Chorus launches re-setting fixed rate retail bond offer

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

Email: company.secretary@chorus.co.nz





STOCK EXCHANGE ANNOUNCEMENT

14 November 2018


Chorus launches re-setting fixed rate retail bond offer

Chorus announced today that it is offering up to NZ$300,000,000 (with the ability to
accept oversubscriptions at Chorus’ discretion) ten year unsecured, unsubordinated, re-
setting fixed rate bonds (Bonds) to institutional investors and New Zealand retail
investors.
The Bonds will mature on 6 December 2028. The Interest Rate for the Bonds will be fixed
for five years and then re-set for a further period of five years.
The Interest Rate for the initial five year period will be the sum of the Issue Margin plus
the five year Base Rate on the Rate Set Date, but in any case will be no less than the
minimum Interest Rate of 4.35% per annum. The Issue Margin will be set following a
book-build process on 23 November 2018 and will be announced by Chorus via NZX
shortly thereafter, together with the Interest Rate for the first five year period.
The indicative Issue Margin range for the Bonds is 1.80% to 1.90% per annum.
The Interest Rate for the second five year period will be determined as the Issue Margin
plus the Base Rate on the Reset Date (6 December 2023) and that Interest Rate will be
announced by Chorus via the NZX on or shortly after the Reset Date.
Chorus has applied for the Bonds to be quoted on the NZX Debt Market. The Bonds are
expected to be assigned a long-term credit rating of BBB and Baa2 by S&P Global Ratings
and Moody’s, respectively.
The offer will close on 23 November 2018 following the book-build process, with the Bonds
expected to be issued on 6 December 2018.
There is no public pool for the Bonds, which will be reserved for the Joint Lead Managers,
institutional investors and other primary market participants invited to participate in the
book-build.
Unless the context requires otherwise, capitalised terms used in this announcement have
the meaning given to them in the Indicative Terms Sheet.
Full details of the Bond offer are contained in the Indicative Terms Sheet attached.

Joint Lead Managers





0800 269 476 0800 284 017 0800 226 263



0800 367 227 0800 742 737

ENDS



For further information:

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

Brett Jackson
Investor Relations Manager
Phone: +64 4 896 4039
Mobile: +64 (27) 488 7808
Email: Brett.Jackson@chorus.co.nz

---

Indicative
Terms Sheet
14 November 2018
Joint Lead Managers:

Indicative Terms Sheet1
Indicative Terms Sheet
This Indicative Terms Sheet sets out the key
terms of the offer (“Offer”) by Chorus Limited
(“Chorus”) of up to NZ$300,000,000 (with the
ability to accept oversubscriptions at Chorus’
discretion) unsecured, unsubordinated fixed
rate bonds maturing on 6 December 2028,
with the interest rate re-setting on 6 December
2023 (“Bonds”) under its master trust deed
dated 30 March 2016 (as amended from
time to time) (“Trust D e e d”) as modified and
supplemented by the supplemental trust deed
dated 14 November 2018 (together, “Trust
Documents”) entered into between Chorus
and The New Zealand Guardian Trust Company
Limited (“Supervisor”). Unless the context
otherwise requires, capitalised terms used
in this Indicative Terms Sheet have the same
meaning given to them in the Trust Documents.
Important Notice
The offer of debt securities by Chorus is made in reliance
upon the exclusion in clause 19 of schedule 1 of the
Financial Markets Conduct Act 2013 (“FMCA”).
The offer contained in this Indicative Terms Sheet is an offer
of bonds that have identical rights, privileges, limitations and
conditions (except for the interest rate and maturity date) as
Chorus’ bonds maturing on 6 May 2021, which have a fixed
interest rate of 4.12% per annum and are currently quoted
on the NZX Debt Market under the ticker code CNU010
(the “Existing Bonds”).
Accordingly, the Bonds are the same class as the Existing
Bonds for the purposes of the FMCA and the Financial
Markets Conduct Regulations 2014.
Chorus is subject to a disclosure obligation that requires
it to notify certain material information to NZX Limited
(“NZX”) for the purpose of that information being made
available to participants in the market and that information
can be found by visiting www.nzx.com/companies/CNU.
The Existing Bonds are the only debt securities of Chorus
that are currently quoted and in the same class as the Bonds.
Investors should look to the market price of the Existing
Bonds referred to above to find out how the market
assesses the returns and risk premium for those bonds.

