Spark New Zealand Limited H1 FY20 Results

MARKET RELEASE
19 February 2020

Spark New Zealand delivers strongest revenue growth in three years
• Stand-out performance in mobile, securing 5.5% growth in high-margin mobile
service revenue
• Continued growth in cloud, security and service management
• Tightened focus on core through divestment of Lightbox and CCL’s network assets
and merger of cloud and ICT businesses Revera and CCL
• Completed a substantial capacity upgrade across Spark’s wireless network
• Customer and culture performance metrics continue to climb off the back of the
Company’s shift to Agile ways-of-working and long-term investment in IT and
network infrastructure
Spark New Zealand today announced revenue growth of 4.0% to $1,824 million for the half year
to 31 December 2019. This was achieved through particularly strong performance in mobile,
with high-margin mobile service revenue up 5.5%, translating to a market share increase of
1.2pp to 40.1%
1
– its highest level since 2012.

Revenues were also buoyed by cloud, security and service management growth (up 12.3%), the
introduction of Spark Sport and a moderation in the rate of legacy voice declines (down 11.6%),
as fixed-line voice becomes a smaller part of the business.

Operating expenses increased as the benefit of cost-out activities were reinvested to partially
fund current and future revenue growth. This included the launch of cloud and business
transformation consultancy Leaven, the growth of Spark Sport, the acquisition of Now
Consulting as part of data analytics business Qrious and the launch of emerging technology
business, Mattr.

Reported EBITDAI
2
grew 2.2% to $500 million, driven by strong revenue growth momentum and
a determined focus on execution and cost management.
Net profit after tax grew 9.2% to $167 million, primarily driven by growth in EBITDAI and lower
depreciation and amortisation expense.

Spark Chair Justine Smyth said the Company’s shift to Agile ways-of-working and its long-term
investment in IT and network infrastructure was delivering better experiences for its customers
and people and supporting robust performance.

“We are heading into the final six months of a three-year strategy that has been transformative
for Spark. Our move to Agile ways-of-working continues, with ongoing incremental gains in our
speed to market, customer understanding and focus, and in building a high performance and
inclusive culture.

“We have made significant investments in Spark’s network infrastructure, which has improved
our competitive advantage, and diversified our business beyond traditional telecommunications
into growth segments like digital services and sports streaming.

1
Market share estimates vs. prior year, sourced from IDC
2
Earnings before interest, tax, depreciation, amortisation and investment income

“It is pleasing to see this hard work translating into improved customer experiences. Our
customer satisfaction scores are already ahead of full-year targets and fewer customers are
needing to contact us to troubleshoot, with total customer care interactions
3
down 15% over
the last 12 months,” said Justine.

CEO Jolie Hodson said Spark had strong market momentum and was making good progress
delivering a wireless future for New Zealand.

“We are heading into the second half with great momentum and some stand-out performances
across our core segments.

“We outperformed our growth targets in mobile, with a shift to unlimited and high value plans.
We made a deliberate decision to limit wireless broadband sales in the lead up to the Rugby
World Cup, as a conservative measure to ensure customers had a great viewing experience
while we introduced our new streaming service. Our capacity was more than sufficient, so we
expect this to be a one-off and connection growth to return to trend in the second half.

“We were the first-to-market rolling out 5G services in heartland New Zealand, and our longer-
term rollout plans will benefit from the early auction of spectrum, with the process due to start
in March 2020. 5G will be a big part of how we will continue to create a wireless future for New
Zealand, and we have some exciting projects in the pipeline for 2020, including our support of
Emirates Team New Zealand.

“We have also tightened our focus on our core business by finalising the divestment of Lightbox
and CCL’s network assets and completing the merger of our cloud and ICT businesses Revera
and CCL.

“This groundwork stands us in good stead as we work to close out the financial year and look
ahead to the next three years,” said Jolie.

Spark will release details of its next three-year strategy, encompassing the period out to and
including FY23, at an Investor Day on 2 April 2020. The evolved strategy will build on the
momentum and foundational capabilities the Company has established through the successful
execution of its current strategy.

Spark announced an H1 FY20 total dividend per share of 12.5 cents, 75% imputed. Subject to no
adverse change in operating outlook full-year FY20 EBITDAI, capital expenditure and dividend
guidance remains unchanged; including FY20 dividend per share guidance of 25.0 cents, at least
75% imputed.

ENDS

For media queries, please contact:
Ellie Cross
Corporate Relations Lead Partner
+64 (0)22 630 0665
For investor relations queries, please contact:
Dean Werder
Finance Lead Partner Product and Performance
+64 (0)27 259 7176



3
Total customer care interactions include voice, chat and virtual assistant interactions.

---

Interim Financial Statements
for the six months ended 31 December 2019

INTERIM
FINANCIAL
STATEMENTS
For the six months ended 31 December 2019
Interim financial statements03
Notes to the interim financial statements07
Independent review report17
These interim financial statements do not
include all the notes and information normally
included in the annual financial statements.
Accordingly, they should be read in conjunction
with the annual financial statements for the year
ended 30 June 2019.
Page 02
Spark New ZealandInterim financial statements

Statement of profit or loss and other comprehensive income
FOR THE SIX MONTHS ENDED 31 DECEMBER
20192018
UNAUDITEDUNAUDITED
NOTE$M$M
Operating revenues and other gains 1,824 1,754
Operating expenses (1,324) (1,265)
Earnings before finance income and expense, income tax,
depreciation, amortisation and net investment income (EBITDAI) 500 489
Finance income 18 18
Finance expense (46) (40)
Depreciation and amortisation (234) (245)
Net investment income (1)–
Net earnings before income tax3 237 222
Income tax expense (70) (69)
Net earnings for the period 167 153
Other comprehensive income
Items that will not be reclassified to profit or loss:
Revaluation of long-term investments designated at fair value
through other comprehensive income 13 87
Items that may be reclassified to profit or loss:
Cash flow hedges net of tax 1 (18)
Other comprehensive income for the period 14 69
Total comprehensive income for the period 181 222
Earnings per share
Basic and diluted earnings per share (cents) 9.1 8.3
Weighted average ordinary shares (millions) 1,837 1,836
Weighted average ordinary shares and options (millions) 1,838 1,836
See accompanying notes to the interim financial statements.
Page 03
Spark New ZealandInterim financial statements

Statement of financial position
AS AT
31 DECEMBER
AS AT
30 JUNE
20192019
UNAUDITEDAUDITED
NOTES$M$M
Current assets
Cash 54 54
Short-term receivables and prepayments 768 755
Short-term derivative assets – 2
Inventories 127 100
Assets classified as held for sale2 28 –
Total current assets 977 911
Non-current assets
Long-term receivables and prepayments 297 291
Long-term derivative assets 28 32
Long-term investments5 225 182
Right-of-use assets 625 625
Leased customer equipment assets 72 55
Property, plant and equipment 1,037 1,012
Intangible assets 1,015 987
Total non-current assets 3,299 3,184
Total assets 4,276 4,095
Current liabilities
Short-term payables, accruals and provisions 440 447
Taxation payable 9 19
Short-term derivative liabilities 19 14
Short-term lease liabilities 32 31
Debt due within one year6 424 433
Liabilities classified as held for sale2 3 –
Total current liabilities 927 944
Non-current liabilities
Long-term payables, accruals and provisions 92 68
Long-term derivative liabilities 118 111
Long-term lease liabilities 468 459
Long-term debt6 1,164 962
Deferred tax liabilities 87 86
Total non-current liabilities 1,929 1,686
Total liabilities 2,856 2,630
Equity
Share capital 949 945
Reserves (396) (409)
Retained earnings 867 929
Total equity 1,420 1,465
Total liabilities and equity 4,276 4,095
See accompanying notes to the interim financial statements.
On behalf of the Board
Justine Smyth, Chair Jolie Hodson, Chief Executive
Authorised for issue on 19 February 2020
Page 04
Spark New ZealandInterim financial statements

Statement of changes in equity
SIX MONTHS ENDED
31 DECEMBER 2019
SHARE
CAPITAL
RETAINED
EARNINGS
HEDGE
RESERVE
SHARE-

BASED
COMPEN-
SATION

RESERVE
RE-

VALUATION
RESERVE
FOREIGN
CURRENCY
TRANS-

LATION
RESERVETOTAL
UNAUDITED$M$M$M$M$M$M$M
Balance at 1 July 2019 945 929 (85) 2 (303) (23) 1,465
Net earnings for the period – 167 – – – – 167
Other comprehensive income – – 1 – 13 – 14
Total comprehensive income
for the period – 167 1 – 13 – 181
Contributions by, and distributions to,
owners:
Dividends – (229) – – – – (229)
Supplementary dividends – (19) – – – – (19)
Tax credit on supplementary
dividends – 19 – – – – 19
Issuance of shares under
share schemes 4 – – (1) – – 3
Total transactions with owners 4 (229) – (1) – – (226)
Balance at 31 December 2019 949 867 (84) 1 (290) (23) 1,420
SIX MONTHS ENDED
31 DECEMBER 2018
SHARE
CAPITAL
RETAINED
EARNINGS
HEDGE
RESERVE
SHARE-
BASED
COMPEN-
SATION
RESERVE
RE-
VALUATION
RESERVE
FOREIGN
CURRENCY
TRANS-
LATION
RESERVETOTAL
UNAUDITED$M$M$M$M$M$M$M
Balance at 1 July 2018 941 979 (26) 2 (390) (23) 1,483
Net earnings for the period – 153 – – – – 153
Other comprehensive income/(loss) – – (18) – 87 – 69
Total comprehensive income/(loss)
for the period – 153 (18) – 87 – 222
Contributions by, and distributions to,
owners:
Dividends – (229) – – – – (229)
Supplementary dividends – (21) – – – – (21)
Tax credit on supplementary
dividends – 21 – – – – 21
Issuance of shares under
share schemes 1 – – (1) – – –
Total transactions with owners 1 (229) – (1) – – (229)
Balance at 31 December 2018 942 903 (44) 1 (303) (23) 1,476
Page 05
Spark New ZealandInterim financial statements

