Spark New Zealand Limited H1 FY22 Results

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


MARKET RELEASE
23 February 2022

Spark delivers strong first half performance and announces plans
to establish Spark TowerCo

• Strong half year performance with revenue
1
, EBITDAI
2
, and NPAT all in growth
• Mobile a standout, with Spark the fastest growing provider by connections and revenue year-on-year
3

• H1 FY22 dividend of 12.5 cents per share declared, 100% imputed
• Plans to establish Spark TowerCo to drive improved utilisation and capital efficiency of passive mobile
assets, and create opportunities to introduce third-party capital

Spark New Zealand (Spark) today announced a strong H1 FY22 result, with revenue, EBITDAI, and NPAT all
in growth.

Revenue increased 5.2% to $1,890 million, driven by a standout performance in mobile. Spark was the fastest
growing NZ mobile provider by connections and revenues year-on-year
3
, with mobile service revenue up 5%.

A successful launch of simplified broadband plans stabilised Spark’s base at 702,000 connections. While
broadband revenue fell 3.9% in a highly competitive market, gross margin was maintained as the benefits of
wireless broadband (WBB) growth offset increased fibre costs.

Cloud, security, and service management revenues grew 3.2%, driven by demand for public cloud and growth
in the health sector.

Spark’s investment behind future markets continued to gain momentum. Spark IoT connections increased 31%
to 623,000, supporting strong revenue growth; Spark Health won the first national contract for digital services
under the newly established Health New Zealand and grew revenues 25%
4
; and Spark Sport grew revenues
despite the sporting calendar being significantly impacted by Covid-19.

Growing revenues drove a 7.6% increase in EBITDAI to $538 million. NPAT increased 21.8% to $179 million,
driven by EBITDAI growth, a reduction in finance expense and lease liability interest, and lower depreciation
and amortisation.

Spark declared an H1 FY22 dividend per share of 12.5 cents, 100% imputed, supported by free cash flow of
$183 million.

Spark New Zealand Chair Justine Smyth said: “While we continued to experience ongoing disruption from
Covid-19 during the half, Spark delivered strong revenue and profit growth, with a standout performance in
mobile, a stabilisation in broadband, and continued business digitisation driving cloud adoption.

“We are pleased to see the strategic ambition Spark set back in 2020 coming to fruition, with future markets
now making a significant contribution to revenue growth, and targeted investments in simple, digital customer
experiences, data and artificial intelligence, and critical infrastructure differentiating Spark in the market.

“The Board and I are particularly pleased to see this growth driven by highly engaged people – with Spark
achieving its highest employee engagement to date during the half.

“A number of infrastructure investments are progressing to plan and supporting future growth, and in the
second half Spark intends to establish Spark TowerCo to improve the utilisation and capital efficiency of its
passive mobile assets and open up opportunities to introduce third-party capital.”


1
Operating revenues and other gains
2
Earnings before finance income and expense, income tax, depreciation, amortisation and net investment income (EBITDAI) is a non-Generally Accepted Accounting
Practice performance measure that is defined and reconciled to net earnings in Spark New Zealand’s Financial Statements
3
Market share estimates sourced from IDC
4
Revenues grew 51% including procurement

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




Spark expects to be around the top half of its FY22 EBITDAI guidance range of $1,130 million to $1,160 million
and confirmed total FY22 dividend guidance of 25.0 cents per share, 100% imputed
5
.

Reflecting on the half-year results and Spark’s progress executing its three-year strategy, Spark CEO Jolie
Hodson said: “Despite closed borders keeping roaming revenues suppressed, we delivered a market-leading
mobile performance
3
, underpinned by precision marketing and increasing customer demand for data, with 48%
growth in our Endless plans year-on-year.

“We have stabilised our broadband connection base with the launch of a simpler broadband line-up and
maintained margins in a highly competitive market with continued growth in wireless. We are building on this
momentum with further competitive wireless broadband offers launched in the second half.

“While we saw continued growth in cloud, security, and service management revenues, it was lower than where
we want it to be, with the shift in portfolio mix towards public cloud continuing to put pressure on pricing. Our
service management growth trajectory was also impacted by access to client sites due to Covid, however our
second half pipeline remains strong.

“As we execute our three-year strategy, it is pleasing to see our focus on building core capabilities delivering
differentiation in the market. Our customer experiences are increasingly digital, and our simplification
programme is progressing to plan. Precision marketing is delivering a 16% uplift in conversion, we are
accelerating our shift from legacy to modern technology, and we are building a world-class culture.

"We are on track to deliver our overall FY23 future market revenue aspirations, and while Spark Sport’s
contribution will be lower than expected, it is offset by the strong growth we are experiencing in health and IoT.

“As New Zealand’s healthcare sector digitises, Spark Health goes from strength to strength, and with our digital
health platform ‘Kete Waiora’ targeting customer onboarding by the end of FY22, we expect this to continue.
Spark IoT is also poised to continue its strong revenue and connection growth as customers look to utilise the
power of technology to drive efficiency and grow their business.

“None of these results would be possible without the mahi of our people, and we remain focussed on investing
in their learning and development, their wellbeing, and creating a place where all our people feel they belong.”

Spark TowerCo subsidiary announced

During FY21 Spark conducted a review of its infrastructure portfolio, to focus effort and investment on its
strategically important assets. Since that time Spark has announced an accelerated 5G rollout, delivering 90%
population coverage by the end of 2023
6
, a material upgrade of its Mayoral Drive Exchange to support multi-
access edge compute capability, and a significant increase in capacity at its Takanini Datacentre – with up to
8MW now contracted and construction of a new data hall underway.

Today Spark announced plans to establish Spark TowerCo as a subsidiary company, to improve the
performance, utilisation, and capital efficiency of its passive mobile assets – spanning ~1,500 mobile sites
7
.

Hodson continued: “We can see globally that shared ownership models are an effective way of improving
returns from infrastructure assets that are not critical to competitive advantage. In mobile, our active assets are
what drives our competitiveness – including our core network and radio equipment. These assets leverage our
spectrum holdings, provide differentiated customer experiences, and support our wireless aspirations.

“Our passive mobile assets, on the other hand, are the physical towers that support this active equipment. By
separating these assets into a subsidiary model, we can improve utilisation through coverage expansion, future
service innovation, and increased tenancy, while delivering efficiencies in build, maintenance, technology, and
lease costs as we expand mobile coverage across Aotearoa.”



5
Subject to no adverse change in operating outlook
6
Assuming spectrum is made available by the New Zealand Government
7
Approximately 250 sites relate to outbound co-location on third party owned infrastructure (e.g., Rural Broadband Initiative (RBI) 1 sites)

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




Spark intends to commence a process in the second half of FY22 to explore the introduction of third-party
capital into Spark TowerCo, however there is no certainty that a transaction will proceed.

“Should we choose to introduce third-party capital we will retain a shareholding and remain a key anchor
tenant, with appropriate agreements in place on arms-length terms for operations and services. There will be
no change for our customers, and we will continue to invest in modernising our mobile network and improving
coverage for Aotearoa.”

Spark will provide more information on Spark TowerCo in the second half of FY22.



Authorised by:
Al astair White
GM Capital Markets

- ENDS –

Media queries: Investor queries:
Ellie Cross Chante Mueller
Corporate Relations Lead Partner Head of Investor Relations
+64 (0) 22 630 0665 +64 (0) 27 469 3062

---

FY2022
INTERIM
FINANCIAL
S TATEMENTS

Interim Financial
Statements
For the six months ended 31 December 2021
These interim financial statements do not include all the notes
and information normally included in the annual financial
statements. Accordingly, they should be read in conjunction with
the annual financial statements for the year ended 30 June 2021.
Interim financial statements3
Notes to the interim financial statements7
Independent auditor’s review report18
Page 02
Spark New ZealandInterim financial statements

Statement of profit or loss and other comprehensive income
FOR THE SIX MONTHS ENDED 31 DECEMBER
2021
RESTATED
1
2020
UNAUDITEDUNAUDITED
NOTE$M$M
Operating revenues and other gains 1,890 1,796
Operating expenses (1,352) (1,296)
Earnings before finance income and expense, income tax,
depreciation, amortisation and net investment income (EBITDAI)5 538 500
Finance income 14 17
Finance expense (37) (43)
Depreciation and amortisation (257) (262)
Net investment loss (1) -
Net earnings before income tax4 257 212
Income tax expense (78) (65)
Net earnings for the period 179 147
Other comprehensive income
Items that will not be reclassified to profit or loss:
Revaluation of long-term investments designated at fair value
through other comprehensive income (3) (51)
Items that may be reclassified to profit or loss:
Change in hedge reserves net of tax 31 10
Other comprehensive income for the period 28 (41)
Total comprehensive income for the period 207 106
Earnings per share
Basic and diluted earnings per share (cents) 9.6 8.0
Weighted average ordinary shares (millions) 1,868 1,844
Weighted average ordinary shares and options (millions) 1,870 1,846
See accompanying notes to the interim financial statements.
1 Restated due to implementation of the IFRS Interpretations Committee (‘IFRIC’) agenda decision, see notes 1 and 3.
Page 03
Spark New ZealandInterim financial statements

Statement of financial position
AS AT
31 DECEMBER
RESTATED
1
AS AT
30 JUNE
20212021
UNAUDITEDUNAUDITED
2
NOTES$M$M
Current assets
Cash 93 72
Short-term receivables and prepayments 751 768
Short-term derivative assets 3 12
Inventories 93 64
Total current assets 940 916
Non-current assets
Long-term receivables and prepayments 217 271
Long-term derivative assets 5 24
Long-term investments6 256 227
Right-of-use assets 620 647
Leased customer equipment assets 73 77
Property, plant and equipment 1,177 1,080
Intangible assets 862 858
Total non-current assets 3,210 3,184
Total assets 4,150 4,100
Current liabilities
Short-term payables, accruals and provisions 537 479
Taxation payable 21 23
Short-term derivative liabilities 3 4
Short-term lease liabilities 66 60
Debt due within one year7 283 373
Total current liabilities 910 939
Non-current liabilities
Long-term payables, accruals and provisions 61 60
Long-term derivative liabilities 58 91
Long-term lease liabilities 382 406
Long-term debt7 1,181 1,030
Deferred tax liabilities 81 82
Total non-current liabilities 1,763 1,669
Total liabilities 2,673 2,608
Equity
Share capital 1,095 1,084
Reserves (343) (371)
Retained earnings 725 779
Total equity 1,477 1,492
Total liabilities and equity 4,150 4,100
See accompanying notes to the interim financial statements.
1 Restated due to implementation of the IFRIC agenda decision, see notes 1 and 3.
2 The balance as at 30 June 2021 was audited except for the restatements as disclosed in note 3 which are unaudited.
On behalf of the Board
Justine Smyth, Chair Jolie Hodson, Chief Executive
Authorised for issue on 23 February 2022
Page 04
Spark New ZealandInterim financial statements

