing Chorus3-7
2.A fibre future8-13
3.New Zealand’s Broadband Market14-23
4.FY18: What we’re focused on24-28
5.Financial Highlights29-34
6.Appendices35-41
2
TABLE OF CONTENTS
Chorus Investor Roadshow -October 2017

3
NEW ZEALAND
>Land mass of 268,000 square kilometres
1,600 kilometres long; 400 kilometres wide
>NZ population approximately 4.79 million
~87% live in urban areas
100,000 record population growth in FY17
half of population growth in 15-39 age group
>Market orientated economy
real economic growth, as measured by changes in
Gross Domestic Product, has increased annually
between 2% to 4% since 1993.
official cash rate 1.75%
1Euro = 1.66NZD
1GBP =1.86NZD
Chorus Investor Roadshow -October 2017

KEY CHORUS HIGHLIGHTS
4
Leading provider of fixed line communications infrastructure in N.Z. with significant network build experience
Highly competitive retail broadband market driving fibreuptake, supported by population/premises growth
Cornerstone partner in the Government’s Ultra-Fast Broadband initiative, with UFB capex supported by
Government financing
Experienced management team with proven ability in rolling out and operating fixed line communications
networks
Commitment to maintaining a BBB credit rating (S&P, or equivalent)
Chorus Investor Roadshow -October 2017
Broadband emerging as 4
th
utility, supported by growing bandwidth demand and streaming video trends
Majority of revenues regulated or contracted to the Crown to 2020, with an expected shift to a building
block regulatory framework thereafter

5
>New Zealand’s largest fixed line communications infrastructure
business
established in Dec 2011 following demerger from Telecom NZ
listed on NZX and ASX: CNU
~NZ$1.6 billion market capitalisation (at 30 Sept 2017)
S&P “BBB” stable; Moody’s “Baa2” stable
>A nationwide copper and growing fibre network
~1.58m connections, including ~1.18m broadband
halfway through 11-year fibre to the premises rollout
streaming video services driving significant data consumption
average NZ household consumed 162GB in Sept 2017
>~1,000 employees, 80%+ engagement since 2012
supported by ~4,000 contractors and subcontractors
first NZ employer to win supreme award in Aon Hewitt Best
Employers awards
AN OVERVIEW OF CHORUS
Chorus Investor Roadshow October 2017

6
THE CHORUS NETWORK
>We operate a nationwide wholesale
access network of fibre optic and
copper cables connecting homes and
businesses
cables typically connect back to our
local telephone exchanges, often via
broadband cabinets
our fibre also provides backhaul to
many mobile network sites/towers and
retail service provider networks
Chorus-owned
Commonnetwork assetsOur copper networkOurfibre network
~600 local exchanges
~11,000 cabinets
~280,000 poles
~30,000km duct network
~130,000km copper
FTTN broadband footprint to ~90% oflines
VDSL broadband to ~80% of lines
Vectoring upgrade outside Chorus UFB areas
~46,000km fibre
FTTP available to ~1.36m customers by Dec 22
point-to-point fibrein CBD areas
fibreto multiple mobileprovider cellsites
Chorus Investor Roadshow -October 2017

TRANSITION TO A REGULATED UTILITY MODEL
7
>Existing copper regulatory framework uses benchmarking and Total Service Long Run Incremental Cost
>Government policy preference to introduce a utility-style building block methodology for fibre networks
>Draft legislation introduced to Parliament in August suggests the following regulatory framework from
2020:
87% of population where fibre will be available by end of 2022
Remaining 13% of population
Note: Legislative process subject to new
Government, followed by the Commerce
Commission process to set input
methodologies
Chorus Investor Roadshow -October 2017
Fibre –post 2020 utility framework

A Fibre Future
8
Our public private partnership to deploy ultra-fast broadband

9
NEW ZEALAND IS TAKING FIBRE FURTHER...
>From Auckland, New Zealand’s largest city
▪population: 1.495m (2016)
>To Ahaura, in the South Island’s West Coast
▪population: 370 (2013)
>Ultra-fast broadband (UFB): a Government objective
▪original objective (UFB1): fibre to premises covering 75%of population by 2020
▪subsequent agreements have extended coverage goal to 87% of population by the end of 2022
Chorus Investor Roadshow -October 2017

