Chorus Half Year Results

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

STOCK EXCHANGE ANNOUNCEMENT
22 February 2021
Chorus 2021 half year result
The following are attached in relation to Chorus’ half year result for the period to
31 December 2020:
1.Media Release
2.Investor Presentation
3.Letter to investors
4.Management Commentary and Financial Statements (including auditor review
report)
5.NZX Results Announcement
6.NZX Distribution Notice
Chief Executive Officer JB Rousselot and Chief Financial Officer David Collins will
discuss the half year result by webcast at 10.00am New Zealand time today. The
webcast will be available at www.chorus.co.nz/webcast.
Authorised by:
David Collins
Chief Financial Officer
ENDS
For further information:
Steve Pettigrew
Head of External Communications
Mobile +64 (27) 258 6257
Email: steve.pettigrew@chorus.co.nz
Brett Jackson
Investor Relations Manager
Phone: +64 4 896 4039
Mobile: +64 (27) 488 7808
Email: brett.jackson@chorus.co.nz

---

22 February 2021
Steady progress towards one million fibre connections
Summary
• Fibre connections increased by 62,000 to 813,000
• Net profit after tax was $24m (HY20: $31m)
• EBITDA $323m (HY20: $332m)
• Operating revenue of $473m (HY20: $483m)
• Interim dividend of 10.5 cents per share
• Fibre uptake reached 63% in completed UFB areas
• 17% of fibre connections on gigabit plans
• Capital expenditure guidance range increased to $670 million to $700 million
• FY21 EBITDA guidance unchanged, tracking towards the lower half
Chorus today reported a net profit after tax (NPAT) of $24m and earnings before interest,
tax, depreciation and amortisation (EBITDA) of $323m for the half year ending 31 December
2020. This was a decrease on the same six months to 31 December 2019, largely reflecting
the continued migration of customers from legacy copper services to alternative networks,
particularly in non-Chorus fibre network areas.
Operating revenue for the period was $473m (HY20: $483m) and operating expenses were
$150m (HY20: $151m). Depreciation and amortisation was $209m (HY20: $198m),
delivering earnings before interest and tax (EBIT) of $114m (HY20: $134m).
Solid growth in fibre connections and uptake
Chorus CEO JB Rousselot said performance during an unusual first six months of the
financial year has been solid. Fibre uptake lifted from 60% to 63% with 62,000 fibre
connections added in the six months. While strong housing growth is fuelling increased
demand for fibre installations, COVID-19’s effect on net migration into the country has
softened demand on overall broadband connections.
“Auckland’s most recent lockdown has again emphasised the need for a reliable,
congestion-free and unlimited broadband connection in the home”, said Mr Rousselot.
“With this in mind, I’m delighted that the second phase of our fibre build, UFB2, continues
to track ahead of schedule and is now taking the socio-economic benefits of fibre to many
smaller communities. Some of the more remote townships that can now connect to this
unmatched broadband technology include Fox Glacier, National Park and Mokau.
“As in the larger centres, those upgrading to fibre in these communities can typically get
fibre installed for free and comparison websites highlight the diverse range of sharp retail
offers available to new fibre customers.”

Small scale copper withdrawal trial targets less than 1% of copper lines
With the Commerce Commission releasing its final Copper Withdrawal Code in December,
Chorus will trial retiring copper in a limited number of copper cabinet areas where the
uptake of fibre is already high.
“Outside of these limited initial trial areas, no one should feel under any pressure to move
from copper. There is no overnight switch-off of the copper network. Our plans in the next
12 months are expected to affect less than one percent of the half million customers still on
copper today,” said Mr Rousselot.
A six-month notification period means customers will have plenty of time to make choices
suitable for them and the first copper cabinets would not be switched off until September at
the earliest.
Chorus is committed to ensuring its copper network remains well-maintained to deliver the
best possible voice and broadband services.
Commission’s report describes fibre “unmatched” against other technologies
The Commerce Commission’s Measuring Broadband New Zealand (MBNZ) testing raises
clear questions about some of the claims being made by fixed wireless providers on the
performance and reliability of their services relative to fixed line services, including copper.
Consumers whose providers are switching them to fixed wireless services with little or no
consultation should ask the following questions:
• What average network speed guarantees are being offered by your provider,
especially during peak times in the evening?
• Are broadband performance features like low latency, unlimited data and high-
quality video streaming important for you?
• Do comparison websites show you’re being offered the best priced service available?
• Is fibre broadband already available in your area? Or is it due soon?
Transition to a new regulatory framework
Late last year the Commerce Commission released its final decisions on the input
methodologies, or rule books, that will apply to Chorus’ fibre access network from January
2022.
Despite some slight improvements from the Commission’s draft positions Chorus’ view is
the final decisions didn’t reflect the true level of cost or risk our shareholders faced in
building the UFB network.
“We’re now at the start of a period of rapid growth in customer demand for bandwidth and
data volume, as applications emerge quickly to take advantage of the new market created
by the availability of multi-gigabit fibre services”, said Mr Rousselot.
“This makes the outcome of the Commission’s current price-quality process even more
important. Chorus’ ability and incentives to continue investing in better broadband for

consumers will be dependent on the Commission ensuring the initial cap on our potential
revenue is set above our forecast fibre revenues.”
Dividend
Chorus will pay an interim dividend of 10.5 cents per share, fully imputed, on 13 April 2021
to all shareholders registered at 5pm on 16 March 2021. A dividend reinvestment plan will
apply for the interim dividend at a discount rate of 2%. Applications to participate must be
received by 5pm (NZ time) on 17 March 2021.
FY21 guidance
• EBITDA: unchanged at $640 - $660 million (tracking towards the lower half)
• Capital expenditure: Gross capex increased to $670 - $700 million from prior range
of $630 to $670 million
ENDS
Chorus Chief Executive, JB Rousselot, and Chief Financial Officer, David Collins, will discuss
the half year results at a briefing in Wellington from 10.00am on Monday 22 February 2021
(NZDT). The webcast will be available at www.chorus.co.nz/webcast.

For further information:
Brett Jackson
Investor Relations Manager
p: +64 4 896 4039 | m: +64 (27) 488 7808 | e. brett.jackson@chorus.co.nz
Steve Pettigrew
Head of External Communications
p: +64 9 975 2951 | m: +64 (27) 258 6257 | e: steve.pettigrew@chorus.co.nz

---

HY21 RESULT
22 February 2021

22 February 2021
Disclaimer
This presentation:
• Is provided for general information purposes and does not constitute investment advice or an offer of or invitation to purchase Chorus
securities.
• Includes forward-looking statements. These statements are not guarantees or predictions of future performance. They involve known
and unknown risks, uncertainties and other factors, many of which are beyond Chorus’ control, and which may cause actual resultsto
differ materially from those contained in this presentation.
• Includes statements relating to past performance which should not be regarded as reliable indicators of future performance.
• Is current at the date of this presentation, unless otherwise stated. Except as required by law or the NZX Main Board and ASX listing
rules, Chorus is not under any obligation to update this presentation, whether as a result of new information, future events or otherwise.
• Should be read in conjunction with Chorus’ audited consolidated financial statements for the year to 30 June 2020 and NZX and ASX
market releases.
• Includes non-GAAP financial measures such as "EBITDA”. These measures do not have a standardised meaning prescribed by GAAP and
therefore may not be comparable to similar financial information presented by other entities. They should not be used in substitution for,
or isolation of, Chorus' audited consolidated financial statements. We monitor EBITDA as a key performance indicator and we believe it
assists investors in assessing the performance of the core operations of our business.
• Has been prepared with due care and attention. However, Chorus and its directors and employees accept no liability for any errors or
omissions.
• Contains information from third parties Chorus believes reliable. However, no representations or warranties (express or implied) are
made as to the accuracy or completeness of such information.
H1 FY21 RESULT PRESENTATION
2

Agenda
>HY21 overview4
>UFB rollout and uptake5-7
>COVID-19 impacts and connection trends8-10
>Financial results11-14
>Maintenance and capex15-19
>FY21 guidance, capital management and debt20-23
>Regulatory update 24-26
>A gigabit head start 27-31
>Strategic focus32-38
Appendices
▪A: Connections data 39
▪B: FY22 Capital Allocation framework40
▪C: Our strategic focus 41
22 February 2021
JB Rousselot, CEO
David Collins, CFO
JB Rousselot, CEO
H1 FY21 RESULT PRESENTATION
3

22 February 2021
HY21 overview
H1 FY21 RESULT PRESENTATION
4

UFB uptake reaches 63%
>UFB uptake increased from 60% to 63% within
completed footprint in HY21*
▪uptake in UFB1 areas grew from 63% to 66%
▪uptake in UFB2 areas grew from 37% to 39%
▪783,000 connections (FY20: 725,000) now within
completed footprint, including business premium
connections
▪1,246,000customers able to connect (FY20: 1,209,000)
▪966,000 premises passed** out of 1,054,000 target =
UFB rollout 92% complete
(note: data includes some UFB2 areas that have been partially built, but not
yet submitted for Crown sign-off)
>90,000fibre installations completed
▪customer satisfaction steady at 8.2
▪WIP reduced to 13k from 16k (FY20)
▪field crews increased from ~600 (FY20) to 689
* includes ~3k free education connections
**under the UFB contract, a multi-dwelling unit or single office block is one premises
Uptake
22 February 2021
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Dec-19Mar-20Jun-20Sep-20Dec-20
ADSLVDSLFibre
Fibrenow 79% of Chorus broadband
connections in planned UFB zone
No. of
connections
5
H1 FY21 RESULT PRESENTATION

0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Dec-19Mar-20Jun-20Sep-20Dec-20
% uptake
relative to
capable
addresses
UFB1 uptake: 66%
22 February 2021
Average uptake
6
H1 FY21 RESULT PRESENTATION

0
10
20
30
40
50
60
70
80
90
100
Dec-19Mar-20Jun-20Sep-20Dec-20
% of
plans
Total mass market fibre uptake by plan type
50Mbps
100Mbps
1Gbps
22 February 2021
1Gbps uptake grew by 21k connections
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
7
H1 FY21 RESULT PRESENTATION
>62,000mass market fibre connections
added
▪1Gbps connections grew from 115k to 136k
and are now 17% of GPON connections
▪small business connections grew from 3k to
11k as copper/fibre consumers recognise
benefits of new $52 product with business
service levels
>copper broadband CPI applied from
mid December
▪$42.35 increased to $42.97 for ADSL and
VDSL connections