Statement of changes in equity
SIX MONTHS ENDED
31 DECEMBER 2021
SHARE
CAPITAL
RETAINED
EARNINGS
HEDGE
RESERVES
SHARE-
BASED
COMPEN-
SATION
RESERVE
RE-
VALUATION
RESERVE
FOREIGN
CURRENCY
TRANS-
LATION
RESERVETOTAL
UNAUDITED$M$M$M$M$M$M$M
Balance at 1 July 2021 - RESTATED
1
1,084 779 (63) 3 (288) (23) 1,492
Net earnings for the period – 179 – – – – 179
Other comprehensive income/(loss) – – 31 – (3) – 28
Total comprehensive income/(loss)
for the period – 179 31 – (3) – 207
Contributions by, and distributions to,
owners:
Dividends – (233) – – – – (233)
Supplementary dividends – (23) – – – – (23)
Tax credit on supplementary
dividends – 23 – – – – 23
Dividend reinvestment plan 8 – – – – – 8
Issuance of shares under share
schemes 4 – – – – – 4
Other transfers (1) – – – – – (1)
Total transactions with owners 11 (233) – – – – (222)
Balance at 31 December 2021 1,095 725 (32) 3 (291) (23) 1,477
SIX MONTHS ENDED
31 DECEMBER 2020 RESTATED
1
SHARE
CAPITAL
RETAINED
EARNINGS
HEDGE
RESERVES
SHARE-
BASED
COMPEN-
SATION
RESERVE
RE-
VALUATION
RESERVE
FOREIGN
CURRENCY
TRANS-
LATION
RESERVETOTAL
UNAUDITED$M$M$M$M$M$M$M
Balance at 1 July 2020
2
949 870 (120) 2 (212) (23) 1,466
Net earnings for the period – 147 – – – – 147
Other comprehensive income/(loss) – – 10 – (51) – (41)
Total comprehensive income/(loss)
for the period – 147 10 – (51) – 106
Contributions by, and distributions to,
owners:
Dividends – (230) – – – – (230)
Supplementary dividends – (24) – – – – (24)
Tax credit on supplementary
dividends – 24 – – – – 24
Dividend reinvestment plan 63 – – – – – 63
Issuance of shares under share
schemes 4 – – – – – 4
Total transactions with owners 67 (230) – – – – (163)
Balance at 31 December 2020 1,016 787 (110) 2 (263) (23) 1,409
See accompanying notes to the interim financial statements.
1 Restated due to implementation of the IFRIC agenda decision, see notes 1 and 3.
2 The retained earnings balance at 1 July 2020 has been restated by $19 million due to the reassessment of useful lives
of reacquired rights, as reported as at 30 June 2021. This had no impact on financial performance for the year ended
30 June 2021.
Page 05
Spark New ZealandInterim financial statements