10
A PUBLIC PRIVATE PARTNERSHIP
UFB1: to be completed by Dec 2019
Crown investment: $1.345b
Premises* covered: ~1.174m
Homes and businesses covered: ~1.526m
Population covered: 75%
>Chorus is a cornerstone partner in the UFB rollout
▪requirement that Chorus split from Telecom NZ to participate: demerger in December 2011
▪Crown partnerships with four fibre companies: Chorus, Enable, Northpower, Ultrafast Fibre
Chorus’ UFB1 role
~830,900 premises to pass
(includes ~44k greenfields)
estimated communal capex of
$1.75b to $1.8b
Crown funding of up to $929m
(50:50 equity/debt)
connection capex subject to
demand: ~1.1m homes and
businesses
FY18 average cost to connect:
$1,050 -$1,200 (excluding layer 2
and including standard installations and
some non-standard single dwellings and
service desk costs)
Chorus Investor Roadshow -October 2017

11
* Includes estimated 43k greenfieldspremises for UFB1
Premisesto be passed by
Chorus by Dec 2022
~1,054,000*
Customers able to connect by
rollout end
~1.36 million
Estimated communal capex to
pass premises
$2.26 to 2.37 billion
Crown funding Up to 1.33 billion
(57:43equity/debt)
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23
Chorus rollout schedule –indicative only*
UFB1UFB2 & UFB2+
Chorus Investor Roadshow -October 2017
* UFB1 build ends Dec 2019 and UFB2 build ends Dec 2022. Detailed scheduling for UFB2 & UFB2+ to be completed by end 2017.
FIBRE EXTENDED TO 87% OF POPULATION
>The Government announced extensions to the UFB1 rollout in January and September 2017
▪fibre to reach another ~12% of population across ~370towns and rural communities
▪Chorus has increased its share of these additional UFB phases
Premises
passed

UFB ROLLOUT STAGES
>The fibre rollout currently occurs in two stages
▪Stage 1: communal network deployment
•the fibre network is built along the street to
enable future connections from each property
boundary
•the cost of this work is reported as cost per
premises* passed (CPPP)
•Government funding is received for
premises passed
▪Stage 2: connection from boundary to
premises
•the connection to the home is built from the
street to the premises when a request is
received from the customer, via their retailer
•this is fully funded by Chorus and is reported as
cost per premises connected (CPPC)
Stage 1:
Communal
Stage 2: Connection
2 fibre pairs fully ducted
from the street to an
Optical Network Terminal
inside the home
*A “premises” for the purposes of UFB contracts includes office buildings or multi-dwelling units that may have multiple tenants
Chorus Investor Roadshow -October 2017
12

13
UFB COSTS
0
50
100
150
200
250
300
350
400
450
500
FY12FY13FY14FY15FY16FY17
Fibre connections + layer 2UFB communalUFB communal - Crown financing
Chorus Investor Roadshow -October 2017
$NZm
Includes capitalised service desk costs
>FY17 cost per premises passed (CPPP): $1,651
vs $1,550 -$1,650 guidance ($41m W.I.P)
>FY17 cost per premises connected (CPPC) of
$1,122* vs $1,100 -$1,250 guidance
*excludes layer 2; includes standard installations and some
non-standard single dwellings and service desk costs
>$640m received as Crown financing to 30 June 2017
($1,118 per premises passed x 572,000 premises)
>Communal capex has reduced as build transitioned to less
costly suburban areas
>Connection capex subject to demand and connection type
0
1000
2000
3000
4000
5000
FY13FY14FY15FY16FY17
Cost per premises connected
Cost per premises passed
$NZ
Fibre: average cost per premises
Total fibre capex: communal vs connections

New Zealand’s
broadband market
14

>Demand for broadband continues to grow, helped by continued premises/population growth
>The fibre rollout is a churn event with smaller retailers growing their share of overall market
15
Source: IDC
Source: IDC
BROADBAND MARKET OVERVIEW
Chorus Investor Roadshow -October 2017
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
I D C –B ro a d b a n d m a r ke t s h a re b y te c h n o l o g y
Chorus xDSLChorus mass market fibre
Chorus premium fibreLocal fibre companies (UFB)
Other fibre networksOther xDSL
Vodafone cableFixed (mobile) wireless
Legacy fixed wireless, satellite
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
I D C -B ro a d b a n d m a r ke t s h a re b y re t a i l e r
SparkVodafoneOrconVocus2degreesTrustpowerROM

