Chorus Half Year Results

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

STOCK EXCHANGE ANNOUNCEMENT
24 February 2020
Chorus 2020 half year result
The following are attached in relation to Chorus’ half year result for the period to
31 December 2019:
1.Media Release
2.Investor Presentation
3.Letter to investors
4.Management Commentary and Financial Statements (including auditor review
report)
5.NZX Results Announcement
6.NZX Distribution Notice
Chief Executive Officer JB Rousselot and Chief Financial Officer David Collins will
discuss the half year result by webcast at 10.00am New Zealand time today. The
webcast will be available at www.chorus.co.nz/webcast.
ENDS
For further information:
Steve Pettigrew
Head of External Communications
Mobile +64 (27) 258 6257
Email: steve.pettigrew@chorus.co.nz
Brett Jackson
Investor Relations Manager
Phone: +64 4 896 4039
Mobile: +64 (27) 488 7808
Email: brett.jackson@chorus.co.nz

---

24 February 2020
Chorus increases EBITDA guidance following strong half
FY20 half year result by the numbers
• Net profit after tax $31m (HY19: $30m)
• EBITDA $332m (HY19: $318m)
• Operating revenue of $483m (HY19: $489m)
• Interim dividend of 10 cents per share
• EBITDA guidance range increased to $640 to $655 million
• 99,000 fibre installations since 30 June 2019
• 13% of fibre connections on 1 gigabit plans
Chorus has today reported a net profit after tax (NPAT) of $31m and earnings before
interest, tax, depreciation and amortisation (EBITDA) of $332m for the half year ending 31
December 2019. The growth in EBITDA was achieved through a combination of operating
cost reductions and strong broadband connections growth.
Operating revenue for the period was $483m (HY19: $489m) and operating expenses were
$151m (HY19: $171m).
Depreciation and amortisation for the period was $198m (HY19: $196m), delivering earnings
before interest and tax (EBIT) of $134m (HY19: $122m).
Chorus’ fibre build draws to a close
Chorus CEO JB Rousselot said last year’s completion of the first phase of the Ultra-Fast
Broadband (UFB) rollout marks the beginning of the wind-down of Chorus’ communal fibre
build programme.
“In November we celebrated the completion of our nine-year contract with the Government
in bringing fibre to 28 towns and cities. The contract was delivered on-time and on-budget
and is a textbook case study of how a public-private partnership can work well in delivering
a cost-effective outcome for taxpayers.”
“The second phase of our fibre build, UFB2, is already about 40 percent complete and there
are now just 150,000 premises remaining to be passed by December 2022.”
Connecting to fibre remains the focus
With fibre now available to about 1.2 million homes and businesses in Chorus build areas,
Chorus’ focus remains firmly on connecting as many customers as possible. Simple
residential fibre installations are currently free.

“The number of disconnections from our fixed line network slowed markedly in the first six
months. However, mobile network operators continue promoting their own fixed wireless
services as an alternative, and we remain concerned that ‘the pending shutdown of copper’
is still incorrectly cited to customers as a reason to move.”
“As we’ve previously said, customers should be clear that we have not announced any
timeline for switching off our copper network. If we decide to do so in the future, we’ll
communicate it well ahead of time and it would be on a street-by-street basis only where
fibre is available as an alternative.”
Gigabit fibre becoming the norm
In January the average household data usage on Chorus’ fibre network was 372 gigabytes,
up from 342 in June. Customers are increasingly conscious of the limitations of broadband
plans with capped data allowances.
“With streaming services like Disney+ increasingly making ultra-high definition, or 4K,
content available to customers at no additional cost and online gaming without a console or
downloads on the horizon, we expect bandwidth demand to step up yet again.
“Our market-led focus on encouraging the uptake of gigabit broadband plans is changing the
perception of what stress-free broadband looks like. Now everyone can be streaming online
TV simultaneously without the worry of buffering or a data cap being breached.
“Already 13 percent of our fibre customers – up three percentage points in the last six
months – have opted for a gigabit plan. Comparison sites, like broadbandcompare.co.nz,
are highlighting providers who now offer gigabit plans at prices comparable to earlier
100Mbps plans.
In November, Chorus ushered in a new era of high-capacity fibre broadband set to meet the
future demands of New Zealand’s creativity, innovation and efficiency.
“Our Hyperfibre service offers customers 2Gbps or 4Gbps symmetric speeds that will make
big differences for businesses that transfer large amounts of data, work in the cloud or rely
on instantaneous communication.”
Regulation
In November, the Commerce Commission released its draft decision on the input
methodologies that will apply to Chorus’ fibre access network from January 2022.
“We thank the Commission for the considerable work that has gone into the draft decision
and welcome this step towards establishing a utility style framework for New Zealand’s key
communications infrastructure.
“At the heart of our submissions is the belief that incentive-based regulation should enable
the continued delivery of high quality, innovative services for consumers and fair returns for
investors.

“The final shape of the new regime will send important signals regarding the regulatory
treatment of infrastructure investment in New Zealand. This is at a time when there is a
major infrastructure deficit. If New Zealand wants to attract private investors to fund some
of this deficit, investors need to know they will be able to earn an appropriate return if they
navigate the considerable risks.”
Outlook
With the UFB rollout coming to an end, we’ll be doing even more to encourage fibre uptake.
Our progress on optimising our business and reducing costs, together with broadband
connection performance, has given us the confidence to increase FY20 EBITDA guidance to a
new range of $640 million to $655 million, from a prior range of $625 million to $645
million.
Reducing capital expenditure requirements and the strong first half mean we have decided
to remove the discount previously offered on the dividend reinvestment plan.
Dividend guidance for FY20 is unchanged at 24 cents per share, subject to no material
adverse changes in circumstances or outlook.
The Board said it recognises that investors have had constrained returns through the decade
long fibre investment cycle and, from FY22 expects to transition to a dividend policy based
on a pay-out range of free cash flow.
FY20 guidance
• EBITDA guidance range increased to $640 - $655 million
• Gross capex guidance unchanged at $660 - $700 million
• Fibre connections & layer 2 capex increased to $295 - $315 million

ENDS
Chorus Chief Executive, JB Rousselot, and Chief Financial Officer, David Collins, will discuss
the half year results at a briefing in Wellington from 10.00am (NZ time). The webcast will be
available at www.chorus.co.nz/webcast.

For further information:
Brett Jackson
Investor Relations Manager
p: +64 4 896 4039 | m: +64 (27) 488 7808 | e. brett.jackson@chorus.co.nz
Steve Pettigrew
Head of External Communications
m: +64 (27) 258 6257 | e: steve.pettigrew@chorus.co.nz

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A
s we marked the end of
UFB1, we bade farewell
to Kate McKenzie and
welcomed JB Rousselot
as our new chief
executive. He previously
held senior positions at
the Australian equivalent
of Chorus, NBN Co,
where he had been
Chief Strategy Officer
and oversaw network
and service operations.
JB has a great mix of
skills and experience to
help drive our focus as we move from building the fibre network
to helping New Zealand make the most of its potential.
FY20 half year result
Dividend reinvestment plan
for shareholders
A dividend reinvestment plan is available to our Australian
and New Zealand resident shareholders. There will be
no discount rate applied for the 14 April 2020
dividend payment.
If you haven’t previously registered to participate and wish
to do so, you’ll need to have registered your participation
by 5:00pm (NZ time) on 17 March 2020.
You can register, or deregister, by logging into your
Computershare profile at www.investorcentre.com/nz
or downloading the Participation Notice at
www.chorus.co.nz/dividends and returning it to
Computershare.
The full terms of the reinvestment plan can be read
in our Offer Document dated February 2016 at
www.chorus.co.nz/dividends, or you can request a
copy free of charge. Our most recent audited financial
statements, and auditor’s report, are included in our 2019
annual report, which is available free of charge on request
and at www.chorus.co.nz/financial-results.
1 Earnings before interest, income tax, depreciation and amortisation (EBITDA)
is a non-GAAP profit measure. We monitor this as a key performance indicator
and we believe it assists investors in assessing the performance of the core
operations of the business.
HY20: The six months ending 31 December 2019
FY19:
The 12 months ending 30 June 2019
Dividend
HY20
10cps
HY19
9.5cps
Fibre connections
HY20
693,000
FY19
610,000
Broadband connections
HY20
1,206,000
FY19
1,196,000
Fixed line connections
HY20
1,432,000
FY19
1,450,000
Net profit after tax
HY20
$31m
HY19
$30m
EBITDA
1
HY20
$332m
HY19
$318m
dear investors
It’s been a strong six months for your company
We reported EBITDA of $332 million for the six months ending
31 December 2019, up from $318 million on the same period
the year before. Net profit after tax increased by $1 million to
$3
1 million over the same period. Our growth in EBITDA was
achieved through a combination of operating cost reductions
and
strong broadband connections growth. An interim divi dend
of 10 cents per share will be paid on 14 April 2020.
UFB1 rollout wraps up
In November, we completed the original ultra-fast broadband
(UFB1) rollout contract that was the catalyst for Chorus’ share
market listing back in late 2011. This milestone marks the
beginning of the wind down in our deployment programme,
with the UFB extension (UFB2) already close to 40% complete
and just 150,000 premises remaining to be passed by
December 2022.
Half year result overview
Welcome to the era of
NEW CHORUS CEO, JB ROUSSELOT