22 February 2021
H1 FY21 RESULT PRESENTATION
8
COVID impacts linger
Population growth tailwind subdued by drop in net migration
Source: Stats NZ

22 February 2021
H1 FY21 RESULT PRESENTATION
9
Residential property development remains strong
Source: Stats NZ
>Build completed for 12k properties in HY21
>27k greenfield properties under contract (FY20: 25k)

22 February 2021
Connection changes by Zone (indicative)
Chorus UFB
zone*
Non-UFB
zone
Local Fibre
Company
UFB zone
Total connections at
31 December**
1,076,000191,00088,000
Broadband connections974,000153,00056,000
Copper (no broadband)
connections
102,00038,00032,000
* Includes planned Chorus UFB1, 2 and 2+ coverage
**Excludes 14k fibre premium and data services (copper) connections
-4
-2
8
3
7
-2
1
-6
-9
-4
-8
-7
-7
-8
-5
-5
-8
-1
-1
-1
-1
-2
-3
-2
-2
-2
-2
-15-5515
Q2 FY21
Q1 FY21
Q4 FY20
Q3 FY20
Q2 FY20
Q2 FY21
Q1 FY21
Q4 FY20
Q3 FY20
Q2 FY20
Q2 FY21
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 reflects combined
effects of university holiday disconnections, COVID-19 effect on
net migration and inertia selling campaigns by fixed wireless
providers
>LFC zone: disconnections consistent with pre-COVID levels
>Non-UFB zone: fibre connection growth from 20k to 24k
helping offset rural wireless competition
10
H1 FY21 RESULT PRESENTATION

Financial performance
David Collins, Chief Financial Officer
22 February 2021

Income statement
22 February 2021
>Increasing with investment in fibre
>GBP bond repaid April 2020; weighted average
interest rate on debt reduced from 5.2% to 4.0%
>Growing fibre uptake, offset by COVID impact
H1 FY21 RESULT PRESENTATION
12
H1
FY21
$m
H2
FY20
$m
H1
FY20
$m
Operating revenue473476483
Operating expenses(150)(160)(151)
Earnings before interest, tax,
depreciation and amortisation
(EBITDA)
323316332
Depreciation and amortisation(209)(204)(198)
Earnings before interest and income tax114112134
Net interest expense(77)(85)(88)
Net earnings before income tax372746
Income tax expense(13)(6)(15)
Net earnings for the year242131
>Cost base trending down, noting weather impact
on maintenance
>H2 FY20 included one-off benefit from
reintroduction of tax depreciation on buildings

H1
FY21
$m
H2
FY20
$m
H1
FY20
$m
Fibre broadband
(GPON)
228206187
Fibre premium (P2P)343736
Copper based
broadband
110127144
Copper based voice364042
Data services copper588
Field services313233
Value added network
services
151316
Infrastructure121212
Other215
Total473476483
22 February 2021
Copper revenues declining as customers migrate to
Chorus fibre or competing fibre/wireless networks
>Growing fibre uptake and ARPU: Dec FY21 $49.66 vs
June FY20 $48.42
>Migration from legacy services to lower cost inputs
Revenue
>H1 FY20 included $3m legal settlement
H1 FY21 RESULT PRESENTATION
13

>Fault volumes reduced but more weather-related network
events in HY21 and average cost per fault increased
H1
FY21
$m
H2
FY20
$m
H1
FY20
$m
Labour 384139
Network maintenance343234
Other network costs131712
IT252423
Rent, rates and property
maintenance
121411
Electricity778
Provisioning132
Insurance212
Consultants245
Regulatory levies434
Other121611
Total150160151
>H2 FY20 included $5m COVID-19 sercosupport payments
22 February 2021
>H1 FY21 redundancy costs ~$1m
Expenses
>Included $2m decommissioning of legacy copper
network equipment
>Timing of external advice on new regulatory
framework
H1 FY21 RESULT PRESENTATION
14

▪fault volumes continued to reduce, but weather related events
and third party damage increased the average cost per fault
▪overall trend of reducing copper fault costs and increasing fibre
costs was consistent with prior periods, noting:
•H2 FY20 had reduced maintenance activity due to COVID-19
•H1 FY20 had an abnormal step down in faults due to
favourably dry weather conditions
▪long run annual saving from full copper to fibre migration in
Chorus UFB areas estimated at ~$10m p.afor fixed fault costs
22 February 2021
Reactive maintenance: Chorus network
Key drivers for $31m spend
0
5
10
15
20
FibreCopper - fixedCopper -
variable
Reactive spend by type
H1 FY19H2 FY19H1 FY20H2 FY20H1 FY21
0
5
10
15
Chorus UFB Rural (Non UFB) LFC UFB
Copper -reactive spend by area
Note:
▪reactive maintenance excludesspend on proactive maintenance and
customer networks (i.e. premises wiring, no fault found, cancellations)
▪‘fixed’ faults: occur in parts of the network that affect multiple customers
(e.g. cable between exchange and cabinet)
▪‘variable’ faults: only affect one customer (e.g. cable on customer property)
$m
$m
H1 FY21 RESULT PRESENTATION
15

22 February 2021
HY21 gross capex: $353 million
Fibre capex was 85% of spend
>42k UFB2 premises ready to connect; 34k handed
over for testing
>West Coast fibre rollout commenced HY21; strong
New Property development growth
>Fibre incentive campaigns increased
>90,000 installations (UFB1:70,000; UFB2:20,000)
H1 FY21 RESULT PRESENTATION
16
FibrecapexH1 FY21
$m
H2 FY20
$m
H1 FY20
$m
UFB communal8670100
Fibre connections & layer 2146127155
Fibre products & systems877
Other fibre connections & growth473428
Customer retention costs131010
Subtotal300248300

22 February 2021
Capex: Fibre connections & layer 2
* excludes layer 2 and includes standard installations, some non-standard single dwellings and service desk costs
Connections and Layer 2 capex of $146m
H1 FY21 RESULT PRESENTATION
17
Fibre connections & layer 2 capexH1 FY21H2 FY20 H1 FY20
Layer 2
$17m$19m$12m
Premium business fibre connections
$3m
700 connections
$4m
700 connections
$6m
1,000 connections
Single dwelling units and apartments
$102m
90k connections
$75m
68k connections
$98m
99k connections
Backbonebuild: multi-dwelling units and rightsof way
$24m
3.5k completed
$29m
4.5k completed
$39m
6.5k completed
TOTAL SPEND
$146m$127m$155m
▪Average cost per UFB1 premises connected: $1,062* vs $1,025 -$1,175 guidance
▪Average cost per UFB2 premises connected:$1,226*vs $1,200 -$1,350 guidance

22 February 2021
Capex: Copper and Common
H1 FY21 RESULT PRESENTATION
18
CoppercapexH1 FY21
$m
H2 FY20
$m
H1 FY20
$m
Network sustain141615
Copperconnections101
Copper layer2243
Product000
Customer retention costs6610
Subtotal232629
CommoncapexH1 FY21
$m
H2 FY20
$m
H1 FY20
$m
Informationtechnology222320
Building& engineering services898
Other000
Subtotal303228
>continuing to trend down as connections reduce
>lifecycle upgrades for IT infrastructure

22 February 2021
Sustaining capex
$93m of H1 FY21 capex was sustaining
Fibrecapex: sustainingH1 FY21FY20 $m
Layer 21731
Fibre products & systems814
Other fibre connections 1020
Customer retention costs*57
Subtotal4072
Coppercapex: sustainingH1 FY21FY20 $m
Network sustain1431
Copperconnections11
Copper layer227
Customer retention costs*615
Subtotal2354
Commoncapex: sustainingH1 FY21FY20 $m
Informationtechnology2343
Building& engineering
services
717
Subtotal3060
▪UFB communal $86m
▪Footprint expansion (West Coast)$14m
▪Fibre connections $129m
▪Greenfield growth $23m
▪Customer retention$8m
Exclusions sub total$260m
H1 FY21 Sustaining Capex$93m
>Sustaining capex is defined as total capex excluding:
▪UFB communal & future footprint expansion
▪Fibre connections & greenfield growth
▪Customer retention spend (incentives related)
>Exclusions within H1 FY21 Capex of $353m were:
>Fibre sustaining capex is expected to increase over time
as the asset ages
H1 FY21 RESULT PRESENTATION
19
*Relates to provisioning, systems and service desk costs

22 February 2021
FY21 guidance summary
>Fibre $560m to $590m
(increasedfrom $530m to $560m)
▪greenfieldsdemand ahead of expectations
▪$285m-$305m fibre connections & layer 2
(increasedfrom $275m-$295m)
based on mass market 170,000–190,000 fibre
connections, 7,000 backbone builds and including
service desk costs
H1 FY21 RESULT PRESENTATION
20
Gross capex: $670m to $700m
(increasedfrom $630m to $670m)
EBITDA: $640m to $660m (no change –
tracking towards lower half)
▪subject to no material changes in expected
regulatory and competitive outlook
▪includes ~$10m allowance for ongoing COVID-19
impact and broader economic uncertainty
CAPEX (unchanged components)
▪$125m-$145m spend for UFB2 communal:
tracking to top end as rollout ahead of schedule
▪UFB1 CPPC $1,025 -$1,175*
▪UFB2 CPPC $1,200 -$1,350*
*excluding layer 2 and including standard installations and
some non-standard single dwellings and service desk costs
▪Copper $35m-$55m (no change)
▪Common $50m-$65m (no change)
Note: prior guidance based on mass market
145,000 –165,000 fibre connections, 9,000
backbone builds and including service desk costs

22 February 2021
▪supplementary dividend of 1.85cps payable to non-
resident shareholders
▪record date: 16 March2021
▪payment date: 13 April2021
▪Dividend Reinvestment Plan applies with 2%
discount to prevailing market price; open to New
Zealand and Australian resident shareholders
10.5cps, fully imputed
FY21 interim dividend FY21 dividend guidance
25cps, subject to no material adverse
changes in circumstances or outlook
H1 FY21 RESULT PRESENTATION
21
>from FY22 we will transition to a dividend policy based on a
pay-out range of free cash flow
▪free cash flow will be defined as net cash flows from
operating activities minus sustaining capex
>dividend levels through the transition period will reflect the
following considerations:
•maintenance of a BBB credit rating
•UFB related capital expenditure remains elevated
initially, reducing as the UFB rollout winds down (ends
Dec 2022)
•fibreconnection spend tapers off gradually, subject to
ongoing demand and timing of copper migration in
selected areas
•copper capex is declining as connections reduce

