Spark New Zealand Limited H2 FY20 Results

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand


MARKET RELEASE
26 August 2020

Spark New Zealand delivers to guidance with strong
performance in key markets and rapid response to COVID-19

• FY20 EBITDAI
1
guidance and dividend delivered – rapid response to COVID-19 and the
associated impacts materialising in the last quarter moderated FY20 impact
• Return to top-line growth, following two years of flat revenues
• Earnings growth underpinned by Spark’s market momentum and focus on cost discipline
• Mobile service revenue growth outperformed the market
2


Spark New Zealand (Spark) today announced revenue growth of 2.5% to $3,623 million for the
year ending 30 June 2020. Following a strong performance in the first half, Spark maintained its
momentum to achieve mobile service revenue growth of 3.9%, and double-digit growth in
cloud, security and service management revenue, which increased 10.8%.

In a year that was enormously challenging for all New Zealanders, Spark moved quickly to
mitigate COVID-19 impacts as much as possible, while maintaining essential services to keep
the country connected. Impacts included the loss of international roaming revenues, retail
revenue reductions from store closures, the removal of data overage charges, and an increase
in bad debt provisioning as a result of the economic impact of COVID-19 on Spark’s customers.
Some benefits were also realised from increased demand for collaboration products to support
remote working. Overall COVID-19 had a total negative EBITDAI impact of approximately $25
million in FY20.

Operating expenses increased as the benefit of cost-out activities were reinvested to fund
growth in key markets and labour capitalisation reduced in some areas.

Spark’s strong performance in key markets, continued focus on cost discipline and the timing of
COVID-19 impacts materialising in the last quarter, resulted in EBITDAI growth of 2.1% to
$1,113 million, placing the result in the mid-range of guidance. Net profit after tax increased
4.4% to $427 million, primarily driven by growth in EBITDAI and lower tax expense
3
.

Spark announced an H2 FY20 total dividend per share of 12.5c per share, 100% imputed,
bringing the total FY20 dividend to 25c per share.

Spark Chair Justine Smyth said: “FY20 marks the completion of our 3-year plan, which has
transformed Spark from a traditional telco to an end-to-end digital services company and
delivered compound annual growth in shareholder returns of 13%
4
.


1
Earnings before interest, tax, depreciation, amortisation, and investment income
2
Market share estimates sourced from IDC
3
Lower tax expense due to depreciation allowances being reintroduced for commercial building as part of the Government COVID-19 assistance package and a
higher proportion of non-taxable gains
4
Total shareholder return compound annual growth rate for the three years from 1 July 2017 to 30 June 2020

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand


“Agile ways-of -working have improved our speed to market and customer focus, and we
have seen a significant increase in both customer and people engagement during this time. Our
sustained network investment has underpinned our ability to innovate and grow and provided
secure connectivity for our country during COVID-19.


“It is a credit to Spark’s people that we have delivered such a strong result, with growth on
nearly all key metrics, despite the impact of COVID-19 in the final quarter.

“We are now faced with a more uncertain economic climate, and we will continue to be
challenged as a country, as a business and as individuals to adapt to the challenges COVID-19
brings. Our long term focus on simplifying and digitising our customer experiences, supporting
digital transformation in the business community, and transitioning New Zealand off legacy
systems to modern technologies, is more relevant now than ever before and we are ready to
play our role in supporting New Zealand’s economic recovery.”

Spark moved quickly to mitigate the impacts of COVID-19 while maintaining its strong market
momentum coming out of the first half.

Spark CEO Jolie Hodson said: “It is fair to say this will be a year remembered more for the last
quarter than the first three, and it is a testament to the agility and commitment of our people
that we were able to adapt quickly, support our customers and deliver what we said we would
in a challenging environment.

“Our customers were quick to take up our new Endless data mobile plans, which contributed to
mobile service revenue growth that outperformed the market. We grew wireless broadband
connections by 16,000, however our aspirations are higher – and with the continued strong
performance of our network during COVID-19 we have the confidence to accelerate this further
in FY21.

“At a time when having an internet connection is more essential than ever before, we have
leaned in and accelerated the rollout of our not-for -profit broadband product Skinny Jump –
connecting more than 4,500 additional homes since COVID-19 hit.

“We are now entering a more challenging period as a country, and we expect the impact of
COVID- 19 to be more material in FY21. The recent return to Alert Level three in Auckland and
Alert Level two more broadly has reminded us that this challenge is not behind us, and we
moved quickly to lift broadband data caps for our customers once again. We know it is vital for
New Zealand that we continue to invest in smart infrastructure during this time, and we are
focussing our FY21 capital expenditure on supporting New Zealand’s economic recovery,
including through the rollout of 5G and investment in rural connectivity.

“We will continue to take a disciplined approach to cost management, ensuring we have the
flexibility to respond as economic conditions change.”

Spark confirmed FY21 EBITDAI guidance of $1,090 million to $1,130 million and a FY21
dividend of 23-25c per share, 100% imputed.

The details of Spark’s next three-year strategy will be shared at an Investor Briefing on 16
September 2020. The evolved strategy will build on the momentum and foundational
capabilities Spark has established through the successful execution of its current strategy.

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand



Authorised by:
Alastair White
GM Capital Markets

- ENDS –

Media queries: Investor queries:
Leela Gantman Alastair White
Corporate Relations Director GM Capital Markets
+64 (0) 27 541 6338 +64 (0) 21 228 3855

---

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




Results for announcement to the market
Name of issuer Spark New Zealand Limited
Reporting Period 12 months to 30 June 2020
Previous Reporting Period 12 months to 30 June 2019
Currency NZD – New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
$3,623,000 2.5%
Total Revenue $3,623,000 2.5%
Net profit/(loss) from
continuing operations
$427,000 4.4%
Total net profit/(loss) $427,000 4.4%
Final Dividend
Amount per Quoted Equity
Security
NZD$0.12500000 (comprised only of an ordinary dividend)
Imputed amount per Quoted
Equity Security
NZD$0.04861111
Record Date 18 September 2020
Dividend Payment Date 2 October 2020

Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
As at 30 June 2020
NZD$0.29
As at 30 June 2019
NZD$0.26
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
The change in Spark’s earnings before finance income and
expense, income tax, depreciation, amortisation and net
investment income (EBITDAI) is provided in the addendum.
Authority for this announcement
Name of person

authorised
to make this announcement
Stefan Knight, Finance Director (CFO)
Contact person for this
announcement
Alastair White, GM Capital Markets
Contact phone number +64 (0) 21 228 3855
Contact email address investor-info@spark.co.nz
Date of release through MAP

26 August 2020

Audited financial statements accompany this announcement.

Addendum:

Amount (000s) Percentage
change
Earnings before finance income and expense, income tax,
depreciation, amortisation and net investment income
(EBITDAI)
NZD$1,113,000 2.1%

---

Distribution Notice






Section 1: Issuer information
Name of issuer Spark New Zealand Limited
Financial product name/description Ordinary shares
NZX ticker code SPK
ISIN (If unknown, check on NZX
website)
NZ TELE0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies Yes
Record date 18 September 2020
Ex-Date (one business day before the
Record Date)
17 September 2020
Payment date (and allotment date for
DRP)
2 October 2020 AUST & NZ;
13 October 2020 USA
Total monies associated with the
distribution
NZD $229,630,618
(1,837,044,943 shares @ $0.125 per share)
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD – New Zealand Dollar
Section 2: Distribution amounts per financial product
Gross distribution NZD$0.17361111
Gross taxable amount NZD$0.17361111
Total cash distribution NZD$0.12500000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount NZD$0.02205882
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
NZD$0.04861111
Resident Withholding Tax per
financial product
NZD$0.00868056

Section 4: Distribution re-investment plan
DRP % discount (if any)
2%
Start date and end date for
determining market price for DRP
17 September 2020 23 September 2020
Date strike price to be announced (if
not available at this time)
23 September 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

Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
21 September 2020
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Stefan Knight, Finance Director (CFO)
Contact person for this
announcement
Alastair White, GM Capital Markets
Contact phone number +64 (0) 21 228 3855
Contact email address investor-info@spark.co.nz
Date of release through MAP

26 August 2020

---

Annual Report 2020
Now more than ever.

COVID-19 has challenged so much of what Kiwis have always held
dear. This year, suddenly separated from the daily interactions that
we treasure, we did what we’ve never done before: we discovered
new and powerful ways to stay connected digitally with those who
matter to us. We kept our distance, and yet we seemed more
together as a nation than many other parts of the world.
Spark New Zealand Annual Report 2020Connections matter
Helping Kiwis stay
connected during COVID-19.

1
During lockdown we have been reminded that as a ‘lifeline utility’
the role we play in keeping people connected is incredibly important.
For most Kiwis, almost every interaction with the outside world has been
enabled by a phone or internet connection. COVID-19 has been the
biggest test of our infrastructure as Kiwis moved to work, learn and be
entertained at home. Years of sustained investment to build capacity into
our network has meant that New Zealand has been well served at a time
when telecommunications services truly became an essential service.
1
Connections matterSpark New Zealand Annual Report 2020

As New Zealand went into
lockdown our wireless
broadband network traffic
increased by
40%
with more than 17,000 terabytes of data
used in total. Calling volumes on mobile
increased by 60% at peak, and Kiwis
benefited from over 7,200 terabytes of free
data to work, learn and connect from home.
We worked with our business
and enterprise customers to
r apID ly
expanD
and enable secure remote working
capability through IT solutions and
collaboration tools.
We helped our customers
stay
COnneCteD
by removing data limits on capped
broadband plans, waiving late payment
fees and not terminating services for those
experiencing financial hardship.
2
Spark New Zealand Annual Report 2020
Connections matter

To meet customer needs we
aDDeD extra
CapaCI t y
to 14 cell sites around the country and
deployed six ‘cell sites on wheels’ (COWs) to
further expand capacity in locations that
were experiencing high network loading.
These efforts resulted in speed increases of
between 70% and 160% for these locations.
Our teams adapted quickly to
repurpose 39 retail stores as
Emergency Distribution Centres
to provide hardware to
customers with urgent needs.
1,000
retail, call centre and Business Hub team
members were set up with ‘at-home kits’
to help our customers remotely.
Over
We’ve been doing our bit
to help bridge the digital
divide since 2016, when we
first launched
JUMp
our ‘not-for-profit’ broadband service. Since
the relaunch of the programme in March
2020 the reach of Jump has almost doubled
to connect 9,559 homes by the end of FY20.
This was achieved during COVID-19 by
working in partnership with community
organisations, and with the Ministry of
Education to connect households with
school-aged children around the country who
didn’t have an internet connection at home to
ensure as many kids could participate in
distance learning as possible.
3
Connections matterSpark New Zealand Annual Report 2020

We are evolving our approach to reporting to show a more integrated view of our performance
across financial and non-financial measures. Our 2019 Annual Report combined our financial
statements with non-financial performance measures, adopting the Global Reporting Initiative
(GRI) Standards, the most widely used global sustainability reporting standard.
This year’s report is a further evolution and is our first integrated report. Integrated reporting
considers the creation of value over the short, medium and long term, thinking holistically
about the resources and relationships the organisation uses or affects, and the dependencies
and trade-offs between them as value is created.
The report is prepared in accordance with the International <IR> Framework and the GRI Core
Option. We have not sought external assurance for the non-financial information in this report.
This report covers the activities of Spark New Zealand Limited and its subsidiaries. The report is
for the period 1 July 2019 to 30 June 2020. This report is dated 26 August 2020 and is signed
on behalf of the Board of Spark New Zealand Limited by Justine Smyth, Chair and Charles
Sitch, Chair, Audit and Risk Management Committee.
Key Dates
Investor Strategy Briefing 16 September 2020
Annual Meeting 6 November 2020
FY21 half-year results announcement 24 February 2021
FY21 year-end results announcement 18 August 2021
About this report
Justine Smyth, CNZM
Chair
Charles Sitch
Chair Audit and Risk
Management Committee
Spark New Zealand Annual Report 2020
4
Connections matter

Connections matter
How we create value
6
About Spark
8
Spark performance snapshot FY20
9
Chair and CEO review
10
Our performance
14
Our customers
16
Our network and technology
22
Our people
26
Our environment
32
Our communities
36
Our Board
40
Our Leadership Squad
44
Our governance and risk management
46
Our suppliers
49
Leadership and Board remuneration
50
Financial statements
Financial statements
53
Notes to the financial statements
58
Independent auditor’s report
98
Other information
Corporate governance disclosures
103
Managing risk framework roles and responsibilities
112
External initiatives and membership of associations
113
Material issues
114
Global Reporting Initiative (GRI) content index
115
Glossary
117
Contact details
118
Contents
5
Connections matterSpark New Zealand Annual Report 2020

How we create value
WHAT WE RELY ON
Social capital
Our customers
Consumers and organisations that are
enabled by our products and services
A culture that develops
and empowers
our people
OUR BUSINESS MODEL
Āwhinatia ngā tāngata katoa o Aotearoa
kia matomato te tipu i te ao matihiko.
TO HELP
WIN BIG
IN A DIGITAL WORLD
Our Values
Whakamana, We Empower
Matomato, We Succeed Together
Tūhono, We Connect
Māia, We are Bold
Financial capital
Financial capital
Equity, debt and cash generated
through our operations
Manufactured + intellectual capital
Our network
and technology
Our mobile sites, data networks, systems,
processes and digital services capability
Human + intellectual capital
Our people
Skilled, specialised and diverse workforce
that is the heart of our business
Natural capital
Our environment
Energy, materials and impacts of
our operations
Social + human capital
Our communities
Our communities around New Zealand and the
communities across our global supply chain
6
Spark New Zealand Annual Report 2020
How we create value

OUTPUTS FY20
OUTCOMES ON PAGES 8, 9 AND 13
Investment in resilient,
adaptable infrastructure
for New Zealand’s future
Innovation to create
value for Spark and
our customers
Providing leading products
and services that connect and
enable New Zealanders
Enhanced network
and technology
• Resilient network through COVID-19
• 40% increase in wireless broadband traffic
• 60% increase in mobile calling at peak
• 5G rollout under way
Supporting our customers’ own business models
and their value creation for New Zealand
Connected customers
• 2.519 million mobile connections
• 709,000 broadband connections
• Increase in customer interaction Net
Promoter Score
• Customers supported to adapt to COVID-19
Financial returns
• $3,623 million operating revenues and other gains
• $427 million net earnings
• 25 cents per share dividend
Engaged workforce
• Positive growth in employee
Net Promoter Score
• 50/50 gender split on Board and
Leadership Squad
• Investment in training
Environmental impact
• Net emissions 26.9 kilotonnes CO
2
-e
• 501 tonnes e-waste recovered
• 24,900 mobiles re-used/recycled