Gigabit fibre strikes a chord with Kiwis
In the six months since we last reported our financial results to
you, we’ve built fibre past another 77,000 customers. Uptake
across the areas where we’ve deployed fibre, including these new
ones, has grown from 53% to 56%. In Auckland, New Zealand’s
largest city, uptake is already at 63%. Word about the reliability
and speed of fibre broadband has clearly reached much smaller
communities too, with uptake in our completed UFB2 areas
quickly surpassing one third.
Pleasingly, our customer experience scores for fibre installations
have continued to improve. This follows our work last financial
year to redesign our processes, so we can connect most
customers in a single visit.
Data usage continues to grow ever higher. Fibre users now
average 372 gigabytes (GB) a month, while customers on our
copper services average 205GB. Contrast that to 12GB that was
the average usage back when we started deploying fibre.
We’ve seen an amazing change in the way people use the
internet since then and the pace of change isn’t slowing. The
launch of Disney’s new streaming service has made 4K, or ultra
high definition (UHD), video content available to consumers at
no additional cost. We expect bandwidth demand to step up
yet again as 4K televisions and online content become
more widespread.
Our focus on encouraging uptake of our fastest 1 gigabit per
second plans is yielding positive results. The proportion of our
growing pool of fibre customers taking a gigabit service has gone
from 10 to 13% in the six-month period. That’s been helped by a
reduction in our wholesale pricing and some sharp retail offers at
levels previously equated with a 100 megabits per second service.
There’s never been a better time for people to shop around when
considering a new broadband plan.
While 1 gigabit speeds may seem plenty, we’re already thinking
ahead to broadband that can enable a new era of high-capacity
creativity, innovation and efficiency. We’ve just connected
our first customers to Hyperfibre, our new 2Gbps and 4Gbps
services that use advanced technology with the potential
to deliver speeds up to 8Gbps. These services will make big
differences for customers who transfer large amounts of data,
or rely on instantaneous communication.
Regulation
In November, the Commerce Commission released its draft
decision on the input methodologies (IM), or rule book, that will
apply to our fibre access network from January 2022. We thank
the Commission for the considerable work that has gone into
the draft decision and welcome this step towards establishing a
utility style framework for New Zealand’s key communications
infrastructure. This decision was an improvement on some of
the proposals in the Commission’s prior Emerging Views paper
released in May, and we’ve recently made more submissions
on aspects of the draft decision. The Commission’s final IM
determination is due in mid-2020.
At the heart of our submissions is the belief that incentive-
based regulation should enable the continued delivery of high
quality, innovative services for consumers and fair returns
for investors. A key issue is the need for the regulated cost of
capital to better reflect the significant risks investors have faced
throughout the UFB rollout, and ensuring the post-rollout cost
of capital adequately reflects the ongoing risks inherent in our
fast evolving industry. Our view is clearly supported by European
precedents and a regulator’s recent proposal for fibre network
investment in the United Kingdom.
The UFB rollout simply wouldn’t have happened if the currently
proposed level of returns had been suggested to investors at the
time. This viewpoint is reflected in the submissions also made by
some of our large institutional investors.
The final shape of the new regime will, therefore, send important
signals regarding the regulatory treatment of infrastructure
investment in New Zealand. This is at a time when there is a
major infrastructure deficit. If New Zealand wants to attract
private investors to fund some of this deficit, investors need
to know they will be able to earn an appropriate return if they
navigate the considerable risks.
Figure 1:
Number of concurrent users per connection who can stream
Percentage of Connections
60%
60%
80%
90%
100%
50%
40%
30%
20%
10%
0%
VDSLFIBRE MAXFIBRE 100ADSL
15.3%
0.0%
FIXED WIRELESS
AT LEAST 2 UHD STREAMS ON AVERAGEAT LEAST 1 UHD STREAM ON AVERAGE
99.3%
100%
81.9%
76%
8%
99.0%
100%
56.6%
Source: Measuring Broadband New Zealand, Spring Report, December 2019, Commerce Commission

Outlook
Our strategy hasn’t changed. With the UFB rollout coming
to an end, we’re even more focused on connecting as many
customers as we can to our fibre network. That includes
making the experience when people, or things, are connected
the best we possibly can. In short, it’s all about winning with fibre
and you can expect us to be doing even more to encourage fibre
uptake in the months ahead. The fact is, while 56% of homes
and businesses are connected, there are 44% that aren’t. This is
despite fibre running past their front door, simple residential fibre
installations currently being free, and fibre being clearly the best
technology available.
While the number of disconnections from our fixed line
network slowed markedly in the first six months, some vertically
integrated mobile network operators are naturally promoting
their own fixed wireless broadband as an alternative to our fixed
line services. Occasionally, the ‘pending shutdown of copper’ is
incorrectly cited as a reason.
As we’ve said before, consumers should be aware that we have
not announced any timeframes for the switch-off of our copper
network. If, and when we decide to do so, it would only be on a
street-by-street basis and when fibre is available to replace it. In
the meantime, there are many retailers providing services across
our network and it may pay for consumers to shop around by
visiting websites like www.broadbandcompare.co.nz.
The Commerce Commission has helpfully published a report
showing the relative performance of our fixed line services and
wireless technology when it comes to key measures like latency2
and streaming on multiple devices. We’ll work hard to ensure
New Zealanders have full information about the clear
superiority of fibre over other technologies when they make
broadband decisions.
Our people are also working hard to optimise our business and
reduce costs. We’ve seen good progress in the first six months
with initiatives such as the issuing of a new 7-year Euro 300 million
bond at below 4% interest, which will help reduce our future
interest expenses.
We merged two of our largest teams into a single Customer
Network Operations group to help streamline functions and
deliver on our operational goals. This progress, together with
broadband connection performance, has given us the confidence
to increase FY20 EBITDA guidance to a new range of $640 million
to $655 million, from a prior range of $625 million to $645 million.
As we draw near to the end of the UFB rollout our expected return
to positive free cash flow is also coming into view. In November,
S&P announced an increase in our credit downgrade threshold to
a debt to EBITDA ratio of 4.25x at the current rating level, from
4x previously. This follows on from Moody’s Investors Services
saying they expect to revise their threshold for Chorus in 2021,
after the Commerce Commission’s final determination on our
fibre price path, to be more in line with other regulated utilities.
Our reducing capital expenditure requirements and the strong
first half performance means we have decided to remove the
discount previously offered on the dividend reinvestment plan.
We will continue to review the availability of the plan at each
financial result.
We’ve had some investors seeking more clarity on our future
dividend intentions. The Board recognises that investors have had
constrained returns through the decade long UFB investment
cycle and our focus is on returning surplus cash flows to
shareholders. Our expectation is that from FY22 we’d transition to
a dividend policy based on a pay-out range of free cash flow. More
commentary on our thinking and the broader result presentation
can be viewed at www.chorus.co.nz/webcast.
Thank you for your support of Chorus.
Kind regards
Patrick Strange
Chair
Completed
2 Latency is sometimes called ‘ping’ and is the time it takes for a packet of data to get from, for example, your computer to a website and back again. Fibre enables very
low latency. High latency can result in a poor consumer experience, particularly for applications such as video calls or gaming.
Figure 2:
Distribution of latency by technology
Percentage of Latency Tests
60%
50%
40%
30%
20%
10%
0%
0-1010-2020-3 040-5030-4050-606 0 -7 070-8080-909 0-10 0100+
ADSLFIBREVDSLFIXED WIRELESS
L ATENCY (ms)
Source: Measuring Broadband New Zealand, Spring Report, December 2019, Commerce Commission

---

Half Year Results
For the six months ended 31 December 2019
01 Half year result overview
02 Management commentary
05 Financial statements

1
Half Year Result 2020
Half year result overview
1 Earnings before interest, income tax, depreciation and amortisation (EBITDA) is a non-GAAP profit measure. We monitor this as a
key performance indicator and we believe it assists investors in assessing the performance of the core operations of our business.
Fibre connectionsDividend
693,000
HY20
10cps
HY20
610,000
FY19
9.5cps
HY19
Fixed line connectionsBroadband connections
1,206,000
HY20HY20
1,432,000
1,196,000
FY19FY19
1,450,000
EBITDA
1
Net profit after tax
HY19HY18
$332m
HY20
HY19
$31m
HY20
$318m
HY19
HY18
$30m
HY19

Half Year Result 2020
2
Management commentary
We report earnings before interest, income tax, depreciation and amortisation (EBITDA) of
$332 million for the six months ending 31 December 2019 (HY20). This was an increase of $14 million
on the same six months in FY19 (HY19), with significant reductions in operating expenses more than
offsetting a $6 million decrease in revenues. Net earnings increased by $1 million compared to HY19
due to increased finance expenses following the issue of bonds in December 2018 and 2019.
The combination of operating cost reductions and strong broadband connections growth means
we’re on track to achieve our goal of returning to modest EBITDA growth in FY20. We’ve increased
FY20 EBITDA guidance to a new range of $640 million to $655 million, from a prior range of
$625 million to $645 million.
Operating revenue
Revenues of $483 million were down $6 million compared
to HY19. This was largely a consequence of a reduction in
field services activity requested by third parties for network
relocation, with a corresponding decrease in other
network costs.
Broadband revenue grew as mass market broadband
connections increased from 1,186,000 in HY19 to 1,206,000
in HY20. Average revenue per user also grew as the
proportion of fibre broadband customers on higher speed
services, above the entry level 50 megabits per second
(Mbps) service, continued to grow and annual price increases
were applied across certain fibre and copper services.
Copper voice and data services revenues reduced as a
consequence of declining connections. Total connections
on our network, including mass market broadband, reduced
by 54,000 connections between the end of HY19 and HY20.
Other revenue increased by $3 million from $2 million in
HY19 due to favourable legal settlements.
CONNECTIONS
31 DECEMBER 2019
CONNECTIONS
30 JUNE 2019
CONNECTIONS
31 DECEMBER 2018
Fibre broadband (GPON)
2
681,000599,000517,000
Fibre premium (P2P)
3
12,00011,00012,000
Copper VDSL242,000270,000295,000
Copper ADSL283,000327,000374,000
Data services over copper4,0005,0005,000
Unbundled copper18,00024,00039,000
Baseband copper192,000214,000244,000
Total fixed line connections1,432,0001,450,0001,486,000
Expenses
Total operating expenses were $151 million in HY20, a
significant 12% reduction from $171 million in HY19. This
reflects our continued focus on reducing costs across the
business, supported by the network cost benefits of our
transition to an increasingly fibre-centric customer base,
and a net reduction in regulatory related costs.
Labour
Labour costs of $39 million represent staff costs that are
not capitalised and one-off restructuring costs of
$1.5 million. Staff numbers are reducing because we have
passed the peak of the Ultra-Fast Broadband (UFB) rollout
programme and are moving from a build to more operational
focus. Towards the end of HY20 our Network and Field
Management and Customer Care teams were merged,
resulting in a reduction in roles. We had 862 permanent
and fixed term employees at the end of HY20, down from
914 employees at the end of HY19.
Labour cost in relation to the UFB build and connect activity
is capitalised. As this activity reduces over time, We expect
the related labour cost savings to be largely capital in nature.
Network maintenance
Network maintenance costs reduced by $4 million compared
to HY19, largely as a consequence of fewer network faults
and truck rolls. The main contributors to this outcome were:
• underlying fault levels reducing as a greater proportion of
customers migrate to the newer fibre network and total
customer connections have reduced;
• fewer weather-related network events in HY20 compared
to HY19.
2 GPON: Gigabit Passive Optical Network
3 P2P: Where two parties or devices are connected point-to-point
via fibre.

Half Year Result 2020
3
Other network
Other network costs reduced by $6 million compared to
HY19. This was largely the effect of a reduction in third party
requests for network relocation activity that cannot
be capitalised, with a corresponding reduction in field
services revenue.
Rent and rates
Rent and rates reduced by $1 million compared to HY19. This
was partly due to reduced office space.
Information technology
Information technology costs were down $3 million
compared to HY19. The ongoing replacement of legacy
shared systems with our own in-house solutions is resulting
in lower maintenance and support costs.
Electricity
Electricity costs reduced by $1 million compared to HY19
due to a combination of lower average prices and lower
overall power consumption.
Provisioning
Provisioning reduced by $1 million compared to HY19 as
copper connections continued to reduce and an increasing
proportion of copper provisioning is classified as customer
retention expenditure.
Consultants
Consultant costs increased by $1 million in HY20 compared
to the same period in FY19. We are engaging with several
external consultants to provide advice and guidance on the
establishment of a Building Block Model and expenditure
submissions in anticipation of new regulatory requirements.
Regulatory levies
Regulatory levies reduced by $4 million compared to
HY19. This reflects a reduction in our share of the FY18/19
Telecommunications Development Levy and confirmation
that our contribution will reduce further for the FY19/20
period with the total industry levy reducing from $50 million
to $10 million.
Other
Other costs have decreased by $2 million in HY20, mainly
as a result of lower marketing expenses. During the same
period in FY19, there was increased advertising activity due
to the Chorus rebranding rollout across the country and
more commercials across various media outlets.
Depreciation and amortisation
Depreciation continues to increase because of our
investment in long life network assets for the UFB rollout
since 2011. This is partially offset by the increasing
amortisation of Crown funding against these assets.
Finance income and expenses
Finance income is higher for the period as the proceeds from
the December 2019 EUR denominated Euro Medium Term
Notes (EMTN) are held on term deposit until required for
repayment of the GBP EMTN in April 2020.
Interest on the fixed rate NZD bonds has increased in
comparison to HY19, with a full year's interest paid on the
$500 million NZD bonds issued in December 2018. The EUR
300 million EMTN issued in December 2019 incurred one
month of interest. Notional interest on Crown Infrastructure
Partners (CIP) securities also increased as Crown funding
continued to grow.