Statement of cash flows
FOR THE SIX MONTHS ENDED 31 DECEMBER
20192018
UNAUDITEDUNAUDITED
NOTE$M$M
Cash flows from operating activities
Receipts from customers 1,861 1,770
Receipts from interest 17 18
Payments to suppliers and employees (1,396) (1,314)
Payments for income tax (82) (44)
Payments for interest on debt (26) (22)
Payments for interest on leases (14) (13)
Payments for interest on leased customer equipment assets (3) (2)
Net cash flows from operating activities7 357 393
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 13 –
Payments for purchase of business (11) –
Payments for, and advances to, long-term investments (30) (6)
Payments for purchase of property, plant and equipment,
intangibles and capacity (273) (258)
Payments for capitalised interest (4) (3)
Net cash flows from investing activities (305) (267)
Cash flows from financing activities
Net proceeds from debt 207 182
Receipts from finance leases 2 3
Payments for dividends (229) (229)
Payments for leases (19) (19)
Payments for leased customer equipment assets (13) (8)
Net cash flows from financing activities (52) (71)
Net cash flow – 55
Opening cash position 54 55
Closing cash position 54 110
See accompanying notes to the interim financial statements.
Page 06
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 1 About this report
Reporting entity
These unaudited interim financial statements
are for Spark New Zealand Limited (the
‘Company’) and its subsidiaries (together
‘Spark’ or ‘the Group’) for the six months
ended 31 December 2019.
The Company is incorporated and domiciled in
New Zealand, registered under the Companies
Act 1993 and is an FMC reporting entity under
the Financial Markets Conduct Act 2013. The
Company is listed on the New Zealand Main
Board equity security market and the Australian
Securities Exchange.
Basis of preparation
The interim financial statements have been
prepared in accordance with Generally
Accepted Accounting Practice in New Zealand
(‘NZ GAAP’) and comply with the New Zealand
equivalent to International Accounting
Standard 34: Interim Financial Reporting
and International Accounting Standard 34:
Interim Financial Reporting.
The accounting policies adopted are consistent
with those followed in the preparation of Spark’s
annual financial statements for the year ended
30 June 2019. The preparation of the interim
financial statements requires management to
make estimates and assumptions. Spark has
been consistent in applying the estimates and
assumptions adopted in the annual financial
statements for the year ended 30 June 2019
and critical accounting policies are the same as
those set out in the annual financial statements
for the year ended 30 June 2019.
Financial instruments are either carried
at amortised cost, less any provision for
impairment, or fair value. The only significant
variances between instruments held at
amortised cost and their fair value relate to
long-term debt. There were no changes in
valuation techniques during the period.
Spark’s derivatives are held at fair value,
calculated using discounted cash flow models
and observable market rates of interest and
foreign exchange and electricity prices. This
represents a level two measurement under the
fair value measurement hierarchy, being inputs
other than quoted prices included within level
one that are observable for the asset or liability.
At 31 December 2019, capital expenditure
amounting to $249 million (31 December 2018:
$161 million) had been committed under
contractual arrangements.
Page 07
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 2 Significant transactions and events for the current period
The following significant transactions and events
affected the financial performance and financial
position of Spark for the six month period to
31 December 2019:
Debt programme
• On 18 September 2019 Spark issued
A$125 million of unsecured fixed rate bonds
with a coupon rate of 2.60%, maturing on
18 March 2030.
• On 25 October 2019 $250 million
of unsecured fixed rate bonds with
a coupon rate of 5.25% matured.
Capital expenditure
• Spark’s additions to property, plant and
equipment and intangible assets were
$247 million, details of which are available
in a separate detailed financials file on the
investor section of our website at: investors.
sparknz.co.nz/investor-centre.
Dividends
• Dividends paid during the six month period
ended 31 December 2019 in relation to the
H2 FY19 second-half dividend (ordinary
dividend of 11 cents per share and special
dividend of 1.5 cents per share) totalled
$229 million or 12.5 cents per share.
Acquisitions
• On 5 September 2019 Spark’s subsidiary
Qrious Limited completed the acquisition
of NOW Consulting, the New Zealand-based
data consulting division of WhereScape
Software, which gives Qrious a unique data
and analytics offering in the New Zealand
market.
Southern Cross NEXT cable
• On 1 October 2019 Spark announced that
agreements had been signed for the build
of the Southern Cross NEXT undersea
data cable (SX NEXT). SX NEXT has been
developed as an extension of the existing
Southern Cross Cable Network (Southern
Cross) and when completed is expected
to be the lowest latency path from
Australia and New Zealand to the
United States. The transaction completed
on 3 October 2019 and the build of
SX NEXT has commenced.
• The transaction has resulted in Telstra
becoming a 25% shareholder of the
Southern Cross and an anchor customer
of SX NEXT. As a consequence of Telstra
becoming a shareholder, Spark’s
shareholding in Southern Cross will be
diluted from 50% to approximately 40%.
• Spark expects to contribute a total of between
$70 million and $90 million of equity across
FY20, FY21 and FY22, depending on the level
of SX NEXT pre-sales that are secured.
• No dividends were received from Southern
Cross during the period. Dividend receipts
from Southern Cross are expected to resume
from FY22.
Assets held for sale
• On 19 December 2019 Spark announced
it had entered into a conditional agreement
to sell its entertainment streaming business
Lightbox New Zealand Limited (Lightbox)
to Sky Network Television Limited. The
assets and liabilities of Lightbox have
been reclassified as held for sale in
the statement of financial position as
at 31 December 2019. The transaction
completed on 31 January 2020.
• On 5 December 2019 Computer Concepts
Limited (CCL), Spark’s wholly owned
provider of cloud and ICT services, signed
a conditional agreement to divest the
operational parts of its network services
division (which are duplicated elsewhere
in the group) in a buy-out by a member
of the CCL management team. The assets
and liabilities of CCL’s network services
division have been reclassified as held for
sale in the statement of financial position
as at 31 December 2019. The transaction
completed on 31 January 2020.
Page 08
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 3 Segment information
FOR THE SIX MONTHS ENDED
31 DECEMBER
20192018
OPERATING
REVENUES
PRODUCT
COSTS
PRODUCT
MARGIN
OPERATING
REVENUES
PRODUCT
COSTS
PRODUCT
MARGIN
UNAUDITED$M$M$M$M$M$M
Mobile 653 (248) 405 622 (246) 376
Voice 199 (75) 124 225 (82) 143
Broadband 345 (170) 175 344 (176) 168
Cloud, security and service
management 219 (43) 176 195 (32) 163
Procurement and partners 208 (187) 21 191 (173) 18
Other managed services 121 (56) 65 121 (55) 66
Other 75 (60) 15 56 (31) 25
Segment result 1,820 (839) 981 1,754 (795) 959
The segment results disclosed are based on
those reported to the Chief Executive and are
how Spark reviews its performance. Spark’s
segment results are measured based on product
margin which includes product operating
revenues and direct product costs. The segment
result excludes labour, operating expenses,
depreciation and amortisation, net investment
income, finance income and expense and
income tax expense as these are assessed at an
overall Spark Group level by the Chief Executive.
Comparative segment results
Spark has reclassified the comparative segment
results to reflect minor changes in the
management of videoconferencing and other
collaboration services from voice to other
managed services.
Page 09
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 3 Segment information (continued)
Reconciliation from segment result to consolidated net earnings before income tax
SIX MONTHS ENDED 31 DECEMBER20192018
UNAUDITED$M$M
Segment product margin 981 959
Other gains 4 –
Labour (267) (250)
Other operating expenses
Network support costs (35) (37)
Computer costs (49) (46)
Accommodation costs (33) (37)
Advertising, promotions and communication (47) (47)
Bad debts (7) (6)
Impairment expense – (5)
Other (47) (42)
Earnings before finance income and expense, income tax, depreciation,
amortisation and net investment income (EBITDAI) 500 489
Finance income
Finance lease interest income 7 7
Other interest income 11 11
Finance expense
Finance expense on long-term debt (31) (27)
Capitalised interest 4 4
Other interest and finance expenses (1) –
Lease interest expense (15) (15)
Leased customer equipment interest expense (3) (2)
Depreciation and amortisation expense
Depreciation - property, plant and equipment (119) (128)
Depreciation - right-of-use assets (28) (25)
Depreciation - leased customer equipment assets (15) (9)
Amortisation of intangibles (72) (83)
Net investment income
Share of associates’ and joint ventures’ net losses (1) –
Net earnings before income tax 237 222
Page 10
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 4 Non-GAAP measures
In addition to New Zealand Equivalents to
International Financial Reporting Standards
(‘NZ IFRS’) Spark uses non-GAAP financial
measures. Spark believes that these non-GAAP
financial measures provide useful information
to readers to assist in the understanding of
the financial performance, financial position
or returns of Spark. These measures are also
used internally to evaluate performance of
products, to analyse trends in cash-based
expenses, to establish operational goals and
allocate resources. However, they should not
be viewed in isolation, nor considered as a
substitute for measures reported in accordance
with NZ IFRS, as they are not uniformly defined
or utilised by all companies in New Zealand
or the telecommunications industry.
Spark’s policy is to present ‘adjusted EBITDAI’
and ‘adjusted net earnings’ when a financial year
includes significant items (such as one-off gains,
expenses and impairments) greater than
$25 million. There are no adjusting items for
the six months ended 31 December 2019 or
31 December 2018.
Earnings before finance expense and
income, net investment income, income tax,
depreciation and amortisation (EBITDAI)
Spark calculates EBITDAI by adding back
depreciation and amortisation, finance expense
and income tax expense and subtracting finance
income and net investment income (which
includes dividend income and Spark’s share
of net profits or losses from associates and
joint ventures) to net earnings. A reconciliation
of Spark’s EBITDAI is provided below and based
on amounts taken from, and consistent with,
those presented in these interim financial
statements.
SIX MONTHS ENDED 31 DECEMBER20192018
UNAUDITED$M$M
Net earnings for the period reported under NZ IFRS 167 153
Less: finance income (18) (18)
Add back: finance expense 46 40
Add back: depreciation and amortisation 234 245
Add back: net investment income 1 –
Add back: income tax expense 70 69
EBITDAI 500 489
Page 11
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 5 Long-term investments
AS AT
31 DECEMBER
AS AT
30 JUNE
20192019
UNAUDITEDAUDITED
$M$M
Shares in Hutchison 169 156
Investment in associates and joint ventures 48 21
Other long-term investments 8 5
225 182
Spark holds a 10% interest in Hutchison Telecommunications Australia Limited (Hutchison) which is
quoted on the Australian Securities Exchange (ASX) and measures its fair value using its observable
market share price as quoted on the ASX, classified as being within level 1 of the fair value hierarchy.
As at 31 December 2019 the quoted price of Hutchison’s shares on the ASX was A$0.120 (30 June
2019: A$0.110). The change in fair value is recognised in other comprehensive income.
Subsequent to balance date, on 13 February 2020, the Federal Court of Australia ruled to allow the
proposed merger between Vodafone Hutchison Australia Pty Limited and TPG Telecom Limited. The
quoted price of Spark’s investment in Hutchison (a shareholder of Vodafone Hutchison Australia Pty
Limited) increased materially following this announcement and on 17 February 2020 was A$0.152.
The fair value of Spark’s investment in Hutchison based on this price would be $215 million, an
increase of $46 million from 31 December 2019.
Investment in associates and joint ventures
Spark’s investment in associates and joint ventures at 31 December 2019 consists of the following:
NAMETYPECOUNTRYOWNERSHIPPRINCIPAL ACTIVITY
Connect 8 LimitedJoint VentureNew Zealand50%Fibre network
construction
Lightbox Sport General
Partner Limited
Joint VentureNew Zealand50%A holding company
NOW New Zealand LimitedAssociateNew Zealand37%Internet service
provider
Pacific Carriage Holdings LimitedAssociateBermuda38%A holding company
Pacific Carriage Holdings
Limited Inc
AssociateUnited States35%A holding company
PropertyNZ Limited
(homes.co.nz)
AssociateNew Zealand23%Property data website
Rural Connectivity Group LimitedJoint VentureNew Zealand33%Rural broadband
Southern Cross Cables
Holdings Limited
AssociateBermuda35%A holding company
TNAS LimitedJoint VentureNew Zealand50%Telecommunications
development
Page 12
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 6 Debt
AS AT
31 DECEMBER
AS AT
30 JUNE
20192019
COUPON
RATE
UNAUDITEDAUDITED
FACE VALUEFACILITYMATURITY$M$M
Short-term debt
Short-term borrowingsVariable< 1 month 41 –
Commercial paperVariable< 4 months 199 150
240 150
Bank funding
Westpac New Zealand Limited200 million NZDVariable30/11/2020 150 –
The Hongkong and Shanghai
Banking Corporation Limited100 million NZDVariable30/11/2021 100 40
MUFG Bank, Ltd125 million NZDVariable30/11/2022 125 100
375 140
Domestic notes
250 million NZD5.25%25/10/2019 – 250
100 million NZD4.50%25/03/2022 102 103
100 million NZD4.51%10/03/2023 106 107
125 million NZD3.37%07/03/2024 130 130
125 million NZD3.94%07/09/2026 131 131
469 721
Foreign currency Medium Term Notes
Euro Medium Term Notes - 18 million GBP5.75%06/04/202034 33
Australian Medium Term Notes - 150 million AUD4.00%20/10/2027 172 173
Norwegian Medium Term Notes - 1 billion NOK3.07%19/03/2029 169 178
Australian Medium Term Notes – 125 million AUD2.60%18/03/2030129 –
504 384
1,588 1,395
Debt due within one year 424 433
Long-term debt 1,164 962
On 18 September 2019 Spark issued A$125 million of unsecured fixed rate bonds with a coupon
rate of 2.60%, maturing on 18 March 2030.
There have been no other changes in Spark’s short-term financing programmes or stand-by facilities
since 30 June 2019. Changes in long-term financing are disclosed in Note 2 page 8 of these interim
financial statements.
Page 13
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 6 Debt (continued)
Net debt
Net debt at hedged rates, the primary net debt measure Spark monitors, includes long-term debt
at the value of hedged cash flows due to arise on maturity, plus short-term debt, less any cash.
Net debt at carrying value includes the non-cash impact of fair value hedge adjustments and any
unamortised discount.
Net debt at hedged rates is a non-GAAP measure and is not defined in accordance with NZ IFRS
but is a measure used by management. A reconciliation of net debt at hedged rates and net debt
at carrying value is provided below:
AS AT
31 DECEMBER
AS AT
30 JUNE
20192019
UNAUDITEDAUDITED
$M$M
Cash (54) (54)
Short-term debt at face value 240 150
Long-term debt at face value 1,315 1,205
Net debt at face value 1,501 1,301
To retranslate debt balances at swap rates where hedged by currency swaps 25 15
Net debt at hedged rates¹ 1,526 1,316
Non-cash adjustments
Impact of fair value hedge adjustments² 31 31
Unamortised discount (1) –
Net debt at carrying value 1,556 1,347
1 Net debt at the value of hedged cash flows due to arise on maturity and includes adjustment to state principal of foreign
currency medium term notes at the hedged currency rate.
2 Fair value hedge adjustments arise on domestic notes in fair value hedges and foreign currency medium term notes in
dual fair value and cash flow hedges. These have no impact on the cash flows to arise on maturity.

