Spark New Zealand releases three-year strategy

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


MARKET RELEASE
16 September 2020

Spark New Zealand releases three-year strategy

Spark today released details of its three-year strategy covering the period FY21 to FY23.

The strategy builds on the momentum of the prior three years, which delivered compound
annual growth in shareholder returns of 13% – the highest of Spark’s international peer group
1
.

Spark Chair Justine Smyth said: “Our next three year strategy builds on the strong foundations
we have built over the last three years and remains focussed on what matters most – our
customers, our people and supporting New Zealand’s economic transformation.

“We are starting this new strategy at a time of global uncertainty, and with the challenge of
Covid-19 front and centre. However we are also starting with strong market momentum, a
highly capable and engaged team, a leading network and a diversified business that is well
positioned to support New Zealand to adapt and thrive in an increasingly digital world.”

Spark CEO Jolie Hodson said the Company will focus on a core set of organisational capabilities
that will differentiate Spark and provide better experiences for its customers – fuelling growth in
both established and future markets.

“At its heart, this strategy is about accelerating the things we know will give us a competitive
edge because they respond to the trends that are shaping our market and the evolving needs of
our customers.

“Customers are looking for ‘uber-like’ digital experiences and will move to the brands that make
their lives easier, so we will accelerate our focus on delivering simple, intuitive customer
experiences that ‘just work’.

“To do this we need to continue to simplify Spark, but we also need to deeply understand our
customers and show up in a way that is timely and relevant – and we will achieve this through a
more sophisticated use of data, artificial intelligence and machine learning.

“Our sustained network investment will continue, with a focus on our 5G rollout and on building
unconstrained capacity in wireless, which will allow us to respond to the increasing demand for
data from our customers.

“We have hit a new milestone on this journey today, with the launch of uncapped wireless
broadband in metropolitan areas across the country
2
.”

Building a culture defined by its engagement, diversity and inclusion remains a core strategic
imperative, with an ambition to achieve top-decile Agile maturity and 40:40:20 representation
3

Spark-wide by FY23.

1
TSR calculated as share price and dividend per share (reinvested at the ex-dividend date) over Spark's FY18 –FY20 period (1 July 2017
to 30 June 2020). Peer group is not exhaustive but is a selected group of primarily integrated telco operators that are deemed the closest
peers to Spark in terms of market exposure (Verizon, BT Group, Telstra, Swisscom, SingTel, AT&T, Orange, KT Corporation, Vodafone
Group, Telecom Malaysia, BCE, Deutsche Telekom).
2
Spark will remove data caps on Unplan Metro wireless broadband plans from 23 September 2020
3
Spark has committed to the Champions for Change 40:40:20 ratio at all levels of employment (i.e. at each level of seniority, 40% of
both women and men, with the remaining 20% being of any gender).

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


“Highly engaged and capable people create highly engaged customers and we want to build on
the momentum we have created over the last three years,” continued Hodson.

The new strategy is focussed on Spark’s established markets of wireless, broadband and cloud,
as well as three future growth markets – IoT
4
, digital health and sport.

“The benefit of focussing on a set of core capabilities is that they pay off immediately in our
established markets, while also positioning us to grow in future markets.

“Our investment in 5G, edge computing and network slicing will open up new opportunities in
wireless and will enable smart business solutions beyond connectivity alone. Our end-to-end
digital services capability across cloud, security and service management positions us well to
accelerate digital transformation as businesses adapt to Covid-19.

“We see significant opportunities for growth in IoT, as New Zealand transitions to future ways of
working and pursues productivity improvements across all sectors.

“We created Spark Health several years ago and have been working in partnership with health
providers across the country to provide telecommunications and cloud services. The healthcare
sector is now looking to accelerate this digitisation, and 5G will open up new possibilities for
advanced healthcare applications in the future.

“With Spark Sport we have been focussed on increasing choice and value for New Zealanders,
and a year on from launch we have bolstered the content on our platform, including signing
New Zealand Cricket. We will continue to make targeted content investments that differentiate
Spark through the dual lens of customer desirability and commercial value.”

“At the same time, we will remain focussed on improving our operational effectiveness and
productivity, so we can continue to provide good value to our customers while creating the fuel
for growth.

“Our FY23 aspiration is to be primarily wireless, digitally native and a leading cloud custodian,
with 5G and IoT deployed nation-wide, unconstrained capacity, and a top-decile culture defined
by its engagement and inclusivity.”

The strategy also articulates Spark’s three sustainability focus areas – improving the Company’s
own sustainability performance, lifting digital equity, and supporting New Zealand’s economic
recovery and transformation.

“Our purpose is to help all of New Zealand win big in a digital world – the key word being all. In
New Zealand over 200,000 homes have no internet connection – some by choice, but for the
majority this is due to barriers such as cost, or a lack of access or skills. This divide has never
been as stark as during Covid-19, and we want to work in partnership with Government,
businesses , and the community to drive meaningful change,” finished Hodson.

Authorised by:
Alastair White
GM Capital Markets

- ENDS –



4
Internet of Things

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


For media queries, please contact: For investor relations queries, please contact:
Leela Gantman Alastair White
Corporate Relations Director GM Capital Markets
+64 (0) 27 541 6338 +64 (0) 21 228 3855

---

16 September 2020
INVESTOR
STRATEGY UPDATE
SPARK

Justine Smyth
Chair

Jolie Hodson
Chief Executive Officer
2023 STRATEGY
SPARK

The last three years

Become the lowest cost operator, through
radically simplified and digitisedprocesses,
products and services
1
Up-weight our emphasis on wireless
services and investment
Do better at serving price-sensitive
customers, by further developing our multi-
brand strategy
2
3
NB: +30 NPS is the minimum standard we aspire to for all NPS measures including market,
relationship, interaction, journey and employee metrics
+30NPS
Outstanding customer
experience
Growing
key segments
Top 10
global telco ROI
Lowest cost
operator
To p-decile culture
Holding market share
WE WOULD DO
W H AT
BY 2020
WE SAID
5

Outstanding customer
experience
Significant improvements across most key NPS
(1)
measures – with many above
+30.
Solid
progress
Holding market share
Winning in mobile, growing connections and outpacing the market in mobile
service revenue share growth.
New Zealand’s largest hybrid cloud provider.
Return to broadband connection growth with focus on stablisingrevenues.
Achieved
Lowest cost operator
$228m gross cost reduction since FY17. Delivered through Quantum programme
focused on digitisation, automation and simplification and ongoing focus on
productivity and efficiency.
Delivered
Growing key markets
Sustained growth in mobile, cloud, security and service management.
Broadband market remains challenging.
Achieved
Top decile culture
Employee NPS +66.Continue to mature Agile ways of working.Strong diversity
and inclusion focus.
Achieved
Top 10 global telco ROI
Ranked #1 against international peers
(2)
for Total Shareholder Returns.
Compound annual growth rate of 13%
(3)
.
Three-year
(3)
Return on Invested Capital 16% per annum. Ranked #2 against
international peers
(2)
.
(1)
Net Promoter Scoreis an index ranging from -100 to 100 that measures the willingness of an employee or customer to recommend a company to others
(2)
Pre-tax ROIC and TSR versus international peers: Verizon, BT Group, Telstra, Swisscom, Singapore Telecom, AT&T, Orange, KT Corporation, Vodafone Group, Telecom Malaysia
(3)
Representing the last three reported years for each peer
Revenue
0-2% CAGR
Achieved
EBITDAI
at least 31% margin
Achieved
Dividend
Sustainable total dividend of
25cps or above that is not
supplemented by debt
Solid
progress
AND INDUSTRY LEADING RETURNS
3 YEAR
PLAN SUCCESSFULLY DELIVERED
WITH STRONG MARKET OUTCOMES
6

(1)
TSR calculated as share price and dividend per share (reinvested at the ex-dividend date) over Spark's FY18 – FY20 period (1 July 2017 to 30 June 2020)
(2)
ROIC: pre-tax ROIC calculated as the average of annual operating EBIT divided by average invested capital, for the last three reporting years for each peer
(3)
Peer group is not exhaustive but is a selected group of primarily integrated telco operators that are deemed the closest peerstoSpark in terms of market exposure
Ranked #1against international peers for Total Shareholder
Returns. Compound annual growth rate of 13%.
Ranked #2 against international peers.
Spark three-year Return on Invested Capital 16% per annum.
18%
16%
15%
13%
13%
11%
10%
10%
8%
7%
6%
6%
5%
Verizon
Spark
BT Group
BCE
Telstra
Swisscom
Singapore Telecom
Deutsche Telekom
AT&T
Orange
KT Corporation
Vodafone Group
Telekom Malaysia
13%
12%
7%
4%
3%
(2%)
(4%)
(5%)
(7%)
(9%)
(11%)
(13%)
(22%)
Spark
Verizon
Swisscom
BCE
Deutsche Telekom
AT&T
Orange
Telstra
KT Corporation
SingTel
Vodafone Group
Telecom Malaysia
BT Group
3 YEAR TSR
(1)
& ROIC
(2)
VS INTERNATIONAL PEERS
(3)
7