Half Year Result 2020
4
Capital expenditure
Gross capital expenditure for HY20 was $357 million, down
from $395 million in HY19. Fibre remained the dominant
category of spend at 84%, with copper related expenditure
continuing to trend downwards. The UFB1 rollout was
completed in November 2019 and the UFB2 rollout is 37%
complete, meaning we are now 86% of the way towards
completing the overall programme.
We invested $100 million in the UFB rollout during the period,
with $26 million spent in UFB1 areas and $74 million spent
in UFB2 areas. A total of 45,000 premises were passed, up
from 38,000 premises in HY19. This included 16,000 UFB2
premises.
Fibre connections and layer 2 spend was $155 million, driven
largely by the cost to connect fibre to 99,000 homes and
businesses (UFB1 85,000; UFB2 14,000). This was up from
95,000 connections in HY19. The average cost per residential
premises connected (CPPC) in UFB1 areas during HY20 was
$9954, just below the guidance range of $1,000 to $1,150,
largely as a result of favourable deployment costs. The CPPC
in UFB2 areas was $1,1794. This was in line with the lower end
of UFB2 programme guidance of $1,650 to $1,850 in 2017
dollars, which includes layer 2 and service desk costs, and
backbone costs for multi-dwelling units and rights of way
with 10 or fewer premises.
Spend on other fibre connections and growth was
$28 million, down from $36 million in HY19 largely due to
reduced pole replacement investment in the current period.
Copper capital expenditure reduced from $39 million in
HY19 to $29 million in the current period. Spend on network
sustain was $15 million, down from $19 million in HY19,
reflecting the lower spend required as customer numbers
on our copper network reduce. Copper layer 2 spend
also reduced by $3 million with the prior period including
capacity investment ahead of the Rugby World Cup.
Common capital expenditure was up slightly from HY19
because we modernised several information technology
systems to support better customer delivery.
Dividends, equity and capital management
We will pay an interim dividend of 10 cents per share on
14 April 2020 to all holders registered at 5:00pm
17 March 2020. The dividends paid will be fully imputed,
at a ratio of 28/72, in line with the corporate income tax rate.
A supplementary dividend of 1.76 cents per share will be
payable to shareholders who are not resident in
New Zealand.
The dividend reinvestment plan will be available for the
interim dividend, but there will be no discount applied.
Participation in the dividend reinvestment plan will be based
on election notices received by the share registrar by 5:00pm
(NZ time) on 18 March 2020. Shareholders who previously
elected to participate in the dividend reinvestment plan, but
no longer wish to do so, will need to update their election by
this time.
A final dividend of 14 cents per share is expected to be
declared in August 2020, subject to no material adverse
changes in circumstances or outlook.
On 5 December 2019 we issued EUR 300 million seven-year
unsecured, subordinated, fixed rate EMTN.
The funds raised will be used for general corporate purposes
including the repayment of the existing GBP EMTN in
April 2020.
The Board considers that a 'BBB' or equivalent credit rating
is appropriate for a company such as Chorus. It intends to
maintain capital management policies and financial policies
consistent with these credit ratings. At 31 December 2019,
Chorus had a long term credit rating of BBB/stable outlook
by Standard & Poor’s and Baa2/stable by Moody’s
Investors Service.
4 Excluding layer 2 and backbone costs for multi-dwelling units and rightsof way, and including standard installations and some non-standard
single dwellings and service desk costs.

Half Year Result 2020
5
Condensed consolidated
income statement
For the six months ended 31 December 2019
(Dollars in millions)Notes
SIX MONTHS ENDED
31 DECEMBER 2019
UNAUDITED
$M
SIX MONTHS ENDED
31 DECEMBER 2018
UNAUDITED
$M
YEAR ENDED
30 JUNE 2019
AUDITED
$M
Fibre broadband (GPON) 187 136 294
Fibre premium (P2P) 36 37 74
Copper based broadband 144 181 344
Copper based voice 42 56 106
Data services copper 8 10 18
Field services products 33 39 74
Value add and network services 16 16 30
Infrastructure 12 12 24
Other 5 2 6
Total operating revenue 483 489 970
Labour costs (39) (37) (74)
Network maintenance (34) (38) (75)
Other network (12) (18) (33)
Information technology (23) (26) (50)
Rent and rates (6) (7) (13)
Property maintenance (5) (6) (17)
Electricity (8) (9) (17)
Provisioning (2) (3) (6)
Insurance (2) (2) (3)
Consultants (5) (4) (7)
Regulatory levies (4) (8) (16)
Other (11) (13) (23)
Total operating expenses (151) (171) (334)
Earnings before interest, income tax, depreciation and amortisation 332 318 636
Depreciation1 (155) (150) (303)
Amortisation2 (43) (46) (90)
Earnings before interest and income tax 134 122 243
Finance income 7 4 10
Finance expense (95) (83) (175)
Net earnings before income tax 46 43 78
Income tax expense (15) (13) (25)
Net earnings for the period 31 30 53
Earnings per share
Basic earnings per share (dollars)
0.070.07 0.12
Diluted earnings per share (dollars)0.060.05 0.10
The accompanying notes are an integral part of these financial statements.
Financial statements

Half Year Result 2020
6
Condensed consolidated statement of
comprehensive income
For the six months ended 31 December 2019
(Dollars in millions)Note
SIX MONTHS ENDED
31 DECEMBER 2019
UNAUDITED
$M
SIX MONTHS ENDED
31 DECEMBER 2018
UNAUDITED
$M
YEAR ENDED
30 JUNE 2019
AUDITED
$M
Net earnings for the period 31 30 53
Other comprehensive income
Items that will be reclassified subsequently to the income statement
when specific conditions are met
Movements in effective cash flow hedges
94 (14) (45)
Amortisation of de-designated cash flow hedges transferred to income
statement
9 (1) (1) (2)
Movement in cost of hedging reserve9 (1) (1) -
Other comprehensive income net of tax (2) (16) (47)
Total comprehensive income for the period net of tax 33 14 6
The accompanying notes are an integral part of these financial statements.

Half Year Result 2020
7
Patrick Strange
Chair
Mark Cross
Chair, Audit and Risk Management Committee
Condensed consolidated statement
of financial position
As at 31 December 2019
(Dollars in millions)Notes
31 DECEMBER 2019
UNAUDITED
$M
31 DECEMBER 2018
UNAUDITED
$M
30 JUNE 2019
AUDITED
$M
Current assets
Cash and call deposits
678 281 273
Income tax receivable 16 16 11
Trade and other receivables 192 214 140
Derivative financial instruments9 2 4 3
Finance lease receivable 6 5 6
Total current assets 894 520 433
Non-current assets
Derivative financial instruments
9 37 43 56
Trade and other receivables 2 5 7
Deferred tax receivable 102 87 101
Customer retention assets3 59 45 61
Software and other intangibles2 134 136 137
Network assets1 4,976 4,634 4,823
Total non-current assets 5,310 4,950 5,185
Total assets 6,204 5,470 5,618
Current liabilities
Trade and other payables
323 359 360
Income tax payable 4 4 2
Lease payable 8 6 8
Derivative financial instruments9 169 18 197
Debt4 512 - 491
Total current liabilities excluding Crown funding 1,016 387 1,058
Current portion of Crown funding6 26 23 25
Total current liabilities 1,042 410 1,083
Non-current liabilities
Deferred tax payable
340 312 326
Derivative financial instruments 122 222 91
Lease payable 253 237 246
Debt4 2,214 2,224 1 ,741
Total non-current liabilities excluding CIP and Crown funding 2,929 2,995 2,404
Crown Infrastructure Partners (CIP) securities5 422 299 355
Crown funding6 836 756 797
Total non-current liabilities 4,187 4,050 3,556
Total liabilities 5,229 4,460 4,639
Equity
Share capital
660 620 638
Reserves(81)(52)(83)
Retained earnings 396 442 424
Tot al e quit y 975 1,010 979
Total liabilities and equity 6,204 5,470 5,618
The accompanying notes are an integral part of these financial statements.
The financial statements are approved and signed on behalf of the Board.
Authorised for issue on 24 February 2020

Half Year Result 2020
8
Condensed consolidated statement
of changes in equity
For the six months ended 31 December 2019
(Dollars in millions)Note
Share capital
$M
Retained
earnings
$M
Hedging-related
reserves
$M
Total
$M
Balance at 1 July 2018 590 468 (36) 1,022
Comprehensive income
Net earnings for the year
- 53 - 53
Other comprehensive income
Changes in cash flow hedge reserve
- - (45) (45)
Amortisation of de-designated cash flow hedges transferred to
income statement
- - (2) (2)
Total comprehensive income - 53 (47) 6
Contributions by and (distributions to) owners:
Dividends
8 - (97) - (97)
Supplementary dividends - (12) - (12)
Tax credit on supplementary dividends - 12 - 12
Dividend reinvestment plan 48 - - 48
Total transactions with owners 48 (97) - (49)
Balance at 30 June 2019 (AUDITED) 638 424 (83) 979
Comprehensive income
Net earnings for the period
- 31 - 31
Other comprehensive income
Changes in cash flow hedge reserve
- - 4 4
Amortisation of de-designated cash flow hedges transferred to
income statement
- - (1) (1)
Movement in cost of hedging reserve - - (1) (1)
Total comprehensive income - 31 2 33
Contributions by and (distributions to) owners:
Dividends
8 - (59) - (59)
Supplementary dividends - (7) - (7)
Tax credit on supplementary dividends - 7 - 7
Dividend reinvestment plan 22 - - 22
Total transactions with owners 22 (59) - (37)
Balance at 31 December 2019 (UNAUDITED) 660 396 (81) 975
The accompanying notes are an integral part of these financial statements.

Half Year Result 2020
9
Condensed consolidated statement
of changes in equity (continued)
For the six months ended 31 December 2019
(Dollars in millions)Note
Share capital
$M
Retained
earnings
$M
Hedging-related
reserves
$M
Total
$M
Balance at 1 July 2018 590 468 (36) 1,022
Comprehensive income
Net earnings for the period
– 30 – 30
Other comprehensive income
Changes in cash flow hedge reserve
– – (14) (14)
Amortisation of de-designated cash flow hedges transferred
to income statement
– – (1) (1)
Movement in cost of hedging reserve – – (1) (1)
Total comprehensive income – 30 (16) 14
Contributions by and (distributions to) owners:
Dividends
8 – (56) – (56)
Supplementary dividends – (7) – (7)
Tax credit on supplementary dividends – 7 – 7
Dividend reinvestment plan 30 – – 30
Total transactions with owners 30 (56) – (26)
Balance at 31 December 2018 (UNAUDITED) 620 442 (52) 1,010
The accompanying notes are an integral part of these financial statements.