Supported communities
• Skinny Jump reaching 9,559
high-need households
• 501 employee volunteer days
7
Connections matterSpark New Zealand Annual Report 2020

Spark New Zealand Annual Report 2020
Spark is New Zealand’s largest telecommunications
and digital services company. Our customers range
from consumers and households to small
businesses, government and large enterprises.
Across all our services – mobile, broadband, cloud
services, digital services and entertainment – we
have relevance for almost every New Zealander.
98%
of New Zealanders
reached by our
4G network
709K
broadband
connections
2.519M
mobile
connections
5,224
New Zealand
employees
66
Retail Stores
26
Regional
Business Hubs
Brands and businesses
Fibre Transport Network
Data Centres
Earth Station Satellite Link
Corporate Offices
Tasman Global Access Cable
Connections to Australia
Connection to USA
Southern Cross Cable
IT infrastructure and
cloud services
Business
telecommunications
provider
Big-data analytics
business
Pre-pay mobile
and broadband
Cloud consulting
and Business
Transformation
Sports streaming
service
Digital trust and
verifiable data
About Spark
8
Spark New Zealand Annual Report 2020
About Spark

1 Earnings before finance income and expense, income tax, depreciation, amortisation
and net investment income (EBITDAI) and capital expenditure are non-Generally
Accepted Accounting Practice (non-GAAP) measures. These measures are defined
and reconciled in note 2.5 of the financial statements. Capital expenditure excludes
spectrum additions of $13 million.
2 Interaction Net Promoter Score, a measure of customer engagement.
3 Net Promoter Score, a measure of employee engagement.
Spark performance snapshot FY20
Operating revenues
and other gains
$3,623M
2.5%
EBITDAI
1
$1,113M
2.1%
Net earnings
$427M
4.4%
Mobile revenue
$1,288M
1.3%
Broadband revenue
$680M
-0.7%
Cloud security and service
management revenue
$443M
10.8%
Voice revenue
$391M
-11. 3 %
Capital expenditure
1
$374M
-10. 3%

Employee NPS
3
+66
25 points
Consumer and
small business iNPS
2
+33
10 point s
9
Connections matterSpark New Zealand Annual Report 2020

We got off to a fast start, delivering the
strongest first half results in recent years.
Revenues increased 4.0%, and we had a
standout performance in mobile – capturing
90% of total market growth in high-margin
service revenue, an increase of 5.5% on the
prior year. Revenues also benefited from
cloud, security and service management
growth, the introduction of Spark Sport and
a moderation in the rate of legacy voice
declines as fixed-line voice becomes a
smaller part of the business.
It is fair to say, however, that this year will be
remembered more for the last quarter than
the first three. When our country first faced
one of the greatest health and economic
challenges of our lifetimes, the way
New Zealanders work, learn and connect
changed dramatically overnight. For Spark,
COVID-19 highlighted more than ever before
the importance of our purpose – to help all
New Zealanders win big in a digital world. At
a time when a phone or internet connection is
a lifeline to the outside world, and a pre-
requisite to continue working and studying,
we have been reminded just how much
connections matter, and of the critical
importance of the services we provide for
our customers and our country.
Responding to COVID-19
Like many businesses we had to walk two
paths simultaneously – responding to the
situation in front of us, protecting our people
and mitigating the immediate impact on
our business, while planning for multiple
potential futures.
The health and safety of our people was
paramount, and we moved early to put in
place appropriate protocols to reduce people
movement, adhere to physical distancing
requirements and to uphold strict hygiene
standards. We identified team members who
were more vulnerable to COVID-19 and
worked with them to keep them safe.
As a lifeline utility we must maintain critical
services during emergency situations,
including all COVID-19 alert levels. To ensure
we were able to do this we put additional
protections in place to keep our critical
services team members separated from our
broader workforce, including our 111 team
and Network Operations Centre. Our
technology team monitored our network
continually and increased capacity wherever it
was needed – including 14 cell-site upgrades
and the deployment of six ‘cell sites on
wheels’ (COWs). Following years of sustained
investment our network performed
exceptionally well, despite our wireless
broadband network traffic increasing by 40%
and calling volumes on mobile increasing by
60% at peak during the lockdown.
We moved quickly to support our
customers and communities, recognising
how important our services were during
these exceptional circumstances.
To ensure customers could stay connected we
removed data limits on capped broadband
plans, waived late payment fees, suspended
disconnections, and put in place special
measures for customers experiencing financial
hardship. Our customers benefited from over
7,200 terabytes of free data to work, learn and
connect from home.
Tēnā koutou.
We started FY20 with a clear focus – delivering what we said
we would in the final year of our three-year strategy and setting
a path for the next three years, to take Spark into the future.
Connections matter
10
Spark New Zealand Annual Report 2020
Chair and CEO Review

We also set up Emergency Distribution
Centres to support customers with essential
equipment needs, repurposing 39 retail
stores across the country. Over 1,000 of our
retail, call centre and Business Hub team
members transitioned rapidly to new ways of
working by supporting our customers from
home. We worked in partnership with our
business and enterprise customers to enable
them to make the same shift, expanding and
enabling secure remote working capability
through IT solutions and collaboration tools.
The rapid shift from physical to digital also
highlighted issues of digital equity and
inclusion, one of our long-term focus areas.
Since we launched Jump, our not-for-profit
broadband service, in 2016, it had grown
through our network of community partners
to support 5,000 households across
New Zealand. Since COVID-19 hit we have
almost doubled the reach of Jump to connect
another 4,500 homes. This included working
with the Ministry of Education to support
homes with school-aged children around
the country who didn't have an internet
connection, ensuring they could continue
to participate as schools switched to
digital learning.
A strong FY20 result in
a challenging context
Our focus on delivery and execution of our
strategy, our strong half-year performance,
and the timing of COVID-19 impacts in the
last quarter of the financial year meant we
were well placed to adapt and respond to the
impact of the pandemic on our business.
Justine Smyth, Chair and
Jolie Hodson, Chief Executive
As a result, we delivered earnings above
the mid-point of our financial guidance
range and continued to pay shareholders
a dividend.
Operating revenues and other gains grew
2.5%, or $90 million, with standout
performances in mobile service revenue, and
cloud, security and service management.
Coupled with our continued focus on cost
management, this resulted in a 2.1% growth
in EBITDAI to $1,113 million.
The effects of COVID-19 did have an impact
on our financial performance, predominantly
through the loss of higher-margin roaming
revenues, retail revenue reductions due to
store closures, removing broadband data
overage charges, and our Spark Sport
platform being offered free of charge while
live sport was suspended globally. At the
same time we saw an increase in the demand
for collaboration products to support the shift
to working from home. Overall COVID-19
had a total negative EBITDAI impact of
approximately $25 million in FY20.
A continued focus on tight cost management
mitigated these impacts and enabled us to
invest in current and future growth initiatives,
which ultimately saw our total operating costs
increase by $67 million or 2.7%. In FY20 these
investments included the launch of cloud and
business transformation consultancy Leaven,
the growth of Spark Sport, the acquisition of
NOW Consulting as part of data analytics
business Qrious and the launch of emerging
technology business, Mattr.
Over the year we also tightened our focus
on our core business by completing the
divestment of Lightbox and CCL’s network
assets and the successful integration of our
cloud and ICT businesses Revera and CCL.
Our EBITDAI growth was partly offset by
higher interest costs due to increased debt
and lower investment income as Southern
Cross dividends ceased. Our taxation
expense reduced by $20 million (11.8%) due
to the Government reinstatement of tax
depreciation deductions on buildings and a
higher portion of non-taxable other gains.
As a result, net earnings were $427 million,
up 4.4%.
11
Connections matterSpark New Zealand Annual Report 2020

Closing out our
three-year strategy
This year marks the completion of our
three-year strategy. This was a bold strategy
to transform our business. We moved to Agile
ways-of-working, which has improved our
speed to market and customer focus, and our
employee Net Promoter Score, which
measures engagement, has risen year on
year. We have grown market share and
mobile services revenues while maintaining
our focus on cost discipline. And we have
diversified our business from traditional
telecommunications services to operate as
an end-to-end digital services company.
This hard work has translated into improved
customer experiences. Our customer
engagement scores for consumers and small
businesses, measured in interaction NPS, rose
10 points over the year. This is supported by
a reduction in the number of customers
needing to contact us to troubleshoot
issues, and an increase in the use of online
support channels.
We invested in our network and our
technology, re-engineering our IT stack
and investing for capacity over a sustained
period, which has built a point of competitive
advantage. We launched 5G wireless
broadband services in heartland
New Zealand, and we are poised for a
national rollout of both wireless broadband
and mobile 5G services, enabled by the
allocation of 5G spectrum announced in
May 2020.
The rollout of 5G will support wireless
broadband uptake, as the network delivers
greater capacity and speeds over time. 5G
will be a big part of how we will continue to
create a wireless future for New Zealand.
Looking to the future –
our next three-year strategy
We were due to launch our next three-year
strategy to the market in April. However
given the COVID-19 situation we needed
to pause and review. We will now share our
strategy on 16 September 2020.
Trends that have shaped our thinking for
some time now are accelerating due to the
disruption of COVID-19, including the
acceleration of consumer services from
physical to digital, the increasing pace of
business transformation and digitisation, the
exponential customer demand for data, and
the greater emphasis being placed on
connectivity as a basic social need. The recent
return to Alert-Level 3 in Auckland, and
Alert-Level 2 for the rest of the country, has
reminded us that the immediate challenge of
COVID-19 is not behind us. However, there is
also a longer-term opportunity for
New Zealand to accelerate its own digital
transformation, and rebuild for a future that is
more connected, productive and sustainable.
While we are operating in more uncertain
times and preparing for a more challenging
year ahead of us, we believe we are well
positioned for the ‘new normal’ we find
ourselves in. We have a strong balance sheet,
a leading network, a diversified business and
an agile team.
Our next three-year strategy will be an
evolution of our current direction, building on
the momentum of the prior three years and
the evolving trends shaping our markets. It
will be focused on a set of core capabilities
that will underpin our continued strong
performance in our key markets and in new
markets where we see significant opportunity
for growth, such as digital health and the
Internet of Things (IoT).
Sustainability and our role
in economic recovery
As New Zealand responds to COVID-19
sustainability will remain a core focus for our
business. Rebuilding our economy will take
concerted and coordinated effort. The country
will be looking for leadership from businesses
with the scale to make a difference.
As such we have reviewed and refined our
approach to sustainability and updated our
Macro trends are accelerating
A seismic shift of business and
society from physical to digital.
An unprecedented recessionary
event requiring a period of nation
building and a focus on affordability.
Exponential growth in data –
data is the future currency.
Increasing pace of
technology disruption and
business transformation.
Greater emphasis on connectivity
as a basic social need.
Explosion of
connected devices.
$
12
Spark New Zealand Annual Report 2020
Chair and CEO Review

framework to reflect this new context and
opportunity. A key focus is on our own
sustainability, so that we can then support
New Zealand’s recovery and economic
transformation. The principle of equity is at
the heart of our approach, and we remain
committed to working in partnership to make
a positive contribution to digital equity and to
continue our focus on diversity and inclusion.
Sustainability will be integrated into our new
strategy as a key pillar, A positive digital future
for all of New Zealand. This sits alongside the
work of the Spark Foundation and Te Korowai
Tupo – our Māori strategy. We recognise that
how we work will be critical. We will work in
partnerships based around shared values,
underpinned by the principles of
kaitiakitanga and manaakitanga.
Thank you
We are both personally very proud of how
Spark has responded to the challenges of
FY20 and, most importantly, how we have
focused on supporting our customers at a
time when connections mattered more than
ever. This would not have been possible
without the dedication and hard work of our
own team of five thousand, who modelled
our values and never lost sight of our
purpose under challenging circumstances.
We would also like to thank our investors,
customers and partners for their continued
support of Spark.
Noho ora mai
We will work alongside New Zealand to
harness the power of technology and create
a positive digital future for all.
• Invest in the capabilities of our people, equipping them
to thrive in a digital future
• Reduce our footprint and meet our emissions target of
-25% by 2025, investing in our fleet and infrastructure
• Be responsible, transparent and accountable for our
social and environmental performance
• Focus our infrastructure investment on supporting
New Zealand’s recovery and transformation
• Support Kiwi businesses to adapt to become more
productive, resilient and sustainable through technology
• Support New Zealanders to upskill and adapt to new
ways of working
•Extend the reach of Skinny Jump target to benefit more
households – 20,000 by June 2021
•Partner alongside the Spark Foundation to address
barriers to digital equity, including access, skills, trust
and motivation
• Champion diversity and inclusion in our business and
our communities
FOR ALL OF
A POSITIVE
DIGITAL FUTURE
Be bold in our business to have a
positive impact on our communities
and the environment.
Create a
Sustainable Spark
Economic Recovery
and Transformation
Help New Zealand transform to a
high-productivity, low-carbon
economy.
Champion
Digital Equity
Champion digital equity so all
New Zealanders have the opportunity
to thrive in a digital future.
Our new sustainability framework
Justine Smyth, CNZM
Chair
Jolie Hodson
Chief Executive
13
Connections matterSpark New Zealand Annual Report 2020