22 February 2021
Net debt/EBITDA
As at
31 Dec 2020
$m
Borrowings2,599
+ PV of CIP debt
securities (senior)
191
+ Net leases payable271
Sub total3,061
-Cash268
Total net debt2,793
Net debt/EBITDA*4.37 times
>Higher H1 FY21 gearing, driven mostly by UFB2 rollout
tracking ahead of schedule vs CIP funding regime;
increased investment in installations and one-off impact
of RSP payment timing
>No change to ratings agency thresholds:
▪S&P4.25xon a sustained basis
▪Moody’sintend to review 4.2xthreshold once there
is further clarity on regulatory framework and portion
of revenue regulated
>Financial covenants require senior debt ratio to be no
greater than 4.75 times
>The Board considers that a ‘BBB’ credit rating or
equivalent credit rating is appropriate for a company
such as Chorus.
*Based on S&P and bank covenant methodologies
H1 FY21 RESULT PRESENTATION
22

>up to $1.33 billion CIP financing
available by 2023 (57:43 equity/debt)
>$1,109m drawn at 31 Dec 2020
>At 31 December, debt of $2,599m comprised:
▪Long term bank facilities of $350m (undrawn)
▪NZ bonds: $1,300m
▪Euro Medium Term Notes $1,299m (NZ$ equivalent at hedged rates)
NZ
$M
22 February 2021
400
200
500
200
785
514
85
86
128
163
20
39
46
0
100
200
300
400
500
600
700
800
CIP debt securities available
Face value of CIP debt securities issued
EUR EMTN
NZ Bond
Crown financing and debt profile
462462
185
120
105
U F B 1
E Q U I T Y
U F B 1 D E B TU F B 2 / 2 +
E Q U I T Y
U F B 2 / 2 +
D E B T
drawnundrawn
NZ
$M
H1 FY21 RESULT PRESENTATION
23

22 February 2021
H1 FY21 RESULT PRESENTATION
24
Chorus regulated fibre revenues
>Based on input methodologies criteria, we estimate
regulated fibre revenue (PQ FFLAS) of:
▪~$480m in FY20
▪~$270m in H1 FY21
>The chart shows Regulated fibre revenues vs Other
revenue for calendar years 2012-2020
▪excludes capital contributions (e.g. greenfields) and
FFLAS in LFC areas
>2021-2024 regulated fibre revenues reflect current Board
approved business plan, based on fibre uptake trend and
target of 1m connections in 2022
>Chorus should under-earn the MAR in first regulatory
period (RP1) given:
▪incentive to invest in better consumer outcomes
▪~70% of connections are on the 100Mbps anchor
product, with pricing capped at CPI over RP1
▪fibre uptake is expected to still be growing
▪the starting RAB will include a significant financial loss
asset
0
10
20
30
40
50
60
70
80
90
100
0
200
400
600
800
1000
1200
Other Chorus revenue
Regulated fibre revenue (estimated)
Fibre uptake (June)
$m
%
uptake
Commerce
Commission
to set MAR
Note: Assessment of FFLAS revenue is based on final Input Methodologies. Subject to completion of Commerce Commission process.

17 December 2020
PRICE-QUALITY EXPENDITURE PROPOSAL
Input methodologies key parameters
Pre January 2022 period (financial loss
asset)
First regulatory period
Risk free rate5-year rate, 1 month average, calculated as at
middle of year, or mid each part year for 2012
and 2021
3-year rate, 3 months average,
calculated as at 1 June 2021
TAMRP7% until Oct 2020 then 7.5%7.5%
Debt risk premiumBBB, 7-year term, 1 month averageBBB, 5-year term, 5-year trailing
average
Leverage29%29%
Debt issuance cost0.14%0.33%
Asset beta0.50.5
WACC upliftnone –50
th
percentilenone –50
th
percentile
Asymmetric stranding riskno allowance10 basis points
Crown financingFinancing rate reflecting Chorus’ actual senior
debt/subordinated debt/equity mix
Financing rate reflecting Chorus’
actual senior debt/subordinated
debt/equity mix
25

22 February 2021
H1 FY21 RESULT PRESENTATION
26
Regulatory timetable
Source: Commerce Commission

A gigabit head start
JB Rousselot, Chief Executive Officer
22 February 2021
H1 FY21 RESULT PRESENTATION

22 February 2021
H1 FY21 RESULT PRESENTATION
28

Monthly average data usage on fibre 460 gigabytes
>monthly average data usage per connection on our
network grew to 390GBin December, up from 380GB
(Sept)
▪460GBon fibre (Sept:456GB)
▪241GBon copper (Sept:236GB)
>Average peak throughput on our network at peak time
(~9pm) was 2.44Tbps, up from 1.96Tbps in December
2019
22 February 2021
241
460
390
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*
Dec 20*
CopperFibreAverage
Data
usage
(GB)
Monthly average data usage per connection on
our network*
* includes upstream traffic from June 2020 onwards
29
H1 FY21 RESULT PRESENTATION

22 February 2021
H1 FY21 RESULT PRESENTATION
30
Commission reporting shows fixed line reliability
Fibre is unmatched for UHD streaming and lowest latency
Source: Commerce Commission, Measuring Broadband New Zealand, Spring Report (December 2020)

22 February 2021
Commission report: VDSL outperforms fixed wireless
▪The Commerce Commission’s Measuring Broadband New Zealand, Spring Report (December 2020) showed copper VDSL
services outperformed fixed wireless on key measures such as download speeds and latency
31
H1 FY21 RESULT PRESENTATION

22 February 2021
H1 FY21 RESULT PRESENTATION
32
Managed migration programme lifting uptake
0
5000
10000
15000
20000
25000
30000
35000
H2 FY18H1 FY19H2 FY19H1 FY20H2 FY20H1 FY21
Managed migration: installations vs activations
Service activation: from copper
Service activation: from offnet
Fibre installations
▪migration programme has moved from
RSP-led campaigns initially to Chorus
door knocking and targeted incentives
▪~30% of programme generated
activations have come from offnet
addresses
▪5k offnet activations through migration
programme in H1
▪continuing to see ~50% of managed
migration ONT installations activate
within 6 months
1. Winning in our core fibre business

69%
31%
64%
36%
1 gigabit
Top 3 RSPs
Other RSPs
22 February 2021
H1 FY21 RESULT PRESENTATION
33
Diversifying retail market and products
Smaller RSPs gaining greater share in 1 gigabit
77%
23%
73%
27%
All Chorus fibre (GPON)
Dec 2019Dec 2020
Dec 2020Dec 2019
▪Flip(Vocus) $15 per week ‘budget’
50Mbps fibre, unlimited data
▪2degreesWork from Home Fibre
▪Vodafone wall-to-wall Wifi
▪Sky TV to enter broadband market

22 February 2021
>migration and winbackincentives
▪upweighting retailer incentives based on customer segment, plan and
volumes (up to $300 for targeted copper ‘late adopters’; up to $600
for winbackof offnet connections)
>localised marketing campaigns
▪targeted activity and advertising in UFB1 areas with lower uptake
>new Basic Fibre offer
▪one-off $104 credit to RSPs that offer 50Mbps connections at a stand
alone retail price point of $60 or less (inclGST)
▪must be a new fibre connection
>Tenancy law change
▪landlords must agree to free fibre installation, unless specific
exemptions apply
H1 FY21 RESULT PRESENTATION
34
Continuing to refine our active wholesaler focus

22 February 2021
2. Grow new revenues
H1 FY21 RESULT PRESENTATION
35

22 February 2021
3. Optimise non-fibre assets
H1 FY21 RESULT PRESENTATION
36
>Copper Withdrawal Code enables initial trials of copper migrations to begin from September
▪initial trial migration to focus on only 30 cabinets with ~250 customers
▪subject to initial results, trial to be extended to ~400 cabinets within 12 months
▪trials affect less than 1% of remaining copper customers
>Programme to reduce network footprint
▪7 more property/lease sites exited (FY20: 20 sites)
▪reviewing radio network site requirements
▪rationalising network equipment in Spark exchanges (leased space)

22 February 2021
4. Develop long term future of the business
Defining our new operating model
H1 FY21 RESULT PRESENTATION
37
>Rapidly moving from build to operate
▪UFB rollout volume reducing quickly
▪fibre installation activity still high but will reduce
▪fault handling increasingly automated as RSPs utilise
new digital channels for fibre
▪regulatory outcomes will also shape business
>Changes already underway
▪recruitment freeze in place
▪smaller Executive team
▪employees working remotely 2-3 days on average
▪Technology and other teams adopting Agile practices
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
FY19FY20FY21FY22FY23
UFB rollout (premises) and
fibre installations
Ready to connectTo be completed
Installations

22 February 2021
H1 FY21 RESULT PRESENTATION
38
Realising New Zealand’s gigabit advantage

0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
31-Dec-1931-Mar-2030-Jun-2030-Sep-2031-Dec-20
22 February 2021
31 Dec
2019
31 March
2020
30 June
2020
30 Sept
2020
31 Dec
2020
Unbundled copper
(no broadband)
18,00017,00015,00014,00013,000
Baseband copper
(no broadband)
192,000185,000179,000169,000159,000
Copper ADSL
(includes naked)
283,000261,000245,000218,000197,000
VDSL
(includes naked)
242,000228,000221,000202,000184,000
Fibre broadband
(GPON)
681,000713,000740,000773,000802,000
Data services
(copper)
4,0004,0004,0003,0003,000
Fibre premium
(P2P)
12,00011,00011,00011,00011,000
Total connections
1,432,0001,419,0001,415,0001,390,0001,369,000
Fibre (GPON)
VDSL
Copper ADSL
Unbundled copper
Baseband copper
>1,183,000 broadband connections comprises:
▪802,000 fibre (GPON) connections
▪381,000 VDSL/ADSL (copper) connections
Business premium
Note: 11,000 free education connections are excluded from this data
39
H1 FY21 RESULT PRESENTATION
Appendix A: Connection and market trends

22 February 2021
Appendix B: FY22 capital allocation framework
Net cash flow from operating activities
Sustaining capital
expenditure
Dividend
distribution
Surplus
capital
>Transition from FY22 to dividend distribution based on pay-
out range of free cash flow to reflect:
•a focus on providing shareholders with dividend
predictability, stability and sustainable growth
•comparable Australasian infrastructure and utility-like
businesses that pay out the majority of FCF
•robust management of sustaining capital expenditure
•transition period based on completion of UFB2 communal by
December 2022 and ongoing tapering of connection capex
>Surplus capital after dividend to be allocated based on
maximising shareholder value, and guided by:
▪debt levels consistent with existing credit rating, noting potential
re-gearing from any relaxation of rating thresholds
▪discretionary capex will only be pursued where:
•greater shareholder value is created compared to share buy
backs and/or additional dividends; and
•regulatory incentives are appropriate (e.g. regulatory WACC
vs Chorus WACC)
Discretionary
capex *
Additional
dividends
Share buy
backs
H1 FY21 RESULT PRESENTATION
40
* Examples include fibre footprint expansion, greenfield connections & customer retention spend