Half Year Result 2020
10
Condensed consolidated statement
of cash flows
For the six months ended 31 December 2019
(Dollars in millions)
SIX MONTHS ENDED
31 DECEMBER 2019
UNAUDITED
$M
SIX MONTHS ENDED
31 DECEMBER 2018
UNAUDITED
$M
YEAR ENDED
30 JUNE 2019
AUDITED
$M
Cash flows from operating activities
Cash was provided from/(applied to):
Cash received from customers
466 447 966
Finance income - - 1
Payment to suppliers and employees (183) (209) (339)
Taxation paid (7) (7) (3)
Interest paid (63) (55) (129)
Net cash flows from operating activities 213 176 496
Cash flows applied to investing activities
Cash was applied to:
Purchase of network and intangible assets
(372)(401) (806)
Capitalised interest paid(2)(2) (4)
Net cash flows applied to investing activities (374) (403) (810)
Cash flows from financing activities
Cash was provided from/(applied to):
Net outflow from leases
(10) (5) (21)
Crown funding (including CIP securities) 99 49 167
Proceeds from debt 514 500 500
Repayment of debt - (60) (60)
Dividends paid (37) (26) (49)
Net cash flows from financing activities 566 458 537
Net cash flow 405 231 223
Cash at the beginning of the period 273 50 50
Cash at the end of the period 678 281 273
The accompanying notes are an integral part of these financial statements.

Half Year Result 2020
11
Notes to the financial statements
Reporting entity and statutory base
Chorus includes Chorus Limited together with its subsidiaries as
at and for the six months ended 31 December 2019.
Chorus is New Zealand’s largest fixed line communications
infrastructure services provider. It maintains and builds a
network predominantly made up of fibre and copper cables,
local telephone exchanges and cabinets.
Chorus Limited is a profit-orientated company registered in
New Zealand under the Companies Act 1993 and a FMC
Reporting Entity for the purposes of the Financial Markets
Conduct Act 2013.
The condensed consolidated interim financial statements
(financial statements) have been prepared in accordance
with the New Zealand equivalent to International Accounting
Standard No. 34: “Interim Financial Reporting” and Generally
Accepted Accounting Practice in New Zealand (NZ GAAP).
These financial statements do not include all of the information
required for the full annual financial statements and should be
read in conjunction with the consolidated financial statements
of Chorus as at and for the year ended 30 June 2019.
These financial statements are expressed in New Zealand dollars.
All financial information has been rounded to the nearest million,
unless otherwise stated.
The measurement basis adopted in the preparation of
these financial statements is historical cost, modified by the
revaluation of financial instruments as identified in the specific
accounting policies disclosed in the notes to the consolidated
financial statements for the year ended 30 June 2019 and
described in note 9 to these financial statements.
Chorus business operations and its interim financial statements
are not materially impacted by seasonality.
Accounting policies and standards
The accounting policies adopted and methods of computation
have been applied consistently throughout the periods
presented in these financial statements.
The financial statements for the six months ended 31 December
2019 and comparative information for the six months ended 31
December 2018 are unaudited. The comparative information for
the year ended 30 June 2019 is audited.
Reclassification and re-statement of
comparatives
Where management have reclassified items in the financial
statements, the related comparative disclosures have been
adjusted to provide a like-for-like comparison.
Accounting estimates and judgements
In preparing the financial statements, management has made
estimates and assumptions about the future that affect the
reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenue and
expenses during the period. Actual results could differ from
those estimates.
In preparing the financial statements, the significant judgements
made by management in applying Chorus’ accounting policies
were the same as those that applied to the consolidated financial
statements as at and for the year ended 30 June 2019.

Half Year Result 2020
12
Note 1 – Network assets
(Dollars in millions)
31 DECEMBER 2019
UNAUDITED
$M
31 DECEMBER 2018
UNAUDITED
$M
30 JUNE 2019
AUDITED
$M
Cost
Opening balance
10,290 9,626 9,626
Additions 322 353 711
Disposals (1) (18) (54)
Other - 4 7
Closing balance 10,611 9,965 10,290
Accumulated depreciation
Opening balance
(5,467) (5,187) (5,187)
Depreciation (169) (162) (328)
Disposals 1 - 49
Other - 18 (1)
Closing balance (5,635) (5,331) (5,467)
Net carrying amount 4,976 4,634 4,823
Depreciation
The Crown funding amortisation that was released against
depreciation for the six months ended 31 December 2019 was
$14 million (31 December 2018: $12 million; 30 June 2019:
$25 million). See note 6.
Property exchanges
Chorus has leased exchange space and commercial
co-location space owned by Spark which is subject to finance
lease arrangements (included within right of use assets).
Chorus in turn leases exchange space and commercial
co-location space owned by Chorus to Spark under a finance
lease arrangement.
For sites that it does not own, Chorus recognises its share of
the assets based on occupancy percentage, as well as a liability
for the future payments due. For sites that it does own, Chorus
derecognises the share of the asset used by Spark, as well as
recognising a receivable for the future receipts due.
Additions
Additions also includes the net movement within capital work in
progress in the period.
Capital commitments
There are no restrictions on Chorus network assets or any
network assets pledged as security for liabilities.
At 31 December 2019 the contractual commitment for
acquisition of network assets was $188 million (31 December
2018: $395 million; 30 June 2019: $264 million), mainly relating
to Ultra-Fast Broadband (UFB) build activity.
Right of use assets
Network assets comprise of owned and right of use (leased) assets.
(Dollars in millions)
Fibre cables
$M
Ducts, manholes
and poles
$M
Property
$M
Total
$M
Balance 1 July 2018 9 26 191 226
Additions 1 10 5 16
Relinquishments - - (4) (4)
Depreciation charge (1) (2) (10) (13)
Balance at 30 June 2019 9 34 182 225
Additions - 9 - 9
Relinquishments - - - -
Depreciation charge - (3) (3) (6)
Balance at 31 December 2019 9 40 179 228
Balance 1 July 2018 9 26 191 226
Additions (net of relinquishments) - 2 - 2
Depreciation charge - (1) (5) (6)
Balance at 31 December 2018 9 27 186 222
Additions to right of use assets during the period to 31 December 2019 were largely CPI adjustments to ducts, manholes and
poles leases, and additions to pole leases related to UFB build activity.

Half Year Result 2020
13
Note 2 – Software and other intangibles
(Dollars in millions)
31 DECEMBER 2019
UNAUDITED
$M
31 DECEMBER 2018
UNAUDITED
$M
30 JUNE 2019
AUDITED
$M
Cost
Opening balance
781 728 728
Additions 22 25 53
Closing balance 803 753 781
Accumulated amortisation
Opening balance
(644) (588) (588)
Amortisation (25) (29) (56)
Closing balance (669) (617) (644)
Net carrying amount 134 136 137
There are no restrictions on Chorus software and other intangible assets, or any pledged as security for liabilities.
Amortisation
Note
31 DECEMBER 2019
UNAUDITED
$M
31 DECEMBER 2018
UNAUDITED
$M
30 JUNE 2019
AUDITED
$M
Amortisation charged on software and intangible assets 25 29 56
Amortisation charged on customer retention assets3 18 17 34
Total amortisation 43 46 90
Capital commitments
At 31 December 2019, the contractual commitment for acquisition of software and other intangible assets was $35 million
(31 December 2018: $12 million; 30 June 2019:$36 million), mainly relating to network capability enhancement activity.
Note 3 – Customer retention assets
(Dollars in millions)
31 DECEMBER 2019
UNAUDITED
$M
31 DECEMBER 2018
UNAUDITED
$M
30 JUNE 2019
AUDITED
$M
Cost
Opening balance
150 96 96
Additions 19 20 54
Disposals - (10) -
Closing balance 169 106 150
Accumulated amortisation
Opening balance
(89) (54) (54)
Amortisation (21) (17) (35)
Disposals - 10 -
Closing balance (110) (61) (89)
Net carrying amount 59 45 61
Customer retention assets are made up of $55 million of new connections and migrations and $4 million in customer incentives
(31 December 2018: $45 million, nil; 30 June 2019: $57 million, $4 million).

Half Year Result 2020
14
Note 3 – Customer retention assets - cont
Amortisation of customer retention assets
Customer retention assets are amortised to the income statement, either as amortisation expense or operating revenue, based on
the nature of the specific costs capitalised.
Note
31 DECEMBER 2019
UNAUDITED
$M
31 DECEMBER 2018
UNAUDITED
$M
30 JUNE 2019
AUDITED
$M
Amortised to amortisation expense2 18 17 34
Amortised to operating revenue 3 - 1
Total Customer retention assets amortisation 21 17 35
Note 4 – Debt
(Dollars in millions)Due Date
31 DECEMBER 2019
UNAUDITED
$M
31 DECEMBER 2018
UNAUDITED
$M
30 JUNE 2019
AUDITED
$M
Euro medium term notes GBPApr 2020 512 493 491
Euro medium term notes EUROct 2023 840 848 858
Euro medium term notes EURDec 2026 489 - -
Fixed rate NZD BondsMay 2021 400 400 400
Fixed rate NZD BondsDec 2028 500 500 500
Less: facility fees (15) (17) (17)
Total Debt 2,726 2,224 2,232
Current 512 - 491
Non-current 2,214 2,224 1 ,741
On 5 December 2019 Chorus issued EUR 300 million of Euro
Medium Term Notes at a fixed interest rate of 0.875% for seven
years. They will mature in December 2026 and have been
swapped to a hedged rate of $514 million using cross currency
interest rate swaps (see note 9).
As at 31 December 2019 Chorus had $550 million committed
syndicated facilities on market standard terms and conditions
(31 December 2018: $350 million; 30 June 2019: $550 million).
The amount undrawn of the syndicated bank facility that is
available for future operating activities is $550 million
(31 December 2018: $350 million; 30 June 2019: $550 million).
The facilities are split into 2 tranches, a $350 million tranche
which expires May 2022 and a $200 million tranche which
expires May 2024. The syndicated bank facility is held with bank
and institutional counterparties rated A- to AAA, based on rating
agency Standard & Poor's ratings.
The Euro Medium Term Note debt of GBP 260 million has been
swapped to a hedged rate of $677 million (31 December 2018:
$677 million; 30 June 2019: $677 million), and the Euro Medium
Term Note debt of EUR 500 million has been swapped to a
hedged rate of $785 million (31 December 2018: $785 million;
30 June 2019: $785 million), both using cross currency interest
rate swaps (see note 9).
Note 5 – Crown Infrastructure Partners (CIP) securities
(Dollars in millions)
31 DECEMBER 2019
UNAUDITED
$M
31 DECEMBER 2018
UNAUDITED
$M
30 JUNE 2019
AUDITED
$M
Fair value on initial recognition
Opening balance
283 223 223
Additional securities recognised at fair value 53 15 60
Closing balance 336 238 283
Accumulated notional interest
Opening balance
72 50 50
Notional interest 14 11 22
Closing balance 86 61 72
Total CIP securities 422 299 355