Our performance
Operating revenues and other gains
• Mobile service revenue growth of $32 million, or 3.9%, was driven
by strong pay-monthly connection growth, up 79,000, or 6.3%, combined
with increased adoption rates of our Endless plans
2
. Strong mobile service
revenue growth in H1 FY20 of $22 million, or 5.5%, moderated in H2 FY20
to $10 million, or 2.4%, as a result of COVID-19 impacts, such as reduced
roaming revenues.
• Cloud, security and service management revenue growth of $43 million,
or 10.8%, was due to increased penetration of core cloud services and the
ongoing shift of customers to more flexible and future-proofed
cloud-based IT models, combined with the onboarding of new contracts.
• Procurement and partners revenue growth of $43 million, or 11.8%, was
due to strong sales of software and hardware.
• Voice revenue declines due to a combination of connection loss and
substitution moderated in FY20 to $50 million, or 11.3%, as voice revenue
becomes a smaller part of the business, combined with increased
conferencing and 0800 calling during the COVID-19 lockdown period.
• Other operating revenue grew $16 million, or 14.0%, largely
due to strong contributions in our Spark Sport and Qrious
growth businesses.
$ MILLION
MOBILE
BROADBAND
VOICE
CLOUD, SECURITY
AND SERVICE
MANAGEMENT
PROCUREMENT
AND PARTNERS
MANAGED DATA,
NETWORKS
AND SERVICES
OTHER OPERATING
REVENUES AND
OTHER GAINS
FY20
FY19
400
600
800
1,000
1,200
1,400
200
0
500
1,000
1,500
2,000
$ MILLION
FY20
FY19
PRODUCT
COSTS
LABOUROTHER
Operating expenses
• Product costs increased $33 million, or 2.1%, broadly in line with revenue
trends, with higher costs associated with cloud, security and service
management, procurement and partners and Spark Sport content, being
partly offset by lower mobile handset costs and voice product costs.
• Labour costs have increased $36 million, or 7.6%, due to increased
investment in support of revenue growth in areas such as Cloud, and wage
inflation. The portion of labour costs expensed following a shift in focus to
optimising existing products instead of large capital programmes also drove
an increase. The increase was partly offset by reduced labour costs in other
parts of the business as legacy products shrink and interactions move
to digital.
• Other operating expenses were broadly flat year-on-year, with lower
marketing expenses being largely offset by an increase in bad debt
provision levels, as a result of the economic impact of COVID-19.
Other
• Net investment income was $13 million lower largely due to no Southern
Cross dividends in FY20 as expected.
• Depreciation and amortisation was $15 million lower for property, plant
and equipment and intangibles and $17 million higher for right-of-use
assets and leased customer equipment assets.
• Net finance expense increased by $10 million due to the increase in
average debt during the year.
• Tax expense decreased by $20 million primarily due to depreciation
allowances being reintroduced for commercial building structures, as part
of the assistance package offered by the Government on 25 March 2020
and a higher proportion of non-taxable gains.
1 EBITDAI is a non-Generally Accepted Accounting Practice (non-GAAP) measure
and is not comparable to the New Zealand Equivalents to International Financial
Reporting Standards (NZ IFRS) measures. This measure is defined in note 2.5 of
the financial statements.
2 Endless plans are Spark’s mobile plans with unlimited calling minutes, unlimited
SMS and an allowance of data to use at the maximum available speed, after which
they are able to continue using mobile data but at a reduced speed.
0
100
200
300
400
500
NET INVESTMENT
INCOME
DEPRECIATION
AND AMORTISATION
NET FINANCE
EXPENSE
TAX
EXPENSE
$ MILLION
FY20
FY19
EBITDAI
1
$1,113M
2.1%
$3,623M up 2.5% year-on-year
$2,510M up 2.7% year-on-year
Net earnings
$427M
4.4%
• Other gains of $35 million, up $20 million from FY19, were generated
from the divestments of CCL’s network asset business and Lightbox,
the sale of surplus mobile network equipment and a fair value gain
on exchange of spectrum.
14
Spark New Zealand Annual Report 2020
Our performance

1 Capital expenditure is a non-GAAP measure and is defined in note 2.5 of the
financial statements.
Cash flowsOperating cash flows
• Operating cash flows increased by $126 million primarily due to higher
receipts from customers, which is consistent with operating revenues
and other gains for FY20 offset slightly by no Southern Cross dividend
receipts in FY20.
• Investing cash outflows were relatively consistent with the prior year.
• Financing cash outflows increased by $141 million as less borrowing
was required to support the dividend payments.
Key capital expenditure projects for the year included:
• Continued mobile network investment, including the deployment of
5G technology, increased capacity and coverage for wireless broadband
and the introduction of Spark’s sports streaming offering;
• IT systems investment included lifecycle investment and licensing for
internal IT systems, enhancements to products and IT systems to
improve customer experience and the implementation of the Spark
Sport platform;
• Plant, fixed network and core sustain included investment in the fibre
build programme, Optical Transport Network (OTN), fixed network
broadband and Carrier Ethernet expansions to meet customer demand
for services and traffic growth across the network (including the impact
of introducing sports streaming). Various investments in Spark
properties were also carried out, including the fit-out of Spark Square in
Christchurch; and
• Continued investment in the converged communication network (CCN),
which will replace the legacy PSTN network, and will enable us to deliver
IP-based voice services in the future.
This excludes non-cash spectrum additions of $13 million.
750
770
790
810
830
850
870
890
910
930
950
970
$ MILLION
RECEIPTS
FROM CUSTOMERS
FY19
RECEIPTS
FROM INTEREST
RECEIPTS FROM
DIVIDENDS
PAYMENTS TO
SUPPLIERS AND
EMPLOYEES
PAYMENTS FOR
INCOME TAX
PAYMENTS FOR
INTEREST ON DEBT
PAYMENTS FOR
INTEREST ON LEASES
PAYMENTS FOR INTEREST
ON LEASED CUSTOMER
EQUIPMENT ASSETS
FY20
$903M up 16.2%
Dividends per share
25.0 cents
No change
Earnings per share
23.2 cents
4.0%
$374M down 10.3%10.3% ( F Y19 11. 8 %)
Capital expenditure
1
Capital expenditure to operating revenues
CLOUD
CCN
CABLE AND CAPACITY
IT SYSTEMS
MOBILE NETWORKS
PLANT, FIXED NETWORK AND CORE SUSTAIN
OTHER

$
6
5
M

$
1
1
M

$
2
4
M

$
1
8
M

$
1
1
M

$
1
1
6
M

$
1
2
9
M
20202019
YEAR ENDED 30 JUNE$M$M
Net cash flows from operating activities903777
Net cash flows from investing activities(411)(426)
Net cash flows from financing activities(493)(352)
Net cash flows(1)(1)
CLOUD
CCN
CABLE AND CAPACITY
IT SYSTEMS
MOBILE NETWORKS
PLANT, FIXED NETWORK AND CORE SUSTAIN
OTHER

$
6
5
M

$
1
1
M

$
2
4
M

$
1
8
M

$
1
1
M

$
1
1
6
M

$
1
2
9
M
15
Connections matterSpark New Zealand Annual Report 2020

Our customers
+33
pOInts
Consumer and small
business interaction Net
Promoter Score (iNPS)
We have supported our customers
through COVID-19 by setting up our
retail teams with at-home kits to work
virtually from their own homes.
As New Zealand’s largest
telecommunications and digital services
company, we have relevance for almost
every New Zealander. From mobile,
broadband, cloud services, security, digital
services and live sports streaming, we have
customers ranging from individuals and
households through to small businesses,
government and large enterprises. We know
that as we respond to COVID-19 and Kiwis
embark on the journey to recovery, the
essential services that we provide are more
important than ever to support our
customers to create value for themselves
and others. This is a responsibility that we
take seriously.
We want to help New Zealand recover from
COVID-19 and transform to a high-
productivity, low-carbon economy. Through
the products and services we provide we
connect, empower and support our
customers to adapt and become more
sustainable through technology.
Customer experience
Over the course of FY20 we continued our
strategy of shifting customers towards digital
self-service interactions to improve customer
experience by making queries simpler and
easier to resolve online. This has seen an 18%
increase in the use of chat interactions,
including the MySpark App, online chat and
our chatbot Ivy. In the last 12 months the
amount of interactions resolved through Ivy
without being redirected to our customer
care team (deflection rate) has grown by 10%
and currently sits at 53% of all incoming chat
requests – a great result from a bot that was
originally pitched to deliver 27% deflection. A
combination of initiatives has reduced our
monthly care volumes (inbound calls and
chat) from 330,000 to 237,000 interactions,
a 28% reduction.

18%
increase in the use of chat
interactions, including the
MySpark App, online chat
and our chatbot Ivy.
We have increased our use of digital tools to
keep customers informed throughout their
customer journey while addressing complex
issues. Through a focus on staffing and
cross-skilling we have seen our call abandon
rates more than halve. Calls being answered
in a timely manner and having queries owned
through to conclusion has helped deliver an
increase of 10 points in iNPS (interaction Net
Promoter Score – based on rating and
feedback from customers after interaction
with our team members) from consumer
and small business customers in the last
12 months.
We continue to invest in our in-store
experience with the opening of new stores in
Dunedin and Whangarei and our Halo store in
Newmarket. We look forward to our new
Commercial Bay store opening in FY21.
16
Spark New Zealand Annual Report 2020
Our customers

Spark delivers Rugby World Cup 2019
for New Zealand
In September, we brought Rugby World
Cup 2019 (RWC) to New Zealand
through streaming.
To prepare for the tournament we made
significant upgrades to our infrastructure, to
ensure we had the capacity in our network to
deliver a great viewing experience. We
recognised that many Kiwis were new to
streaming, so we undertook a nationwide
education campaign to get New Zealand
‘match fit’, including partnerships with local
retailers to facilitate in-home set ups. We also
extended access to the game beyond our
online platform by setting up ‘Spark Sport for
Schools’ in rural areas – a programme that
provided free RWC Tournament Passes to
schools to hold viewings for their local
communities – and by providing all RWC
matches via pubs and clubs across
the country.
Not all New Zealanders were able to stream
on-line. Our partnership with TVNZ enabled
those customers to watch broadcast delayed
covereage of every All Blacks game on TVNZ
One, as well as other key matches live. We
also worked with TVNZ on our contingency
plan in the event of any technical difficulties.
This plan was activated when we experienced
a technical issue during the first All Blacks
match resulting in the game being simulcast
on TVNZ Duke. An urgent investigation
identified the issue and our team worked to
put a fix in place immediately. We apologised
to our customers for the issue and provided a
full or partial refund for those who were
impacted. Our customer care teams also
worked one-on-one with customers who
were having issues with their in-home set-up,
and in many instances conducted in-home
visits to help resolve issues.
Introducing a new technology on a large
scale brings its challenges – but as sports
streaming is increasingly becoming the way
sport and entertainment is delivered globally,
we are pleased to have helped New Zealand
to start the journey. And it’s fair to say we
learnt a few things along the way ourselves.
We celebrated several milestones during
RWC 2019:
• The All Blacks vs Ireland Quarter Final
was the largest streamed sports event
in New Zealand.
• The Wales vs France Quarter Final on
20 October set new Spark and Chorus
data traffic records for each of their
networks (a 40% increase on pre-RWC
Sunday night traffic).
• New Zealanders had taken up just over
200,000 RWC subscriptions.
• Spark Sport streamed nearly six million
hours of RWC content.
In June, in response to the disruption caused
to our retail stores due to COVID-19, we
launched New Zealand’s first virtual shopping
experience providing a similar customer
journey to a retail store. We also launched
‘Spark Studio’ – an innovative take on virtual
appointments that redesigns our retail
experience to allow our customers to connect
with our expert team remotely. This is
currently being concept tested and we hope
to roll it out nationwide soon.
We continued to make significant strides
towards a ‘unified frontline’ – where our
customer care and retail teams can easily be
cross-skilled and move between different
channels depending on where our customer
demand lies. This is good for our customers,
and also builds the skills and capabilities of
our team members. The onset of COVID-19
accelerated our pace when it impacted our
call centre in the Philippines. In response our
retail teams were set up to help with inbound
voice and chat enquiries from their own
homes – with 589 retail team members
receiving at-home kits to help our customers
virtually. They joined our call centre and
Business Hub teams to create a team of over
1,000. Over the long term this approach will
build teams that are skilled at supporting our
customers through a number of face-to-face
and virtual channels, building diversity in our
business and the speed at which we can
support our customers.
17
Connections matterSpark New Zealand Annual Report 2020

aggregator that manages these messages,
and the relationship with the content
provider, to block the messages. We also
block access to the URL featured in the scam
text to prevent customers inadvertently
clicking on the link. We are working with the
industry to strengthen our processes and
further reduce the likelihood of our
customers receiving such messages.
The most effective way to keep our customers
safe is through education and awareness. We
take any opportunity to empower our
customers to be vigilant when it comes to
scams and keeping their personal information
safe. This includes providing comprehensive
information about scamming on our website:
www.spark.co.nz/help/scams-safety
We have also partnered with Netsafe to
produce an educational scam call brochure to
distribute to organisations such as Age
Concern and retirement villages. We include
reminders to stay vigilant in direct customer
communications and share alerts to
widespread scams on our social media
channels. During the Alert-Level 4 lockdown
we created a factsheet with tips on how to
avoid scams while working from home, which
we shared across our website and social
media channels.
Cyber security
Cyber security is an important issue and we
invest heavily in managing risks to protect our
customers’ and our own data. We have one of
New Zealand’s largest security teams made
up of qualified and experienced people
working across engineering, analyst,
operations and security assurance roles.
Spark also provides security services for small,
medium and enterprise organisations,
including carrying out vulnerability
assessments and providing managed
security. We regularly test our systems and
security capabilities and hold a number of
industry recognised certifications that provide
assurance to our customers on the strength
and capability of our security abilities.
Products to support seniors
With over a million New Zealanders predicted
to be aged 65 plus by 2032, it makes sense
for Spark to provide solutions to address the
needs of older customers. In July 2019, we
announced two new products, Spark Gold
Plans and Call Screen.
Spark Gold Plans
We introduced two pay-monthly mobile plans
designed to meet the needs of those aged
65 years and over. Spark Gold Plans are only
available to seniors, with a focus on excellent
voice calling value over data, making one of
the plans the most affordable advertised pay
monthly mobile plan in the country at just
$12.99 a month. More information on Spark’s
Gold plans can be found on our website:
www.spark.co.nz/shop/mobile-plans/
gold-plans
Call Screen
The number of phone scam victims in
New Zealand has continued to grow. Many
are still losing thousands of dollars after
falling victim to scammers. And as frequent
landline users, many of those who have fallen
victim have been seniors. In the past year we
launched New Zealand’s first home phone
with nuisance call blocking technology, Call
Screen. Users can decide who they talk to by
screening incoming calls, reducing the fear of
becoming a victim of scammers. Most of the
time scammers use robo-dialling software
that automatically calls a series of numbers.
An actual human scammer won’t be
prompted until a person answers one of the
calls. A scammer’s robo-dialling system isn’t
sophisticated enough to leave a name, a
requirement of the Call Screen technology.
That means the call won’t connect and the
home phone won’t ring in the first place.
Customer safety
Protecting customers from scams
Phone and email scams are an ongoing
problem as scammers continue to evolve
their approach in an effort to defraud Kiwis.
We saw scammers use COVID-19 to take
advantage of people while they worked
from home.
We play an active role in limiting the amount
of scam calls being received by our
customers by monitoring unusual calling
activity and having offending numbers
blocked, as well as blocking those reported
to us by customers. Where possible, our
security and fraud teams work with law
enforcement to identify and shut down
scamming operations, but this is challenging
when they are located offshore.
We are a member of the NZ
Telecommunications Forum’s (TCF) Scam
Prevention Code, which improves the process
for the telecommunications industry to
identify and share scamming information.
Offending numbers are shared with members
to be blocked across all networks. These
measures make a scammer’s job more
difficult and could deter them, however,
sometimes they will continue using a
different number.
We also work with the TCF to prevent
customers receiving scam text messages.
These are usually from four-digit numbers
called ‘short codes’. When we identify
illegitimate activity we work with the
We empower our
customers to be
vigilant when it comes
to online safety and
include comprehensive
information and
education about scams
on our website.
18
Spark New Zealand Annual Report 2020
Our customers

