Chorus investor roadshow

Chorus Limited
Level 10, 1 Willis Street
P O Box 632
Wellington
New Zealand

Email: company.secretary@chorus.co.nz





STOCK EXCHANGE ANNOUNCEMENT

15 October 2018


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

Nathan Beaumont
Media and PR Manager
Phone: +64 4 896 4352
Mobile: +64 (21) 243 8412
Email: Nathan.Beaumont@chorus.co.nz

---

15 October 2018
INVESTOR ROADSHOW

Contents
>Introducing Chorus3-9
>Broadband: the 4
th
utility10-18
>Shaping our future: FY20 objective and FY19 focus19-26
>Financial performance and capital management27-34
Appendices
A: Pro forma FY17 net earnings36
B: Network maintenance37
C: Broadband market by retailer & technology 38-39
D: Chorus mass market products40
15 October 2018
INVESTOR ROADSHOW
2

Introducing Chorus
New Zealand’s largest fixed line communications infrastructure business
15 October 2018
INVESTOR ROADSHOW

An overview of Chorus
>New Zealand’s largest fixed line communications infrastructure business
established in Dec 2011 following demerger from Telecom NZ
listed on NZX and ASX: CNU; ADR ticker:CHRYY
~NZ$2 billion market capitalisation (at 1 October 2018)
S&P “BBB” stable; Moody’s “Baa2” stable
>A nationwide copper and growing fibre (FTTH) network
~1.5m connections, including ~1.2m broadband
2/3 of way through 11-year fibre to the premises rollout
~930 employees supported by ~4,000 contractors/subcontractors
fibre uptake well ahead of expectations
streaming video services driving significant data consumption
15 October 2018
INVESTOR ROADSHOW
4

The Chorus network: nationwide wholesale access
Our copper network
~130,000km copper
FTTN broadband to ~90% oflines
VDSL broadband to ~80% of lines
Commonnetwork assets
~600 local exchanges
~11,000 cabinets
~280,000 poles
~30,000km duct network
Ourfibre network
~47,000km fibre
FTTP to ~1.36m customers by 2023
point-to-point fibrein CBD areas
connects multiplecell sites
15 October 2018
INVESTOR ROADSHOW
5

New Zealand is taking fibre further
>Ultra-fast broadband (UFB): a Government objective
▪original objective (UFB1): fibre to premises covering 75%of
population by 2020
▪subsequent agreements (UFB2 and UFB2+) have extended
coverage goal to 87% of population by the end of 2022
>Chorus is a cornerstone partner in the fibre 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 (WEL Networks)
▪Chorus was awarded ~75% of UFB rollout
15 October 2018
INVESTOR ROADSHOW
6

~120,000 brownfields premises to be passed across UFB1 and UFB2
expect to claim another ~18k UFB1 greenfieldspremises already passed in prior years
15 October 2018
FY19 is peak communal build year
Programme guidanceNotes
UFB1 communal$1.75 -$1.8 billion
Tracking towards the top end of guidance
and excludes growth (e.g.additional splitter
investment)
UFB1 cost to
connect (CPPC)
$1,050 -$1,250
Fora standard residential connection,
including layer 2 and service desk costs,
and in 2011 dollars. Tracking towards the
top half of the range.
UFB2* communal$505 -$565 million
Combined guidance range for UFB2 and 2+
UFB2* cost to
connect
$1,650 -$1,850
In2017 dollars and including layer 2,
backbone costs for MDUs and rights of way
with 10 or fewer premises and service desk
costs
* combined UFB2 and 2+ rollout plans
INVESTOR ROADSHOW
7
No. of
premises

Surging fibre demand
>50% UFB uptake at 30 Sept (30 June: 45%)
472,000 connections
950,000customers able to connect
714,000 premises passed
15 October 2018
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
UFB rollout and uptake
UFB connectionsUFB available addresses
Planned footprint% Uptake (RHS)
No. of
connections
Uptake
Uptake
Premisesto pass by Dec 2022~1,054,000*
Customers able to connect ~1.36 million
Estimated communal capex to
pass premises
(excludes capex to connect
premises)
$2.26 to 2.37 billion
Crown funding (57:43equity/debt)up to $1.33 billion
*Includes estimated 43k greenfieldspremises for UFB1
INVESTOR ROADSHOW
8