Half Year Result 2020
15
Note 6 – Crown funding
Funding from the Crown is recognised at fair value where there
is reasonable assurance that the funding is receivable and all
attached conditions will be complied with.
Crown funding is then recognised in earnings as a reduction to
depreciation expense on a systematic basis over the useful life of
the asset the funding was used to construct.
(Dollars in millions)
31 DECEMBER 2019
UNAUDITED
$M
31 DECEMBER 2018
UNAUDITED
$M
30 JUNE 2019
AUDITED
$M
Fair value on initial recognition
Opening balance
930 841 841
Additional funding recognised at fair value 54 33 89
Closing balance 984 874 930
Accumulated amortisation
Opening balance
(108) (83) (83)
Amortisation (14) (12) (25)
Closing balance(122)(95)(108)
Total Crown funding 862 779 822
Current 26 23 25
Non-current 836 756 797
Ultra-Fast Broadband (UFB)
Chorus receives funding from the Crown to finance construction
costs associated with the development of the UFB network.
During the period Chorus has recognised funding for 81,433
premises passed (UFB1 58,337 and UFB2 23,096 ) where the
premises were passed and tested by CIP as at 31 December 2019
(31 December 2018: 30,461; 30 June 2019: 109,784).
This brings the total number of premises passed and tested by
CIP at 31 December 2019 to approximately 879,000
(31 December 2018: 715,000; 30 June 2019: 797,000).
The total number of premises able to connect (including those
that have not been tested by CIP) was approximately 909,000 at
31 December 2019 (31 December 2018: 738,000; 30 June 2019:
842,000).
Continued recognition of the full amount of the Crown funding
is contingent on certain material performance targets being met
by Chorus. The most significant of these material performance
targets relate to compliance with certain specifications under
user acceptance testing by CIP. Performance targets to date have
been met.
Note 7 – Segmental reporting
Chorus has determined that it operates in one segment
providing nationwide fixed line communications infrastructure.
The determination is based on the reports reviewed by the CEO
in assessing performance, allocating resources and making
strategic decisions.
Note 8 – Equity
Dividends
On 8 October 2019 a fully imputed final dividend of 13.5 cents
per share, $59 million, was paid to shareholders (31 December
2018: 13 cents per share, $56 million; 30 June 2019: 22.5 cents
per share, $97 million). There was an issue of 4,421,069 shares
under the Dividend Reinvestment plan offered to shareholders.
Net tangible assets per security
Net tangible assets per security for the period 31 December 2019
was $1.67 (31 December 2018: $1.79; 30 June 2019: $1.64).
Long-term performance share scheme
Chorus operates a long-term performance share scheme for
selected key management personnel.
In August 2017 Chorus issued one three year grant. The shares
have a vesting date of 8 September 2020 and an expiry date of
8 September 2021. The grant has an absolute performance
hurdle (Chorus’ actual total shareholder return equalling or being
greater than 10.6% per annum compounding) ending on the
vesting date, with provision for monthly retesting in the following
twelve month period.

Half Year Result 2020
16
In August 2018 Chorus issued one three year grant. The shares
have a vesting date of 27 August 2021 and an expiry date of
27 February 2022. The grant has an absolute performance hurdle
(Chorus’ actual total shareholder return equalling or being
greater than 10.4% per annum compounding) ending on the
vesting date, with provision for monthly retesting in the following
six month period.
The Chorus Board approved a different long-term performance
share scheme for key senior management from 1 July 2019,
based on issuing share-rights instead of issuing shares. The
existing grants will continue until their vesting date.
In August 2019, Chorus issued a tranche of share rights under
the new scheme. The shares have a vesting date of 30 August
2022 and an expiry date of 30 August 2023. The grant has an
absolute performance hurdle (Chorus’ actual total shareholder
return equalling or being greater than 10.35% per annum
compounding) ending on the vesting date, with provision for
monthly retesting in the following twelve month period.
The combined option cost for the period ended 31 December
2019 of $197,000 has been recognised in the income statement
(31 December 2018: $141,000; 30 June 2019: $334,000).
Note 9 – Derivative financial instruments
Finance expense includes any unrealised ineffectiveness arising
from the Euro Medium Term Notes (EMTN) hedge relationships.
Following the close out of the cross currency interest rate swaps
and interest rate swaps relating to the EMTN (GBP), the hedge
relationship was reset in December 2013 with a fair value of
$49 million. The unamortised balance of this original fair value at
31 December 2019 is $1 million (31 December 2018:
$6 million; 30 June 2019: $2 million). As long as the hedge
remains effective, any future gains or losses will be processed
through the cash flow hedge reserve. The initial fair value will
flow to finance expense in the income statement at some
time over the life of the derivatives as ineffectiveness. Due to
the complex nature of this instrument, practical expedients
available in NZ IFRS 9 have been applied for the EMTN (GBP),
so the designation remains unchanged. For the six months to
31 December 2019, $1 million ineffectiveness was recognised
within finance expense in the income statement (31 December
2018: $2 million; 30 June 2019: $6 million).
In conjunction with the EMTN (EUR) 500 million issued in
October 2016 and the EMTN (EUR) 300 million issued in
December 2019, Chorus entered into cross currency interest
rate swaps to hedge the foreign currency and foreign interest
rate risks on the EMTN (EUR). The 2016 swaps have an
aggregate principal of EUR 500 million on the receive leg and
NZD 785 million on the pay leg, and the 2019 swaps have
an aggregate principal of EUR 300 million on the receive leg
and NZD 514 million on the pay leg. Using the cross currency
interest rate swaps, Chorus will pay New Zealand Dollar (NZD)
floating interest rates and receive EUR nominated fixed interest
with coupon payments matching the underlying notes. Chorus
designated the EMTN and cross currency interest rate swaps
into three part-hedging relationships for each issue; a fair value
hedge of EUR benchmark interest rates, a cash flow hedge of
margin and a cash flow hedge of the principal exchange. For the
period to 31 December 2019 $1 million of ineffectiveness was
recognised in finance expense (31 December 2018: nil; 30 June
2019: nil). The cost of hedging (the fair value of the change in
currency basis spread) recognised in the cost of hedging reserve,
for the period to 31 December 2019 was $1 million (31 December
2018: $1 million; 30 June 2019: nil).
Chorus have entered into interest rate swaps which are all held
in effective hedging relationships and their unrealised gains or
losses are recognised in the cash flow hedge reserve.
Two forward dated interest rate swaps with a combined face
value of $500 million were restructured in December 2018 in
conjunction with the resettable NZD fixed rate bond issued on
6 December 2018, to hedge interest rate exposure from
December 2023. As part of the restructure, the original hedge
relationship was discontinued. On termination of this hedge
relationship a net present value of $14 million continued to be
recognised in the cash flow hedge reserve. This amount remains
in the cash flow hedge reserve as the hedged item still exists
and will be amortised over the original hedge period (April 2020-
April 2026). The unamortised balance of this original fair value at
31 December 2019 is $14 million (31 December 2018:
$14 million; 30 June 2019: $14 million). As long as the hedge
remains effective, any future gains or losses will be processed
through the hedge reserve; however, the initial fair value will
flow to finance expense in the income statement at some time
over the life of the derivatives as ineffectiveness. Neither the
direction, nor the rate of the impact of the income statement
can be predicted. For the six months to 31 December 2019,
$1 million ineffectiveness was recognised within finance
expense in the income statement (31 December 2018: nil;
30 June 2019: nil).

Half Year Result 2020
17
Note 10 – Related party transactions
The gross remuneration of directors and key management
personnel during the period was $5.7 million (31 December
2018: $8.1 million; 30 June 2019: $8.9 million).
The Company has loans to employees and nominees (Chorus LTI
Trustee Limited) receivable at 31 December 2019 of $0.9 million
(31 December 2018: $1.5 million; 30 June 2019:
$1.5 million) relating to Chorus long term performance share
scheme outlined in note 8. All loans outstanding are interest-free
limited recourse loans.
Note 11 – Post balance date events
Dividends
On 24 February 2020 Chorus declared an interim dividend in
respect of the six month period ending 31 December 2019. The
total amount of the dividend is $44.4 million, which represents a
fully imputed dividend of 10 cents per ordinary share.
CIP securities and Crown funding
There was one call notice issued on 16 January 2020 to CIP in
respect to 6,901 premises (UFB1) with a total aggregate issue
price of $8 million. These premises had been passed and tested
by CIP before 31 December 2019 so were accrued for in these
financial statements.

Half Year Result 2020
18
Independent review report
To the shareholders of Chorus Limited
Report on the condensed consolidated interim financial statements
Basis for conclusion
A review of condensed consolidated interim 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 the Group, 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 services, tax compliance services,
technical accounting training and other assurance services.
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.
Responsibilities of the Directors for the
condensed consolidated interim
financial statements
The Directors, on behalf of the Group, are responsible for:
— the preparation and fair presentation of the condensed
consolidated interim financial statements inaccordance
with NZ IAS 34 Interim Financial Reporting;
— implementing necessary internal control to enable the
preparation of condensed consolidated interim financial
statements that are fairly presented and 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
condensed consolidated interim financial
statements
Our responsibility is to express a conclusion on the interim
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 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
24 February 2020
Conclusion
Based on our review, nothing has come to our attention
that causes us to believe that the condensed consolidated
interim financial statements of Chorus Limited and its
subsidiaries (“the Group”) on pages 5 to 17 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 6
month period ended on that date; and
ii. comply with NZ IAS 34 Interim Financial Reporting.
We have completed a review of the accompanying
condensed consolidated interim financial statements
which comprise:
— the condensed consolidated statement of financial
position as at 31 December 2019;
— the condensed consolidated income statement,
statements of other comprehensive income, changes
in equity and cash flows for the 6 month period then
ended; and
— notes, including a summary of significant accounting
policies and other explanatory information.

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Chorus Limited
Reporting Period 6 months to 31 December 2019
Previous Reporting Period 6 months to 31 December 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$483,000 Down 1%
Total Revenue $483,000 Down 1%
Net profit/(loss) from
continuing operations
$31,000 Up 3%
Total net profit/(loss) $31,000 Up 3%
Interim/Final Dividend
Amount per Quoted Equity
Security
NZ$0.10000000
Imputed amount per Quoted
Equity Security
NZ$0.01764706
Record Date 17 March 2020
Dividend Payment Date 14 April 2020
31 December 2019 31 December 2018
Net tangible assets per
Quoted Equity Security
$1.67 $1.79
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
This announcement should be read in conjunction with the
attached management commentary and financial statements for
the six months ended 31 December 2019, media release and
investor presentation.
Authority for this announcement
Name of person

authorised
to make this announcement
David Collins
Chief Financial Officer
Contact person for this
announcement
Brett Jackson
Investor Relations Manager
Contact phone number +64 4 896 4039
Contact email address Brett.Jackson@chorus.co.nz
Date of release through MAP

24/02/2020

Unaudited, but reviewed financial statements accompany this announcement. The auditors
have issued a clear review report.