Page 14
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 7 Reconciliation of net earnings to net cash flows from operating activities
SIX MONTHS ENDED 31 DECEMBER20192018
UNAUDITED$M$M
Net earnings for the period 167 153
Adjustments to reconcile net earnings to net cash flows from
operating activities
Depreciation and amortisation 234 245
Bad and doubtful accounts 9 9
Deferred income tax (3) (6)
Share of associates’ and joint ventures’ net losses 1 –
Impairments – 5
Other gains (4) –
Other 5 (1)
Changes in assets and liabilities net of effects of non-cash and investing
and financing activities
Movement in receivables and related items 19 (42)
Movement in inventories (41) (32)
Movement in current taxation (9) 30
Movement in payables and related items (21) 32
Net cash flows from operating activities 357 393
Page 15
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 8 Dividends
On 19 February 2020 the Board approved the payment of a first half ordinary dividend of 12.5 cents
per share or approximately $230 million. The dividend will be 75% imputed in line with the
corporate income tax rate. In addition, supplementary dividends totalling approximately $19 million
will be payable to shareholders who are not resident in New Zealand. In accordance with the Income
Tax Act 2007, Spark will receive a tax credit from Inland Revenue equivalent to the amount of
supplementary dividends paid.
H1 FY20
ORDINARY DIVIDENDS
Dividends declared
Ordinary shares12.5 cents
American Depositary Shares¹40.27 US cents
Imputation
Percentage imputed75%
Imputation credits per share3.6458 cents
Supplementary dividend per share²1.6544 cents
‘Ex’ dividend dates
New Zealand Stock Exchange12/03/20
Australian Securities Exchange12/03/20
American Depositary Shares 12/03/20
Record dates
New Zealand Stock Exchange13/03/20
Australian Securities Exchange13/03/20
American Depositary Shares 13/03/20
Payment dates
New Zealand and Australia 3/04/20
American Depositary Shares 17/04/20
1 For H1 FY20, these are based on the exchange rate at 17 February 2020 of NZ$1 to US$0.6443 and a ratio of five ordinary
shares per one American Depositary Share. The actual exchange rate used for conversion is determined in the week prior
to payment when the Bank of New York performs the physical currency conversion.
2 Supplementary dividends are paid to non-resident shareholders.
Page 16
Spark New ZealandInterim financial statements

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Independent Review Report
To the shareholders of Spark New Zealand Limited
Report on the interim consolidated financial statements
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the interim
consolidated financial statements on pages 3 to 16
do not:
i.Present fairly in all material respects the
group’s financial position as at 31
December 2019 and its financial
performance and cash flows for the six
month period ended on that date; and
ii.comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
interim consolidated financial statements which
comprise:
—the consolidated statement of financial position
as at 31 December 2019;
—the consolidated statements of profit or loss
and other comprehensive income, changes in
equity and cash flows for the six month period
then ended; and
—notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
A review of interim consolidated financial statements in accordance with NZ SRE 2410 Review of Financial
Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance
engagement. The auditor performs procedures, consisting of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures.
As the auditor of Spark New Zealand Limited, NZ SRE 2410 requires that we comply with the ethical
requirements relevant to the audit of the annual financial statements.
Our firm has also provided other services to the group in relation to regulatory audit, other assurance related
services (such as trustee reporting) and compliance services. Subject to certain restrictions, partners and
employees of our firm may also deal with the group on normal terms within the ordinary course of trading
activities of the business of the group. These matters have not impaired our independence as reviewer of the
group. The firm has no other relationship with, or interest in, the group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we
might state to the shareholders those matters we are required to state to them in the Independent Review
Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the shareholders as a body for our review work, this report, or any of the
opinions we have formed.
Page 17
Spark New ZealandInterim financial statements

Responsibilities of the Directors for the interim consolidated financial
statements
The Directors, on behalf of the group, are responsible for:
—the preparation and fair presentation of the interim consolidated financial statements in accordance with NZ
IAS 34 Interim Financial Reporting;
—implementing necessary internal controls to enable the preparation of interim consolidated financial
statements that are free from material misstatement, whether due to fraud or error; and
—assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the interim consolidated
financial statements
Our responsibility is to express a conclusion on the interim consolidated financial statements based on our
review. We conducted our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude
whether anything has come to our attention that causes us to believe that the interim consolidated financial
statements are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand). Accordingly we do not express an audit
opinion on these interim consolidated financial statements.
This description forms part of our Independent Review Report.