Our new context

•IMF has predicted the largest global economic downturn since the Great Depression of the 1930s, this will have flow on impacts forNew Zealand
given our dependence on global trade and tourism.
•Tourism unlikely to return to historical levelsfor some time.
•New Zealand will enter a recession and unemployment is forecast to increase.
•The impact on small-medium businesses, many of whom are our customers, may be significant.
•This creates an environment ofvolatility and uncertainty, which has been further exacerbated by the resurgence of COVID-19.
•Billing collection risk as customers experience financial hardship and wage subsidies roll off.
•Mobile market growth likely to be slower, particularly roaming and mobile handsets.
•IaaS and SaaS
(1)
likely to benefit, but potentially some offset in other IT outsourcing programmes.​
•Greater confidence to increase caps and drive wireless broadband uptake​ after strong network performance during lockdown.
•Accelerate cost reduction programmes.
•5G rollout and sustainability focus on digital divide even more critical to support New Zealand’s recovery.
(1)
Infrastructure as a Service and Software as a Service
TO ADAPT TO OUR NEW NORMAL
WE
ARE NOT IMMUNE TO COVID-19 IMPACTS
BUT ARE WELL POSITIONED
9

COVID-19 has accelerated the macro trends we have been planning for
A seismic shift of business and
society from physical to digital
solutions.
Increasing pace of technology
disruption and business
transformation.
An unprecedented recessionary
event requiring a period of
nation building and a focus on
affordability.
Greater emphasis on connectivity as a
basicsocial need.
THE MAGNITUDE AND
MACRO
PACE OF DISRUPTION
TRENDS WILL INCREASE
10

The next three years

Customer Director
Grant McBeath
Corporate Relations
Director
Leela Gantman
Finance Director
Stefan Knight
General Counsel
Melissa Anastasiou
Human Resources
Director
Heather Polglase
Product Director
Tessa Tierney
Marketing Director
Matt Bain
Technology Director
Mark Beder
Chief Executive Officer
Jolie Hodson
12
ENERGISED
AND CAPABLE
LEADERSHIP TEAM

1
Customers expect
‘uber-like’ digital
experiences,
and will choose
those who offer it
2
Data growth and
new content creating
opportunities for
growth and
monetisation
3
Data insights unlock
better customer
experiences
4
Wireless is
increasingly able
to meet most
customer needs
13
OUR THINKING
FOUR
KEY INSIGHTS
AND HELPED SHAPE
HAVE EMERGED

Stay the course
•Historical sources of value creation will erode over time
•Macro trends create clear upside opportunity to capture additional value
Become a super lean, lowest
cost connectivity provider
•Incumbent players face greater challenges due to legacy products, systems and channels
•More exposed to future disruptive market entrants
•Macro trends create clear upside opportunity to capture additional value
Expand into new growth
adjacencies beyond the core
•Few attractive growth markets where showing up and deploying capital is enough to
succeed – need best-in-class, foundational capabilities that underpin success
•Limits optionality and increases risk through ‘big bets’
•Divided leadership focus and resource allocation between ‘core’ and new markets
Adopt a capability centric
approach within the core
and beyond
•Focuses on protecting and expanding Spark’s differentiation– value-accretive in the
short-termthrough thecore and the long-termthrough new markets
•Increases optionalityin a rapidly changing environment
•Attracts the best talent
2
1
3
4
14
CONSIDERATIONS
SHAPED OUR
MACRO
STRATEGIC CHOICES
TRENDS
AND INSIGHTS

15
My interactions with
Spark ‘just work’
Simple, intuitive
customer experience
Spark delivers me
connectivity,
anytime, anywhere
Automated,
smart network
Spark offers me the
right products at the
right time
Deep customer
insights
I want to work at Spark to
grow my career and help
deliver Spark’s purpose
Growth mindsets
CUSTOMER BENEFIT
SPARK BENEFIT
Engaged customers
Upsell and cross sell
Efficiency in cost to serve
Growth opportunities
Efficient cost base
Core foundation to great
digital experiences
Marketing efficiencies
ROI
Upsell and cross sell
Highly engaged talented
people will strive to
deliver more
CAPABILITIES
COMPETITIVE
ADVANTAGE
WORLD CLASS
BY BUILDING FOUR
OUR STRATEGY FOCUSES ON INCREASING OUR

Simple, intuitive customer experience
Deep customer insights
Automated, smart network
Growth mindsets
Established
markets
Wireless
Cloud
Future
markets
IoT
(1)
Digital
Health
Sport
16
Broadband
(1)
Internet of Things
FUTURE MARKETS
THESE
FOUR CAPABILITIES
IN OUR ESTABLISHED MARKETS AND
WILL REINFORCE GROWTH

Primarily
Wireless
~80% of relationships
on wireless
technology
.
5G and IoT
(1)
deployed
nationwide
Unconstrained
mobile capacity
5G
Everywhere
Skills rebalanced
Top decile culture, defined
by inclusivity and growth
Best-in-class adaptive
leadership
Future
Workforce
Bringing the best of
private and public cloud
together with our
service expertise
Leading Cloud
Custodian
Digital channels are the
predominant choice
Experience consistently
replicated across all
channels
Digitally
Native
17
Delivery of these aspirations will result in highly engaged customers and people, growth and top decile returns
WHERE
WE ASPIRE
BY 2023
TO BE
(1)
Internet of Things

1.
Simplificationand moving off legacy technology will pave the way for technology
evolution, new revenue streams, improved cost base and environmental performance.
2.
5G rollout will cater to customers with high data needs, underpin innovation and free
up 4G spectrum to increase capacity in regional and rural areas.
3.
Wireless broadband take-up will continue to grow as 5G delivers greater capacity and
speeds over time.
4.
Big data and AI
(1)
driving enhanced customer experience, lower cost of acquisition and
improving data insights and return on marketing investment.
GROWTH IN WIRELESS
A STRATEGIC
FOCUS
WILL UNDERPIN
ON UNCONSTRAINED CAPACITY
(1)
Artificial Intelligence
18

Our 3 Year Goals
•Brand Strength +10pp
•+40 Customer
Engagement (NPS)
•+70 Employee
Engagement (eNPS)
•Sustainable Free Cash
Flow Growth andTop
Decile TSR
•Best Cost ~31% EBITDAI
margin
•Lift Digital Equity +25k
Our Strategic Pillars
•World Class Capabilities
and Culture
•Grow Established Markets
•Accelerate Future Markets
•A Positive Digital Future
for all of New Zealand
Our Values
•Whakamana, We Empower
•Matomato,
We Succeed Together
•Tūhono, We Connect
•Māia, We are Bold

Our
Strategic
Pillars
1
2
3
4
World Class Capabilities
and Culture
•Simple, intuitive customer experience
•Deep customer insights
•Smart, automated networks
•Growth mindsets
Grow Established Markets
•Wireless
•Broadband
•Cloud
Accelerate Future Markets
•IoT
•Digital Health
•Sport
A Positive Digital Futurefor all
of New Zealand
•Create a Sustainable Spark
•Economic Recovery and Transformation
•Champion Digital Equity

Create a
Sustainable Spark
Be bold in our business to have a positive
impact on our communitiesand the
environment.
•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
Economic Recovery and
Transformation
Help New Zealand transform to a high
productivity, low carbon economy.
•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
Champion
Digital Equity
Champion digital equity so all New
Zealanders have the opportunity to thrive
in a digital future.
•Extend the reach of Skinny Jump to benefit more households
– 35,000 by June 2023
•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
We will work alongside New Zealand to harness
the power of technology and create a positive
digital future for all.

