2022 Full Year results, annual and sustainability reports

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

Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

22 August 2022

Chorus 2022 full year results, annual report & sustainability report

The following are attached in relation to Chorus’ FY22 full year results:
1. Media Release
2. Investor Presentation
3. Annual Report (including audited financial statements)
4. NZX Financial Results Announcement
5. NZX Distribution Notice
6. Sustainability Report
7. Letter to investors

Chief Executive Officer JB Rousselot, and acting Chief Financial Officer Andrew Carroll,
will discuss the FY22 full year results by webcast at 10.00am New Zealand time today.
The webcast will be available at www.chorus.co.nz/webcast.

Authorised by:

Andrew Carroll
Chief Financial Officer (acting)

ENDS

For further information:

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

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

---

FY22 FULL YEAR RESULT
22 August 2022

22 August 2022
Disclaimer
This presentation:
• Is provided for general information purposes and does not constitute investment advice or an offer of or invitation to purchase Chorus
securities.
• Includes forward-looking statements. These statements are not guarantees or predictions of future performance. They involve known
and unknown risks, uncertainties and other factors, many of which are beyond Chorus’ control, and which may cause actual resultsto
differ materially from those contained in this presentation.
• Includes statements relating to past performance which should not be regarded as reliable indicators of future performance.
• Is current at the date of this presentation, unless otherwise stated. Except as required by law or the NZX Main Board and ASX listing
rules, Chorus is not under any obligation to update this presentation, whether as a result of new information, future events or otherwise.
• Should be read in conjunction with Chorus’ audited consolidated financial statements for the year to 30 June 2022 and NZX and ASX
market releases.
• Includes non-GAAP financial measures such as "EBITDA”. These measures do not have a standardised meaning prescribed by GAAP and
therefore may not be comparable to similar financial information presented by other entities. They should not be used in substitution for,
or isolation of, Chorus' audited consolidated financial statements. We monitor EBITDA as a key performance indicator and we believe it
assists investors in assessing the performance of the core operations of our business.
• Has been prepared with due care and attention. However, Chorus and its directors and employees accept no liability for any errors or
omissions.
• Contains information from third parties Chorus believes reliable. However, no representations or warranties (express or implied) are
made as to the accuracy or completeness of such information.
FY22 FULL YEAR RESULT
2

Agenda
>FY22 overview4
>Market trends 5-9
>Financial results and capex10-16
>Crown financing and debt17-18
>Dividend and FY23 guidance19-20
>Regulation 21-22
>Connecting Aotearoa23-24
>Strategic focus for FY2325-33
>Q&A
Appendices
▪A: Connections, market trends, pricing35-37
▪B: Sustainability metrics38
▪C: Additional financial information39-42
22 August 2022
JB Rousselot, CEO
Andrew Carroll,
Acting CFO
JB Rousselot, CEO
FY22 FULL YEAR RESULT
3

22 August 2022
FY22 FULL YEAR RESULT
4
FY22 results overview

5
69% uptake across UFB footprint (+4%)
>On track for 1 million connections by December, despite COVID
challenges
▪959,000total fibre connections (GPON + P2P); 88,000 added in FY22
▪919,000connections (including business premium) in UFB areas out of
1,324,000 customers able to connect (FY21: 837,000/1,282,000)
▪rollout 98% complete; ~17,000 premises to pass by end 2022
▪Auckland nearing 80% uptake; strong growth in Wellington
63
66
69
72
74
37
39
42
46
50
60
63
65
67
69
30
35
40
45
50
55
60
65
70
75
80
FY20HY21FY21HY22FY22
Chorus fibre uptake
(% uptake vs available addresses)
UFB1UFB2Total (average)
22 August 2022
FY22 FULL YEAR RESULT
50%
55%
60%
65%
70%
75%
80%
AucklandDunedinWellington
UFB uptake by city
Jun-21Sep-21Dec-21Mar-22Jun-22
student
holidays
▪Auckland, Wellington and Dunedin cover >70% of UFB1 homes and businesses able to connect
Uptake (%)

22 August 2022
FY22 FULL YEAR RESULT
6
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
FY19FY20FY21FY22
Managed migration: installations vs activations
Service activation: from copper
Service activation: from offnet
Fibre installations
>COVID constrained suburban programme in
FY22 with installations dropping from 61k to
43k
>focus shifted to promoting activation of pre-
installed fibre sockets:
▪~32k activations (FY21: 29k), including 16k
offnet activations (FY21:13k)
▪lifted activation rate within 12 months to ~59%
from ~56% (FY21)
Targeted migration programme lifts activations

22 August 2022
Connection changes by Zone (indicative as at 30 June)
* Includes planned Chorus UFB1, 2 and 2+ coverage
**Excludes 9k partly subsidised education connections and 12k fibre premium and data services (copper) connections
4
7
9
7
5
-3
-2
-2
-1
-1
-2
-2
-3
-3
-5
-8
-7
-6
-8
-10
-2
-1
-2
-1
-2
-2
-2
-2
-3
-2
-10-50510
Q4 FY22
Q3 FY22
Q2 FY22
Q1 FY22
Q4 FY21
Q4 FY22
Q3 FY22
Q2 FY22
Q1 FY22
Q4 FY21
Q4 FY22
Q3 FY22
Q2 FY22
Q1 FY22
Q4 FY21
Broadband connections
Copper (no broadband) connections
Quarterly change (’000s) by zone**
FY22 FULL YEAR RESULT
Other fibre
company (LFC)
zone
Broadband connections35,000Disconnections continue due to Local Fibre
Company and fixed wireless provider activity,
with some slowdown due to COVID-19 effects.
Copper line (no broadband)19,000
TOTAL54,000
Non-UFB zoneBroadband connections142,000Some expansion of wireless broadband footprint
through Government backed programme. New
housing outside of UFB zone driving fibre
premises growth.
Copper line (no broadband)29,000
TOTAL171,000
Chorus UFB zone*Broadband connections1,012,000Continued broadband growth driven by Chorus
incentives and migration campaigns. Copper
voice disconnections reflect migration to fibre
and targeted fixed wireless activities.
Copper line (no broadband)55,000
TOTAL1,067,000
7

▪fibre boost in December has seen 68% of residential connections graduate to 300Mbps plans
▪1Gbps uptake grew from 19 to 23% of residential connections, continues to make up ~30% of new adds
▪Hyperfibre2/4/8Gbps connections now ~1k
22 August 2022
FY22 FULL YEAR RESULT
>90% of mass market connections on 300Mbps+
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
June 2021June 2022
Business
1Gbps500Mbps300Mbps200Mbps100Mbps<100MbpsVoice
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
June 2021June 2022
Residential
1Gbps300Mbps200Mbps100Mbps50MbpsVoice
8
No. of connections
No. of connections

Total network traffic grew 23% in FY22
22 August 2022
FY22 FULL YEAR RESULT
9
▪peak time average grew to 3.3Tbps; Fortnitedrove record 4.2Tbps in March
▪total traffic grew 1.3 billion gigabytes to 7,140 petabytes
▪fibre users averaged 567GB in June, up from 500GB in June 2021

Financial performance
Andrew Carroll, Acting Chief Financial Officer
22 August 2022
FY22 FULL YEAR RESULT

Income statement
22 August 2022
FY22
$m
FY21
restated
$m
Operating revenue965955
Operating expenses(290)(298)
Earnings before interest, tax,
depreciation and amortisation (EBITDA)
675657
Depreciation and amortisation(427)(427)
Earnings before interest and income tax248230
Net finance expense(142)(152)
Net earnings before income tax10678
Income tax expense(42)(27)
Net earnings for the year6451
>average interest rate on debt reduced from 4.2%
to 3.8%
>gains from network optimisation programme
>careful cost management and release of holiday
pay provision mitigate COVID/inflation impacts
FY22 FULL YEAR RESULT
11
>underlying FY22 EBITDA $660m when allow for
$15m of one off gains (see next page)

22 August 2022
FY22 FULL YEAR RESULT
12
Underlying EBITDA & FY21 restatement
FY22
reported
$m
FY21
statutory
results
$m
Adjustment
$m
FY21
Restated
results
$m
Field services products7162+870
Total operating revenue965947+8955
EBITDA675649+8657
Holidays Act provision
Lease change
Legal settlement
(9)
(3)
(3)
UNDERLYING EBITDA660657

22 August 2022
FY22
$m
FY21
restated
$m
Fibre broadband (GPON)548477
Copper based broadband153203
Copper based voice5268
Fibre premium (P2P)6668
Field services7170
Value added network
services
2730
Infrastructure3027
Data services copper69
Other123
Total965955
copper revenues declining as customers migrate to Chorus fibre or
competing fibre/wireless networks
>growing fibre uptake and ARPU*: June FY22 $50.67 vs June FY21 $49.87
>direct fibre and backhaul growth helping offset legacy churn
Revenue
>ongoing reduction as customers transition to cheaper fibre services
FY22 FULL YEAR RESULT
13
*ARPU is total GPON revenue for the June month, divided by the average of May and June connections
>greenfieldsrevenue of$29m (FY21: $24m)
>change in accounting lease treatment for retailers’ use of Chorus buildings
>$3m legal settlement, $3m sale of surplus property, $3m change in lease
contract

>$9m holiday pay provision released; 2% reduction in staff numbers, but
lower capitalisation due to COVID
>fault volumes reduced with migration to fibre and COVID lockdown;
beginning to realise copper fixed cost savings –see page 41
>rates increases, ‘make good’ costs for corporate office changes
22 August 2022
FY22
$m
FY21
$m
Labour 6474
Network maintenance5963
IT5048
Other network costs2929
Rent, rates and property
maintenance
2824
Electricity1718
Regulatory levies98
Provisioning12
Consultants87
Insurance44
Other2121
Total290298
Expenses
>new levy for fibre regulation
FY22 FULL YEAR RESULT
14

>growing as fibre uptake increases and the asset ages
22 August 2022
FY22 gross capex $492m (FY21: $672m)
FibrecapexFY22
$m
FY21
$m
UFB communal77147
Fibre installations & layer 2195275
Fibre products & systems1214
Other fibre & growth7991
Network sustain1311
Customer retention costs2729
Subtotal403567
>UFB2 rollout winding down; 38,000 premises passed
>greenfields$54m (FY21: $47m) and West Coast fibre $15m (FY21:
$32m)
>reduced market activity due to COVID
>117,000 installations (FY21:172,000)
FY22 FULL YEAR RESULT
15
Fibre communal and installations capex reducing
▪Average cost per UFB1 premises connected: $1,015* vs $1,025 -$1,175 guidance
▪Average cost per UFB2 premises connected:$1,187*vs $1,150 -$1,300 guidance
* excludes layer 2 and includes standard installations, some non-standard single dwellings and service desk costs

22 August 2022
FY22 Capex: Copper and Common
CommoncapexFY22
$m
FY21
$m
Informationtechnology3146
Building& engineering services2014
Subtotal5160
CoppercapexFY22
$m
FY21
$m
Network sustain2729
Copperconnections11
Copper layer234
Customer retention costs711
Subtotal3845
FY22 FULL YEAR RESULT
16
>continuing to trend down as connections reduce
>shift to agile delivery; FY21 included large lifecycle
system development
>included office relocation costs
Sustaining capex $161m (FY21: $180m) see Appendix p40

>up to $1.33 billion CIP financing available
by 2023 (57:43 equity/debt)
>$1,254m drawn at 30 June 2022
>At 30 June, debt of $2,389m comprised:
▪Long term bank facilities of $350m ($190m drawn)
▪NZ bonds: $400m and $500m
▪Euro Medium Term Notes $1,299m (NZ$ equivalent at hedged rates)
NZ
$M
22 August 2022
200
500
200
785
514
85
90
137
174
16
30
35
0
100
200
300
400
500
600
700
800
CIP debt securities available
Face value of CIP debt securities issued
EUR EMTN
NZ Bond
Crown financing and debt profile
462462
306
24
81
U F B 1
E Q U I T Y
U F B 1 D E B TU F B 2 / 2 +
E Q U I T Y
U F B 2 / 2 +
D E B T
drawnundrawn
NZ
$M
FY22 FULL YEAR RESULT
17

22 August 2022
Net debt/EBITDA
As at
30 June 2022
$m
Borrowings2,389
+ PV of CIP debt
securities (senior)
225
+ Net leases payable187
Sub total2,801
-Cash88
Total net debt2,713
Net debt/EBITDA*4.08x
>ND/EBITDA reduced from 4.18x (FY21 restated) to 4.08x
▪leases reduced from $264m (FY21) due to change in third party lease
arrangements
▪ND/EBITDA calculation excludes release of $9m holiday pay provision
>ratings agency thresholds:
▪Moody’s5.25x
▪S&P5.0x
>the Board considers that a ‘BBB’ credit rating or equivalent is
appropriate for a company such as Chorus
▪intention that in normal circumstances the ratio of net debt to EBITDA
will not materially exceed 4.75x
▪financial covenants require senior debt ratio to be no greater than 5.5x
*Based on S&P and bank covenant methodologies
FY22 FULL YEAR RESULT
18

>FY22 final dividend
▪final dividend of21cps, unimputed
•record date: 13 September2022
•payment date: 11 October2022
•Dividend Reinvestment Plan (no discount) open to
NZ/Australian resident shareholders
22 August 2022
>FY23 and FY24dividend guidance* increased
▪42.5cps in FY23
▪a minimum of 47.5cps in FY24
▪dividends unimputed in short to medium term
>$38m of $150m share buyback complete
▪Board reserves option to suspend the buyback if more accretive
opportunities for shareholder value are identified
Dividend and share buyback
FY22 FULL YEAR RESULT
19
0
5
10
15
20
25
30
35
40
45
50
FY22FY23FY24
cps
* subject to no material adverse changes in circumstances or outlook
Dividend guidance -updated