>Strong retail competition
▪100Mbps fibre as entry level plan
▪bundled content (e.g. Netflix, Sky TV) and/or
electricity (e.g. Trustpower, Vocus, Contact)
▪differentiation based on unlimited data and
product giveaways (e.g. smart TV, Netflix)
>Our network competes with:
Vodafone’s HFC network in Christchurch,
Wellington and Kapiti
local fibre companies
other fibre networks typically focused on the
backhaul and business markets
mobile and fixed wireless networks
Vocus
16
MARKET DYNAMICS
Chorus Investor Roadshow -October 2017

CHORUS CONNECTION TRENDS
30 Sept
2016
31 Dec
2016
31 March
2017
30 June
2017
30 Sept
2017
Unbundled
copper
105,00099,00090,00082,00076,000
Baseband copper
(no broadband)
354,000343,000328,000313,000302,000
Fibre broadband
(GPON)
203,000231,000259,000292,000328,000
VDSL
(includes naked)
179,000199,000224,000244,000294,000
Copper ADSL
(includes naked)
847,000784,000716,000650,000562,000
Data services
(copper)
10,0009,0009,0008,0007,000
Fibre premium
(P2P)
13,00013,00013,00013,00013,000
Total fixed line
connections
1,711,0001,678,0001,639,0001,602,0001,582,000
>Total connections 1,582,000at 30 September
copper lines with no broadband declining (baseband copper and unbundled copper)
Q1 slowdown in decline of broadband connections to 1,184,000
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
30-Jun-1630-Sep-1631-Dec-1631-Mar-1730-Jun-1730-Sep-17
Data services (copper)Fibre premium (P2P)
Fibre broadband (GPON)VDSL
Copper ADSLUnbundled copper (no broadband)
Baseband copper (no broadband)
Copper ADSL
VDSL
Fibre (GPON)
UCLL
Baseband copper

GrowingconnectionsReducingconnections
Broadbandpenetration at an estimated 85%and continues to
grow. Fibre established as the premium product and our
expanding fibre footprint is expected to help win customers from
wireless and HFC networks.
Growing network competition as local fibre companies (LFCs)
expandtheir fibrefootprint:~140k connections at 30 June 2017
(~85k FY16) out of planned footprint of ~450k customers.
Intense retail competition is helping broaden the market by
providing customers with attractive plans and pricing (e.g. free
smart TV; free Netflix).
Fixedwireless (mobile) retailers actively encouraged their
existing low data customers onto their own networks in FY17.
Government funded Rural Broadband Initiative will extend
wireless coverage to a further ~70k rural addresses.
Population and premises growth is providingunderlying market
growth: Aucklandcity is projected to account for over half of
NZ’s expected population growth to 2040 with 400,000 new
homes.
Continued migration of voice only lines to mobile/wireless and
consolidation of multiple voice lines as technology options
become more mainstream and population ages.
CONNECTIONS DRIVERS
Chorus Investor Roadshow -October 2017
INDICATIVE CONNECTIONS BYZONE AT 30 SEPT
(note: zones not yet defined to reflect UFB2+ areas)
Chorus
UFB1 & 2 areas
Non-UFB1 & 2 areasLocal Fibre Company
UFB 1 & 2 areas
TOTAL
Copper connections –no broadband
Broadband –copper and fibre
241,000
866,000
62,000
170,000
75,000
148,000
378,000
1,184,000
TOTAL 1,107,000232,000223,0001,562,000*
*Excludes the 20k business fibre/copper data connections
18

0
10
20
30
40
50
60
70
80
90
100
Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17
<100Mbps100Mbps200Mbps
GigabitEducationBusiness 100Mbps+
19
39% uptake with 309,000connections within UFB deployed footprint at 30 September
73%of mass market fibre plans now 100Mbpsor higher (FY16:54%)
Total mass market fibre uptake by plan type
50/10Mbps
$40.50/month
100/20Mbps
$43/month
% of
plans
3%
8%
14%
24%
35%
0%
5%
10%
15%
20%
25%
30%
35%
0
50000
100000
150000
200000
250000
300000
Jun-13Jun-14Jun-15Jun-16Jun-17
UFB uptake FY13-FY17
Customers connected% Uptake
FIBRE UPTAKE HAS EXCEEDED EXPECTATIONS
Chorus Investor Roadshow -October 2017