15 October 2018
20% lift in fibre installations YOY
185 installation crews added in FY18
focus on lifting customer satisfaction
achieving “fibre in a day” for 25%of regular
installations > targeting 50% by Xmas
working with retailers to reduce reschedules
Migration campaigns
mix of Chorus-led door knocking and
integrated retailer campaigns
ongoing trials to support fibre in a day and
future copper migration
INVESTOR ROADSHOW
Connecting customers
9

Broadband: the 4
th
utility
15 October 2018
INVESTOR ROADSHOW

15 October 2018
Overview of the New Zealand fixed line market
INVESTOR ROADSHOW
11

0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
Fibre (GPON)
VDSL
Copper ADSL
Unbundled copper
Baseband copper
Chorus connection trends
Voice only connections: 300,000
Broadband connections: 1,190,000
66% of connections on fibreor VDSL
Premium business connections: 17,000
Q1 FY19: 1,507,000 connections
15 October 2018
INVESTOR ROADSHOW
12
No. of
connections

15 October 2018
Chorus connections drivers
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. Vectoring
VDSL upgrade completed in areas outside our fibre footprint.
Growing network competition as local fibre companies (LFCs) expandtheir
fibrefootprint:~190k connections FY18 (~140k FY17).
Intense retail competition is helping broaden the market by providing
customers with attractive plans and pricing (e.g. free smart TV; free
Netflix; bundled with electricity). Unlimited data plans becoming the norm
as streaming video on demand grows.
Fixedwireless (mobile) retailers are encouraging their existing low data
customers onto their own networks. 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 andconsolidation
of multiple voice lines as technology options become more mainstream and
population ages.
INVESTOR ROADSHOW
CONNECTIONS
BY ZONE
Chorus
UFB zone*
Rural
(non-UFB)
zone
Local Fibre
Company
UFB zoneTOTAL
At 30 June 20181,108,000206,000194,0001,508,000**
At 30 Sept 20181,106,000203,000181,0001,490,000**
Copper
connections: no
broadband
189,00050,00061,000300,000
Broadband:copper
+ fibre
917,000153,000120,0001,190,000
* Includes planned UFB1, 2 and 2+ coverage
**Excludes fibre premium and data services (copper) connections
13

15 October 2018
Growing our broadband base
Strong premises growth
government forecasts suggest 39% growth in consents
we’ve redesigned processes for property developers
~3,000 premises pre-connected with fibre in FY18
Competitive network effects ebbing
LFC UFB1 rollouts complete
wireless customers returning as fibre rollout expands,
data demands grow
Wellington rollout entering significant off-net HFC suburbs
leveraging our vectoring VDSL rollout in LFC and rural
areas
MBIE National Construction Pipeline Report forecasts 39% growth in consents
INVESTOR ROADSHOW
14

>46,000mass market fibre connections added in Q1
▪36,000 connections now on gigabit plans (Q4: 30,000)
▪70% of mass market fibre connections on 100Mbps
15 October 2018
Fibre uptake and data demand
0
10
20
30
40
50
60
70
80
90
100
Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17Dec-17Mar-18Jun-18Sep-18
50Mbps100Mbps200MbpsGigabitEducationBusiness 100Mbps+Other
0
50
100
150
200
250
300
350
CopperFibreAverage
% of
plans
Data
usage
(GB)
Monthly average data usage
per connection on our network
Total mass market fibre uptake by plan type
>Monthly average data usage per household connection
on our network grew to 221GB(Sept 2018) from
210GB (June 2018)
▪307GBon fibre (June: 297GB)
▪163GBon copper (June:160GB)
$41.50 monthly
$45 monthly
$65 monthly
INVESTOR ROADSHOW
15

15 October 2018
40% growth in traffic peak: Sept 2017-2018
Network
throughput
(Tbps)
Time of day
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Average Peak Throughput -September
20182017
Fortniteeffect: record
peak traffic 1,792Gbps
on 12 July 2018
INVESTOR ROADSHOW
16