Statement of cash flows
FOR THE SIX MONTHS ENDED 31 DECEMBER
2021
RESTATED
1
2020
UNAUDITEDUNAUDITED
NOTE$M$M
Cash flows from operating activities
Receipts from customers 1,901 1,828
Receipts from interest 13 16
Payments to suppliers and employees (1,327) (1,321)
Payments for income tax (93) (118)
Payments for interest on debt (23) (23)
Payments for interest on leases (10) (16)
Payments for interest on leased customer equipment assets (3) (4)
Net cash flows from operating activities8 458 362
Cash flows from investing activities
Proceeds from sale of business – 8
Proceeds from long-term investments 3 –
Receipts from finance leases 2 2
Payments for, and advances to, long-term investments (39) (4)
Payments for purchase of property, plant and equipment,
intangibles (excluding spectrum), and capacity (216) (212)
Payments for capitalised interest (3) (3)
Net cash flows from investing activities (253) (209)
Cash flows from financing activities
Net proceeds from debt 99 100
Payments for dividends (225) (167)
Payments for leases (33) (20)
Payments for leased customer equipment assets (25) (16)
Net cash flows from financing activities (184) (103)
Net cash flow 21 50
Opening cash position 72 53
Closing cash position 93 103
See accompanying notes to the interim financial statements.
1 Restated due to implementation of the IFRIC agenda decision, see notes 1 and 3.
Page 06
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 1 About this report
Reporting entity
These unaudited interim financial statements are
for Spark New Zealand Limited (the ‘Company’)
and its subsidiaries (together ‘Spark’ or ‘the
Group’) for the six months ended 31 December
2021.
The Company is incorporated and domiciled in
New Zealand, registered under the Companies
Act 1993 and is an FMC reporting entity under
the Financial Markets Conduct Act 2013. The
Company is listed on the New Zealand Main
Board equity security market and the Australian
Securities Exchange.
Basis of preparation
The interim financial statements have been
prepared in accordance with Generally
Accepted Accounting Practice in New Zealand
(‘NZ GAAP’) and comply with the New Zealand
equivalent to International Accounting Standard
34: Interim Financial Reporting and International
Accounting Standard 34: Interim Financial
Reporting.
Except as amended following the
implementation of the IFRIC decision outlined
below, the accounting policies adopted are
consistent with those followed in the
preparation of Spark’s annual financial
statements for the year ended 30 June 2021.
The preparation of the interim financial
statements requires management to make
estimates and assumptions. Spark has been
consistent in applying the estimates and
assumptions adopted in the annual financial
statements for the year ended 30 June 2021 and
critical accounting policies are the same as
those set out in the annual financial statements
for the year ended 30 June 2021. Certain
comparative information has been updated to
conform with the current year’s presentation.
Financial instruments are either carried at
amortised cost, less any provision for
impairment, or fair value. The only significant
variances between instruments held at
amortised cost and their fair value relate to
long-term debt. There were no changes in
valuation techniques during the period. Spark’s
derivatives are held at fair value, calculated
using discounted cash flow models and
observable market rates of interest and foreign
exchange and electricity prices. This represents
a level two measurement under the fair value
measurement hierarchy, being inputs other than
quoted prices included within level one that are
observable for the asset or liability.
At 31 December 2021, capital expenditure
amounting to $350 million (31 December 2020:
$223 million) had been committed under
contractual arrangements.
Implementation of the IFRIC agenda
decision
During the six months ended 31 December
2021, Spark revised its accounting policy in
relation to configuration and customisation costs
incurred in implementing Software-as-a-Service
(‘SaaS’) cloud computing arrangements. This
was in response to the IFRIC agenda decision,
issued in April 2021, clarifying its interpretation
of how current accounting standards apply to
these types of arrangements.
The IFRIC decision clarified that because SaaS
arrangements are service contracts that provide
Spark with the right to access the cloud
provider’s application software over the contract
period, costs to configure or customise this
software should be recognised as operating
expenses when the services are received.
Previously Spark had recorded these
configuration and customisation costs as part of
the cost of an intangible asset and amortised
these costs over the useful life of the software
assets. A summary of the impact of the change
in accounting policy on Spark’s interim financial
statements is provided in note 3.
New and amended standards
Spark has adopted amendments issued for
New Zealand equivalents to International
Financial Reporting Standard (‘NZ IFRS’) 9
Financial Instruments and NZ IFRS 16 Leases that
address issues arising from the reform of
benchmark interest rates. These amendments
have not had a material impact on the Group’s
financial statements.
Page 07
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 2 Significant transactions and events for the current period
The following significant transactions and events
affected the financial performance and financial
position of Spark for the six month period to 31
December 2021:
Debt (see note 7)
• On 30 November 2021, Spark established
three Sustainability-Linked Loans totalling
$425 million. These consist of; converting an
existing $200 million facility with Westpac
New Zealand, to mature on 30 November
2023; establishing a new $100 million facility
with Commonwealth Bank of Australia, to
mature on 30 November 2024; and extending
a $125 million facility with Mitsubishi UFG
Financial Group Bank Limited, to mature on
30 November 2025.
Capital expenditure
• Spark’s additions to property, plant and
equipment (excluding property, plant and
equipment transfers from finance lease
receivables of $81 million) and intangible
assets were $218 million, details of which are
available in a separate detailed financials file
on the investor section of our website at:
investors.sparknz.co.nz/investor-centre.
Dividends
• Dividends paid during the six month period
ended 31 December 2021 in relation to the
H2 FY21 second-half dividend (ordinary
dividend of 12.5 cents per share) totalled
$233 million or 12.5 cents per share, of this
$8 million was settled through the dividend
reinvestment plan.
Leases
• On 1 December 2021, Chorus exercised its
right of renewal for the Spark exchange
buildings lease. This resulted in a combination
of lease renewals, lease relinquishments, a
new operating lease and an annual price
review. In exercising this right Chorus
renewed some space and relinquished some
space. As a result of these changes, Spark
recognised an increase of $81 million in
property, plant and equipment assets for the
exchange space it has taken back control of
from Chorus. This was offset by a reduction of
$69 million in finance leases no longer
receivable from Chorus and a gain of
$12 million reported within other gains for the
price increases over the remaining lease term.
Southern Cross Next Cable (‘SX NEXT’)
• During the six month period ended
31 December 2021, Spark contributed
$37 million of equity to its Southern Cross
investment to fund the SX NEXT undersea
cable build. Subsequent to 31 December
2021 Spark contributed $7 million of
additional equity.
Acquisitions
• On 22 December 2021, Spark announced
that it will be acquiring the remaining 50% of
its joint venture, Connect 8, a fibre network
construction company. The transaction
completed on 31 January 2022.
Page 08
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 3 Impact of change in accounting policy
As outlined in note 1, the impact of the change in Spark’s accounting policy in relation to SaaS
arrangements in response to the IFRIC agenda decision on the comparative financials statements is
as follows:
PREVIOUSLY
REPORTED
AUDITED
CHANGE IN
ACCOUNTING
POLICY
UNAUDITED
RESTATED
UNAUDITED
$M$M$M
Statement of profit or loss and other comprehensive income
SIX MONTHS ENDED 31 DECEMBER 2020
Operating expenses (1,294) (2) (1,296)
Earnings before finance income and expense, income tax,
depreciation, amortisation and net investment income
(EBITDAI) 502 (2) 500
Depreciation and amortisation (263) 1 (262)
Net earnings before income tax 213 (1)212
Net earnings for the period148 (1)147
Earnings per share
Basic and diluted earnings per share 8.0 – 8.0
Statement of cashflows
SIX MONTHS ENDED 31 DECEMBER 2020
Payments to suppliers and employees (1,319) (2) (1,321)
Net cash flows from operating activities 364 (2)362
Payments for purchase of property, plant and equipment,
intangibles (excluding spectrum) and capacity (214) 2 (212)
Net cash flows from investing activities (213) 2 (211)
Statement of financial position
OPENING AS AT 1 JULY 2020
Intangible assets 843 (10) 833
Total assets 4,358 (10) 4,348
Deferred tax liabilities 61 (2) 59
Total liabilities 2,884 (2) 2,882
Retained earnings 878 (8) 870
Total liabilities and equity 4,358 (10) 4,348
AS AT 30 JUNE 2021
Intangible assets 871 (13) 858
Total assets 4,113 (13) 4,100
Deferred tax liabilities 84 (2) 82
Total liabilities 2,610 (2) 2,608
Retained earnings 790 (11) 779
Total liabilities and equity 4,113 (13) 4,100
Page 09
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 4 Segment information
NOTE 3 Impact of change in accounting policy (continued)
FOR THE SIX MONTHS ENDED
31 DECEMBER
20212020
OPERATING
REVENUES
PRODUCT
COSTS
PRODUCT
MARGIN
OPERATING
REVENUES
PRODUCT
COSTS
PRODUCT
MARGIN
UNAUDITED$M$M$M$M$M$M
Mobile 678 (241) 437 651 (244) 407
Voice 146 (60) 86 154 (67) 87
Broadband 324 (158) 166 337 (171) 166
Cloud, security and service
management 224 (48) 176 217 (38) 179
Procurement and partners 301 (275) 26 236 (216) 20
Managed data, networks
and services 140 (75) 65 140 (68) 72
Other product
1
61 (28) 33 57 (29) 28
Segment result 1,874 (885) 989 1,792 (833) 959
1 Other product includes revenue from Qrious, Internet of Things, Spark Sport and exchange building sharing arrangements.
The segment results disclosed are based on those reported to the Chief Executive and are how
Spark reviews its performance. Spark’s segments are measured based on product margin, which
includes product operating revenues and direct product costs. The segment result excludes other
gains, labour, operating expenses, depreciation and amortisation, net investment income, finance
income and expense and income tax expense, as these are assessed at an overall Group level by the
Chief Executive.
Comparative segment results
As reported in H2 FY21, Spark reclassified the comparative segment results to reflect changes in the
classification of CCL solutions and cloud-based telephony products and also a reclassification of
some voice revenues to managed data, networks and services.
Impact of change in accounting policy
The change in Spark’s accounting policy in relation to SaaS arrangements in response to the IFRIC
agenda decision has reduced EBITDAI, net earnings before tax, and total assets due to such
expenses now being recognised as the services are received rather than capitalised as an intangible
asset and amortised over the software asset’s useful life.
There has been no net impact on Spark’s statement of cashflows however it has resulted in the
reclassification of the applicable costs incurred from investing to operating activities.
Page 10
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 4 Segment information (continued)
Reconciliation from segment result to consolidated net earnings before income tax
SIX MONTHS ENDED 31 DECEMBER2021
RESTATED
2020
UNAUDITED$M$M
Segment product margin 989 959
Other gains 16 4
Labour (263) (256)
Other operating expenses
Network support costs (44) (44)
Computer costs (55) (51)
Accommodation costs (30) (32)
Advertising, promotions and communication (34) (44)
Bad debts (3) 1
Impairment expense (2) –
Other (36) (37)
Earnings before finance income and expense, income tax, depreciation,
amortisation and net investment income (EBITDAI) 538 500
Finance income
Finance lease interest income 6 6
Other interest income 8 11
Finance expense
Finance expense on long-term debt (23) (21)
Capitalised interest 3 3
Other interest and finance expenses (4) (6)
Lease interest expense (10) (15)
Leased customer equipment interest expense (3) (4)
Depreciation and amortisation expense
Depreciation - property, plant and equipment (116) (124)
Depreciation - right-of-use assets (40) (35)
Depreciation - leased customer equipment assets (18) (19)
Amortisation of intangibles (83) (84)
Net investment loss
Share of associates' and joint ventures' net losses (1) –
Net earnings before income tax 257 212
Page 11
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 5 Non-GAAP measures
Spark uses non-GAAP financial measures that are not prepared in accordance with NZ IFRS. Spark
believes that these non-GAAP financial measures provide useful information to readers to assist in
the understanding of the financial performance, financial position or returns of Spark. These
measures are also used internally to evaluate performance of products, to analyse trends in cash-
based expenses, to establish operational goals and allocate resources. However, they should not be
viewed in isolation, nor considered as a substitute for measures reported in accordance with NZ
IFRS, as they are not uniformly defined or utilised by all companies in New Zealand or the
telecommunications industry.
Spark’s policy is to present ‘adjusted EBITDAI’ and ‘adjusted net earnings’ when a financial year
includes significant items (such as gains, expenses and impairments) individually greater than $25
million. There are no adjusting items for the six months ended 31 December 2021 or 31 December
2020.
Earnings before finance expense and income, income tax, depreciation, amortisation and net
investment income (EBITDAI)
Spark calculates EBITDAI by adding back depreciation and amortisation, finance expense and
income tax expense and subtracting finance income and net investment income (which includes any
dividend income and Spark’s share of net profits or losses from associates and joint ventures) to net
earnings. A reconciliation of Spark’s EBITDAI is provided below and based on amounts taken from,
and consistent with, those presented in these interim financial statements.
SIX MONTHS ENDED 31 DECEMBER2021
RESTATED
2020
UNAUDITED$M$M
Net earnings for the period reported under NZ IFRS 179 147
Less: finance income (14) (17)
Add back: finance expense 37 43
Add back: depreciation and amortisation 257 262
Add back: net investment loss 1 –
Add back: income tax expense 78 65
EBITDAI 538 500
Page 12
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 6 Long-term investments
AS AT
31 DECEMBER
AS AT
30 JUNE
20212021
UNAUDITEDAUDITED
Measurement basis$M$M
Shares in HutchisonFair value through other
comprehensive income 157 160
Investment in associates and joint
ventures
Equity method
93 59
Other long-term investmentsCost 6 8
256 227
Spark holds a 10% interest in Hutchison Telecommunications Australia Limited (Hutchison) which is
quoted on the Australian Securities Exchange (ASX) and its fair value is measured using the
observable bid share price as quoted on the ASX, classified as being within Level 1 of the fair value
hierarchy. As at 31 December 2021 the quoted price of Hutchison’s shares on the ASX was
AUD$0.110 (30 June 2021: AUD$0.110). The decrease in fair value of $3 million, as a result of
changes in foreign exchange rate, has been recognised in other comprehensive income (30 June
2021: $87 million decrease).
Investment in associates and joint ventures
Spark’s investment in associates and joint ventures at 31 December 2021 consists of the following:
NAMETYPECOUNTRYOWNERSHIPPRINCIPAL ACTIVITY
Connect 8 LimitedJoint VentureNew Zealand50%Fibre network
construction
Flok LimitedAssociateNew Zealand38%Hardware and software
development
Pacific Carriage Holdings Limited
Inc
AssociateUnited States40%A holding company
Rural Connectivity Group LimitedJoint VentureNew Zealand33%Rural broadband
Southern Cross Cables Holdings
Limited
AssociateBermuda40%A holding company
TNAS LimitedJoint VentureNew Zealand50%Telecommunications
development
Spark sold its remaining investment in PropertyNZ Limited (homes.co.nz) on 1 September 2021.
Page 13
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 7 Debt
AS AT
31 DECEMBER
AS AT
30 JUNE
20212021
COUPON
RATE
UNAUDITEDAUDITED
FACE VALUEFACILITYMATURITY$M$M
Short-term debt
Short-term borrowingsVariable< 1 month 28 3
Commercial paperVariable< 3 months 138 155
166 158
Supplier financing arrangements
1
Amounts due within one yearVariable< 3 years 16 14
Amounts due in more than a
yearVariable< 3 years 14 18
30 32
Bank funding
The Hongkong and Shanghai
Banking Corporation Limited100 million NZDVariable30/11/2021 – 100
Mitsubishi UFG Financial
Group Bank Limited125 million NZDVariable30/11/2022 – 60
Westpac New Zealand Limited
2
200 million NZDVariable30/11/2023 25 –
Commonwealth Bank of
Australia
2
100 million NZDVariable30/11/2024 100 –
Mitsubishi UFG Financial
Group Bank Limited
2
125 million NZDVariable30/11/2025 125 –
250 160
Domestic notes
100 million NZD4.50%25/03/2022 101 101
100 million NZD4.51%10/03/2023 102 104
125 million NZD3.37%07/03/2024 125 130
125 million NZD3.94%07/09/2026 124 131
452 466
Foreign currency Medium Term Notes
Australian Medium Term Notes – 100 million AUD1.90%05/06/2026 102 106
Australian Medium Term Notes – 150 million AUD4.00%20/10/2027 169 177
Australian Medium Term Notes – 125 million AUD2.60%18/03/2030 127 132
Norwegian Medium Term Notes – 1 billion NOK
3
3.07%19/03/2029 168 172
566 587
1,464 1,403
Debt due within one year 283 373
Long-term debt 1,181 1,030
1 Supplier financing arrangements relate to amounts payable to suppliers on extended payment terms and are therefore considered
as debt. Amounts paid under these arrangements are presented in the statement of cashflows within financing activities.
2 These facilities are Sustainability-Linked Loans. Spark will receive lower interest rates if it achieves sustainability targets and
higher rates on the loans if it falls short of these targets.
3 Norwegian krone
There have been no changes in Spark’s short-term financing programmes or stand-by facilities since
30 June 2021. Changes in long-term financing are disclosed in note 2 page 8 of these interim
financial statements.
Page 14
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 7 Debt (continued)
The fair value of long-term debt, including long-term debt due within one year, based on market
observable prices, was $1,325 million compared to a carrying value of $1,298 million as at
31 December 2021 (30 June 2021: fair value of $1,270 million compared to a carrying value of
$1,245 million).
AS AT
31 DECEMBER
AS AT
30 JUNE
20212021
UNAUDITEDAUDITED
$M$M
Total debt 1,464 1,403
Less short-term debt (166) (158)
Total long-term debt (including long-term debt due within one year) 1,298 1,245
Net debt
Net debt at hedged rates, the primary net debt measure Spark monitors, includes long-term debt at
the value of hedged cash flows due to arise on maturity, plus short-term debt, less any cash. Net
debt at carrying value includes the non-cash impact of fair value hedge adjustments and any
unamortised discount.
Net debt at hedged rates is a non-GAAP measure and is not defined in accordance with NZ IFRS but
is a measure used by management. A reconciliation of net debt at hedged rates and net debt at
carrying value is provided below:
AS AT
31 DECEMBER
AS AT
30 JUNE
20212021
UNAUDITEDAUDITED
$M$M
Cash (93) (72)
Short-term debt at face value
166 158
Long-term debt at face value 1,298 1,212
Net debt at face value 1,371 1,298
To retranslate debt balances at swap rates where hedged by currency swaps 9 5
Net debt at hedged rates
1
1,380 1,303
Non-cash adjustments
Impact of fair value hedge adjustments
2
11 12
Unamortised discount (1) (2)
Net debt at carrying value 1,390 1,313
1 Net debt at hedged rates is the value of hedged cash flows due to arise on maturity and includes an adjustment to state
the principal of foreign currency medium term notes at the hedged currency rate.
2 Fair value hedge adjustments arise on domestic notes in fair value hedges and foreign currency medium term notes in
dual fair value and cash flow hedges. These have no impact on the cash flows to arise on maturity.

