Spark NZ Shareholder Newsletter

Women in Governance award win
In June, Spark’s Board Chair Justine Smyth was named winner of the Inspiring Governance Leader category
at the annual Women in Governance Awards.
The Awards are an initiative of Governance New Zealand, and look to recognise and celebrate innovation,
excellence, creativity and commitment to diversity by both organisations and individuals.
The Inspiring Governance Leader Award is the supreme award for the evening – presented to “a woman
who is truly an inspiration and role model for all women”.
Justine’s win is a fantastic acknowledgement of the work that she has done – both publicly and behind the
scenes – to promote diversity and inclusivity on New Zealand boards and in the organisations she represents.
Justine has also been nominated as a finalist in the Board and Management category for the 2019 Women of
Influence Awards. The winners will be announced on October 24th at the Awards Dinner at SKYCITY in Auckland.
Dear Shareholder
Having stepped into the CEO role
following Simon’s departure at the end
of June, I’m excited to lead Spark into a
new era.
In August, I was pleased to announce
to the market that Spark had delivered
earnings growth, stronger operating
margins and market share gains in its
financial results for the year ended
30 June 2019. These results show we
are on track to deliver on key financial aspirations communicated in
June 2017 as part of our three-year strategy.
In a year in which we implemented and embedded massive change with
the move to Agile ways of working, we’re pleased to have delivered financial
results that are in line with expectations. Net earnings were $409 million, up
12.1% on a reported basis, or 2.2% when the prior year result is adjusted
for implementation costs incurred in support of our Quantum business
improvement programme. This was despite operating revenues and other
gains being flat year-on-year, as growth markets – mobile, broadband, cloud
and security – were offset by expected declines in our legacy voice and
managed data and networks products.
Earnings before finance income and expense, income tax, depreciation,
amortisation and net investment income (EBITDAI) grew by 11.1% to
$1,090 million on a reported basis (or 5.8% when FY18 is adjusted for
Quantum implementation costs) – towards the top end of our guidance
range. An important driver of improved earnings was our continued focus
on cost, resulting in lower direct product costs and labour expenses.
This year, we continued to deliver on the key planks of our strategy,
which has seen us grow our business in the highly competitive cloud
services and mobile categories, hold our broadband position, enter new
markets like sports streaming, lead on cost management and continue to
transform our company culture.
Spark significantly outperformed our mobile market competitors, securing
more than 60% of total market growth in mobile service revenue and
mobile connections.
For the year ahead, we have some clear strategies and ambitious goals that
underpin our targets: We will be focusing on building greater customer
intimacy to better serve customer needs; creating a wireless future
for New Zealand and leading the transition to 5G; creating New Zealand’s
premier sports streaming experience with Spark Sport; continuing to
grow in key markets – mobile, cloud, security and data; maturing our
Agile ways-of-working; continuing to deliver best cost; and helping to
make a positive contribution to New Zealand by leading on sustainability.
Executing these priorities well will continue to be an important part of
our success.
I’m excited about the opportunities ahead and I’m committed to leading
Spark to bring the future faster to New Zealand. In doing so, I want to
continue building an organisation that is growing, thriving and delivering
value for our customers, our people and our investors.
Jolie Hodson
Chief Executive
Justine Smyth
UPDATE
SHAREHOLDER
October 2019

23
Spark Sport
Spark Sport is revolutionising how New Zealanders watch their
favourite sporting events. With the Rugby World Cup currently
underway, our service is encouraging New Zealanders to adopt
streaming for sports viewing in the same way that many have already
adopted streaming for entertainment options such as Lightbox,
Netflix and TVNZ OnDemand.
Since we launched in mid-March, Spark Sport has streamed more
than 1,200 events and 15,000 hours of live and on demand content,
including rugby, football, tennis, motorsports, basketball, mixed martial
arts, racing, boxing, hockey, e-sports and athletics.
In the lead up to the Rugby World Cup, our key priority was to
encourage customers to get ‘streaming ready’. Our early bird pricing
strategy and extensive media and marketing campaign were designed
to encourage New Zealanders to get themselves ready to watch way
before the first match.
The Spark Sport app is available across a range of different devices
and media players, which gives viewers plenty of choice about when
and where they want to watch, be it on the go or at home on their
big screens.
The sports included with the Spark Sport monthly subscription also
continue to grow, with a range of exciting new events being added to
the platform.
In November, Spark Sport will play host to the Emirates Australian Open
2019 golf tournament. Golf fans will be able to watch all the action live
or on demand within the price of their Spark Sport subscription.