Our 3 year goals
Lift digital
equity
+25k
Best cost
~31% EBITDAI
margin
Sustainable
free cash flow
growth and
top decile
TSR
(2)
+40 NPS on
every
measure
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
Brand
strength
+10pp
(1)
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
+70 eNPS
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
22
TO HELP
ALL OF NEW ZEALAND
WIN BIG
OUR PURPOSE
IN A DIGITAL WORLD
Āwhinatia ngā tangata katoa o Aotearoa Kia matomato te tipu I te ao matihiko.
(1)
Percentage points
(2)
Total Shareholder Returns

SIMPLE INTUITIVE
CUSTOMEREXPERIENCE
Tessa Tierney
Product Director

Delivering scalable, distinctively ‘Spark’ customer journeys that ‘just
work’ and drive customer engagement and loyalty
Discovering
our products
Joining Spark
Using our
products and
paying for them
Enquiring about
our products
Changing
and renewing
24
W H AT
IS IT?
CUSTOMER EXPERIENCE
SIMPLE INTUITIVE

70% of broadband customers now onnew broadband
technologiesin line with our ambition to be mostly
ex-copper by 2020 and reducing complexityof legacy
products and services
~33% of legacy Public
Switched Telephone Network
(PSTN) decommissioned
(2)
One unified cloud
portfolio established
across Spark
~570k customers
migrated
(1)
onto newfit
for purpose plans
Significant reduction in
customer care interactions
down 40% since 2017
~1.1m Spark App users
(2)
completing ~3.6m
transactions per month
(3)
141 Bots automating tasks
across the business and
proactively solving customer
issues
(1)
For the three year period from rom 1 July 2017 to 30 June 2020
(2)
As at 30 June 2020
(3)
Average self service interactions for the period 1 July 2019 to 30 June 2020
25
WHERE
WE ARE
ON THE JOURNEY

Ambition for FY23Where Spark is today
Up to 4 months to release new products and
customer experiences
Ability to release on demand products and
customer experiences
Taking agility to the
next level
100s of plans that are built ‘one off’ and managed
by complicated eligibility processes
10s of simple modular products with less complex
rules and conditions
‘Product of the
future’
Digitisation
Onboardingnew partners takes ~6 monthsOnboardingany partner takes <10 days
Partnering
Multiple screens used by customers and frontline
employees across our various channels/portals
‘Apple like’ frontline model, wherea single screenis
shared across customers and employees
Legacy systemsstill usedfor some functions
Everything runs on our new re-engineered systems
Finishing IT
consolidation
26
OUR
2023
AMBITION

Investment
Revenue
Efficiencies
Financial Performance
Revenue growth captured under deep customer
insights capability and key market strategic pillars
~$40m-$50m cost efficiencies over the next three
years
Operational Performance
~20% reduction in customer care interactions
~90% of broadband customers migrated off copper
to fibre and wireless
Ambition for FY23
(1)
•Strong acquisition and retention benefits from simplified plan
offerings and enhanced digital customer experience
•On demand product and customer experience releases
providing churn benefits
•Partnering to deliver customers with best-in-class value added
services resulting in new revenue streams
•Investment in development and testing to support
propositions and on demand product and customer
experience releases
•New partner onboarding costs
•IT system investment to support ongoing digitisation of
customer experience and completing IT consolidation
•Plan rationalisation driving reductions in customer care and IT
maintenance costs
•Digitisation delivering channel and customer care efficiencies
•Completion of IT consolidation lowering customer care, IT
system and channel cost base
(1)
Refer to financial aspiration section for overall summary of FY23 financial performance ambitions
27
DELIVERING
OPERATIONAL AND
CLEAR CUSTOMER,
FINANCIAL BENEFITS

Risks
Opportunities
Revenue loss due to higher
churn and customer disruption
during migration
Competitive inflexibility –less inclined to launch new product features to match competitor
activity and/or reduced customer demand due to reduced choice
Deep experience in large scale,
complex migrations through the re-
engineering programme
Testing and learning with sample subset
of customers first,before scaling to
whole base
Designing from the customer back by
using customer insights toinform
product portfolio choices
MITIGATED
BY
MITIGATED
BY
Fastercustomer migration to simplifiedproduct offerings to unlock
better customer experience and cost savings earlier
More radical simplification– only 3 plans
Holistic business process simplification and automation, widening our
operational efficiency gains
More focus on each product, shortening innovation cyclesand further
increasing our speed to market
Responding to competitive offers through
better use of the household data and
precision marketing –right customer, right
response rather than blanket product/plan
changes
Agileways of working and ability to pivot
and flex quickly
28
BALANCING
AND RISKS
OPPORTUNITIES

Our 3 year goals
Lift digital
equity
+25k
Best cost
~31% EBITDAI
margin
Sustainable
free cash flow
growth and
top decile
TSR
(2)
+40 NPS on
every
measure
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
Brand
strength
+10pp
(1)
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
+70 eNPS
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
29
TO HELP
ALL OF NEW ZEALAND
WIN BIG
OUR PURPOSE
IN A DIGITAL WORLD
Āwhinatia ngā tangata katoa o Aotearoa Kia matomato te tipu I te ao matihiko.
(1)
Percentage points
(2)
Total Shareholder Returns

DEEP CUSTOMER
INSIGHTS
Tessa Tierney
Product Director

Next generation analytics capabilities that deliver an unrivalled ability to
understand and serve the needs of New Zealand consumers, households and
businesses.
31
W H AT
IS IT?DEEP
CUSTOMER INSIGHTS

(1)
Artificial Intelligence and Machine Learning
32
W H AT
IS IT?
CUSTOMER INSIGHTS
DEEP
Ability to understand and
anticipate the needs of
New Zealand consumers
and businesses in real-
time.
State of the art
customer experience
A future facing technology
roadmap to support
growth of data, AI/ML
(1)
capability and use cases.
Enabling technology
architecture
Analytics capability built into
the organisation allowing it
to respond
to rapidly changing business
needs
Waysof working and partner
ecosystem
InfrastructureToolsStorage
Data GovernanceAccessArtefacts
MarketingChannelsProducts
Organisational StructurePrivacy Enabled Operating Model
Capabilities and Skillsets3
rd
Party Collaborations

NEW
MEGATRENDS
ARE EMERGING
Democratisation of AI
(1)
and data
visualisation is the next frontier
Citizen AI/ML
(2)
platform & augmented BI
(3)
with actionable insights to rapidly scale across
business
Data platform will decide
the new leaders
Need for collaboration and open ecosystems – emergence of data standards (IoT
(4)
, open
data initiative), crowd-sourced innovation
Privacy regulations (e.g. GDPR
(5)
)
to inform data usage innovations
Balanced privacy approach will separate leaders & others; hyper-personalisation to
continue (opt-in incentives, social connect, one-on-one channels)
Emergence of decision intelligence
Business decision making and processes predicated upon extensive decision analytics; new
role embedded in business tribes
Leaders are realising a data dividendBusiness models based on data: subscription pricing, shareable usage, bundled non-core
services
Augmented data hubsSelf-tuning and automatic reconfiguration of data management (e.g. AWS & Azure)
allowing wider use cases, particularly on unstructured datasets
(1)
Artificial Intelligence
(2)
Artificial Intelligence and Machine Learning
(3)
Business Intelligence
(4)
Internet of Things
33
(5)
GDPR: TheGeneral Data Protection Regulation is a European Union Law regulatingdata protectionand privacy. GDPR regulation is more
strict than current regulation of data in New Zealand so is used as a relevant reference point for future data and privacy requirements.

WHERE
WE ARE
ON THE JOURNEY
Data analytics has started to deliver results at Spark
Spark customer households
accurately identified for
churn/propensity modelling
70%
(Pioneering use case among
Te l c o s )
(1)
Improved conversion rate
of Endless mobile
9X IMPROVEMENT
(Telco average: 3-5x in first
year after launch)
(1)
Reduction in churn
(prepaid)
13%
(Telco average: 5-8%)
(1)
Accuracy of precision
marketing models
70-75%
Improved customer
experience (NPS score)
by
5pp
(2)
(1)
Source Kearney
(2)
Percentage points
34

Marketing
Spark (Consumer)
Spark
Spark
Spark
Spark
Spark (Business)
Pioneering 5 −
Leading 4 −
Emerging 3 −
Foundational 2 −
Nascent 1 −
ChannelsProducts
Enabling
Technology
Ways of working/
Partner Ecosystem
BENCHMARKING
INDICATES
A SOLID FOUNDATION
35
Investment in tools and Agile ways of working create a solid foundation to build
on the successes we have seen in marketing to date
Spark
Telcos
Digital natives (Avg)

FOCUS
ON USE CASES:
CASE STUDY WIRELESS BROADBAND
Win in Wireless Broadband:
Data and Analytics to develop
new propositions, acquire new
customers and migrate from
copper/fibre
(1)
Machine Learning
(2)
Artificial Intelligence
Precision marketing
Algorithmshelp deploy hyper-personalised
adsand curated personal purchase
experience, executed through in-house
programmatic media desk
Migration engine
Offer customers a better
plan for them and for Spark
based on analytics and cost
of usage
Precision targeting
ML
(1)
powered targeting model
identifies high-propensity
customers, dramatically improving
retention outcomes
Lookalike modelling
ML
(1)
model to identify non-
Spark customers exhibiting
similar traits to existing high-
usage base
Product innovation
AI
(2)
engine to propose
tailored product
bundles and offers
TARGET
GROW
PROTECT
36