Page 15
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 8 Reconciliation of net earnings to net cash flows from operating activities
SIX MONTHS ENDED 31 DECEMBER2021
RESTATED
2020
UNAUDITED$M$M
Net earnings for the period 179 147
Adjustments to reconcile net earnings to net cash flows from operating
activities
Depreciation and amortisation 257 262
Bad and doubtful accounts 5 1
Deferred income tax (14) (11)
Share of associates' and joint ventures' net losses 1 –
Impairments 2 –
Other gains (16) (4)
Other – 1
Changes in assets and liabilities net of effects of non-cash and investing
and financing activities
Movement in receivables and related items (16) 24
Movement in inventories (29) 12
Movement in current taxation1 (41)
Movement in payables and related items 88 (29)
Net cash flows from operating activities 458 362
Page 16
Spark New ZealandInterim financial statements

Notes to the interim financial statements
NOTE 9 Dividends
On 23 February 2022, the Board approved the payment of a first half ordinary dividend of 12.5 cents
per share or approximately $234 million. The dividend will be 100% imputed in line with the
corporate income tax rate. In addition, supplementary dividends totalling approximately $23 million
will be payable to shareholders who are not resident in New Zealand. In accordance with the Income
Tax Act 2007, Spark will receive a tax credit from Inland Revenue equivalent to the amount of
supplementary dividends paid.
H1 FY22
ORDINARY DIVIDENDS
Dividends declared
Ordinary shares12.5 cents
American Depositary Shares
1
41.81 US cents
Imputation
Percentage imputed100%
Imputation credits per share4.8611 cents
Supplementary dividend per share
2
2.2059 cents
‘Ex’ dividend dates
New Zealand Stock Exchange24/03/22
Australian Securities Exchange24/03/22
American Depositary Shares 24/03/22
Record dates
New Zealand Stock Exchange25/03/22
Australian Securities Exchange25/03/22
American Depositary Shares 25/03/22
Payment dates
New Zealand and Australia 8/04/22
American Depositary Shares 18/04/22
1 Spark’s American Depositary Shares, each representing five ordinary Spark shares and evidenced by American Depositary
Receipts (ADRs), are traded over-the-counter in the United States. This is a Level 1 ADR programme that is sponsored by
Bank of New York Mellon. For H1 FY22, these are based on the exchange rate at 17 February 2022 of NZ$1 to US$0.6689
and a ratio of five ordinary shares per one American Depositary Share. The actual exchange rate used for conversion is
determined in the week prior to payment when the Bank of New York performs the physical currency conversion.
2 Supplementary dividends are paid to non-resident shareholders.
Dividend Reinvestment Plan
The Company has a dividend reinvestment plan under which shareholders can elect to receive
dividends in additional shares. For the six months 31 December 2021 shares with a total value of
$8 million (31 December 2020: $63 million) were issued in lieu of dividends. Shares issued in lieu of
dividends are excluded from dividends paid in the statement of cash flows.
The dividend reinvestment plan has been retained for the H1 FY22 dividend. Shares issued under
the dividend reinvestment plan will be issued at the prevailing market price around the time of issue.
The last date for shareholders to elect to participate in the dividend reinvestment plan for the H1
FY22 dividend is 28 March 2022. 
Spark’s Dividend Reinvestment Plan Offer Document and Participation Notice can be found on
Spark’s Investor Centre Website investors.sparknz.co.nz 
Page 17
Spark New ZealandInterim financial statements

Independent Auditor’s Review Report
To the Shareholders of Spark New Zealand Limited
Conclusion
We have reviewed the condensed consolidated interim financial statements (‘interim financial
statements’) of Spark New Zealand Limited (‘the Company’) and its subsidiaries (‘the Group’), which
comprise the statement of financial position as at 31 December 2021, and, the statement of profit or
loss and other comprehensive income, statement of changes in equity and statement of cash flows
for the six months ended on that date, and a summary of significant accounting policies and other
explanatory information on pages 3 to 17.
Based on our review, nothing has come to our attention that causes us to believe that the interim
financial statements of the Group do not present fairly, in all material respects, the financial position
of the Group as at 31 December 2021 and its financial performance and cash flows for the six
months ended on that date in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34
Interim Financial Reporting.
Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements
Performed by the Independent Auditor of the Entity (‘NZ SRE 2410 (Revised)’). Our responsibilities
are further described in the Auditor’s Responsibilities for the Review of the Interim Financial
Statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
Our firm carries out other assignments for Spark New Zealand Limited in relation to the regulatory
audit, other assurance related services (such as trustee reporting), taxation advisory and compliance
services and non-assurance services provided to the Corporate Taxpayer Group. These services have
not impaired our independence as auditor of the Group. In addition to this, the Chief Executive has
both a sister and brother-in-law that are partners at Deloitte. These Deloitte partners are not involved
in the provision of any services to the Group and its subsidiaries and this matter has not impacted
our independence. Also, partners and employees of our firm deal with Group on normal terms
within the ordinary course of trading activities of the business of the Group. The firm has no other
relationship with, or interest in the Group.
Directors’ responsibilities for the interim financial statements
The directors are responsible on behalf of the Company for the preparation and fair presentation of
the interim financial statements in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34
Interim Financial Reporting and for such internal control as the directors determine is necessary to
enable the preparation and fair presentation of the interim financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements, taken as a whole, are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim
Financial Reporting.
Page 18
Spark New ZealandInterim financial statements

A review of the interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily
of persons responsible for financial and accounting matters, and applying analytical and other
review procedures. 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) and consequently do not enable us to obtain assurance that we might identify in an audit.
Accordingly, we do not express an audit opinion on the interim financial statements.
Restriction on use
This report is made solely to the Company’s shareholders, as a body. Our review has been
undertaken so that we might state to the Company’s shareholders those matters we are required to
state to them in a 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 Company’s shareholders as a body,
for our engagement, for this report, or for the conclusions we have formed.
Jason Stachurski, Partner
for Deloitte Limited
Auckland, New Zealand
23 February 2022
Page 19
Spark New ZealandInterim financial statements

Contact details
Registered office
Level 2
Spark City
167 Victoria Street West
Auckland 1010
New Zealand
Ph +64 4 471 1638 or 0800 108 010
Company secretary
Silvana Roest
New Zealand registry
Link Market Services Limited
Level 30, PWC Tower
PO Box 91976
15 Customs Street West
Auckland 1142
Ph +64 9 375 5998 (investor enquiries)
Fax +64 9 375 5990
enquiries@linkmarketservices.com
www.linkmarketservices.co.nz
Australian registry
Link Market Services Limited
Level 12
680 George Street
Sydney NSW 2000
Australia
Locked Bag A14
Sydney South NSW 1235
Australia
Ph +61 1300 554 484 (investor enquiries)
Fax +61 2 9287 0303
registrars@linkmarketservices.com.au
www.linkmarketservices.com.au
Spark New Zealand Limited
ARBN 050 611 277
United States registry
Computershare Investor Services
P.O. Box 505000
Louisville, KY 40233-5000
United States of America
Ph +1 888 BNY ADRS (+1 888 269 2377)
or +1 201 680 6825 (from outside the
United States)
shrrelations@cpushareownerservices.com
www.mybnymdr.com
For more information
For inquiries about Spark’s operating and
financial performance contact:
investor-info@spark.co.nz
Investor Relations
Spark New Zealand Limited
Private Bag 92028
Auckland 1142
New Zealand
investors.sparknz.co.nz
insight
creative.co.nz
SPARK062 02/22
Page 20
Spark New ZealandInterim financial statements

investors.sparknz.co.nz
ARBN 050 611 277

---

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





Results for announcement to the market
Name of issuer Spark New Zealand Limited
Reporting Period 6 months to 31 December 2021
Previous Reporting Period 6 months to 31 December 2020
Currency NZD - New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
NZD$1,890,000 5.2%
Total Revenue NZD$1,890,000 5.2%
Net profit/(loss) from
continuing operations
NZD$179,000 21.8%
Total net profit/(loss) NZD$179,000 21.8%
Interim/Final Dividend
Amount per Quoted Equity
Security
NZD$0.12500000 (comprised only of an ordinary dividend)
Imputed amount per Quoted
Equity Security
NZD$0.04861111
Record Date 25 March 2022
Dividend Payment Date 8 April 2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
As at 31 December 2021:
NZD$0.33
As at 31 December 2020:
NZD$0.29
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Movements from the prior period are compared to restated
amounts for H1 FY21 following:
- the reassessment of useful lives of reacquired rights and
the reclassification of work in progress, as reported at 30
June 2021; and
- Spark’s change in accounting policy in relation to
configuration and customisation costs incurred in
implementing Software as a Service (‘SaaS’) cloud
computing arrangements. This was in response to the
International Financial Reporting Standards
Interpretations Committee (‘IFRIC’) agenda decision,
issued in April 2021.
Changes in Spark’s earnings before finance income and
expense, income tax, depreciation, amortisation and net
investment income (EBITDAI) are provided in the addendum.
Authority for this announcement

Name of person

authorised
to make this announcement
Stefan Knight, Finance Director (CFO)
Contact person for this
announcement
Chante Mueller, Head of Investor Relations
Contact phone number +64 (0) 27 469 3062
Contact email address investor-info@spark.co.nz
Date of release through MAP

23 February 2022

Unaudited financial statements accompany this announcement.



Addendum:

Amount (000s) Percentage
change
Reported earnings before finance income and expense,
income tax, depreciation, amortisation and net investment
income (Reported EBITDAI)
NZD$538,000 7.6%

---

Distribution Notice







Section 1: Issuer information
Name of issuer Spark New Zealand Limited
Financial product name/description Ordinary shares
NZX ticker code SPK
ISIN (If unknown, check on NZX
website)
NZ TELE0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies Yes
Record date 25 March 2022
Ex-Date (one business day before the
Record Date)
24 March 2022
Payment date (and allotment date for
DRP)
8 April 2022 AUST & NZ;
18 April 2022 USA
Total monies associated with the
distribution
NZD$233,677,933
(1,869,423,460 shares @ $0.125 per share)
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD - New Zealand Dollar
Section 2: Distribution amounts per financial product
Gross distribution NZD$0.17361111
Gross taxable amount NZD$0.17361111
Total cash distribution NZD$0.12500000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount NZD$0.02205882
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
NZD$0.04861111

Resident Withholding Tax per
financial product
NZD$0.00868056
Section 4: Distribution re-investment plan
DRP % discount (if any)
0%
Start date and end date for
determining market price for DRP
24 March 2022

30 March 2022

Date strike price to be announced (if
not available at this time)
31 March 2022
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New Issue
DRP strike price per financial product

Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
28 March 2022
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Stefan Knight, Finance Director (CFO)
Contact person for this
announcement
Chante Mueller, Head of Investor Relations
Contact phone number +64 (0) 27 469 3062
Contact email address investor-info@spark.co.nz
Date of release through MAP

23 February 2022

---

SPARK
PAGE
2
Results overview

SPARK
PAGE
3
H1 FY22 Results Summary
•Strong first half performance with revenue, EBITDAI, and NPAT in growth.
•Standout performance in mobile, with Endless plans and precision marketing delivering the highest connection growth in the market
(1)
, and
increasing consumer demand for data driving ARPU growth.
•Successful launch of simplified broadband plans stabilising base at 702k connections, while wireless broadband (WBB) growth maintained
gross margins. Refreshed WBB plans launched into market in H2 to maintain momentum behind wireless strategy.
•Accelerated 5G rollout progressing to plan, with10additional locations supporting future growth in mobile and WBB.Government
agreement with Māori on spectrum allocation to pave the way for C-band spectrum auction.
•Cloudgrowthdriven bydemand for public cloud, and growthin thehealth sector.Servicemanagementgrowth trajectoryimpacted by
access toclient sites, however pipeline remains strong.
•Momentum building in Future Markets in support of long-term growth. Strong revenue growth in the half across Spark Health, SparkSport,
and Spark IoT.
•Material upgrade of Mayoral Drive exchange and construction of new data hall at Takanini Datacentre underway with up to 8MW of capacity
already contracted.Multi-year investment supporting future cloud growth and development of multi-access edge compute capability.
•Establishment of Spark TowerCoto drive improved performance, utilisation, and capital efficiency of Spark’s passive mobile assets,
including ~1,500
(2)
mobile sites. Intend to commence a process in the second half to explore the introduction of third-party capital.
•Continued improvement of ESG performance and progress on inclusivity –Skinny Jump connections up more than 5k, ethnicity
datacapture among our people up 12pp, and Beyond Binary Code launched since conclusion of the half.
•Confirmed total FY22 dividend guidance of 25.0cps (100% imputed), supported by first half free cash flow of $183m.
(1)
Market share estimates sourced from IDC
(2)
Approximately 250 sites relate to outbound co-location on third party owned infrastructure (e.g. Rural Broadband Initiative (RBI) 1 sites)

