Chorus updates FY20 capex guidance, holds EBITDA guidance

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

Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

27 March 2020

Chorus updates FY20 capex guidance, holds EBITDA guidance

Chorus has suspended non-essential field activity to support the Government objective of
eliminating the risks of spreading COVID-19.

This means certain planned capital expenditure will effectively be deferred for the duration
of the month-long isolation period. On this basis, we are reducing our FY20 gross capital
expenditure guidance from a prior range of $660 million to $700 million, to a new range of
$610 million to $650 million. Guidance for individual capital expenditure categories is not
being updated at this time.

FY20 EBITDA guidance remains unchanged.

Examples of planned activity that we are suspending include:
• UFB communal rollout
• subdivision build
• proactive pole replacement
• non-essential network relocation
• renewal and maintain service activity unless our network is at risk of immediate
failure, and
• door-to-door fibre campaigns.

We are continuing to connect premises to copper and fibre where the customer has no
existing fixed line broadband service, or they have essential business or educational
requirements not met by an existing broadband service. Broadband provisioning work is also
being undertaken where customers can upgrade from ADSL to VDSL without the need for a
technician visit, or a fibre connection is already in place.

Network restoration activity is continuing as usual, unless that work is inconsistent with the
principles of the isolation period.

We are working with the broader telecommunications industry to support their delivery of
essential connectivity. Consistent with this approach, we have decided to delay the annual
CPI increase of wholesale fibre products until at least 1 October 2020 and potentially longer.

Our fixed line network is in very good shape to support the significant increase in bandwidth
demands as people now work and learn from home.

Authorised by:
David Collins
Chief Financial Officer

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