22 February 202141
Our strategic
focus in FY21

---

Steady progress towards 1 million fibre
connections in 2022
We added 62,000 fibre connections in the six months ending
31 December 2020 (HY21), taking our total fibre connections
nationwide to 813,000. This lifted fibre uptake in our completed
Ultrafast Broadband (UFB) rollout areas from 60% to 63%.
Our managed migrations programme played a big part in this
increase with almost 15,000 consumers activating their fibre
as a result of our targeted door knocking and installation
initiatives. Many of these addresses weren’t previously connected
to our copper or fibre network. Pleasingly, customer satisfaction
with fibre installations has lifted again to 8.2 out of ten, up from
8.1 in June.
We reported EBITDA of $323 million for HY21. This was a
decrease of $9 million on the same six months to 31 December
2019 (HY20) and largely reflects the continued migration of
customers on legacy copper services to alternative networks,
particularly in non-Chorus fibre network areas. In addition, our
COVID-19 response constrained revenues through our decision
to delay inflation-linked price increases. HY20 revenues also
included the benefit of about $3 million from a one-off
legal settlement.
Expenses reduced slightly with our continued focus on
controlling discretionary expenditure helping offset cost
inflation. Net profit after tax decreased by $7 million to $24
million compared to HY20.
An interim dividend of 10.5 cents per share will be paid on
13 April 2021, up from 10 cents in HY20.
dear investors
FY21 half year result
Dividend reinvestment plan
for shareholders
A dividend reinvestment plan is available to our Australian
and New Zealand resident shareholders. There will be a
2% discount rate applied for the 13 April 2021
dividend payment.
If you haven’t previously registered to participate and wish
to do so, you’ll need to have registered your participation
by 5:00pm (NZ time) on 17 March 2021.
You can register, or deregister, by logging into your
Computershare profile at www.investorcentre.com/nz
or downloading the Participation Notice at
www.chorus.co.nz/dividends and returning it to
Computershare.
The full terms of the reinvestment plan can be read
in our Offer Document dated February 2016 at
www.chorus.co.nz/dividends, or you can request a
copy free of charge. Our most recent audited financial
statements, and auditor’s report, are included in our 2020
annual report, which is available free of charge on request
and at www.chorus.co.nz/financial-results.
1 1 Excludes free education connections provided as part of Chorus’ COVID-19
response.
2 Earnings before interest, income tax, depreciation and amortisation (EBITDA)
is a non-GAAP profit measure. We monitor this as a key performance indicator
and we believe it assists investors in assessing the performance of the core
operations of our business.
HY20: The six months ending 31 December 2019
HY21: The six months ending 31 December 2020
FY20: The 12 months ending 30 June 2020
Dividend
HY21
10.5cps
HY20
10cps
Fibre connections
1
HY21
813,000
FY20
751,000
Broadband connections
1
HY21
1,183,000
FY20
1,206,000
Fixed line connections
1
HY21
1,369,000
FY20
1,415,000
Net profit after tax
HY21
$24m
HY20
$31m
EBITDA
2
HY21
$323m
HY20
$332m
Half year result overview
NEW ZEALAND’S
GIGABIT HEAD START

Commission reporting highlights fixed
line reliability
The Commerce Commission’s broadband monitoring reports
continue to highlight the strong performance of fibre relative
to other technologies when it comes to features like latency,
speed and two-way traffic. Our VDSL copper broadband service
is also shown, on average, as performing better than wireless at
peak times. This is an important advantage, as we do lose some
customers to the major retailers’ own fixed wireless services.
Despite this independent evidence, wireless broadband providers
are not required to disclose the expected performance of their
service. This is the one area of New Zealand’s broadband regime
where we believe consumer protections are falling short.
In Europe and Australia, broadband providers for fixed and
wireless networks have the same standards of product
disclosure. In New Zealand, only fixed line broadband consumers
are told exactly what they are getting. This difference is
concerning when we continue to field reports of consumers
being transferred to a wireless service if they don’t object
within a certain timeframe (known as inertia selling). Some of
these consumers were on VDSL services that provided better
performance than wireless.
If you were previously connected to the Chorus copper network
and have been similarly affected, let us know at
company.secretary@chorus.co.nz.
The Commission has now published a copper withdrawal code
that sets out the requirements we have to meet before we can
choose to remove copper services in areas that are served by
fibre. As we’ve said previously, we’re not going to switch copper
off overnight. The new code requires us to provide at least six
months’ notice and we’ll only be migrating a very small number
of cabinet areas to start with. Copper services will be with us for
some time yet.
Fibre broadband’s green advantage
Another benefit of New Zealand’s transition to fibre broadband
is its significantly lower electricity needs compared to copper
and wireless networks. For example, fibre uses about 12 times
less power than VDSL or ADSL copper broadband on a power
per subscriber basis. The resulting drop in power usage, as
areas are migrated to fibre and we can retire copper broadband
equipment, is expected to help us make a significant reduction
in our network-related carbon emissions. As COVID-19
demonstrated, broadband can help New Zealand realise the
emissions related benefits of reduced commuting or other travel.
The Energy Efficiency and Conservation Authority estimated that
if one in five New Zealanders opted to work from home once a
week, it would prevent 84 kilotonnes of carbon dioxide entering
the atmosphere annually. This is yet another way fibre is helping
New Zealand realise a more sustainable future.
Cabinet creativity
Chorus has commissioned artists throughout New Zealand to
brighten up hundreds of our roadside cabinets over the last
decade. Pictured is a mural on a suburban cabinet by Emma
Gustafson showcasing some of New Zealand’s lesser known
species that are potentially facing extinction: the Chatham Island
Black Robin, Coromandel Striped Gecko, Kakapo, Forest Ringlet,
Maud Island Frog, Short Tailed Bat and Fairy Tern.
Transition to new regulatory framework
In October and November 2020 the Commerce Commission
released its final decisions on the input methodologies, or rule
books, that will apply to our fibre access network from January
2022. As we noted previously, we and many of our investors had
advocated for a fair return that recognised the risks taken in the
first decade of our partnership with Government and the longer-
term nature of our investment.
Despite some slight improvements from the Commission’s draft
positions, overall the final decisions simply didn’t reflect the
true level of cost or risk that our shareholders faced in building
the UFB network. This sends poor signals to investors in New
Zealand’s infrastructure and future public-private partnerships
about regulatory hindsight versus commercial reality.
Our focus now shifts to the price-quality stage in the regulatory
process. This will shape the incentives for us to continue to
invest and innovate for the benefit of consumers, including
establishing the value of our starting regulatory asset base for
fibre and the revenue we can earn from it.
Source: data from Commerce Commission, Measuring Broadband New Zealand,
Spring Report, December 2020.
Figure 1:
Average latency to test servers by plan
Lower latency is better. It means that applications which transfer
data to and from the internet in real time will respond more quickly.
Latency in milliseconds (ms)
30
40
50
20
10
0%
FIBRE
100
PEAK24/7
ADSL
27. 729.4
8.38.3
FIBRE
MAX
9.69.8
VDSL
21.922
FIXED
WIRELESS
49.450.1

Outlook – maintaining New Zealand’s
gigabit advantage
Our public-private partnership has helped provide New
Zealanders with access to a network that many other developed
countries are racing to replicate. This is because gigabit
connectivity is now widely recognised as critical to ongoing
socio-economic success.
In December 2020 we submitted our expenditure proposal for
the first regulatory period under the new utility-style regulatory
framework. Our proposal details how much operating and
capital expenditure we believe we need to spend on regulated
fibre services in the first regulatory period under review, between
January 2022 and the end of 2024. The Commission is now
reviewing this with input from various industry stakeholders.
You can read our proposal at www.chorus.co.nz/RP1-proposal
COVID-19 underlined the importance of continued investment
in network capacity and new products to keep ahead of
fast changing consumer demands. The pace of change will
accelerate in coming years as fast fibre services proliferate in
the developed world. We’re at the start of a period of rapid
growth in customer demand for bandwidth and data volume,
as applications emerge quickly to take advantage of the new
market created by the availability of multi-gigabit fibre services.
When Dunedin was crowned as our first gigatown in 2014 we
did not fully appreciate the power of fibre to accelerate change.
Back then, 30 megabits per second was considered good
enough and consumers averaged 47 gigabytes in data a month.
Fast forward to today:
• fibre has overtaken copper as the primary way we connect
to the internet, with 63% uptake to date, exceeding all
expectations
• average speeds are over 240 megabits per second with 17%
of fibre consumers having already chosen 1,000 megabit
(1 gigabit) services
• average monthly data use on fibre is 460 gigabytes and
continuing to climb
• we’re connecting the first consumers to our new 2 and 4
gigabit Hyperfibre services and are trialling 8 gigabit services,
with 25 gigabit services on the horizon
• our fibre services are enabling significant opportunities
for Kiwi businesses both in terms of productivity gains and
the development of new sectors, such as gaming and
film production.
These developments reflect a virtuous cycle of improved
technology enabling new applications that create value
for consumers.
Importantly, our Commerce Commission proposal also reflects
the need to keep supporting the evolution and efficiency of
our industry partners. The investments we make in automating
and streamlining our systems and processes help retail service
providers enhance their own service delivery, drive longer term
reductions in operational costs, and enable much better service
to New Zealand consumers.
Our role as an open access wholesaler means we also have
a part to play in enabling thriving and increasingly diverse
broadband competition. Recent product developments such
as our wi-fi enabled network terminal and enhanced support
for peering services will advance greater competition and
consumer outcomes. Network resilience is also a growing focus
as consumer reliance on broadband-based services expands and
fibre becomes an increasingly integral part of smart cities and
wireless connectivity.
New Zealand’s market structure means the in-market incentives
we provide to retailers and the education channels we support
are critical to supporting greater awareness of fibre and
maintaining a level playing field for more diverse and effective
retail competition. This benefits consumers through better retail
offers and choice, and, as more consumers connect to fibre,
secures the sustainability of the fibre network.
Our expenditure proposal aligns with our strategic
priorities and will help make New Zealand better by:
1.
completing and building on our successful UFB deployment
2. maximising consumer value now and into the future by
controlling costs, promoting fibre and investing in new
products and technologies
3. smoothly transitioning through major changes in our
operational focus, regulatory arrangements and
service mix.
Underpinning these plans is our strong intention to maintain
and evolve the cost discipline and creative partnerships we’ve
employed to deliver one of New Zealand’s largest infrastructure
projects. We cannot stand still. As we transition from build phase
to operating the fibre network, we can see opportunities to
evolve our business and supply chain capability to help minimise
the whole of life cost of the network.
New Zealand has a great opportunity to capitalise on its gigabit
head start over the rest of the world. We look forward to
working with the Commission and other stakeholders to help us
realise that ambition.
Thank you for your support of Chorus.
Kind regards,
Chorus Chair, Patrick Strange