SPARK
PAGE
4
H1 FY22 Financial Snapshot
EBITDAI
(2)
$538m
REVENUE
(1)
$1,890m
NPAT
$179m
5.2% increase vs. H1 FY21
Total FY22 Dividend Guidance
confirmed at 25.0cps
12.5c
H1FY22 DIVIDEND
(1)
Operating revenues and other gains
(2)
Earnings before finance income and expense, income tax, depreciation, amortisation and net investment income (EBITDAI) is a non-Generally Accepted Accounting Practice performance measure that is defined and reconciled to net earnings
in Spark New Zealand’s interim Financial Statements
(3)
Adjusted for the impact of cloud accounting standards change
CAPEX
$218m
FREE CASH FLOW
$183m
7.6% increase vs. H1 FY21
(3)
21.8% increase vs. H1 FY21
(3)
14.7% increase vs. H1 FY21
(3)
61.9% increase vs. H1 FY21
(3)
Focussed execution against 2023 strategy driving growth and strong operational and financial performance

SPARK
PAGE
5
H1 FY22 Established Market Performance
$324m
BROADBAND
REVENUE
$441m
MOBILE SERVICE
REVENUE
$224m
CLOUD, SECURITY, &
SERVICE MANAGEMENT
(1)
Market share estimates sourced from IDC. Broadband market share estimate by revenue and connections
(2)
Spark’s estimate based on independent market share data
(3)
Collaboration revenues reported in managed data, network and services
#1 Mobile Service Revenue
(1)
#1 Broadband
(1)
#1 Hybrid Cloud
(2)
5.0% increase vs. H1 FY21
(3.9%) decrease vs. H1 FY21
3.2% increase vs. H1 FY21
Successful launch of simplified broadband plans
resulting in stabilisation of base, closing the half at
702kconnections
Gross margin maintained as benefits of wireless
broadband growth offset higher fibre input costs
Revenue impacted by competitive market
pressures
Fastest growing NZ mobile provider by
connections and revenues
(1)
Growth in ARPU underpinned by customer
demand for data with 48% YoY growth in
Endless plans
Gross margin expansion of (2pp) due to strong
YoY growth in service revenue and focus on
product cost efficiencies through simplification
Growth momentum in service management
expected to increase in H2 with delayed
transformation projects recommencing and
strength of pipeline
Public cloud growth continues driven by strong
customer demand.Private cloud growth in
health sector being offset by portfolio re-price
Demand for collaboration products and services
in support of flexible working continues to
increase, with revenue up $5m or 15.2% YoY
(3)

SPARK
PAGE
6
Strategy update

SPARK
Core capabilities fuelling growth in established and future markets while delivering clear customer, financial, and operational benefits
PAGE
7
Strategic Update: World Class Capabilities and Culture
(1)
Aspiration represents FY23 in year revenues and cost efficiencies
Revenue aspirations and cost efficiencies reflect the gross benefits of executing the 3-year strategy. However, total revenues will be impacted by market pressures, revenue declines in
legacy products and cost-in to support growth, also some cost efficiencies may be re-invested. Therefore not all the value created will be captured by shareholders
FY23 Aspiration
Revenue
(1)
FY23 Aspiration
Cost efficiencies
(1)
FY23 Aspirations
Operational
H1 FY22 Highlights
Simple
Intuitive
Customer
Experiences
~$30m-$40m
On Track
~$40m-$50m
Solid Progress
On Track
•Digital interface pilot allowing frontline team and customers to interact using the same journeys -
improving speed of resolution and customer experience
•Simplification programme continues with removal of a further 38 legacy mobile and broadband
plans and 66k customers migrated onto new ‘right sized’ plans in the half
•In-App home WiFiand broadband checker capability now live with over 17k customers using
self-diagnosis tool
Deep
Customer
Insights
On Track
•Increased coverage of household view to ~88% of New Zealand households - improving our
ability to understand and serve the needs of Kiwis
•29 machine learning models, enabling highly targeted marketing campaigns resulting in a 16%
uplift in precision marketing conversion
•Return on marketing investment continues with YoY improvement in marketing efficiency of 16%
Smart
Automated
Network
~$55m-$65m
Solid Progress
On Track
•Accelerated 5G rollout progressing with 10 additional locations and on track to upgrade ~50% of
sites nationally by the end of calendar year 2022
•Optical Transport Network 2.0 project now over 50% complete, supporting pathway towards
unconstrained core network capacity
•Accelerating copper PSTN decommissioning –targeting ~50 switches by end of FY22 and
reducing reliance on grandfathered technology
Growth
Mindsets
On Track
•Highest people engagement achieved during half
•Leadership and development programmefosteringinnovation and growth mindsets capabilities
across the business
•Increase in ethnicity data collection to support targeted initiatives to improve ethnic
representation
•Launched Mahi TahiWellbeing Framework to support our people and productivity
•Developed TeAoMāori learning modules to uplift Tikanga Māori capability internally

SPARK
PAGE
8
Strategic Update: Future Markets
IoT
Digital
Health
Sport
•H1 Revenue grew:despite sporting calendar being significantly impacted by COVID-19. Now entering second summer of
cricket delivery
•Future revenue growth: likely to be slower than originally expected.Considering impact of loss of Premier League
•Partnerships: accelerating strategic partnering options to drive improved returns
•IoT revenue and connection growth: strong growth across metering, transport, emergency services, smart environments, and
asset management, ending half with YoY connection growth of 31% to 623k connections
•Enhanced Spark’s IoT bridge platform for smart environments monitoring: including temperature, humidity, occupancy
and power usage, with key trial customer fully onboarded and additional customers contracted
•Sector product development: full partner re-seller model launched with Adroit in water, soil, and air quality solutions – now
one of Spark IoT's fastest growing IoT solutions
•Strong Spark Health revenue growth: up 51% YoY (25% exclprocurement), driven by continued growth in cloud and health
customers who are digitally transforming and COVID-19 Response
•Introduced Digital Health Platform ‘Kete Waiora’: via national virtual roadshow, and one of New Zealand’s largest primary
health organisations completing proof of concept assessment.Focus on onboarding vendors and customers by end of FY22
•Supporting the digitisation of healthcare in Aotearoa: Spark Health won the first national contract for digital services under
the newly established Health New Zealand, and MATTR supported the Ministry of Health’s creation of the domestic My Vaccine
Pass, the international vaccination certificates, and the software supporting the Verification App
Momentum building in support of long-term growth –on track for overall FY23 revenue aspirations

SPARK
PAGE
9
Strategic Update: Sustainability
Environment
•Following the Science-Based Target Initiative’s (SBTi) verification of Spark’s emissions reduction target,
thereduction requirementshave been embeddedinto Spark’s new electricitypurchasingagreement
•Published independently assured Greenhouse Gas Inventory Report and are now designing
andimplementing an emissions reduction and energy efficiencyplan
Social
•Continued to bridge the digital divide, connecting an additional ~5khouseholds to Skinny Jump –
with a total of ~20k households now benefiting from subsidised broadband
•Continue to champion inclusivity within Spark and Aotearoa.Have increased internal ethnicity data
capture(up 12pp to date)to support ethnic diversity initiatives, and this weeklaunched the Beyond
Binary Code –a free tool that can be used by businesses to improve gender representation and data
collection online and create more inclusive spaces for all New Zealanders
Governance
•In November established Spark’s inaugural Sustainability Linked Loans (SLL) by refinancing
threeexisting loans totalling NZ$425 million. The SLL’s are tied to progress against Spark’s emissions
reduction target and 40:40:20 genderdiversity target
•A key focus in FY22 is strengthening supply chain risk managementprocesses and aligning
assessment and audit processes with globalindustry peers
•In the process of formalising Spark’s commitment to upholdinghuman rights with thedevelopment
of a Human Rights Policy and willpublish aModern Slavery Framework in Spark’sFY22Modern
Slavery Statement, to provide further transparency over how these risks are managed within the
supply chain

SPARK
PAGE
10
FY22 indicators of success
Strategic PillarFocus AreaMeasureTarget 30 June 2022Status
World class capability
Customer experienceConsumer and small business iNPS+6 point liftOn Track
Data driven insightsUplift in data driven marketing campaign conversion
(1)
15%On Track
Smart automated
networks
Accelerate 5G10-15 locations
(2)
Exceeding
Growth mindsetseNPS+70Exceeding
Grow established markets
WirelessMobile service revenue growth2-4%Exceeding
BroadbandWireless broadband connections+15-20kOn Track
CloudCloud, security and service management revenue growth5-8%Improvement Needed
Accelerate future markets
IoTGrowth in number of connected IoT devices+300kOn Track
Spark Health
Growth in Spark Health revenues8-10%
Exceeding
Successful launch of Digital Health Platform
5 DHP customers onboardedImprovement Needed
Lowest cost providerDeliver best costEBITDAI margin31%On Track
Build a sustainable future
Championing digital
equity
Skinny Jump connections+5kOn Track
Sustainable SparkEstablish emissions reduction programme30 June 2022On Track
(1)
Spark consumer base
(2 )
This includes a mix of new locations and existing locations where our 5G footprint will be expanded

SPARK
PAGE
11
Infrastructure Assets –
Portfolio Management

SPARK
PAGE
12
Infrastructure asset portfolio update
Investments progressing against three classes of infrastructure assets identified in FY21.
Critical network investments that will support future growth in mobile, WBB, and cloud:
•Accelerated 5G rollout: progressing to plan, with ~50% sites to be upgraded by end 2022
•Takanini Datacentre capacity expansion:up to 8MW now contracted and new data hall construction underway
•Mayoral Drive Exchange upgrade: commenced to create a strategically valuable point of interconnect and
develop multi-access edge compute capability
Investing in international capacity to keep NZ connected to the world:
•SX Next build project: on track despite COVID-19 disruption with go live scheduled mid-2022, triggering Southern
Cross’ customer billing and revenue stream. Final equity contributions expected to be paid in April 2022
•Southern Cross dividends: remain suspended and are not expected to resume until at least FY23
Plan to establish Spark TowerCo as a subsidiary company, to improve the performance, utilisation, and capital
efficiency of Spark’s passive mobile assets

SPARK
PAGE
13
Spark TowerCo – Strategic review update
STRATEGIC REVIEW UPDATE
•Spark plans to transfer its passive mobile tower assets into a separate subsidiary, Spark TowerCo
•Spark’s active mobile assets drive competitiveness – including the core network and radio equipment. Passive mobile assets include
the physical towers that support thisactiveequipment, and are generally not a source of differentiation in the market
•Separating these assets into a subsidiary model will improve this utilisation through increased tenancy, while delivering cost
efficiencies as Spark expands coverage across Aotearoa
•There will be no change for our customers, and we will continue to invest in modernising our mobile network and improving
coverage for Aotearoa
EXPLORING THE INTRODUCTION OF THIRD PARTY CAPITAL
•Spark intends to commence a process in H2 FY22 to explore the introduction of third party capital into Spark TowerCo
•If third party capital is introduced, Spark intends to retain a shareholding and will be a key anchor tenant, with appropriate
agreements in place on arms-length terms for operations and services
•No decision has been made to introduce third party capital and there is no certainty that a transaction will proceed. The process is
expected to take a number of months and we will update the market at the conclusion of this process