15 October 2018
Live sports to drive streaming uptake
www.chorus.co.nz/streambig
INVESTOR ROADSHOW
17

15 October 2018
71% of NZ broadband connections have no data cap
5%
8%
33%
50%
62%
71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
201320142015201620172018
Share of connections by data cap
Unlimited
100GB or more
50GB to 100GB
20GB to 50GB
5GB to 20GB
Under 5GB
Source: Statistics NZ ISP Survey June 2018
Streaming is driving shift to unlimited data plans
>~1.3m broadband connections are
believed to be on unlimited data
plans, up from ~130k in 2014
INVESTOR ROADSHOW
18

Shaping our future
15 October 2018
INVESTOR ROADSHOW

15 October 2018
Shaping our future
Our aspiration is to return to modest EBITDA growth in
FY20, subject to no material changes in expected
regulatory environment or competitive outlook
utility style framework expected soon
copper>fibre migration
refining our product portfolio
review of service company model
evolving company culture
the rise of wholesale only networks
INVESTOR ROADSHOW
20

15 October 2018
INVESTOR ROADSHOW
21

15 October 2018
Transition to a regulated utility framework
>draft legislation currently before Parliament would implement a utility-style building block methodology for fibre
networks from 2020
▪fibre RAB will include unrecovered losses incurred before 2020
▪pre 2011 assets to be valued at depreciated historical cost; post 2011 assets at depreciated actual cost
▪price cap for 100/20Mbps anchor product to start at 2019 level with annual CPI adjustment for the first regulatory period –currently
2023
▪unbundling of the fibre network to be made available on a commercial basis from 2020
87% of population where fibre will be available by end of 2022
Remaining 13% of population
INVESTOR ROADSHOW
Note: existing copper regulatory framework uses benchmarking and Total
Service Long Run Incremental Cost, with pricing last set in late 2015 for a
5-year period (see Appendix D –Chorus mass market products)
22

15 October 2018
Regulated Asset Base implementation
Building block
cost stack
INVESTOR ROADSHOW
>Commerce Commission will determine the starting value of the RAB, regulatory WACC, cost allocations, expenditure
allowances and maximum allowable revenue
▪if this process extends beyond 1 January 2020, key fibre and copper prices will be frozen, adjusted for inflation, for up to 24 months
23

Proposed RAB framework similar to NZ electricity sector
Growing number of wholesale communication network comparators
CountryCompanyBusiness typeMarket
cap
EV/EBITDANet Debt
/EBITDA
Credit ratingWACC
New
Zealand
Vector Electricity
distribution
network
NZ$3.4b10.7x4.42xBBB –S&P
Baa1 –Moody’s
In April 2018 the NZ Commerce Commission
determined a FY19 WACC of 5.19% (post tax, 67
th
percentile) for electricity distribution businesses
New
Zealand
ChorusWholesale
communications
network (copper
+ fibre)
NZ$2.1b6.1x3.43xBBB –S&P
Baa2 –Moody’s
FibreWACC yet to be determined under new
regulatory framework. In Dec 2015, the NZ
Commerce Commission determined WACC of
5.56% (post tax, 50
th
percentile) for Chorus’
legacy network
SingaporeNetlink
NBN
Trust
Wholesale
communications
network (fibre
only)
NZ$2.8b14x2.1xNot ratedIn 2017, IMDA-the Singapore regulator -
determined WACCof 7% (pre-tax) under a RAB
framework for the Jan 2018 to Dec 2022 period
Czech
Republic
CETINWholesale
communications
network (fixed+
mobile)
Not listedBBB –Fitch
Baa2 –Moody’s
In 2015, CTU -the Czech regulator -determined
WACC (post tax) of 9.07% for NGA network and
6.39% for legacy network
1. Moody’s Investor Services has noted Chorus’ transition to a regulated utility model could support a higher leverage profile within the Baa2 credit rating.
2. Based on trailing 12 month financials.
3. In 2016, aEuropean Commission report recommended higher WACCs be applied to Next Generation Access networks to reflect different characteristics
from legacy networks, including systematic demand risks, intensive capital leverage and long-term pay-offs.
22
1
3
Source: Financial metrics based on Bloomberg data as at 1 October
INVESTOR ROADSHOW
15 October 201824