Marketing and
legal compliance
Under our Code of Ethics all Spark people
are responsible for ensuring we behave
ethically and comply fully with all applicable
laws and regulations. Spark’s Legal and
Compliance Policy sets out the specific
accountabilities that our people have for
complying with the law. Spark’s people
leaders make sure their people have the
information and training necessary to meet
these standards, and our Legal and Digital
Trust teams support our people with
comprehensive frameworks, tools, training
and advice. Every employee is required to
complete online training modules on the
Code of Ethics and how to apply it, and we
reinforce this training through regular one-on-
one and broader internal communication
across the business. See: www.sparknz.
co.nz/about/governance
Spark continues to engage constructively
with the Commerce Commission as
appropriate, both proactively and reactively,
on a case-by-case basis. Spark did not receive
any formal sanction by the Commerce
Commission in FY20. We also had no
complaints upheld by the Advertising
Standards Authority over the past year.
Product recall
In August 2019 we announced a product
recall of a power back-up device that had
been issued to approximately 14,000 wireless
landline phone customers during the
previous four months. The power back-up
had been included to ensure that wireless
landlines would continue working for up to
four hours in a power cut. The recall followed
the discovery of a manufacturing fault in
some power back-ups that could cause the
unit to overheat, leading to a fire risk. While
we are unaware of any harm caused to our
customers due to this issue, we made the
decision to recall the device as our customers’
safety is paramount. In issuing the recall, we
contacted all affected customers and took
comprehensive steps to arrange alternative
technology for them as required. Spark sent
ongoing recall reminders to customers
throughout the remainder of 2019 and has
observed a very high return rate of the
recalled units.
Customer privacy
Our customers, along with all
New Zealanders, value their privacy and they
trust that we will protect and manage
information about them in a way that aligns
with their expectations. We are committed to
respecting customer privacy and the personal
information entrusted to us by customers. It is
also Spark’s focus to enable our customers to
safely and easily manage their personal
information. Providing transparency to
customers about how we use and collect
personal information is a key part of this.
Spark’s Privacy Policy sets out our
commitment to our customers when it comes
to handling their information. The policy sets
out transparently what data we collect and
how we use that data. In our policy we
commit to handling all personal information
appropriately in compliance with the Privacy
Act 1993 and our customers’ expectations.
We also set out customers’ rights and choices
in respect to their personal information. See:
www.spark.co.nz/help/other/terms/
policies/privacy-policy
We are committed to
respecting our customers’
privacy and the personal
information they share with us.
All of our people are required to complete
online privacy training and to treat customer
information consistently with Spark’s Privacy
Policy. This includes following Spark’s data
governance processes and standards for the
collection, use and disclosure of personal
information and engaging with Spark’s
privacy and security teams. We are reviewing
our systems, processes and training to ensure
compliance with the Privacy Act 2020 when it
comes into force in December 2020.
In FY20 there were no complaints from the
Office of the Privacy Commissioner, however
it raised two minor operational matters that
Spark is addressing.
We are implementing reporting capability
that will enable us to report on substantiated
complaints received from customers in the
future. There were no significant customer
data breach incidents in FY20 but in line with
Spark’s commitment to transparency Spark
did notify some data incidents to a small
number of impacted customers as well as the
Office of the Privacy Commissioner.
Customer terms and conditions
In FY20 we simplified our terms and
conditions to make them easier for customers
to understand. While the rights and
obligations of Spark and our customers
stayed the same, we restructured our terms
and used clearer language. Spark customers
were notified about the new terms and
conditions on their bills throughout
November 2019 and prepaid customers were
sent an SMS with a link to the new terms and
conditions. See: www.spark.co.nz/help/
other/terms
19
Connections matterSpark New Zealand Annual Report 2020

We continued our affiliation with Pride Month
through our documentary-style video fronted by
gender non-conforming performer Gabriel, also
known as Princess, who demonstrated some of the
employment challenges that members of the
LGBTQIA+ community faced.
We had our biggest ever Summer of Music, supporting
some of the best and most exciting shows around the
country, including Six60, Splore and Laneways. At Bay
Dreams we launched Fan Studio, our photographic
platform that gives Spark customers the chance to win
prizes, which now sits outside Spark Arena. When
COVID-19 decimated the local live music industry, we
created content platforms for our customers through
Spark Sessions, bringing Kiwis the best of
New Zealand’s music scene straight into their
living rooms.
Play by Spark was our
initiative to help parents
and kids find balance in
their screen time usage.
The advertisement campaign
featured a heart-warming
‘breaking-up’ conversation
between a young boy and his
gaming avatar, that generated
much-needed conversations
online about striking the right
balance between playtime
and screen time.
Join Aleisha on
a brand run by Kiwis,
for Kiwis.
For low-cost mobile and broadband
COL_SKI1123_ALEISKIWI_MAX_AK0009_03.indd 1COL_SKI1123_ALEISKIWI_MAX_AK0009_03.indd 117/03/20 6:21 PM17/03/20 6:21 PM
Spark had a huge year for brand and customer
campaigns that continue to build an emotional
connection with Kiwis.
Skinny had another busy
year. After 18 months, the
successful ‘Famous
Names’ brand campaign
came out of market.
Utilising the brand’s
advocacy as a key
strength, it was replaced
with a new platform called
Skinny Friend-vertising.
This campaign was driven
out of the insight that
everyone in New Zealand
is connected to each other
and aims to reach all Kiwis
with an advertisement for
Skinny fronted by a person
they know.
Bringing our brand to life
LITTLE CAN BE HUGE
PL AYTIME
BALANCE
WITHSCREEN TIME
Get involved at spark.co.nz/play
SPK0995_Spark Play_OOH_4x6m AT10PC_v2.indd 124/10/19 2:09 PM
20
Spark New Zealand Annual Report 2020
Our customers

Supporting New Zealand
businesses
The Spark group had a busy year supporting
our business partners and customers as they
navigated an unprecedented year of
disruption and recovery. Through our digital
services expertise and network technology
we helped them create value for their people
and customers.
Wholesale
Our wholesale business continued to make
progress in our growth products category.
We continued to invest in new product
capabilities across the Tasman Global Access
(TGA) and Southern Cross (SX) cables, as well
as corporate satellite, setting us up for future
growth opportunities. We’ve also supported
global Content Delivery Networks (CDNs)
and cloud providers with their New Zealand
co-location and connectivity requirements.
During the Alert-Level 4 lockdown we
supported our Service Providers (who were
experiencing increased internet usage by
their customers), by providing burstable
domestic IP data free of charge. We also lifted
data caps on wireless broadband plans
resold by our Wireless Broadband partners.
Internet of Things (IoT)
In March we teamed up with Vector as the
energy company moves to modernise the
way energy consumption is measured in Kiwi
homes and businesses. This deal has seen a
significant number of Vector’s New Zealand-
based advanced meters connected to Spark’s
4G-supported CAT M1 Internet of Things
(IoT) network, with the ability to shift on to 5G
connectivity as part of a multi-year rollout.
While today’s networks have limits on the
number of simultaneous connections, the
capacity and reliability of 5G technology will
see it underpin mass deployment of IoT. 5G is
designed to support connected device
densities of up to 1 million devices per
square kilometre on a continual basis.
Leaven
In August we announced the launch of
Leaven, a new cloud and digital
transformation consultancy built to help
organisations make the shift to new and more
digital ways of working.
As the world transitions to a digital era,
organisations are looking for smarter ways to
turn their aspirations for digital transformation
into action, embracing the capabilities of
public cloud services to become more
efficient, reduce cost and create new services.
This was accelerated with COVID-19, where
businesses looked to cloud-based offerings
to help them scale, work flexibly and have
remote access to their technology services.
Leaven focuses on cloud adoption, digital
innovation and business transformation, and
empowers its clients to embrace public cloud
technology and new ways of working,
supported by all-important governance
and compliance requirements.
Since its launch, Leaven has delivered its
portfolio of services to a growing number
of clients, ranging from large corporate and
public sector to smaller organisations
looking to maximise the value they get
from the cloud.
Qrious
Qrious, our data, analytics and AI business,
has continued helping New Zealand
organisations navigate the changing business
environment, using data and critical insight.
It’s been a huge year for Qrious, with the
acquisition of NOW Consulting, being
awarded ISO 27001 security certification,
recognition by Inland Revenue (IRD) as an
Approved Research Provider, as well as
receiving the Snowflake 2020 Solution Partner
of the Year (APAC) award. Qrious also
launched its summer intern programme,
which gave eight university students a rare
opportunity to extend their skill-base and
develop solutions for real-world problems
through work experience in its Q.Lab
Research Division.
CCL
Computer Concepts Limited (CCL) divested
the operational parts of its network services
division to a new business called Cello,
formerly known as Octave. The decision is
consistent with CCL’s shift to a simpler
operating model following the brand merger
with Spark’s wholly owned cloud business,
Revera. CCL received the Strategic Partner of
the Year award, recognising joint initiatives
with CTP and Leaven at the Hewlett Packard
Enterprise (HPE) annual partner awards
where Revera, now operating under the CCL
brand, was also awarded Service Provider of
the Year. In March, CCL and Microsoft
announced a three-year strategic partnership
to drive New Zealand business and public
sector migration to Microsoft Azure
cloud technologies.
Streaming services
Spark Sport
Spark Sport kicked off with the start of the
2019-20 Premier League season in August,
then, six months after launch, we brought
New Zealand the Rugby World Cup 2019
via streaming.
Spark Sport also announced a six-year
partnership with New Zealand Cricket as the
official production and broadcast partner for
all Blackcaps and White Ferns matches
played in New Zealand.
When COVID-19 hit, major sports bodies
were forced to cancel or postpone sporting
events. As a result, we offered Spark Sport for
no charge from mid-March until the end of
June. While COVID-19 created challenges for
all broadcasters carrying live sport it also
significantly accelerated streaming
connectivity in New Zealand homes. We now
have a range of sports available on the
platform, including rugby, football, cricket,
tennis, motorsports, basketball, MMA, racing,
boxing, golf, hockey, e-sports and athletics.
Lightbox
In December Spark announced it had
entered an agreement for Sky Network
Television Limited (Sky) to purchase its
entertainment streaming business, Lightbox.
This sale was completed in February and in
June, Sky announced it was merging
Lightbox with its Neon streaming service.
Spark customers on selected broadband and
Pay Monthly mobile plans continued to
receive Lightbox “on us” until July 2020.
Following this, Spark announced a
partnership with Neon that allowed
customers to trial the new service for three
weeks and add Neon to their plans for a
discounted rate of $9.95 per month.
21
Connections matterSpark New Zealand Annual Report 2020

Our network
and technology
Our network and technology underpins our
ability to help New Zealanders grow and
stand strong in a digital world. This includes
our mobile sites, data centres, networks,
systems, processes and digital services
capability. We create value for ourselves, our
customers and our communities by investing
in resilient, adaptable infrastructure for
New Zealand’s future and the products and
services that connect and empower
New Zealanders.
Investing in our network infrastructure
Digital technology is becoming ever-more
essential to how we work, learn and connect,
and New Zealanders rely on it every day. We
see significant year-on-year growth in data
usage on our mobile network. Over the past
two years we have invested heavily,
enhancing capacity by approximately 80%.
This included building over 150 new cell sites
and the extensive rollout of 4.5G, which
significantly enhances network performance
and capacity relative to conventional 4G.
COVID-19 was a test of the adaptability
and resilience of our networks. During
New Zealand’s 33-day Alert-Level 4 lockdown
data usage on Spark’s broadband network
resembled a seven-day weekend. Data usage
each weekday was double the norm, and
weekend peak usage was elevated further
again. Even with volumes increasing to levels
not seen before in New Zealand, the network
performed very well.
Rolling out 5G
We launched our first 5G service in
September 2019, with a number of business
and consumer customers invited to trial
high-speed 5G mobile broadband in
Alexandra in Central Otago. We chose
Alexandra as it has one of the highest uptake
rates in the country for Spark’s existing
wireless broadband product. In November
November 2019
5G wireless broadband live
in Westport, Clyde, Twizel,
Tekapo and Hokitika
The history of our
network investment:
November 2013
Launch of 4G
June 2016
Launch of 4.5G
in Christchurch - 1.2Gbps
July 2016
Launch of Wireless
Broadband
June 2018
4.5G live in Queenstown
March 2018
Outdoor trial of
5G in Wellington
April 2018
Indoor demo of 5G
reaching speeds of
18Gbps
December 2018
4.5G live in Taupo
June 2019
20% of Spark’s Broadband
base wireless
August 2019
4.5G live in Spark sites
across the country
September 2019
5G wireless broadband
live in Alexandra
November 2019
Spark 5G live on the
water in Auckland
Harbour for Emirates
Team New Zealand
November 2019
Announcement of Spark’s
5G rollout plans and
network vendors
July 2020
Start of wider 5G
rollout commencing
in Palmerston North
June 2020
100th Rural
Connectivity
Group tower live
May 2020
Announcement of
allocation of 3.5 GHz
spectrum to enable
accelerated 5G rollout
22
Spark New Zealand Annual Report 2020
Our network and technology