SPARK
Spark TowerCo – Business snapshot
SPARK TOWERCO ASSET SCOPE
•Spark TowerCowill:
oManagea significant portfolio of critical infrastructure assets, and own
the passive infrastructure associated with ~1,250of these sites
oProvidepassive equipment facilities such as power and will hold some
freeholdproperty sites
oDelivera significant build-to-suit (“BTS”) program for Spark to support
its network expansion and densification requirements – with demand
for data and expanding WBB base expected to drive tower growth
SPARK TOWERCO KEY HIGHLIGHTS
•Well positioned to:
oImprove asset utilisation through, coverage expansion, future service
innovation and increased tenancy
oAchieve efficiencies in build, maintenance, technology, and lease costs
oSupport Spark’s network densification objectives driven by increasing
mobile data use and Spark’s wireless broadband objectives
oMaintain safety and reliability of tower assets
SPARK TOWERCO ASSET STRUCTURE
Power
(incl. battery)
PAGE
14
(1)
Approximately 250 sites relate to outbound co-location on third party owned infrastructure (e.g. Rural Broadband Initiative (RBI) 1 sites)
53% urban
15% regional
32% rural
Land rights and
selected freehold sites
~70% macro towers~15% on buildings~15% on light poles
~1,500
(1)
mobile sites with a tenancy ratio of 1.07

SPARK
PAGE
15
Summary
Benefits of three-year strategy flowing through to better customer
outcomes and market differentiation
Future markets making a significant contribution to overall revenue growth
Strategic infrastructure investments supporting future growth, while
Spark TowerCo will improve utilisation and efficiency of passive mobile
Growth underpinned by long-term focus on ESG outcomes and building a
high-performance culture
Strong momentum in established markets

SPARK
PAGE
16
Financials

SPARK
PAGE
17
H1 FY22 Financial Performance Summary
Revenue, EBTIDAI and NPAT in growth generating free cash flow to support sustainable dividend
REVENUE
GROWTH
$94m
EBITDAI
GROWTH
$38m
NPAT
GROWTH
$32m
OPEX
GROWTH
$56m
Top line revenue of $1,890m in growth driven by:
•market leading
(2)
performance in mobile
service revenue;
•high procurement software licencing volumes;
and
•momentum in future markets
Revenue growth includes cycling of non-recurring
wire maintenance reparation reported in H1 FY21
Operating expenses of $1,352 up 4.3% YoY, with
benefits of cost out reinvested in support of
growth
Reported EBTIDAI of $538m up 7.6% YoY and
tracking around the top half of guidance range
NPAT improved 21.8% as a result of:
•reduction in finance expense due to lower debt
and lease liability interest;
•lower depreciation due to an increase in value of
assets that were fully depreciated in FY21;
partially offset by
•Increase in tax expense in line with earnings
growth
FREE CASH FLOW
(1)
GROWTH
$70m
12.5c
H1 FY22
DIVIDEND
Delivered free cash flow of $183m with cash
conversion of 110%
Reported net debt to EBITDAI ratio within Spark’s
internal threshold of 1.4x
Total FY22 dividend of 25.0cps confirmed in line
with guidance
The Dividend Reinvestment Plan (DRP) has been
retained with the H1 FY22 dividend at a zero
discount
(3)
5.2% increase vs. H1 FY21
4.3% increase vs. H1 FY21
(1)
7.6% increase vs. H1 FY21
(1)
21.8% increase vs. H1 FY21
(1)
H1 FY22 Free Cash Flow $183m
H1 FY22 dividend 100%
imputed
(1)
Adjusted for the impact of cloud accounting standards change
(2)
Market share estimates sourced from IDC
(3)
Dividend Reinvestment Plan (DRP) has been retained for the H1 FY22 dividend. Shares issued under the DRP will be issued at prevailing market price as determined around the time of issue(2)

SPARK
PAGE
18
Financials
H1 FY21
(1)
$m
H1 FY22
$m
CHANGE
Operating revenues and other gains1,7961,8905.2%
Operating expenses(1,296)(1,352)4.3%
EBITDAI5005387.6%
Finance income1714(17.6%)
Finance expense(43)(37)14.0%
Depreciation and amortisation(262)(257)1.9%
Net investment income-(1)NM
Net earnings before tax expense21225721.2%
Tax expense(65)(78)(20.0%)
Net earnings after tax expense14717921.8%
Capital expenditure
(2)
190218
Free cash flow113183
EBITDAI margin27.8%28.5%
Effective tax rate30.7%30.4%
Capital expenditure to operating revenues10.6%11.5%
Earnings per Share8.09.6
Total Dividend per Share12.5c12.5c
(1)
Adjusted for the impact of cloud accounting standards change
(2)
Excluding expenditure on mobile spectrum

SPARK
PAGE
19
EBITDAI
$538m
REVENUE
$1,890m
OPERATING EXPENSES
$1,352m
H1 FY22 Operational Performance Summary
5.2% increase vs. H1 FY21
(1)
4.3% increase vs. H1 FY21
(1)
7.6% increase vs. H1 FY21
(1)
•Secured ~60% of total market mobile service
revenue growth
(2)
, up $21m or 5.0% YoY
•Total cloud, security and service management
growth of $7m or 3.2% with cloud growth
reflecting ongoing shift towards public
cloud.Service management growth impacted by
site access restrictions due to COVID-19
•Strong growth in procurement revenue primarily
driven by national health software licence contract
•Growth in other operating revenue includes Spark
Sport, Spark IoT and Qrious
•Broadband revenue decline due to competitive
market intensity with refreshed plans stabilising
connection base; and
•Lower rate of voice revenue decline due to non-
recurring H1 FY21 wire maintenance charges
(underlying decline of ~15% in line with previous
trends)
•Operating expenses up YoY, however, excluding
procurement are broadly flat
•Disciplined focus on cost-out continues with gross
cost out benefits reinvested in support of scaling
future market businesses
•Increase in product costs driven by higher
procurement volumes and growth in cloud and
collaboration
•Reduction in other operating expenses driven by
precision marketing savings partially offset by a
return to normal levels of bad debt expense due to
COVID-19 provision reversal in prior year
•Increase in net labour costs due to investment in
future market businesses and talent scarcity
•Targeting further cost reductions in H2 to provide
flexibility and optionality
Solid first half financial performance –tracking around the top half of FY22 guidance
•EBITDAI up $38m or 7.6% YoY reflecting targeted
return to revenue growth
•Prior period includes $17m of non-recurring wire
maintenance reparations.Other one off items are
broadly consistent across the periods
•During H2 there will continue to be reinvestment
in support of revenue growth
•EBITDAI margin of 28.5% and on track to achieve
annual aspiration of 31%
(1)
Adjusted for the impact of cloud accounting standards change
(2)
Market share estimates sourced from IDC

SPARK
PAGE
20
•Free cash flow up $70m YoY driven by improvement in working capital, EBITDAI growth and lower tax
•Improvement in working capital includes:
•timing of software license payments with revenue collected in H1 FY22 and payment due in H2 FY22; and offset by
•additional inventory and prepayments to mitigate against supply chain disruption
•H2 FY22 free cash flow growth expected to be driven by EBITDAI growthand capital expenditure in line with plan
•On track to achieve FY22 free cash flow aspiration of $420m-$460m sufficient to fund FY22 dividend of 25.0cps
•Phasing of capital investment in line with prior year with 55% of spend incurred in H1 FY22
•Uplift in mobile RAN investment in support of accelerated 5G rollout
•Increased investment in IT systems in support of:
•Spark ERP system replacement;
•End of life IT infrastructure refresh; and
•Deep customer insight capability to unlock further data driven marketing opportunities
•Prioritised capital investment plan in line with guidance of ~$400m
CAPEX
(1)
$218m
14.7% increase vs. H1 FY21
(2)
H1 FY22 Capital investment and free cash flow
FREE
CASH FLOW
$183m
61.9% increase vs. H1 FY21
(2)
(1)
Excluding expenditure on mobile spectrum
(2)
Adjusted for the impact of cloud accounting standards change

SPARK
PAGE
21
•Reported net debt to EBITDAI ratio of 1.2x
(1)
consistent with
S&P A- credit rating
•Sufficient debt headroom to execute strategy and fund
strategic investments
•Established three Sustainability-Linked Loans totalling
NZ$425 million in the half further demonstrating
commitment to sustainability
Net Debt
(1)
Spark’s internal capital management policy is to ensure that on a long-run basis reported net debt to EBITDAI does not exceed 1.4x; which Spark estimates is approximately equivalent to S&P’s 1.7x adjusted net debt to EBITDA threshold Spark’s
internal threshold of 1.4x excludes S&P’s adjustments in relation to IFRS16, and captive finance operations
Reported net debt up $77m, including long-term investments in SX Next and rural connectivity
1,303
1,380
225
39
(183)
(3)
(1)
900
1,000
1,100
1,200
1,300
1,400
1,500
Net debt as at 30
June 2021
Free cash flowDividends paidBusiness
acquisitions and
minority
investments
Proceeds from
asset and
business sales
Other
movements
Net debt as at 31
December 2021
Movement in net debt during H1 FY22 ($m)

SPARK
PAGE
22
Guidance
(1)
FY21 Actual
(2)
FY22 Guidance
EBITDAI$1,119m
$1,130m-$1,160m
Expected to be around top half of range
Capital expenditure
(3)
$349m~$400m
Dividend per share
Total 25.0cps
(100% imputed)
Total 25.0cps
(4)
(100% imputed)
(1)
Subject to no adverse change in operating outlook
(2)
Adjusted for the impact of cloud accounting standards change
(3)
Excluding expenditure on mobile spectrum
(4)
Dividend Reinvestment Plan (DRP) has been retained for the H1 FY22 dividend. Shares issued under the DRP will be issued at prevailing market price as determined around the time of issue

SPARK
PAGE
23
REPORTING
DATECHANGE
FY22 Results
Wednesday 24 August 2022
10.00am

SPARK
PAGE
24
Appendix
Cloud accounting standards changes

SPARK
PAGE
25
Cloud Accounting Standards Changes
Adjustments
H1 FY20H2 FY20H1 FY21H2 FY21FY20FY21
$m$m$m$m$m$m
Operating revenues and other gains
Operating expenses(3)(3)(2)(3)
(6)(5)
EBITDAI(3)(3)(2)(3)(6)(5)
Finance income
Finance expense
Depreciation and amortisation expense1-11
12
Net investment income
Net earnings before income tax(2)(3)(1)(2)(5)(3)
Tax expense-1--
1-
Net earnings for the period(2)(2)(1)(2)(4)(3)
Implementation of the IFRS interpretations Committee (IFRIC) agenda decision
During the six months ended 31 December 2021, Spark revised its accounting policy in relation to configuration and customisationcosts incurred in
implementing Software-as-a-Service (‘SaaS’) cloud computing arrangements. This was in response to the IFRIC agenda decision, issued in April 2021, clarifying
its interpretation of how current accounting standards apply to these types of arrangements. The IFRIC decision clarified that because SaaS arrangements are
service contracts that provide Spark with the right to access the cloud provider’s application software over the contract period, costs to configure or customise
this software should be recognised as operating expenses when the services are received.
Spark had previously recorded these configuration and customisation costs as part of the cost of an intangible asset and amortised these costs over the useful
life of the software assets. A summary of the impact of the change in accounting policy on Spark’s historical statement of profit or losses provided below.
Further detail is provided in note 3of the interim financial statements.