---

Distribution Notice

Updated as at 18 December 2019



Please note: all cash am ounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer Chorus Limited
Financial product name/description Ordinary shares
NZX ticker code CNU
ISIN (If unknown, check on NZX
website)
NZCNUE0001S2
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies X
Record date Close of trading on: 17/03/2020
Ex-Date (one business day before the
Record Date)
16/03/2020
Payment date (and allotment date for
DRP)
14/04/2020
Total monies associated with the
distribution
1

$44,370,922
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.13888889
Gross taxable amount
3
$0.13888889
Total cash distribution
4
$0.10000000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.01764706
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the f orm
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per f inancial product, bef ore the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per f inancial product, bef ore the deduction of RWT.
This should include any excluded amounts, w here applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount f or the purposes of this f orm. If the distribution is
f ully imputed the imputation credits w ill be 28% of the gross taxable amount w ith remaining 5% being RWT. This does not constitute
advice as to w hether or not RWT needs to be w ithheld.

If fully or partially imputed, please
state imputation rate as % applied
6

100%
Imputation tax credits per financial
product
$0.03888889
Resident Withholding Tax per
financial product
$0.00694444
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
16/03/2020 20/03/2020
Date strike price to be announced (if
not available at this time)
24/03/2020
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New Issue
DRP strike price per financial product
$unknown
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
5pm (NZ time) 18/03/2019
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
David Collins
Chief Financial Officer
Contact person for this
announcement
Brett Jackson
Investor Relations Manager
Contact phone number
+64 27 488 7808
+64 4 896 4039
Contact email address Brett.Jackson@chorus.co.nz
Date of release through MAP

24/02/2020





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends w ill be 28% as a % rate applied.

---

HALF YEAR RESULT
24 February 2020
H1 FY20 RESULT PRESENTATION

24 February 2020
Disclaimer
This presentation:
• Is provided for general information purposes and does not constitute investment advice or an offer of or invitation to purchase Chorus
securities.
• Includes forward-looking statements. These statements are not guarantees or predictions of future performance. They involve known
and unknown risks, uncertainties and other factors, many of which are beyond Chorus’ control, and which may cause actual resultsto
differ materially from those contained in this presentation.
• Includes statements relating to past performance which should not be regarded as reliable indicators of future performance.
• Is current at the date of this presentation, unless otherwise stated. Except as required by law or the NZX and ASX listing rules, Chorus is
not under any obligation to update this presentation, whether as a result of new information, future events or otherwise.
• Should be read in conjunction with Chorus’ audited consolidated financial statements for the year to 30 June 2019 and NZX and ASX
market releases.
• Includes non-GAAP financial measures such as "EBITDA”. These measures do not have a standardised meaning prescribed by GAAP and
therefore may not be comparable to similar financial information presented by other entities. They should not be used in substitution for,
or isolation of, Chorus' audited consolidated financial statements. We monitor EBITDA as a key performance indicator and we believe it
assists investors in assessing the performance of the core operations of our business.
• Has been prepared with due care and attention. However, Chorus and its directors and employees accept no liability for any errors or
omissions.
• Contains information from third parties Chorus believes reliable. However, no representations or warranties (express or implied) are
made as to the accuracy or completeness of such information.
H1 FY20 RESULT PRESENTATION
2

Agenda
>HY20 overview4
>Connections performance5-7
>UFB rollout and uptake8-10
>Subcontractor initiatives11
>Financial results12-16
>Capex17-19
>FY20 guidance update and UFB recap20-21
>Dividend policy and capital management22-27
>Regulation: asset beta and WACC28-30
>Winning with fibre: data usage and performance31-33
>Strategic priorities34-42
Appendix A: Connection and market trends43-45
24 February 2020
JB Rousselot, CEO
David Collins, CFO
JB Rousselot, CEO
H1 FY20 RESULT PRESENTATION
3

24 February 2020
A hyper active six months
▪CEO transition
▪UFB1 rollout completed (2011-2019)
▪launch of Hyperfibre(2 and 4Gbps)
▪contract for rural mobile backhaul
▪S&P threshold increased to 4.25x
▪draft Fibre Input Methodologies decision
▪7-year EUR300 million bond issued
▪merger of Customer Care and Network Field
Management teams
H1 FY20 RESULT PRESENTATION
4
1. Earnings before interest, income tax, depreciation and amortisation (EBITDA) is a
non-GAAP profit measure.

>Total broadband connections increased by
10k to 1,206,000 (HY19:-1k)
▪fibre now 68% of broadband connections in
Chorus UFB zone
>Total fixed line connections declined by 18k
to 1,432,000 (HY19:-40k)
24 February 2020
Strong broadband growth
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Chorus UFB zone broadband mix
FibreCopper broadband
No. of
connections
Note: Q2 typically sees seasonal effect of holidays and
student disconnections on total connections volumes
H1 FY20 RESULT PRESENTATION
5

>82,000mass market fibre connections added
>1Gbps connections grew by 29,000 (50%)
▪attractive second tier RSP promotions
▪RSP migration of 200Mbps customers
▪now 13% of connections and growing
0
10
20
30
40
50
60
70
80
90
100
Dec-18Mar-19Jun-19Sep-19Dec-19
% of
plans
Total mass market fibre uptake by plan type
50Mbps
100Mbps
1Gbps
24 February 2020
Gigabit is becoming the new norm
200Mbps
$60 p.m.
$46 p.m.
$42.50 p.m.
$55 p.m.
Business/Education plans
-10
0
10
20
30
50Mbps100Mbps200Mbps1Gbps
Fibre plan movement by quarter
Q1Q2
Change in
connections
(‘000s)
H1 FY20 RESULT PRESENTATION
6

24 February 2020
Connection changes by Zone (indicative)
Chorus UFB
zone*
Rural(non-
UFB) zone
Local Fibre
Company
UFB zone
Total connections at
31 Dec**
1,096,000196,000124,000
Broadband connections969,000154,00083,000
Copper (no broadband)
connections
127,00042,00041,000
* Includes planned UFB1, 2 and 2+ coverage
**Excludes 16k fibre premium and data services (copper) connections
No. of connections
-200,000400,000600,000800,0001,000,000
Q1
Q2
Q1
Q2
Q1
Q2
Broadband connections
Copper (no broadband) connections
LFC
Zone
Rural
Zone
Chorus
UFB Zone
-7k-2k
-7k-3k
-2k
-2k+1k
+7k
+16k
-11k
-8k
N/C
H1 FY20 RESULT PRESENTATION
7

24 February 2020
28,000kms of fibre and growing
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
FY20FY21FY22FY23
Premises passed*Premises to pass
Completion of UFB1 rollout a major milestone
H1 FY20 RESULT PRESENTATION
8
*excludes UFB1 greenfields
>UFB1 rollout completed 1 month ahead of
schedule and within $1.8 billion guidance
>UFB2* rollout already 37%complete
>909,000premises passed (FY19: 842,000)
out of 1,054,000 target by December 2022
*includes UFB2+ extension

>664,000 connections (FY19: 584,000) within completed UFB footprint (includes business premium fibre)
▪Auckland:63% fibre uptake by address; 76% of our broadband connections are on fibre
24 February 2020
UFB uptake: 56% within completed footprint
1,185,000customers able to connect (FY19: 1,108,000)
632,000
459,000
UFB1: 58% uptake
32,000
62,000
166,000
UFB2: 34% uptake in
completed footprint
ConnectionsFibre availableTo pass
76
13
11
Auckland: Chorus
broadband connections
by type (%)
FibreVDSL (copper)ADSL (copper)
H1 FY20 RESULT PRESENTATION
9

Fibre installations consistent with FY19 trend
>99,000fibre installations completed in HY20
(HY19: 95k)
▪customer satisfaction up from 7.7 (June) to 7.8
(December)
▪weighted average lead times down from 8 days
(June) to 7 days(December)
▪work in progress reduced from 23k (June) to 20k
(December)
▪field crew levels stable at ~670
Uptake
24 February 2020
8,000
10,000
12,000
14,000
16,000
18,000
20,000
JulyAugSeptOctNovDecJanFebMarAprilMayJune
Fibre installations (NZ wide)
FY18FY19FY20
H1 FY20 RESULT PRESENTATION
10

24 February 2020
Subcontractor initiatives
H1 FY20 RESULT PRESENTATION
11
▪supplier code of practice incorporated into key supply contracts
▪established worker welfare portal and independent whistle-blower process
▪implemented some changes to payment codes and processes to improve fairness and transparency
▪subcontractor companies required to complete training to ensure awareness of minimum employment
standards, along with mandatory statutory declarations of compliance
▪trust fund established to support workers affected by discontinued contractors
▪ongoing audit programme with regular updates to the Board
▪Visionstreamand UCG completed strategic workforce plans for expected decline in workforce numbers
Contract scopeConnecting premises
to fibre
UFB2 network buildMaintenance of copper
and fibre; fibre build
outside UFB areas
ContractorElectronet
UCG
Visionstream
Broadspectrum
Electronet
Visionstream
Downer
Visionstream
Contract periodUntil September 2020Until December 2022Until March 2022

Financial performance
David Collins, Chief Financial Officer
24 February 2020
H1 FY20 RESULT PRESENTATION

Income statement
24 February 2020
H1
FY20
$m
H2
FY19
$m
H1
FY19
$m
Operating revenue483481489
Operating expenses(151)(163)(171)
Earnings before interest, tax,
depreciation and amortisation
(EBITDA)
332318318
Depreciation and amortisation(198)(197)(196)
Earnings before interest and income tax134121122
Net interest expense(88)(86)(79)
Net earnings before income tax463543
Income tax expense(15)(12)(13)
Net earnings for the year312330
>Growing fibre asset depreciation partially offset by
increasing amortisation of Crown financing
>Increase due to growing bond debt and Crown
financing interest
>Broadband revenue grew; copper connections
and demand for field service activity reduced
>Positive trends across most cost lines
H1 FY20 RESULT PRESENTATION
13

24 February 2020
H1
FY20
$m
H2
FY19
$m
H1
FY19
$m
Fibre broadband
(GPON)
187158136
Fibre premium (P2P)363737
Copper based
broadband
144163181
Copper based voice425056
Data services copper8810
Field services333539
Value added network
services
161416
Infrastructure121212
Other542
Total483481489
Copper revenues reducing as customers migrate to Chorus fibre
or competing fibre/wireless networks
>Reduction in third party requests for network relocation
>Growth in fibre connections and uptake of higher ARPU plans
Revenue
>One-off legal settlement
H1 FY20 RESULT PRESENTATION
14

24 February 2020
H1
FY20
$m
H2
FY19
$m
H1
FY19
$m
Labour 393737
Network maintenance343738
Other network costs121518
IT232426
Rent, rates and property
maintenance
111713
Electricity889
Provisioning233
Insurance212
Consultants534
Regulatory levies488
Other111013
Total151163171
>Staff numbers now 862 vs 914 (HY19) One-off restructuring
costs of $1.5m
Expenses
>New platforms reducing IT maintenance and support costs
>Increase in external advice for new regulatory framework
>Growing proportion of connections on fibre and fewer
weather events affecting service
>Fewer 3
rd
party requests for network relocation
>Reduction in required contribution to Telco Development Levy
>Lower electricity prices and reduced power consumption
H1 FY20 RESULT PRESENTATION
15