15 October 2018
Innovation focus
Pipeline of opportunities identified
infrastructure re-use trialled for IoTdelivery and
moving to commercialisation
school trials proving wi-fipotential to bridge
digital divide
network edge computing: clear global trend
favouring exchange co-location; Wellington and
Christchurch sites under development for Q3 FY19
4K TV trial: clear medium term potential for
broadcasting role; pathway to other opportunities
as streaming accelerates data demands
INVESTOR ROADSHOW
25

15 October 2018
Planning for copper to fibre migration
0
100
200
300
400
500
600
700
800
# nodes
% penetration –pre 2018 areas
Fibre uptake by fibre node area (brownfields
at 30 June 2018), excluding off-net addresses
average UFB uptake of 50% understates
actual penetration given ongoing network
expansion and off-net connections
fibre penetration is >70% across 1,000 nodes
when exclude off-net connections
draft legislation contemplates copper
withdrawal in areas where fibre is available
withdrawal code to be developed in
consultation with industry and Commission
50% uptake across
our UFB area,
including off-net
INVESTOR ROADSHOW
26

Financial performance and
capital management
15 October 2018
INVESTOR ROADSHOW

Income statement
15 October 2018
FY18
$m
FY17
(adjusted)
$m
Operating revenue9901,048
Operating expenses(337)(338)
Earnings before interest, tax,
depreciation and amortisation (EBITDA)
653710
Depreciation and amortisation(387)(379)
Earnings before interest and income tax266331
Net interest expense(144)(147)
Net earnings before income tax122184
Income tax expense(37)(39)
Net earnings for the year85145
FY17 adjusted to show the illustrative impact if NZ
IFRS 9, 15 and 16 had applied
FY19 EBITDA guidance of $625m to
$645m reflects:
expectations of market growth in
broadband, plus continued slowing in
overall line loss
incremental spend (above FY18 levels)
of $10 -$15 million on innovation
activity, regulatory processes, branding
and other transformation-related one-
off costs. Excluding this, we
expect total costs to be broadly
consistent with FY18.
INVESTOR ROADSHOW
28

15 October 2018
FY18
$m
FY17
(adjusted)
$m
Fibre broadband (GPON)198123
Fibre premium (P2P)7879
Copper based voice133163
Copper based broadband421501
Data services copper2732
Field Services7084
Value added network
services
3334
Infrastructure2323
Other79
Total9901,048
FY17 adjusted to show the illustrative impact if NZ IFRS 15 and 16 had
applied
Copper revenues declining as customers migrate to Chorus fibre or
competing fibre/wireless networks
>Decline in copper installation, subdivision and 3
rd
party maintenance revenues
>Revenue growing as fibre uptake increases
>Movement from legacy services to lower price UFB services
Revenue
INVESTOR ROADSHOW
29

15 October 2018
FY18
$m
FY17
(adjusted)
$m
Labour 7369
Provisioning611
Network maintenance8787
Other network costs3427
IT5455
Rents, rates and
property maintenance
2422
Regulatory levies1313
Electricity1514
Consultants510
Insurance33
Other2327
Total337338
>12% reduction in staff from Aug 2017 peak but most impact in capex.
Labour includes $5m of one-off costs
>Provisioning reflects a smaller scope of activity and cessation of FY17 install
support costs
>Proactive maintenance and weather events offset volume reduction and
changed copper/fibre mix
FY17 adjusted to show the illustrative impact if NZ IFRS 15 and 16
had applied
Expenses
>Other costs declined with initiatives around travel and other corporate
expenses
>Increases in network costs reflects increased focus on proactive
maintenance and cost of maintaining network spares
>Reduced following FY17 strategic review
INVESTOR ROADSHOW
30