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

---

Spark New Zealand
Group result - reported
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
Operating revenues and other gains1,8241,7991,7961,7971,8901,7961,890945.2%
Operating expenses(1,327)(1,189)(1,296)(1,178)(1,352)(1,296)(1,352)(56)(4.3%)
EBITDAI497610500619538500538387.6%
Finance income18181717141714(3)(17.6%)
Finance expense(46)(48)(43)(38)(37)(43)(37)614.0%
Depreciation and amortisation expense(237)(250)(262)(259)(257)(262)(257)51.9%
Net investment income(1)2-(1)(1)-(1)(1)NM
Net earnings before income tax2313322123382572122574521.2%
Tax expense(69)(78)(65)(104)(78)(65)(78)(13)(20.0%)
Net earnings for the period1622541472341791471793221.8%
Capital expenditure2441241901592181902182814.7%
Free cash flows
503881133201831131837062.6%
Reported EBITDAI margin27.2%33.9%27.8%34.4%28.5%27.8%28.5%0.7%
Reported effective tax rate29.9%23.5%30.7%30.8%30.4%30.7%30.4%(0.3%)
Capital expenditure to operating revenues13.4%6.9%10.6%8.8%11.5%10.6%11.5%0.9%
Reported basic and diluted earnings per share (cents)8.813.98.012.59.68.09.61.620.0%
Gross margin by product
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
Mobile405424407430437
407437307.4%
Voice123119879386
8786(1)(1.1%)
Broadband175166166173166
166166--%
Cloud, security and service management173175179179176
179176(3)(1.7%)
Procurement and partners2025202326
2026630.0%
Managed data, network and services7068727365
7265(7)(9.7%)
Other product1533284233
2833517.9%
Total product gross margin9811,0109591,013989
959989303.1%
Other gains43142416
41612NM
Total gross margin9851,0419631,0371,005
9631,005424.4%
Connections
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
000's000's000's000's000's000's000's000's
%
Mobile connections
1
2,500 2,519 2,431 2,421 2,445 2,431 2,445 14 0.6%
Voice connections by type
2
POTS & ISDN288220197168140197140(57)(28.9%)
VoIP54616969696969--%
Voice over wireless26242324202320(3)(13.0%)
368305289261229289229(60)(20.8%)
Broadband connections
Copper211186157131113157113(44)(28.0%)
Fibre340367381395402381402215.5%
Wireless1411561651751871651872213.3%
692709703701702703702(1)(0.1%)
1
Mobile connections excluding MVNO connections but including legacy machine to machine and SIM based SmartWatch connections
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22
2
Voice connections include all voice technology types, including POTS, ISDN, VoIP and wireless voice. Voice connections exclude
connections where Spark also provide a bundled broadband service, but include all wholesale voice connections (including those where the
underlying customer has a bundled broadband service).

Spark New Zealand
Group FTE's
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22#
%
FTE permanent5,1194,9834,9614,8894,9214,9614,921(40)(0.8%)
FTE contractors 2001461211501901211906957.0%
Total FTE5,3195,1295,0825,0395,1115,0825,111290.6%
Dividends
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22$
%
Ordinary dividends (cents per share)12.5012.5012.5012.5012.5012.5012.50--%
Special dividends (cents per share)--------NM
12.5012.5012.5012.5012.5012.5012.50--%
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22

Spark New Zealand
Group operating revenues and other gains
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
Operating revenues
Mobile
Service revenue425423420432441420441215.0%
Non-service revenue22821223122823723123762.6%
653635651660678651678274.1%
Voice
Access95856267576257(5)(8.1%)
Calling79817167707170(1)(1.4%)
Other voice revenue23232120192119(2)(9.5%)
197189154154146154146(8)(5.2%)
Broadband345335337333324337324(13)(3.9%)
Cloud, security and service management20921121722622421722473.2%
Procurement and partners2072002361783012363016527.6%
Managed data, network and services134143140142140140140--%
Other operating revenue7555578061576147.0%
Total operating revenues1,8201,7681,7921,7731,8741,7921,874824.6%
Other gains4314241641612NM
Total operating revenues and other gains1,8241,7991,7961,7971,8901,7961,890945.2%
Operating revenues includes revenues from Consumer, Business, Wholesale and other customer segments.
Wireless broadband revenues and connections are included in broadband revenues and connections.
Operating revenues and other gains by customer segment
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
Operating revenues and other gains$m$m$m$m$m$m$m$m
%
Consumer825757769781788769788192.5%
Business9159279479121,0379471,037909.5%
Wholesale and other110142106132100106100(6)(5.7%)
Eliminations(26)(27)(26)(28)(35)(26)(35)(9)(34.6%)
1,8241,7991,7961,7971,8901,7961,890945.2%
Finance income
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
Finance income$m$m$m$m$m$m$m$m
%
Finance lease interest income7667666--%
Other interest income111211108118(3)(27.3%)
18181717141714(3)(17.6%)
Net investment income
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
Net investment income$m$m$m$m$m$m$m$m
%
Dividend income--------NM
Share of associates' and joint ventures' net losses(1)2-(1)(1)-(1)(1)NM
(1)2-(1)(1)-(1)(1)NM
Revenue classification changes
Product lineServices providedPrevious customer productCurrent customer product
Internet of Things (IoT)
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22
As part of the ongoing revision of the Agile business model, the management of certain customer segment lines have been reallocated from one
part of the business to another. The details of the key change and the associated impact on revenue reporting are as follows:
Reclassification of IoT products to algin
with business alike segments from
consumer. This exlcudes Wholesale IoT
Wholesale and other Business

Spark New Zealand
Group operating expenses
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
Product costs
Mobile248211244230241244241(3)(1.2%)
Voice74706761606760(7)(10.4%)
Broadband170169171160158171158(13)(7.6%)
Cloud, security and service management363638474838481026.3%
Procurement and partners1871752161552752162755927.3%
Managed data, network and services64756869756875710.3%
Other product costs60222938282928(1)(3.4%)
839758833760885833885526.2%
Labour26824525623726325626372.7%
Other operating expenses
Network support costs37324442444444--%
Computer costs4949515055515547.8%
Accommodation costs33303235303230(2)(6.3%)
Advertising, promotions and communication47314428344434(10)(22.7%)
Bad debts710(1)(6)3(1)34NM
Impairment expense-2-22-22NM
Other47323730363736(1)(2.7%)
220186207181204207204(3)(1.4%)
Total operating expenses1,3271,1891,2961,1781,3521,2961,352564.3%
Finance expense
Finance expense on debt2528212223212329.5%
Other interest and finance expense7564464(2)(33.3%)
Lease interest expense15161511101510(5)(33.3%)
Leased customer equipment interest expense3344343(1)(25.0%)
50524641404640(6)(13.0%)
Capitalised interest(4)(4)(3)(3)(3)(3)(3)--%
46484338374337(6)(14.0%)
Depreciation and amortisation expense
Depreciation - property, plant and equipment119114124118116124116(8)(6.5%)
Depreciation - right-of-use assets28363542403540514.3%
Depreciation - leased customer equipment assets15121917181918(1)(5.3%)
Amortisation of intangibles75888482838483(1)(1.2%)
237250262259257262257(5)(1.9%)
Expenses restatement
Further details can be found in Note 3 of Spark's interim financial statements for the six months ended 31 December 2021.
H1 FY21 v H1 FY22
Spark revised its accounting policy in relation to configuration and customisation costs incurred in implementing Software-as-a-Service ('SaaS') cloud
computing arrangements. This was in response to the IFRS Interpretations Committee ('IFRIC') agenda decision, issued in April 2021, clarifying its
interpretation of how current accounting standards apply to these types of arrangements. Details of the key change listed below:
Product linePrevious classification Current product
Configuration and customisation costs incurred in implementing Software-
as-a-Service ('SaaS') cloud computing arrangements
Capex (IT systems)Labour, Network support costs and Other
operating expenses

Spark New Zealand
Analysis & KPI's - Mobile
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
Mobile revenue by type (Consumer and Business)$m$m$m$m$m$m$m$m
%
Mobile service revenue421419415427435415435204.8%
Mobile non-service revenue
1
216 197 223 221 229 223 229 6 2.7%
637616638648664638664264.1%
1619131214131417.7%
Total mobile revenue653635651660678651678274.1%
Mobile product costs
3
(248) (211) (244) (230) (241) (244) (241) 3 1.2%
Mobile gross margin405424407430437407437307.4%
Mobile gross margin %62.0%66.8%62.5%65.2%64.5%62.5%64.5%2.0%
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
Total mobile revenue by customer segment$m$m$m$m$m$m$m$m
%
Consumer443419438441454438454163.7%
Business194197200207210200210105.0%
Wholesale and other1619131214131417.7%
653635651660678651678274.1%
Average revenue per user (ARPU) - 6 month active
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
Consumer and Business
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month
$ per
month %
Total ARPU28.4828.0528.5129.6630.1928.5130.191.68 5.9%
Pay-monthly ARPU42.8241.1939.9740.3140.1739.9740.170.20 0.5%
Prepaid ARPU13.2813.3714.3615.4216.2614.3616.261.89 13.2%
H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22 H1 FY21 H1 FY22
000's000's000's000's000's000's000's000's
%
Pay-monthly connections1,2871,3301,3551,3861,4161,3551,416614.5%
Prepaid connections1,1811,1611,0471,0081,0011,0471,001(46)(4.4%)
Internal connections4444444--%
Total mobile connections2,4722,4952,4062,3982,4212,4062,421150.6%
1
Mobile non-service revenue includes handset sales and mobile interconnect.
2
Includes MVNO revenue.
3
Includes handset, interconnect and cellphone tower access costs.
4
Excludes MVNO connections but includes SIM based SmartWatch connections.
H1 FY21 v H1 FY22
Wholesale and other customer segment mobile
revenue
2
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22
Number of mobile connections at period end - 6
month active - Consumer and Business
4
H1 FY21 v H1 FY22