Ambition for FY23Where Spark is today
55% of customer base in household view
(1)
70% of customer base covered by propensity models
~90% of customer base in household view
(1)
~90% of customer base covered by propensity
models
Customer analytics
Back-end architecture on premise
Spark data siloed across platforms
Back-end architecture completely on the cloud
A single, scalable customer data repository
Data
architecture
Campaign
execution
Inconsistent Spark experience with limited ability to track
customers across channels
One single Spark experience across all channels that can
be tracked end-to-end
Channel execution
95% of marketing ‘mass’ based on segments
Manual campaign launches (~1-3 months)
40% of marketing personalised campaigns consistent across
channels
Automated campaign launches (days not months)
37
(1)
Household view is an insights platform that allows us to better anticipate the needs of New Zealand households to deliver more targeted, relevant and personalised services
OUR
2023
AMBITION

DELIVERING
CLEAR CUSTOMER,
OPERATIONAL ANDFINANCIAL BENEFITS
Financial Performance
~$30m-$40m revenue contribution opportunity
over the next three years
Cost efficiencies over the next three years
captured under simple intuitive customer
experience and smart automated networks
capabilities
Operational Performance
~2% reduction in rate of household churn
~30% improvement in marketing effectiveness
Ambition for FY23
(3)
(1)
Small and Medium sized enterprises
(2)
Artificial Intelligence
(3)
Refer to financial aspiration section for overall summary of FY23 financial performance ambitions
Opportunity
Themes
1
Win in Wireless
Broadband
2
Omnichannel
Deep Insights
3
SME
(1)
/Corporate:
Acquire, Protect,
Grow
5
Turbo charged
backbone
4
Next Horizon
Operations
Efficiency
BUSINESS OBJECTIVE
1
Target high potential existing and competitor
customers with tailored offers and incentives to
encourage migration
2
Delight customers with a personalised, joined-up
experience whether they engage via digital
channels, contact centres or in store
3
Develop unified 360 view of SME
(1)
/corporates to
boost conversions through sales funnel and grow
share of wallet through modular, tailored offerings
4
Launch data-analytics and AI
(2)
-enabled approach to
network planning, optimisation and service
operations, to achieve next-generation efficiency
and customer experience
5
Embed data-driven culture by democratising access
and deploying AI
(2)
in spend & supplier
management, finance and workforce planning
38

Risks
Opportunities
Ensuring safeguardsare
in place for appropriate
collection and use of data
Ability to developand findthe
right talent to deliver the
capability
Increase ROI on
marketing
investment
Reduce time to market for
offers and shorten
optimisation loops
Improve customer experiences
through increased relevance
Improved ability to lift
average customer
lifetime value
Strong focus on data collections
and use policies
Collaborationwith Qrious to
scale intern, recruitment and
development approach
MITIGATED
BY
MITIGATED
BY
39
BALANCING
AND RISKS
OPPORTUNITIES

Our 3 year goals
Lift digital
equity
+25k
Best cost
~31% EBITDAI
margin
Sustainable
free cash flow
growth and
top decile
TSR
(2)
+40 NPS on
every
measure
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
Brand
strength
+10pp
(1)
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
+70 eNPS
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
40
TO HELP
ALL OF NEW ZEALAND
WIN BIG
OUR PURPOSE
IN A DIGITAL WORLD
Āwhinatia ngā tangata katoa o Aotearoa Kia matomato te tipu I te ao matihiko.
(1)
Percentage points
(2)
Total Shareholder Returns

AUTOMATED
SMARTNETWORK
Mark Beder
Technology Director

5G rollout
nation-wide
Standalone
virtualised core
Highly resilient ‘super
data highway’
Unconstrained
capacity
Automated
network
management
PSTN
(1)
fully
decommissioned
42
W H AT
AUTOMATED NETWORK
IS IT?SMART
Delivering unconstrained capacity across high qualityand low latency networks
(1)
Public Switch Telephone Network

Leading the market in mobileand IoT
(1)
network
investmentto meet the needs of growing customer
demand for data
Significantprogress towards wireless future with22% of
broadband base on wireless broadband with uncapped
services lunched
(2)
Phasing out legacy systems. ~33% of Public Switch
Telephone Network (PSTN) exchanges now
decommissioned, closing around 80 switches per year
Networkconvergence and innovation delivered through
the rollout of optical and core networks which has
enabled ongoing growth of wireless broadband services
Spark 5G innovation including 5G lab and starter fund
providing the platform for New Zealand businesses to
incubate and co-create future 5G applications
Secured 60MHz of 3.5MHz spectrum to enable rollout of
mobile and wireless broadband5G services bridging the
gap untilfull spectrum band is available late 2022
WHERE
WE ARE
ON THE JOURNEY
(1)
Internet of Things
(2)
Uncapped wireless broadband services launched in metro areas
43

BELL LABS
GROWTH PREDICTION
DATA
7 ZB/Yr
197019901995200020052010201520202025
Google
Mosaic
BitTorrent
Napster
Ebay
Netflix
YouTube
Facebook
Amazon
Twitter
Apple
4K UltraHD
Instagram
Snapchat
AirBnB
Uber
Flipcart
Alibaba
Amazon
0.00
0.05
0.10
0.15
0.20
199019911992199319941995
PB/Mo
0
20
40
60
80
100
199519961997199819992000
PB/Mo
3rd Sharing and
2nd Commerce Era
(Everything)
Pre-Internet Era
1st Discovery Era
(Browsers)
2nd Discovery Era
(Search)
1st Sharing Era
(Personal Content)
80
580
1,080
1,580
2,080
2,580
200020012002200320042005
PB/Mo
1st Commerce Era
(Video & eGoods)
2,400
7,400
12,400
17,400
22,400
200520062007200820092010
PB/Mo
2nd Sharing Era
(Personal Context)
20,000
40,000
60,000
80,000
201020112012201320142015
PB/Mo
8K Video +
Cloud Hosting
User-Generated Content
15 ZB/Yr
Connected Everything +
Contextual
Automated Experiences
4
th
Industrial Revolution
1st Networked
Intelligence and
Automation Era
1.5 ZB/Yr (2017)
Spark’s data growth has followed the same curve
44

Bringing 5G to New Zealand by investing in immediate
use cases that create the most value
Wireless
Broadband
Introducing
unconstrained
capacity and
enhanced speed to
support customer’s
growing demand
for more data
Massive
IoT
(1)
Innovative IoT
(1)
solutions
providing
customers with
real-time data
and benefits of
digital
monitoring
5G Partner
of Choice
Co-creating smart
solutions and
network
customisation to
meet customer
needs on speed,
latency and
number of devices
Latency and Reliability
Cloud
Gaming
Industrial
automation
Autonomous
Vehicles
Massive IoT
In-vehicle
connectivity
Drones and
connected robots
Connected
Platform
Connected WearablesmIoT
sensors
Speed and Capacity
Immersive
experience
4K/8K VideoSmart Stadium/
Universities
Smart City/home
Edge Computing
Network Slicing
Security/video
Solutions
Tele-healthSupply chain
efficiencies
Real-time data/video analytics
Vertical / Private Networks
5G provides opportunity beyond ‘connectivity’ and will enable
the delivery of smart solutions for enterprise and industry
45
5G
GAME CHANGING
WILL BE
(1)
Internet of Things

URLLC
(2)
eMBB
(1)
Throughput
Latency
5G
phase1
5G
phase2
4.9G
4.5G
Virtual Reality
Throughput
Upload: Ultra-high
Download: High
Latency
10-100 ms
(3)
Massive number of devices
(IoT
(4)
)
Throughput
Low
Latency
10-100 ms
(3)
Fixed wireless access (FWA)
Throughput
Ultra-high
Latency
15-200 ms
(3)
Mobile Tele-Operation (Vehicle
and drone)
Throughput
Varies
Latency
50-100 ms
(3)
Industry robotics and automation
Throughput
Varies
Latency
<10-100 ms
(3)
WIRELESS
WHAT DOES 5G BRING?
PERSPECTIVE
Most use cases can be delivered with 4G, but not to the same quality as 5G
Evolution of throughput, reliability and latency network capabilities
(1)
Enhanced mobile broadband
(2)
Ultra-reliable low latency communications
(3)
Milliseconds
(4)
Internet of Things
46
Source: Bell Labs

Ambition for FY23
Where Spark is today
Planning and deploying 5G - towers, core and edge architecture
5G live in5-7 locations by 30 June 2021
5G rolled out nation-wide and cloud native 5G core operating
standalone
5G RAN
(1)
roll-out and
edge compute
Reliant on third party services for network backhaul
Modern core network infrastructure yet still requires some
manual configuration and provision
Owning more of our backhaul ‘assets’
Automated‘Super data highway’ for all traffic with high resiliency,
that can be reconfigured remotely
Resilience
Unconstrained
capacity
~33% of PSTN
(2)
decommissioned
~74% of broadband base on newer and more reliable fibre and
wireless inputs
PSTN
(2)
decommissioned
~90% of broadband base migrated off copper
Legacy
decommissioning
Capacity planning focussed on meeting the “9pm”
Peak. Supporting ~22% broadband users on wireless broadband
already
Unconstrained capacity enabling uncapped wireless
broadband
A largely physical network with many points of manual
intervention
Ability to seamlessly provision capacity
A virtualised network that uses algorithms to self-heal
Automation
Network and IT managed as separate functionsA fully congruent skill-set across mobile, fixed, and IT
Talent
(1)
Radio Access Network
(2)
Public Switch Telephone Network
47
OUR
2023
AMBITION