2019, we launched New Zealand’s first
commercial 5G wireless broadband service
into selected areas of five heartland
communities – Westport, Clyde, Twizel,
Tekapo and Hokitika.
In May 2020 the New Zealand Government
offered Spark the management rights to 60
MHz of 3.5 GHz (or C Band) spectrum until
31 October 2022. The spectrum allocation
was completed in July 2020 and enables a
significant investment by Spark in 5G
infrastructure across the country over the
coming year, which will play a critical role in
New Zealand’s response to, and recovery
from, COVID-19.
The 3.5 GHz spectrum is crucial for the rollout
of a full suite of 5G services. We plan to switch
on 5G sites in a number of major centres and
regions across the North and South islands
over the next year. To maintain this
momentum, we are keen to work with
Government to accelerate the timeline for
the longer-term spectrum auction, which is
currently scheduled for November 2022.
We have continued with our multi-vendor
strategy for our 5G rollout, using Nokia for
our initial rollouts in Auckland and Palmerston
North. We maintain an ongoing relationship
with both Samsung and Huawei.
Electromagnetic fields (EMF)
and health concerns
The rollout of 5G technology has raised
community interest in electromagnetic
fields (EMF) or radio waves and health.
Misinformation across social media has
caused confusion over the safety of the
next-generation technology, resulting in the
spread of dangerous and false theories
linking 5G technology to COVID-19.
During the Alert-Level 4 lockdown there were
a number of incidents of wilful damage to
5G starter fund
With the Government’s 5G spectrum
allocation announced and businesses
now operating in a changed world,
Spark reshaped and relaunched its
5G Starter Fund with an added focus on
transforming health and wellness for all
New Zealanders.
The Fund was initially launched in March with
a prize pool of $500,000 but was put on hold
due to COVID-19. The Fund was relaunched
at the end of May with an increased prize of
$625,000 for up to four Kiwi businesses to
develop 5G applications that can help to
support New Zealand’s economic recovery.
All winners will receive business and tech
mentoring from industry leaders, as well as
access to technology and equipment to test
and build on Spark’s 5G network.
“New Zealand is in a unique position – its
size, cultural make-up and creativity means
Kiwi businesses have a global edge.
“It’s important, now more than ever, for
companies to embrace the impact they can
have in their own backyard, and on the world.
As New Zealand responds to COVID-19 Kiwi
entrepreneurs have an opportunity to use 5G
to make a real difference to our future – those
who will be successful will be passionate and
willing to take a leap of faith, believing that
their idea is the next big thing for
New Zealand.”
Ido Leffler, Spark director and 5G Starter
Fund panellist
New Zealand’s mobile networks, including
several Spark cell towers. The vandalism
resulted in damage to critical communications
infrastructure during a time of national
emergency, and in some cases resulted in
short-term, localised outages.
Ensuring public confidence in the safety of
mobile technology is important, and is
potentially material to our capacity to invest
and roll out improved network infrastructure.
We work individually and as an industry via
the Telecommunications Forum (TCF) to help
ensure information about 5G and safety is
available to the public should they have any
concerns. The New Zealand Ministry of Health
and the Prime Minister’s Chief Science
Advisor have developed resources we
frequently share with interested parties.
Thousands of studies have been performed
over the years into whether there is any health
impact from radio waves, and to date no
adverse health effect has been causally linked
with exposures to wireless technologies that
comply with the New Zealand limits,
including 5G.
5G will initially use radio frequencies very
similar to 3G and 4G, and while eventually it
will use radio frequencies at higher levels (i.e.
millimetre waves), this doesn’t result in higher
or more intense exposure. Exposure levels
will remain well below limits set by the
New Zealand Government in NZS2772.
To check that we meet our obligation to
comply with national limits, Spark has
commissioned independent monitoring of
exposures to radio waves around our cell
sites. You can read more about this
programme here:
www.health.govt.nz/our-work/radiation-
safety/non-ionising-radiation/
independent-cellsite-monitoring
23
Connections matterSpark New Zealand Annual Report 2020

integrated services to these rural
communities from just one cell site.
Network resilience
We recognise how important
telecommunications and digital connectivity
is to millions of New Zealanders and
New Zealand businesses. We place great
emphasis on the resilience and diversity of
our networks.
We expanded our mobile network in the
lead up to Rugby World Cup, this included
the deployment of the single radio access
network (SRAN) and Long-Term Evolution
(LTE) sites, as well as significantly
increasing capacity and coverage for
wireless broadband.
We continued our work on Spark’s fibre build
programme, Optical Transport Network
(OTN) and Carrier Ethernet expansion to
meet customer demand for services and
traffic growth across the network.
Investment also continued into the
converged communication network (CCN)
that will replace the legacy PSTN network and
enable us to deliver IP-based voice services in
the future.
During COVID-19 Alert-Level 4 there was a
significant growth in daytime traffic, as well as
increases to the peak evening load, as the
whole country worked or learnt from home.
The network had sufficient capacity to carry
the load and was very stable across fixed and
wireless broadband and mobile voice despite
the increase in usage. Spark expanded
capacity where needed with ‘cell sites on
wheels’ (COWs), or by adding additional
capacity onto individual cell sites.
Flooding in the South Island in December
2019 caused damage to both Spark’s western
and eastern fibre routes and resulted in
outages to landline, mobile and broadband
Expanding rural
broadband coverage
We work in collaboration with Vodafone,
2Degrees and Crown Infrastructure Partners
(CIP) to build essential broadband and
mobile services for rural New Zealand via the
Rural Connectivity Group (RCG). The RCG is a
joint venture between Spark, Vodafone and
2degrees, and has been contracted by CIP to
deliver the Government’s Rural Broadband
Initiative Phase 2 (RBI2) and Mobile Black
Spot Fund programmes.
The aim of the RCG project is to deliver new
or improved mobile and wireless broadband
coverage to over 30,000 rural homes and
businesses. It also aims to provide further
mobile coverage to over 1,000 kilometres of
state highways and provide connectivity to
over 100 New Zealand tourist destinations
by December 2022. This means it will build
over 400 cell sites across rural New Zealand
delivering essential broadband and
mobile services.
The connectivity is much needed to bridge
the digital divide for rural communities and
help the rural sector remain competitive.
Bringing together the investment from Spark,
Vodafone and 2degrees, along with the
Government’s RBI2 funding, has been the key
to providing service into more challenging
and remote areas of New Zealand.
To date, the RCG has built over 100 sites,
delivering high-speed wireless broadband
and quality mobile coverage to more than
8,121 homes and businesses, as well as
343km of state highway, improving safety on
our roads and making them easier to access
by emergency services.
The RCG network uses Nokia 4G Multi
Operator Core Network (MOCN) which
allows all three mobile networks to provide
We got 5G out on the
water with our Emirates
Team New Zealand
campaign.
Spark 5G helping
Emirates Team
New Zealand make the
boat go faster
In November 2019 we started trialling a
5G service on the water for Emirates Team
New Zealand, delivering on our promise to
help make the boat go faster in the bid to
defend the America’s Cup.
The 5G service covers parts of Auckland
Harbour, off Milford and Takapuna, where
Emirates Team New Zealand do some of their
test sailing. The faster speeds and higher
bandwidth of 5G means the team can
livestream data and video back to engineers
and designers at the base straight off the
AC75 boat, Te Aihe, while it’s sailing.
Real-time access to the data gives Emirates
Team New Zealand a design advantage in
preparing for the America’s Cup racing.
“Before the team had access to 5G they had
to get a hard disk with all the data off the
sailing boat, then the chase boat took it back
to the base, and a team member would run
the hard disk up to the data server at the
base. Design work using the data couldn’t
happen until well after the boat had docked.
“Now we have 5G on the water, there are
hundreds of real-time data streams such as
boat speed, ride height, and hydraulic
pressure coming off the water and back to
our design team at the base. Our team can
do progressive design and development
work during the day while the boat is sailing
allowing our design-thinking to evolve much
faster. We were never able to do this before
5G.” Dan Bernasconi, Head of Design for
Emirates Team New Zealand.
24
Spark New Zealand Annual Report 2020
Our network and technology

services to customers in the lower South
Island (although 111 calls were maintained as
they were automatically rerouted onto other
networks which were still operating). The
Minister of Broadcasting, Communications
and Digital Media, Kris Faafoi, subsequently
announced plans for a new fibre optic route
on the West Coast.
We recognise that an increase in extreme
weather events is likely to increase as a
climate-related risk. To learn more about our
approach to risk, including climate-related
risk, see page 48.
PSTN decommissioning: upgrading
landline calling
Over the past year we have continued our
programme to close the legacy PSTN (public
switched telephone network) and transition
to the new, IP-based CCN (converged
communications network). We have now
decommissioned 232 telephone exchange
switches, which is 33% of the Spark PSTN.
Customers continue to move to wireless and
fibre voice services, which are supported by
the CCN technology. In the past financial year
over 140,000 more customers have moved
away from the PSTN. In July Spark announced
the next phase of the PSTN closures project,
which will begin in early FY21. In September
2020 Spark will launch a pilot project in
Devonport, Auckland and Miramar,
Wellington to move all customers off the local
PSTN switches and over to the CCN. Once all
customers have moved, the local PSTN
switches will be decommissioned. The
change will impact less than 1,000 customers
Rural Connectivity
Group (RCG) cell tower
at Whangarei Heads.
We have continued
our programme to
close the legacy PSTN
(public switched
telephone network).
across these two suburbs combined, and we
will be working with our customers to ensure
they have everything they need to stay
connected before we make the switch.
The PSTN is nearing end-of-life, its
components have not been manufactured
since 2003, and the people with the skills
needed to maintain this technology are also
becoming scarce.
Spark will work closely with customers during
the pilot project in Devonport and Miramar to
test and learn how it can best guide
customers through the process. We will take
what we’ve learnt to inform our plans to make
this same change, using an area-by-area
approach, across New Zealand over the
coming years.
4G voice services
We have activated 4G HD Voice on our
network, otherwise known as Voice over LTE
or VoLTE. Most phones we launch are now
VoLTE capable, and we are progressing
turning this on for capable handsets already
in market. While 3G will continue to be a
primary means of voice delivery in the
immediate future, 4G voice provides fast call
set up time and improved call quality, and will
enable voice services for cell sites rolled out
as part of the Rural Broadband Initiative 2
(RBI2), the majority of which are 4G only.
Agreements signed for build of new
Southern Cross NEXT cable
Southern Cross Cable Network and its
shareholders have signed agreements and
gained the regulatory approvals needed to
move into the construction phase for the
NEXT cable between Australia and
New Zealand to the United States. The cable
is set for completion by early 2022 and will
span Sydney to Los Angeles, via Auckland,
Fiji, Tokelau, and Kiribati.
Alcatel Submarine Networks will build the
cable that Southern Cross believes will have
the lowest latency between Australia and
New Zealand and the US. Telstra has bought a
25% stake in Southern Cross, reducing
Spark’s holding to around 40%. The other
shareholders of Southern Cross are
Singapore’s Singtel and US communications
technology company Verizon.
25
Connections matterSpark New Zealand Annual Report 2020

Our people
Our approach is to employ the best people
we can and to invest in them to bring out
their full potential. We aim to provide an
employee experience aligned with our
purpose, which enables our people to move
fast, progress and focus on what matters for
our customers.
We provide experiences and opportunities
for our people to continuously learn. This
will build the growth mindsets, behaviours
and capabilities that will differentiate
Spark’s culture and support sustainable
competitive advantage.
The outcome is fulfilling and rewarding
employment which equips our people for
a positive future of work, building human
capital in Spark and New Zealand.
Spark Contribution Models
The Spark Contribution Models define the
skills, knowledge, experience, behavioural
and mindset requirements for people
working in different teams across Spark. The
models guide our people on what Spark
values, giving a clear description of how they
can progress their careers at Spark. The
models also give our leaders a tool to help
coach, review and support our people to
grow their skills.
Equality and objectivity are important
elements of the contribution models. This is
linked to our adoption of an Agile model that
encourages flat organisational structures,
valuing and growing people’s individual ‘craft’
over traditional titles and hierarchy.
Continuous learning
and development
Spark’s development philosophy is based
upon the 70/20/10 principle, where 70% is
through on-the-job experiences, 20%
through building and maintaining
relationships with others, and 10% through
formal development opportunities.
We operate formal development
programmes for people in key roles. Our
Leading Agility Foundations programme is
targeted at Chapter Leads and Product
Owners. The programme runs over three
months, and combines self-directed learning
with structured learning in cohorts of peers,
with applied learning opportunities. In the
past year 120 of our people completed
the programme.
Our Agile Adaptive Leaders programme is for
people in key leadership roles and individuals
identified for development and succession
planning. The programme runs over six
months in cohort groups of up to 12 people,
with diverse groups from across Spark
coming together to learn via facilitated
learning and exposure to leading-edge
performance, visionary and thought leaders.
This approach is to build a strong and
cohesive leadership community within Spark.
Coaching is a core focus of the programme,
with an objective to increase the capacity of
Our team of talented and diverse people are the heart of our
business. Our business model relies on human and intellectual
capital in our workforce and in our communities.
Employee Net
Promoter Score (eNPS)
+66
25 points from FY19
26
Spark New Zealand Annual Report 2020
Our people

our leaders to coach and be coached.
Experimentation is also part of the
programme, where we give our leaders
opportunities to apply their leadership insight
and learnings to build and deliver a
meaningful initiative that brings Spark’s
purpose to life.
To date five cohorts, and a total of 60 Leaders,
have completed the programme. The success
of the programme means we will continue to
roll it out in FY21.
Spark Hauora – Health
and Wellbeing
The health and wellbeing of our people is
something we take very seriously. Over the
past three years we have built up a volunteer
wellbeing community of around 650
employees. In the past year we launched
Spark Hauora, a Health and Wellbeing
programme to encourage our people to
lead healthy lifestyles, to care for themselves
and others and to help them bring their
best version of themselves to Spark and
their families.
Almost 60% of staff now engage with our
mental health community and related
content. In the past year we were recognised
for our mental health and wellbeing efforts by
being named as a finalist in the Emerging
Diversity and Inclusion Category at the 2019
Diversity Awards NZ, which honours a
diversity and inclusion initiative that is less
than two years old.
We recently signed the ‘WorkWell Pledge’, a
wellbeing agreement to work collaboratively
with Toi Te Ora Public Health, an organisation
regarded as one of the leading health and
wellbeing experts in New Zealand. In
partnership with Toi Te Ora Public Health and
Spark’s own Health, Safety and Wellbeing
ambassadors, we strive to continuously work
with our people to evolve our wellbeing focus
and maturity.
Supporting our people
through COVID-19
The focus of our response to COVID-19 has
been to keep our people safe and keep our
business running as a critical lifeline utility. We
have robust business continuity plans in place
to ensure we can continue to provide services
to our customers and New Zealand.
We activated our Business Continuity Plan
in February 2020, well ahead of the
New Zealand Alert-Level 4 lockdown. This
meant stepping up preparations with our
people, systems, customers and industry
colleagues. Not all of our people were able to
transition to working from home. A big focus
was to protect our frontline teams who would
have to keep working on site, such as those in
network operations, data centres, exchanges
and 111 operations.
Teams were split into three or four to ensure if
the virus affected employees in one team the
other teams could carry on. At an early stage,
we also stopped visits by other people to
those critical sites. We implemented rigorous
cleaning, hygiene and social distancing
controls in our workspaces, which were
maintained as employees began to return as
lockdown restrictions lifted.
To support our people in their transition to
working from home we provided a number of
set-up guides, and kept up regular
communication from our leaders throughout
lockdown. Topics included how to create the
perfect space for home working, workstation
ergonomics and tips for taking care of the
health and wellbeing of themselves and
others. We also shared guidance on
scheduling days to create a routine with a
clear start and end to the working day. This
included a clear time to switch-off and keep a
clear line between work and home life.
Our people celebrate
Diwali at Spark City.
27
Connections matterSpark New Zealand Annual Report 2020