Leadership Squad changes
In April we announced that Grant McBeath would become our Customer
Director. Grant stepped into the role on 1 July and replaced Jolie Hodson
who became Spark’s Chief Executive from that date.
Grant has a strong track record of building high performing teams and
delivering for customers – not only at Spark, but also in his time in global
executive roles in companies like Nokia. It is fantastic to have a high-
quality internal candidate to step into the role of Customer Director. The
role requires a deep understanding of both the competitive market Spark
operates in and the evolving needs of our customers. Grant has previously
acted on Spark’s Leadership Squad over an extended period of time;
demonstrating his ability to shape and execute strategy at this level.
In August we announced that Heather Polglase would become Group
Human Resources Director on 1 September 2019. Heather succeeded
Joe McCollum, who stepped down after seven years in the HR role.
Heather joined Spark in 2013 and has since led a number of important
HR initiatives including being a key architect of Spark’s Leadership and
Development Programme.
The Spark Leadership Squad is as follows:
Chief Executive: Jolie Hodson
Customer Director: Grant McBeath
Finance Director (CFO): David Chalmers
General Counsel: Melissa Anastasiou
HR Director: Heather Polglase
Marketing Director: Matt Bain
Product Director: Tessa Tierney
Technology Director: Mark Beder
Moving towards a 5G future
New Zealand needs strong, adaptable infrastructure to power our
businesses and our people and Spark has been leading the way by
significantly investing in our mobile and internet of things networks to
provide customers with world-class service and innovative products.
With the launch of our 5G innovation lab in Auckland, Spark became the
first New Zealand business to showcase this exciting new technology.
Since opening in November 2018, the lab has hosted more than
2,700 visitors. We also opened a 5G collaboration space in June 2019,
an extension of the innovation lab, enabling Kiwi businesses to test,
innovate and explore the future of 5G. In just a few months we have
had six businesses complete their testing.
We also collaborated with Ohmio Automotion to test New Zealand’s
first 5G connected driverless car on Auckland streets. The test used
Spark’s pre-commercial 5G network, available as part of the
5G Innovation Lab.
With 5G becoming a feature of public conversation, there has been
growing debate and some confusion about electromagnetic fields
(EMFs) from cell phones and cell sites and the impact these have
on human health. However, 5G is just another application of radio
technology and its usage will be covered by the existing New Zealand
safety standard for radio frequency fields.
All Spark cell site infrastructure operates well within safety limits – which
incorporate substantial safety margins – and our 5G network will continue
to do so. We design all our mobile cell towers to comply with National
Environmental Standards (NES) including NZS 2772 (the New Zealand
Standard for radio frequency fields). Based on our continuous robust
testing obligations, all Spark’s cell towers transmit at less than 5% of the
New Zealand exposure limit outlined in NZS 2772.
New products for seniors
With about 21% of New Zealanders predicted to be aged 65 plus by
2032, it makes sense for Spark to provide more solutions to address
the needs of this age group. In July, we announced two new products
that will help the older generation win big in a digital world, Call
Screen and Spark Gold Plans.
Call screen
The number of phone scam victims in New Zealand has continued to grow
over the past few years and many are still losing thousands of dollars after
falling victim to tricky scammers. And as avid landline users, many of those
who have fallen victim have been seniors.
New Zealand’s first home phone with nuisance call blocking technology,
Call Screen is designed to help protect customers from scams and other
nuisance calls. Users can decide who they talk to by screening incoming
calls, reducing the fear of becoming victim to scammers.
Most of the time, scammers use what’s called robo-dialing to carry
out their scamming activity, which means they use a software that
automatically calls a series of numbers and an actual scammer won’t be
prompted until a person answers one of the calls. A scammer’s robo-
dialing system isn’t sophisticated enough to be able to leave a name,
a requirement of the Call Screen technology. That means the call won’t
connect and the home phone won’t ring in the first place.
It’s important to remember though, that not all scammers use robo-
dialing technology. Some scammers will be people posing to be from a
reputable company. They will be able to leave their name and the phone
will ring, so it’s important to remain diligent when receiving calls out of
the blue.
Spark Gold Plans
We’ve also introduced two pay monthly mobile plans designed to meet
the needs of those aged 65 years and over – the very affordable Spark
Gold Plans. These plans are only available to the 65+ age group, giving
them less of what most don’t need i.e. data and plenty of what they do
need i.e. calling at an excellent price. In fact, one of them is the most
affordable advertised pay monthly mobile plan in NZ!
Basic and Gold Talker pay monthly mobile plans are available to those aged
65 and older. More information on Spark’s Gold plans can be found at
spark.co.nz/shop/mobile-plans/gold-plans.