---

Half Year Results
For the six months ended 31 December 2020
01 Half year result overview
02 Management commentary
05 Financial statements

1
Half Year Result 2021
Half year result overview
1 Excludes free education connections provided as part of Chorus’ COVID-19 response.
2 Earnings before interest, income tax, depreciation and amortisation (EBITDA) is a non-GAAP profit measure. We monitor this as a
key performance indicator and we believe it assists investors in assessing the performance of the core operations of our business.
Fibre connections
1
Dividend
813,000
HY21
10.5cps
HY21
751,000
FY20
10cps
HY20
Fixed line connections
1
Broadband connections
1
1,183,000
HY21HY21
1,369,000
1,206,000
FY20FY20
1,415,000
EBITDA
2
Net profit after tax
HY19HY18
$323m
HY21
HY19
$24m
HY21
$332m
HY20
HY18
$31m
HY20

Half Year Result 2021
2
HY21 Management commentary
We report earnings before interest, income tax, depreciation, and amortisation (EBITDA) of
$323 million for the six months ending 31 December 2020 (HY21). This was a decrease of $9 million
on the same six months in FY20 (HY20), largely reflecting the continued migration of customers
on legacy copper services to alternative networks, particularly in non-Chorus fibre network areas.
In addition, our COVID-19 response constrained HY21 revenues and HY20 revenues included
the benefit of a one-off legal settlement. Expenses reduced slightly with ongoing tight control
of discretionary expenditure helping offset cost inflation. Net earnings decreased by $7 million
compared to HY20. Depreciation and amortisation expenses continued to increase as our network
asset base grew, while interest costs reduced significantly with the repayment of the GBP EMTN in
April 2020. Guidance for FY21 EBITDA is maintained at $640 million to $660 million.
Operating revenue
Revenues of $473 million were down $10 million compared
to HY20. HY20 included about $3 million in other revenues
from favourable legal settlements.
Our COVID-19 response constrained revenues by
approximately $3 million because we chose to delay the
implementation of annual CPI increases on fibre broadband
services from July until October. Reductions in pricing for
gigabit services, however, were implemented in July. We
also extended our provision of approximately 11,000 free
broadband connections, for students identified by the
government as lacking broadband services, through to
March 2021 given the ongoing effects of COVID-19.
Broadband revenues continued to grow as more consumers
transition from copper to fibre services and almost 90% of
consumers are opting for plans above the entry level
50 megabit per second service. This saw average fibre
monthly revenue per user grow from $48.42 to $49.66
between FY20 and HY21.
Mass market broadband connections fell from 1,206,000 to
1,183,000 across the same period. This reflected ongoing
competition from alternative fibre and wireless networks, as
well as the impact of COVID-19 border restrictions on net
migration in HY21. Strong population growth had previously
provided a positive tailwind to help offset connection losses
to other networks.
Connection revenues across legacy fibre premium and
copper voice and data services also continued to decline as
consumers migrate to alternative services. Total connections
on our network reduced by 63,000 between the two periods.
CONNECTIONS
31 DECEMBER 2020
5
CONNECTIONS
31 DECEMBER 2019
CONNECTIONS
30 JUNE 2020
5

Fibre broadband (GPON)
3
802,000 681,000740,000
Fibre premium (P2P)
4
11,00012,00011,000
Copper VDSL184,000242,000221,000
Copper ADSL197,000283,000245,000
Data services over copper3,0004,0004,000
Unbundled copper13,00018,00015,000
Baseband copper159,000192,000179,000
Total fixed line connections1,369,0001,432,0001,415,000
Expenses
Total operating expenses were $150 million in HY21, a $1 million reduction from HY20. This was achieved through a
continued focus on reducing discretionary costs across the business.
Labour
Labour costs of $38 million represent staff costs that are not
capitalised and is in line with the HY20 result. We had 871
permanent and fixed term employees at the end of HY21,
up slightly from 862 employees at the end of HY20.
A recruitment freeze is in place for non-critical roles, as we
review the changing needs of our organisational structure
given our transition from being a fibre network builder to a
more operational focus.
3 GPON: Gigabit Passive Optical Network
4 P2P: Where two parties or devices are connected point-to-point via fibre.
5 This table excludes free education connections provided as part of Chorus' COVID-19 response with the Ministry of Education.

Half Year Result 2021
3
Network maintenance
Network maintenance costs were flat compared to
HY20. Overall fault volumes continued to reduce as total
customer connections reduced and a greater proportion
of customers connected to the newer fibre network. HY21
was characterised by more weather-related network events
than the favourably dry conditions of HY20. These events,
together with third party network damage, increased the
average cost per fault.
Information technology
Information technology costs were up $2 million compared
to HY20, largely due to the decommissioning of legacy
copper network equipment within Spark exchange sites.
Consultants
Consultant costs decreased by $3 million in HY21 compared
to HY20. This reflects the timing of external advice required
to support the implementation of the new regulatory
framework from January 2022.
Depreciation and amortisation
Depreciation continues to increase because of our
investment in long life network assets for the Ultra-fast
Broadband (UFB) rollout since 2011. This is partially offset
by the increasing amortisation of Crown funding against
these assets.
Finance income and expenses
Finance income is lower for HY21 because HY20 included
interest income from the funds held on term deposit in
preparation for the GBP EMTN to be repaid in April 2020.
Overall interest expense decreased by $18 million due to the
repayment of the GBP EMTN in April 2020 and the weighted
average effective interest rate moving from 5.2% to 4% in
the period. This decrease was partially offset by increased
interest on fixed rate NZD bonds in comparison to HY20 due
to the issue of new NZD bonds of $400 million in December
2020. Also, interest on the EUR EMTN increased by $6 million
due to a full six months of interest being incurred on the
EUR EMTN 2026 bond issued in December 2019, compared
to HY20 when only one month had been incurred. Notional
interest on Crown Infrastructure Partners (CIP) securities
increased as Crown funding continued to grow.

Half Year Result 2021
4
Capital expenditure
Gross capital expenditure for HY21 was $353 million, down
from $357 million in HY20. Fibre remained the dominant
category of spend at 85%, with the UFB rollout now 92%
complete. Copper related expenditure continues to trend
downwards.
We invested $86 million in the UFB2 rollout during the period.
This was up from $74 million UFB2 rollout spend in HY20.
Fibre connections and layer 2 spend was $146 million, driven
largely by the cost to install fibre to 90,000 homes and
businesses (UFB1 70,000; UFB2 20,000). This was down from
99,000 connections in HY20. The average cost per premises
connected during HY21 was $1,062
6
in UFB1 areas and
$1,226
6
in UFB2 areas.
Spend on other fibre connections and growth was
$47 million,
up from $28 million in HY20. This increase was largely due to
the West Coast fibre rollout which commenced during HY21
and is a mostly government funded three-year project.
Fibre customer retention costs increased by $3 million
reflecting a continued focus on fibre product incentives.
Copper capital expenditure reduced from $29 million in
HY20 to $23 million in the current period.
Spend on copper customer retention costs was $6 million,
down from $10 million in HY20 due to the declining uptake
of copper broadband.
Common capital expenditure was up slightly from HY20 due
to lifecycle upgrades for IT infrastructure.
Dividends, equity and capital management
Chorus will pay an interim dividend of 10.5 cents per share
on 13 April 2021 to all holders registered at 5:00pm
16 March 2021. The dividends paid will be fully imputed, at a
ratio of 28/72, in line with the corporate income tax rate. A
supplementary dividend of 1.85 cents per share will be payable
to shareholders who are not resident in New Zealand.
The dividend reinvestment plan will be available for the
interim dividend, with a 2 percent discount applied.
Participation in the dividend reinvestment plan will be based
on election notices received by the share registrar by
5:00pm (NZ time) on 17 March 2021. Shareholders who
previously elected to participate in the dividend reinvestment
plan, but no longer wish to do so, will need to update their
election by this time.
A final dividend of 14.5 cents per share is expected to be
declared in August 2021, subject to no material adverse
changes in circumstances or outlook.
On 2 December 2020 Chorus issued $200 million seven-
year and $200 million ten-year unsecured, unsubordinated,
fixed rate NZD retail bonds . The funds raised will be used for
general corporate purposes including the repayment of the
$400 million NZD retail bond in May 2021.
The Board considers that a 'BBB' or equivalent credit rating
is appropriate for a company such as Chorus. It intends to
maintain capital management policies and financial policies
consistent with these credit ratings. At 31 December 2020,
Chorus had a long-term credit rating of BBB/stable
outlook by Standard & Poor’s and Baa2/stable by
Moody’s Investors Service.
6 For a standard residential connection, excluding layer 2 and including standard installations and some non-standard single dwellings and service
desk costs.