KPMG
Wellington
19 February 2020


Page 18
Spark New ZealandInterim financial statements

Contact details
Registered office
Level 2
Spark City
167 Victoria Street West
Auckland 1010
New Zealand
Ph +64 4 471 1638 or 0800 108 010
Company secretary
Silvana Roest
New Zealand registry
Link Market Services Limited
Level 11 Deloitte House
PO Box 91976
80 Queen Street
Auckland 1142
Ph +64 9 375 5998 (investor enquiries)
Fax +64 9 375 5990
enquiries@linkmarketservices.com
www.linkmarketservices.co.nz
Australian registry
Link Market Services Limited
Level 12
680 George Street
Sydney NSW 2000
Australia
Locked Bag A14
Sydney South NSW 1235
Australia
Ph +61 1300 554 484 (investor enquiries)
Fax +61 2 9287 0303
registrars@linkmarketservices.com.au
www.linkmarketservices.com.au
Spark New Zealand Limited
ARBN 050 611 277
United States registry
Computershare Investor Services
P.O. Box 505000
Louisville, KY 40233-5000
United States of America
Ph +1 888 BNY ADRS (+1 888 269 2377)
or +1 201 680 6825 (from outside the
United States)
shrrelations@cpushareownerservices.com
www-us.computershare.com/investor
For more information
For inquiries about Spark’s operating and
financial performance contact:
investor-info@spark.co.nz
Investor Relations
Spark New Zealand Limited
Private Bag 92028
Auckland 1142
New Zealand
investors.sparknz.co.nz
insight
creative.co.nz
SPARK043 02/20
Page 19
Spark New ZealandInterim financial statements

investors.sparknz.co.nz
ARBN 050 611 277

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)





Results for announcement to the market
Name of issuer Spark New Zealand Limited
Reporting Period 6 months to 31 December 2019
Previous Reporting Period 6 months to 31 December 2018
Currency NZD - New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
NZD$1,824,000 4.0%
Total Revenue NZD$1,824,000 4.0%
Net profit/(loss) from
continuing operations
NZD$167,000 9.2%
Total net profit/(loss) NZD$167,000 9.2%
Interim/Final Dividend
Amount per Quoted Equity
Security
NZD$0.12500000 (comprised only of an ordinary dividend)
Imputed amount per Quoted
Equity Security
NZD$0.03645833 (comprised only of an ordinary dividend)
Record Date 13 March 2020
Dividend Payment Date 3 April 2020
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
As at 31 December 2019:
NZD$0.22
As at 31 December 2018:
NZD$0.26
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Changes in Spark’s earnings before finance income and
expense, income tax, depreciation, amortisation and net
investment income (EBITDAI) are provided in the addendum.
Authority for this announcement
Name of person

authorised
to make this announcement
Stefan Knight, Finance Director (CFO)
Contact person for this
announcement
Dean Werder, Finance Lead Partner - Product and Performance
Contact phone number +64 272597176
Contact email address investor-info@spark.co.nz
Date of release through MAP

19 February 2020

Unaudited financial statements accompany this announcement.

Addendum:

Amount (000s) Percentage
change
Reported earnings before finance income and expense,
income tax, depreciation, amortisation and net investment
income (Reported EBITDAI)
NZD$500,000 2.2%

---

Distribution Notice







Section 1: Issuer information
Name of issuer Spark New Zealand Limited
Financial product name/description Ordinary shares
NZX ticker code SPK
ISIN (If unknown, check on NZX
website)
NZ TELE0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies No
Record date 13 March 2020
Ex-Date (one business day before the
Record Date)
12 March 2020
Payment date (and allotment date for
DRP)
3 April 2020 AUST & NZ;
17 April 2020 USA
Total monies associated with the
distribution
NZD$229,630,618
(1,837,044,943 shares @ $0.125 per share)
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD - New Zealand Dollar
Section 2: Distribution amounts per financial product
Gross distribution NZD$0.16145833
Gross taxable amount NZD$0.16145833
Total cash distribution NZD$0.12500000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount NZD$0.01654412
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
23%
Imputation tax credits per financial
product
NZD$0.03645833

Resident Withholding Tax per
financial product
NZD$0.01682292
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A

N/A

Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Stefan Knight, Finance Director (CFO)
Contact person for this
announcement
Dean Werder, Finance Lead Partner - Product and
Performance
Contact phone number +64 272597176
Contact email address investor-info@spark.co.nz
Date of release through MAP

19 February 2020

---

Result Highlights
Relentless focus on delivery and execution driving strong financial performance and market momentum. Resulting in highest
revenue growth in three years, up $70m or 4.0% on prior year, driven by:
•Stand-out performance in mobile, securing 5.5% growth in high-margin mobile service revenue. Market share of mobile
service revenue now at 40.1%, up 1.2pp on prior year
(1)
-its highest level since 2012;
•Continued growth in cloud, security and service management revenue, up $24m or 12.3% on prior year;
•Entry into sports media via Spark Sport; and
•Moderation in the rate of legacy voice declines as this becomes a smaller part of the Spark business.
Operating expenses increased as thebenefits of cost-out activities were reinvested to partially fund current and future
revenue growth, resulting in EBITDAI growth of $11m or 2.2% on prior year.
Continue to invest in a wireless future for New Zealand.First-to-market 5G rollout progressing wellin heartland New Zealand.
Completion of early access 5G spectrum auction, which commences in March 2020, is a key enabler of a broader rollout.
Broadband market remains challenging. Moderation in wireless broadband growth the result of planned slow-down in sales
activity before and during the Rugby World Cup (RWC), but expect to benefit from new broadband offerings during H2 FY20.
Continued focus on implementingAgile ways-of-working is delivering better experiences for our customers and our people.
Customer satisfactionscores are already ahead of full-year targets and total customer care interactions
(2)
are down 15% on
prior year.
Tightened focus on core through divestment of Lightbox and CCL’s network assets
(3)
and merger of cloud and ICT businesses
Reveraand CCL.Also secured critical long-term access to international capacity, with build of Southern Cross Next cable now
underway.
Next three-year strategy, encompassing the period out to and including FY23, will build-on the momentum and foundational
capabilities we have established through the successful execution of our current strategy. Further context and detail will be
communicated at our Investor Day on 2 April 2020.
Maintain FY20 EBITDAI, capital expenditure and dividend guidance, including FY20 dividend guidanceof25 cents per share
at least 75% imputed
(4)
.
2
(1)
Market share estimates sourced from IDC
(2)
Total customer care interactions include voice, chat and virtual assistant interactions
(3)
The Lightbox and CCL network asset transactions completed in January 2020. As such a) H1 FY20 includes six months of normal trading activity for both entities and b) any transaction impacts will be
recognised in H2 FY20
(4)
Subject to no adverse change in operating outlook

Early access 3.5GHz 5G
spectrum imminent –
critical enabler of full suite
of 5G services
First-to-market with 5G in
November2019
Launched with service of most
immediate value for New
Zealanders -5G wireless
broadband.
Already testing 5G solution ‘out
on the water’ with Emirates Team
New Zealand; in support of their
defenceof the America’s Cup.
5G lab continues to be a catalyst
for the research and
development of 5G services and
applications. Now collaborating
with ‘pioneer’ enterprise
customers.
Well positioned for
progressive 5G network
roll-out
Strategy Update
Creating a wireless future: 5G update
Investment in network innovation enabling efficient growth in data capacity
and first-to-market launch of 5G wireless broadband services
3
Early access 3.5GHz spectrum
auction process to begin in
March 2020. Will provide short-
term access until full spectrum
band is available late 2022.
Expect consultation on long-
term spectrum auction process
to continue through the second
half of 2020.
Long-term spectrum rights now
assumed to be auctioned in
early 2021.
Have already completed
substantial capacity upgrade
across Spark’s wireless
network.
Capital investment will remain
weighted towards mobile in
support of 5G roll-out.
Remain confident of ability to
fund roll-out within existing
capital envelope.
Network vendors selected in
line with multi-vendor
approach. Will provide
flexibility to take advantage
of ‘best-of-breed’
technologies.

