Q1 FY21 overview

Q1 FY21 Connections Update
9 October 2020

>Fibre broadband connections increased by 33k
▪1Gbps connections increased 13k
▪fibre uptake across the completed UFB footprint rose from 60% to 62%
▪fibre uptake in UFB1 areas is at 65%, with Auckland growing to 70%
▪average monthly data usage on fibreincreased to 456GB, up from 436GB in June (including upstream traffic)
>Copper broadband and voice connections declined by 57k
▪line loss trends reverted to pre COVID-19 levels with additional copper broadband decline reflecting:
•RSP copper broadband billing clean-up and catch-up of copper migration delayed by Q4 lockdown period
(~5-10k)
•mobile networkproviders continuing to promote fixed wireless
•subdued RSP fibre marketing in Q1, with activity expected to lift in Q2 as enhanced Chorus campaign
incentives become available
>Total broadband connections declined by 13k to 1,193,000* (Q4 FY20: +4k; Q3 FY20:-4k)
>Total fixed line connections declined by 25k to 1,390,000* (Q4 FY20: -4k; Q3 FY20: -13k)
*totals exclude the 11,000 broadband connections Chorus is currently providing free to student households
9 October 2020
Q1 FY21 overview
Q1 FY21 CONNECTIONS UPDATE
Fibre uptake increased to 62% with 1Gbps uptake growing to 17%
2

33,000mass market fibre connections added
▪1Gbps connections grew from 115k to 128k
(i.e. 40% of 33k increase in total fibre
connections in Q1)
▪1Gbps demand represents ~20% of new
fibre connection orders in recent weeks
▪small business connections grew from 3k to
4k
0
10
20
30
40
50
60
70
80
90
100
Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20
% of
plans
Total mass market fibre uptake by plan type
50Mbps
100Mbps
1Gbps
9 October 2020
1Gbps uptake grew to 17% of mass market fibre
200Mbps
$60 p.m.
$46 p.m.
$42.50 p.m.
$55 p.m.
Business/Education plans
$56 p.m.
from 1 July
$43.56 p.m.
from 1 Oct
$47.15 p.m.
from 1 Oct
$56.38 p.m.
from 1 Oct
Q1 FY21 CONNECTIONS UPDATE
3

▪Q1 installation volumes increased significantly on prior
quarters (Q4 FY20 affected by COVID-19) as migration
activity ramps up
▪migration activity drove 7k connections in Q1 and
continues to result in ~50% uptake within 6 months of
installation
▪COVID-19 restrictions on door-to-door activity in
Auckland affected Q1 connection initiatives
▪Fibre,it’showweinternetnowadvertisingcampaign
creating strong awareness among late adopters and
helping drive migration activity
9 October 2020
Managed migration activity lifts fibre connections
Morethan15k installations completed in Q1
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Q3 FY20Q4 FY20Q1 FY21
Managed migration programme
InstallationsConnections
Q1 FY21 CONNECTIONS UPDATE
4

UFB uptake reaches 62%
>UFB uptake increased from 60% to 62% within
completed footprint in Q1
▪uptake in UFB1 areas grew from 63% to 65%
▪uptake in UFB2 areas grew from 37% to 38%
(note: uptake includes some UFB2 areas that have been partially built, but not
yet submitted for Crown sign-off)
▪757,000 connections (Q4: 725,000) now within completed
footprint, including business premium connections
▪1,226,000customers able to connect (Q4: 1,209,000)
▪947,000premises passed* (Q4: 931,000) out of
1,054,000 target = UFB rollout 90% complete
>47,000 fibre installations completed in Q1 (Q4: 31k)
▪customer satisfaction increased from 8.1 to 8.2
*under the UFB contract, a multi-dwelling unit or single office block is one premises
Uptake
9 October 2020
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Sep-19Dec-19Mar-20Jun-20Sep-20
ADSLVDSLFibre
Fibrenow 76% of Chorus broadband
connections in planned UFB zone
No. of
connections
Q1 FY21 CONNECTIONS UPDATE
5

0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Dec-19Mar-20Jun-20Sep-20
% uptake
relative to
capable
addresses
UFB1 uptake: 65%
9 October 2020
Average uptake
Q1 FY21 CONNECTIONS UPDATE
6