Half Year Result 2021
5
Condensed consolidated
income statement
For the six months ended 31 December 2020
(Dollars in millions)Notes
SIX MONTHS ENDED
31 DECEMBER 2020
UNAUDITED
$M
SIX MONTHS ENDED
31 DECEMBER 2019
UNAUDITED
$M
YEAR ENDED
30 JUNE 2020
AUDITED
$M
Fibre broadband (GPON) 228 187 393
Fibre premium (P2P) 34 36 73
Copper based broadband 110 144 271
Copper based voice 36 42 82
Data services copper 5 8 16
Field services products 31 33 65
Value added network services 15 16 29
Infrastructure 12 12 24
Other 2 5 6
Total operating revenue473 483 959
Labour (38) (39) (80)
Network maintenance (34) (34) (64)
Other network (13) (12) (29)
Information technology (25) (23) (47)
Rent and rates (6) (6) (13)
Property maintenance (6) (5) (12)
Electricity (7) (8) (15)
Provisioning (1) (2) (5)
Insurance (2) (2) (3)
Consultants (2) (5) (9)
Regulatory levies (4) (4) (7)
Other (12) (11) (27)
Total operating expenses(150) (151) (311)
Earnings before interest, income tax, depreciation and amortisation 323 332 648
Depreciation1 (164) (155) (319)
Amortisation2 (45) (43) (83)
Earnings before interest and income tax 114 134 246
Finance income- 7 12
Finance expense (77) (95) (185)
Net earnings before income tax37 46 73
Income tax expense(13) (15) (21)
Net earnings for the period24 31 52
Earnings per share
Basic earnings per share (dollars)
0.050.07 0.12
Diluted earnings per share (dollars)0.040.06 0.10
The accompanying notes are an integral part of these financial statements.
Financial statements

Half Year Result 2021
6
Condensed consolidated statement of
comprehensive income
For the six months ended 31 December 2020
(Dollars in millions)Note
SIX MONTHS ENDED
31 DECEMBER 2020
UNAUDITED
$M
SIX MONTHS ENDED
31 DECEMBER 2019
UNAUDITED
$M
YEAR ENDED
30 JUNE 2020
AUDITED
$M
Net earnings for the period 24 31 52
Other comprehensive income
Items that will be reclassified subsequently to the income statement
when specific conditions are met
Movements in effective cash flow hedges
9 17 4 (28)
Amortisation of de-designated cash flow hedges transferred to income
statement
9 - (1) (3)
Movement in cost of hedging reserve9 (10) (1) 3
Other comprehensive income net of tax 7 2 (28)
Total comprehensive income for the period net of tax 31 33 24
The accompanying notes are an integral part of these financial statements.

Half Year Result 2021
7
Patrick Strange
Chair
Mark Cross
Chair, Audit and Risk Management Committee
Condensed consolidated statement
of financial position
As at 31 December 2020
(Dollars in millions)Notes
31 DECEMBER 2020
UNAUDITED
$M
31 DECEMBER 2019
UNAUDITED
$M
30 JUNE 2020
AUDITED
$M
Current assets
Cash and call deposits
268 678-
Income tax receivable 25 16 20
Trade and other receivables 139 192 140
Derivative financial instruments9 2 2 2
Finance lease receivable - 6 3
Total current assets 434 894 165
Non-current assets
Derivative financial instruments
9 66 37 93
Trade and other receivables 2 2 1
Deferred tax receivable114 102 116
Customer retention assets3 55 59 56
Software and other intangibles2 166 134 159
Network assets1 5,186 4,976 5,052
Total non-current assets 5,589 5,310 5,477
Total assets 6,023 6,204 5,642
Current liabilities
Cash overdraft
- - 5
Trade and other payables 263 323 279
Income tax payable 3 4 -
Lease payable 10 8 9
Derivative financial instruments9 3 169 -
Debt4 400 512 430
Total current liabilities excluding Crown funding 679 1,016 723
Current portion of Crown funding6 26 26 26
Total current liabilities 705 1,042 749
Non-current liabilities
Trade and other payables
5 - 3
Deferred tax payable 359 340 350
Derivative financial instruments 146 122 148
Lease payable 261 253 257
Debt4 2,256 2,214 1,892
Total non-current liabilities excluding CIP and Crown funding3,027 2,929 2,650
Crown Infrastructure Partners (CIP) securities5 495 422 461
Crown funding6 877 836 855
Total non-current liabilities 4,399 4,187 3,966
Total liabilities 5,104 5,229 4,715
Equity
Share capital
689 660 666
Reserves(104)(81)(111)
Retained earnings 334 396 372
Tot al e quit y 919 975 927
Total liabilities and equity 6,023 6,204 5,642
The accompanying notes are an integral part of these financial statements.
The financial statements are approved and signed on behalf of the Board.
Authorised for issue on 22 February 2021

Half Year Result 2021
8
Condensed consolidated statement
of changes in equity
For the six months ended 31 December 2020
(Dollars in millions)Note
Share capital
$M
Retained
earnings
$M
Hedging-related
reserves
$M
Total
$M
Balance at 1 July 2019 638 424 (83) 979
Comprehensive income
Net earnings for the year
- 52 - 52
Other comprehensive income
Movement in cash flow hedge reserve
- - (28) (28)
Amortisation of de-designated cash flow hedges transferred to
income statement
- - (3) (3)
Movement in cost of hedging reserve--33
Total comprehensive income - 52 (28) 24
Contributions by and (distributions to) owners:
Dividends
8 - (104) - (104)
Supplementary dividends - (12) - (12)
Tax credit on supplementary dividends - 12 - 12
Dividend reinvestment plan 28 - - 28
Total transactions with owners 28 (104) - (76)
Balance at 30 June 2020 (AUDITED) 666 372 (111) 927
Comprehensive income
Net earnings for the period
- 24 - 24
Other comprehensive income
Changes in cash flow hedge reserve
- - 17 17
Movement in cost of hedging reserve - - (10) (10)
Total comprehensive income - 24 7 31
Contributions by and (distributions to) owners:
Dividends
8 - (62) - (62)
Supplementary dividends - (7) - (7)
Tax credit on supplementary dividends - 7 - 7
Dividend reinvestment plan 23 - - 23
Total transactions with owners 23 (62) - (39)
Balance at 31 December 2020 (UNAUDITED) 689 334 (104) 919
The accompanying notes are an integral part of these financial statements.

Half Year Result 2021
9
(Dollars in millions)Note
Share capital
$M
Retained
earnings
$M
Hedging-related
reserves
$M
Total
$M
Balance at 1 July 2019 638 424 (83) 979
Comprehensive income
Net earnings for the period
- 31 - 31
Other comprehensive income
Movement in cash flow hedge reserve
- - 4 4
Amortisation of de-designated cash flow hedges transferred
to income statement
- - (1) (1)
Movement in cost of hedging reserve - - (1) (1)
Total comprehensive income - 31 2 33
Contributions by and (distributions to) owners:
Dividends
8 - (59) - (59)
Supplementary dividends - (7) - (7)
Tax credit on supplementary dividends - 7 - 7
Dividend reinvestment plan 22 - - 22
Total transactions with owners 22 (59) - (37)
Balance at 31 December 2019 (UNAUDITED) 660 396 (81) 975
The accompanying notes are an integral part of these financial statements.
Condensed consolidated statement
of changes in equity (continued)
For the six months ended 31 December 2020

Half Year Result 2021
10
Condensed consolidated statement
of cash flows
For the six months ended 31 December 2020
(Dollars in millions)
SIX MONTHS ENDED
31 DECEMBER 2020
UNAUDITED
$M
SIX MONTHS ENDED
31 DECEMBER 2019
UNAUDITED
$M
YEAR ENDED
30 JUNE 2020
AUDITED
$M
Cash flows from operating activities
Cash was provided from/(applied to):
Cash received from customers
478 466 940
Finance income - - 12
Payment to suppliers and employees (171) (183) (329)
Taxation paid (7) (7) (12)
Interest paid (49) (63) (137)
Net cash flows from operating activities 251 213 474
Cash flows applied to investing activities
Cash was applied to:
Purchase of network and intangible assets
(345)(372) (679)
Capitalised interest paid(1)(2) (3)
Net cash flows applied to investing activities (346) (374) (682)
Cash flows from financing activities
Cash was provided from/(applied to):
Net outflow from leases
(14) (10) (23)
Crown funding (including CIP securities) 51 99 162
Proceeds from debt 400 514 544
Repayment of debt (30) - (677)
Dividends paid (39) (37) (76)
Net cash flows from / (applied to) financing activities 368 566 (70)
Net cash flow 273 405 (278)
Cash at the beginning of the period (5) 273 273
Cash at the end of the period 268 678 (5)
The accompanying notes are an integral part of these financial statements.

Half Year Result 2021
11
Notes to the financial statements
Reporting entity and statutory base
Chorus includes Chorus Limited together with its subsidiaries
as at and for the six months ended 31 December 2020.
Chorus is New Zealand’s largest fixed line communications
infrastructure business. It builds and operates a network
predominantly made up of fibre and copper cables, local
telephone exchanges and cabinets.
Chorus Limited is a profit-orientated company registered in
New Zealand under the Companies Act 1993 and a
FMC Reporting Entity for the purposes of the Financial Markets
Conduct Act 2013.
The condensed consolidated interim financial statements
(financial statements) have been prepared in accordance
with the New Zealand equivalent to International Accounting
Standard No. 34: “Interim Financial Reporting” and Generally
Accepted Accounting Practice in New Zealand (NZ GAAP).
These financial statements do not include all of the information
required for the full annual financial statements and should be
read in conjunction with the consolidated financial statements
of Chorus as at and for the year ended 30 June 2020.
These financial statements are expressed in New Zealand dollars.
All financial information has been rounded to the nearest million,
unless otherwise stated.
The measurement basis adopted in the preparation of
these financial statements is historical cost, modified by the
revaluation of financial instruments as identified in the specific
accounting policies disclosed in the notes to the consolidated
financial statements for the year ended 30 June 2020 and
described in note 9 to these financial statements.
Chorus business operations and its interim financial statements
are not materially impacted by seasonality.
Accounting policies and standards
The accounting policies adopted and methods of computation
have been applied consistently throughout the periods
presented in these financial statements.
The financial statements for the six months ended 31 December
2020 and comparative information for the six months ended 31
December 2019 are unaudited. The comparative information for
the year ended 30 June 2020 is audited.
Reclassification and re-statement of
comparatives
Where management have reclassified items in the financial
statements, the related comparative disclosures have been
adjusted to provide a like-for-like comparison.
Accounting estimates and judgements
In preparing the financial statements, management have made
estimates and assumptions about the future that affect the
reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenue and
expenses during the period. Actual results could differ from
those estimates.
In preparing the financial statements, the significant judgements
made by management in applying Chorus’ accounting policies
were the same as those that applied to the consolidated financial
statements as at and for the year ended 30 June 2020.