22 August 2022
FY23 guidance
FY22 FULL YEAR RESULT
EBITDA: $655m to $675m
▪subject to no material changes in circumstances or
outlook
▪objective of modest EBITDA growth
20
GROSS CAPEX: $410m to $450m
>Fibre $320m-$340m
▪$5m-$15m spend for UFB2 communal (no change to
programme guidance $548m-$568m)
▪$160m-$180m fibre connections & layer 2
(based on mass market 90,000 –110,000 fibre
connections, 2,500 –3,500 backbone builds and
including service desk costs)
▪UFB cost per premises connected $1,000 -
$1,115*
*excluding layer 2 and including standard installations and some
non-standard single dwellings and service desk costs
>Copper $30m-$40m
>Common $55m-$75m
•includes exchange upgrades/strengthening

22 August 2022
FY22 FULL YEAR RESULT
21
Regulatory revenue: FY22 FFLAS (indicative)
Non-
regulated
$m
Regulated
FFLAS
$m
TOTAL
FY22
$m
Fibre broadband
(GPON)
2546548
Fibre premium (P2P)125466
Copper based
broadband
153-153
Copper based voice52-52
Data services copper6-6
Field services541771
Value added network
services
161127
Infrastructure201030
Other12-12
Total327638965
>Indicative* FFLAS revenue of $638m or 66%
of FY22 revenue
▪FFLAS total excludes estimated $44m allocation
of fibre-related capital contributions to be
netted off fibre RAB assets
>MAR for 2022 (calendar) is $692 million
▪includes pass through costs of about $16m
▪Chorus forecasts regulated fibre revenue of
approximately $657 million
*amounts are subject to change once transitional RAB
values and cost allocations are finalised
FFLAS = Fibre Fixed Line Access Services
MAR = maximum allowable revenue

22 August 2022
FY22 FULL YEAR RESULT
Regulatory outlook
22
WACC parameterRP1
1
WACC
(1 July 2021)
ID
2
WACC
(1 Feb 2022)
Risk-free rate0.51%1.96%
Average debt
premium
1.70%1.62%
Cost of debt2.54%3.91%
Cost of equity5.62%6.66%
Mid-point vanilla
WACC
4.72%5.86%
Mid-point post-tax
WACC
4.52%5.54%
Source: Commerce Commission
1. RP1: Regulatory Period 1 from 2022-2024
2. ID: Information Disclosure. Latest calculated WACC is used for
reporting purposes only.
>awaiting confirmation of final RAB
▪Chorus calculated starting RAB $5.346 billion vs $5.425
billion draft starting RAB
▪this excludes submission of $67m in shared exchange
space
>next regulatory period (RP2) settings will be
calculated from mid-2024 and should reflect:
▪future risk-free rate (e.g.2.75% used for gas network
regulatory cost of capital, 31 May)
▪tax building block commences from ~FY27 and grows
to ~$90m
▪~$250m (current value) of existing shared assets that
should be eligible to enter the RAB over time
▪2025 repayment of Crown financing (regulator only
allows ~2% return on funded assets)
▪cost allocations will need to be addressed in RP2, or
reflected in policy framework for copper
Telecommunications Service Obligations

Connecting Aotearoa
JB Rousselot, Chief Executive Officer
22 August 2022
FY22 FULL YEAR RESULT

22 August 2022
FY22 FULL YEAR RESULT
24

22 August 2022
FY22 FULL YEAR RESULT
25
▪fibre has overtaken cable as the primary fixed broadband technology in the OECD
▪passive fibre network is most economic and sustainable technology for future needs
▪USA government prefers fibre for subsidised projects because it “...can easily scale speeds over time to...meet
the evolving connectivity needs of households and businesses."(National Telecommunications & Information Administration)
Global rush to future-proofed fibre
OoklaSpeedtestGlobal Index, Fixed Broadband, July 2022

22 August 2022
FY22 FULL YEAR RESULT
26
Consumer data needs don’t stand still
▪CommerceCommission monitoring highlights
lowlatency benefits of fibre
▪15% of fibre connections already consuming 1,000GB+
a month
▪we forecast monthly average of 1,000GB in 2025 and
4,000GB by 2033
▪proliferation of in-home devices and higher spec
content (4k, 8k, online gaming) drives need for ‘burst’
capacity (e.g. Hyperfibrefor schools)
▪Wi-Fi technology/spectrum advances will help remove
in-home constraints

22 August 2022
FY22 FULL YEAR RESULT
27
Enhancing our fibre product line-up
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
Chorus broadband connections –UFB2 areas
ArrowtownBluffWhangamata
UFB
complete
Fibre
Starter
50Mbps
$38
300Mbps
$50.50
100Mbps
$50.50
1Gbps
$58
Hyperfibre
2,4,8Gbps
$70-$110
25Gbps
trial
Wholesale pricing effective 1 October
Consumer fibre plans
No. of connections

0
100,000
200,000
300,000
400,000
500,000
600,000
Sky TVNova EnergyContact
Energy
Mercury
(+Trustpower)
Electricity/TV box connections
Broadband customers (reported)
22 August 2022
FY22 FULL YEAR RESULT
28
Retail market: non-telco bundlers growing
0
10
20
30
40
50
60
70
80
90
FY20FY21FY22
Chorus fibre: RSP share
All Chorus fibre1 Gbps
Largest 3 RSPs
Other RSPs
%
New entrant...

0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
FY20FY21FY22
New property ordersCompleted
22 August 2022
FY22 FULL YEAR RESULT
29
Strong pipeline of new property orders
Chorus new property pipeline

22 August 2022
FY22 FULL YEAR RESULT
30
>~90% broadband retention rate across closed cabinets
▪13,000 withdrawal notifications issued; service now ceased for 7,000
▪130 cabinets closed; 456 under notice
▪beginning to notify selected non-cabinet addresses with intact fibre sockets
>good progress on site optimisation
▪14 property/lease sites exited (FY21: 36 sites)
▪15 properties in subdivision phase (7 consented)
▪leases reduced by ~$70m following change in third party arrangements, as
recognised at HY22
130
456
1,956
Copper broadband cabinets –
Chorus UFB area
ClosedNotifiedIn service
Solid progress on optimisationinitiatives

22 August 2022
FY22 FULL YEAR RESULT
31
Identifying opportunities
close to our core
>Hyperfibre: 1,000 connections despite limited retail channels;
revised pricing from 1 October to accelerate growth
>Business fibre: fibre connections grew 12%; ~75% of business
market on fibre (excluding small/home offices)
>EdgeCentre: COVID slowed site expansion; market trends
support continued focus on opportunity
>PowerSense: leveraging fibre capability in a new way

22 August 2022
FY22 FULL YEAR RESULT
32
Fibre underpins new sustainability target
>new commitment to Science Based Target initiative
▪targeting 62% reduction in Scope 1 and 2 emissions by 2030, from 2020 base year
▪goal of 25% electricity consumption reduction by 2030 as copper equipment is withdrawn and fibre enables
more efficient data usage
▪new carbon zero certified electricity supplier; exploring renewable energy capability (e.g. solar)

22 August 2022
FY22 FULL YEAR RESULT
33
Looking ahead
▪~160,000 consumers can switch fibre on today
▪another 250,000 have fibre at their gate
▪final RAB due; work already underway for next
regulatory period
▪pragmatic policy settings could get fibre to at
least 90% of the population

22 August 2022
FY22 FULL YEAR RESULT
34
Questions?

0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
30-Jun-2130-Sep-2131-Dec-2131-Mar-2230-Jun-22
22 August 2022
30 June
2021
30 Sept
2021
31 Dec
2021
31 March
2022
30 June
2022
Unbundled copper
(no broadband)
10,0008,0006,0003,0001,000
Baseband copper
(no broadband)
137,000127,000119,000112,000102,000
Copper ADSL
(includes naked)
163,000152,000142,000133,000122,000
VDSL
(includes naked)
157,000148,000138,000128,000118,000
Fibre broadband
(GPON)
860,000883,000907,000929,000949,000
Data services
(copper)
2,0002,0002,0002,0002,000
Fibre premium
(P2P)
11,00011,00011,00010,00010,000
Total connections
1,340,0001,331,0001,325,0001,317,0001,304,000
Fibre (GPON)
VDSL
Copper ADSL
Unbundled copper
Baseband copper
>1,189,000 broadband connections comprises:
▪949,000 fibre (GPON) connections
▪240,000 VDSL/ADSL (copper) connections
Business premium
Note: 9,000 partly subsidisededucation connections are excluded from this data
FY22 FULL YEAR RESULT
35
Appendix A: Connections, market trends, pricing
Chorus connections

-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Broadband uptake by retailer (all technology)
SparkVodafoneVocus2degreesTrustpowerROM
Source: IDCSource: IDC
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
NZ broadband market –by technology
Chorus xDSLChorus mass market fibreChorus premium fibre
Local fibre companies (UFB)Other fibre networksOther xDSL
Vodafone cableFixed (mobile) wirelessLegacy fixed wireless, satellite
NZ markettrends
36
FY22 FULL YEAR RESULT
22 August 2022

22 August 2022
FY22 FULL YEAR RESULT
37
Pricing summary
Allowable CPI on anchor product fibre pricing was 6.9%
Fibre plan -consumerWholesale price -currentWholesale price from 1 Oct
2022
Change
Voice line$26.02$27.455.5%
Home starter 50/10Mbps$38$38-
50/10Mbps$44.22$47.286.9%
300/100Mbps$47.87$50.505.5%
1Gbps $56$583.6%
Hyperfibre2Gbps$75$70-6.7%
Hyperfibre4Gbps$100$85-15%
Hyperfibre8Gbps$150$110-26%
Copper pricingWholesale price before16 Dec
2021
Wholesale price –currentChange
Copper line$32.14$33.734.93%
Copper broadband$42.97$45.094.93%

22 August 2022
FY22 FULL YEAR RESULT
38
Appendix B: Sustainability
See also https://company.chorus.co.nz/sustainability
Employee engagement

22 August 2022
FY22 FULL YEAR RESULT
39
*Examples include fibre footprint expansion,
greenfield connections & customer retention spend
Appendix C: Additional financial information
>surplus capital is allocated based on maximising
shareholder value, with discretionary capex only pursued
where:
▪greater shareholder value is created compared to share
buybacks and/or additional dividends; and
▪regulatory incentives are appropriate (e.g. regulatory
WACC vs Chorus WACC)
>intention to pay out 60% to 80% of free cash flow
▪free cash flow = net cash flows from operating activities
minus sustaining capex
Capital allocation framework

22 August 2022
Sustaining vs non-sustaining
capex
>$161m of FY22 capex was sustaining vs $331m non-
sustaining
>fibre sustaining capex is expected to increase over time
as the asset ages
>sustaining capex expected to be ~$200m (midpoint
within a range)
FY22 FULL YEAR RESULT
**Relates to provisioning, systems and service desk costs
40
Non-sustaining capexFY22 $mFY21 $m
UFB communal77147
Fibre installations166244
Greenfield growth* and product
development
5951
Footprint expansion (West Coast)*1532
Customer retention (incentives)1418
Subtotal331492
Coppercapex: sustainingFY22 $mFY21 $m
Network sustain2729
Copperconnections11
Copper layer234
Customer retention costs**711
Subtotal3845
Commoncapex: sustainingFY22 $mFY21 $m
Informationtechnology3246
Building& engineering services1914
Subtotal5160
Fibrecapex: sustainingFY22 $mFY21 $m
Layer 22931
Fibre products & systems711
Network sustain1311
Other fibre1011
Customer retention costs*1311
Subtotal7275
*majority funded by third party contributions

▪fibre maintenance increasing as share of connections grows;
~5% fault rate on fibre
▪copper fault volumes reducing as connections reduce in UFB
zone; beginning to realise fixed cost savings
▪non-UFB zone copper spend stable ~$20m p.a.
22 August 2022
Reactive maintenance: Chorus network
Key drivers for $54m spend
0
5
10
15
20
25
30
FibreCopper - fixedCopper -
variable
Reactive spend by type
FY20FY21FY22
0
5
10
15
20
25
30
Chorus UFB Non UFB LFC UFB
Copper -reactive spend by area
Note:
▪reactive maintenance excludesspend on proactive maintenance and
customer networks (i.e. premises wiring, no fault found, cancellations)
▪‘fixed’ faults: occur in parts of the network that affect multiple customers
(e.g. cable between exchange and cabinet)
▪‘variable’ faults: only affect one customer (e.g. cable on customer property)
$m
$m
FY22 FULL YEAR RESULT
41

22 August 2022
Crown financing summary
FY22 FULL YEAR RESULT
42
▪CIP equity securities
•unique class of security with no right to vote at
shareholder meetings, but entitle the holder to a
right to repayment preference on liquidation
•an increasing portion of the securities will attract
dividend payments from 30 June 2025 onwards
•the dividend rate is based on 180 day NZ bank bill
rate, plus 6% p.a. margin
•may be redeemed at any time by cash payment of
total issue price or the issue of Chorus shares (at a
5% discount to the 20-day VWAP for Chorus
shares)
▪CIP debt securities
•unsecured, non-interest bearing and carry no voting
rights at shareholder meetings
•Chorus is required to redeem the securities in
tranches from 30 June 2025 to 2036 by repaying
the issue price to the holder
Debt
securities
maturity
profile
30 June
2025
30 June
2030
30 June
2033
30 June
2036TOTAL
UFB1 & 2$85.3m$104.7m$166.7m$210.2m$566.9m
Equity
securities
subject to
paying
dividends
(cumulative)
30 June
2025
30 June
2030
30 June
2033
30 June
2036TOTAL
UFB1 & 2$85.3m$197.1m$377.7m$766.4m$766.4m

---

Annual Report 2022
01 Chorus Board and management overview
15 Management commentary
25 Financial statements
63 Governance and disclosures
92 Glossary