15 October 2018
FY19 gross capex guidance
>$820m -$860m gross capex reflects:
Fibre $660m-$690m
$280-310m fibre connections & layer 2
$90-110m spend forecast for UFB2/2+ communal
continued greenfieldsand transport (UFB2) spend
~$10m pole programme continues
customer retention mix weighted more to fibre
Copper$90m-$110m
vectoring rollout complete
~$10m pole programme continues
Common: $55m-$70m
▪includes potential innovation spend
FY18FY19 GUIDANCE
FY18 vs FY19 illustrative capex profile
CommonCopperFibre
$810m
$820 -$860m
660-690
90-110
55-70
620
132
58
INVESTOR ROADSHOW
31

15 October 2018
FY19 guidance summary
FY19 guidance FY18 result
UFB1 Cost Per Premises
Passed (CPPP)
$1,500 -$1,600$1,568
UFB2/2+ communal capex
$90m -$110m
(based on estimated starting premises of 45,000 to 55,000 and premises
handed over of 25,000 to 35,000)
$61m
UFB1 Cost Per Premises
Connected
(CPPC)
$1,000 -$1,150
(excluding layer 2 and including standard installations and some non-
standard single dwellings and service desk costs)
$1,037
Fibre connections & layer 2
capex
$280 –$310m (based on mass market 155,000 –175,000 fibre
connections,and 14,000 backbone builds and including service desk costs)
$294m
FY19 Gross capex
$820 –$860m$810m
FY19 EBITDA
$625 –645m $653m
INVESTOR ROADSHOW
32

>FY19 dividend guidance of 23 cps,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
Capital management
FY12*: prorated for the post
demerger period of seven
months
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.
15 October 2018
>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.
INVESTOR ROADSHOW
33

15 October 2018
Debt
Term debt profile
As at
30 June 2018
$m
Borrowings1,922
+ PV of CFH debt
securities (senior)
129
+ Net leases payable238
Sub total2,289
-Cash(50)
Total net debt2,239
Net debt/EBITDA3.43 times
Financial covenants require senior debt ratio to be
no greater than 4.75 times
677
400
785
7070
105
134
16
35
62
75
0
100
200
300
400
500
600
700
800
CFH debt securities available
Face value of CFH debt securities issued
EUR EMTN
NZ Bond
GBP EMTN
>At 30 June, debt of $1,922m comprised:
▪Long term bank facilities $290m undrawn; $60m drawn
▪NZ bond $400m
▪Euro Medium Term Notes $1,462m (NZ$ equivalent at
hedged rates)
NZ
$M
INVESTOR ROADSHOW
34

Appendices
15 October 2018
INVESTOR ROADSHOW

15 October 2018
Appendix A: Pro forma FY17 net earnings
For information purposes only. This appendix provides an approximate translation of FY17 to show the illustrative impact if NZ
IFRS 9, 15 and 16 had applied in FY17.
Income statementFY17
results
$m
NZ IFRS
impact
$m
FY17
(adjusted)
$m
Notes
Operating revenue1,04081,048
Broadbandmodem upgrade costs incurred in FY17,in FY18 these are
now capitalised and amortised in accordance with NZIFRS 15
Operating expenses(388)50(338)
$42m costs incurredin acquiring and retaining customers
(provisioning $32m, Labour $5m and IT $5m). These costs are now
capitalised and amortised in accordance with NZ IFRS 15 and
disclosed as separate items in fibre and copper capex.
$8m rent and rates are now recognised as a right of use asset with
the value capitalised and depreciated over the life of the lease.
EBITDA65258710
Depreciationand
amortisation
(339)(40)(379)
Increase in depreciation and amortisation inline with NZIFRS 15 and
16.
Net interestexpense(154)7(147)
NZ IFRS 9 and 16 impact to account for change in accounting
treatment for ineffectiveness and capitalisation of leases.
Income tax expense(46)7(39)
Net tax impacts associatedwith NZ IFRS changes.
Net earnings for the year 11332145
INVESTOR ROADSHOW
36