Financial Performance
Financial Summary
EBITDAI of $500m, up $11m or 2.2% on prior year, benefiting from improved market momentum
across all key product lines.
Revenue up $70m or 4.0% on prior year. Substantial growth across total mobile revenues, up $31m
or 5.0%, and cloud, security and service management, up $24m or 12.3%, more than offsetting
moderated declines in voice and other managed services.
Operating expenses up $59m or 4.7% on prior year, including $29m of gross cost-out benefits
reinvested in support of both current and future revenue growth opportunities.
NPAT growth of $14m or 9.2%, primarily driven by:
•Increased EBITDAI of $11m or 2.2%; and
•Reduction in depreciation and amortisation of $11m or 4.5%; following end-of-life of several
software assets in H1 FY19; partially offset by
•Increase in finance expenses of $6m or 15.0% on higher average net debt.
Improvement in working capital performance with growth of $31m, a $50m improvement on
normalisedprior year
(1)
, due to expected unwind of FY19 receivables growth. However H1 FY20
free cash flow impacted, as expected, by phasing of capital expenditure and timing of tax
payments.
Net debt grew by $210m during H1 FY20; but is expected to reduce during H2 FY20 on improved
generation of free cash flow. Remain confident in ability to generate sufficient H2 FY20 free cash
flowto deliver full-year free cash flow of ~ $460m.
H1 FY20 dividend per share of 12.5c to be 75% imputed. Subject to no adverse change in
operating outlook maintain full year FY20 dividend guidance for a total dividend per share of 25.0c
at least 75% imputed.
+$11m
2.2%
EBITDAI
movement
vs. H1 FY19
+$14m
9.2%
NPAT
movement
vs. H1 FY19
Revenue momentum –created by successful delivery of our strategy –fuelling
EBITDAI and earnings growth
4
+$70m
4.0%
Revenue
movement
vs. H1 FY19
(1)
Six monthly payments were made to Chorus in H1 FY20 versus only five monthly payments in H1 FY19. If six monthly payments had been made to Chorus in H1 FY19 -
consistent with H1 FY20 -then H1 FY19 working capital would have increased by $81m rather than $38m as reported.

Financial Performance
Financials
H1 FY19
$m
H1 FY20
$m
CHANGE
Operating revenues1,7541,8244.0%
Operating expenses(1,265)(1,324)(4.7%)
EBITDAI4895002.2%
Finance income1818-
Finance expense(40)(46)(15.0%)
Depreciation and amortisation(245)(234)4.5%
Net investment income-(1)NM
Net earnings before tax expense2222376.8%
Tax expense(69)(70)(1.4%)
Net earnings after tax expense1531679.2%
Capital expenditure264247(6.4%)
Free cash flow
(1)
10850(53.7%)
EBITDAI margin27.9%27.4%(0.5pp)
Effective tax rate31.1%29.5%(1.6pp)
Capital expenditure to operating revenues15.1%13.5%(1.6pp)
Earnings per Share8.39.19.6%
Total Dividend per Share12.5c12.5c-
(1)
The calculation of free cash flow is defined within the ‘cash flows’ worksheet of the H1 FY20 detailed financials
5

1,754
1,824
1
22
9
24
17
19
4
(26)
1,720
1,740
1,760
1,780
1,800
1,820
1,840
H1 FY19VoiceBr oadb andMo bile serviceOther mobileCloud , secur ity & service managemen tProcu remen t & par tnersOther O perating RevenuesOther gainsH1 FY20
Revenue H1 FY19 vs H1 FY20 ($m)
+4.0%
Growth in high-margin mobile service
revenue due to successful monetisation of
mobile data –via adoption of ‘unlimited’
plans.
Cloud, security and service management
growth benefiting from further
penetration of cloud services and
onboarding of new contracts that were
delayed during FY19.
Moderation in rate of voice declines –in
line with expectation as voice becomes a
smaller part of the business.
Broadband market remains challenging –
albeit with revenue remaining stable
despite modest connection decline.
Other revenue benefiting from entry into
sports media via Spark Sport, IoT growth
and expansion of Qriousdata and
analytics business.
Overall Performance
Revenue
Positive revenue momentum now evident across all key products; benefiting
from improved speed to market, customer experience and product
performance
6
(1)
Other gains from sale of surplus equipment and other sundry divestments
H1 FY19
Voice
Broadband
Mobile
service
Other
mobile
Cloud,
security
and service
management
Procure-
ment
and
partners
Other
operating
Other
gains
(1)

Overall Performance
Operating Expenses
Benefits of cost management being successfully reinvested in support of
current and future revenue growth
$29m of cost-out delivered across product costs, labour
and other expenses including:
•Mobile product costs held in-line with prior year –
despite significant revenue growth; and
•Wireless broadband benefits more than offsetting
margin erosion from annual increases in input prices
for both fibre and copper.
Cost out benefits reinvested in support of:
•Revenue growth across established cloud, security,
service management and analytics offerings; and
•Entry into new markets including; sports media via
Spark Sport, IT consultancy via Leaven and emerging
technologies business Mattr.
Labour costs up $17m on prior year due to:
•Investment in support of revenue growth; and
•Increase in portion of labour costs that are expensed.
Following completion of large IT programs more
effort now spent on simplification and optimisation of
existing products, rather than building new capital
assets; partially offset by
•Reduction in labour costs associated with legacy
offerings.
Productivity and efficiency disciplines embedded into
core operations, in support of ongoing improvement in
EBITDAI margin.
7
1,265
1,324
72
21
(29)
(5)
1,200
1,250
1,300
1,350
H1 FY19Cost outInvestment in
support of
growth
Reduction in
lab our
cap ita lisa tion
Other
movements
H1 FY20
Operating Expenses H1 FY19 vs H1 FY20 ($m)
+4.7%

Overall Performance
Cost Management
Focus on cost leadership continues to drive operational discipline and create
capacity for targeted investments
8
Savings centred on a number of key areas:
•Further simplification of product offerings
such as introduction of ‘one number’
capability for wearables and cessation of
legacy data offers;
•Ongoing process automation including
digitisation of common customer journeys
to remove complexity and improve
experience;
•Further adoption of wireless broadband;
•Productivity gains through utilisation of new
network and IT system technologies; and
•Unlocking supply chain efficiencies via
commercial models and partnerships.
$29m of gross savings delivered in H1 FY20,
with further savings targeted for H2 FY20
Successful cost management hinges on a simple
but effective framework:
•Establish efficiency targets across every part
of the business;
•Ta k e a p r o g r a m m a t i c a p p r o a c h –operating
on a weekly cadence –to implementing the
actions required to deliver each
opportunity; and
•Build momentum by ensuring performance
against targets is visible.
Proven disciplines and delivery approaches
are embedded into our ‘way of operating’

Overall Performance
EBITDAI
Gross margin growth of $26m or 2.7%
attributable to:
•Mobile connection and ARPU growth;
•Cloud revenue growth;
•Ongoing benefits of wireless broadband
adoption; and
•Benefits of cost management activities.
Mobile, cloud, security and service
management now deliver 59.0% of Spark’s
gross margin, up from 49.8% in H1 FY17.
H1 FY20 EBITDAI margin of 27.4% down
0.5pp on prior year due to increase in
lower-margin procurement and mobile
non-service revenues and investment in
sport.
Remain on-track for full-year EBITDAI
margin target of at least 31%. H2 FY20
EBITDAI margin expansion expected to be
driven by:
•Continuation of revenue growth; and
•Ongoing focus on cost management
across the business.
EBITDAI growth driven by strong revenue and margin performance across all key
products
489
500
70
(59)
400
440
480
520
560
600
H1 FY19Operating revenue and
other gains
Operating expensesH1 FY20
+2.2%
EBITDAI H1 FY19 vs H1 FY20 ($m)
9

Secured ~90% of total market growth
(1)
in high-margin
service revenue during H1 FY20 –up $22m or 5.5% on prior
year driven by:
•Pay-monthly connection growth, up 62k;
•Further adoption of ‘unlimited’ plans –with the number
of ‘unlimited’ connections more than doubling YoY; and
•Implementation of new data propensity-to-buy models
to improve the effectiveness of customer offers.
Gross margin up $29m or 7.7% due to growth in service
revenues, combined with further migration away from
subsidised plans. Open-term plans now account for 99% of
consumer pay-monthly base.
Pay-monthly ARPU stabilised, for the first time in at least
three years, due to moderation in rate of business ARPU
declines. Competitive pricing pressure remains, however
headwinds created by migration off legacy business plans
to ‘shareable’ offerings is abating.
Product Performance
Mobile
Market-leading revenue growth the result of excelling across all aspects of mobile
proposition
(1)
Market estimates sourced from IDC -exclude wholesale mobile revenues
10
64%
62%
60%
36%
38%
40%
0%
50%
100%
Dec 17Dec 18Dec 19
Consumer pay-monthly plan mix
Less than $55$55 or greater
As a result of H1 FY20 growth momentum we have
increased our full-year mobile service revenue growth target
from 2-3% to 4-5%.
0%
2%
4%
6%
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
Percentage growth in mobile service revenue versus
prior year
(1)
Rest of Market growthSpark growth

Product Performance
Broadband
Continued gross margin improvement, despite connection share loss, in a
highly competitive and saturated market
(1)
Mixed results in achieving dual focus of margin growth
and holding market share:
•Gross margin growth, up $7m or 4.2% on prior year,
underpinned by ongoing benefits of wireless
broadband adoption;
•Rate of wireless broadband growth moderated
during H1 FY20,due to planned slow-down in sales
activity before and during the RWC; and
•3k decline in connections during H1 FY20 reflective
of the challenges of competing in a highly
commoditised market.
Customer demand for more data continues to drive
ARPU growth, with unlimited and ‘unplan’ broadband
plans now accounting for 70% of the broadband base –
up 10pp on prior year.
(1)
Market size and growth estimates sourced from IDC
55%
42%
30%
0%
20 %
40 %
60 %
80 %
10 0%
Dec 17Dec 18Dec 19
Connection mix by input type
CopperFi br eWireless broadband
45%58%70%
11
Share of market connections and rate of wireless
broadband growth expected to benefit from new higher
data offerings during H2 FY20. However, we have
revised full-year wireless broadband connection growth
target down from +30k to +20k.
53%
60%
70%
0%
20 %
40 %
60 %
80 %
10 0%
Dec 17Dec 18Dec 19
Connection mix by data plan
Unlimited and UnplanCapped data