We recognised the importance of individuals
and teams staying connected, with our
people making a smooth transition to online
meeting and collaboration tools. People were
encouraged to schedule regular chats with
colleagues that replicated normal day-to-day
contact in the workplace. We also promoted
our network of support service providers for
employees needing additional support.
Within the business we acted early to reduce
potential long-term impacts of COVID-19 on
our workforce. In April we announced that
there will be no annual salary review increases
for the next year for all Spark people,
including the Leadership Squad and fees for
the Board of Directors. We also put on hold
external recruitment across the Spark group.
Over the April 2020 Easter period we asked
all of our people working in non-essential
roles to take four days of annual leave.
As with many of our customers, the mass shift
to home working forced a rapid adoption of
online meeting and collaboration tools
enabled by our technology. We will look to
continue this discipline, to make these
temporary habits permanent, to best use our
technology and in turn reduce the cost and
environmental impact of business travel.
Health and safety
Spark has well established Health and Safety
(H&S) systems. These include processes for
risk assessment, audit and employee training.
We focus on continuous improvement of our
performance through our H&S strategy, which
is built around the four pillars of our
Gold Standard:
• a strong health and safety
management framework
• a proactive ‘owners’ approach to health
and safety the management of critical
hazards and associated risks
• a culture of empowerment at every level
of the organisation
• a commitment by the business to
ensuring the resources and capability are
in place to deliver the health and
safety strategy.
In FY20 we continued to take a detailed
approach to applying good risk management
practice and control for our most critical
hazards and risks. This has seen H&S plans
developed and implemented at all our office
and exchange buildings, along with improved
physical controls for working at height,
confined spaces, and hazardous substances.
We have also made Asbestos Management
Plans available at relevant buildings for
people working on-site. We are in the process
of removing asbestos from some of our
older sites.
Through employee consultation and
participation, our most at-risk business areas
– Critical Environments, Retail, Network
Development and Technical Services – have
1 We have restated the FY19 TRIFR reported last year from 3.46 to
4.64 as we have shifted reporting to a rolling 12-month average.
built H&S Roadmaps to be implemented in
the year ahead.
We also developed a new Supplier
Consultation Process with our partners
IMPAC. Together we developed a new online
tool to deliver an interactive onboarding
process for high-risk projects with our
suppliers. This tool will be rolled out across
our most at-risk business areas during FY21.
No Spark employees or contractors suffered
work-related serious injury or death over the
year, and our TRIFR (Total Recordable
Incident Frequency Rate) was 3.58 for FY20,
compared to 4.64 in FY19
1
. Our target for
FY21 is to reduce our TRIFR to 3.0.
Another key measure of performance is our
participation in the Accident Compensation
Corporation’s accredited employer
programme. We achieved Tertiary level again
in FY20, and reported our lowest number of
claims and lowest costs relating to employee
injury management of approximately
$14,000, less than half the costs from
previous years.
In FY21 we will continue our focus on
improving systems around Spark’s critical
health and safety risks. We plan to implement
our ‘SparkSafe’ capital programme for
working at heights at problematic sites with
access to mobile towers and continue to work
across the business to ensure continuous
improvement in our performance.
To support our people working
from home we provided set-up
guides and kept up regular
communication from our
leaders throughout lockdown.
28
Spark New Zealand Annual Report 2020
Our people

Diversity and inclusion
Spark’s Māori Strategy
Our Māori Strategy is about cultural
transformation, finding the shared space
between Te Ao Māori and the corporate
world. It aims to build deeper more authentic
partnerships with our communities, our
customers and our people. More information
is included in our community section on
page 39.
Blue Heart programme
Our Blue Heart programme supports Spark’s
focus on a ‘heart-led’ approach to diversity
and inclusion. It has evolved to be an icon for
our wider approach to an inclusive and
heart-led culture and our move to an Agile
way of operating has helped us accelerate
this shift. This approach has been
instrumental in bringing together multi-
functional squads across diverse cultural,
ethnic and professional backgrounds.
Spark Pride
As a Rainbow Tick accredited company,
we are incredibly proud of our ongoing
commitment to the Rainbow community.
We continued our support of the Rainbow
community over the year, signing up as a
major partner of Auckland Pride 2020 and
launching the Pride & Spark Empowerment
Initiative. The Initiative helped connect and
resource Auckland’s diverse rainbow
communities by supporting those producing
events for the festival. Support includes
workshops, access to mentors and funding.
We also continued our ongoing support of
OUTLine NZ, a national charity that offers a
free support line for members of the
LGBTQIA+ community and their friends and
family. As part of the partnership we launched
a new film focusing on recruitment of those
within the LGBTQIA+ whānau. The film is a
reminder for employers that individuality is a
strength that should be welcomed, and that
resources are available to support people
foster more inclusive workplaces:
www.outline.org.nz/workplace
In March 500 of our Christchurch employees moved into Spark Square,
our new building in the city’s Cathedral Square. Spark Square is the first
new building completed by private developers in Cathedral Square since the
earthquakes, and reflects our commitment to supporting the rejuvenation of
Christchurch’s central business district.
New Christchurch office
29
Connections matterSpark New Zealand Annual Report 2020

Gender diversity and
gender pay gap
Over the past year we have seen positive
improvements in our gender diversity and
gender pay ratio measures. Our target for
Board and leadership diversity is a 40:40:20
ratio. This refers to 40% men, 40% women,
20% of any gender.
The current composition of our Board is 50%
female and 50% male, and FY20 changes to
our Leadership Squad means this team is also
comprised of 50% female and 50% male. We
have also seen an increase in females in other
senior roles, up 4% to 39%. Spark is the first
large NZX-listed business to have both a
female Chair and female CEO. Our Diversity
and Inclusion Policy
1
sets out our framework
in this area.
Spark’s overall pay ratio of average female to
average male pay for all employees is -17%.
This is a slight improvement from our FY19
ratio of -18%. This is the first year we have
reported the overall pay ratio of median
female to median male pay, making Spark
one of the first New Zealand companies to do
so. For FY20 this figure is -26%.
The Spark Contribution Models are used to
set salaries based on areas of expertise. This
ensures that people assessed to make an
equal contribution receive equal pay. A major
contributor to this pay ratio differential is the
make up of New Zealand’s technology sector
having a significantly higher proportion of
males in technology roles. Spark has sought
to reduce this ratio over time with initiatives
such as Women in Technology scholarships
and partnering with external technology
educators, designed to proactively build a
New Zealand-wide pipeline of female
technology qualified employees.
Gender pay ratio
CategoryNumber of
employees in
category
Pay Ratio:
Average
1
Pay Ratio:
Median
2
Leadership:
Spark’s wider leadership group,
including the Leadership Squad
572%-2%
Technology:
Employees that work in technology-
focused areas of the business
2,296-18%-26%
Customer Channels:
People primarily employed within our
contact centres and retail operations
1,1380%0%
Rest of Spark
3
:
including corporate, product,
marketing and customer units
1,733-15%-21%
Total5,224-17%-26%
1 Pay Ratio = (average female salary – average male salary) / average male salary.
2 Pay Ratio = (median female salary – median male salary) / median male salary.
3 In future reporting we will provide more detail on the ‘Rest of Spark’ category, to understand our performance
and inform actions to drive change over the medium term.
Calculated using hourly On Target Earnings or Total Base Remuneration plus Short Term
Incentive Target values.
Parental leave
Spark provides a parental leave policy for eligible employees, regardless of gender, sexuality,
age or whether the employee is giving birth or adopting a child. If an employee has been
employed by Spark for a minimum of 12 months then Spark will top up the Government’s
parental leave payments so the employee receives 80% of their salary. In line with Government
changes we have extended this period from 22 weeks to 26 weeks from 1 July 2020. As a
guaranteed minimum, Spark ensures that the total amount someone receives, less any
Government paid primary carer's payments, will not be less than the equivalent of six weeks of
ordinary salary.
Eligibility for Parental Leave is in accordance with Government legislation.
FemaleMale
1
Employees that took parental leave943
Employees that returned to work after taking parental leave713
Employees that returned to work after taking parental leave
that remain employed 12 months after their return to work
412
Return to work rate
2
93%100%
Retention rate
3
66%100%
1 Males that took less than 30 days paternity leave have been excluded.
2 Return to work rate = Total number of employees that did return to work after parental leave divided by the
total number of employees due to return to work after taking parental leave.
3 Retention rate = Total number of employees retained 12 months after returning to work following a period of
parental leave divided by the total number of employees returning from parental leave in the prior reporting
period.
1 https://www.sparknz.co.nz/content/dam/telecomcms/
sparknz/content/governance/Diversity-Policy.pdf
50/50
Male/female ratio for our
Board and Leadership Squad

7%

7%
30
Spark New Zealand Annual Report 2020
Our people

Demographics of our workforce
Including permanent and fixed-term employees of Spark and its directors, as at 30 June 2020.
GenderAge
Number of
people
(year-on-year
change)
Female %
(year-
on-year
change)
Female #Male %
(year-
on-year
change)
Male #Under 30
years old
(year-on-year
change)
30 – 50
years old
(year-on-year
change)
Over 50
years old
(year-on-year
change)
Directors
1
8
(no change)
50%
(+7%)
FY20: 4
FY19: 3
50%
(-7%)
FY20: 4
FY19: 4
0%
(no change)
25%
(11%)
75%
(-11%)
Leadership Squad
2
8
(+1)
50%
(+7%)
FY20: 4
FY19: 3
50%
(-7%)
FY20: 4
FY19: 4
0%
(no change)
100%
(14%)
0%
(-14%)
Other leadership
roles
3
57
(+3)
39%
(+4%)
FY20: 22
FY19: 18
61%
(-4%)
FY20: 35
FY19: 33
0%
(no change)
79%
(-1%)
21%
(1%)
Permanent starters729
(-367)
35%
(-3%)
FY20: 258
FY19: 419
65%
(3%)
FY20: 471
FY19: 677
41%
(-5%)
51%
(2%)
8%
(3%)
Permanent leavers944
(-320)
43%
(1%)
FY20: 402
FY19: 531
57%
(-1%)
FY20: 542
FY19: 733
33%
(no change)
54%
(1%)
13%
(-1%)
Total
4
5,231
(-148)
34%
(-2%)
FY20: 1,769
FY19: 1,917
66%
(2%)
FY20: 3,462
FY19: 3,467
21%
(-2%)
57%
(no change)
22%
(2%)
1 Mr Bray and Ms Hodson commenced as directors on 23 September 2019.
2 Excludes the CEO (for FY20) and former Managing Director (for FY19) as they are included as directors in the line above. The Leadership Squad is considered ‘senior
managers’ for the purposes of the Financial Markets Conduct Act 2013 and ’senior executives’ for the purposes of the ASX Corporate Governance Council’s Principles
and Recommendations.
3 Substantive roles that report directly to members of the Leadership Squad.
4 Includes non-executive directors. Spark’s employee headcount, including our CEO, is reported as 5,224.
5,224
Total number of
employees
2,296
Employees that work in technology
focused areas of the business
COVID19410I%Dr1apV
941l1y410I%Dr1apV
aeID1y410I%Dr1apV

2
2
%

2
1
%

5
7
%
80%
Spark tops up Government
parental leave payments
to 80% of salary
93%
Return to work rate of
female employees after
taking parental leave
UNDER 30 YEARS OLD
30 – 50 YEARS OLD
OVER 50 YEARS OLD
21%
57%
22%
Age of permanent and fixed-term
employees of Spark as at 30 June 2020
31
Connections matterSpark New Zealand Annual Report 2020

Our environment
Our approach is to operate our business
efficiently and responsibly, and account
for the indirect environmental impacts of
our products and services. This includes
the opportunity to use technology to
improve efficiency and address
environmental challenges.
Maturing our approach to environmental
management is an area of focus. We have
strong processes in place to manage many
of our environmental impacts. However, we
recognise we need to make improvements
in some areas, including our policies and
our reporting.
Our approach to climate-related risk is
also maturing. We have considered the
requirements of the Taskforce on Climate-
related Financial Disclosures (TCFD) in this
year’s report. See pages 46-48 to understand
our approach to risk, including climate-
related risk.
Our climate change
commitment
As a founding member of the Climate
Leaders Coalition (CLC) we are committed to
business leadership and collective action
when it comes to addressing climate change.
In 2016 we set a target to reduce our
emissions by 25% by 2025 against FY16
baseline. This is a credible and ambitious
target. However, it is not aligned with the
latest science-based targets which typically
set more ambitious reduction goals over a
longer period of time in order to contribute
to limiting warming to 1.5 degrees.
We have recently committed to the 2019 CLC
pledge that raises our ambition. This requires
us to set a target grounded in science that will
deliver substantial emissions reductions to
contribute to New Zealand being carbon
neutral by 2050.
In practice this will mean a more ambitious
target, over a longer period to 2030 and
beyond. We remain committed to our current
target. By setting a new target, and creating a
pathway towards it, we will also accelerate
our progress towards our 2025 reduction
target, which will require significant work to
achieve. We will also improve our external
climate change reporting by seeking
independent verification of our emissions.
Reducing our network
emissions
Our main source of emissions is our use of
electricity. We consume the most electricity in
powering our networks and technology,
including data centres and switches.
Traffic over our networks increases
significantly each year. To keep up with
demand we have been investing in expanding
coverage and increasing capacity in our core
networks, including adding 150 new mobile
sites over the past two years. It’s important that
we meet our customers’ needs for digital
connectivity. However, we recognise that we
must invest and expand our network in a way
that also reduces its footprint.
Global consultancy Bell Labs conducted an
independent review of our efficiency, which
found our data centre and network building
power usage effectiveness (PUE) to be “very
good” and our traffic-vs-power growth-ratio vs
industry standards to be “outstanding” when
measured against our international peers.
One way to reduce electricity consumption is
to migrate to more efficient systems. Many
Our environment refers to natural capital, the resources that
make up and power our network and technology, and the
physical environment and hazards that it operates within.
32
Spark New Zealand Annual Report 2020
Our environment