Indicative Terms Sheet2
Key terms of the Bonds
IssuerChorus Limited.
DescriptionUnsecured, unsubordinated, re-setting fixed rate bonds (“Bonds”).
StatusThe Bonds are to be issued pursuant to the Trust Documents. The principal amounts of,
and interest on, the Bonds will be unsubordinated, unsecured, obligations of the Issuer
and rank at least equally with all present and future unsecured and unsubordinated
indebtedness of the Issuer (except indebtedness preferred by law and subject to laws
affecting creditors’ rights generally and equitable principles of general application).
Guarantee
The Bonds are guaranteed by the Guarantors under the Trust Deed. The Guarantee
is an unsecured, unsubordinated obligation of each Guarantor. Currently Chorus
New Zealand Limited is the only Guarantor.
Negative Pledge
The Trust Deed contains a negative pledge which provides that neither the Issuer nor
any Guarantor will create or permit to subsist any Security Interest over its assets except
under certain limited exceptions set out in the Trust Deed.
Purpose
The proceeds of the Offer will be used for general corporate purposes.
Credit RatingIssuer Credit
Rating
Expected Issue
Credit Rating
S&P Global RatingsBBB (Stable)BBB
Moody’sBaa2 (Stable)Baa2
A rating is not a recommendation by any rating organisation to buy, sell or hold Bonds.
The above issuer credit ratings are current as at the date of this Indicative Terms Sheet
and any rating may be subject to suspension, revision or withdrawal at any time by the
assigning rating organisation.
Issue Amount
Chorus is offering up to NZ$300,000,000 of Bonds with the ability to accept
oversubscriptions at Chorus’ discretion. The offer is not underwritten.
Opening DateWednesday, 14 November 2018
Closing DateBids due by 12pm, Friday, 23 November 2018
Rate Set DateFriday, 23 November 2018

Indicative Terms Sheet3
Issue Date and
Allotment Date
Thursday, 6 December 2018
Reset DateWednesday, 6 December 2023
Maturity Date
Wednesday, 6 December 2028
Interest RateThe rate of interest payable on the Bonds will be:
• the Initial Interest Rate for the first five year period; and
• the Reset Interest Rate for the second five year period,
subject to any step-up following a Downgrade Event. See “Interest Rate Structure”
and “Interest Rate Step-up” below for further details.
Initial Interest Rate
The initial interest rate (“Initial Interest Rate”) will be the sum of:
• the Issue Margin; and
• the Base Rate on the Rate Set Date,
but in any case will be no less than the minimum interest rate of 4.35% per annum.
The Initial Interest Rate will apply for the first five year period from (and including) the
Issue Date to (but excluding) the Reset Date, and will be announced by Chorus via NZX
on or shortly after the Rate Set Date.
Indicative Issue Margin
The indicative range of the Issue Margin is 1.80% – 1.90% per annum.
Issue MarginThe Issue Margin will be determined by Chorus in consultation with the Joint Lead
Managers following completion of the book-build process and announced via NZX
on or shortly after the Rate Set Date at the same time as the announcement of the
Initial Interest Rate.
Reset Interest Rate
The Interest Rate will be reset on the Reset Date to be the reset interest rate
(“Reset Interest Rate”). The Reset Interest Rate will be the sum of:
• the Issue Margin (as determined on the Rate Set Date); and
• the Base Rate on the Reset Date.
The Reset Interest Rate will apply for the second five year period from (and including)
the Reset Date to (but excluding) the Maturity Date, and will be announced by Chorus
via NZX on or shortly after the Reset Date.
The minimum Interest Rate is only applicable to the Initial Interest Rate and is not
relevant to the calculation of the Reset Interest Rate.

Indicative Terms Sheet4
Base Rate
A five-year mid-market rate for a NZD interest rate swap (adjusted to a quarterly
basis as necessary), determined on:
• the Rate Set Date as calculated by the Arranger in consultation with Chorus; and
• the Reset Date as calculated by the Rate Set Calculation Agent in consultation
with Chorus,
according to market convention, with reference to ICAP New Zealand Limited
(Bloomberg: ICNI > NZD Interest Rate Swaps) (or its successor page) rounded
to two decimal places, if necessary, with 0.005 being rounded up.
Rate Set
Calculation Agent
A third party appointed by Chorus to calculate the Base Rate on the Reset Date,
which may include the Arranger or a Joint Lead Manager.
Interest Rate
Structure
The Bonds have a 10 year term. However the Interest Rate will be set for two separate
periods of five years each, with the first fixed rate period being from (and including) the
Issue Date to (but excluding) the Reset Date, the second fixed rate period being from
(and including) the Reset Date to (but excluding) the Maturity Date.
The Interest Rate for the second period referred to above will be determined on the
Reset Date, and that rate could be higher, the same or lower than the Initial Interest Rate
calculated at the Rate Set Date. The minimum Interest Rate will only apply for the first five
year period from the Issue Date to the Reset Date.
Potential investors should consult their financial adviser about this risk before investing
in the Bonds.
No Early
Redemption
There will be no Issuer call or put for holders of Bonds (“Holders”) at the Reset Date.
Holders have no right to require Chorus to redeem their Bonds prior to the Maturity Date,
except if an Event of Default occurs.
Interest Payment
Dates and Interest
Periods
Interest will be payable quarterly in arrear in equal amounts on 6 March, 6 June,
6 September and 6 December of each year up to and including the Maturity Date.
The first Interest Payment Date will be 6 March 2019.
If an Interest Payment Date is not a Business Day, the due date for the payment to
be made on that date will be the next following Business Day and no adjustment
will be made to the amount payable as a result of the delay in payment.
Each Interest Period in respect of an Interest Payment Date is the period from, and
including, the preceding Interest Payment Date (or the Issue Date) to, but excluding,
that Interest Payment Date.
10 Year Term
Issue Date
6 Dec 2018
Interest Rate higher of:
Minimum Interest Rate and
Issue Margin + Base Rate
(Rate Set Date)
Interest Rate:
Issue Margin (Rate Set Date)
+ Base Rate (Reset Date)
Reset Date
6 Dec 2023
Maturity Date
6 Dec 2028