▪Rural areas are disproportionately more expensive to maintain than
urban areas
▪Copper costs don’t reduce in proportion to the number of connections –
there is a significant fixed element
▪Fibre share of maintenance will grow, but at a lesser rate than copper
because variable fault rate is lower on fibre (although costlier to fix)
▪In the long run, we think there is around an annual $10m saving from
full copper to fibre migration in Chorus UFB areas
Copper maintenance:
urban (indicative)
Exchange + feeder
cable
Cabinet to street
boundary
In boundary (excludes
home wiring)
Fixed30%70%0%
Variable20%40%40%
15 October 2018
Fibre uptake initially reduces variable copper costs only
% FY18 lines
Chorus UFB
Rural (non-UFB)
LFC UFB
% FY18 reactive
maintenance cost
8
31
36
FY18 reactive maintenance
spend $m
Fibre
Copper -
fixed
Copper -
variable
INVESTOR ROADSHOW
Appendix B: Understanding network maintenance
37

15 October 2018
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Broadband uptake by retailer (all technology)
SparkVodafoneVocus2degreesTrustpowerROM
Source: IDCSource: IDC
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
NZ broadband market –by technology
Chorus xDSLChorus mass market fibreChorus premium fibre
Local fibre companies (UFB)Other fibre networksOther xDSL
Vodafone cableFixed (mobile) wirelessLegacy fixed wireless, satellite
INVESTOR ROADSHOW
Appendix C: Broadband market by retailer + technology
38

0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
30-Jun-1730-Sep-1731-Dec-1731-Mar-1830-Jun-1830-Sep-18
Data services (copper)Fibre premium (P2P)
Fibre broadband (GPON)VDSL
Copper ADSLUnbundled copper (no broadband)
Baseband copper (no broadband)
15 October 2018
30 Sept
2017
31 Dec
2017
31 March
2018
30 June
2018
30 Sept
2018
Unbundled
copper
76,00068,00062,00053,00045,000
Baseband
copper
(no broadband)
302,000290,000279,000268,000255,000
Fibre broadband
(GPON)
328,000362,000394,000433,000479,000
VDSL
(includes naked)
294,000320,000325,000321,000309,000
Copper ADSL
(includes naked)
562,000499,000465,000433,000402,000
Data services
(copper)
7,0007,0006,0006,0005,000
Fibre premium
(P2P)
13,00013,00012,00012,00012,000
Total connections
1,582,0001,559,0001,543,0001,526,0001,507,000
Fibre (GPON)
VDSL
Copper ADSL
Unbundled copper
Baseband copper
39
INVESTOR ROADSHOW
Chorus connections

Appendix D: Chorus mass market products
Regulated
copper pricing
Line only
(monthly)
With broadband
(monthly)
Year 1
(from mid Dec 2015)
$29.75$41.19
Year 2
(from mid Dec 2016)
$30.22$41.44
Year 3
(from mid Dec2017)
$30.70$41.71
Year 4
(from mid Dec 2018)
$31.19$42.02
Year 5
(from mid Dec 2019)
$31.68$42.35
Fibre products
(GPON)
Wholesaleprice
(monthly)
Producttype
Voice only$25.00
UFB contracted products.
FY19pricing applies until end of 2019
with subsequent pricing subject to
regulatory framework.
50/10Mbps
July 2017: $40.50
July 2018: $41.50
July 2019: $42.50
100/20Mbps
July 2017: $43
July2018: $45
Chorus commercial products.Prices
subject to change on notice, but must
be within UFB contracted price cap in
Chorus UFB areas.
200/20MbpsFY17-FY19: $55
1Gbps residentialFY17-FY19:$65
1Gbps businessFY17-FY19:$75
100/100Mbps to
1G/1Gbusiness
FY17-FY19:$175+
UFB contracted product. FY19pricing
applies until end of 2019 with
subsequent pricing subject to regulatory
framework.
15 October 2018
Note:
Copper prices were set by the Commerce Commission in
Dec 2015
Chorus charges the same for high-speed VDSL broadband
as ADSL broadband
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40

15 October 2018
Disclaimer
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 resultsto
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 2018 and NZX and ASX
market releases.
• Includes non-GAAP financial measures including "EBITDA” and “adjusted 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. They shouldnot be
used in substitution for, or isolation of, Chorus' audited consolidated financial statements. 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 this presentation and Chorus’ FY18 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 errorsor
omissions.
• Contains information from third parties Chorus believes reliable. However, no representations or warranties (express or implied) are
made as to the accuracy or completeness of such information.
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