Kiwis have already made the switch to get
their landline and broadband delivered over
newer technologies like fibre or wireless
broadband, or have simply dropped their
landline completely in favour of using their
mobile. However, in many areas of
New Zealand our landline voice calling is still
running on the legacy public switched
telephone network (PSTN) that is nearing the
end of its life.
Since 2017 more than half a million Kiwis
have moved over to the newer Converged
Communications Network (CCN). The CCN is
a more resilient and fully digital technology
that handles all the different services our
customers will expect and demand – fixed,
mobile, video, collaboration, Voice over LTE
(VoLTE) and future services like Voice
over WiFi.
In the year ahead we plan to step up our work
to move customers over to the CCN. We will
take an area-by-area approach. For most
customers the change will be a very simple
process. We will support customers to make
an informed choice about what service they
would like to move to, and we have put in
place a team of support people who can find
solutions for those with more complex needs.
At the end of FY20 232 PSTN switches had
been retired across New Zealand, which
accounts for 33% of PSTN switches.
Decommissioning the PSTN switches results
in significant reduction in electricity usage.
We save around 60,000kWh each year in a
typical urban PSTN exchange building or as
much as 1 GWh each year in our largest
exchanges, around 16 times more. This year
we’ve achieved further annual savings of
around 3 GWh through these energy
efficiency improvements, totalling 3% in the
past two years.
Our FY20 emissions
Over the past year our gross carbon
emissions were unchanged from FY19.
Electricity emissions increased this year due
to higher carbon intensity in the national grid,
offset in part by electricity efficiency
improvements achieved in the network. Travel
emissions reduced by 26%. Refrigerant
leakage increased 4% this year, and emissions
from diesel for generators were unchanged.
Waste reduced 16% in FY20 with fewer
people going to the office.
Spark is now offsetting travel emissions by
purchasing carbon credits through Air New
Zealand’s FlyNeutral programme. We are
including these in our emissions reporting for
the first time, covering flights for the FY19
and FY20 period. Including these offsets, our
FY20 net emissions were around the same
level as the FY16 base year, with the carbon
credits offsetting growth in other areas of
the business.
GREENHOUSE GAS EMISSIONS
Kilotonnes-CO
2
-equivalents
FY16
BASEFY17FY18FY19FY20
CHANGE
FY16 – FY20
Direct Emissions (Scope 1)
1
3.43.63.63.53.6+7%
Electricity Emissions (Scope 2)16.6 13.416.216.817.5+5%
Value Chain Emissions (Scope 3)
2
6.9 6.98.35.75.7-17%
Gross Emissions27.023.928.128.428.2+5%
Carbon Offsets (2.4)(1.3)
Net emissions27.023.928.126.0
3
26.90%
1 We have applied higher default refrigerant leakage estimates this year and restated Scope 1 refrigerant emissions for prior years following the same methodology
2 This year we have applied significantly lower emission factors for New Zealand domestic air travel, based on new Government guidance following a 2016 Ministry of
Transport study of aviation fuel consumption in New Zealand
3 Adjusted from previously reported figure to include offsetting
0
50
100
150
200
FY20FY19FY18FY17FY16
OFFICE
DATA CENTRES
NETWORK
ELECTRICITY CONSUMPTION
Gigawatt Hours (GWh)
0
FY20FY19FY18FY17FY16
OTHER
TRAVEL
REFRIGERANT
FLEET
DIESEL
ELECTRICITY
GREENHOUSE GAS
EMISSIONS BY SOURCE
Tonnes-CO
2
e
10,000
20,000
30,000
In collecting activity data to calculate scope 1 and scope 2 emissions Spark has used ISO 14064-1, New Zealand
Guidance for Voluntary, Corporate Greenhouse Gas Reporting and The Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard (Revised Edition).
Electricity emissions are calculated based on grid electricity consumption and the transmission and distribution losses
emission factor as described in: Ministry for the Environment Measuring Emissions: A Guide for Organisations: 2019
detailed guide. Wellington: Ministry for the Environment.
33
Connections matterSpark New Zealand Annual Report 2020

Air travel
In FY20 the COVID-19 alert levels had
a significant impact on our emissions.
We stopped all international air travel,
and domestic travel has been significantly
reduced.
We want to embed the good practices we
adopted through lockdown, which forced
many of our teams, and many of our
interactions with customers and other
stakeholders, online. For FY21 we have put
tighter controls in place over air travel and are
aiming to significantly reduce our flight spend
compared to pre-lockdown patterns.
Our fleet
Spark has a core fleet of around 240 vehicles
operating across New Zealand, and a further
214 vehicles assigned to subsidiaries and
business partners. Our fleet emissions are
around 6% of our total emissions. This means
we have an important opportunity to make
meaningful reductions in emissions by
changing the composition of our fleet and
our usage patterns.
We have a long-term focus on increasing fleet
efficiency. We introduced 47 hybrid vehicles
into our fleet in 2015, and in 2016 we made a
commitment to convert 30% of our core fleet
to PHEV (Plug in Hybrid Electric Vehicles) or
fully electric vehicles. We achieved this target
in FY20, having replaced 86 vehicles with
PHEVs, representing 32% of our core fleet.
The majority of these vehicles were Mini
Countrymen PHEVs. When compared to pure
EVs, PHEVs are higher-emitting. However,
they are the most practical solution for Spark
currently because many of our sales and
service staff using the vehicles are required to
travel large distances in areas where charging
infrastructure is not yet fully available.
We want to continue this momentum and we
will use what we have learned from the roll
out of PHEVs to support change across our
broader fleet. We are committed to
increasing the number of EVs and higher-
range PHEVs in our fleet over time and to
reporting transparently on this. At the end of
FY20 19% of our broader fleet was PHEV or
EV. Our long-term target is 30%.
Health and safety is another priority in our
fleet management, with vehicle safety a key
element in our vehicle choice. In FY20 we
rolled out GPS systems across our fleet. These
systems inform us immediately if any drivers
have been involved in an accident (if the
vehicle has rolled or flipped), if our vehicles
have any unusual speeding or deceleration
activity and if the device has been removed.
Another advantage is that data from the GPS
is enabling us to better understand the
distances that each vehicle covers. This data is
helping to determine future buying decisions,
such as where to deploy EV or PHEV vehicles
in each location.
E-waste and
network recycling
Spark has a comprehensive programme for
managing end-of-life network equipment and
technology. This is separated into different
waste streams – such as mobile phones,
printed circuit boards, copper cables, lead
batteries and all types of metals. The different
items are sorted, processed by our recycling
partners and then some components are sent
overseas for recycling, reselling or reusing.
In FY20 we recovered a total of 501 tonnes of
e-waste, an increase of 36% on last year. Of
this, 198 tonnes was network e-waste (up
420% on FY19), and 303 tonnes was metals,
cables and batteries (down 8%). The increase
in network e-waste is due to network projects,
In FY20 we added Mini
Countrymen PHEVs to
our core fleet.
34
Spark New Zealand Annual Report 2020
Our environment

such as the decommissioning of our PSTN
network. To improve collection we have
focused on education within Spark, and we
have begun to work with some of our larger
customers to support them to responsibly
recycle their surplus equipment.
Mobile phone recycling
Spark is a member of the Telecommunication
Forum’s (TCF) RE:MOBILE product
stewardship scheme. The scheme takes
unused mobile phones, and either
refurbishes and on-sells them in overseas
markets or recycles them. Any profits from
the scheme are donated to the charity
Sustainable Coastlines.
In FY20, 24,900 mobile phones or other
devices were reused or recycled through
this scheme. This has increased from
17,500 in FY19.
To support this scheme we have recycling bins
in our stores and offices around New Zealand.
We are working with our industry partners and
the TCF to boost the awareness of the scheme
and overcoming the barriers consumers feel in
recycling their devices. In the past year this
included promoting the scheme to our mobile
customers by mailing out 80,000 RE:MOBILE
recycling envelopes, and raising awareness
with our retail staff. The programme also
signed Olympic pole-vaulter Eliza McCartney
as brand ambassador for RE:MOBILE.
Packaging and
consumer waste
Reducing the environmental impact of our
products and packaging is a long-term focus.
This includes making decisions that reduce
packaging bulk, use recycled or recyclable
materials and avoid the use of plastics. The
environmental impacts of these decisions are
considered against packaging function,
branding requirements and cost. We
recognise that this is an area of growing
interest to our customers, and that we have
the opportunity to do more.
We work with our third-party suppliers to
reduce packaging and the use of plastics in
our products. We have recently created our
first environmentally friendly packaging for
our 5G modems, which use recycled paper
and a design that reduces the amount of
bleaching in the production processes.
In November we introduced new
environmentally friendly shopping bags at
our stores. The new bags are made from
recycled paper and are fully recyclable. We
chose a bag made from 100% recycled paper
because it has a low impact in its production
as well as a low end-of-life impact. The bags
use vegetable-based inks and are free from
any plastics.
We introduced
environmentally friendly
shopping bags made
from 100% recycled
paper at our stores.
35
Connections matterSpark New Zealand Annual Report 2020

Our communities
Our products and services help our
communities to stay connected and enable
the provision of community services. Beyond
the direct impacts of our products we want to
reach out to play a role in building healthy,
connected, and equitable communities. This
is how we create value and build social and
human capital.
We know that the impact of COVID-19 will be
felt across New Zealand and that some
communities will be more impacted than
others. The role of digital technology in
New Zealand’s recovery and transformation
brings the issue of digital equity into the
spotlight. We want a positive digital future in
which every Kiwi has the opportunity to thrive.
Digital equity
Spark works alongside the Spark Foundation
to address barriers to digital equity. The
Government’s Digital Inclusion Blueprint
1

identifies four elements essential to
digital equity:
• Access: for everyone to be able to enjoy
the benefits of the digital world we need
to ensure connectivity, affordability
and accessibility
• Motivation: people need to understand
the benefits of the digital world to have a
meaningful reason to engage with it
• Skills: the know-how to use the internet
and digital technology in ways that are
appropriate and beneficial
• Trust: having trust in the internet and
online services and the digital literacy to
manage personal information and avoid
potential harm
Spark Foundation
1 Available at https://www.digital.govt.nz/assets/
Documents/113Digital-Inclusion-BlueprintTe-
Mahere-mo-te-Whakaurunga-Matihiko.pdf
We work alongside
New Zealand to harness the
power of technology for a
positive digital future for all.
Spark Foundation is the charitable
organisation supported by Spark
New Zealand, taking the lead in delivering
Spark’s community work. The Foundation’s
vision is that no New Zealander is left
behind in a digital world. Its mission is to
accelerate towards digital equity, including
access, skills, capabilities and wellbeing in
the digital age.
Spark Foundation supports the delivery of
Skinny Jump, managing the partnerships that
deliver the programme in the community.
Spark Foundation also allocates funding for
programmes through a strategic partnership
approach, focusing on partnering with
organisations whose work is aligned
to its strategy.
In FY20 Spark Foundation sold
the Givealittle crowd funding platform. Spark
Foundation acquired Givealittle in 2012 with
the aim of growing a generosity platform that
would make a difference to New Zealand.
Over that time donations through the platform
grew from $650,000 to $33 million in FY19.
The decision to sell Givealittle was taken after
a review of Spark Foundation’s strategy, to
help ensure Givealittle’s continued growth and
better enable Spark Foundation’s resources to
invest in accelerating digital equity in
New Zealand.
Spark Foundation’s partnership with The
Electric Garden mixes growing food with
digital technology to support learning.
36
Spark New Zealand Annual Report 2020
Our communities

Accelerating digital equity
through Skinny Jump
Census data estimates that around 211,000
New Zealand homes don’t have access to
broadband. Research from Internet NZ
indicates that cost is the biggest barrier to
this access.
To help bridge the digital divide Spark
Foundation launched Jump in 2016,
providing internet access to those who go
without. Jump was first targeted at families
with school-aged children.
In March 2020 Jump was relaunched as
Skinny Jump, as Jump runs on the Skinny
mobile broadband network. Eligibility for
Skinny Jump was extended to include job
seekers, senior citizens, refugees, new
migrants, people recently released from
prison, people with disabilities and people
living in social housing.
With the launch of the new Skinny Jump the
cost was also halved, to $5 for 30GB of data,
with the option to renew up to five times a
month. The service is entirely prepaid, so
there are no long-term contracts or credit
checks needed, and all it takes to get set up is
registering through a partner and plugging in
the modem.
Skinny Jump is available through a community
partner network, which is overseen by Digital
Inclusion Alliance Aotearoa (DIAA) and
includes 176 local partners nationwide
spanning community libraries and community
hubs amongst others.
Since the relaunch in March the Skinny Jump
customer base has nearly doubled to reach
9,559 by the end of FY20. The aspiration is to
reach 20,000 homes by the end of FY21.
In response to COVID-19 Skinny Jump also
worked in partnership with the Ministry of
Education and AUT to connect school and
university students in need of broadband at
home free of charge.
See: www.skinny.co.nz/jump
“Digital equity is a critical issue in New Zealand, but
something most of us take for granted. If you can’t get
online, then you’re already ten steps behind the person who
can – so it’s exciting to see Skinny Jump being offered to
more groups of Kiwis who are currently missing out. We’ve
witnessed first-hand the incredible difference that Jump has
made to the lives of the school-aged families who’ve been
on the programme and can’t wait to see the impact it will
have on the lives of so many other New Zealanders.”
Sue Kini, Digital Inclusion Alliance Aotearoa (DIAA)
“Jump has been absolutely life-changing for me and my
whānau. We live rurally and once we got our modem, we
were able to plug in and get online straight away. My kids
are smart but without access to the internet at home I was
worried that they would fall behind in their schoolwork. It’s
been such a fantastic tool for my whānau that I promote it to
other Kiwis, just like us, who might be struggling to afford an
internet connection at home. No one should miss out on
having access to the internet because of the cost.”
Shona Te Huki, a Taranaki mother with school-aged kids who has been on the
Jump programme since 2018.
37
Connections matterSpark New Zealand Annual Report 2020