Indicative Terms Sheet5
Interest Rate
Step-up
If a Downgrade Event exists on the first day of an Interest Period, the interest payable on
the Interest Payment Date applicable to that Interest Period will be the aggregate of the
applicable Interest Rate and the Step-up Margin.
Downgrade Event means:
(a) The credit rating of the Bonds is BB+ or below on S&P Global Ratings’ credit rating
scale (or the equivalent of another internationally recognised rating agency); or
(b) If the Bonds are not rated by at least one internationally recognised rating
agency, either:
(i) the long term corporate credit rating of Chorus is BB+ or below from S&P
(or the equivalent from another internationally recognised rating agency); or
(ii) Chorus does not hold at least one long term corporate credit rating.
Step-up Margin means 1.00 per cent per annum.
Brokerage
Chorus will pay brokerage of 0.50% of the aggregate principal amount of the amount
issued plus 0.50% on firm allocations. Such amounts will be paid to the Arranger who
will distribute as appropriate to primary market participants and approved financial
intermediaries.
Record Date
5.00pm on the tenth calendar day before the due date for that payment or, if that day
is not a Business Day, the preceding Business Day.
Business DaysA day (other than a Saturday or Sunday) on which registered banks are generally open for
business in Wellington and Auckland except that in the context of the NZX Listing Rules
it means a day on which the NZX Debt Market is open for trading.
Issue PriceNZ$1.00 per Bond.
Minimum
Application
The minimum application is NZ$5,000, with multiples of NZ$1,000 thereafter.
Approved
Issuer Levy
The Issuer proposes to register the Bonds for approved issuer levy (“AIL”) and, where it is
eligible to do so in respect of interest paid to a non-resident Holder that is subject to the
non-resident withholding tax rules (and unless otherwise elected by the Holder) to pay AIL
in lieu of deducting non-resident withholding tax. If the Bonds qualify for the 0% rate of
AIL, the Issuer intends to apply the 0% rate, otherwise it will apply AIL at the applicable rate.
The amount of any AIL paid will be deducted from payments to you.
Registrar and
Paying Agent
Computershare Investor Services Limited.
The Bonds will be accepted for settlement within the NZClear system.

Indicative Terms Sheet6
How to apply
All of the Bonds, including oversubscriptions, are reserved for clients of the Joint
Lead Managers, institutional investors and other primary market participants invited to
participate in the book-build. There will be no public pool for the offer. Accordingly, retail
investors should contact a Joint Lead Manager, their financial adviser or any primary
market participant for details on how they may acquire Bonds. You can find a primary
market participant by visiting www.nzx.com/investing/find-a-participant.
In respect of oversubscriptions or generally, any allotment of Bonds will be at Chorus’
discretion, in consultation with the Joint Lead Managers. Chorus reserves the right to
refuse all or any part of an application without giving any reason.
Each investor’s financial adviser will be able to advise them as to what arrangements will
need to be put in place for investors to trade the Bonds including obtaining a common
shareholder number (CSN), an authorisation code (FIN) and opening an account with
a primary market participant as well as the costs and timeframes for putting such
arrangements in place.
ISIN
NZCNUDT003C6
Transfe rsHolders are entitled to sell or transfer their Bonds at any time subject to the terms of the
Trust Documents, the Selling Restrictions set out below and applicable securities laws and
regulations. Chorus may decline to register a transfer of Bonds for the reasons set out in
the Trust Documents.
The minimum amount of Bonds a Holder can transfer is NZ$1,000, and integral multiples
of NZ$1,000 thereafter. No transfer of Bonds or any part of a Holder’s interest in a Bond
will be registered if the transfer would result in the transferor or the transferee holding or
continuing to hold Bonds with an aggregate principal amount of less than the minimum
holding of NZ$5,000 (other than zero).
NZX has approved these transfer restrictions in accordance with NZX Debt Market Listing
Rule 11.1.5 on the condition that Chorus will only allot the Bonds in multiples of NZ$1,000.
NZX Quotation
Chorus will take any necessary steps to ensure that the Bonds are, immediately after issue,
quoted on the NZX Debt Market. Application has been made to NZX for permission to
quote the Bonds on the NZX Debt Market and all the requirements of NZX relating thereto
that can be complied with on or before the distribution of this Indicative Terms Sheet have
been duly complied with. However, NZX accepts no responsibility for any statement in this
Indicative Terms Sheet. NZX is a licensed market operator and the NZX Debt Market is a
licensed market under the FMCA.
Quotation Date
Expected to be 7 December 2018.
NZX Debt Market
Ticker Code
CNU020