▪copper (fixed and variable) fault volumes reduced due to
favourable weather, particularly in Auckland region, and
reduction in total copper connections.
▪fibre maintenance increasing as share of connections grows,
but fault rate is lower on fibre (although costlier to fix).
▪long run annual saving from full copper to fibre migration in
Chorus UFB areas estimated at ~$10m p.a.
24 February 2020
Reactive maintenance: Chorus network
Key drivers for $31m spend
0
5
10
15
20
FibreCopper - fixedCopper -
variable
Reactive spend by type
H1 FY19H2 FY19H1 FY20
0
5
10
15
Chorus UFB Rural (Non UFB) LFC UFB
Copper -reactive spend by area
Note:
▪reactive maintenance excludesspend on proactive maintenance and
customer networks (i.e. premises wiring, no fault found, cancellations)
▪‘fixed’ faults: occur in parts of the network that affect multiple customers
(e.g. cable between exchange and cabinet)
▪‘variable’ faults: only affect one customer (e.g. cable on customer property)
$m
$m
H1 FY20 RESULT PRESENTATION
16

24 February 2020
Capex: Fibre
45,000 brownfields premises passed
FibrecapexH1 FY20
$m
H2 FY19
$m
H1 FY19
$m
UFB communal100126119
Fibre connections & layer 2155147161
Fibre products & systems7107
Other fibre connections & growth282936
Customer retention costs10218
Subtotal300333331
>comprising $26m for UFB1; $74m for UFB2
▪Cost per UFB1 premises passed (CPPP): ~$1,558 vs $1,500 -$1,600 guidance
>includes greenfieldsspend of $20m (FY19: $34m)
>incentive offers linked to fibre connection volumes
>99,000 installations, including 14,000 UFB2
H1 FY20 RESULT PRESENTATION
17

Capex: Fibre connections & layer 2
Fibre connections & layer 2 capexH1 FY20H2 FY19 H1 FY19
Layer 2
$12m$16m$9m
Premium business fibre connections
$6m
800 connections
$4m
600 connections
$4m
600 connections
Single dwelling units and apartments
$98m
99k connections
$98m
91k connections
$100m
95k connections
Backbonebuild: multi-dwelling units and rightsof way
$39m
6.5k completed
$29m
6.5k completed
$48m
9.5k completed
TOTAL SPEND
$155m$147m$161m
▪Cost per premises connected (CPPC):
▪UFB1: $995* vs $1,000 -$1,150 guidance
▪UFB2: $1,179* -in line with the lower end of UFB2 programme guidance of $1,650 -$1,850 in 2017 dollars
* excludes layer 2 and includes standard installations, some non-standard single dwellings and service desk costs
Note: UFB2 programme guidance includes layer 2, backbone costs for multi-dwelling units and rights of way with 10 or fewer premises,
and service desk costs
Connections capex of $155m
18
H1 FY20 RESULT PRESENTATION
24 February 2020

24 February 2020
Capex: Copper and Common
CommoncapexH1 FY20
$m
H2 FY19
$m
H1 FY19
$m
Informationtechnology201717
Building& engineering services8157
Other021
Subtotal283425
CoppercapexH1 FY20
$m
H2 FY19
$m
H1 FY19
$m
Network sustain152519
Copperconnections111
Copper layer2366
Product001
Customer retention costs101012
Subtotal294239
H1 FY20 RESULT PRESENTATION
19
>New IT systems to support customer delivery
>reducing as copper connections decline and pole
replacement programme slows

24 February 2020
Guidance update
>Gross capex: no change to $660m -$700m range
> EBITDA: new range of $640m to $655m
H1 FY20 RESULT PRESENTATION
20
▪Currently tracking towards the top half of gross capex guidance
•Fibre connections & layer 2 capex increased from original range of $260m to $280m to a new
range of $295m to $315m, reflecting new forecast of 180k to 200k fibre connections vs 160k
to 180k previously
▪The revision to our prior range of $625m to $645m reflects:
•positive broadband connections performance and ARPU in H1
•the benefit of cost savings achieved in H1 and expectations for H2
•confirmation of a reduction in the Telecommunications Development Levy
•greater fibre uptake spend in H2

24 February 2020
UFB programme recap
Communal
rollout: $505 -
$565 million
Combined guidance range for UFB2
and 2+
Cost to
connect:
$1,650 -
$1,850
In2017 dollars and including layer
2, backbone costs for MDUs and
rights of way with 10 or fewer
premises and service desk costs
H1 FY20 RESULT PRESENTATION
21
>rollout completed at top of $1.75 to $1.8 billion communal
capex guidance range
>Crown financing will be claimed for ~827,000 premises
passed =$924m
▪includes ~39k greenfieldspremises
>initial programme guidance for UFB1 cost to connect a
standard residential connection is no longer relevant given
end of rollout, non-standard connections and linkage to
2011 dollars
▪we’ll continue to provide an annual view on cost to
connect. FY20 guidance remains $1,000 -$1,150
(excluding layer 2 and including standard installations
and some non-standard single dwellings and service
desk costs)
UFB1
UFB2

24 February 2020
▪supplementary dividend of 1.76 cps payable to non-resident shareholders
▪record date: 17March2020
▪payment date: 14 April 2020
▪Dividend Reinvestment Planavailable to New Zealand and Australian resident
shareholders with no discount to be applied
▪No change to FY20 dividend guidance of 24cps, subject to no material adverse changes
in circumstances or outlook
Interim dividend of 10cps,fully imputed
H1 FY20 RESULT PRESENTATION
22

24 February 2020
Current dividend policy until June 2021
H1 FY20 RESULT PRESENTATION
23
>In August 2019, the Board noted it expects to continue to be able to provide shareholders with
modest dividend growth through to June 2021, subject to no material adverse changes in
circumstance or outlook
>This timeframe reflects:
•the scheduled release of the Commerce Commission’s final determination of our regulated
asset base and maximum allowable revenue for fibre
•following this determination, an expected update from Moody’s on their intention to place
Chorus’ credit metric threshold more in line with other regulated utilities
•Chorus’ expected substantial growth in positive free cash flow as the UFB rollout nears
completion, after 10 years of substantial investment, and connection spend gradually reduces

24 February 2020
H1 FY20 RESULT PRESENTATION
Substantial free cash flow as UFB rollout ends
>UFB communal capexwill begin decreasing
following the end of UFB1 and as the UFB2 rollout
(premises passed) steps down through to December
2022
>UFB connections capexis expected to gradually
taper off, subject to ongoing demand and timing of
future copper migration in selected areas
>Copper capex will continue to trend down as copper
connection numbers reduce across our UFB/LFC zones
>Other ongoing discretionary capex (e.g. footprint
expansion) subject to market drivers and regulatory
investment incentives
0
50
100
150
200
250
300
350
FY17FY18FY19FY20*FY21FY22FY23
UFB capex demands will reduce
significantly from FY21
Communal spendConnection spend
$m
*based on midpoint of FY20 guidance
UFB2 rollout ends Dec 2022
24
Illustrative only

Transitioning to a cash flow based dividend policy
Free cash flow preferred future dividend metric
>The Board recognises that investors have had constrained
returns through the decade long UFB investment cycle and
our focus is on returning surplus cash flows to shareholders
>Our expectation is from FY22 we will transition to a dividend
policy based on a pay-out range of free cash flow that
reflects:
•comparable Australasian infrastructure and utility-like
businesses that pay out the majority of FCF
•a focus on providing shareholders with dividend
predictability, stability and sustainable growth
•robust management of capital expenditure
•maintenance of leverage at levels consistent with a
Baa2/BBB credit rating
>In the event of future credit rating threshold uplift, Chorus
would also consider appropriate capital management activity,
noting the current ascribed capital balance of ~$225m
24 February 2020
Free cash flow*
Net cash flows from
operating activities
Sustaining capital
expenditure
All fibre, copper and common capex,
excluding:
▪UFB communal and future footprint
expansion
▪fibre connections/greenfields
▪customer retention spend
H1 FY20 RESULT PRESENTATION
25
*Note: Chorus will continue to have
elevated UFB related capex through
the transition period

24 February 2020
Net debt/EBITDA
As at
31 December
2019
$m
Borrowings2,876
+ PV of CFH debt
securities (senior)
174
+ Net leases payable255
Sub total3,305
-Cash(678)
Total net debt2,627
Net debt/EBITDA*4.06 times
>S&Pincreased their ND/EBITDA threshold from 4x to
4.25xon a sustained basis
>Moody’shave stated their intention to review their
current 4.2xthreshold in mid 2021
>Financial covenants require senior debt ratio to be
no greater than 4.75 times
>The Board considers that a ‘BBB’ credit rating or
equivalent credit rating is appropriate for a company
such as Chorus.
Ratings agencies are revising threshold views as fibre rollout risk reduces
H1 FY20 RESULT PRESENTATION
26
*Based on S&P and bank covenant methodologies

>up to $1.33 billion CIP financing
available by 2023 (57:43 equity/debt)
>$1,007m drawn at 31 December 2019
>At 31 December, debt of $2,876m comprised:
▪Long term bank facilities of $550m undrawn;
▪NZ bond: $400m and $500m
▪Euro Medium Term Notes $1,976m (NZ$ equivalent at hedged rates)
NZ
$M
24 February 2020
677
400
500
785
514
8484
126
161
2
21
41
58
0
100
200
300
400
500
600
700
800
CIP debt securities available
Face value of CIP debt securities issued
EUR EMTN
NZ Bond
GBP EMTN
Crown financing and debt profile
454454
99
88
203
105
U F B 1
E Q U I T Y
U F B 1 D E B TU F B 2 / 2 +
E Q U I T Y
U F B 2 / 2 +
D E B T
drawnundrawn
NZ
$M
H1 FY20 RESULT PRESENTATION
27

24 February 2020
Regulation: a recap
ParametersSummary of key parameters from the Commission’s draft decision
Crown financingAccepted that Crown financing is debt-like in nature. Calculation inputs to be clarified.
TaxationAccepted that tax losses in pre-implementation period can be carried forward.
TAMRPTax-Adjusted Market Risk Premium updated from 7% to 7.5%.
Credit ratingInconsistent use of Chorus’ actual BBB rating for Crown financing vs BBB+ for WACC.
WACC: 2011-2022SuggestWACC for the unrecovered loss asset will be adjusted on an annual basis from 2011
to 2022, using a diminishing period for calculating the risk free rate each year.
WACC: asset betaProposed a revised asset beta of 0.49, up from 0.46, for both pre and post 2022 periods.
Commission says difficult to quantify the pre-2022 asset beta and unrecovered losses
compensate for higher systematic risk.
WACC: percentile Propose no uplift (above 50
th
percentile) is required to mitigate risk of under-investment. We
believe uplift to 75
th
percentile should apply for initial rollout, consistent with regulatory
practice at the time, and 67
th
percentile from implementation date.
Ex-ante allowance
for asset stranding
10bps (of the average total RAB) ex-ante allowance proposed, from a range of 5 to 40bps, to
be included in the maximum allowable revenue. We believe an accurate allowance requires
confirmation of the total RAB and our experts showed it could be above 40bps.
DepreciationAct requires straight line depreciation for initial RAB valuation, but Commission accepts non-
standard depreciation (i.e. tilted) could be considered post-implementation.
H1 FY20 RESULT PRESENTATION
28