New privacy policy
Spark has a new Privacy Policy that tells people how we collect, use and
protect their information. It also tells them who we share their information
with and how.
Previously, we had information about customer privacy in our customer terms
and conditions. This new policy provides all the information customers need
regarding their personal data in one easily accessible place on our website.
Our customers, along with the rest of the New Zealand public, value their
privacy and they trust that we will protect and manage information about them
in a way that aligns with their expectations. Spark is committed to respecting
the privacy of our customers and the personal information they entrust to us.
It is also Spark’s focus to enable our customers to safely and easily manage
their personal information. Being transparent with our customers is a key
part of this.
Accelerating cloud and business
transformation for New Zealand
organisations
leaven.co.nz
OUR PURPOSE
TO HELP
NEW ZEALAND
ALL OF
IN A DIGITAL WORLD
WIN BIG
ĀWHINATIA NGĀ TANGATA KATOA O AOTEAROA
KIA MATOMATO TE TIPU I TE AO MATIHIKO
OUR 3 YEAR GOAL
SPARK IS A
IN
RECOGNISED NEW ZEALAND
LEADER
SUSTAINABILITY
Confidential – Board and Leadership Team Only
WHERE WE’VE LANDED:
OUR STRATEGIC FOCUS AREAS
WE’RE DOING OUR BIT TO
BUILD A
FAIRER & MORE
INCLUSIVE SOCIETY
,
STARTING WITH OUR
OWN BUSINESS
FAIRNESS &
INCLUSION
WE PROTECT & RESTORE
THE ENVIRONMENT THROUGH
OUR BUSINESS OPERATIONS
& OUR VALUE CHAIN
ENVIRONMENTAL
PROTECTION
WE ARE RESPONSIBLE,
ETHICAL & TRANSPARENT
IN ALL OUR BUSINESS
ACTIVITIES
TRUST &
TRANSPARENCY
WE’RE INVESTING IN THE
PEOPLE, INFRASTRUCTURE
& SERVICES
NEW ZEALAND
NEEDS TO PROSPER IN
A DIGITAL WORLD
A PROSPEROUS
NEW ZEALAND
Spark’s Sustainability Strategy
As a purpose driven organisation, Spark wants to make a positive
contribution to New Zealand and we take our role as a responsible
corporate citizen very seriously. We have a new sustainability
strategy that focuses on four pillars – fairness and inclusion;
environmental protection; a prosperous New Zealand; and trust
and transparency.
We have set ourselves a three-year goal to become a recognised leader
in sustainability in New Zealand – a big aspiration for our business.
Digital inclusion is a big area of focus for us – particularly as there are
approximately 40,000 New Zealand homes with school age children
who don’t have access to the Internet. By removing barriers to
connectivity, such as cost and lack of capability, we can help ensure
no New Zealander is left behind in a digital world.
Spark is a founding member of the Climate Leaders Coalition; we have
a goal to reduce our environmental footprint and are working with both
our customers and suppliers to help them reduce theirs. We recently
introduced plug-in hybrid electric vehicles to our fleet – one of the many
changes we are making.
We were a finalist in this year’s Deloitte Energy Excellence Awards, an
acknowledgment of the efforts we have undertaken to reduce our carbon
footprint through major technology and infrastructure investments.
Our Blue Heart programme has evolved beyond its origins as a personal
pledge to diversity and inclusion, to become a unifying icon for our wider
approach to an inclusive and heart-led culture. More than 3,000 staff
have made a Blue Heart pledge to demonstrate a personal commitment
to promoting diversity and inclusion in the workplace.
Leaven
In August, we announced the launch of a new digital transformation
consultancy, Leaven, built to help organisations as they make the shift to
new and more digital ways of working.
As the world enters into the digital era, organisations are actively looking for
smarter ways to turn their aspirations for digital transformation into action.
Leaven is one of Spark’s many solutions to help New Zealand business
win big in a digital word.
Leaven will be led by former Revera CEO Robin Cockayne and will focus
on cloud adoption, operations and digital innovation, and effectively
establishing processes and technology enablers that underpin business
transformation. And they’ll be combining local experience with intellectual
property exclusively licensed from Cloud Technology Partners, a Hewlett
Packard Enterprise company, to pull it off.
The Leaven team has already been working with several public sector and
commercial customers, finding the value proposition is resonating with the
local market. For more info, visit leaven.co.nz.
Compatible devices only (max one stream at any time). You must have iOS 10 or above on Apple devices
or Lollipop 5 or above on Android devices in order to use the Spark Sport app. You will be charged $19.99 a
month after trial ends, unless you suspend before. Auto renews each month unless suspended. Terms apply.