Indicative Terms Sheet7
Selling restrictions
This is an offer of Bonds to institutional investors and members of the public who are
resident in New Zealand and certain overseas institutional investors only.
Chorus has not taken and will not take any action which would permit a public offering
of Bonds, or possession or distribution of any offering material in respect of the Bonds,
in any country or jurisdiction where action for that purpose is required (other than New
Zealand).
The Bonds may only be offered for sale or sold in a jurisdiction other than New Zealand in
compliance with all applicable laws and regulations in any jurisdiction in which they are
offered, sold or delivered.
The selling restrictions contained in the schedule apply. By purchasing any Bonds, each
Holder agrees to indemnify the Issuer, the Arranger, the Joint Lead Managers, the
Supervisor and each of their respective directors, officers and employees (as applicable)
for any loss, cost, liability or expenses sustained or incurred by the Issuer, the Arranger,
the Joint Lead Managers and the Supervisor, as the case may be, as a result of the breach
by that Holder of the selling restrictions set out in the schedule.
Singapore Securities
and Futures Act
Product Classification
Solely for the purposes of its obligations pursuant to sections 309B(1)(a) and
309B(1)(c) of the Securities and Futures Act (Chapter 289 of Singapore) (the “SFA”),
Chorus has determined, and hereby notifies all relevant persons (as defined in Section
309A of the SFA) that the Bonds are “prescribed capital markets products” (as defined in
the Securities and Futures (Capital Markets Products) Regulations 2018) and Excluded
Investment Products (as defined in MAS Notice SFA 04-N12: Notice on the Sale of
Investment Products and MAS Notice FAA-N16: Notice on Recommendations on
Investment Products).
Governing Law
New Zealand.
NZX WaiversNZX has granted Chorus a waiver from NZX Debt Market Listing Rule 7.11.1 to allow
allotment of the Bonds to occur within nine business days after the Closing Date.
The dates set out in this Indicative Terms
Sheet are indicative only and are subject to
change. Chorus has the right in its absolute
discretion and without notice to close the
Offer early, to accept late applications, to
extend the Closing Date or to choose not
to proceed with the Offer. If the Closing
Date is extended, subsequent dates may
be extended accordingly.
Other Information
Copies of the Trust Documents are available at
Chorus’ website at www.chorus.co.nz/bonds
Any internet site addresses provided in this Indicative
Terms Sheet are for reference only and, except as expressly
stated otherwise, the content of any such internet site is not
incorporated by reference into, and does not form part of,
this Indicative Terms Sheet.
Investors should seek qualified independent financial and
taxation advice before deciding to invest. In particular, you
should consult your tax adviser in relation to your specific
circumstances. Investors will also be personally responsible
for ensuring compliance with relevant laws and regulations
applicable to them (including any required registrations).
For further information regarding Chorus, visit
www.nzx.com/companies/CNU.

Indicative Terms Sheet8
Issuer
Chorus Limited
Level 10, 1 Willis Street
Wellington 6011
PO Box 632
Wellington 6140
Registrar
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622
Private Bag 92119
Auckland 1142
Supervisor
The New Zealand Guardian Trust Company Limited
Level 2, 99 Customhouse Quay
Wellington 6011
Legal advisers to Chorus
Chapman Tripp
Level 14, 10 Customhouse Quay
Wellington 6011
Arranger, Organising Participant
and Joint Lead Manager
ANZ Bank New Zealand Limited
Level 10, ANZ Centre
171 Featherston Street
Wellington 6011
0800 269 476
Joint Lead Managers:
Bank of New Zealand
Level 6, Deloitte Centre
80 Queen Street
Auckland 1010
0800 284 017
Deutsche Craigs Limited
Level 36, Vero Centre
48 Shortland Street
Auckland 1010
0800 226 263
Forsyth Barr Limited
Level 9, Forsyth Barr House
The Octagon
Dunedin 9016
0800 367 227
Hobson Wealth Partners Limited
Level 17, Lumley Centre
88 Shortland Street
Auckland 1010
0800 742 737
Contact Details