FY22 results overview
1 Excludes partly subsidised education connections provided as part of Chorus’ COVID-19 response.
2 Earnings before interest, income tax, depreciation and amortisation (EBITDA) is a non-GAAP profit measure. We monitor this as a key
performance indicator and we believe it assists investors in assessing the performance of the core operations of our business.
3 Previously reported FY21 EBITDA and net profit after tax have been restated to reflect an ongoing change in accounting treatment of field
services revenue for roadworks. Refer to page 34 of the 2022 Annual Report for the detailed accounting adjustments.
4 Based on the average response to four key engagement questions.
Employee engagement score
4
FY22FY21
8.58.5
out of 10
4
Fibre connections
1
FY22
959,000
FY21
871,000
Broadband connections
1
FY22FY21
1,180,000
1,189,000
Customer satisfaction
Fault restorationIntact
8.2 out of 10
(target 8.1)
7.3 out of 10
(target 7.7)
Fixed line connections
1
FY22
1,304,000
FY21
1,340,000
Dividend
FY22FY21
25cps
35cps
EBITDA
2
FY22
$675m
FY21
3
$657m
Net profit after tax
FY22FY21
3
$51m
$64m

Annual Report 20221
Dear investors
Our network and our people proved resilient
in another operationally challenging year.
Data demand and fibre uptake continued
to grow, underpinning a solid financial
performance. With the fibre rollout programme
drawing to a close, Chorus returned to earning
more than it is investing in the network for the
first time in a decade.
Our objective heading into FY22 was to keep unlocking the
potential of fibre by continuing to connect more people and
technology to our network. COVID continued to make that
difficult with lengthy lockdowns, followed by the ongoing
effects of illness on our workforce and consumer activity.
Despite this, we added another 88,000 fibre connections
and fibre uptake grew from 65% to 69% of addresses
within our Ultra-Fast Broadband (UFB) fibre footprint.
With direct contact with householders curtailed, we pivoted
from suburban fibre installation campaigns to promoting
activation of pre-installed fibre sockets. This helped win back
a growing number of connections and kept us on track to
reach one million fibre connections by the end of December.
Our 11-year public-private partnership with the Government
is fast approaching its conclusion. Just 17,000 or so homes
and businesses remain to have fibre built past them and this
will be done by the end of December. During the year we
were pleased to complete another project, largely funded
by the Government’s Provincial Growth Fund, to extend
fibre backhaul along 250 kilometres of the South Island’s
West Coast. This has opened up fibre and mobile network
connectivity for remote but key communities like Haast, as
well as strengthening the resilience of the regional network.
Increased consumer reliance on broadband for working,
streaming and learning continued to drive demand for reliable
high-capacity broadband. The number of 1 gigabit per second
(Gbps) connections increased to 23% of our consumer fibre
connections, up from 19% last year. In December, we gave
more than 600,000 homes and businesses a speed boost.
Residential consumers on our most popular 100 megabit
per second (Mbps) plans were able to upgrade to 300Mbps
at no additional wholesale charge. We’re also starting to see
momentum in the number of consumers taking our next
generation Hyperfibre services of 2, 4 and 8Gbps. Together,
these developments are catapulting Aotearoa New Zealand
up global fixed line broadband rankings.
Fibre’s operational electricity needs and associated carbon
emissions are lower than other broadband technologies,
particularly at higher data speeds. This enabled us to support
a 23% increase in data traffic with only a small uplift in total
network electricity usage during the year. Total traffic across
our network rose the equivalent of 1.3 billion gigabytes,
to 7,140 petabytes, while monthly average household data
usage for fibre consumers grew from 500GB to 567GB.
In our planned fibre areas broadband connections grew
by 27,000. This helped us to grow total fibre and copper
broadband connections nationally by 9,000 to 1,189,000.
This total excludes the 9,000 school student households
we continue to support with partly subsidised broadband
connections as part of a Ministry of Education COVID
response. We ended the year with 1,304,000 fixed line
connections, down 36,000 lines compared with a reduction
of 75,000 lines in FY21. Predictably, most of this reduction
was again in areas where our copper network competes with
alternative fibre networks.
1 January 2022 marked our transition to a utility-style
regulatory framework for fibre, replacing the contractual
framework with government that had applied through
the fibre rollout. After many years of discussion and
implementation we now have clarity on the parameters that
will shape our investment choices. These include the starting
regulated asset base of $5.4 billion
1
and our maximum
allowable revenue for the next three years, which includes
some allowance for inflation.
The new framework also brings a regulatory focus on
quality of service and customer satisfaction. Customer
experience has been a priority we’ve worked to embed
within our organisation for many years. In FY22 this included
implementing a new fibre fault restoration measure and
continuing to work on improving the fibre connection
experience for homes with an existing or ‘intact’ fibre socket.
While we achieved a strong result on the first measure at
8.2 out of 10, there’s plenty more to do to lift the intact
experience from 7.3 out of 10.
Our employees spent much of the year working from
home because of COVID restrictions and its flow-on
effects. They continue to embrace flexible working with our
current policy that they can work up to three days a week at
home. Given this and our desire to create a more adaptive
organisation, we’ve moved to a hot-desking model and
reduced our office footprint both in Auckland and Wellington.
Even in the context of a challenging year and continual change,
our employee engagement score remained consistent at 8.5
out of ten and our net promoter score increased from 62 to 64.
Continued strong growth in demand for fibre broadband
delivered underlying revenue of $959 million, up from
restated $955 million in FY21
2
. Careful cost management
partly mitigated inflationary and COVID pressures to achieve
underlying operating expenses of $299 million, up $1 million
from FY21. This produced underlying FY22 EBITDA of
$660 million, up $3 million from restated FY21 EBITDA of
$657 million
2
. 
A further $6 million of revenue from our network optimisation
programme and a legal settlement, together with the
release of a $9 million holiday pay provision, achieved
reported EBITDA of $675 million. Net profit after tax was
$64 million compared to a restated total of $51 million in FY21.
2
2 Previously reported FY21 results have been restated due to an ongoing
change in the accounting treatment of field services revenue for
roadworks. Refer to page 34 for the detailed accounting adjustments.
1 Currently subject to a Commerce Commission finalisation process.

Annual Report 20222
COVID constraints on fibre installations and general
network investment programmes saw our initial FY22
guidance of $550 million to $590 million capital expenditure
lowered several times through the year. Final spend was
$492 million. This means we returned to positive free cash
flow, earning more than we’re investing in the network, for
the first time since the beginning of the fibre rollout in FY12.
Consequently, our borrowings at the end of FY22 were lower
than expected at 4.08 times net debt to EBITDA and well
within our business tolerance level of 4.75 times.
Our move to positive free cash flow enables us to
increase dividend payments to shareholders. We’ll pay
a final unimputed dividend of 21 cents per share on
11 October 2022, bringing total dividends for FY22 to
35 cents per share. For FY23 we're increasing dividend
guidance from a minimum of 40 cents per share to
42.5 cents per share. FY24 guidance has increased to
a minimum of 47.5 cents per share.
We intend to continue with our share buyback programme of
up to $150 million, with about 25% of the programme already
completed by 30 June 2022.
~600 exchanges~12,000 cabinets~300,000 poles
~65,000km duct network~57,000km fibre (excluding service leads)
~130,000km of copper
Figure 1:
Our network infrastructure
Patrick Strange
Chair
Mark Cross
Chair Audit & Risk Management Committee
This report is dated 22 August 2022 and is signed on behalf of the  Board of Chorus Limited.
We’re a wholesale only, fixed line telecommunications
network operator. Our network infrastructure enables
100 retail service providers to connect homes and
businesses nationwide.
80% of our broadband connections are on fibre, enabling rapid
growth in broadband speeds and data demand. Most connections
are on 300Mbps plans, and almost a quarter on 1Gbps plans.
Hyperfibre services of 2, 4 and 8Gbps are also available.
We have about 800 permanent and fixed term employees and
120 independent contractors for our core operations. Our main
corporate office locations are in Auckland, Hamilton, Wellington
and Christchurch. Thousands of service company workers and
subcontractors undertake activity on our behalf.
A 2021 study confirmed the carbon emissions profile of our fibre
network stays low regardless of speed, suggesting that fibre will
continue to be energy efficient as data demand grows
1
.
1. https://company.chorus.co.nz/file-download/download/public/2314
Gigabit broadband and our fibre backhaul is underpinning the
development of sustainable communities through connections
to devices and other network connectivity.
At 30 June 2022 we had 1,304,000 fixed line connections on
our network (voice only: 103,000; broadband: 1,189,000; other:
12,000). Our network carried 7,140 petabytes of data in FY22, up
from 5,823 petabytes in FY21.

Annual Report 20223
Delivering on our strategy
in FY22
1.1 Winning in our core fibre business
We finished FY22 with 959,000 active fibre connections
nationwide, up from 871,000 the year before. About 919,000
of these connections are within our planned ultra fast
broadband footprint. The UFB1 and 2 projects have now
made fibre available to 1.32 million homes and businesses.
Across the UFB1 area, where deployment work was completed
in late 2019, fibre uptake grew from 69% to 74% of homes and
businesses. Uptake in Aotearoa’s largest city, Auckland, rose
from 75% to 79%. In the Wellington region, where we have had
historically lower market share due to the presence of an existing
cable network, we saw uptake increase by another 6% to 68%.
In the smaller UFB2 communities, uptake grew from 42% to
50%, even with the rollout passing another 42,000 homes
and businesses during the year.
We continued to undertake a range of in-market activity
to promote uptake of fibre services. This active wholesaler
approach is important because the three mobile network
operators have their own commercial incentives to promote
their mobile and fixed wireless network services, rather than
fibre, to their incumbent customers.
The Commerce Commission’s independent broadband
monitoring, performed by SamKnows, continues to show
that nothing beats a fibre connection when it comes to
reliable, uncongested and unlimited broadband. At peak
times, 4G fixed wireless delivers average download speeds
of 27.5Mbps compared to 40.1Mbps for VDSL copper
broadband and 309.1Mbps for fibre 300 plans.
3

The report also shows the difference in latency between
broadband technologies when a connection is heavily
utilised. This illustrates the lag or buffering consumers
3 Measuring Broadband New Zealand, Autumn Report, June 2022, Figure 1.
may experience, particularly when using multiple devices
simultaneously or applications like video conferencing
(see Figure 3). Our 1Gbps plans, defined as Fibre Max by the
Commission, perform the best with the lowest latency. Given
these findings, it is unsurprising that we saw uptake of 1Gbps
connections on our network keep growing strongly over the
year from 19% to 23% of mass market fibre connections.
Fibre has huge potential for further advances in speed
and bandwidth. We’ve already achieved speeds not even
contemplated a decade ago with our new Hyperfibre services.
In FY22, by simply changing the electronics on the end of a
fibre cable to use different colours of light, we demonstrated
how 25Gbps is possible on a fibre strand simultaneously
carrying separate 8Gbps and 1Gbps connections.
Our in-market activity included mainstream advertising
and campaigns focussed on encouraging homeowners
to activate pre-installed fibre sockets. The latter activity is
increasingly important as we issue more notices under our
copper withdrawal programme. It also helped us continue
to drive fibre growth while in-home installation activity was
curtailed by COVID restrictions. About 43,000 addresses
received an installation through our door knocking and direct
marketing efforts, down from 61,000 last year. However,
connections generated through our migration programme
installations grew from 30,000 in FY21 to 32,000 in FY22.
Another important tool is incentives for retailers to migrate
‘late adopters’ from copper to fibre. In April 2022, for
example, we introduced a $75 credit for each eligible
connection migrated on to our new Home Fibre Starter
plan. The plan provides 50Mbps download speeds and is
wholesaled at a reduced rate of $38 if retailers sell it at,
or below, a retail price cap of $60.
Figure 3:
Average latency under load to test servers by plan
0
300
600
900
1200
Latency (ms)
25.6
20.5
44.6
20
6.9
5.7
1 3 7.7
66
372.3
48.8
47. 5
18.5
1124
7 3 7.4
486.5
94.9
27. 5
10.5
Upstream loadDownstream loadIdle
ADSLVDSL
FIXED
WIRELESS
HFC
MAX
FIBRE
300
FIBRE
MAX
Source: Commerce Commission data, Measuring Broadband New Zealand,
Autumn Report, June 2022, Figure 10. Averages of monthly household averages.
Figure x:
Chorus UFB uptake
0%
50%
40%
30%
20%
10%
60%
70%
80%
90%
100%
UFB1UFB2
FY12
FY19FY18FY17FY16FY15FY14FY13FY20FY22FY21
Figure 2:
Fibre uptake – UFB rollout
1.0