Revenue growth of $24m or 12.3% fuelled by:
•Further penetration of core cloud services and ongoing
shift of customers to more flexible and future-proofed
cloud-based IT models; and
•Customer transitions that were delayed during FY19.
Increase in contribution margin
(1)
of $3m, or 4.2%, albeit
at a slower rate than revenue growth due to shift in
customer demand towards more labour intensive and
lower-margin service management offerings.
Fundamental drivers of revenue growth continue to be:
•Helping accelerate adoption of cloud and associated
services for those businesses who have already made
some movement towards cloud-based IT models; and
•Organic pipeline of sales opportunities for those two
thirds of businesses who have yet to transition to
cloud-based services.
Product Performance
Cloud, security and service management
Ongoing penetration of cloud services continues to underpin revenue growth,
with H1 FY20 also benefiting from completion of previously delayed customer
transitions
(1)
Contribution margin is defined as reported gross margin less labour and other costs that are directly attributable to the implementation and ongoing support of specific
contract services
12
179
195
219
50
100
150
200
250
H1 FY18H1 FY19H1 FY20
Cloud, security and service management revenue
($m)
Continue to expect full year revenue growth of 8-10%

Product Performance
Voice and other managed services
Significant moderation in the rate of voice and other managed service revenue
decline
Absolute decline in voice and other managed
services revenue of $26m significantly improved on
prior year decline of $51m due to:
•Return of voice connection declines to more
normalised levels after a period of wholesale
customer migration;
•Decline in total calling minutes due to connection
loss and substitution; and
•Return of managed data and networks revenue to
modest growth –as substantial portion of base
has now migrated onto new lower-margin fibre-
based alternatives.
Impact of revenue declines on gross margin partially
offset by migration of customers to better
performing, higher-margin managed data services
such as software defined wide-area-networks
(SDWAN).
13
267
225
199
100
200
300
H1 FY18H1 FY19H1 FY20
Total voice revenue by customer segment ($m)
ConsumerBusinessWholesale and other
Now expect voice revenues to decline by ~12%,
rather than between 12% and 15%, due to return of
connection declines to more normalised levels
130
121 121
100
200
H1 FY18H1 FY19H1 FY20
Total other managed services revenue ($m)
Managed data and networksVideoconferencing

Overall Performance
Capital Expenditure
$17m reduction in spend on prior year. Consistent with targeted reduction in
full-year capital envelope of ~$47m, from $417m to ~$370m
(1)
Mobile network investment in support of increased
capacity and initial roll-out of 5G wireless services in
heartland New Zealand.
Underlying reduction in IT systems investment -in-
line with expected reduction in the amount of labour
spend incurred in relation to systems development -
offset during H1 FY20 by timing of software license
purchases.
Increase in core network infrastructure includes
establishment of content delivery networks in the
lead up to the RWC and investment in optical
transport capacity and resiliency.
Investment in multi-year Converged Communications
Network (CCN) programme continues –albeit with
peak-funding period having now passed.
Reduction in international cable construction and
capacity investment due to timing of capacity
demand.
Capitalexpenditure ($m)
H1
FY19
H1
FY20
Mobile network
(2)
8992
IT systems7073
Core network infrastructure3650
Cloud2616
Converged Communications Network (CCN)2011
International cable construction and capacity
(3)
11-
Other
(4)
125
Total capital expenditure264247
Total capital expenditure to operating revenue 15.1%13.5%
14
(1)
Excluding expenditure on mobile spectrum
(2)
Mobile includes investment in standalone mobile assets including capacity in support of wireless broadband
(3)
International cable includes capacity purchases on Southern Cross cable and investment in Tasman Global Access cable
(4)
Reductions in other investments due to completion of IOT LoRAWAN network, Lightbox platform redevelopment; and retail store fit-out programme

$667m
60%
Remain confident in ability to generate sufficient H2 FY20 free cash flow to
deliver full-year free cash flow of ~ $460m; reliant on three key outcomes
15
CapitalManagement
Free cash flow
(1)
Subject to no adverse change in operating outlook
(2)
Six monthly payments were made to Chorus in H1 FY20 versus only five monthly payments in H1 FY19. If six monthly payments had been made to Chorus in H1 FY19 -
consistent with H1 FY20 -then H1 FY19 working capital would have increased by $81m rather than $38m as reported.
Working capital grows by no
more than $50m during FY20
Expect full year working capital
growth to be a maximum of
~$50m –an improvement of at
least $87m on prior year.
H1 FY20 working capital growth
of $31m was a $50m
improvement on normalisedprior
year growth
(2)
, due to expected
unwind of FY19 receivables
growth.
FY20 capital expenditure is in-
line with guidance at ~$370m
Spend historically weighted
towards H1:
•To e n s u r e c a p a c i t y i n c r e a s e s
are provisioned ahead of
seasonal peaks in customer
demand; and
•Due to larger number of
working days in H1 –with
volume of capitalisablework
subsequently higher in H1 than
H2.
H2 FY20 payments for capital
assets will be lower than in H1
FY20 due to completion of larger
network and physical
infrastructure investments
FY20 EBITDAI growth is within
guidance
Full year EBITDAI guidance is for
growth of between $10m and
$30m
(1)
.
Achieved H1 FY20 EBITDAI
growth of $11m.
1
23

Capital Management
Net debt
(1)
$667m
60%
Net debt grew by $210m during H1 FY20 but is expectedto reduce during
H2 FY20, due to improvement in free cash flow generation as heavy H1
investment abates
(1)
Net debt at hedged rates as reported in note 6 of Spark’s FY20 Interim Financial Statements
16
Expenditure on business acquisitions and
minority investments largely driven by:
•Acquisition of Now Consulting; and
•Equity contributions towards construction
of the Southern Cross Next cable.
Proceeds from asset sales relates to receipt of
funds from sale of surplus mobile network
equipment that occurred in FY19.
Net debt expected to reduce during H2 FY20
due to:
•Seasonal improvement in EBITDAI;
•Planned reductions in capital investment;
and
•Proceeds from recently completed asset
sales.
1,316
1,526
50
229
41
13
3
1,250
1,300
1,350
1,400
1,450
1,500
1,550
Net debt as
at 30 June
2019
Free cash
flow
Div idend s
paid
Business
acquisitions
and m inority
inve stme nts
Pr oc eeds
fr om asse t
sales
Other
mo vem ents
Net debt as
at 31
De cem ber
2019
Movement in net debt during H1 FY20 ($m)

(1)
Subject to no adverse change in operating outlook
(2)
Includes purchase of property, plant and equipment, intangible assets and capacity (including Southern Cross) but excludes spectrum purchases and leased customer equipment
assets
FY20 Outlook
Guidance
(1)
FY19 ActualFY20 Guidance
(1)
Change to previous
FY20 Guidance
EBITDAI
$1,090m
$1,100m to $1,120m-
Capital
expenditure
(2)
$417m
~$370m-
Dividend per
share
Ordinary 22.0c
(75% imputed)
Special 3.0c
(75% imputed)
Ordinary 25.0c
at least 75% imputed
-
17
FY20 guidance unchanged

FY20 Outlook
Indicators of Success
18
(1)
Consumer and business segments only
(2)
Measured as school aged children 5-18 years who participate in one of the Spark Foundation’s digital inclusion or skills and capability programmes including JUMP, Digital Native
Academy, Code Club, The Electric Garden and Like a Boss
MeasuresTarget
30 June 2020
StatusRevised Target
30 June 2020
Build customer
intimacy
Consumer and small business iNPS8 pointliftAhead
Growth in mobile and broadband change
transactions completed online
30%Ahead
Create a wireless
future
Go-live of 5G for America’s Cup (subject to
spectrum)
Ready for July 2020 launchOn Track
Preparation for commercial launch of 5G (subject to
spectrum)
5G sites deployed to targeted
geographical locations
Launched
Growth in wireless broadband connections+30kTarget Revised+20k
Create New
Zealand’s premier
sports streaming
experience
Rugby World Cup tournament
Successfully deliver the RWC
tournament with platform
availability of 99.9%
Delivered platform
availability of 99.8%
Grow key markets
Mobile service revenue growth
(1)
2% to 3%Target Revised4% to 5%
Cloud, security and service management revenue
growth
8% to 10%On Track
Growth in number of connected IOT devices60%Ahead
Launch progressive roll-out of new concept Spark
retail stores
By end of September 2019Completed
Mature Agile
leadership
Percentage of Agile squads at or above level 385%Progressing
Deliver best cost
EBITDAI marginAt least 31%On Track
Lead on sustainability
Transition to integrated reportingFor FY20 annual reportOn Track
Number of school students participating in one of
the Spark Foundation’s programmes
(2)
10kOn Track

Disclaimer
This announcement may include forward-looking statements regarding future events and the future
financial performance of Spark New Zealand. Such forward-looking statements are based on the beliefs of
and assumptions made by management along with information currently available at the time such
statements were made.
These forward-looking statements may be identified by words such as ‘guidance’, ‘anticipate’, ‘believe’,
‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘plan’, ‘may’, ‘could’, ‘ambition’, ‘aspiration’ and similar expressions.
Any statements in this announcement that are not historical facts are forward-looking statements. These
forward-looking statements are not guarantees or predictions of future performance, and involve known
and unknown risks, uncertainties and other factors, many of which are beyond Spark New Zealand’s
control, and which may cause actual results to differ materially from those projected in the forward-
looking statements contained in this announcement.
Factors that could cause actual results or performance to differ materially from those expressed or
implied in the forward-looking statements are discussed herein and also include Spark New Zealand's
anticipated growth strategies, Spark New Zealand's future results of operations and financial condition,
economic conditions and the regulatory environment in New Zealand, competition in the markets in
which Spark New Zealand operates, risks related to the sharing arrangements with Chorus, other factors
or trends affecting the telecommunications industry generally and Spark New Zealand’s financial
condition in particular and risks detailed in Spark New Zealand's filings with NZX and ASX. Except as
required by law or the listing rules of the stock exchanges on which Spark New Zealand is listed, Spark
New Zealand undertakes no obligation to update any forward-looking statements whether as a result of
new information, future events or otherwise.
19