Indicative Terms Sheet9
Set out below are specific selling restrictions that apply
to an offer of the Bonds in the European Economic Area,
Switzerland, the United Kingdom, Australia, Hong Kong,
Japan and Singapore.
These selling restrictions do not apply to an offer of the
Bonds in New Zealand.
These selling restrictions may be modified by Chorus and
the Joint Lead Managers, including following a change in
a relevant law, regulation or directive. Persons into whose
hands the Indicative Terms Sheet comes are, and each
Holder is, required by Chorus and the Joint Lead Managers
to comply with all applicable laws and regulations in each
country or jurisdiction in or from which they purchase,
offer, sell or deliver Bonds or have in their possession
or distribute such offering material, in all cases at their
own expense.
No person may purchase, offer, sell, distribute or deliver
Bonds, or have in their possession, publish, deliver or
distribute to any person, any offering material or any
documents in connection with the Bonds, in New Zealand
and the jurisdictions set out below other than in compliance
with all applicable laws and regulations and the selling
restrictions set out below relating to those jurisdictions.
A. Relevant Member States of the
European Economic Area
In relation to each Member State of the European Economic
Area which has implemented the Prospectus Directive
(each, a “Relevant Member State”), with effect from and
including the date on which the Prospectus Directive is
implemented in that Relevant Member State (the “Relevant
Implementation Date”), no Bonds have been offered and
no Bonds will be offered that are the subject of the offering
contemplated by this Terms Sheet in relation thereto to the
public in that Relevant Member State except that an offer of
Bonds to the public in the Relevant Member State may be
made with effect from the Relevant Implementation Date:
• to any legal entity which is a qualified investor as defined
in the Prospectus Directive;
• to fewer than 150 natural or legal persons (other than
qualified investors as defined in the Prospectus Directive)
subject to obtaining the prior consent of the relevant
Joint Lead Manager; or
• in any other circumstances falling within Article 3(2)
of the Prospectus Directive,
provided that no such offer of the Bonds shall require the
Issuer or any Joint Lead Manager to publish a prospectus
pursuant to Article 3 of the Prospectus Directive or
supplement a prospectus pursuant to Article 16 of
the Prospectus Directive.
For the purposes of this provision, the expression an
“offer of the Bonds to the public” in relation to any Bonds
in any Relevant Member State means the communication
in any form and by any means of sufficient information
on the terms of the offer and the Bonds to be offered
so as to enable an investor to decide to purchase or
subscribe for the Bonds, as the same may be varied in
that Relevant Member State by any measure implementing
the Prospectus Directive in that Relevant Member
State, and the expression “Prospectus Directive” means
Directive 2003/71/EC (and amendments thereto, including
by Directive 2010/73/EU), and includes any relevant
implementing measure in the Relevant Member State.
Schedule – selling restrictions

Indicative Terms Sheet10
B. Switzerland
This document is not intended to constitute an offer or
solicitation to purchase or invest in the Bonds described
herein. The Bonds may not be publicly offered, sold or
advertised, directly or indirectly, in, into or from Switzerland
and will not be listed on the SIX Swiss Exchange or on any
other exchange or regulated trading facility in Switzerland.
Neither this document nor any other offering or marketing
material relating to the Bonds constitutes a prospectus
as such term is understood pursuant to article 652a or
article 1156 of the Swiss Code of Obligations or a listing
prospectus within the meaning of the listing rules of the
SIX Swiss Exchange or any other regulated trading facility
in Switzerland and neither this document nor any other
offering or marketing material relating to the Bonds may
be publicly distributed or otherwise made publicly available
in Switzerland.
C. United Kingdom
No communication, invitation or inducement to engage
in investment activity (within the meaning of section 21
of the Financial Services and Markets Act 2000 (“FSMA”))
has been or may be made or caused to be made or will be
made in connection with the issue or sale of the Bonds in
circumstances in which section 21(1) of the FSMA applies
to the Issuer or the Guarantor(s).
All applicable provisions of the FSMA with respect to
anything done in relation to the Bonds in, from or
otherwise involving the United Kingdom must be
complied with.
D. Australia
No prospectus or other disclosure document (as defined in
the Corporations Act 2001) in relation to the Bonds has
been or will be lodged with or registered by the Australian
Securities and Investments Commission or the ASX Limited.
No person may:
• make or invite (directly or indirectly) an offer of the
Bonds for issue, sale or purchase in, to or from Australia
(including an offer or invitation which is received by
a person in Australia); and
• distribute or publish, any draft, preliminary or final form
offering circular or memorandum, advertisement or
other offering material relating to the Bonds in Australia,
unless:
• the offer or invitation is made to sophisticated or
professional investors as respectively defined within
sections 708(8) or 708(11) of the Corporations Act;
• the offer or invitation is not made to a person who is a
“retail client” within the meaning of section 761G of the
Corporations Act 2001; and
• such action complies with all applicable laws and
regulations in Australia.
E. Hong Kong
No Bonds have been offered or sold or will be offered or
sold in Hong Kong, by means of any document other than
(a) to “professional investors” as defined in the Securities
and Futures Ordinance (Cap. 571) of Hong Kong (the
“SFO”) and any rules made under the SFO; or (b) in other
circumstances which do not result in the document being
a “prospectus” as defined in the Companies (Winding Up
and Miscellaneous Provisions) Ordinance (Cap.32) of Hong
Kong (the “C(WUMP)O”) or which do not constitute an offer
to the public within the meaning of the C(WUMP)O.
No advertisement, invitation or document relating to the
Bonds may be issued or in the possession of any person or
will be issued or be in the possession of any person in each
case for the purposes of issue, whether in Hong Kong or
elsewhere, which is directed at, or the contents of which
are likely to be accessed or read by, the public of Hong
Kong (except if permitted to do so under the securities laws
of Hong Kong) other than with respect to Bonds which are
or are intended to be disposed of only to persons outside
Hong Kong or only to “professional investors” as defined in
the SFO and any rules made under the SFO.