Investment
Revenue
Efficiencies
Financial Performance
Revenue growth captured under deep customer
insights capability and key market strategic pillars
~$55m-$65mcost efficiencies over the next three
years
Operational Performance
~30-40% of broadband base connected via wireless
broadbandservices
~200% increase in network capacity over three years
Ambition for FY23
(2)
•Highly resilient wireless and fibre data networks providing
acquisition and retention benefits
•Rollout of 5G generating new revenue opportunities over the
long-term
•Unconstrained capacity through uncapped plans supporting
customer demand for data and reducing churn
•Ongoing investment in wireless and fibre networks providing
network advantage including 5G innovation and focus on
unconstrained capacity
•Investment in future ready talent force certified in modern
technologies
•Lower access input costs as wireless broadband base grows
•Investment in resilience and network automation driving
network support and maintenance efficiencies
•Rollout of 5G lowering cost per GB
•PSTN
(1)
decommissioning delivering property, network support
and maintenance and environmental efficiencies
(1)
Public Switch Telephone Network
(2)
Refer to financial aspiration section for overall summary of FY23 financial performance ambitions
48
DELIVERING
OPERATIONAL AND
CLEAR CUSTOMER,
FINANCIAL BENEFITS

Risks
Opportunities
Higher churn and faster
revenue decline as
customers migrate to new
network or alternative
services
Phased decommissioning
programmeto allow for
customer communication
managing commercial product
changes and provisioning of
capacity
Rolling out 5G ahead of clear use
cases and monetisation
opportunities
MITIGATED
BY
MITIGATED
BY
Accelerate PSTN
(1)
decommissioning to remove complexity of legacy
systems and realise operational benefits faster
Open to collaborating with industry players to share infrastructure
where it makes commercial sense and delivers better customer
outcomes, improves network economics and results in societal
benefits
Accelerate 5G rollout to increase capacity at lower cost per GB to
support further wireless broadband migration and new 5G products
and services
Phased rollout in line with economic
benefitsand optionality of a multi-
vendor structure to utilise
technology aligned to customer
demand for 5G products and
services
49
BALANCING
AND RISKS
OPPORTUNITIES
(1)
Public Switch Telephone Network

Our 3 year goals
Lift digital
equity
+25k
Best cost
~31% EBITDAI
margin
Sustainable
free cash flow
growth and
top decile
TSR
(2)
+40 NPS on
every
measure
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
Brand
strength
+10pp
(1)
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
+70 eNPS
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
50
TO HELP
ALL OF NEW ZEALAND
WIN BIG
OUR PURPOSE
IN A DIGITAL WORLD
Āwhinatia ngā tangata katoa o Aotearoa Kia matomato te tipu I te ao matihiko.
(1)
Percentage points
(2)
Total Shareholder Returns

ESTABLISHED AND FUTURE
MARKETS
Grant McBeath
Customer Director

Simple, intuitive customer experience
Deep customer insights
Automated, smart network
Growth mindsets
Established
markets
Wireless
Cloud
Future
markets
IoT
(1)
Digital
Health
Sport
Broadband
(1)
Internet of Things
52
THESE FOUR
IN OUR ESTABLISHED MARKETS
CAPABILITIES
AND FUTURE MARKETS
WILL REINFORCE GROWTH

WirelessCloud
Always on connectivity anytime, anywhere
Underpinned by best in class cyber security
Emphasis on wireless over fixed driven by
ownership economics
Strong customer preference for digital delivery
and self-service and fast hassle free set-up
Flexible ‘as a service’ solutions that utilise shared
infrastructure
‘Hybrid cloud’ capabilities delivering best of private
and public to meet customer needs
Digital business transformation services
~75% of our customer relationships are
currently on wireless technology
Broadband
Exponential growth in data demand
Increasing pace of new entrants joining the
market
Consumers benefitting from
'more for less'
Success predicated on service experience, value
adding partnerships and increasing
personalisation of key lifecycle moments
53
ESTABLISHED
WHAT ARE THEY
MARKETS

Market leader
in pay monthly
mobile
(1)
Market leader in
fixed and
wireless
broadband
(1)
Market leader
for onshore
cloud services
(1)
Promising
early results
from use of
data and
analytics
driving growth
in key markets
5G rollout
underway
(1)
Market share estimates sourced from IDC
(2)
Small and Medium sized enterprises
(3)
Business-to-Business
Clear channel
advantage in
retail, SME
(2)
and B2B
(3)
54
WHERE
WE ARE
ON THE JOURNEY

Scale adoption of mobile apps and streaming services
Network densification and 4.5G expansion and rollout of 5GDemand for connectivity anytime, anywhere
Investments in 5G rollout, edge computing and network
slicing capability
Demand for more data, at higher speeds with lower latency
Spark App – the remotecontrolto your life, enabled through
simple intuitive customer journeys
Strong preference for digital self-service and fast hassle free set-up
Endless mobile and uncapped wireless broadband services
To deliver amazing customer experiences wherever our customers are with great speeds, awesome
content and underpinned by our 5G rollout
Wireless
55
Partnerships - Spotify, Netflix, Xbox, Xero, Spark SportDemand for value beyond connectivity
OUR
2023
AMBITION
Market insightsHow we will deliver

Market insights
Competitive acquisition offersand increased bundling
reducing profitability and resulting in long payback periods
Differentiation through best in class value added services, connected
home ecosystem and superior in-home customer experiences
Highly competitive reseller market with 80+ internet service
providers (low barriers to entry)
Multi-brand approach combined with data and analytics to
increase relevance in all market segments
Highly mature market with high household penetration and UFB
rollout ~91% complete
Uncapped wireless broadband and investments in 5G createa
competitive offer to fibre for many of our customers
Wireless can meet the needs of an increasingly broader
customer base
Use wireless broadband to compete in more market segments to
expand product margin and profitability
Sustain our market leading
(1)
position whilst growing profitability
Broadband
How we will deliver
56
(1)
Market share estimates sourced from IDC
OUR
2023
AMBITION

COVID-19 increasing demand for cloud
migration, security and remote working
Strong and growing demand for (hyperscale)
public cloud services
Continued local IaaS
(1)
growth, particularly in the
context of hybrid and multi-cloud, albeit slowing
Sustained demand for outsourced IT service management
Providing end-to-end hybrid-cloud solutions and cloud
transformation support via our unique Leaven proposition
Partnerships with hyperscalers to deliver full
suite of public cloud services
Supporting remote working and business
continuity through digital workplace solutions
and securing customer environments
Continued investment in people, process and
technology to deliver an exceptional end-to-end
managed service offering
(1)
Infrastructure as a Service
57
Spark is well positioned to accelerate digital transformation
Cloud, Security and Service Management
OUR
2023
AMBITION
Market insightsHow we will deliver

•Service and experience are
important
•Involves hardware or infrastructure
•Spark hasin-person or personal
touchpoints
•Enables a simple and intuitive
digital customer experience
•Next generation customer
insights and analytics can be
leveraged
•An automated ‘smart network’
for the future with lowest
cost/GB
•Leverages growth mindsets and
Agile at scale operating model
•Has established and/or growing
revenue pools
•Material expected growth
•Way of doing business will likely
change
•Market players/share will likely
change
•Short disruption timeframe
•ROIC
•Improves our network
•Improves our data or customer
insights
•Improves our range of
offers/products
•Reduces our costs
Leverages our
local advantage
Reinforces
the core
Builds from our
enhanced core
capabilities
Delivers a
material prize
58
FOUR
IDENTIFICATION
KEY CRITERIA
OF FUTURE MARKETS
HAVE INFORMED OUR

Digital
health
IoTSport
Est. revenue pool
for
New Zealand
Why Spark?
•Large space (>$20B) growing fast
(~5% YoY)
•Sector is ripe for digital disruption
•Spark has relationships and insights,via
Spark Health
•Experiencein working with Government
and the public sector
•Sizable value pool (~$3.5B by 2024)
•New technology will bring significant disruption
in established growing profit pools
•Spark has a strong presencein B2B
(1)
•Further enabled by 5G
•Spark’snetwork, products and field services
support growth inhigh value IoT management
and support
•Supports our strategyto offer best in class paid
VAS
(2)
in the home
•Leveragesexisting strong customer base
•Technology has disrupted the market and Spark
introduced sports streaming to New Zealand
•Sports customers are looking for innovative
viewing solutions
•Spark has exclusive andattractive content for both
Spark and non-Spark customers
~$1bn~$1bn~$0.5bn
The ‘Internet of Things’ (IoT) will
play a critical role improving
productivity in New Zealand
Spark Health will support the digital
transformation of the New Zealand
healthcare sector
Spark Sport helps us ‘own
entertainment in the home’ and
differentiates Spark products
(1)
Business-to-Business
(2)
Value added services
59
WHY
WE PRIORITISED THESE
FUTURE MARKETS