Annual Report 20224
We completed our largest-ever performance upgrade for
fibre consumers in December 2021. Working closely with
broadband retailers we migrated residential consumers on
our most popular 100Mbps plan to 300Mbps download.
This was at no additional wholesale cost to the consumer.
In recognition of the increased importance of upload
speed for remote working and cloud-based applications
we increased the upload capability from 20Mbps to
100Mbps. Kiwi businesses also benefited with ‘Business
Evolve’ 100/100Mbps plans and ‘Small Business Fibre’
100/100Mbps plans moving to download and upload speeds
of 300/300Mbps and 500/500Mbps, respectively.
With more than 600,000 homes and businesses receiving
broadband speed increases through our fibre boost,
Aotearoa catapulted from 22nd place to 11th on the Ookla
Global Speed Test Index in December.
Another significant development was the Commission’s
request that retailers improve their broadband marketing.
This is something we had advocated for because of the
consumer confusion we’d seen about the status of the
copper network and the broadband choices available
to them. The New Zealand Telecommunications Forum
adopted the Commission’s recommendations and developed
two industry codes that require retailers to:
• obtain express consent from consumers for a change in
their telco service
• provide at least four months’ notice where a copper service
is being withdrawn (note: Chorus is required to provide six
months’ notice)
• give clear, accurate and up-to-date information about
service performance measures, with reporting of actual
likely peak time broadband speed of their broadband service
We believe this will help ensure a more level playing
field for network competition and improve outcomes for
consumers. We’ve adopted relevant elements of the code
in our own marketing.
Customer satisfaction with fibre fault restoration was a new
focus area for the year. We were pleased to lift the score from
8.1 in June 2021 to a rolling three-month average of 8.2 by
March, just above our 8.1 target. We achieved this strong
result by working closely with individual retailers to develop
tailored improvement plans. Technician performance is an
important contributor to the score and technicians continued
to be rated very highly. The length of time taken to resolve
the fault is another key driver.
The last quarter saw satisfaction rates drop back slightly
to 7.9. We had expected some effect from changes in our
service company contracts, but this has been compounded
by a combination of factors including weather events,
technician illness and broader workforce constraints.
We’re working closely with service companies to return
performance to previous levels.
Our other area of focus was the connection experience of
consumers seeking to activate a fibre service in premises
where a fibre socket is already installed or ‘intact’. Satisfaction
scores remained consistent with FY21, averaging 7.5 for the
first half of the year, before slipping to 7.3. This was below our
target of 7.7 despite a number of initiatives to better support
retailers and consumers. These included texting consumers
with set-up information prior to their connection date and
creating a specific handling process for complex scenarios.
An initiative to enable a new connection to be ordered while
an existing connection remains active at the same address
is expected to drive further performance improvements
when it is fully adopted by retailers.
1.2 Growing new revenues
A significant part of our focus in FY22 was the simplification
of our business product portfolio. We reduced more than
400 historical product variants down to a core portfolio of
just 13 to better reflect current retailer focus and consumer
demand. This has reduced unnecessary complexity and will
drive system efficiencies.
In parallel with this programme of work, we continued to
sharpen our product proposition for business customers.
As part of our fibre boost initiative in December, noted above,
we increased the upload speeds on business plans so that
they were the same as the download capability. This shift
to a symmetrical product recognises the different needs
of businesses, particularly for upload capacity, as reliance
on data and cloud-based activity grows. These changes
helped grow business fibre connections by 12% in FY22 and
we estimate approximately three-quarters of the business
market, excluding small/home offices, have moved to fibre.
COVID slowed our plan to expand our EdgeCentre offering
to another Auckland exchange. During the year there were
public announcements by several operators about planned
data centre developments. These and the international trends
we see continue to reinforce our view that our exchange
space can play a role in supporting the growing shift in cloud
computing services to network edges. The peering and
data centre backhaul products we launched in FY21 are also
supporting these developments.
An exciting new product to come out of our innovation
programme uses our fibre network to help electricity line
companies identify the geographic impact of power outages.
Called PowerSense, the service collects ‘last-gasp’ signals
from fibre terminals in customer premises to identify when a
home or business loses electricity in near real-time. This can
give the local lines company better visibility of outages and
support faster restoration.

Annual Report 20225
Figure 4:
Summary of key market trends
Our market driversWhat we’re focussed on
Large vertically integrated retailers are
encouraging customers to use their own fixed
wireless, cable and legacy fibre networks to
reduce their wholesale network costs.
We’re an active wholesaler, promoting our extensive broadband footprint
through advertising, retailer campaigns and our own door knocking initiatives.
Our network supports about 100 retailers, including new entrants from the
electricity and pay TV sectors. COVID-19 has accelerated consumer demand for
high capacity and low latency connections.
Competing fibre companies have overbuilt our
existing copper network with fibre as part of the
Government’s UFB programme.
We’re optimising our business in these competing areas and maximising
our broadband share in other areas experiencing premises growth,
particularly Auckland.
Traditional voice only connections are declining
with changing demographics and wireless
service options.
Broadband penetration is growing, but at a slower rate due to the market effects
of COVID-19 (e.g. negative migration). We’re commercialising new potential
revenue streams identified by our innovation programme, such as data centres
and smart city connectivity.
Technology keeps evolving, with 5G potentially
enhancing the capability of mobile/wireless
technologies as a fixed line alternative for
low data users.
Fibre is recognised as providing highly reliable broadband, particularly at peak
usage times. About 23% of our fibre consumers are on 1Gbps services and we’ve
launched Hyperfibre products up to 8Gbps. We're forecasting average monthly
data usage of 1,000GB by 2025. We see 5G as complementary technology likely
to require more cellsites needing fibre backhaul.
1.3 Optimising our non-fibre assets
We have a number of programmes underway to ensure we’re
optimising our non-fibre assets as more consumers migrate
to fibre.
We realised significant savings in FY22 from our ongoing
efforts to rationalise our legacy network equipment in Spark
exchanges. We also gained $3 million following our exit from
another 14 properties and surplus leases, with subdivision
plans now well advanced for more properties.
Our copper withdrawal team progressed from small scale
trials in FY21, with about 1,100 addresses notified across 129
cabinets, to approximately 10,100 addresses notified across
580 cabinets by the end of FY22. We deactivated services at
84 cabinets after COVID delayed withdrawal activity in some
areas. We’ll continue to focus on cabinets and cables where
customer numbers are low and maintenance costs are high.
Addresses where fibre has already been installed but isn’t yet
activated will also become more of a priority.
With fibre only available to about 87% of the population, our
copper network continues to connect a large customer base
across much of rural Aotearoa. We recognise the importance
of this network for remote communities and are committed
to fulfilling our service obligations. We also keep looking for
ways to improve rural broadband coverage, but this typically
requires government support to make it economically feasible.
During FY22, government funding through the Provincial
Growth Fund did help us complete the rollout of 250
kilometres of fibre backhaul along a remote area of the South
Island’s West Coast. This enabled fibre and mobile services to
very small communities like Haast, as well as providing a new
diverse route to help maintain services to the West Coast
in future extreme weather events. In FY23 we’re partnering
with government again to extend VDSL coverage to 32 rural
broadband cabinets.
Recent market developments and regulatory settings have
made it less economic for us to invest in rural network
upgrades. For example, we’re required to provide our copper
and fibre services at urban prices to even the most remote
customers, while fixed wireless providers subsidised by
government can charge higher rural prices and are only
covering the easier to serve customers. As demand for
these wireless and low earth orbit satellite services shows,
rural customers are prepared to pay for decent broadband.
What might be achieved if fibre could compete on a level
playing field?

Annual Report 20226
1.4 Developing the long-term future of
the business
With the introduction of a new regulatory regime and a
more operational phase in Chorus’ evolution, we’ve taken
the opportunity to put renewed emphasis on the kind of
organisation we want to be to thrive into the future.
We continued to drive adaptive practices and the use of
cross-functional teams to help deliver some of our strategic
goals in FY22. This gave our people the opportunity to
develop new skills and collaborate more widely. The shift to
hot-desking across our Wellington and Auckland offices is
helping embed these benefits and builds on the flexible work
practices our people have embraced in response to COVID.
We made progress towards our target of a 40:40:20
4
gender
ratio with 38% women and 62% men in people leadership
roles at year end. That was up from 36% women in FY21.
We achieved our goal of a career level pay gap no greater
than -2% in eight of our nine career levels. In six of the nine
career levels, on average females are paid higher than males.
We were also pleased to see our Māori and Pasifika employee
population increase from 5% to 8%, but we acknowledge
they continue to be under-represented.
Thriving people is part of our broader sustainability strategy
that includes a focus on ensuring a thriving environment and
working to champion digital futures. Our 2022 Sustainability
Report puts a spotlight on our efforts to reduce our carbon
footprint with a new Science Based Target of a 62% reduction
in our Scope 1 and 2 emissions by 2030, from 2020 levels.
To help achieve this we’ve prepared our first Emissions
Reduction Plan. Electricity makes up more than 90% of our
Scope 1 and 2 emissions and we’re targeting a 25% reduction
in electricity consumption by 2030, from 2020 levels. This is
possible because fibre broadband requires less powered
4 40% men, 40% women and 20% of any/either gender.
equipment than other technologies. Sapere Research Group
5

found that an entry-level fibre plan, operating at 50Mbps, is
up to 41 per cent more efficient than copper VDSL broadband
and up to 56 per cent more efficient than 4G fixed wireless.
The low carbon emissions profile of fibre stays consistent
as speeds increase while the emissions for alternative
technologies increase with speed. For higher speed plans,
around 300Mbps, fibre is up to 29 per cent more efficient
than Hybrid Fibre Coaxial, and up to 77 per cent more
efficient than 5G fixed wireless.
In April we moved to new service company agreements for
the build, maintenance and connection to our copper and
fibre network. With the fibre rollout coming to an end and
new fibre installation volumes expected to slow, we worked
closely with our service companies beforehand to co-design
a new framework that appropriately balances customer
experience, cost and industry sustainability. The worker
welfare requirements of our supplier code of practice were
also an important feature.
Ultimately, this process saw us consolidate the number of
service companies from three to two, with Downer and UCG
the successful bidders. The Downer contract is for three
years for all services. UCG’s contract is for seven years for all
services in Auckland, Northland and the Waikato and three
years for fibre connect elsewhere in the country.
The agreements provide a platform for the ongoing
simplification of our business and enhancement of
customers' experience as they connect to the network
or have faults repaired. To underpin this, we’ve begun
implementing a single IT gateway we use to process activity
between us and the service companies. This will help us
move off multiple legacy systems and enable us to provide
retailers and consumers with improved information.
5 See our sustainability webpage at company.chorus.co.nz/sustainability
for the full Sapere Research Group report
SUSTAINABLE
DIGITAL FUTURES
TOA HANGARAU
THRIVING
ENVIRONMENT
TE TAIAO PUAWAI
THRIVING
PEOPLE
NGA IWI
WHAI HUA
Figure 5:
Our sustainability strategic pillars
Our focus on Sustainability is guided by Kaitiakitanga (environmental guardianship)
and Manaakitanga (acts of giving and caring for). Sustainability is at the very heart of Chorus.

Annual Report 20227
The New Zealand market
COVID-19 slowed overall growth of Aotearoa’s
broadband market, increasing competitive
intensity between the 100 or so broadband
retailers. FY22 has featured retailer consolidation
and new entrant retailers continuing to grow
market share. This reflects the way our open
access network fosters competition, enabling all
retailers to offer services on an equivalent basis.
2.1 Bundling of complementary services
Retailers bundling electricity or pay TV with broadband
services continued to gain a growing share of fibre uptake
from traditional telcos.
Contact Energy has gained 71,000 broadband customers
since entering the market in 2017, representing about 16%
of its electricity customer connections. In June 2022,
Mercury Energy became the latest power retailer to bundle
broadband. This follows their acquisition of Trustpower,
already the fifth largest electricity and broadband retailer.
With almost 600,000 electricity customers, Mercury’s scale is
expected to drive more broadband bundling momentum.
Vocus New Zealand has been offering electricity to its telco
customers for some time and recently broadened its offer
to include insurance services. The convergence between
electricity and broadband is also becoming a feature in
Australia with Telstra, the national telecommunications
incumbent, adopting a strategic goal of becoming a top five
energy retailer by 2025.
Sky TV entered the broadband market in FY21 and has a
three-year target of achieving 3% to 5% market share. While
their initial bundling focus is on their more than half a million
Sky Box customers, they also report more than 400,000
streaming customers.
2.2 Mobile networks and fixed wireless
FY22 has also seen significant developments in the ownership
of traditional telcos.
The third mobile network operator, 2degrees, merged with
broadband retailer Vocus NZ. This makes the combined
entity, operating as 2degrees, the third largest telco behind
Spark and Vodafone.
International tower ownership trends also reached Aotearoa
with Spark announcing in July 2022 that it intends to sell a
70% interest in its tower unit to Ontario Teachers’ Pension Plan
Board. The deal covers 1,263 towers with a build commitment
of 670 sites over the next 10 years. Vodafone announced
shortly after that it intends to sell an 80% interest in its 1,484
towers to Infrared Capital Partners and Northleaf Capital
Partners with plans to add 390 more sites over the next decade.
Figure 6:
The New Zealand fixed line market
Rationalisation, new entrants and new business models are disrupting the New Zealand market.
Note: Fibre to the premises will cover ~87% of NZ population by the end of 2022
Power + Broadband
Mobile networkWireless Broadband
Chorus
Nationwide network access
wholesaled to ~100 retail service providers;
Fibre to pass ~1.36m homes and businesses
Local Fibre Companies:
Enable – Tuatahi First Fibre –
Northpower
Fibre past ~450k homes and businesses
Retail Service
Providers:
Local Media:
(Broadcast)
Local Media:
(On Demand)
Fixed Line
Access
Networks:
TV3
3Now
BBC iPlayer Apple TV Google Play Netflix YouTube Hulu Amazon Disney+
International
media providers:
OnDemand
TVNZSky TV
Neon
Mercury
Trustpower
Others e.g.
Slingshot, Orcon, Flip
VocusVodafone
HFC cable in
Wellington +
Christchurch
(~40k customers)
Spark Sport
+Skinny
Spark2degreesSky
Megatel
Nova Energy
Contact Energy
MyRepublic
Voyager
NOW
2.0

Annual Report 20228
The funds released by tower deals may assist mobile network
operators with the very large investment needed to fund
spectrum, equipment and sites for any wider rollout of 5G
services. To date, the availability of 5G varies widely between
each network operator and tends to be limited to main centres.
The Commission reported there were 276,000 customers
on fixed wireless in 2020/21, representing about 15% of all
internet connections. Fixed wireless uptake is subject to
competition with fibre and copper services promoted by a
wide range of retailers, as well as between the fixed wireless
providers themselves.
2.3 Data demand
Data traffic on our network during the evening period is
marching ever upwards, driven by consumer adoption
of online streaming services and gaming, and by the
proliferation of internet users and devices within a home.
A new record for peak time traffic of 4.2 terabits per second
(Tbps) was set in March when a Fortnite gaming update was
released. Average peak time traffic grew by 18% during the
year to 3.3 terabits per second (see Figure 7).
We saw the lockdowns and other public restrictions in late
2021 ramp up average data usage on fibre to record highs of
more than 600GB per month. Average monthly data usage
grew by 18% through FY22 from 432GB to 508GB. Fibre
consumers were using an average of 567GB a month in June
2022, up from 500GB in June last year (see Figure 8). Copper
data usage is reducing as copper connections reduce,
although average monthly data usage for copper consumers
still grew from 254GB to 282GB during the year.
Average monthly data usage per customer remains on track
to reach our previous forecast of 1,000GB by 2025. Looking
further out, we estimate usage will exceed more than
4,000GB per month by 2033, with peak throughput on our
network reaching 28Tbps. These forecasts are consistent
with the projected increases of other international broadband
network operators.
Peak trac of 3.31Tbps
20182021202220192020
Average daily usage (Tbps)
0
1
2
3.5
2.5
0.5
1.5
3.0
12:00 AM8:00 PM4:00 PM12:00 PM8:00 AM4:00 AM12:00 AM
Figure 7:
Average daily internet usage across the Chorus network 2018 – 2022