Indicative Terms Sheet11
F. Japan
The Bonds have not been and will not be registered in
Japan pursuant to Article 4, Paragraph 1 of the Financial
Instruments and Exchange Act of Japan (Act No. 25
of 1948, as amended, the “FIEA”) in reliance upon the
exemption from the registration requirements since the
offering constitutes the small number private placement
as provided for in “ha” of Article 2, Paragraph 3, Item 2 of
the FIEA. A Japanese Person who transfers the Bonds shall
not transfer or resell the Bonds except where the transferor
transfers or resells all the Bonds en bloc to one transferee.
For the purposes of this paragraph, “Japanese Person”
shall mean any person resident in Japan, including any
corporation or other entity organised under the laws
of Japan.
G. Singapore
This Terms Sheet has not been and will not be registered
as a prospectus with the Monetary Authority of Singapore.
Accordingly, the Bonds may not be offered or sold or made
the subject of an invitation for subscription or purchase,
and neither this Terms Sheet nor any other document or
material may be circulated or distributed in connection with
the offer or sale, or invitation for subscription or purchase,
of the Bonds, whether directly or indirectly, to any person
in Singapore other than (a) to an institutional investor (as
defined in Section 4A of the SFA) pursuant to Section 274
of the SFA, (b) to a relevant person (as defined in Section
275(2) of the SFA) pursuant to Section 275(1) of the SFA, or
any person pursuant to Section 275(1A) of the SFA, and in
accordance with the conditions specified in Section 275
of the SFA or (c) otherwise pursuant to, and in accordance
with the conditions of, any other applicable provision of the
SFA .
Where the Bonds are subscribed or purchased under
Section 275 of the SFA by a relevant person which is:
a) a corporation (which is not an accredited investor (as
defined in Section 4A of the SFA)) the sole business of
which is to hold investments and the entire share capital
of which is owned by one or more individuals, each of
whom is an accredited investor; or
b) a trust (where the trustee is not an accredited investor)
whose sole purpose is to hold investments and each
beneficiary of the trust is an individual who is an
accredited investor,
securities (as defined in the SFA) of that corporation or the
beneficiaries’ rights and interest (howsoever described) in
that trust shall not be transferred within six months after that
corporation or that trust has acquired the Bonds pursuant
to an offer made under Section 275 of the SFA except:
(1) to an institutional investor or to a relevant person
defined in Section 275(2) of the SFA, or to any person
arising from an offer referred to in Section 275(1A)
or Section 276(4)(i)(B) of the SFA;
(2) where no consideration is or will be given for
the transfer;
(3) where the transfer is by operation of law; or
(4) as specified in Section 276(7) of the SFA.

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14 November 2018
JOINT LEAD MANAGERS
RETAIL BOND
PRESENTATION

14 November 2018
BOND OFFER
Disclaimer
This presentation has been prepared by Chorus Limited (Chorusor the Issuer) in relation to the offer of bonds described in this presentation
(Bonds). The offer of the Bonds is made in reliance upon the exclusion in Clause 19 of schedule 1 of the Financial Markets ConductAct 2013
(FMCA). The Bonds have identical rights, privileges, limitations and conditions (except for the interest rate and maturity date) as Chorus’ bonds
maturing on 6 May 2021, which have a fixed interest rate of 4.12% per annum and are currently quoted on the NZX Debt Market under the ticker
code CNU010 (the Existing Bonds).
Chorus is subject to a disclosure obligation that requires it to notify certain material information to NZX Limited (NZX) for the purpose of that
information being made available to participants in the market and that information can be found by visiting www.nzx.com/companies/CNU. The
Existing Bonds are the only debt securities of Chorus that are currently quoted in the same class as the Bonds. Investors should look to the
market price of the Existing Bonds to find out how the market assesses the returns and risk premium for those bonds.
The information in this presentation is of general nature and does not constitute financial product advice, investment adviceorany
recommendation by the Issuer, the Supervisor, the Arranger, the Joint Lead Managers or any of their respective directors, officers, employees,
affiliates, agents or advisers to subscribe for, or purchase, any of the Bonds. Nothing in this presentation constitutes legal,financial, tax or other
advice.
The information in this presentation does not take into account the particular investment objectives, financial situation, tax position or needs of
any person. You should make your own assessment of an investment in the Issuer and should not rely on this presentation. Inall cases, you
should conduct your own research on the Issuer and analysis of any offer, the financial condition, assets and liabilities, financial position and
performance, profits and losses, prospects and business affairs of the Issuer, and the contents of this presentation.
None of the Arranger, the Joint Lead Managers or Supervisor or any of their respective directors, officers, employees and agents: (a) accept any
responsibility or liability whatsoever for any loss arising from this presentation or its contents or otherwise arising in connection with the offer of
Bonds; (b) have authorised or caused the issue of, or made any statement in, any part of this presentation; and (c) make any representation,
recommendation or warranty, expressed or implied regarding the origin, validity, accuracy, adequacy, reasonableness or completeness of, or any
errors or omissions in, any information, statement or opinion contained in this presentation and accept no liability (except to the extent such
liability is found by a court to arise under the Financial Markets Conduct Act 2013 or cannot be disclaimed as a matter of law).
The distribution of this presentation, and the offer or sale of the Bonds, may be restricted by law in certain jurisdictions.Persons who receive this
presentation outside New Zealand must inform themselves about and observe all such restrictions. Nothing in this presentations is to be
construed as authorising its distribution, or the offer or sale of the Bonds, in any jurisdiction other than New Zealand and theIssuer accepts no
liability in that regard. The Bonds may not be offered or sold directly or indirectly, and neither this presentation nor anyother offering material
may be distributed or published, in any jurisdiction except under circumstances that will result in compliance with any applicable law or regulation.
Application has been made to NZX for permission to quote the Bonds on the NZX Debt Market and all the requirements of NZX relating thereto
that can be complied with on or before the distribution of the Terms Sheet have been duly complied with. However, NZX accepts no responsibility
for any statement in this document. NZX is a licensed market operator, and the NZX Debt Market is a licensed market under the FMCA.
2