0
5000
10000
15000
20000
25000
Chorus fibre connection activity -all NZ
Connections built and activatedAdditional connections completed
Orders
20
(net of cancellations and rejections in the month)
0
10
20
30
40
50
60
F irst time fibre orders received
a s a % of fibre ca pa ble a ddresses
(by rollout yea r )
FY12FY13FY14FY15FY16
%
DEMAND HAS INCREASED EACH YEAR
Chorus Investor Roadshow -October 2017
>40,000 new fibre connections built in Q1, our highest
ever quarter for build

0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Sep-16Dec-16Mar-17Jun-17Sep-17
21
UFB1 UPTAKE BY REGION
% uptake relative
to capable
addresses
39%
AVERAGE
UPTAKE
ROLLOUT COMPLETED IN THESE AREAS
Chorus Investor Roadshow -October 2017

>Monthly average data usage per
connection on our network grew 52% in
FY17 to 162GB
▪we’re forecasting ~680GB monthly average
by 2020
DATA DEMAND IS GROWING RAPIDLY
22
>Streaming video is becoming mainstream
▪1 in 4 NZersusing a streaming service in 2016
▪~50% of Sky TV set-top boxes are now
internet capable
▪4K TVs use 7GB per hour
▪~62% households on unlimited data plans
Chorus Investor Roadshow -October 2017
0
50
100
150
200
250
300
CopperFibreAverage
Source: Statistics NZ ISP Survey June 2017
6%
5%
8%
33%
51%
62%
0%
20%
40%
60%
80%
100%
201220132014201520162017
Share of residential connections by data cap
Unlimited
100GB or
more
50GB to
100GB
20GB to
50GB
5GB to 20GB
Under 5GB
GB

23
FIXED LINE NETWORKS DELIVER LOWEST COST PER GB
>51% increase in Chorus network traffic at ~9pm between June 2016 and June 2017
Chorus network traffic by time of day
Chorus Investor Roadshow -October 2017

FY18: What we’re focused on
24

BETTER BROADBAND
>Driving broadband uptake and retention
▪Ask for better campaign continues to raise
awareness of VDSL and fibre availability
▪targeted incentives for retailers to migrate
ADSL/UCLL connections to better broadband
and win back off-net connections
25
>Providing customers with a network that is
fast, reliable and congestion free
▪~$20m investment in vectored VDSL in FY18 in
areas outside our planned UFB footprint
▪will significantly improve VDSL speed (e.g.
~100Mbps at 600m; 50Mbps at 1km)
▪indicative footprint (outside UFB1 & 2 areas) is:
•~40% would get >30Mbps
•~30% would get >50Mbps
•~20% would get >100Mbps
Chorus Investor Roadshow -October 2017

26
>We’re reshaping Chorus to lift customer
experience and reduce cost
▪new executive structure
▪emphasis on end-to-end customer experience
to simplify systems and processes
▪trialling new fibre migration methods with the
aim of reducing customer effort to <1 day
▪preparing for new regulatory framework and a
post UFB rollout environment
TRANSFORMING CUSTOMER EXPERIENCE & COST
Chorus Investor Roadshow -October 2017

>Ongoing operational focus on delivering our contracted UFB rollout on time and on budget
>Continue to work towards a new regulatory framework that supports efficient private sector investment to
meet network upgrades and increasing consumer demands
Initial RAB
value
Regulatory
WACC
Depreciation
Regulatory
tax allowance
Return on
capital
Return of
capital
Opex
ANNUAL MAXIMUM
ALLOWABLE
REVENUE
Anchor and price
capped products:
voice
100/20Mbps fibre
direct fibre
Capex
RAB
Asset lives
Building block
cost stack
NB. Symmetrical wash-
up for undersor overs
27
DELIVERING THE FUTURE BROADBAND NETWORK