Half Year Result 2021
12
Note 1 – Network assets
(Dollars in millions)
31 DECEMBER 2020
UNAUDITED
$M
31 DECEMBER 2019
UNAUDITED
$M
30 JUNE 2020
AUDITED
$M
Cost
Opening balance
10,841 10,290 10,290
Additions 314 322 571
Disposals (7) (1) (25)
Other - - 5
Closing balance 11,148 10,611 10,841
Accumulated depreciation
Opening balance
(5,789) (5,467) (5,467)
Depreciation (178) (169) (346)
Disposals 5 1 24
Closing balance (5,962) (5,635) (5,789)
Net carrying amount 5,186 4,976 5,052
Depreciation
The Crown funding amortisation that was released against
depreciation for the six months ended 31 December 2020 was
$14 million (31 December 2019: $14 million; 30 June 2020:
$27 million). This brings total depreciation to $164 million
(31 December 2019: $155 million; 30 June 2020: $319 million).
See note 6 for more information on Crown funding.
Property exchanges
Chorus has leased exchange space and commercial co-
location space owned by Spark which is subject to finance lease
arrangements (included within right of use assets).
For sites that it does not own, Chorus recognises its share of the
assets based on occupancy percentage, as well as a liability for
the future payments due.
Additions
Additions also includes the net movement within capital work in
progress during the period.
Capital commitments
There are no restrictions on Chorus network assets or any
network assets pledged as security for liabilities.
At 31 December 2020 the contractual commitment for
acquisition of network assets was $172 million (31 December
2019: $223 million; 30 June 2020: $196 million), mainly relating
to Ultra-Fast Broadband (UFB) build activity.
Right of use assets
Network assets comprise of owned and right of use (leased) assets.
(Dollars in millions)
Fibre cables
$M
Ducts, manholes
and poles
$M
Property
$M
Total
$M
Balance 1 July 2019 9 34 182 225
Additions - 10 7 17
Depreciation charge - (2) (12) (14)
Balance at 30 June 2020 9 42 177 228
Additions - 5 6 11
Relinquishments - - (1) (1)
Depreciation charge - (2) (6) (8)
Balance at 31 December 2020 9 45 176 230
Balance 1 July 2019 9 34 182 225
Additions (net of relinquishments) - 9 - 9
Depreciation charge - (3) (3) (6)
Balance at 31 December 2019 9 40 179 228
Additions to right of use assets during the period to 31 December 2020 were largely CPI adjustments to property, and ducts,
manholes and poles leases, and additions to pole leases related to UFB build activity.

Half Year Result 2021
13
Note 2 – Software and other intangibles
(Dollars in millions)
31 DECEMBER 2020
UNAUDITED
$M
31 DECEMBER 2019
UNAUDITED
$M
30 JUNE 2020
AUDITED
$M
Cost
Opening balance
836 781 781
Additions 35 22 71
Disposals - - (16)
Closing balance 871 803 836
Accumulated amortisation
Opening balance
(677) (644) (644)
Amortisation (28) (25) (49)
Disposals - - 16
Closing balance (705) (669) (677)
Net carrying amount 166 134 159
There are no restrictions on Chorus software and other intangible assets, or any pledged as security for liabilities.
Amortisation
Note
31 DECEMBER 2020
UNAUDITED
$M
31 DECEMBER 2019
UNAUDITED
$M
30 JUNE 2020
AUDITED
$M
Amortisation charged on software and intangible assets 28 25 49
Amortisation expense charged on customer retention assets3 17 18 34
Total amortisation 45 43 83
Additions
Additions also includes the net movement within capital work in progress during the period.
Capital commitments
At 31 December 2020, the contractual commitment for acquisition of software and other intangible assets was $8 million (31
December 2019: $9 million; 30 June 2020: $8 million), mainly relating to network capability enhancement activity.
Note 3 – Customer retention assets
(Dollars in millions)
31 DECEMBER 2020
UNAUDITED
$M
31 DECEMBER 2019
UNAUDITED
$M
30 JUNE 2020
AUDITED
$M
Cost
Opening balance
185 150 150
Additions 18 19 35
Closing balance 203 169 185
Accumulated amortisation
Opening balance
(129) (89) (89)
Amortisation (19) (21) (40)
Closing balance (148) (110) (129)
Net carrying amount 55 59 56
Customer retention assets are made up of $53 million of new connections and migrations (31 December 2019: $55 million; 30 June
2020 $54 million) and $2 million in customer incentives (31 December 2019: $4 million; 30 June 2020: $2 million).

Half Year Result 2021
14
Note 3 – Customer retention assets - cont
Amortisation of customer retention assets
Customer retention assets are amortised to the income statement, either as amortisation expense or operating revenue, based on
the nature of the specific costs capitalised.
Note
31 DECEMBER 2020
UNAUDITED
$M
31 DECEMBER 2019
UNAUDITED
$M
30 JUNE 2020
AUDITED
$M
Amortised to amortisation expense2 17 18 34
Amortised to operating revenue 2 3 6
Total Customer retention assets amortisation 19 21 40
Note 4 – Debt
(Dollars in millions)Due Date
31 DECEMBER 2020
UNAUDITED
$M
31 DECEMBER 2019
UNAUDITED
$M
30 JUNE 2020
AUDITED
$M
Syndicated bank facilitiesSep 2020 - - 30
Euro medium term notes GBPApr 2020 - 512 -
Euro medium term notes EUROct 2023 862 840 883
Euro medium term notes EURDec 2026 518 489 527
Fixed rate NZD BondsMay 2021 400 400 400
Fixed rate NZD BondsDec 2027 200 - -
Fixed rate NZD BondsDec 2028 500 500 500
Fixed rate NZD BondsDec 2030 196 - -
Less: facility fees (20) (15) (18)
Total debt 2,656 2,726 2,322
Current 400 512 430
Non-current 2,256 2,214 1,892
On 2 December 2020 Chorus issued $400 million NZD bonds
in two tranches, at fixed interest rates for 7 years and 10 years of
1.98% and 2.51% respectively. The bonds will mature in December
2027 and December 2030. The fixed rate on the 2030 tranche
has been swapped to a floating rate using interest rate swaps (see
note 9). As a result of the fair value hedge, at 31 December 2020,
this tranche was recognised at fair value of $196 million. This
hedging relationship was entered to comply with Chorus Treasury
policy which does not allow for greater than 70% of term debt to
be subject to fixed interest rates beyond a 3 year time period.
As at 31 December 2020 Chorus had a $350 million committed
syndicated facility on standard market terms and conditions (31
December 2019: $550 million; 30 June 2020: $550 million).

In December 2020 Chorus terminated a $200 million committed
syndicated facility. The remaining $350 million facility is
comprised of a $60 million tranche that expires in May 2022 and
$290 million that expires in April 2023. The facility is held with
banks that are rated A- to AA-, based on Standard & Poor's ratings.
The Euro Medium Term Note debt of EUR 500 million has been
swapped to a hedged rate of $785 million (31 December 2019:
$785 million; 30 June 2020: $785 million) and EUR 300 million
has been swapped to a hedged rate of $514 million (31 December
2019: $514 million; 30 June 2020: $514 million), both using cross
currency interest rate swaps (see note 9). The Euro Medium Term
Note debt of GBP 260 million was repaid in April 2020.
Note 5 – Crown Infrastructure Partners (CIP) securities
(Dollars in millions)
31 DECEMBER 2020
UNAUDITED
$M
31 DECEMBER 2019
UNAUDITED
$M
30 JUNE 2020
AUDITED
$M
Fair value on initial recognition
Opening balance
360 283 283
Additional securities recognised at fair value 17 53 77
Closing balance 377 336 360
Accumulated notional interest
Opening balance
101 72 72
Notional interest 17 14 29
Closing balance 118 86 101
Total CIP securities 495 422 461

Half Year Result 2021
15
Note 6 – Crown funding
Funding from the Crown is recognised at fair value where there
is reasonable assurance that the funding is receivable and all
attached conditions will be complied with.
Crown funding is then recognised in earnings as a reduction to
depreciation expense on a systematic basis over the useful life of
the asset the funding was used to construct.
(Dollars in millions)
31 DECEMBER 2020
UNAUDITED
$M
31 DECEMBER 2019
UNAUDITED
$M
30 JUNE 2020
AUDITED
$M
Fair value on initial recognition
Opening balance
1,016 930 930
Additional funding recognised at fair value 36 54 86
Closing balance 1,052 984 1,016
Accumulated amortisation
Opening balance
(135) (108) (108)
Amortisation (14) (14) (27)
Closing balance(149)(122)(135)
Total Crown funding 903 862 881
Current 26 26 26
Non-current 877 836 855
Ultra-Fast Broadband (UFB)
Chorus receives funding from the Crown to finance construction
costs associated with the development of the UFB network.
During the six months to 31 December 2020 Chorus recognised
funding for 23,630 premises passed (UFB2) where the premises
were passed and tested by CIP (31 December 2019: 81,433; 30
June 2020: 112,438).
This brings the total number of premises passed and tested
by CIP at 31 December 2020 to approximately 934,000
(31 December 2019: 879,000; 30 June 2020: 910,000).
Continued recognition of the full amount of the Crown funding
is contingent on certain material performance targets being met
by Chorus. The most significant of these material performance
targets relate to compliance with certain specifications under
user acceptance testing by CIP. Performance targets to date have
been met.
Note 7 – Segmental reporting
Chorus has determined that it operates in one segment
providing nationwide fixed line communications infrastructure.
The determination is based on the reports reviewed by the CEO
in assessing performance, allocating resources and making
strategic decisions.
Note 8 – Equity
Dividends
On 12 October 2020 a fully imputed final dividend of 14 cents
per share, $62 million, was paid to shareholders (31 December
2019: 13.5 cents per share, $59 million; 30 June 2020: 23.5 cents
per share, $104 million). There was an issue of 2,533,324 shares
under the Dividend Reinvestment plan offered to shareholders.
Net tangible assets per security
Net tangible assets per security for the period 31 December
2020 was $1.41 (31 December 2019: $1.67; 30 June 2020: $1.39).
Long-term performance share scheme
Chorus operates a long-term performance share scheme for
selected key management personnel.
In August 2018 Chorus issued one three-year grant. The shares
have a vesting date of 27 August 2021 and an expiry date of
27 February 2022. The grant has an absolute performance hurdle
(Chorus’ actual total shareholder return equalling or being
greater than 10.4% per annum compounding) ending on the
vesting date, with provision for monthly retesting in the following
six month period.