14 November 2018
BOND OFFER
Disclaimer (contd.)
This presentation:
•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 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. Chorus monitors EBITDA as a key
performance indicator and believes it assists investors in assessing the performance of the core operations of Chorus’ 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.
3

Contents
>Offer highlights5
>Introducing Chorus6-11
>NZ broadband market12-17
>Shaping our future: FY20 objective and FY19 focus18-23
>Financial performance and capital management24-28
>Bond terms + key dates29-33
Appendices
A: Pro forma FY17 net earnings35
B: Connection and market trends36
C: Market structure37
14 November 2018
BOND OFFER
4

Offer highlights
Bond issue objectives
•General corporate purposes
•Further diversify funding sources –NZ$ inaugural issue $400m May 2016, EUR 500m October 2016
•Increase Chorus’ debt maturity profile –current weighted average debt maturity 3.1 years
14 November 2018
BOND OFFER
IssuerChorus Limited
InstrumentUnsecured, unsubordinated, re-setting fixed rate bonds
VolumeUp to NZ$300 million, with oversubscriptions at Chorus’ discretion
Maturity6 December2028 –10 year bond. Interest rate reset after 5 years
Joint Lead ManagersANZ, BNZ, Deutsche Craigs, Forsyth Barr, Hobson Wealth
5

Introducing Chorus
New Zealand’s largest fixed line communications infrastructure business
14 November 2018
BOND OFFER

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$2.1 billion market capitalisation (at 2 November 2018)
S&P “BBB” stable; Moody’s “Baa2” stable
>A nationwide copper and growing fibre 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
14 November 2018
BOND OFFER
7

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 fibre in CBD areas
connects multiplecell sites
14 November 2018
BOND OFFER
8

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 the overall UFB rollout
14 November 2018
BOND OFFER
9

Surging fibre demand
>50% UFB uptake at 30 Sept 2018 (30 June 2018: 45%)
472,000 connections
950,000customers able to connect
714,000 premises passed
14 November 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 greenfields premises for UFB1
BOND OFFER
10

~120,000 brownfields premises to be passed across UFB1 and UFB2
expect to claim another ~18k UFB1 greenfields premises already passed in prior years
14 November 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
BOND OFFER
11

NZ broadband market
14 November 2018
BOND OFFER

14 November 2018
The NZ fixed line market
BOND OFFER
13

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 fibre or VDSL
Premium business connections: 17,000
Q1 FY19: 1,507,000 connections
14 November 2018
BOND OFFER
No. of
connections
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
14 November 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
BOND OFFER
15

14 November 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
BOND OFFER
16

14 November 2018
Live sports to drive streaming uptake
www.chorus.co.nz/streambig
BOND OFFER
17

Shaping our future
14 November 2018
BOND OFFER

14 November 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
implementation of utility style regulatory framework
copper>fibre migration
refining our product portfolio
review of service company model
evolving company culture
the rise of wholesale only networks
BOND OFFER
19

14 November 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
Other LFC UFB1 rollouts complete
wireless customers returning as fibre rollout expands,
data demands grow
Wellington rollout entering significant off-net Hybrid Fibre-
coaxial suburbs
leveraging our vectoring VDSL rollout in Local Fibre
Company and rural areas
MBIE National Construction Pipeline Report forecasts 39% growth in consents
BOND OFFER
20

14 November 2018
Innovation focus
Pipeline of opportunities identified
infrastructure re-use trialled for IoTdelivery and
moving to commercialisation
school trials proving wi-fi potential 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
BOND OFFER
21

14 November 2018
Transition to a regulated utility framework
>Legislation passed to implement a utility-style building block methodology, similar to the New Zealand electricity sector
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
BOND OFFER
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
22

14 November 2018
Regulated Asset Base implementation
›Commerce Commission will determine the starting value for 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
Building block
cost stack
BOND OFFER
23

Financial performance and
capital management
14 November 2018
BOND OFFER

Income statement
14 November 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 fixed 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
BOND OFFER
25

14 November 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 greenfields and 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
BOND OFFER
26

>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.
14 November 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.
BOND OFFER
27