---

Spark New Zealand
Group result - reported
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m
%
Operating revenues and other gains1,7611,7721,7541,7791,824704.0%
Operating expenses(1,305)(1,247)(1,265)(1,178)(1,324)(59)(4.7%)
EBITDAI456525489601500112.2%
Finance income1619181918--%
Finance expense(37)(40)(40)(45)(46)(6)(15.0%)
Depreciation and amortisation expense(237)(244)(245)(232)(234)114.5%
Net investment income2720-14(1)(1)NM
Net earnings before income tax225280222357237156.8%
Tax expense(63)(77)(69)(101)(70)(1)(1.4%)
Net earnings for the period162203153256167149.2%
Capital expenditure262151264153247(17)(6.4%)
Free cash flows
15514410818450(58)(53.7%)
Reported EBITDAI margin25.9%29.6%27.9%33.8%27.4%(0.5%)(1.8%)
Reported effective tax rate28.0%27.5%31.1%28.3%29.5%(1.6%)(5.1%)
Capital expenditure to operating revenues14.9%8.5%15.1%8.6%13.5%(1.6%)(10.6%)
Reported basic and diluted earnings per share (cents)8.811.18.314.09.10.89.6%
Group result - adjusted
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m
%
Operating revenues and other gains1,7611,7721,7541,7791,824704.0%
Adjusted operating expenses(1,292)(1,211)(1,265)(1,178)(1,324)(59)(4.7%)
Adjusted EBITDAI469561489601500112.2%
Finance income1619181918--%
Finance expense(37)(40)(40)(45)(46)(6)(15.0%)
Depreciation and amortisation expense(237)(244)(245)(232)(234)114.5%
Net investment income2720-14(1)(1)NM
Adjusted net earnings before income tax238316222357237156.8%
Adjusted tax expense(67)(87)(69)(101)(70)(1)(1.4%)
Adjusted net earnings for the period171229153256167149.2%
Adjusted EBITDAI margin26.6%31.7%27.9%33.8%27.4%(0.5%)(1.8%)
Adjusted effective tax rate28.2%27.5%31.1%28.3%29.5%(1.6%)(5.1%)
Adjusted basic and diluted earnings per share (cents)9.312.58.314.09.10.89.6%
H1 FY19 v H1 FY20
Spark presents adjusted EBITDAI and adjusted net earnings when the year includes significant items greater than $25 million.
There were no adjusting items in FY19 and H1 FY20. FY18 included $49 million of costs of change and adjusted EBITDAI and
adjusted net earnings are as follows:
H1 FY19 v H1 FY20
The tax effect on costs of change in H1 FY18 is $4m and in H2 FY18 is $10m.

Spark New Zealand
Gross margin by product
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m
%
Mobile356376376399405
297.7%
Voice176163143139124
(19)(13.3%)
Broadband158157168176175
74.2%
Cloud, security and service management152163163164176
138.0%
Procurement and partners1723182521
316.7%
Other managed services6774666665
(1)(1.5%)
Other product2524252615
(10)(40.0%)
Total product gross margin951980959995981
222.3%
Other gains-10-154
4NM
Total gross margin9519909591,010985
262.7%
Connections
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
000's000's000's000's000's000's
%
Mobile connections2,4372,4582,4642,5152,500361.5%
Voice connections by type
1
POTS & ISDN491400356329288(68)(19.1%)
VoIP4752576266915.8%
Voice over wireless1414182626844.4%
552466431417380(51)(11.8%)
Broadband connections
Copper384346296249211(85)(28.7%)
Fibre2062382733063406724.5%
Wireless104116129140141129.3%
694700698695692(6)(0.9%)
Group FTE's
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20#
%
FTE permanent5,3845,2665,1075,1095,119120.2%
FTE contractors 230241212167200(12)(5.7%)
Total FTE5,6145,5075,3195,2765,319--%
Dividends
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20$
%
Ordinary dividends (cents per share)11.0011.0011.0011.0012.501.5013.6%
Special dividends (cents per share)1.501.501.501.50-(1.50)(100.0%)
12.5012.5012.5012.5012.50--%
1
Voice connections include all voice technology types, including POTS, ISDN, VoIP and wireless voice. Voice connections
exclude connections where Spark also provide a bundled broadband service, but include all wholesale voice connections
(including those where the underlying customer has a bundled broadband service).
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20

Spark New Zealand
Group operating revenues and other gains
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m
%
Operating revenues
Mobile
Service revenue395400403413425225.5%
Non-service revenue21822421923622894.1%
613624622649653315.0%
Voice
Access13612410910597(12)(11.0%)
Calling9895878379(8)(9.2%)
Other voice revenue3332292823(6)(20.7%)
267251225216199(26)(11.6%)
Broadband33133434434134510.3%
Cloud, security and service management1791911952052192412.3%
Procurement and partners184173191174208178.9%
Other managed services130132121121121--%
Other operating revenue57575658751933.9%
Total operating revenues1,7611,7621,7541,7641,820663.8%
Other gains-10-1544NM
Total operating revenues and other gains1,7611,7721,7541,7791,824704.0%
Operating revenues includes revenues from Consumer, Business, Wholesale and other customer segments.
Wireless broadband revenues and connections are included in broadband revenues and connections.
Operating revenues and other gains by customer segment
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
Operating revenues and other gains$m$m$m$m$m$m
%
Consumer786787790815825354.4%
Business866866867857913465.3%
Wholesale and other128142118130112(6)(5.1%)
Eliminations(19)(23)(21)(23)(26)(5)(23.8%)
1,7611,7721,7541,7791,824704.0%
Finance income
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
Finance income$m$m$m$m$m$m
%
Finance lease interest income77777--%
Other interest income912111211--%
1619181918--%
Net investment income
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
Net investment income$m$m$m$m$m$m
%
Dividend income2822-15--NM
Share of associates' and joint ventures' net losses(1)(2)-(1)(1)(1)NM
2720-14(1)(1)NM
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20

Spark New Zealand
Revenue classification changes
Product nameServices providedPrevious categoryNew category
VideoconferencingVoiceOther managed services
As part of the ongoing revision of the Agile business model, the management of certain product lines have been reallocated
from one part of the business to another. The details of the key changes and the associated impact on revenue reporting
are as follows:
Provision of videoconferencing and
other collaboration services over an IT
based platform

Spark New Zealand
Group operating expenses
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m
%
Product costs
Mobile25724824625024820.8%
Voice9188827775(7)(8.5%)
Broadband173177176165170(6)(3.4%)
Cloud, security and service management27283241431134.4%
Procurement and partners167150173149187148.1%
Other managed services635855555611.8%
Other product costs32333132602993.5%
810782795769839445.5%
Labour276237250225267176.8%
Other operating expenses
Network support costs3131372435(2)(5.4%)
Computer costs414346474936.5%
Accommodation costs3229373033(4)(10.8%)
Advertising, promotions and communication5133474047--%
Bad debts79667116.7%
Impairment expense165(2)-(5)(100.0%)
Costs of change1336----NM
Other4341423947511.9%
219228220184218(2)(0.9%)
Total operating expenses1,3051,2471,2651,1781,324594.7%
Finance expense
Finance expense on debt2528273231414.8%
Other interest and finance expense----11NM
Lease interest expense1514151515--%
Leased customer equipment interest expense12223150.0%
4144444950613.6%
Capitalised interest(4)(4)(4)(4)(4)--%
3740404546615.0%
Depreciation and amortisation expense
Depreciation - property, plant and equipment129134128118119(9)(7.0%)
Depreciation - right-of-use assets2426253128312.0%
Depreciation - leased customer equipment assets889915666.7%
Amortisation of intangibles7676837472(11)(13.3%)
237244245232234(11)(4.5%)
Adjusted operating expenses
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m
%
Total operating expenses1,3051,2471,2651,1781,324594.7%
Less: costs of change(13)(36)----NM
Adjusted operating expenses1,2921,2111,2651,1781,324594.7%
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20

Spark New Zealand
Analysis & KPI's - Mobile
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
Mobile revenue by type (Consumer and Business)$m$m$m$m$m$m
%
Mobile service revenue388395398409421235.8%
Mobile non-service revenue
1
208210206224216104.9%
596605604633637335.5%
1719181616(2)(11.1%)
Total mobile revenue613624622649653315.0%
Mobile product costs
3
(257)(248)(246)(250)(248)(2)(0.8%)
Mobile gross margin356376376399405297.7%
Mobile gross margin %58.1%60.3%60.5%61.5%62.0%1.5%2.5%
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
Total mobile revenue by customer segment$m$m$m$m$m$m
%
Consumer397409410443443338.0%
Business199196194190194--%
Wholesale and other1719181616(2)(11.1%)
613624622649653315.0%
Average revenue per user (ARPU) - 6 month active
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
Consumer and Business
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month%
Total ARPU27.5827.2527.5627.5728.480.92 3.3%
Pay-monthly ARPU44.2943.3142.8242.4342.82(0.00)(0.0%)
Prepaid ARPU12.2012.1312.2912.6613.280.99 8.1%
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
000's000's000's000's000's000's
%
Pay-monthly connections1,1581,1891,2251,2511,287625.1%
Prepaid connections1,2451,2361,2061,2321,181(25)(2.1%)
Internal connections44444--%
Total mobile connections2,4072,4292,4352,4872,472371.5%
1
Mobile non-service revenue includes handset sales and mobile interconnect.
2
Includes MVNO revenue.
3
Includes handset, interconnect and cellphone tower access costs.
H1 FY19 v H1 FY20
Wholesale and other customer segment mobile
revenue
2
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20
Number of mobile connections at period end - 6
month active - Consumer and Business
H1 FY19 v H1 FY20