28
CREATING OPPORTUNITIES TO GROW
>Identifying new open access
business opportunities
▪fixed line and 5G: we see a
complementary future
▪strong demand for trial data
centre; more sites planned
▪national backhaul contract with
2degrees
▪emerging demand for smart
locations (non-broadband access
points)
Chorus Investor Roadshow -October 2017

Financial Highlights
29
Financial overview and capital management

30
1,050
1,057
1,058
1,006
1,008
1,040
FY12FY13FY14FY15FY16FY17
Revenue ($m)
1,073
1,067
662
663
649
602
594
652
FY12FY13FY14FY15FY16FY17
EBITDA ($m)
#
669
653
2.7x
2.9x
2.7x
3.1x
3.1x
3.0x
FY12FY13FY14FY15FY16FY17
Senior ND/EBITDA
FINANCIAL SNAPSHOT
>Build of UFB network will increase leverage metrics through to completion of UFB1 in 2019
>FY12 results pro-forma post demerger
*FY15 and FY16 earnings impacted by benchmarked pricing (effective 1 Dec. 2014 to 15 Dec. 2015). ‘Dotted’bars reflect the FY revenue / EBITDA
that would have been recorded if the FPP pricing was applied to these financial reporting periods.
# EBITDA is a non-GAAP financial measure
*
*
**
*
*
Chorus Investor Roadshow -October 2017

FY18 guidance FY17 result
UFB1 Cost Per Premises
Passed (CPPP)
$1,500 -$1,600$1,651
UFB2 communal capex
$50m -$70m
(based on estimated starting premises of 30,000 to 40,000 and premises
handed over of 5,000 to 15,000)
UFB1 Cost Per Premises
Connected
(CPPC)
$1,050 -$1,200
(excluding layer 2 and including standard installations and some non-
standard single dwellings and service desk costs)
$1,122
Fibre connections &
layer 2 capex
$260 –$290m (based on mass market 152,000 fibre connections,12,000
backbone builds and 2,500 premium business fibre connections and
including service desk costs)
$258m
FY18 Gross capex
$780 –$820m$639m
FY18 EBITDA
$625 –650m$652m
31
UFB programme guidance
UFB1 Communal
guidance: $1.75 -$1.8
billion
Tracking toward the top half of this programme guidance, excluding additional splitter investment.As a
result of higher than anticipated fibre uptake, Chorus is bringing forward the investment of additional
splitters prior to 2020, and expects to spend up to $30 million on this capability by 2020.This additional
expenditure is growth related.
Chorus Investor Roadshow -October 2017
FY18 GUIDANCE SUMMARY

>FY18 GUIDANCE: $ 780m -$820m
Fibre $590m-$625m
~$10m capitalisation (IFRS 15)
~$10m pole replacement programme in Chorus
UFB areas
$50-70m spend forecast for UFB2 communal
Growth in forecast fibre connections
Copper$125m-$145m
~$50m capitalisation of items previously
expensed (IFRS 15)
~$20m VDSL vectoring investment
~$10m pole replacement programme across the
balance of the network
Common: $50m-$65m
32
CAPEX SUMMARY
52
33
40
57
61
60
67
79
566
504
486
503
FY14FY15FY16FY17FY18
GUIDANCE
Historical gross capex and illustrative FY18 profile
CommonCopperFibre
125-145
50-65
590-625
$780 -$820m
$639m
Chorus Investor Roadshow -October 2017
$593m
$597m
$679m

>The Chorus Board considers that a ‘BBB’ credit rating or
equivalent credit rating is appropriate for a company
such as Chorus. It intends to maintain capital
management and financial policies consistent with these
credit ratings.
▪FY18 dividend guidance of 22cps, subject to no material
adverse changes in circumstances or outlook.
A Dividend Reinvestment Plan has been available to NZ
and Australian resident shareholders with a 3% discount
to prevailing market price.
The FY17 final dividend was underwritten with 54% DRP
uptake.
33
CAPITAL MANAGEMENT
0
5
10
15
20
25
30
FY12*FY13FY14FY15FY16FY17FY18
Chorus dividend profile
During the UFB build programme to 2020, the Board
expects to be able to provide shareholders with
modest dividend growth from a base of 20cps per
annum, subject to no material adverse changes in
circumstances or outlook.
Dividend
suspended
during copper
pricing review
FY12*: prorated for the post
demerger period of seven months
cps
Chorus Investor Roadshow -October 2017