Annual Report 20229
4K content is expected to be a significant driver of data
growth, although it isn’t yet widely available to New Zealand
consumers. YouTube provides some 4K content and Disney
Plus is one of the few streaming services to provide 4K
programming at no additional charge to its subscription fee.
Live sports streaming in 4K quality has driven significant data
growth overseas, but it isn’t currently offered for local sports
streaming services. However, Sky TV is now trialling a new 4K
capable set-top box that will enable internet delivered on-
demand content so it may address this in the future.
Xbox has launched cloud gaming that does away with the
need for a console to store games and we expect streaming
services like this will keep driving data usage higher. Global
technology providers are now developing and launching
metaverse applications that will incorporate immersive
technologies such as augmented and virtual reality devices.
These developments will generate bandwidth demand that is
an order of magnitude higher again than what we see today.
2.4 The growing role of Wi-Fi
Wi-Fi has long been a hotbed for innovation and is how most
consumers experience fibre broadband. Mobile devices also
offload most of their data traffic via Wi-Fi. To fully realise
the benefits of a fibre network, and to achieve uninterrupted
access to new and future services that will rely on high-
speed internet to function, in-home Wi-Fi capability needs to
match the demand.
COVID has underlined the importance of Wi-Fi with
lockdowns and remote working meaning more simultaneous
demand on home Wi-Fi networks. We and retailers are,
therefore, increasingly focussed on helping consumers
address poor performing Wi-Fi. For retailers this has involved
including in-home Wi-Fi solutions, like Wi-Fi 6 capable
mesh devices, in their offers.
At the same time, the government’s radio spectrum
management body has been consulting on the potential use
of 6GHz spectrum for Wi-Fi. This unlicensed spectrum could
enable new Wi-Fi 6E capable devices to be used, effectively
doubling the bandwidth available compared to the existing
2.4GHz and 5GHz bands. Consumers would then have a
better chance of achieving peak speeds of 2Gbps through
less interference.
We support the decision to make the lower 6 GHz band
(5925 – 6245 MHz) available for wireless local area network
(WLAN) use. However, we also see potential consumer
benefit in making the upper 6 GHz band available for indoor
WLAN use in future, subject to managing the potential
impacts on incumbent users.
Releasing the entire 6GHz band, like leading tech countries
the USA and South Korea have done, could have far reaching
benefits. For example, Wi-Fi 6E devices could provide an
alternative to 5G mobile access in enterprise and other
private environments where cost-effective capacity and
support for a large number of devices is important.
0
100
200
300
400
500
700
600
Jun-21Dec-20Jun-22Dec-21Jun-20Dec-19Jun-19Dec-18Jun-18Dec-17Jun-17Dec-16Jun-16Dec-15
DownstreamUpstream (shown from June 2020 onwards)
Average monthly usage (gigabytes)
COVID-19 lockdowns


Figure 8:
Average monthly usage per connection on our fibre network

Annual Report 202210
Regulatory environment
3.0
We operate our wholesale only network within
the regulatory framework established by the
Telecommunications Act. We’re also subject
to the requirements of four open access deeds
of undertaking for copper, fibre and Rural
Broadband Initiative services that focus on the
provision of services on a non-discriminatory
basis. This regime operates alongside the revised
utility model that applies to Chorus’ fibre fixed
line access services from 1 January 2022.
3.1 New regulated utility model for fibre
From 1 January 2022 our fibre investment is regulated
according to a utility style building block model. This model
is used to regulate monopoly utility businesses, such as
electricity lines and gas networks. It is intended to support
private sector investment to meet network upgrades and
increasing consumer demands, by giving ongoing incentives
to innovate, invest and improve efficiency for the long-term
benefit of consumers.
To implement the new framework the Commerce
Commission established the Fibre Input Methodologies and
the Price-Quality Determination for the first regulatory period
for fibre (2022-2024). These establish the key elements of the
new fibre regime that determine the revenues we can earn
from our regulated fibre network, including:
• a starting regulated asset base of $5.42 billion,
comprising a core RAB of $4.03 billion and a financial loss
asset of $1.39 billion.
6

• a mid-point vanilla WACC of 4.72% and a post-tax WACC
of 4.52% for the first regulatory period from 2022 to 2024.
• maximum allowable revenue (MAR) that ranges from
$690.2 million to $789.5 million (nominal) per year over 2022
to 2024. The MAR for 2023 and 2024 will be updated for
the latest inflation forecasts with a wash-up against actual
inflation included in the following regulatory period MAR.
On 31 March 2022 we submitted our first price-path
compliance statement. This forecasts our regulated fibre
revenue for the 2022 calendar year will be approximately
$657 million, which is below the Commission’s MAR.
Where our actual revenues fall below the MAR the difference
will be added to the MAR for the next regulatory period.
6 Currently subject to a Commerce Commission finalisation process.
Figure 9:
New regulatory framework from January 2022
Areas where fibre is available (~87% of population)Areas where fibre is not available (~13% of population)
Regulated asset base for fibre access services with revenue
cap set by the Commerce Commission
• first regulatory period 2022-2024
• price caps on ‘anchor’ or declared services
• unbundled fibre available in UFB1 areas
• Commission can review the revenue cap model
(subject to statutory criteria) from 2025.
• Telecommunications Service Obligation applies to residential
addresses existing in 2001
• copper pricing subject to annual inflation adjustment
• Commission required to review copper regulatory settings no later
than 2025
• Chorus can choose to withdraw copper service with six months’
notice to consumers

Annual Report 202211
3.2 Quality requirements for fibre services
The Commission has set three quality standards we are
required to meet:
• Two standards measuring availability of the network in
23 geographic regions, based on downtime in the Layer 1
(physical) and Layer 2 (electronic) parts of the fibre network.
• One standard based on national port utilisation each month
to ensure sufficient network capacity to meet demand.
In addition to the quality standards there are a number of
measures that Chorus is required to report on through an
information disclosure regime. These include provisioning,
ordering, switching, faults, availability, performance and
customer satisfaction.
3.3 Commercial services for fibre unbundling
Our fibre network enables unbundled fibre services by
providing a second fibre to each premises. This means
retailers can choose to use our passive infrastructure
– fibre optic cables, ducts, and poles – and their own
broadband electronics, to deliver services to customers.
Unbundled services are not required to be made available
in UFB2 areas until 2026.
Our layer 1 fibre access service (PONFAS) includes a monthly
access charge of about $28 to cover access to the fibre
between the premises and the splitter, as well as $200 per
month to access the feeder fibre from each splitter to a
central network point. Pricing reflects the significant passive
infrastructure costs of our rollout investment, with layer 2
broadband electronics representing a very small component.
The Commission has developed guidance on fibre
equivalence and non-discrimination obligations for PONFAS.
It is currently conducting a compliance assessment of our
non-price terms.
3.4 Copper Withdrawal Code and
Telecommunications Service Obligation
The telecommunications legislative framework provides
for the deregulation of copper services in areas where fibre
is available. This enables us to withdraw copper services
once consumer protection requirements are met, as set
out under the Commission’s Copper Withdrawal Code.
This includes providing affected consumers with at least six
months’ notice of our intention to withdraw copper services.
By the end of FY22 we had provided notice to approximately
10,100 customers and we supported a range of consumer
groups with information about the copper withdrawal
programme.
Copper services remain regulated in areas where fibre is not
available, with copper prices annually adjusted for inflation.
In these areas, the Commission is required to review the
copper pricing framework no later than 2025.
Under the Telecommunications Service Obligation (TSO),
we are required to maintain telephone services to residential
premises that were connected to our copper network in
December 2001. Our obligation at the network level is shared
with Spark (formerly Telecom NZ) as the provider of the voice
service layer. The TSO Deed recognises that additional funding
may be sought for commercially non-viable customers.

Annual Report 202212
Outlook
With the core elements of our regulatory
framework now settled and the finish line for
our fibre rollout in sight, we’re shifting focus to
a more operational future. Connecting Aotearoa
so that we can all live, learn, work and play is our
refreshed organisational purpose. Achieving this
means continuing to grow uptake of our network
so its socio-economic benefits help power the
country’s digital future.
By the end of 2022 we’ll have brought fibre to the last
community under our public-private partnership with the
Government and we expect to have reached our target of
one million fibre connections. That still leaves just under
30% of homes and businesses that have yet to choose fibre
within our fibre footprint.
Auckland, with about a third of the national population, has
shown that more than 80% uptake is achievable. To keep
driving uptake we need to keep refining our fibre value
proposition and continue making the customer experience
as seamless as possible for our retailers and consumers.
This isn’t simple when we don't have the direct relationship
with consumers, but our retail service provider survey shows
the improvements we’ve made over FY22 are heading in the
right direction. Our new service company structure is an
opportunity to simplify and enhance our operations further.
In the short term, COVID will continue to cast a shadow
over our business and the wider economy. Although our
pipeline of new housing developments remains strong
given historical housing shortages, population growth has
slowed with net migration trending to negative. We’re seeing
inflationary pressures, particularly in our direct labour costs
and through our service companies. We’re also conscious of
the pressure on consumers, so we’ve chosen not to apply the
full inflationary increases we're permitted across all products
from October. On our most popular 300Mbps service we’re
holding the increase at 5.5% while our 1Gbps service will only
increase 3.6% after no price changes for several years.
At the same time, we’re reducing the pricing of our multi-gigabit
Hyperfibre services. Of the almost 1,000 Hyperfibre
connections to date, more than three-quarters are residential
consumers. This points to the continued consumer appetite for
better broadband. Schools have also begun to adopt Hyperfibre
services so they can provide enhanced bandwidth and reliability
across multiple users as more student learning moves online.
Our confidence in fibre’s future proof capability keeps
growing. International investment in fibre is surging and in
2021 fibre became the most prevalent broadband technology
in the OECD, with New Zealand ranked eighth for fibre
uptake. Like here, multi-gigabit fibre services are emerging
in overseas markets. There’s no doubt that future consumer
applications, whether cloud-based gaming or virtual reality in
the metaverse, are going to drive demand for higher speeds
and consistency. When these propositions develop mass
market followings, the network demands will be substantial.
Fibre is easily scalable for that demand and our 25Gbps trial
demonstrated a clear roadmap for even better capability.
While COVID-19 has accelerated digital adoption, we need to
work hard to ensure this doesn’t widen the socio-economic
digital divide and reinforce the multiple barriers to digital
inclusion. We’re committed to achieving true digital equity
through understanding, collaboration, and effort so that no
one gets left behind. During the pandemic we’ve focussed
our support on student connections, digital skills uplift for
seniors and helping the charitable sector embrace digital.
These initiatives are continuing into FY23 and we’re holding
pricing flat on our low-cost Home Fibre Starter service.
As broadband capacity and reliability needs grow, so too will
the digital divide between rural and urban Aotearoa. There’s
a growing body of evidence that broadband penetration
needs a high-quality broadband connection to maximise the
socio-economic benefits. Fibre offers a path to reliable high-
capacity broadband that doesn’t need recurring government
funding top-ups and supports national carbon emissions
reduction goals. That’s why other countries are extending
fibre as far as they can.
We believe that rather than kicking the can down the road with
piecemeal solutions, pragmatic policy settings are available to
enable us to reach 90% of Kiwis with fibre. That three percent
increase represents 65,000 customers located relatively close
to rural centres. Perhaps we can go even further.
In urban areas, growing fibre uptake means we’re moving
from trialling the withdrawal of copper services to a more
production-like process. Of the approximately 2,500 copper
broadband cabinets in our fibre areas, a quarter have
now been notified for withdrawal because they have few
remaining connections. The electricity savings from cabinet
shutdowns will become a growing contributor to our carbon
reduction goals. Our new emissions reduction plan forecasts
a 25% electricity reduction by 2030, assisted by the potential
expansion of solar generation on our exchanges.
4.0

Annual Report 202213
Embedding sustainability in our business strategy has included
a close look at our future organisational needs. Like many
businesses, recruiting and retaining people is increasingly
challenging. We’re continuing to evolve to be a more adaptive,
diverse and inclusive organisation as we transition from a
focus on building to operating the fibre network. This includes
working on developing the capability needed to thrive in our
new regulatory and dynamic market environment.
We know that competition will keep growing as mobile
network operators seek to recover their 5G investments.
With more than 90% of fibre connections now on 300Mbps
plans or higher, we believe we’re providing consumers with
the best broadband technology. We’ll keep developing our
role as an active wholesaler and explore new and potentially
innovative ways to leverage our fibre network and our
network infrastructure. Our new PowerSense product is a
good example of this approach.
At the next annual meeting in late October, the Board will
farewell chair Patrick Strange who has been with us since
2015. Mark Cross, currently chair of the Audit and Risk
Management Committee, will be our new Board chair. As a
director since 2016, Mark has a strong understanding of our
role as an essential infrastructure provider and the balance
needed to encourage ongoing investment that delivers
future consumer benefits and value to shareholders.
With our return to positive free cash flow, we’re now in a
position where we can make choices about discretionary
investment. This may include close adjacent opportunities
that offer better returns than the regulatory WACC. Whatever
opportunities arise, at our core we’ll remain a regulated utility
focussed on providing shareholders with stable returns.
To learn more about our focus on sustainability, please see
our Sustainability Report 2022 at: www.chorus.co.nz/reports
Our strategic focus

Annual Report 202214

Annual Report 202215
Management
commentary
16 In summary
17 Revenue commentary
18 Expenditure commentary
21 Capital expenditure commentary
22 Long term capital management