Emergency Phone programme for
victims of domestic violence
At the start of Alert-Level 4 lockdown, Spark was approached by Shine and Women’s
Refuge NZ to provide mobile phones loaded with prepaid credit for individuals who
were fleeing domestic violence during lockdown. As part of this, 40 mobile phones with
prepaid credit were sent to Women’s Refuge centres around the country.
Spark Foundation has now set up an ongoing Emergency Phone programme to support
domestic violence groups across New Zealand. The programme is a joint venture between
Spark Foundation and 100 domestic violence support organisations. As part of the new
initiative, 570 Skinny Tahi Phones with $20 Skinny prepaid credit will be made available to
support our most at-risk New Zealanders.
Employee donations
$269
,
328
(FY19: $481k)
Spark’s matching
$172
,
692
(FY19: $221k)
Number of employees
participating
488
(FY19: 735)
Spark Give results
for the year
Total staff eligible
for volunteering
1
4,383
Total employee
participation

501
(2019: 806)
% of employee
participation
11%
(2019: 18%)
Employee volunteering
for the year
Spark Give
Our payroll giving programme, Spark Give,
enables our people to donate to schools and
charities via their pay, with benefits for doing
so. Spark Foundation matches the amount
employees donate dollar-for-dollar up to
$500 per employee per annual year. Since
this programme was established in July 2011
over $6 million has been donated to
Volunteering and
Payroll Giving
Our approach to staff volunteering
Spark employees are able to take one
volunteer day each year. The Spark Foundation
encourages skills and mission-based
volunteering. Skill-based volunteering means
our people focus on opportunities that take
advantage of their specialised skills and talents
to assist not-for-profits. Mission-based
volunteering means volunteering with
organisations whose work aligns with the
purpose of Spark – to help all of New Zealand
win big in a digital world.
The Spark Foundation works with our people
to help them find an appropriate skill or
mission-based volunteering opportunities.
The Foundation works with two partners,
Helptank and Voluntari.ly, to help drive
greater uptake of the Spark volunteer day
and also greater impact from the volunteering
our people do.
COVID-19 was a catalyst for many of our
employees to consider what they could do to
support their communities. Many employees
were seconded to volunteer to support the
expanded Skinny Jump. However, our
decision to put our volunteer programme on
hold in lockdown between March and June
has contributed to a drop in employee
participation.
We are also working to align digital equity
work with employee volunteering to offer
support to seniors and other groups. We are
piloting a digital mentoring programme to
match our employees with seniors who are
new Skinny Jump customers who request
support making the most of the digital world.
New Zealand schools and charities. We are
currently reviewing how the Spark Give
programme aligns to Spark Foundation’s new
strategy and digital equity focus. Because of
this we haven’t actively promoted payroll
giving to our employees in FY20, and we
have seen our employee giving reduced
compared to FY19.
1 Excludes selected subsidiaries and fixed-term employees.
38
Spark New Zealand Annual Report 2020
Our communities

Spark’s Māori Strategy
Our Māori Strategy is about cultural
transformation, finding the shared space
between Te Ao Māori and the corporate
world. It aims to build deeper more authentic
partnerships with our communities, our
customers and our people.
Spark’s first Māori Business Strategy, Te Pou
Arataki, was launched in 2017. A key focus
was ‘Kanohi Kitea’– for our people to be seen,
empowered and connected. Over the past
three years the strategy has been successful
in driving change across Spark through
programmes such as our Te Reo Māori Plan,
providing cultural responsiveness training to
key Spark people, and delivering a self-
directed Māori Made Easy programme to 75
tauira (students). Spark has also formed
partnership to support our communities,
including the Marae Digital Connectivity
project, and supporting Kapa Haka, Matariki
and Te wiki o Te Reo Māori.
In the year ahead our focus is moving to
further growth by developing strategic
partnerships with Māori, supporting the
development of, and unleashing, the Māori
economy. To do so we are evolving Spark’s
Māori Strategy. We have taken Te Pou Arataki
and reimagined Te Korowai Tupu o Kora
Aotearoa, the cloak of growth of Spark
New Zealand. Te Korowai Tupu is inspired,
driven, and led by kawa (protocol), tikanga
(process) and kaupapa Māori and takes the
threads of a tangata whenua world view that
can be woven across Kora Aotearoa, into our
strategic pillars, business strategies, Spark
values and shared Māori values to embrace
the physical and spiritual nature of te ao
Māori. Our success will be measured through
authentic partnerships delivering great
outcomes for Māori and Aotearoa.
Te Korowai Tupu has three key threads
(hukahuka) within the strategy. Toitū –
sustainability, Te Tiriti o Waitangi – The Treaty
of Waitangi, and Mana Taurite – Equity. We
aim to work in partnership with Māori to effect
change to unleash the potential of Māori
Business and all New Zealanders as a driver
for economic, cultural, environmental and
social growth.
Spark’s role in the Marae Digital
Connectivity initiative
We are working with the Government to
bring our broadband and technology
capabilities to the Marae Digital Connectivity
initiative as a key connectivity partner.
A Digital Marae is a marae with reliable digital
connectivity that allows communities to be
more connected than ever before, providing
pathways to digital health, economic, social
and educational services. Technology can
enable stronger, safer, more connected
communities, even in the most remote
rural areas.
Spark has taken an approach guided by
tikanga Māori to deliver this programme
alongside Crown Infrastructure Partners (CIP)
and Te Puni Kōkiri.
Kupu 2.0 to support Te Reo Māori in
the classroom
Spark’s Kupu is a breakthrough mobile app
that helps people learn Te Reo Māori by
translating photos of objects around them.
In the past year we’ve launched an improved
version that can now be used across more
schools in Aotearoa, thanks to the launch of a
new version for use on tablets and desktops.
Kupu is a free and easy app for teachers to
use. It is powered by Google cloud vision
technology, combining with Te Aka Māori
Dictionary translations.
We launched an
updated version of
‘Kupu’ for use on
tablets and desktops.
We celebrate Matariki to
recognise our unique Māori
identity and continue
building our inclusive Blue
Heart culture.
39
Connections matterSpark New Zealand Annual Report 2020

Our Board
1. Justine Smyth, CNZM
Chair
Justine joined the Board of Spark
New Zealand in December 2011 and became
Chair in 2017. She has extensive experience
in governance, mergers and acquisitions,
taxation and financial performance of large
corporate enterprises, as well as actively
investing in small and medium enterprises
(SMEs). Her background is in finance and
business management, having been a Partner
with Deloitte and Group Finance Director at
Lion Nathan. She is currently a director of
Auckland International Airport Limited, and
Chair of The Breast Cancer Foundation
New Zealand. Justine has a Bachelor of
Commerce from the University of Auckland
and is a Fellow of Chartered Accountants of
Australia and New Zealand and a Chartered
Fellow of the Institute of Directors. In 2020
Justine was appointed a Companion of the
New Zealand Order of Merit for services to
governance and women.
2. Alison Barrass
Non-executive Director
Alison joined the Board in September 2016.
She brings a broad range of skills, including
knowledge and expertise in the fast-moving
consumer goods (FMCG) sector and in
governance, leadership and marketing-led
innovation. Her background includes 30 years
experience at major international FMCG
companies, including PepsiCo, Kimberley-
Clark, Goodman Fielder and Griffins Foods.
She is currently a director with GWA Group,
Heilala Vanilla, Lewis Road Creamery, Rockit
Global and is Chair of Tom & Luke. Alison was
previously Chair of Methven Ltd, Chair of the
Breast Cancer Research Trust and a director
of The Parenting Place. Alison has a Bachelor
of Science from the University of
Southampton and a Business Diploma in
Marketing from the University of Auckland.
1.
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40
Spark New Zealand Annual Report 2020
Our Board

3. Paul Berriman
Non-executive Director
Paul joined the Board in December 2011,
bringing over 35 years of international
experience in telecommunications, media
and convergence. Since 2002 he has been
Group Chief Technology Officer of the HKT
Trust, where he’s responsible for leading the
group’s product and technology roadmap
and strategic development. Prior to this he
was Managing Director of management
consultancy Arthur D. Little in Hong Kong and
he has held roles in Reuters and several major
Hong Kong service providers. In 2009 Paul
was recognised by the IPTV World Forum
with its Special Merit Award for Outstanding
Industry Contribution and in 2008 he was
listed as one of the Global Telecoms Business
Magazine’s top 100 “most influential persons
in telecoms”. He is a Chartered Engineer who
holds a Bachelor of Science in electro-
acoustics from the University of Salford (UK)
and a Masters in Business Administration
from the University of Hong Kong. Paul is a
Director of Rain Networks in South Africa, and
the global Next Generation Mobile Networks
Alliance of mobile network operators.
4. Warwick Bray
Non-executive Director
Warwick joined the Board in September
2019. He brings over four decades of
experience in the international
telecommunications, technology and media
sectors, most recently in senior executive
roles at Telstra. During his nine years at Telstra
up until 2018, his executive roles comprised
Chief Financial Officer, Group Managing
Director Product, Executive Director Mobile
and Head of Corporate Strategy. Earlier in
his career, he was a managing director at
JP Morgan (London) and Dresdner Kleinwort
Wasserstein (London) in telecommunications
equity research. He also worked at
McKinsey & Company in Europe, advising
telecommunications companies on strategy,
regulation and operational improvement, and
as a network systems engineer at Hewlett
Packard. Warwick has served on the GSMA
strategy committee, the boards of Hong Kong
mobile business CSL and Australian pay TV
operator Foxtel and as Chairman of the
Australian Mobile Telecommunications
Association. He holds a Bachelor of
Science (Hons) and a Masters in Business
Administration from the University
of Melbourne.
5. Pip Greenwood
Non-executive Director
Pip joined the Spark Board in April 2018,
bringing significant experience in capital
markets, mergers and acquisitions,
telecommunications and governance. She
was formerly interim CEO of Russell McVeagh
and a senior partner at the firm, with over ten
years experience on the firm’s Board
including time as its Chair. Over the years
Pip has advised on many high-profile
New Zealand corporate transactions that have
changed the face of industries. She was a
member of the New Zealand Takeovers Panel
from 2007 to 2011 and is a current director of
Fisher & Paykel Healthcare, Westpac
New Zealand, The a2 Milk Company and
a trustee of the Auckland Writers Festival.
Pip has a Bachelor of Laws from the University
of Canterbury.
6. Jolie Hodson
Chief Executive and Executive Director
Jolie joined the Board in September 2019. As
Chief Executive Officer Jolie is responsible for
ensuring Spark has a sound strategy and
applies her leadership to delivering on that
strategy, while building a leadership team
around her and a business that is able to
adapt to the fast-changing world of digital
services. Jolie became CEO on 1 July 2019.
Prior to that she was Spark’s Customer
Director. Jolie joined Spark in 2013 as CFO
before becoming CEO Spark Digital in
October 2016 – and in both roles played a
pivotal part in transforming Spark from a
legacy telco to a growing digital service
company. Prior to this, she worked for
20 years in a range of senior finance roles
for the Lion Group and Deloitte. She has a
Bachelor of Commerce from the University
of Auckland, and is a Fellow of Chartered
Accountants of Australia and New Zealand.
7. Ido Leffler
Non-executive Director
Ido joined the Board in June 2014. He brings
experience in developing digital brands
and extensive networks in the start-up
communities of Silicon Valley and Australasia.
Ido is the co-founder and Chief Executive
Officer at Yoobi, a US based school supplies
company that engages kids through bright
colours, cool designs and, most importantly,
cause. He is also Co-founder of Yes To Inc – a
leading global natural beauty brand, and the
Co-Founder of Beach House Group – a global
consumer products solutions house. He has a
Bachelor of Business from the University of
Technology in Sydney.
8. Charles Sitch
Non-executive Director
Charles joined the Board in December 2011.
He has more than 20 years experience in
driving business strategy, having worked for
McKinsey & Company from 1987, where he
became senior director in 2010, primarily
working with CEOs and boards on strategy
and operations turnarounds, before retiring in
2010. Since 2006 he has been involved in
various new business ventures. Charles is
Chairman of the Board of Trinity College at
the University of Melbourne. He holds a
Masters in Business Administration from
Columbia Business School and a Bachelor
of Laws and a Bachelor of Commerce
from Melbourne University. He is also a
Graduate of the Australian Institute of
Company Directors.
41
Connections matterSpark New Zealand Annual Report 2020

Strategic role of the Board
Spark’s Board plays a critical role in helping
to guide and test company strategy, by
engaging in an ongoing conversation with
the Leadership Squad around key strategic
decisions. These decisions are in relation to
the long-term strategic planning and direction
of the business, including non-financial
performance and our ability to create value
in the medium and long term. This includes
customer experience, environmental, social
and governance measures.
During FY20 the Board provided oversight
and strategic support to assess the impacts
of COVID-19 on Spark’s business. Regular
briefing calls were held with management to
discuss Spark’s response, including steps
taken to protect our people and keep our
business running as a critical lifeline utility. As
the body elected by shareholders to protect
and enhance the value of Spark’s assets, the
Board has oversight of Spark’s financials and
the annual and three-year planning
processes. Board members engage in robust
discussions with management around the
strategic direction of the business to test and
ensure investment is going towards the
things that will deliver the best outcomes for
the company and shareholders. This flows
through to Spark’s remuneration policies
where there is Board involvement in setting
targets and hurdles for short-term and
long-term incentives.
The Spark Board has a strong focus on
improving diversity and inclusion across
Spark – and in particular improving a
balanced gender representation at senior
levels. This has been led by Justine Smyth in
her previous role as Chair of the HRCC and
more recently in her current role as Board
Chair. Justine and her fellow Board members
have ensured diversity and gender equality
are true priorities at Spark, have challenged
the business to set stretch targets in this
regard and have helped lay the foundations
for the culture of diversity and inclusion that is
now flourishing across the business.
Board changes
The Board appointed Warwick Bray, as a
non-executive director, and Chief Executive
Jolie Hodson, as an executive director, to the
Board effective from 23 September 2019.
Future Director
Spark also supports the Future Directors
programme and appointed its second Future
Director Ana Wight effective 1 February 2020
for a period of 12 months.
Board succession
Spark’s Board has an appropriate mix of
tenure, skills, diversity and experience. This
allows the Board to be ambitious and to
deliver on those ambitions and to enable
Spark to tackle the challenges and
opportunities of the digital era.
The Board skills matrix on the following
page outlines the qualifications, capabilities,
geographical location, tenure and gender
of each member of the Board.
There is an ongoing Board succession
programme, which is focused on finding new
directors with relevant skills and experience
that complement the diverse perspectives
already represented around the table.
Our Spark City
building in Auckland.
42
Spark New Zealand Annual Report 2020
Our Board