Half Year Result 2021
16
The shares are held by a nominee (Chorus LTI Trustee Limited)
on behalf of the participants, until after the shares vest when the
nominee is directed to transfer or sell the shares. If the shares do
not vest, they may be held or sold by the nominee. The shares
carry the same rights as all other shares.
The Chorus Board of Directors (Board) approved a different
long-term performance share scheme for key senior
management from 1 July 2019, based on issuing share-rights
instead of issuing shares. The existing grants will continue until
their vesting date.
In August 2019, Chorus issued a tranche of share rights under
the new scheme. The shares have a vesting date of 30 August
2022 and an expiry date of 30 August 2023. The grant has an
absolute performance hurdle (Chorus’ actual total shareholder
return equalling or being greater than 10.35% per annum
compounding) ending on the vesting date, with provision for
monthly retesting in the following twelve month period.
In August 2020, Chorus issued a new tranche of share rights.
The shares have a vesting date of 28 August 2023 and an expiry
date of 28 August 2024. The grant has an absolute performance
hurdle (Chorus’ actual total shareholder return equalling or being
greater than 9.65% per annum compounding) ending on the
vesting date, with provision for monthly retesting in the following
twelve month period.
The combined option cost for the six months to 31 December
2020 of $191,000 has been recognised in the Income statement
(31 December 2019: $197,000; 30 June 2020: $392,000).
Note 9 – Derivative financial instruments
Finance expense includes any unrealised ineffectiveness arising
from the hedge accounting relationships.
In conjunction with the EMTN (EUR) 500 million issued in
October 2016 and the EMTN (EUR) 300 million issued in
December 2019, Chorus entered into cross currency interest
rate swaps to hedge the foreign currency and foreign interest
rate risks on the EMTN (EUR). The 2016 swaps have an aggregate
principal of EUR 500 million on the receive leg and NZD 785
million on the pay leg, and the 2019 swaps have an aggregate
principal of EUR 300 million on the receive leg and NZD 514
million on the pay leg. Using the cross-currency interest
rate swaps, Chorus will pay NZD floating interest rates and
receive EUR nominated fixed interest with coupon payments
matching the underlying notes. Chorus designated the
EMTN and cross currency interest rate swaps into three part-
hedging relationships for each issue: a fair value hedge of EUR
benchmark interest rates, a cash flow hedge of margin and a
cash flow hedge of the principal exchange. For the six months to
31 December 2020 $1 million ineffectiveness was recognised in
finance expense (31 December 2019: $1 million; 30 June 2020:
$1 million) in relation to these hedging relationships. The cost of
hedging (the fair value of the change in currency basis spread)
recognised in the cost of hedging reserve, for the six months
to 31 December 2020 was $14 million (31 December 2019:
$1 million; 30 June 2020: $4 million debit).
As at 31 December 2020 Chorus holds all interest rate swaps
in designated hedging relationships. All are held in effective
hedging relationships and their unrealised gains or losses are
recognised in the cash flow hedge reserve. Three interest rate
swaps have been restructured; two in December 2018 and one
in February 2020. The two interest rate swaps restructured in
December 2018 have a combined face value of $500 million
and were reset in conjunction with the resettable NZD fixed
rate bond issued on 6 December 2018 to hedge interest rate
exposure from December 2023.
As part of the restructure, the original hedge relationship was
discontinued and on termination there was a net present value
of $14 million to be recognised in the cash flow hedge reserve.
This amount remains in the cash flow hedge reserve as the
hedged item still exists and is being amortised over the original
hedge period (April 2020- April 2026). The unamortised balance
of this original fair value at 31 December 2020 is $12 million (31
December 2019: $14 million; 30 June 2020: $13 million).
The forward dated interest rate swap restructured in February
2020 had a face value of $200 million and was reset in
conjunction with the EUR 300 million EMTN issued on 5
December 2019, to hedge interest rate exposure from April
2020. The original hedge relationship was discontinued and on
termination had a net present value of $27 million. This amount
was held in the cash flow hedge reserve as the hedged item
still exists and will be amortised over the original hedge period
(April 2020-April 2026). The unamortised balance of the original
fair values at 31 December 2020 was $23 million (31 December
2019: nil; 30 June 2020: $26 million).
As long as the hedges remain effective, any future gains or losses
will be processed through the hedge reserve; however, the initial
fair values will flow to finance expense in the Income statement
at some time over the life of the derivatives as ineffectiveness.
Neither the direction, nor the rate of the impact of the Income
statement can be predicted. For the six months to 31 December
2020, $1 million debit ineffectiveness was recognised within
finance expense in the Income statement in relation to these
restructures (31 December 2019: nil; 30 June 2020: nil).
Chorus has also entered into two interest rate swaps which
have a combined face value $200 million and were entered in
conjunction with the 10 year NZD bonds issued on 2 December
2020. The intention of these swaps is to swap the interest
exposure from a fixed to a floating rate to December 2030.
This hedging relationship was entered to comply with Chorus
Treasury policy which does not allow for greater than 70% of
term debt to be subject to fixed interest rates beyond a 3 year
time period.

Half Year Result 2021
17
Note 10 – Related party transactions
The gross remuneration of directors and key management
personnel during the six months to 31 December 2020 was $5.8
million (31 December 2019: $5.7 million; 30 June 2020: $8.8
million).
Chorus had loans to employees and nominees (Chorus LTI
Trustee Limited) receivable at 31 December 2020 of $0.4 million
(31 December 2019: $0.9 million; 30 June 2020: $0.9 million)
relating to the Chorus long term performance share scheme
outlined in note 8. All loans outstanding are interest-free limited
recourse loans.
Note 11 – Post balance date events
Dividends
On 22 February 2021 Chorus declared an interim dividend in
respect of the six month period ended 31 December 2020. The
total amount of the dividend is $47 million, which represents a
fully imputed dividend of 10.5 cents per ordinary share.
CIP securities and Crown funding
There was one call notice issued on 28 January 2021 to CIP in
respect to 1,752 premises (UFB2) with a total aggregate issue
price of $3.6 million. These premises had been passed and
tested by CIP before 31 December 2020 so have been accrued
for in these financial statements.

Half Year Result 2021
18
Independent review report
To the shareholders of Chorus Limited
Report on the condensed consolidated interim financial statements
Basis for conclusion
A review of condensed consolidated interim financial
statements in accordance with NZ SRE 2410 Review of
Financial Statements Performed by the Independent
Auditor of the Entity (“NZ SRE 2410”) is a limited assurance
engagement. The auditor performs procedures, consisting
of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical
and other review procedures.
As the auditor of the Group, NZ SRE 2410 requires that we
comply with the ethical requirements relevant to the audit
of the annual financial statements.
Our firm has also provided other services to the Group in
relation to regulatory audit services, tax compliance services,
technical accounting training and other assurance services.
Subject to certain restrictions, partners and employees of our
firm may also deal with the Group on normal terms within
the ordinary course of trading activities of the business of the
Group. These matters have not impaired our independence
as reviewer of the Group. The firm has no other relationship
with, or interest in, the Group.
Use of this Independent review report
This report is made solely to the shareholders as a body. Our
review work has been undertaken so that we might state to
the shareholders those matters we are required to state to
them in the Independent Review Report and for no other
purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the
shareholders as a body for our review work, this report, or
any of the opinions we have formed.
Responsibilities of the Directors for the
condensed consolidated interim
financial statements
The Directors, on behalf of the Group, are responsible for:
— the preparation and fair presentation of the condensed
consolidated interim financial statements in accordance
with NZ IAS 34 Interim Financial Reporting;
— implementing necessary internal control to enable the
preparation of condensed consolidated interim financial
statements that are fairly presented and free from material
misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern.
This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of
accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to
do so.
Auditor’s responsibilities for the review of
condensed consolidated interim financial
statements
Our responsibility is to express a conclusion on the interim
financial statements based on our review. We conducted
our review in accordance with NZ SRE 2410. NZ SRE 2410
requires us to conclude whether anything has come to our
attention that causes us to believe that the interim financial
statements are not prepared, in all material respects, in
accordance with NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially less
than those performed in an audit conducted in accordance
with International Standards on Auditing (New Zealand).
Accordingly, we do not express an audit opinion on these
interim consolidated financial statements.
This description forms part of our Independent Review Report.
KPMG
Wellington
22 February 2021
Conclusion
Based on our review, nothing has come to our attention
that causes us to believe that the condensed consolidated
interim financial statements of Chorus Limited and its
subsidiaries (“the Group”) on pages 5 to 17 do not:
i. present fairly in all material respects the Group’s financial
position as at 31 December 2020 and its financial
performance and cash flows for the 6 month period
ended on that date; and
ii. comply with NZ IAS 34 Interim Financial Reporting.
We have completed a review of the accompanying
condensed consolidated interim financial statements
which comprise:
— the condensed consolidated statement of financial
position as at 31 December 2020;
— the condensed consolidated income statement,
statements of other comprehensive income, changes
in equity and cash flows for the 6 month period then
ended; and
— notes, including a summary of significant accounting
policies and other explanatory information.

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019
Results for announcement to the market
Name of issuer Chorus Limited
Reporting Period 6 months to 31 December 2020
Previous Reporting Period 6 months to 31 December 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$473,000 Down 2%
Total Revenue $473,000 Down 2%
Net profit/(loss) from
continuing operations
$24,000 Down 23%
Total net profit/(loss) $24,000 Down 23%
Interim Dividend
Amount per Quoted Equity
Security
NZ$0.10500000
Imputed amount per Quoted
Equity Security
NZ$0.04083333
Record Date 16 March 2021
Dividend Payment Date 13 April 2021
31 December 2020 31 December 2019
Net tangible assets per
Quoted Equity Security
$1.41 $1.67
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
This announcement should be read in conjunction with the
attached management commentary and financial statements for
the six months ended 31 December 2020, media release and
investor presentation.
Authority for this announcement
Name of person

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

22/02/2021
Unaudited, but reviewed financial statements accompany this announcement. The auditors
have issued a clear review report.

---

Distribution Notice

Updated as at 18 December 2019



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

Section 1: Issuer information
Name of issuer Chorus Limited
Financial product name/description Ordinary shares
NZX ticker code CNU
ISIN (If unknown, check on NZX
website)
NZCNUE0001S2
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies X
Record date 16/03/2021
Ex-Date (one business day before the
Record Date)
15/03/2021
Payment date (and allotment date for
DRP)
13/04/2021
Total monies associated with the
distribution
1

$46,937,613
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.14583333
Gross taxable amount
3
$0.14583333
Total cash distribution
4
$0.10500000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.01852941
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

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

100%
Imputation tax credits per financial
product
$0.04083333
Resident Withholding Tax per
financial product
$0.00729167
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
2%
Start date and end date for
determining market price for DRP
15/03/2021 19/03/2021
Date strike price to be announced (if
not available at this time)
23/03/2021
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New Issue
DRP strike price per financial product
$unknown
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
5pm (NZ time) 17/03/2021
Section 5: Authority for this announcement
Name of person

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

22/02/2021





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