Annual Report 202216
2022
$M
2021
RESTATED
$M
Operating revenue965955
Operating expenses(290)(298)
Earnings before interest, income tax, depreciation and amortisation675657
Depreciation and amortisation(427)(427)
Earnings before interest and income tax248230
Net finance expense(142)(152)
Net earnings before income tax10678
Income tax expense(42)(27)
Net earnings for the year6451
In summary
1 Previously reported FY21 results have been restated due to an ongoing change in the accounting treatment of field services revenue for roadworks.
Refer to page 34 for the detailed accounting adjustments.
2 Underlying EBITDA of $660 million represents a reduction of $15 million for one-off operating revenue and expense gains recognised during the
period. Refer to page 12 of the FY22 investor presentation for the detailed reconciliation to EBITDA.
3 Excludes education connections partly subsidised as part of Chorus’ COVID-19 response.
We report earnings before interest, income tax, depreciation
and amortisation (EBITDA) of $675 million for the year ended
30 June 2022 (FY22), an increase of $18 million from restated
FY21 EBITDA of $657 million.
1
When one-off operating
revenue and expense gains are excluded, underlying EBITDA
in FY22 was $660 million.
2

Net profit after tax was $64 million compared to a restated
total of $51 million in FY21.
1
Careful management of maintenance costs and the release of
a $9 million holiday pay provision helped mitigate inflationary
pressures and COVID-19 impacts during the year. Operating
expenses reduced by $8 million from $298 million in FY21.
Revenues increased by $10 million to $965 million largely due
to gains from our network optimisation programme.
COVID-19 constraints on fibre installations and general
network investment programmes saw our initial FY22
guidance of $550 million to $590 million capital expenditure
lowered several times through the year. Final spend was
$492 million, with the winding down of the fibre rollout and
lower fibre installation spend the main contributors to the
decrease from $672 million in FY21.
Depreciation and amortisation expenses were flat year on
year while interest costs reduced due to the full year effect of
refinancing of debt at lower interest rates in FY21.
We will pay a final unimputed dividend of 21 cents per share
on 11 October 2022. The dividend reinvestment plan will be
available with no discount.
Connections
2022
Connections
2021
Connections
2020
Fibre broadband (GPON)949,000860,000740,000
Fibre premium (P2P)10,00011,00011,000
Copper VDSL118,000157,000221,000
Copper ADSL122,000163,000245,000
Data services over copper2,0002,0004,000
Unbundled copper1,00010,00015,000
Baseband copper102,000137,000179,000
Total fixed line connections
3
1,304,0001,340,0001,415,000
Management commentary

Annual Report 202217
Revenue commentary
2022
$M
2021
RESTATED
$M
Fibre broadband (GPON)548477
Copper based broadband153203
Field services products7170
Fibre premium (P2P) 6668
Copper based voice5268
Value added network services2730
Infrastructure3027
Data services over copper69
Other123
Total revenue965955
Revenue overview
Chorus’ product portfolio encompasses a broad range of
wholesale broadband, data and voice services across a
mix of regulated and commercial products. Revenues of
$965 million increased by $10 million from restated FY21
revenues of $955 million.
1
This increase reflected gains from
our network optimisation programme and continued strong
growth in fibre broadband revenue.
In our planned fibre areas broadband connections grew by
27,000, helping grow broadband connections nationally
by 9,000 to 1,189,000. We ended the year with 1,304,000
fixed line connections, down 36,000 lines compared with
a reduction of 75,000 lines in FY21. Most of this reduction
continues to be in areas where our copper network
competes with alternative fibre networks.
Fibre broadband (GPON)
Fibre broadband revenues continue to grow as customers
migrate to our expanding fibre network and broadband
penetration increases. Fibre broadband connections grew
by 89,000 to 949,000, with about 68% of connections on
300 Mbps plans. Average fibre monthly revenue per user
grew from $49.87 to $50.67 in FY22. This was driven by an
inflation related price increase to some services in October
2021 and uptake of the higher value 1 Gbps service growing
from 19% to 23% through the year.
Copper based broadband
Copper based broadband revenue continues to decline with
80,000 connections migrating from our ADSL and VDSL
broadband services to either our fibre network or alternative
fibre and wireless networks.
Field services products
Field services revenue increased by $1 million relative to
a restated $70 million in FY21. This was due to increased
new property revenues, offset by a reduction in chargeable
maintenance and installation activity.
Fibre premium (P2P)
Fibre premium (point to point) revenues decreased slightly
in FY22 as customers continued to migrate from high
value legacy connections. This trend is slowing as legacy
connections diminish and demand grows for Direct Fibre
Access Service, mobile access and other backhaul connections.
Copper based voice
Copper based voice revenues continue to decline as customers
migrate to either a fibre based connection on our network,
or to alternative fibre and wireless networks. These copper
connections declined by 35,000 lines in FY22 compared with
42,000 in FY21. Unbundled copper connections declined by
9,000 lines and are no longer material.
Value added network services
Value added network services revenue was lower in FY22 due
to a one-off historic dispute resolution recognised in FY21.
The main driver for this revenue is national data transport
services which provide network connectivity across legacy
backhaul and aggregation handover links.
Infrastructure
Infrastructure revenues increased $3 million to $30 million in
FY22 reflecting a change in lease treatment for retailers’ use
of Chorus’ buildings.
Data services over copper
Data services over copper connections continue to decline
as retailers transition business customers from legacy
services to cheaper fibre based services, either on our fibre
network, or on alternative local and CBD fibre networks.
Other
Other income included a $3 million gain from the disposal of
surplus property and one-off benefits from a $3 million legal
settlement and $3 million from a change in lease contract.

Annual Report 202218
Expenditure commentary
Operating expenses
2022
$M
2021
$M
Labour6474
Network maintenance5963
Information technology5048
Other network costs2929
Electricity1718
Rent and rates1412
Property maintenance1412
Advertising1113
Regulatory levies98
Consultants87
Insurance44
Provisioning12
Other108
Total operating expenses290298
Total operating expenses of $290 million in FY22 reduced
by $8 million compared to $298 million in FY21. In addition
to our ongoing focus on reducing discretionary costs,
COVID-19 restrictions in the first half of FY22 affected some
expense lines, and we released a labour expense provision.
Labour
Labour of $64 million reduced by $10 million in FY22 from
$74 million in FY21. A one-off benefit of $9 million was
recognised in FY22 after a judicial ruling on the interpretation
of the Holidays Act.
At 30 June 2022, we had 799 permanent and fixed term
employees representing a 2% decrease from 817 employees
at 30 June 2021. We capitalise the labour costs and the
associated overheads in relation to the UFB build and
connect activity. As the UFB rollout ends, we expect to
capitalise a lower proportion of labour costs.
Network maintenance
Network maintenance costs reduced by $4 million from
FY21. Overall fault volumes continued to reduce as more
customers connect to the newer fibre network and total
connections declined. FY22 was also impacted by COVID-19
restrictions on activity which reduced faults.
Information technology
Information technology costs were up $2 million compared
to FY22, largely due to inflationary pressures.
Other network costs
Other network costs are variable year to year and include
a range of costs associated with service partner contracts,
fibre access from third parties, roadworks and other network
relocation projects, fibre order cancellations, network spares,
and network and property optimisation costs.
Electricity
Electricity costs reduced due to lower electricity prices in
FY22 relative to FY21. Electricity consumption increased
over FY21 as a result of one-off metering washups as we
transitioned to a new supplier. Chorus hedges approximately
70% of its consumption with hedge contracts entered into up
to 24 months in advance.
Rent and rates
Rent and rates costs relate to the operation of our network
estate including exchanges, radio sites and roadside cabinets.
These costs include rates that are levied on network assets
both above and below ground. Costs increased by $2m
from FY21 due to inflationary increases from councils and
increasing rateable values from our network build.
Property maintenance
Property maintenance costs have increased by $2 million
relative to FY21. FY22 costs includes higher levels of network
property maintenance and around $1 million of one-off
“make good” costs relating to corporate office changes
(including relocation in Auckland and rationalisation in
Wellington).

Annual Report 202219
Advertising
Advertising costs were $2 million lower than FY21 due to
reduced brand activity in the year.
Regulatory levies
Regulatory levies increased by $1 million compared to
FY21 due to the levy for the Commerce Commission’s
implementation of the new fibre regulatory framework.
Consultants
Consultant costs increased by $1 million from FY21.
This reflects the timing of external advice required to support
both the implementation of the new regulatory framework
from January 2022 and our transition to an adaptive
organisation.
Other
Other costs include general expenditure such as
telecommunications, travel, training and legal fees.
Other costs appeared to increase in FY22 because FY21
benefitted from an adjustment to a doubtful debt provision.
Depreciation and amortisation
2022
$M
2021
RESTATED
$M
Estimated useful
life (years)
Weighted average
useful life (years)
Depreciation
Fibre cables
12211420–3020
Ducts, poles and manholes615820–5050
Copper cables616310–3022
Cabinets22305–2018
Property19185–5025
Network electronics62622–2510
Right of use assets151510–5028
Less: Crown funding(27)(27)
Total depreciation335333
Amortisation
Software
62602–104
Customer retention30341–44
Total amortisation9294
Depreciation and amortisation427427
The weighted average useful life represents the useful life in
each category weighted by the net book value of the assets.
During FY22, $492 million of expenditure on network assets
and software was capitalised. The ‘UFB communal’ and
‘Fibre connections and fibre layer 2’ included in ‘fibre’ capital
expenditure was largely capitalised against the network
assets categories of fibre cables (34%) and ducts, poles and
manholes (40%). The average depreciation rate for UFB
communal infrastructure spend is based on an estimated life
of 41 years, reflecting the very high proportion of long life
assets being constructed.
With the commencement of Chorus’ copper withdrawal
programme, Chorus has revised the depreciation profile for
copper cables in areas where fibre is available. Depreciation of
copper cables will be accelerated from FY23 so that those in
UFB2 areas will be fully depreciated by June 2025, and those in
local fibre company areas are fully depreciated by June 2026.
Software and other intangibles largely consist of the software
components of billing, provisioning and operational systems,
including spend on Spark owned systems.
Chorus expects that incremental costs incurred in
acquiring new contracts with new and existing customers
are recoverable. These costs are capitalised as customer
retention assets and amortised against revenue or within
amortisation expense, depending on their nature. In the
period to 30 June 2022, $30 million was recognised to
amortisation expense.
Our depreciation profile is expected to continue to change,
reflecting the greater mix of longer dated UFB assets being
built. The offset of Crown funding against depreciation
will continue to amortise as a credit to the associated
depreciation expense accordingly.

Annual Report 202220
Finance income and expense
(Income)/expense
2022
$M
2021
$M
Finance income–(1)
Finance expense
Interest on syndicated bank facility
65
Interest on Euro Medium Term Notes (EMTN)5147
Interest on fixed rate NZD bonds3243
Other interest expense2330
Capitalised interest(2)(2)
Interest costs110123
Ineffective portion of changes in fair value of cash flow hedges(7)(4)
Total finance expenses excluding securities (notional) interest103119
CIP securities (notional) interest3934
Total finance expense142153
Finance expense is lower in FY22 due to the lower cost of
NZD Bonds refinanced in December 2020.
Interest costs decreased by $13 million year on year with the
weighted effective interest rate on debt reducing to 3.77%
from 4.16% in FY21.
Other interest expense includes lease interest of $15 million
(FY21: $20 million) and amortisation arising from the
difference between fair value and proceeds realised from
interest rate swap resets of $7 million (FY21: $7 million).
Notional interest on Crown Infrastructure Partners (CIP)
securities also increased as Crown funding continued to grow.
At a minimum, we aim to maintain 50% of our debt
obligations at a fixed rate of interest. We have fully hedged
the foreign exchange exposure on the EMTNs with cross
currency interest rate swaps. A portion of the floating interest
on the cross currency interest rate swaps has been hedged
using interest rate swap instruments.
Ineffectiveness
As at 30 June 2022 Chorus held all interest swaps in
designated hedging relationships. These relationships are
designated as either cash flow hedges, or fair value hedges.
Provided that the cash flow hedges remain effective, any
future gains or losses will be processed through the hedge
reserve in the statement of changes in equity. Effective fair
value hedges will be offset within the finance expense. Minor
differences in the hedged values will flow to finance expense
in the income statement over the life of the derivatives as
ineffectiveness. Minor differences in the credit valuation
portion may also flow to the finance expense. Neither
the direction, nor the rate of the impact on the income
statement can be predicted as it is influenced by external
market factors.
Ineffectiveness largely consists of the cumulative change in
fair value of three interest rate swaps, designated as cash flow
hedges that were restructured in prior years. Two of these
restructured interest rate swaps have a combined face value
of $500 million and relate to the 10 year resettable NZD bond
issued in 2018. The other restructured interest rate swap has
a face value of $200 million and relates to the EUR 300m
EMTN bond. In FY22, ineffectiveness was credit $7 million
(FY21: credit $4 million) across all hedge relationships.
Taxation
The FY22 effective tax rate is 39% (FY21: 35%). The increase
reflects confirmation of the appropriate tax treatment for
funding received for the relocation of communications
network. When excluding the prior period adjustment, the
effective tax rate for FY22 is 34%. The effective tax rate is
higher than the statutory tax rate of 28% due to permanent
differences between tax and accounting arising from the tax
treatment of the CIP securities and Crown funding for the
Rural Broadband Initiative (RBI).
The accounting interest and depreciation credit recognised in
the profit and loss in relation to CIP securities are non-taxable
as confirmed via binding rulings issued by Inland Revenue.
RBI assets were funded by non-taxable government grants.
The accounting amortisation of RBI government grants and
RBI accounting depreciation recognised in the profit and loss
are non-taxable and tax depreciation is not claimed.