As at
30 June 2017
$m
Borrowings1,862
+ PV of CFH debt
securities (senior)
99
+ Net Finance leases154
Sub total2,115
-Cash(170)
Total net debt1,945
Net debt/EBITDA2.98 times
Financial covenants require senior debt ratio
to be no greater than 4.75 times
>At 30 June, debt of $1,862m comprised:
▪Long term bank facilities $350m undrawn
▪NZ bond $400m
▪Euro Medium Term Notes $1,462m (NZ$ equivalent at hedged rates)
34
DEBT PROFILE
NZ
$M
677
400
785
5959
89
113
27
46
78
96
0
200
400
600
800
2018201920202021202220232024202520262027202820292030203120322033203420352036
CFH debt securities available
Face value of CFH debt securities issued
EUR EMTN
NZ Bond
GBP EMTN
Term debt profile at 30 June 2017 (NZ$m)
Chorus Investor Roadshow -October 2017

Appendices
35

36
UFB2 & UFB2+ DETAILS
UFB2: to be completed by Dec 2022
Crown investment: $307m
Premises* covered: ~200k
Homes and businesses covered: ~216k
Population covered: 9%
UFB2+: to be completed by Dec 2022
Crown investment: $130m
Premises* covered: ~60k
Homes and businesses covered: ~60k
Population covered 2%
Chorus’ UFB2 role
to pass ~168,000 premises = estimated communal capex of $370m to
$410m*
Crown funding of up to $298m (65:35 equity/debt)
connection capex subject to demand: ~203,000 homes and businesses
estimated cost of $1,500-$1,700 per connection (in 2017 dollars and including
layer 2, backbone costs for MDUs and rights of way with 10 or fewer premises)
Chorus’ UFB2+ role
to pass 54,500 premises = estimated communal capex of $135m to
$155m*
Crown funding of up to $109m (100% equity)
connection capex subject to demand: ~60,000 homes and businesses
estimated cost of $1,500-$1,700 per connection (in 2017 dollars and including
layer 2, backbone costs for MDUs and rights of way with 10 or fewer premises)
*includes rights of way with more than 10 premises
Chorus Investor Roadshow -October 2017
>The Government announced extensions to the UFB1 rollout in 2017
▪UFB2 announced January 2017
▪UFB2+ announced September 2017
Government UFB rollout

FY17
$m
FY16
$m
Operating revenue1,0401,008
Operating expenses(388)(414)
Earnings before interest, tax,
depreciation and amortisation (EBITDA)
652594
Depreciation and amortisation(339)(327)
Earnings before interest and income tax313267
Net interest expense(154)(140)
Net earnings before income tax159127
Income tax expense(46)(36)
Net earnings for the year11391
37
>FY16 EBITDA was impacted by five and a
half months of benchmark copper pricing
Chorus Investor Roadshow -October 2017
INCOME STATEMENT

** These costs are impacted by a changed capitalisation approach in FY17
REVENUE
FY17
$m
FY16
$m
Basic copper450489*
Enhanced copper248242*
Fibre198133
Value Added
Network Services
3635
Field Services7683*
Infrastructure2320
Other96
Total1,0401,008
EXPENSES
FY17
$m
FY16
$m
Labour costs74**78
Provisioning4360
Network maintenance8789
Other network costs2734
IT costs60**65
Rents, rates and property
maintenance
3028
Regulatory levies1313
Electricity1414
Consultants104
Insurance33
Other2726
Total388414
*included ~6 months of the final copper pricing determination
38
Note: simplifying revenue categories for FY18
Chorus Investor Roadshow -October 2017

CategoryDescription
FY17
$m
Copper line (no broadband)Revenues received for copper lines where no broadband service is provided by Chorus (i.e.
‘voice only’ UCLL, SLU, SLES, Baseband IP, UCLFS lines).
163
Copper based broadbandRevenues received for copper lines where an ADSL or VDSL broadband service is provided by
Chorus, including the backhaul (tail extension services) relating to these services.
501
Data services (copper)Revenues received for the ~8,000 data services connections on copper. 32
Fibre broadband (GPON)Revenues for business and residential fibre connections on GPON.123
Fibre premium (P2P)Revenues for enterprise/network grade bandwidth and direct (dark) fibre point-to-point (P2P)
connections.
Note: Includes regional backhaul previously included in Value Added Network Services and fibre
backhaul for copper connections previously included in Basic Copper.
79
Value added network
services
Revenues for carrier grade data transport services and aggregation handover links.34
InfrastructureNo change23
Field servicesNo change76
Other revenueNo change9
Total revenue1,040
FY18 REVISED REVENUE REPORTING CATEGORIES
39
Chorus Investor Roadshow -October 2017