24 February 2020
0.45
0.5
0.55
0.6
0.65
0.7
Ofcom (UK):
Openreach
copper (2020)
Ofcom: fibre to
premises (2020)
Damodaran
(Telco: wireless
and services)
Crown Fibre
Holdings
estimate (2011)
NBN estimate
Reasonableness checks
CNU estimate:
post 2022
CNU estimate:
during rollout
H1 FY20 RESULT PRESENTATION
29
●The Commission’s 0.49asset beta estimate is
below multiple benchmarks and based on
averaging a narrow telco comparator group.
●Using a broader Damodaran telco group removes
potential selection bias and indicates a range of
0.54 to 0.65.
●We estimate an asset beta of 0.65 during UFB
rollout, and 0.60 for the first regulatory period.
●In January Ofcom (UK)released detailed fibre
investment proposals including asset beta: 0.65
for FTTP to reflect higher risks vs 0.57 for
Openreach’s established copper and dark fibre
network (like Chorus’ legacy business)
●The financial loss asset does notcompensate for
systematic or asset stranding risk. The loss asset
simply adjusts the initial RAB to better reflect costs
that weren’t recovered through historic UFB pricing
and demand. Recovery of these costs is not
guaranteed and occurs over a long time horizon.
Draft asset beta does
not reflect a fibre access
network business
Commission
draft 0.49

>Post January 2022: the WACC implied by
the draft decision does not reflect the
nature of a fibre access business
>The Commission’s proposed annualised
approach to calculating the 2011 to 2022
WACC does not reflect a fair return for the
UFB investment programme
24 February 2020
H1 FY20 RESULT PRESENTATION
30
A fair return?
●Chorus committed to UFB1 investment in 2011 and
financed our business accordingly. We could not
revisit our UFB capex programme annually.
●If the Commission chooses not to recognise this as
a single regulatory period, the annual WACC
calculation should still use 10-year risk free rates,
consistent with prior practice taken in unregulated
industries (e.g. fuel market study).
●Crown Fibre Holdings (CFH) detailed the WACC for
a fibre company to Parliament in 2011:
▪CFH estimated a WACC of 7.72% to 8.97%
(TCNZ co-operate scenario) and used a 9%
WACC to establish wholesale pricing
▪The NZ 10-year Government bond rate was used
for the risk-free rate (5.25%)
●A 4.88% fibre WACC is only slightly above the
WACC recently set for electricity distribution
businesses at 4.23% (noting a 7% TAMRP was
used)
●Ofcom’s recent fibre investment proposal suggests:
▪a 6.5% to 6.6% WACC (post-tax, nominal) for a
business investing in FTTP
▪a 5.9% WACC (post-tax, nominal) for Openreach
as a predominantly legacy copper access
business

Winning with fibre
JB Rousselot, Chief Executive Officer
24 February 2020
H1 FY20 RESULT PRESENTATION

Monthly average data usage exceeds 300GB
>Monthly average data usage per connection on our network grew
to 302GBin January 2020
▪372GBon fibre; 205GBon copper
>Fixed line networks carry more than 90% of NZ internet traffic
24 February 2020
200
363
293
0
50
100
150
200
250
300
350
400
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
CopperFibreAverage
Data
usage
(GB)
Monthly average data usage
per connection on our network
H1 FY20 RESULT PRESENTATION
32
0
50
100
150
200
250
300
350
400
2014201520162017201820192020
Chorus total monthly (January)
network traffic
GB
(millions)

24 February 2020
Fibre delivers superior
broadband performance
Source: Measuring Broadband New Zealand, Spring Report,
December 2019, Commerce Commission
>Fibre consistently enables multiple streams of
Ultra High Definition content while other
technologies have variable performance -see
Figure 11.
>Fibre ensures low latency performance. Latency
above 30ms can result in poor experience of
applications such as gaming or video calls -see
Figure 13.
Commerce Commission report shows:
H1 FY20 RESULT PRESENTATION
33

24 February 2020
H1 FY20 RESULT PRESENTATION
34
Our strategic priorities
Win in our
core fibre
business
Optimise
non-fibre
assets
Grow new
revenues
Develop
long term
future of
the
business

24 February 2020
H1 FY20 RESULT PRESENTATION
35
Taking active wholesaling to another level
Win in
our core
fibre
business
Driving market penetration and share
>Chorus managed migration programme
▪20,000 installations completed July to January
▪15% uplift in uptake levels in our campaign areas
▪35% of visited UFB2 homes agree to an installation, leading to
50% uptake within 6 months
>Current marketing incentives
▪MDU installation campaigns
▪retailer credits up to $170 for gigabit connections above mix
thresholds
▪15,000 prezzycard offers sent to offnet consumers

24 February 2020
Fibre continues to grow Wellington connections
Return to connection growth in recently completed UFB areas
1500
1600
1700
Sep-18Dec-18Mar-19Jun-19Sep-19Dec-19
Island Bay exchange
2500
2600
2700
2800
2900
3000
3100
3200
Sep-18Dec-18Mar-19Jun-19Sep-19Dec-19
Karori exchange
No. of
connections
No. of
connections
UFB rollout
UFB rollout
H1 FY20 RESULT PRESENTATION
36
Win in
our core
fibre
business

24 February 2020
H1 FY20 RESULT PRESENTATION
37
Enhancing customer experience
Fastest activation, best speed + experience
Win in
our core
fibre
business
>Chorus led installations: achieving 8.1
customer satisfaction vs 7.9 for regular ‘on-
demand’ ordering
>Wi-Fi ONT:~130,000+ Wi-Fi capable ONTs
installed to date; RSP trials underway
>Small business plans: ~1,500 connections
with enhanced restoration target
12
22
30
50
0
10
20
30
40
50
60
50 or less1002001,000
Net promoter score
(NPS)
by fibre speed
Fibre plan speed (Mbps)
NPS

202020212022-2024
1
st
regulatory period
2025-2030
2
nd
regulatory
period
•Mid-year: Final Input
Methodologies decision
•Mid-year: copper
withdrawal and 111 codes
•Q4: Draft Price Quality
path decision
•June: Final Price Quality
decision
•Commission may choose to review
revenue cap framework and
anchor products
•Commission required to review
copper pricing framework no later
than 2025
24 February 2020
Regulatory framework
H1 FY20 RESULT PRESENTATION
38
Price caps + annual inflation adjustment on
contracted UFB products
Price caps + inflation
adjustment on fibre voice and
broadband ‘anchor’, and direct
fibre access service
Copper pricing in non-fibre areas capped at 2019 levels + CPI
(Dec 2019: line only $31.68; broadband $42.35)
Copper network to be deregulated and service can be withdrawn subject to Chorus’ choosing and minimum
consumer protection requirements
Unbundled fibre available in UFB1 areas on commercial basis
Extends to UFB2
areas
Regulatory
process
Fibre pricing
Copper in
UFB areas
Unbundling
Copper in
rural areas
Pricing subject
to price quality
determination
Win in
our core
fibre
business

24 February 2020
H1 FY20 RESULT PRESENTATION
39
Optimise
non-fibre
assets
Evaluating our future
network needs
>robust criteria for capital prioritisation, reflecting
network horizons and competitive features
across zones (i.e. UFB, LFC, or Rural)
>review our ongoing property portfolio
requirements
>maximise revenue opportunities from existing
infrastructure assets (e.g. towers, poles)
>continue promoting uptake of our VDSL
vectoring investment in rural and LFC areas
>identify opportunities to work with Government
on bridging digital divides

24 February 2020
H1 FY20 RESULT PRESENTATION
40
Grow new
revenues
▪2,000Mbps and 4,000Mbps plans for residential and
business in selected centres
▪symmetric speeds up and down; new ONT required
▪Wi-Fi 6 capable devices now available, enabling
enhanced speeds and capacity for more devices
▪Wi-Fi to dominate indoor connectivity given cost,
performance and device availability
▪initial Mt Eden space filled; considering more sites
▪early CDN use case evolving to edge computing
▪leveraging with other Chorus products (e.g. backhaul)
Opportunities to leverage our network
More to come.....

24 February 2020
H1 FY20 RESULT PRESENTATION
41
Develop
long term
future of
the
business
>Organisational change as we move from build to operate
▪Customer Network Operations
▪ongoing shift from legacy to digital platforms
>Develop asset management capability for new regulatory
model
>Align supplier partnerships with network needs
Developing our people, capabilities and
operating model
7
7.2
7.4
7.6
7.8
8
8.2
8.4
0
5
10
15
20
25
30
35
40
45
50
MayAugustNovemberFebruary
Employee engagement
Net Promoter Score (lefthand axis)Engagement (righthand axis)

24 February 2020
H1 FY20 RESULT PRESENTATION
42
Any questions?

0
200000
400000
600000
800000
1000000
1200000
1400000
31-Dec-1831-Mar-1930-Jun-1930-Sep-1931-Dec-19
24 February 2020
31 Dec
2018
31 March
2019
30 June
2019
30 Sept
2019
31 Dec
2019
Unbundled copper
(no broadband)
39,00031,00024,00021,00018,000
Baseband copper
(no broadband)
244,000233,000214,000201,000192,000
Copper ADSL
(includes naked)
374,000352,000327,000304,000283,000
VDSL
(includes naked)
295,000283,000270,000257,000242,000
Fibre broadband
(GPON)
517,000556,000599,000645,000681,000
Data services
(copper)
5,0005,0005,0004,0004,000
Fibre premium
(P2P)
12,00012,00011,00012,00012,000
Total connections
1,486,0001,472,0001,450,0001,444,0001,432,000
Fibre (GPON)
VDSL
Copper ADSL
Unbundled copper
Baseband copper
>1,206,000 broadband connections comprises:
▪681,000 fibre (GPON) connections
▪525,000 VDSL/ADSL (copper) connections
Business premium
Appendix A: Connection and market trends
H1 FY20 RESULT PRESENTATION
43

24 February 2020
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018
Q42018
Q1 2019Q2 2019Q3 2019
Broadband uptake by retailer (all technology)
SparkVodafoneOrconVocus2degreesTrustpowerROM
Source: IDCSource: IDC
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q3 2019
NZ broadband market –by technology
Chorus xDSLChorus mass market fibreChorus premium fibre
Local fibre companies (UFB)Other fibre networksOther xDSL
Vodafone cableFixed (mobile) wirelessLegacy fixed wireless, satellite
AppendixA:Connectionandmarkettrends(continued)
H1 FY20 RESULT PRESENTATION
44

0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Dec-18Mar-19Jun-19Sep-19Dec-19
% uptake
relative to
capable
addresses
UFB1 uptake
24 February 2020
H1 FY20 RESULT PRESENTATION
45
AppendixA:Connectionandmarkettrends(continued)