14 November 2018
Debt Profile
As at
30 June 2018
$m
Borrowings1,922
+ PV of CFH debt
securities (senior)
129
+ Net leases payable238
Sub total2,289
Cash(50)
Total net debt2,239
Net debt/EBITDA3.43 times
Financial covenants require senior debt/EBITDA ratio
to be no greater than 4.75 times
S&P rating down driver debt/EBITDA greater than 4x
for a sustained period
BOND OFFER
300
28
--
300
350
677
86
105
167
209
400
785
-
100
200
300
400
500
600
700
800
900
1,000
20192020202120222023202420252026202720282029203020332036
(NZ$M)
Proposed NZD BondBank FacilityGBP EMTNCIP Debt SecuritiesNZD BondEUR EMTN

Issuer
Chorus Limited
Description
Unsecured, unsubordinated, re-setting fixed rate bonds. The Trust Deed contains a negative pledge which
ensures no security interest can be given, except in limited circumstances (refer to the Trust Deed for
further detail)
Rating
Rating Agency
Issuer Credit Rating
Expected Issue Credit Rating
S&P Global Ratings
BBB (Stable)BBB
Moody’s
Baa2 (Stable)Baa2
Volume
Up to NZ$300 million, oversubscriptions at Chorus’ discretion
Maturity
10 years (6 December 2028)
Two fixed interest rate periods
Initial 5 Year Period (Initial Interest Rate)
Applies from the Issue Date to the Reset Date
Reset 5 Year Period (Reset Interest Rate)
Applies from the Reset Date to the Maturity Date
Indicative issue margin and minimum
Interest Rate
To be announced via the NZX on the Opening Date. The minimum Interest Rate applies to the Initial 5 year
period only
Base rate
5 year swap rate (adjusted to quarterly basis)
Interest Rate Step-Up
If a Downgrade Event exists on the first day of an Interest Period, the interest payable on the Interest
Payment Date will be the applicable Interest Rate plus the Step-up Margin.
Downgrade Event means:
•The credit rating of the bonds is BB+ or below on S&P’s credit rating scale (or the equivalent)
•Chorus does not hold at least one long term corporate credit rating
•Step-up Margin is 1.00 per cent per annum
14 November 2018
BOND OFFER
Key Bond Terms
29

14 November 2018
BOND OFFER
5 + 5 bond issue structure
The issue has a 10 year term –the Issue Margin will reflect a 10 year risk premium
The minimum Interest Rate only applies for the first 5 year period
Investors are not exposed to a fixed interest rate for the full 10 year term
5 year period –from and including the Issue Date to, but excluding, the Reset Date
5 year period –from and including the Reset Date to, but excluding, the Maturity Date
The Issue Margin will be fixed over the full 10 year term of the bond
30

14 November 2018
BOND OFFER
Interest rate risk
The Issue Margin will remain unchanged (following the
Bookbuild) for the term of the bond
The 5 year swap rate is used to determine the Initial
Interest Rate and Reset Interest Rate provided that the
Initial Interest Rate will be no less than the minimum
Interest Rate
The interest rate for the period from the Reset Date (6
December 2023) to the Maturity Date (6 December
2028) will be unknown until the Reset Date. Investors
should consider this risk as part of their initial
investment decision
The 5 year swap rate on the Reset Date could (i) go up
(ii) remain the same or (iii) go down, relative to the 5
year swap rate used to determine the Initial Interest
Rate
The minimum Interest Rate applies to the Initial
Interest Rate only
* The past is not an indicator of the future
31
5 Year NZ$ Interest Rate Swap Graph

Other Information
Interest paymentsQuarterly in arrear on 6 March,6 June, 6 September and
6 December
ListingExpected to be listed on the NZX Debt Market (ticker
code CNU020)
BrokerageBrokerage 0.50%,firm fee 0.50%
DenominationsThe minimum application is $5,000, with multiples of
$1,000 thereafter
14 November 2018
BOND OFFER
Other information and key dates
Key Dates
Offer opensWednesday,14 November 2018
Offer closesBids due by 12pm, Friday, 23 November 2018
Rate Set Date (Initial Interest Rate)Friday, 23 November 2018
Issue Date and Allotment DateThursday, 6 December2018
Expected Quotation DateFriday,7 December 2018
Reset Date (Reset Interest rate)Wednesday, 6 December 2023
Maturity DateWednesday, 6 December 2028
32

New Zealand’s largest fixed line communications company
Growing demand for fibre broadband and population/premises growth
Building and operating 75% of NZ’s planned fibre to the premises footprint
Fibre partnership with NZ Government: pre-committed long-term funding
Regulated utility framework expected to underpin financial profile from 2020
Strong operating cash flows and financial performance
Financial flexibility via $350m bank facility (7 bank syndicate), multi-currency EMTN and
NZ dollar retail bond programmes
Proven commitment to maintaining a BBB credit rating (S&P or equivalent)
14 November 2018
BOND OFFER
Key Credit Highlights
33

Appendices
14 November 2018
BOND OFFER

14 November 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
BOND OFFER
35

14 November 2018
Appendix B: 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.
BOND OFFER
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
36

14 November 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
BOND OFFER
Appendix C: NZ Broadband market by retailer + technology
37