Ambition for FY23Where Spark is today
Focussedon increasing salesofcurrent offering to thehealth
vertical (e.g.hospitals, GPs, agedcare, etc.)
Preparingto launchDigitalHealthPlatformto betterconnect
New Zealand healthproviders
Creatingawareness of Spark’s IoT
(1)
offerings. Already in
market with asset tracking and smart metering solutions
Growingpipeline of strategic industry playsthrough proof
of concepts, supported by industry expertise
Become the New ZealandIoT
(1)
platform
partner of choice
Grow end-to-end offering beyond IoT
(1)
by leveraging
strengthof existing assets
IoT
(1)
Digital
Health
An open, modern cloud based Digital Health Platform offering
a full range of Telco and IT services to the New Zealand health
ecosystem
Value added services e.g. electronic medical records, health
analytics
LaunchedSpark Sport platform and established brand
andoffering
Acquiredkey content rights
SuccessfullydeliveredRugby World Cup 2019
Preparingto launch New ZealandCricket
New Zealand’s premier sports streaming business that meets
the evolving needs of New Zealand sports viewers
Partneringfor success to delivery wider reach, capability and
content
Growingbusiness with targeted content investments focussed
on customer demand and delivery of commercial returns
Sport
(1)
Internet of Things
60
OUR
2023
AMBITION

Investment
Revenue
Efficiencies
Financial Performance
~$140m-$160m revenue growth opportunity from established
markets over the next three years
~$80m-$90m revenue growth opportunity from future
markets over the next three years
Innovating for growth in new business while delivering cost
efficiencies in the core over the next three years captured
under simple intuitive customer experience and smart
automated networks capabilities
Operational Performance
~30-40% of broadband base connected via wireless
broadband services
~1m IoT
(1)
connected devices
Ambition for FY23
(2)
•Acquisition and retention benefits driven by further growth in
adoption of wireless technologies and ongoing digital services
and cloud transformation
•Entry into future markets IoT
(1)
, health and sport providing new
revenue opportunities
•Ongoing network investment supporting growth in wireless and
IoT
(1)
•Cloud growth supported by investment in digital transformation
support costs
•Platform development costs associated with enhancing Spark Sport
offering and entry into health market
•Targeted investments in sports content that will deliver value
•Ongoing transition to a wireless future and digital business
transformation delivering customer care efficiencies
•Tight focus on product costs improving product profitability
•Cost efficiencies provide optionality to reinvest in
new future markets
(1)
Internet of Things
(2)
Refer to financial aspiration section for overall summary of FY23 financial performance ambitions
61
DELIVERING
OPERATIONAL AND
CLEAR CUSTOMER,
FINANCIAL BENEFITS

Risks
Opportunities
Ability to scale and monetise
significant investment in 5G
spectrum and infrastructure
Competitivemarket place
with pressure
onprofitability
Investingin line with demandand
use cases that can be scaled and
commercialised
Investingin wireless capacity and vertical
integrationof digital experience layers that
simplify and automate customer
experiences
Organic growth pipeline and
demand attracting global
hyperscalers to New Zealand
market
Growing need for super simple in -home
experiences with intuitive, digital automations
'out of the box' across a growing range of
connected hardware
Growing data consumptionand computing power increasing
demand for cloud solutions
Enabling data,AI and ML
(1)
to drive enhanced customer
experiences andoperational effectiveness
Rollout of 5Gsupporting significant increase in
capacity tomeet customer demand for more data
and unconstrained capacity
Strategic partnerships with hyperscalers
and ongoing focus on complete cloud
custodianship and hybrid approach
(1)
Artificial intelligence and Machine Learning
62
BALANCING
AND RISKS
OPPORTUNITIES
ESTABLISHED MARKETS
Wireless
Cloud
Broadband
MITIGATED
BY
MITIGATED
BY
MITIGATED
BY

Inabilityto get leverageacross use
cases resulting in having to build
bespoke solutions
Arrival of large scale international
players
Heavily fractured health
market
Slow moving partners and
key stakeholders
Proof of concepts with select
partners and regular market
scanning and forward focussed
partnering
Clear focus on connecting with key
stakeholders and cross sellof current
IT solutions
Specialist team with deep
understandingof sector and
relationships
Limitedadditional sports content
for next 18-24 months
Increasingcontent acquisition
costs
Significant government investment to accelerate digitisation
of health
Increasing trust of tele-health services by medical
professionals and consumers post COVID-19
Increasing momentumin customers adopting online
viewingover traditional viewing solutions of a wide
range of entertainment offerings
Explosion of connected devices
Rapid market growth forecasted across the IoT
(1)
value chain beyond just connectivity
Leveragingexisting content and
value of Spark group andtargeted
strategic partnerships
(1)
Internet of Things
63
BALANCING
AND RISKS
OPPORTUNITIES
FUTURE MARKETS
Opportunities
MITIGATED
BY
IoT
(1)
Digital
Health
Sport
MITIGATED
BY
MITIGATED
BY
Risks

Our 3 year goals
Lift digital
equity
+25k
Best cost
~31% EBITDAI
margin
Sustainable
free cash flow
growth and
top decile
TSR
(2)
+40 NPS on
every
measure
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
Brand
strength
+10pp
(1)
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
+70 eNPS
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
64
TO HELP
ALL OF NEW ZEALAND
WIN BIG
OUR PURPOSE
IN A DIGITAL WORLD
Āwhinatia ngā tangata katoa o Aotearoa Kia matomato te tipu I te ao matihiko.
(1)
Percentage points
(2)
Total Shareholder Returns

Stefan Knight
Finance Director
FINANCIAL
ASPIRATION

Primarily
Wireless
~80% of relationships
on wireless
technology
.
5G and IoT
(1)
deployed
nationwide
Unconstrained
mobile capacity
5G
Everywhere
Skills rebalanced
Top decile culture, defined
by inclusivity and growth
Best-in-class adaptive
leadership
Future
Workforce
Bringing the best of
private and public cloud
together with our
service expertise
Leading Cloud
Custodian
Digital channels are the
predominant choice
Experience consistently
replicated across all
channels
Digitally
Native
66
Delivery of these aspirations will result in highly engaged customers and people, growth and top decile returns
WHERE
WE ASPIRE
BY 2023
TO BE
(1)
Internet of Things

•Primarily wireless
•Ongoing cost reduction programmes
•Improved effectiveness of labour
•Create a sustainable Spark
•Economic recovery and transformation
•Champion digital equity
•Proactive risk management policies
•Diverse Board composition and skills
•Capex maintained at 10%-11% of revenues
•Improved cash conversion
•Investment focussed on future revenue streams and
building capabilities
•Ambition to pay growing and sustainable dividends, funded
through sustainable free cash flow
•Grow established markets mobile, broadband and cloud
•Enter future markets – digital health, sport, IoT
(1)
•Simple intuitive customer experience
•Deep customer insights
•Automated smart network
•Growth mindsets
FOCUS AREAS
SPARK’S MODEL FOR
LONG-TERM VALUE
Long
-term value
Evidenced by Total Shareholder Returns
Consistent
earnings
growth
Sustainable
business
performance
Sustainable
dividend
profile
REVENUE GROWTH
MARGIN EXPANSION
ENVIRONMENTAL AND
SOCIAL SUSTAINABILITY
TIGHT CAPITAL EXPENDITURE
MANAGEMENT DRIVING
FREE CASH FLOW GROWTH
PRUDENT CAPITAL
STRUCTURE
COMPETITIVE ADVANTAGE
STRONG GOVERNANCE
(1)
Internet of Things
67
OUR
PLAN TO DELIVER
LONG-TERM VALUE

Financial
Current
Initiatives
Strategic
Choices
Mobile market growthLikely to be slower, particularly roaming and handset sales
Cloud growthIaaS and SaaS
(1)
likely to benefit, but potentially some offset in other IT outsourcing
programmes
New opportunities emerging due to demand for remote working solutions
Grow wireless broadbandRemoval of overage charges during lockdown creates greater confidence to increase caps,
and drive uptake of unconstrained capacity
Prepare for 5GIncreasingly important to support New Zealand's return to growth and innovation
Build world class capabilitiesIncreasingly important simple digital experiences need to be accelerated
Accelerate future marketsNew opportunities will exist, those already identified (e.g. health) even more relevant
Current
assumptions/initiatives
What’s changed?
COVID
-19 BUSINESS IMPACTS
Negative EBITDAI impact for COVID-19 expected to be ~$75m in FY21
(1)
Infrastructure as a Service and Software as a Service
68
COVID-19
NEW BUSINESS IMPACTS
HAS RESULTED IN