To find out more about Spark products and services, visit spark.co.nz or visit your nearest store.
We welcome any feedback, which you can provide via email to investor-info@spark.co.nz
SPA5205_A4_10/19
4
Electronic Shareholder
Communications
Spark New Zealand shareholders can choose to receive all
communications electronically. This makes it more efficient
and convenient for you, plus it reduces environmental
impact and cost.
You can select how you receive communications from Spark
New Zealand by visiting the Link Market Services website.
NZ registered holders:
linkmarketservices.co.nz please select “Investor Login”
on the top right hand side of the page. Please select
“Spark New Zealand Limited” from the issuer drop down box.
You will need your CSN/holder number and FIN to complete
the investor validation process.
AU registered holders:
Go to linkmarketservices.com.au please select “Investor
and Employee Login” on the top right hand side of the
page. Please select “Spark New Zealand Limited” from the
issuer drop down box. You will need your holder number
(SRN or HIN) and postcode to complete the investor
validation process.
News in brief
Music
We’ve partnered with New Zealand’s biggest summer music
festival Bay Dreams and Six60 to bring Spark customers awesome
experiences and benefits this summer.
We will also be returning to Splore again this year with ‘money can’t
buy’ experiences and ticket giveaways for Spark customers at the
event in February. For more information visit spark.co.nz/music
Internet of Awesome things podcast
To help demystify what a lot of people see as a seemingly mysterious
technology, Spark recently launched a podcast dedicated to the
Internet of Things, called The Internet of Awesome Things.
Hosted by well-known New Zealand media commentator, Russell
Brown, the podcast boils down the basics of IoT, covering where
it came from, where it’s going, what it is and what it means for
New Zealanders.
Across six episodes, Russell, with the help of tech experts,
explores how IoT is being used by businesses and finds
20 billion things to get excited about.
To hear more please subscribe to the “Internet of Awesome
Things” at spark.co.nz/iotpodcast or wherever you normally get
your podcasts.
Product recall
In early August, we announced an immediate product recall of a power
back-up device that had been issued to approximately 14,000 wireless
landline phone customers during the previous four months.
The power back-up had been included to ensure that wireless landlines
would continue working for four hours in a power cut. The recall followed
the discovery of a manufacturing error in some power back-ups that
could cause the unit to overheat, leading to a fire risk. We are not aware
of any harm being caused to any customers by this manufacturing issue.
But because our customer’s safety is paramount, we made the decision
to immediately recall all wireless landline power back-ups issued
between 22 March 2019 – 2 August 2019.
We contacted customers several times to advise them on next steps. We
also let them know that their wireless landline would still work without
the power back-up, but if they needed something to fall back on during a
power cut we could arrange alternative technology for them. Customers
were able to take their power back-up to their nearest Spark store or
arrange for us to collect it.
So far, we’ve had more than 11,500 power back-ups returned, but we’re
still working hard to recall the remainder. If you know anyone with a
wireless landline, please check that they’ve returned their power back-
up to Spark. You can find more information at spark.co.nz/productrecall
niureta

newsletter
Mental Health and
Wellbeing at Spark
The health and wellbeing of our people is something we take
very seriously.
Beginning with an open dialogue at a staff conference in 2017,
Spark has been heavily engaged in mental health initiatives in the
workplace, building up a volunteer staff-led community of around
650 employees and today having almost 60% of staff engaging with
our mental health community and related content.
Recently, Spark was recognised for its mental health and
wellbeing efforts and nominated as a finalist in the Emerging
Diversity and Inclusion Category at the 2019 Diversity Awards NZ,
which honours a diversity and inclusion initiative that is less than
two years old.
We’re currently implementing a broader Health & Wellbeing
programme to help make sure we are doing what we can to
encourage each and every one of us to lead a healthy lifestyle, and
care for ourselves and each other.
We want this programme to be as relevant to our people as possible so
that we get high engagement and hopefully make a real difference.
We recently signed what’s called the ‘WorkWell Pledge,’ a wellbeing
agreement to work collaboratively with Toi Te Ora Public Health,
who are regarded as one of the leading health and wellbeing
experts in New Zealand, on improving the mental and physical
health and wellbeing of Spark NZ staff.
In partnership with Toi Te Ora Public Health and Spark’s own Health
Safety and Wellbeing ambassadors, we want to establish a world class
framework that promotes staff wellbeing. It’s an ambitious goal, but worth
striving for – and people we’ve spoken to are very excited and inspired
by what we could achieve.