Annual Report 202221
Capital expenditure commentary
2022
$M
2021
$M
Fibre403567
Copper3845
Common5160
Gross capital expenditure492672
4 Layer 2 equipment, such as gigabit capable passive optical network ports, is installed ahead of demand as the UFB footprint expands.
5 Excluding layer 2 and backbone costs for multi dwelling units and rights of way and including standard installations and some non standard
single dwellings and service desk costs.
Gross capital expenditure for FY22 was $492 million. This was
$180 million less than FY21 capital expenditure spend. Fibre
spend decreased due to lower installation volumes and lower
UFB communal expenditure as we approach the end of
the rollout. Copper related expenditure reduced by 16% on
FY21 because copper network demand continues to reduce.
Crown funding of $41 million was recognised for the UFB
rollout and $16 million for the West Coast fibre project.
Fibre capital expenditure
2022
$M
2021
$M
UFB communal77147
Fibre installations and fibre layer 2
4
195275
Fibre products and systems1214
Other fibre and growth7991
Network sustain1311
Customer retention costs2729
Total fibre capital expenditure403567
UFB communal network spend was $77 million in FY22,
down from $147 million in FY21. The UFB rollout is now
98% complete.
Fibre installations and layer 2 expenditure was $195 million.
117,000 fibre installations were completed nationwide,
including 41,000 for UFB2 customers. $30 million was
invested in ‘backbone’ network to enable the connection
of multiple customers located along rights of way and
multi dwelling units.
The average cost per premises connected (CPPC) in UFB1
areas was $1,015
5
, which was just under the FY22 guidance
range of $1,025 to $1,175. The CPPC in UFB2 areas was
$1,187
5
, which was in the lower half of the revised FY22
guidance range of $1,150 to $1,300.
Other fibre and growth decreased $12 million compared
to FY21, mainly due to $17 million lower expenditure on
the West Coast fibre rollout. The West Coast fibre project
is primarily government funded and is expected to be
completed in FY23.
Network sustain refers to capital expenditure where the
fibre network has been upgraded or network elements such
as poles, cabinets and cables are replaced. This is typically
where network replacement is deemed more cost effective
than reactive maintenance, or network is being relocated for
reasons such as roadworks.
Customer retention costs decreased by $2 million from FY21
due to decreased market activity.

Annual Report 202222
Copper capital expenditure
2022
$M
2021
$M
Network sustain2729
Copper connections11
Copper layer 234
Customer retention costs711
Total copper capital expenditure3845
Copper capital expenditure decreased by $7 million from FY21 reflecting lower spend as customer numbers on our copper
network reduce. Less investment in layer 2 capacity and customer retention was needed as more customers migrate to fibre.
Common capital expenditure
2022
$M
2021
$M
Information technology3146
Building and engineering services2014
Total common capital expenditure5160
Information technology spend decreased by $15 million in FY22 after completion of large lifecycle system developments
and shifting to an agile delivery approach in FY21. Building and engineering services increased by $6 million and includes
expenditure related to corporate office relocation.

Annual Report 202223
Long term capital management
We will pay a final unimputed dividend of 21.0 cents per
share on 11 October 2022 to all shareholders registered at
5.00pm 13 September 2022. The shares will be quoted on an
ex dividend basis from 12 September 2022. As the dividend is
unimputed, there will be no supplementary dividend payable
to shareholders outside of New Zealand.
The dividend reinvestment plan will remain in place for
the final dividend, with no discount applied. Shareholders
who have previously elected to participate in the dividend
reinvestment plan do not need to take any further action.
For those shareholders who wish to participate, election
notices to participate must be received by 5.00pm (NZ time)
on 14 September 2022.
Our move to positive free cash flow enables us to increase
dividend payments to shareholders.
Dividend guidance for FY23 has been set at 42.5 cents per
share, subject to no material adverse changes in circumstance
or outlook. The FY23 dividend will be unimputed.
The Board considers that a ‘BBB’ or equivalent credit rating
is appropriate for a company such as Chorus. It intends
to maintain capital management and financial policies
consistent with these credit ratings. It is Chorus’ intention
that in normal circumstances the ratio of net debt to EBITDA
will not materially exceed 4.75 times.
At 30 June 2022, we had a long term credit rating of
BBB/stable outlook by Standard & Poor’s and Baa2/stable
by Moody’s Investors Service.

Annual Report 202224

Annual Report 202225
Consolidated financial
statements
26 Independent auditor’s report
29 Consolidated income statement
29 Consolidated statement of
comprehensive income
30 Consolidated statement
of financial position
31 Consolidated statement
of changes in equity
32 Consolidated statement of cash flows
34 Notes to the consolidated
financial statements

Annual Report 202226
Independent auditor’s report
To the shareholders of Chorus Limited
Report on the consolidated financial statements
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
We are independent of the Group in accordance with
Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (Including International
Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and
the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants
(including International Independence Standards) (‘IESBA
Code’), and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in
the auditor’s responsibilities for the audit of the consolidated
financial statements section of our report.
Our firm has also provided regulatory and other assurance
services to the Group. Subject to certain restrictions, partners
and employees of our firm may also deal with the Group on
normal terms within the ordinary course of trading activities
of the business of the Group. These matters have not
impaired our independence as auditor of the Group. The firm
has no other relationship with, or interest in, the Group.
Materiality
The scope of our audit was influenced by our application of
materiality. Materiality helped us to determine the nature,
timing and extent of our audit procedures and to evaluate
the effect of misstatements, both individually and on the
consolidated financial statements as a whole. The materiality
for the consolidated financial statements as a whole was set
at $8.5 million determined with reference to a benchmark of
Group revenue. We chose the benchmark because, in our
view, this is a key measure of the Group’s performance.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
company and group financial statements in the current
period. We summarise below those matters and our key
audit procedures to address those matters in order that the
shareholders as a body may better understand the process by
which we arrived at our audit opinion. Our procedures were
undertaken in the context of and solely for the purpose of
our statutory audit opinion on the consolidated statements
as a whole and we do not express discrete opinions on
separate elements of the consolidated financial statements.
Opinion
In our opinion, the accompanying consolidated financial
statements of Chorus Limited (the ’company’) and its
subsidiaries (the ‘Group’) on pages 29 to 61:
i. present fairly in all material respects the Group’s
financial position as at 30 June 2022 and its financial
performance and cash flows for the year ended on that
date; and
ii. comply with New Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS) and
International Financial Reporting Standards.
We have audited the accompanying consolidated financial
statements which comprise:
— the consolidated statement of financial position as at
30 June 2022;
— the consolidated income statement, statements of other
comprehensive income, changes in equity and cash
flows for the year then ended; and
— notes, including a summary of significant accounting
policies and other explanatory information.
Emphasis of Matter – prior period restatement
We draw attention to the prior period restatement note
in the consolidated financial statements, which describes
the adjustments that have been made to the consolidated
financial statements in relation to funding towards the cost
of relocation of communications equipment.
Our conclusion on the consolidated financial statements is
not modified in respect of this matter.

Annual Report 202227
The key audit matterHow the matter was addressed in our audit
Recoverability of assets
Capitalisation and the carrying value of assets are a key
audit matter due to the significance of assets to the Group’s
consolidated statement of financial position, and due to the
judgement involved in determining the carrying value of the
assets, principally:
—decision to capitalise or expense costs relating to the
network. This depends on whether the expenditure is to
enhance the network (capitalise) or to maintain the current
operating capability of the network (expense);
—estimation of the stage of completion of assets under
construction;
—estimation of the useful life of the asset once the costs are
capitalised;
—obsolescence and impairment risk; and
—uncertainty of the impact of ongoing technological
change, transitioning to a new regulated model,
movement towards a fibre future and RSP/LFC behaviour.
Our audit procedures included:
— examining that the controls to recognise capital projects in the fixed asset
register and the approval of the asset life annual review are effective.
—assessing the nature of costs incurred in capital projects by checking a
sample of costs to invoice to determine whether the description of the
expenditure met the capitalisation criteria.
—evaluating a sample of assets under construction in which no costs had
been incurred in the final six months of the financial reporting period.
We challenged the status of those assets under construction to determine
whether they remained appropriately capitalised.
—assessing, on a sample basis, whether the accruals recorded for assets
under construction were calculated in accordance with the progress of
construction and the arrangements with external suppliers.
—assessing the useful economic lives of the assets, by comparing to our
knowledge of the business and its operations and industry benchmarks.
Chorus funding
Refer to Notes 4, 6, 7 and 19 to the Financial Statements.
At 30 June 2022, Chorus had external borrowings of $2,322
million (30 June 2021: $2,373 million), Crown funding of
$936 million (30 June 2021: $906 million), CIP securities of
$613 million (30 June 2021: $545 million) and net derivative
financial assets of $19 million (30 June 2021: net derivative
financial liabilities of $32 million). The CIP securities,
cross-currency and interest rate derivatives are a key audit
matter due to their significance to the Group’s consolidated
statement of financial position and the complexity and
judgement involved in determining the appropriate valuation
and accounting treatment for the CIP securities and cross-
currency and interest rate derivatives.
Our audit procedures to assess the valuation and accounting treatment for
the Group’s interest rate derivatives and CIP securities included:
—our financial instrument specialists re-valuing all interest rate derivatives
using valuation models and inputs independent from those utilised by
management.
—evaluating the hedge effectiveness of the interest rate derivatives hedging
the EUR denominated Euro Medium Term Notes, the NZD Bond 2028 and
the NZD Bond 2030. In all instances, our financial instrument specialists
assessed the effectiveness of these hedges by independently modelling
the future changes in the value of these instruments to assess whether
the underlying derivatives were effective.
—assessing the accounting treatment of the CIP securities. We read the
underlying loan agreement and analysed the various features of the loan
agreement to determine whether the CIP securities were a debt or equity
instrument.
—evaluating the valuation of the CIP securities. Our valuation specialists
assessed the methodology used by management for determining the
amounts allocated to debt and government grant.
—assessing the inputs used in the valuation of the CIP securities. On
a sample basis we compared interest rates and credit spreads to
independent sources of information to determine an acceptable range of
valuation inputs.
Revenue recognition
Refer to Note 9 to the Financial Statements.
Revenue recognition and collectability is considered to be
a key audit matter due to the complexity of the revenue
recognition accounting standards, involving key judgements
and estimates, particularly surrounding;
—customer incentives and retention assets;
—unearned revenue; and
—assessment of performance obligations around non-
connection based revenues.
Our audit procedures included:
—testing of revenue related key financial controls.
—performing cut-off testing over revenue by reconciling cash payments
received after balance date against the accounts receivable balances at
year-end to ensure these receipts have been recognised in the correct
financial period.
—independently confirming the accuracy of a sample of outstanding debtor
balances with Chorus customers.
—agreeing a sample of revenue adjustments recorded during the year to
authorised credit notes.
—assessing whether customer contract costs are appropriately capitalised
and subsequently amortised over the expected life of the relationship
with the customer.
—agreeing a sample of unearned revenue balances recorded at year-end
to invoices

Annual Report 202228
Other information
The Directors, on behalf of the Group, are responsible for
the other information included in the Annual Report.
Other information includes the Chorus’s operating,
marketing and regulatory overviews, management
commentary and disclosures relating to corporate
governance and statutory information. Our opinion on the
company and Group financial statements does not cover
any other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the company and group
financial statements our responsibility is to read the other
information and, in doing so, consider whether the other
information is materially inconsistent with the company and
group financial statements or our knowledge obtained in
the audit or otherwise appears materially misstated. If, based
on the work we have performed, we conclude that there is
a material misstatement of this other information, we are
required to report that fact. We have nothing to report in
this regard.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the
shareholders as a body. Our audit work has been undertaken
so that we might state to the shareholders those matters we
are required to state to them in the independent auditor’s
report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility
to anyone other than the shareholders as a body for our
audit work, this independent auditor’s report, or any of the
opinions we have formed.
Responsibilities of the Directors for the
consolidated financial statements
The Directors, on behalf of the Group, are responsible for:
—the preparation and fair presentation of the consolidated
financial statements in accordance with generally
accepted accounting practice in New Zealand (being
New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting
Standards;
—implementing necessary internal control to enable
the preparation of a consolidated set of financial
statements that is fairly presented and free from material
misstatement, whether due to fraud or error; and
—assessing the ability to continue as a going concern. This
includes disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless they either intend to liquidate or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
consolidated financial statements
Our objective is:
—to obtain reasonable assurance about whether the
consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error; and
—to issue an independent auditor’s report that includes our
opinion.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with ISAs
NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated
financial statements.
A further description of our responsibilities for the audit of
these consolidated financial statements is located at the
External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-
practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this
independent auditor’s report is David Gates.
For and on behalf of
KPMG
Wellington
22 August 2022

Annual Report 202229
Consolidated income statement
For the year ended 30 June 2022
Notes
2022
$M
2021
RESTATED
$M
Operating revenue9965955
Operating expenses10(290)(298)
Earnings before interest, income tax, depreciation and amortisation675657
Depreciation1,7(335)(333)
Amortisation2,3(92)(94)
Earnings before interest and income tax248230
Finance income–1
Finance expense4(142)(153)
Net earnings before income tax10678
Income tax expense14(42)(27)
Net earnings for the year6451
Earnings per share
Basic earnings per share (dollars)
170.140.11
Diluted earnings per share (dollars)170.110.09
Consolidated statement of comprehensive income
For the year ended 30 June 2022
Note
2022
$M
2021
RESTATED
$M
Net earnings for the year6451
Other comprehensive income
Items that will be reclassified subsequently to Income statement when specific conditions
are met net of tax
Movements in effective cash flow hedges
199662
Amortisation of de-designated cash flow hedges transferred to Income statement1955
Movement in cost of hedging reserve1910(7)
Other comprehensive income net of tax11160
Total comprehensive income for the year net of tax175111
The accompanying notes are an integral part of these consolidated financial statements.