FY20
(1)
$m
FY17-FY20
CAGR
FY21 to FY23 Aspiration
Mobile Service Revenue$8483.2%
Moderated growth in FY21, lifting thereafter, as COVID-19 situation improves
•COVID-19 will impact roaming and handset sales in FY21
•Demand for data continues, supported by wireless network investment, driving ARPU
(2)
growth
•Connection growth in pay-monthly and SME
(3)
Mobile Non-service revenue$4403.7%
Total Mobile$12883.3%
Cloud, Security and Service
Management
$44311.9%
Moderated growth in FY21, lifting thereafter, as COVID-19 situation improves
•IaaS and SaaS
(4)
will continue to grow, but potentially some short term offset in other IT outsourcing programmes
due to COVID-19
•Organic growth opportunities with strong pipeline for cloud and security services
•Partially offset by price erosion as market matures
Broadband$6800.3%
Broadly flat, with focus on holding connection share
•Lower growth in overall market
•Competitive market place with 80+ players, low barriers to entry
•Increasing data caps on wireless broadband to increase the addressable market
Fixed Voice$391(13.4%)
Consistent decline
•Ongoing declines in legacy voice
•Ongoing fixed to mobile substitution
•A much smaller part of our business by FY23 i.e. likely to be less than 7% of total revenues, compared to 11% in
FY20
Other Revenues
(5)
$13010.6%
Higher growth
•New revenues from future markets such as IoT
(6)
and Digital Health
•Growing subscriber base in Sport
(1)
FY20 Total revenue was $3,623m which also includes Managed Data, Network and Services
($248m), Procurement and partners ($408m), and Other gains ($35m)
(2)
Average Revenue Per User
69
MODEST
IN ESTABLISHED MARKETS
REVENUE GROWTH THROUGH
AND ENTRY INTO FUTURE MARKETS
STRONG EXECUTION
(3)
Small and Medium sized enterprises
(4)
Infrastructure as a Service and Software as a Service
(5)
Other Revenues include Spark Sport, Qrious, IoT (Internet of Things)
(6)
Internet of Things

FY17FY23
WITH MOBILE AND CLOUD EXPECTED TO DELIVER ~50% OF REVENUES AS VOICE
BECOMES A MUCH SMALLER PART OF THE BUSINESS
~$75m impact on gross margin from
fixed voice decline
Impact on gross margin from fixed voice expected to
be substantially lower as revenues and costs reduce as
customers shift away from copper and PSTN
(1)
Sport
Via growth in subscriber base
IoT
(2)
Via growth in connected devices to
grow to ~1m
DigitalHealth
Via new revenue opportunities
supported by the introduction of Digital
Health Platform
Modest revenue growth comes from
Established Markets
Mobile
Cloud, security
& service
management
Other IT Services
Other
Broadband
Voice
Wireless
Cloud
And entry into Future Markets
Via 5G and unconstrained capacity
Via hybrid cloud solutions and digital
transformation
(1)
Public Switch Telephone Network
(2)
Internet of Things
70
REVENUE
TO REBALANCE
WILL CONTINUE

FY20
(1)
$m
FY17-FY20
CAGR
FY21 to FY23 Aspiration
Total mobile$459(0.3%)
Broadly flat
•Lower service revenue growth and slower handset renewals
Cloud, security and service
management
$9027.9%
(2)
Moderation
•In line with revenue growth and reduced near term IT project activity
Broadband$339(3.3%)
Continued declines
•Growth in wireless broadband; partially offset by
•Ongoing competitive intensity in market
•Migration to more expensive fibre inputs, and local fibre company price increases
Fixed Voice$146(9.7%)
Similar declines
•Connection loss and substitution to alternative wireless and fibre alternatives
Labour$511(2.4%)
Declining
•Ongoing simplification, automation and digitisation
•Agile maturity supporting further productivity and efficiency gains which offset inflationary pressures and
pay rises
Opex$4021.4%
Targeted declines
•Continue to target cost efficiencies to offset inflationary pressures and cost in
•Some cost reductions being consciously reinvested in support of revenue growth
COST OF SALES
(1)
FY20 Total costs were $2,510m which also includes Procurement & Partners ($362m), Managed data, network and services ($119m),Other product costs ($82m)
(2)
Increase reflects changing mix of revenue with increases in public cloud which incur higher cost of sales but lower labour tosupport
71
FOCUS
DRIVING MARGIN EXPANSION
ON EFFICIENCYAND WIRELESS

Transition towards digital service provider and operational discipline creates ongoing opportunities for
~$95m-$115m cost-out in excess of business as usual cost reduction programmes
Product costs
Channel costs
Other
operating costs
How we will deliver
Growth in wireless broadband reducing input costs
Supply chain efficiencies through vendor re-negotiation
Ongoing shift from physical to digital channels reducing cost to serve
Data driven insights enhancing campaign and channel execution and reducing acquisition costs
IT system consolidation lowering customer care and IT support costs
Legacy decommissioning delivering property, support, maintenance and environmental efficiencies
Investment in resilience and network automation creating support and maintenance efficiencies
72
SIGNIFICANT
OPPORTUNITIES REMAIN
COST REDUCTION

FY23 Aspiration
Revenue
(1)
FY23 Aspiration
Cost efficiencies
(1)
Delivered by
Simple intuitive
customer experience
~$40m-$50m
•Reduction in customer care interactions due to enhanced digital self-service;
•Lower product costs as a result of simplified product and service portfolio; and
•Lower IT system and maintenance costs with the removal of legacy products and services
Deep customer
insights
~$30m-$40m
•Precision marketing leading to optimisation ofmarketing spend through:
-Campaigns that areautomated, personalised, fast to market; and
-Lower above the line spend
Smart automated
network
~$55m-$65m
•Increased wireless broadband uptake lowering input costs
•Productivity and efficiency gains through network automation and virtualisation
•Lower power consumption, property rationalisation and reduced lease expenses as a result of PSTN
(2)
shutdown
Grow established
markets
(3)
~$140m-$160m
•Growth in wireless driven by ‘Endless’ mobile and unlimited wireless broadband services
•Growth in cloud adoption through Leaven digital transformation business and partnerships with public
cloud providers
Accelerate future
markets
~$80m-$90m
•Growth in IoT
(4)
driven by explosion of connected devices to grow to~1m
•Growth in Digital Heath driven by new revenue opportunities supported by the introduction of Digital
Health Platform
•Growth in Sport driven by increasing subscriber base
Revenue aspirations and cost efficiencies reflect the gross benefits of executing the 3-year strategy.
However, total revenues will be impacted by market pressures, revenue declines in legacy products and cost-in to support growth,also some cost efficiencies may be re-invested. Therefore not all of the value
created will be captured by shareholders
(1)
Aspiration represents FY23 in year revenues and cost efficiencies
(2)
Public Switch Telephone Network
73
EXECUTING
REVENUE GROWTH AND
THE 3-YEAR PLAN WILL DELIVER
OPPORTUNITIES TO REDUCE COSTS
(3)
Excludes Procurement & partners
(4)
Internet of Things

•Annual capital envelope of ~10%-11% of revenues and ongoing shift
towards wireless
•Capital expenditure envelope focussed on supporting New Zealand’s
economic recovery, including phased rollout of 5G and investment in
rural connectivity
•Long-term investments in mobile spectrum in FY21 $50m and FY23
to secure long-term rights to critical 5G C-band spectrum
•Additional equity investment in SX Next may be required in FY22 and
FY23. Investment level subject to capacity pre-sales
413
417
374
350
50
FY18FY19FY20FY21*
CAPEXSpectrum
*FY21 Guidance ~$350m capital expenditure
(excludes $50m for 1800MHz and 2100MHz spectrum renewals)
74
INVESTING
TO ENABLE NEW ZEALAND’S
IN CRITICAL INFRASTUCTURE
CONNECTIVITY TO THE WORLD

Consistent EBITDAI GrowthSustained capital envelope
Disciplined approach to working capital
management
•FY21 earnings and free cash flow forecast to support payment
of FY21 dividend
•Future EBITDAI growth driven by:
-Modest revenue growth from established markets and entry
into new future markets; and
-Margin expansion from ongoing focus on efficiencies
•Envelope will be maintained at between 10%-11% of revenues in the
medium term
(1)
•Sufficient capacity to execute on strategy including:
-Investment weighted towards wireless to deliver unconstrained
capacity
-phased rollout of 5G focussing on organic growth and deployment
into specific markets where demand or use cases are most
evident
•Renewedfocus on working capital principles and policies
•Current leverage provides sufficient funding for capital
investment, business as usual operations and ability to
withstand normal business risks
1
2
(1)
Excluding any spectrum purchases or renewals
(2)
Adoption of IFRS16 resulted in an increase in S&P’s net debt/EBITDA ratio to 1.7x from 1.5x
•Dividend Reinvestment Plan(DRP) to be used to support
headroom
•Headroom expected to be tight in FY21 and then improving
from FY22
•S&P reaffirmed Spark’s A-credit rating in May 2020
(2)
Net Debt
4
3
75
DISCIPLINED
STABILISE NET DEBT
FOCUS ON FREE CASH FLOW WILL
FOLLOWING SPECTRUM PAYMENTS