40
Regulated copper pricing: effective 16 December 2015
Copper line only
Year 1 -$29.75
Year 2 -$30.22
Year 3 -$30.70
Year 4 -$31.19
Year 5 -$31.68
Copper line with broadband
Year 1 -$41.19
Year 2 -$41.44
Year 3 -$41.71
Year 4 -$42.02
Year 5 -$42.35
Fibre premium point-to-point products
High Speed Network Service
Premium/Bitstream4
100Mbps to 1Gbps over Ethernet. $380+Pricecapped in Chorus UFB areas until end of 2019
with subsequent pricing subject to regulatory
framework.
DirectFibre AccessLayer 1 (unmanaged) dark fibre.$355
BandwidthFibre AccessLayer 1 bandwidth managed fibre.100Mbps,1Gbpsor 10Gbps.$380+
Commercial products.Prices subject to change on
notice, but must be within UFB contracted price cap
in Chorus UFB areas.
IntraCandidate Area
Backhaul
Layer 1 or 2 fibre backhaul, used between local exchanges within UFB
areas.
$450+
Chorus Regional TransportConnecting New Zealand's major UFB centres with 10Gbps and 100GE
bandwidth options.
various
Key mass market (GPON) fibre product pricing asat 01 July 2017
Voice only
$25.00
UFB contracted products.
FY19pricing applies until end of 2019 with subsequent
pricing subject to regulatory framework.
50/10Mbps
FY17: $40.50
FY18: $41.50
FY19: $42.50
100/20Mbps
FY17: $43
FY18: $44
FY19: $45
Commercial products.Prices subject to change on notice,
but must be within UFB contracted price cap in Chorus
UFB areas.
200/20Mbps
FY17-FY19: $55
1Gbps residential
FY17-FY19:$65
1Gbps business(SME)
FY17-FY19:$75
Business 100/100Mbps
to 1G/1G
FY17-FY19:$175+UFB contracted product. FY19pricing applies until end of
2019 with subsequent pricing subject to regulatory
framework.
Chorus Investor Roadshow -October 2017
CHORUS WHOLESALE PRICING –KEY SERVICES

This presentation:
•Is provided for general information purposes and does not constitute investment advice or an offer of or invitation to purchase
Chorus securities.
•Includes forward-looking statements. These statements are not guarantees or predictions of future performance. They involve
known and unknown risks, uncertainties and other factors, many of which are beyond Chorus’ control, and which may cause
actual results to differ materially from those contained in this presentation.
•Includes statements relating to past performance which should not be regarded as reliable indicators of future performance.
•Is current at the date of this presentation, unless otherwise stated. Except as required by law or the NZX Main Board and ASX
listing rules, Chorus is not under any obligation to update this presentation, whether as a result of new information, future
events or otherwise.
•Should be read in conjunction with Chorus’ audited consolidated financial statements for the year to 30 June 2017 and NZX and
ASX market releases.
•Includes non-GAAP financial measures including "EBITDA”. These measures do not have a standardised meaning prescribed by
GAAP and therefore may not be comparable to similar financial information presented by other entities. However, they should
not be used in substitution for, or isolation of, Chorus' audited consolidated financial statements. The EBITDA information used
in this presentation has been subject to audit.We monitor EBITDA as a key performance indicator and we believe it assists
investors in assessing the performance of the core operations of our business.Refer to the appendices of Chorus’ 2017 annual
results investor presentation for further detail relating to EBITDA measures.
•Has been prepared with due care and attention. However, Chorus and its directors and employees accept no liability for any
errors or omissions.
•Contains information from third parties Chorus believes reliable. However, no representations or warranties are made as to the
accuracy or completeness of such information.
41
Disclaimer