Spark New Zealand
Analysis & KPI's - Voice
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
Revenue by type$m$m$m$m$m$m$m$m
%
Access95856267576257(5)(8.1%)
Calling79817167707170(1)(1.4%)
Other voice revenue23232120192119(2)(9.5%)
Total voice revenue197189154154146154146(8)(5.2%)
Voice product costs
1
(74) (70) (67) (61) (60) (67) (60)7 10.4%
Voice gross margin1231198793868786(1)(1.1%)
Voice gross margin %62.4%63.0%56.5%60.4%58.9%56.5%58.9%2.4%
H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22 H1 FY21 H1 FY22
000's000's000's000's000's000's000's000's
%
POTS and ISDN288220197168140197140(57)(28.9%)
VoIP54616969696969--%
Voice over wireless26242324202320(3)(13.0%)
Total voice connections
2
368 305 289 261 229 289 229 (60) (20.8%)
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
000's000's000's000's000's000's000's000's
%
Consumer93495860475847(11)(19.0%)
Business161157149138132149132(17)(11.4%)
Wholesale and other114998263508250(32)(39.0%)
Total voice connections
2
368 305 289 261 229 289 229 (60) (20.8%)
1
Includes voice access (baseband), interconnect, and international calling costs.
2
Excludes Cloud Telephony which has been moved to Managed Networks.
Analysis & KPI's - Broadband
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
Total broadband revenue345335337333324337324(13)(3.9%)
Broadband product costs
3
(170) (169) (171) (160) (158) (171) (158) 13 7.6%
Broadband gross margin175166166173166166166--%
Broadband gross margin %50.7%49.6%49.3%52.0%51.2%49.3%51.2%1.9%
H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22 H1 FY21 H1 FY22
000's000's000's000's000's000's000's000's
%
Copper211186157131113157113(44)(28.0%)
Fibre340367381395402381402215.5%
Wireless1411561651751871651872213.3%
Total broadband connections692709703701702703702(1)(0.1%)
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
000's000's000's000's000's000's000's000's
%
Consumer591605597592592597592(5)(0.8%)
Business10010310310510510310521.9%
Wholesale and other1134535266.7%
Total broadband connections692709703701702703702(1)(0.1%)
3
Includes broadband access (UBA/UCLL/Fibre), modem and e-mail platform support costs.
Connection classification changes
Connection line
Skinny JumpReclassification of Skinny Jump
connections to algin with business alike
segments from consumer
Wholesale and other Consumer
Broadband connections by technology
H1 FY21 v H1 FY22
Broadband connections by segment
H1 FY21 v H1 FY22
As part of the ongoing revision of the Agile business model, the management of certain customer segment lines have been reallocated from one
part of the business to another. The details of the key change and the associated impact on revenue reporting are as follows:
Services providedPrevious customer product Current customer product
H1 FY21 v H1 FY22
Voice connections by type
H1 FY21 v H1 FY22
Voice connections by customer
segment
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22

Spark New Zealand
Analysis & KPI's - Cloud, Security and Service Management
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
Cloud Revenue11111411311611911311965.3%
Security revenue18191920181918(1)(5.3%)
Service Management revenue8078859087858722.4%
Cloud, Security and Service management revenue20921121722622421722473.2%
Cloud, Security and Service management product costs(36)(36)(38)(47)(48)(38)(48)(10)26%
Cloud, Security and Service management gross margin173175179179176179176(3)(2%)
Cloud, Security and Service management gross margin %82.8%82.9%82.5%79.2%78.6%82.5%78.6%(3.9%)
Contribution margin (approximated) %
1
34.4% 39.3% 34.6% 38.5% 34.8% 34.6% 34.8% 0.2%
Cloud KPI'sH1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
Number of IaaS clients361347329336309329309(20)(6.1%)
Power usage efficiency for dedicated data-centre sites1.501.481.491.501.49(0.01)(0.7%)
Megawatt hours for combined data centre operations22,09122,87421,66422,09121,664(427)(1.9%)
Security KPI'sH1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
Number of security clients1,1911,1831,1531,1741,1101,1531,110(43)(3.7%)
Average monthly revenue per security client2,5192,6772,7462,8392,7032,7462,703(43)(1.6%)
Service management KPI'sH1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
Number of service management clients681730671772712671712416.1%
Average monthly revenue per service management client19,57917,80821,11319,43020,36521,11320,365(748)(3.5%)
Recalculation of megawatt hours for combined data centre operations
Analysis & KPI's - Procurement and Partners
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
Procurement and partners revenue2072002361783012363016527.6%
Procurement and partners product costs(187)(175)(216)(155)(275)(216)(275)(59)(27.3%)
Procurement and partners gross margin20252023262026630.0%
Procurement and partners gross margin %9.7%12.5%8.5%13.0%8.6%8.5%8.6%0.1%
Analysis & KPI's - Managed data, network and services
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
Collaboration30353335383338515.2%
Managed data and networks104108107107102107102(5)(4.7%)
Managed data, network and services revenue134143140142140140140--%
Managed data, network and services product costs
2
(64) (75) (68) (69) (75) (68) (75) (7) (10.3%)
Managed data, network and services gross margin70687273657265(7)(9.7%)
Managed data, network and services gross margin %52.2%47.6%51.4%51.4%46.4%51.4%46.4%(5.0%)
2
Includes wide area network access, international data, network backhaul and videoconferencing platform costs.
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22
1
Contribution margin is defined as reported gross margin less labour and other costs that are directly attributable to the implementation and ongoing support
of specific contract services.
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22
H1 FY21 v H1 FY22
The megawatt hours for combined data centre operations has been retrospectively updated following improvements in the caputring of all data centres
electricity use, including racks hosed in shared sites. The calculation also include total usage over the entire 6 month period.

Spark New Zealand
Statement of cash flows
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
Cash flows from operating activities
Cash received from customers 1,861 1,733 1,828 1,719 1,901
1,8281,901734.0%
Interest receipts 17 17 16 16 13
1613(3)(18.8%)
Dividend receipts - - - - -
---NM
Payments to suppliers and employees (1,399) (1,104) (1,321) (1,137) (1,327)
(1,321)(1,327)(6)(0.5%)
Payments for income tax (82) (58) (118) (70) (93)
(118)(93)2521.2%
Payments for interest on debt (26) (26) (23) (23) (23)
(23)(23)--%
Payments for interest on leases (14) (16) (16) (10) (10)
(16)(10)637.5%
Payments for interest on leased customer equipment
assets
(3) (3) (4) (4) (3)(4) (3) 1 25.0%
Net cash flows from operating activities 354 543 362 491 458
3624589626.5%
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 13 - - 6 -
---NM
Proceeds from sale of business - 23 8 22 -
8-(8)(100.0%)
Proceeds from long-term investments - - 6 3
-33NM
Receipts from finance leases 2 4 2 4 2
22--%
Payments for purchase of businesses (11) - - (25) -
---NM
Payments for, and advances to, long-term investments (30) (5) (4) (9) (39)
(4)(39)(35)NM
Payments for purchase of property, plant and
equipment, intangibles (excluding spectrum), and
capacity
(270) (117) (212) (118) (216) (212) (216) (4) (1.9%)
Payments for spectrum intangible assets - - - (51) -
--
-NM
Payments for capitalised interest (4) (4) (3) (3) (3)
(3)(3)
--%
Net cash flows from investing activities (300) (99) (209) (168) (253)
(209)(253)(44)(21.1%)
Cash flows from financing activities
Net proceeds from debt 207 (177) 100 (138) 99
10099(1)(1.0%)
Payments for dividends (229) (230) (167) (163) (225)
(167)(225)(58)(34.7%)
Payments for leases (19) (23) (20) (36) (33)
(20)(33)(13)(65.0%)
Payments for leased customer equipment assets (13) (15) (16) (18) (25)
(16)(25)
(9)(56.3%)
Receipts from loans receivable - - - 1 -
--
-NM
Net cash flows from financing activities (54) (445) (103) (354) (184)
(103)(184)(81)(78.6%)
Net cash flow - (1) 50 (31) 21
5021(29)(58.0%)
Opening cash position 54 54 53 103 72
53721935.8%
Closing cash position 54 53 103 72 93
10393(10)(9.7%)
H1 FY21 vs H1 FY22

Spark New Zealand
Analysis & KPIs - Free cash flows and movement in working capital
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
EBITDAI 497 610 500 619 538
500538387.6%
excluding
Impairments and Other Gains 4 29 4 22 14
41410NM
EBITDAI excluding impairments and other gains493 581 496 597 524
496524285.7%
excluding
Cash capital expenditure 274 121 215 121 219
21521941.9%
Interest paid 26 28 27 21 23
2723(4)(14.8%)
Tax payments 82 58 118 70 93
11893(25)(21.2%)
Lease payments 30 34 34 50 56
34562264.7%
Total Cash Capex, Interest, Tax, Lease payments412 241 394 262 391 394 391 (3) (0.8%)
Underlying Free Cash Flow81 340 102 335 133 102 133 31 30.4%
Change in
Receivables and related items (12) (57) 23 (46) 16
2316(7)(30.4%)
Inventory 41 (31) 11 23 29
112918NM
Payables and related items 2 40 (45) 38 (95)
(45)(95)(50)NM
Total Change in Working Capital31 (48) (11) 15 (50) (11) (50) (39) NM
Free Cash Flow50 388 113 320 183 113 183 70 61.9%
less
Spectrum - - - 51 -
---NM
Free Cash Flow Including Spectrum50 388 113 269 183 113 183 70 61.9%
Cash conversion94%108%102%97%110%102%110%8%
H1 FY21 vs H1 FY22

Spark New Zealand
Group capital expenditure
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
Cloud168911797(2)(22.2%)
Converged Communications Network (CCN)1171512111511
(4)(26.7%)
International cable construction and capacity purchases
-11181
11
--%
IT systems70536453876487
2335.9%
Mobile network92245848745874
1627.6%
Core sustain and resiliency50153422353435
12.9%
Other56953
93(6)(66.7%)
Total capital expenditure (Excl. Mobile Spectrum and
property, plant and equipment transfers from finance
lease receivables)
244 124 190 159 218 190 218 28 14.7%
Total capital expenditure (Excl. Mobile Spectrum and
property, plant and equipment transfers from finance
lease receivables) to operating revenue and other gains
13.4% 6.9% 10.6% 8.8% 11.5% 10.6% 11.5%
Mobile Spectrum---51-
---NM
Property, plant and equipment transfers from finance
lease receivables
- - - 3 81- 81 81 NM
Total capital expenditure (Incl. Mobile Spectrum and
property, plant and equipment transfers from finance
lease receivables)
244 124 190 213 299 190 299 109 57.4%
Total capital expenditure (Incl. Mobile Spectrum and
property, plant and equipment transfers from finance
lease receivables) to operating revenue and other gains
13.4% 6.9% 10.6% 11.9% 15.8% 10.6% 15.8%
Analysis & KPI's - Capital expenditure depreciation and amortisation
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H1 FY21H1 FY22
$m$m$m$m$m$m$m$m
%
Depreciation - property, plant and equipment119114124118116124116(8)(6.5%)
Depreciation - right-of-use assets
1
10 11 11 11 11
11 11 - -%
Amortisation of intangibles
75888482838483(1)(1.2%)
Total capital expenditure depreciation and amortisation
204213219211210219210(9)(4.1%)
1
Includes depreciation on capacity right-of-use assets only as these are included within Spark’s definition of capital expenditure.
Expenses restatement
Further details can be found in Note 3 of Spark's interim financial statements for the six months ended 31 December 2021.
Configuration and customisation costs incurred in implementing Software-as-
a-Service ('SaaS') cloud computing arrangements
Capex (IT systems)Labour, Network support costs and Other
operating expenses
H1 FY21 v H1 FY22
Capital expenditure is presented on an accruals basis, and includes purchase of property, plant and equipment and intangible assets, capacity
purchases (including Southern Cross) but excludes leased customer equipment assets.
On adoption of NZ IFRS 16 Leases, assets associated with capacity arrangements which were previously recognised within intangible assets have been
reclassified to right-of-use assets. Payments for capacity purchases remain within Spark’s definition of capital expenditure. Total depreciation on
property plant and equipment, depreciation on capacity right-of-use assets and amortisation of intangibles is reconciled below:
H1 FY21 v H1 FY22
Spark revised its accounting policy in relation to configuration and customisation costs incurred in implementing Software-as-a-Service ('SaaS') cloud
computing arrangements. This was in response to the IFRS Interpretations Committee ('IFRIC') agenda decision, issued in April 2021, clarifying its
interpretation of how current accounting standards apply to these types of arrangements. Details of the key change listed below:
Product linePrevious classification Current product