9 October 2020
Connection changes by Zone (indicative)
Chorus UFB
zone*
Non-UFB
zone
Local Fibre
Company
UFB zone
Total connections at
30 September**
1,087,000192,00097,000
Broadband connections978,000153,00062,000
Copper (no broadband)
connections
109,00039,00035,000
* Includes planned Chorus UFB1, 2 and 2+ coverage
**Excludes 14k fibre premium and data services (copper) connections
-2
8
3
7
-2
1
-9
-4
-8
-7
-8
-5
-5
-8
-1
-1
-1
-2
-2
-2
-2
-2
-15-5515
Q1 FY21
Q4 FY20
Q3 FY20
Q2 FY20
Q1 FY21
Q4 FY20
Q3 FY20
Q2 FY20
Q1 FY21
Q4 FY20
Q3 FY20
Q2 FY20
Broadband connections
Copper (no broadband) connections
LFC
Zone
Non-
UFB
Zone
Chorus
UFB Zone
N/C
Change in connections (‘000s) by zone**
>Chorus UFB zone: reduction in broadband reflecting RSP
copper broadband billing clean-up and catch-up of copper
migration delayed by Q4 lockdown period, as well as renewed
inertia selling campaigns by fixed wireless providers
>LFC zone: disconnections returned to pre-lockdown (Q4 FY20)
levels
>Non-UFB zone: fibre connections now 22k; some increased
rural wireless competition through mobile network expansion
Q1 FY21 CONNECTIONS UPDATE
7

0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
30-Sep-1931-Dec-1931-Mar-2030-Jun-2030-Sep-20
9 October 2020
30 Sept
2019
31 Dec
2019
31 March
2020
30 June
2020
30 Sept
2020
Unbundled copper
(no broadband)
21,00018,00017,00015,00014,000
Baseband copper
(no broadband)
201,000192,000185,000179,000169,000
Copper ADSL
(includes naked)
304,000283,000261,000245,000218,000
VDSL
(includes naked)
257,000242,000228,000221,000202,000
Fibre broadband
(GPON)
645,000681,000713,000740,000773,000
Data services
(copper)
4,0004,0004,0004,0003,000
Fibre premium
(P2P)
12,00012,00011,00011,00011,000
Total connections
1,444,0001,432,0001,419,0001,415,0001,390,000
Fibre (GPON)
VDSL
Copper ADSL
Unbundled copper
Baseband copper
Fibre comprises 56% of Chorus connections
>1,193,000 broadband connections comprises:
▪773,000 fibre (GPON) connections
▪420,000 VDSL/ADSL (copper) connections
Business premium
Note: 11,000 free education connections are excluded from this data
Q1 FY21 CONNECTIONS UPDATE
8

Monthly average data usage on fibre exceeds 450GB
>monthly average data usage per connection on our
network grew to 380GBin September, up from 350GB
(June)
▪456GBon fibre (June:436GB)
▪236GBon copper (June:215GB)
>*Note: June and September 2020 data includes
upstream traffic to reflect growing importance of two-
way traffic for consumer applications.
▪September upstream traffic values
•fibre:49GB
•average:38GB
•copper:18GB
9 October 2020
236
456
380
0
50
100
150
200
250
300
350
400
450
500
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20*
Sep-20*
CopperFibreAverage
Data
usage
(GB)
Monthly average data usage per connection on
our network*
Q1 FY21 CONNECTIONS UPDATE
9
* includes upstream traffic from June 2020 onwards

---

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

Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

9 October 2020

Q1 FY21 overview

Fibre uptake increased to 62% with 1Gbps uptake growing to 17%

Fibre broadband connections increased by 33k
• 1Gbps connections increased 13k
• fibre uptake across the completed UFB footprint rose from 60% to 62%
• fibre uptake in UFB1 areas is at 65%, with Auckland growing to 70%
• average monthly data usage on fibre increased to 456GB, up from 436GB in June (including
upstream traffic)

Copper broadband and voice connections declined by 57k
Line loss trends reverted to pre COVID-19 levels with additional copper broadband decline reflecting:
• RSP copper broadband billing clean-up and catch-up of copper migration delayed by Q4
lockdown period (~5-10k)
• mobile network providers continuing to promote fixed wireless
• subdued RSP fibre marketing in Q1, with activity expected to lift in Q2 as enhanced Chorus
campaign incentives become available

Total broadband connections declined by 13k to 1,193,000* (Q4 FY20: +4k; Q3 FY20:-4k)
Total fixed line connections declined by 25k to 1,390,000* (Q4 FY20: -4k; Q3 FY20: -13k)

*totals exclude the 11,000 broadband connections Chorus is currently providing free to student
households



Authorised by:
JB Rousselot
Chief Executive Officer

ENDS

For further information:

Steve Pettigrew
Head of External Communications
Mobile +64 (27) 258 6257
Email: Steve.Pettigrew@chorus.co.nz

Brett Jackson
Investor Relations Manager
Phone: +64 4 896 4039
Mobile: +64 (27) 488 7808
Email: Brett.Jackson@chorus.co.nz