Spark New Zealand
Analysis & KPI's - Voice
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
Revenue by type$m$m$m$m$m$m%
Access13612410910597(12)(11.0%)
Calling9895878379(8)(9.2%)
Other voice revenue3332292823(6)(20.7%)
Total voice revenue267251225216199(26)(11.6%)
Voice product costs
1
(91)(88)(82)(77)(75)78.5%
Voice gross margin176163143139124(19)(13.3%)
Voice gross margin %65.9%64.9%63.6%64.4%62.3%(1.3%)(2.0%)
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
000's000's000's000's000's000's%
POTS and ISDN491400356329288(68)(19.1%)
VoIP4752576266915.8%
Voice over wireless1414182626844.4%
Total voice connections552466431417380(51)(11.8%)
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
000's000's000's000's000's000's%
Consumer11810810410393(11)(10.6%)
Business185180177178173(4)(2.3%)
Wholesale and other249178150136114(36)(24.0%)
Total voice connections552466431417380(51)(11.8%)
1
Includes voice access (baseband), interconnect, and international calling costs.
Analysis & KPI's - Broadband
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m%
Total broadband revenue33133434434134510.3%
Broadband product costs
2
(173)(177)(176)(165)(170)63.4%
Broadband gross margin15815716817617574.2%
Broadband gross margin %47.7%47.0%48.8%51.6%50.7%1.9%3.9%
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
000's000's000's000's000's000's%
Copper384346296249211(85)(28.7%)
Fibre2062382733063406724.5%
Wireless104116129140141129.3%
Total broadband connections694700698695692(6)(0.9%)
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
000's000's000's000's000's000's%
Consumer601604598593587(11)(1.8%)
Business9295989910022.0%
Wholesale and other112353NM
Total broadband connections694700698695692(6)(0.9%)
2
Includes broadband access (UBA/UCLL/Fibre), modem and e-mail platform support costs.
Broadband connections by technology
H1 FY19 v H1 FY20
Broadband connections by segment
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20
Voice connections by type
H1 FY19 v H1 FY20
Voice connections by customer segment
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20

Spark New Zealand
Analysis & KPI's - Cloud, Security and Service management
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m%
Cloud, Security and Service management revenue1791911952052192412.3%
Cloud, Security and Service management product costs(27)(28)(32)(41)(43)(11)(34.4%)
Cloud, Security and Service management gross margin152163163164176138.0%
Cloud, Security and Service management gross margin %84.9%85.3%83.6%80.0%80.4%(3.2%)(3.8%)
Contribution margin (approximated) %
1
36.9%46.6%36.9%42.0%34.2%(2.7%)(7.3%)
Analysis & KPI's - Procurement and Partners
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m%
Procurement and partners revenue184173191174208178.9%
Procurement and partners product costs(167)(150)(173)(149)(187)(14)(8.1%)
Procurement and partners gross margin1723182521316.7%
Procurement and partners gross margin %9.2%13.3%9.4%14.4%10.1%0.7%7.4%
Analysis & KPI's - Other managed services
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m%
Videoconferencing2629252024(1)(4.0%)
Managed data and networks104103961019711.0%
Other managed services revenue130132121121121--%
Other managed services product costs
2
(63)(58)(55)(55)(56)(1)(1.8%)
Other managed services gross margin6774666665(1)(1.5%)
Other managed services gross margin %51.5%56.1%54.5%54.5%53.7%(0.8%)(1.5%)
2
Includes wide area network access, international data, network backhaul and videoconferencing platform costs.
H1 FY19 v H1 FY20
1
Contribution margin is defined as reported gross margin less labour and other costs that are directly attributable to the
implementation and ongoing support of specific contract services.
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20

Spark New Zealand
Statement of cash flows
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m%
Cash flows from operating activities
Cash received from customers 1,768 1,721 1,770 1,654 1,861 915.1%
Interest receipts 16 18 18 17 17 (1)(5.6%)
Dividend receipts 7 43 - 15 - -NM
Payments to suppliers and employees (1,266) (1,252) (1,314) (1,169) (1,396)(82)(6.2%)
Payments for income tax (70) (97) (44) (91) (82)(38)(86.4%)
Payments for interest on debt (14) (23) (22) (23) (26)(4)(18.2%)
Payments for interest on leases (14) (14) (13) (17) (14)(1)(7.7%)
Payments for interest on leased customer equipment
assets
(1) (2) (2) (2) (3)(1)(50.0%)
Net cash flows from operating activities 426 394 393 384 357 (36)(9.2%)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment - 1 - 1 13 13NM
Proceeds from sale of business - 8 - - - -NM
Proceeds from long-term investments - - - 2 - -NM
Payments for purchase of businesses (46) (5) - - (11)(11)NM
Payments for, and advances to, long-term investments (6) (14) (6) - (30)(24)NM
Payments for purchase of property, plant and
equipment and intangibles
(236) (178) (258) (157) (273)(15)(5.8%)
Payments for capitalised interest (4) (4) (3) (5) (4)(1)(33.3%)
Net cash flows from investing activities (292) (192) (267) (159) (305)(38)(14.2%)
Cash flows from financing activities
Net proceeds from debt 184 (10) 182 (28) 207 2513.7%
Receipts from finance leases 2 3 3 3 2 (1)(33.3%)
Payments for dividends (229) (229) (229) (230) (229)--%
Payments for leases (18) (19) (19) (17) (19)--%
Payments for leased customer equipment assets (8) (9) (8) (9) (13)(5)(62.5%)
Net cash flows from financing activities (69) (264) (71) (281) (52)1926.8%
Net cash flow 65 (62) 55 (56) -
(55)(100.0%)
Opening cash position 52 117 55 110 54 (1)(1.8%)
Closing cash position 117 55 110 54 54
(56)(50.9%)
H1 FY19 v H1 FY20

Spark New Zealand
Analysis & KPIs - Free cash flows
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m%
Net cash flows from operating activities426 394 393 384 357 (36)(9.2%)
Payments for purchase of property, plant and
equipment and intangibles
(236) (178) (258) (157) (273) (15)(5.8%)
Payments for capitalised interest(4) (4) (3) (5) (4) (1)(33.3%)
Payments for leases(18) (19) (19) (17) (19) --%
Payments for leased customer equipment assets(8) (9) (8) (9) (13) (5)(62.5%)
Receipts from finance leases2 3 3 3 2 (1)(33.3%)
excluding
Dividend receipts(7) (43) - (15) - -NM
Increase/(decrease) in working capital(45) 52 38 99 31 (7)(18.4%)
Underlying free cash flow110 196 146 283 81 (65)(44.5%)
including
(Increase)/decrease in working capital45 (52) (38) (99) (31) 718.4%
Free cashflow155 144 108 184 50 (58)(53.7%)
Analysis & KPIs - Movement in working capital
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m%
EBITDAI 456 525 489 601 500 112.2%
excluding
Impairments (1) (6) (5) 2 - 5100.0%
Other gains - 10 - 15 4 4NM
EBITDAI excluding impairments and other gains457 521 494 584 496 20.4%
Net cash flows from operating activities 426 394 393 384 357 (36)(9.2%)
excluding
Interest receipts 16 18 18 17 17 (1)(5.6%)
Dividend receipts 7 43 - 15 - -NM
Payments for income tax (70) (97) (44) (91) (82)(38)(86.4%)
Payments for interest on debt (14) (23) (22) (23) (26)(4)(18.2%)
Payments for interest on leases (14) (14) (13) (17) (14)(1)(7.7%)
Payments for interest on leased customer equipment
assets
(1) (2) (2) (2) (3)(1)(50.0%)
Net cash flows from operating activities excluding
dividends, tax and net interest
502 469 456 485 465 92.0%
EBITDAI excluding impairments and other gains 457 521 494 584 496 20.4%
less
Net cash flows from operating activities excluding
dividends, tax and net interest
502 469 456 485 465 92.0%
Increase/(decrease) in working capital(45) 52 38 99 31 (7)(18.4%)
Cash conversion110%90%92%83%94%1%1.6%
H1 FY19 v H1 FY20
H1 FY19 v H1 FY20

Spark New Zealand
Group capital expenditure
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m
%
Cloud1920261016
(10)(38.5%)
Converged Communications Network (CCN)1715201111
(9)(45.0%)
International cable construction and capacity purchases 14-111-(11)(100.0%)
IT systems6449706273
34.3%
Mobile network8926892992
33.4%
Core network infrastructure3824362750
1438.9%
Other211712135
(7)(58.3%)
Total capital expenditure262151264153247(17)(6.4%)
Analysis & KPI's - Capital expenditure depreciation and amortisation
H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20
$m$m$m$m$m$m
%
Depreciation - property, plant and equipment129134128118119
(9)(7.0%)
Depreciation - right-of-use assets
1
101091310
111.1%
Amortisation of intangibles7676837472(11)(13.3%)
Total capital expenditure depreciation and amortisation215220220205201(19)(8.6%)
1
Includes depreciation on capacity right-of-use assets only as these are included within Spark’s definition of capital expenditure.
H1 FY19 v H1 FY20
Capital expenditure is presented on an accruals basis, and includes purchase of property, plant and equipment and intangible
assets, capacity purchases (including Southern Cross) but excludes leased customer equipment assets.
On adoption of NZ IFRS 16 Leases, assets associated with capacity arrangements which were previously
recognised within intangible assets have been reclassified to right-of-use assets. Payments for capacity
purchases remain within Spark’s definition of capital expenditure. Total depreciation on property plant
and equipment, depreciation on capacity right-of-use assets and amortisation of intangibles is reconciled
H1 FY19 v H1 FY20