EBITDAI Growth
Prioritised capital
expenditure
Ongoing improvement in
working capital
Consistent EBITDAI growthCapital expenditure of 10%-11% of
revenues
Targeting cash conversion of 98%
~$500m FREE CASH FLOW ASPIRATION BY FY23DRIVEN BY
Focus on long-term growth, growing and sustainable shareholder returns over time
that are funded by sustainable free cash flow
76
FOCUS
TO FUND DIVIDENDS
ON GROWING FREE CASH FLOW
12
3

Spark aspires to grow free cash
flow to ~$500m by FY23 to enable
a growing and sustainable total
dividend over time
Dividend pay-out will also consider
net debt, available headroom, and
economic environment
Focus on long term aspiration to
pay growing and sustainable
dividends consistent with long-
term growth
Aspiration
Remain committed to prudent
capital structure consistent with
an A- credit rating
Annual dividend declarations
remain a Board decision and will
continue to be communicated via
formal guidance annually
Dividend guidance subject to no
adverse change in operating
outlook
Principles
77
CAPITAL
SHAREHOLDER RETURNS
STRUCTURE AND
Dividend Profile (cps)
22
22
25
25
3
3
FY18
FY19
FY20
FY21 Guidance
OrdinarySpecial
23-25
(1)
(1)
FY21 dividend guidance 23-25cps (100% imputed). Subject to no adverse change in operating outlook

Revenue
Lowest Cost
Capex
0-2% CAGR
Revenue growth from established markets of mobile, broadband and cloud, and entry
into future markets of IoT
(1)
, Digital Health and Spark Sport
EBITDAI Margin
~31%
Ongoing focus on cost-out and productivity gains, selectively re-invested in support of
revenue. Subject to value capture
10%-11% of revenues
(2)
(1)
Internet of Things
(2)
Includes purchase of property, plant and equipment, intangible assets and capacity (including Southern Cross) but excludes spectrum purchases and leased customer equipment assets
Prioritised capital envelope of 10%-11% provides sufficient capacity to execute
strategy
Free Cash
Flow
Sustainable free cash flow
growth
Sustainable free cash flow of ~$500m by FY23to fund dividend growth
Dividends
To deliver growing and sustainable shareholder returns over time that are funded by
sustainable free cash flow
Focus on long-term growth
and top decile shareholder
returns
78
3-YEAR
ASPIRATIONS
FINANCIAL

Our 3 year goals
Lift digital
equity
+25k
Best cost
~31% EBITDAI
margin
Sustainable
free cash flow
growth and
top decile
TSR
(2)
+40 NPS on
every
measure
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
Brand
strength
+10pp
(1)
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
+70 eNPS
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
79
TO HELP
ALL OF NEW ZEALAND
WIN BIG
OUR PURPOSE
IN A DIGITAL WORLD
Āwhinatia ngā tangata katoa o Aotearoa Kia matomato te tipu I te ao matihiko.
(1)
Percentage points
(2)
Total Shareholder Returns

Jolie Hodson
Chief Executive Officer
MINDSETS
GROWTH

A fixed mindset avoids
challenge, gives up easily, sees
effort as fruitless, ignores
feedback and is threatened by
others
A growth mindset embraces
challenges, persists against
obstacles, learns from
feedback, sees effort as
necessary and is inspired by
the success of others
81
W H AT
GROWTHMINDSET
IS A

2017-182013-142019-20
Ways of working
Culture
eNPS
Slow, defensiveCustomer inspired, fast, winningConstructive, Inclusive, Agile
Stand-alone business unitsFlipped to Agile –‘2 out of 5’90% Squads – ‘3 out of 5’
N/a
(1)
+24+66
(1)
eNPS customer engagement measure introduced in 2016
82
OUR
JOURNEY
AND CONTINUE TO GROW
HONOUR THE PAST

Ambition for FY23
Where Spark is today
Blue Heart programme established
Achieved 50% representation of females at Board and Leadership
Squad
Published our median pay parity gap (28%)
63 different ethnicities represented within Spark –20% of people
Blue Heart –next level inclusion
Achieved 40:40:20 representation across Spark
(1)
Reduce pay parity gap (10 percentage point improvement)
+50% share ethnicity data and inclusion goals created with our
people
Our culture is defined by
its engagement, diversity
and inclusion
Focus primarily on squads –90% “3 out of 5”
Flexible working and Agile enabled us to adapt to COVID-19 at
pace
Top decile Spark-wide Agility
We have embraced new ways of working, learning and
connecting, increasing engagement and development
Future ways of working
and Agile maturity
Learning and progression
experiences that drive
growth
Leadership Gold Standards in place
Built and delivered 2 key Agile Leadership Programmes to 350+
people
Majority of development programmes delivered in person
We have developed the capabilities critical to our success
Right skills to support strategy in data
High quality virtual collaboration and facilitation
A world class people experience fuelled by clear purpose and a
Spark-wide growth mindset
(1)
Spark has committed to the Champions for Change 40:40:20 ratio at all levels of employment (i.e. at each level of seniority, 40% of both women and men, with the remaining 20% being of any gender)
83
OUR
2023
AMBITION

Our 3 year goals
Lift digital
equity
+25k
Best cost
~31% EBITDAI
margin
Sustainable
free cash flow
growth and
top decile
TSR
(2)
+40 NPS on
every
measure
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
Brand
strength
+10pp
(1)
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
+70 eNPS
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
84
TO HELP
ALL OF NEW ZEALAND
WIN BIG
OUR PURPOSE
IN A DIGITAL WORLD
Āwhinatia ngā tangata katoa o Aotearoa Kia matomato te tipu I te ao matihiko.
(1)
Percentage points
(2)
Total Shareholder Returns

2023 STRATEGY
SPARK
Jolie Hodson
Chief Executive Officer

Primarily
Wireless
~80% of relationships
on wireless
technology
.
5G and IoT
(1)
deployed
nationwide
Unconstrained
mobile capacity
5G
Everywhere
Skills rebalanced
Top decile culture, defined
by inclusivity and growth
Best-in-class adaptive
leadership
Future
Workforce
Bringing the best of
private and public cloud
together with our
service expertise
Leading Cloud
Custodian
Digital channels are the
predominant choice
Experience consistently
replicated across all
channels
Digitally
Native
86
Delivery of these aspirations will result in highly engaged customers and people, growth and top decile returns
WHERE
WE ASPIRE
BY 2023
TO BE
(1)
Internet of Things

Our 3 Year Goals
•Brand Strength +10pp
•+40 Customer
Engagement (NPS)
•+70 Employee
Engagement (eNPS)
•Sustainable Free Cash
Flow Growth andTop
Decile TSR
•Best Cost ~31% EBITDAI
margin
•Lift Digital Equity +25k
Our Strategic Pillars
•World Class Capabilities
and Culture
•Grow Established Markets
•Accelerate Future Markets
•A Positive Digital Future
for all of New Zealand
Our Values
•Whakamana, We Empower
•Matomato,
We Succeed Together
•Tūhono, We Connect
•Māia, We are Bold

8 years of consistent
delivery, execution and
cost discipline
Energised, capableand
adaptiveleadership
team
Mature market
with established
dynamics
Diversified
digital services company
Agile ways of working supporting
customer centricity and speed
to market
Resilient network
and IT stacks, enabling
capacity and flexibility
88
W H AT
OUR AMBITIONS
UNDERPINS

Our 3 year goals
Lift digital
equity
+25k
Best cost
~31% EBITDAI
margin
Sustainable
free cash flow
growth and
top decile
TSR
(2)
+40 NPS on
every
measure
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
Brand
strength
+10pp
(1)
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
WORLD CLASS CAPABILITIES
AND CULTURE
GROW ESTABLISHEDMARKETS
ACCELERATE FUTURE MARKETS
+70 eNPS
WORLD CLASS CAPABILITIES
AND CULTURE
A POSITIVE DIGITAL FUTURE FOR
ALL OF NEW ZEALAND
89
TO HELP
ALL OF NEW ZEALAND
WIN BIG
OUR PURPOSE
IN A DIGITAL WORLD
Āwhinatia ngā tangata katoa o Aotearoa Kia matomato te tipu I te ao matihiko.
(1)
Percentage points
(2)
Total Shareholder Returns

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