Annual Report 202230
Consolidated statement of financial position
As at 30 June 2022
Notes
2022
$M
2021
RESTATED
$M
Current assets
Cash and call deposits
158853
Trade and other receivables11125122
Income tax receivable2723
Derivative financial instruments1994
Total current assets249202
Non-current assets
Derivative financial instruments
1912071
Trade and other receivables1112
Deferred tax asset14–93
Customer retention assets35959
Software and other intangible assets2152164
Network assets15,2655,269
Total non-current assets5,5975,658
Total assets5,8465,860
Current liabilities
Trade and other payables
12264278
Income tax payable–13
Lease payable51310
Derivative financial instruments19–1
Debt4190140
Total current liabilities excluding Crown funding467442
Crown funding72725
Total current liabilities494467
Non-current liabilities
Trade and other payables
121611
Deferred tax liability14369374
Derivative financial instruments19110106
Lease payable5174254
Debt42,1322,233
Total non-current liabilities excluding CIP and Crown funding2,8012,978
Crown Infrastructure Partners (CIP) securities6613545
Crown funding7909881
Total non-current liabilities4,3234,404
Total liabilities4,8174,871
Equity
Share capital
16682689
Reserves1960(51)
Retained earnings287351
Tot al e quit y1,029989
Total liabilities and equity5,8465,860
The accompanying notes are an integral part of these consolidated financial statements.
The consolidated financial statements are approved and signed on behalf of the Board.
Patrick Strange
Chair
Authorised for issue on 22 August 2022
Mark Cross
Chair, Audit and Risk Management Committee

Annual Report 202231
Consolidated statement of changes in equity
For the year ended 30 June 2022
Notes
Share capital
$M
Retained
earnings
$M
Hedging-related
reserves
$M
Total
$M
Balance at 1 July 2020 (RESTATED)666409(111)964
Comprehensive income
Net earnings for the year
–51–51
Other comprehensive income
Movement in cash flow hedge reserve
19––6262
Amortisation of de-designated cash flow hedges transferred to
Income statement
19––55
Movement in cost of hedging reserve19––(7)(7)
Total comprehensive income–5160111
Contributions by and (distributions to) owners:
Dividends
16–(109)–(109)
Supplementary dividends–(12)–(12)
Tax credit on supplementary dividends–12–12
Dividend reinvestment plan1623––23
Total transactions with owners23(109)–(86)
Balance at 30 June 2021 (RESTATED)689351(51)989
Comprehensive income
Net earnings for the year
–64–64
Other comprehensive income
Movement in cash flow hedge reserve
19––9696
Amortisation of de-designated cash flow hedges transferred to
Income statement
19––55
Movement in cost of hedging reserve19––1010
Total comprehensive income–64111175
Contributions by and (distributions to) owners:
Dividends
16–(128)–(128)
Supplementary dividends–(14)–(14)
Tax credit on supplementary dividends–14–14
Dividend reinvestment plan1631––31
Share buy-back16(38)––(38)
Total transactions with owners(7)(128)–(135)
Balance at 30 June 2022682287601,029
The accompanying notes are an integral part of these consolidated financial statements.

Annual Report 202232
Consolidated statement of cash flows
For the year ended 30 June 2022
Notes
2022
$M
2021
RESTATED
$M
Cash flows from operating activities
Cash was provided from/(applied to):
Receipts from customers
977982
Interest received–1
Payment to suppliers and employees(295)(322)
Taxation paid(14)(1)
Interest paid(98)(116)
Net cash flows provided from operating activities570544
Cash flows applied to investing activities
Cash was provided from/(applied to):
Purchase of network and intangible assets
(518)(647)
Disposal of network and intangible assets3–
Capitalised interest paid(2)(2)
Net cash flows applied to investing activities(517)(649)
Cash flows from financing activities
Cash was provided from/(applied to):
Payment of lease liabilities
(14)(8)
Crown funding (including CIP securities)81147
Proceeds from debt50510
Repayment of debt–(400)
Repurchase of shares(38)–
Dividends paid(97)(86)
Net cash flows provided from/(applied to) financing activities(18)163
Net cash flows3558
Cash at the beginning of the year53(5)
Cash at the end of the year158853
Reconciliation of net earnings to net cash flows from operating activities
Notes
2022
$M
2021
RESTATED
$M
Net earnings for the year6451
Adjustment for:
Depreciation of network assets
1362360
Amortisation of Crown funding7(27)(27)
Amortisation of software and other intangible assets26260
Amortisation of customer retention assets33438
Deferred income tax144524
Ineffective portion of changes in fair value of cash flow hedges4(7)(4)
Amortisation of non-cash finance expenses1011
CIP securities (notional) interest43934
Other5(18)
579529
Change in current assets and liabilities:
(Increase) / decrease in trade and other receivables
11(2)17
Increase / (decrease) in operating trade payables1210(6)
Increase in income tax receivable(4)(3)
Increase / (decrease) in income tax payable(13)7
(9)15
Net cash flows from operating activities570544
The accompanying notes are an integral part of these consolidated financial statements.

Annual Report 202233
Reconciliation of movements of liabilities and equity to net cash flows from financing activities
Debt
$M
Crown funding
$M
CIP securities
$M
Lease payable
$M
Share capital
$M
Retained earnings
$M
Balance at 1 July 2020 (RESTATED)2,322836461263666409
Movements from financing cash flows
Payment of lease liabilities
–––(8)––
Proceeds from debt5109750–––
Repayment of debt(400)–––––
Dividends paid–––––(86)
Total changes from financing cash flows1109750(8)–(86)
Other cash flows
Interest paid on leases
–––(20)––
Non-cash movements
Movements in fair value (including foreign
exchange rates)
(59)–––––
Transaction costs and amortisation related to
financing
–(27)34–––
Dividend reinvestment plan––––23(23)
Lease movements–––29––
Net earnings for the year ended 30 June 2021–––––51
Balance at 30 June 2021 (RESTATED)2,373906545264689351
Movements from cash flows
Payment of lease liabilities
–––(14)––
Proceeds from debt505427–––
Repurchase of shares––––(38)–
Dividends paid–––––(97)
Total changes from financing cash flows505427(14)(38)(97)
Other cash flows
Interest paid on leases
–––(15)––
Non-cash movements
Movements in fair value (including foreign
exchange rates)
(105)–––––
Transaction costs and amortisation related
to financing
4(27)39–––
Accruals–32–––
Dividend reinvestment plan––31(31)
Lease movements–––(48)––
Net earnings for the year ended 30 June 2022–––––64
Balance at 30 June 20222,322936613187682287
The accompanying notes are an integral part of these consolidated financial statements.

Annual Report 202234
Notes to the consolidated financial statements
Reporting entity and statutory base
Chorus includes Chorus Limited together with its subsidiaries.
Chorus is New Zealand’s largest fixed line communications
infrastructure business. It maintains and builds a network
predominantly made up of fibre and copper cables, local
telephone exchanges and cabinets.
Chorus Limited is a profit-oriented company registered in
New Zealand under the Companies Act 1993 and is a FMC
Reporting Entity for the purposes of the Financial Markets
Conduct Act 2013. Chorus Limited was established as a
standalone, publicly listed entity on 1 December 2011, upon its
demerger from Spark New Zealand Limited (Spark, previously
Telecom Corporation of New Zealand Limited). The demerger
was a condition of an agreement with Crown Infrastructure
Partners Limited (previously Crown Fibre Holdings) to enable
Chorus Limited to provide the majority of the Crown’s Ultra-Fast
Broadband (UFB). Chorus Limited is listed and its ordinary shares
are quoted on the NZX main board equity security market (NZX
Main Board) and on the Australian Stock Exchange (ASX) and
has bonds quoted on the NZX and ASX debt markets. American
Depositary Shares, each representing five ordinary shares (and
evidenced by American Depositary Receipts), are not listed but
are traded on the over-the-counter market in the United States.
These consolidated financial statements (“financial statements”)
have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (NZ GAAP) and Part 7 of
the Financial Markets Conduct Act 2013. They comply with
New Zealand equivalents to International Financial Reporting
Standards (NZ IFRS) as appropriate for profit-oriented entities,
and with International Financial Reporting Standards.
These financial statements are expressed in New Zealand dollars.
All financial information has been rounded to the nearest million,
unless otherwise stated.
The measurement basis adopted in the preparation of
these financial statements is historical cost, modified by the
revaluation of financial instruments as identified in the specific
accounting policies below and the accompanying notes.
The Directors have considered the impact of the COVID-19
pandemic on these financial statements and note no material
impact to the going concern basis on which they are prepared.
Accounting policies and standards
Accounting policies that summarise the measurement basis
used which are relevant to the understanding of the financial
statements are provided throughout the accompanying notes.
The accounting policies adopted and methods of computation
have been applied consistently throughout the periods
presented in these consolidated financial statements.
Reclassification and re-statement of comparatives
Where management have reclassified items in the financial
statements, the related comparative disclosures have been
adjusted to provide a like-for-like comparison.
Prior period restatement – Crown funding
Adjustments have been made to the financial statements
in relation to funding towards the cost of relocation of
communications equipment. This funding has historically
been recognised as a liability within Crown funding and then
recognised in earnings as a reduction to depreciation expense
on a systematic basis over the useful life of the asset the funding
was used to construct, which is consistent with the treatment
of other Crown funding such as RBI. Upon review of funding
streams and the accounting treatment of these streams during
the period, Chorus have identified that the purpose of the
funding is not for the construction of an asset, and therefore
should be recognised upon completion of relocation.
While there has not been a material error in net earnings in
any one year, the prior period has been restated to reflect the
appropriate accounting treatment.
Classification of interest paid on leases and revenue in
advance within the statement of cash flows
During the period interest paid on leases and revenue in advance
charged were reclassified within the statement of cash flows.
The changes provide more reliable and relevant information and
better reflect the nature of the cash flows. There has been no
impact on net cash flows.
The impact of the restatement and reclassifications the prior
periods is as follows:

Annual Report 202235
Year ended 30 June 2021
YEAR ENDED
30 JUNE 2021
$M
RESTATEMENT
INCREASE/
(DECREASE)
$M
RECLASSIFICATION
INCREASE/
(DECREASE)
$M
YEAR ENDED
30 JUNE 2021
RESTATED
$M
Consolidated income statement
Operating revenue
9478–955
Earnings before interest, income tax, depreciation and amortisation 649 8 – 657
Depreciation(331)(2)–(333)
Income tax expense(25)(2)–(27)
Net earnings for the year474–51
Basic earnings per share0.110.11
Diluted earnings per share0.080.09
Consolidated statement of financial position
Crown funding
955(49)–906
Income tax payable58–13
Retained earnings31041–351
Consolidated statement of cash flows
Cash received from customers
954820982
Payments to suppliers and employees(302)–(20)(322)
Interest paid(96)–(20)(116)
Payment of lease liabilities(28)–20(8)
Crown funding (including CIP securities)155(8)–147
Interest Rate Benchmark Reform
Interbank offered rates (“IBORs”) play an important role in global
financial markets. Market developments relating to the reliability
and robustness of some interest rate benchmarks has resulted in
the global regulatory community initiating various programmes
to develop alternative benchmarks (risk free rates) within certain
jurisdictions. These reforms have led to uncertainty about the
long-term viability of some interest rate benchmarks beyond
1 January 2022 under Interest Rate Benchmark Reform – Phase 2.
Chorus’ hedging activities expose it to EURIBOR. EURIBOR is not
subject to cessation following reform in 2019, however industry
guidance suggests it will remain appropriate only in the medium
term. As such, although there is no immediate impact of the
reform to Chorus, developments will continue to be monitored
to ensure any changes to EURIBOR are appropriately considered.
Accounting estimates and judgements
In preparing the financial statements, management has made
estimates and assumptions about the future that affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses
during the period. Actual results could differ from those estimates.
Estimates and assumptions are continually evaluated and are based
on experience and other factors, including macro-economic and
market factors, and expectations of future events that may have
an impact on Chorus. All judgements, estimates, and assumptions
are believed to be reasonable based on the most current set of
circumstances available to Chorus. The principal areas of judgement
in preparing these financial statements are set out below.
Network assets (note 1)
Assessing the carrying value of network assets for impairment
considerations which includes assessing the appropriateness
of useful life and residual value estimates of network assets, the
physical condition of the asset, technological advances, regulation
and expected disposal proceeds from the future sale of the asset.
Customer retention assets (note 3)
Assessing the carrying value of customer retention assets
for impairment considerations which includes assessing the
appropriateness of useful life, contract terms, revenue and
customer connections data.
Leases (note 5)
A significant portion of lease contracts contain options for
extension, which in turn require management to apply judgement
in assessing if these extensions are likely to be exercised.
Crown Infrastructure Partners (CIP) securities (note 6)
Determining the fair value of the CIP securities requires
assumptions on expected future cash flows and discount rates
based on future long dated swap curves.
Financial risk management (note 19 and 20)
Accounting judgements have been made in determining hedge
designation and the fair value of derivatives and borrowings.
The fair value of derivatives and borrowing are determined based
on valuation models that use forward-looking estimates and
market observable data, to the extent that it is available.

Annual Report 202236
Non-GAAP measures
Chorus use non-GAAP measures that are not prepared in
accordance with NZ IFRS. Chorus believes these non-GAAP
measures provide useful information to users of the financial
statements to assist in understanding the financial performance
of Chorus. These measures are also used internally to evaluate
the performance of Chorus and monitored for compliance
against debt covenants.
These measures should not be viewed in isolation or 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.
Earnings before interest and income tax (EBIT) and
earnings before interest, income tax, depreciation
and amortisation (EBITDA)
Chorus calculate EBIT by adding back finance expense and
income tax to, and subtracting finance income from, net
earnings. EBITDA adds back depreciation and amortisation
expense to EBIT. A reconciliation of EBIT and EBITDA is provided
below and based on amounts taken from, and consistent with,
those presented in the financial statements.
Year ended 30 June
2022
$M
2021
(RESTATED)
$M
Net earnings for the year reported under NZ IFRS6451
Add back: income tax expense4227
Add back: finance expense142153
Subtract: finance income–(1)
EBIT248230
Add back: depreciation335333
Add back: amortisation9294
EBITDA675657
Note 1 – Network assets
In the Consolidated statement of financial position, network
assets are stated at cost less accumulated depreciation and
any accumulated impairment losses. The cost of additions to
network assets and work in progress constructed by Chorus
includes the cost of all materials used in construction, direct
labour costs specifically associated with construction, interest
costs that are attributable to the asset, resource management
consent costs and attributable overheads.
Repairs and maintenance costs are recognised in the
Consolidated income statement as incurred. If the useful life
of the asset is extended or the asset is enhanced then the
associated costs are capitalised.
Estimating useful lives and residual values of network assets
The determination of the appropriate useful life for a particular
asset requires management to make judgements about,
amongst other factors, the expected period of service potential
of the asset, the likelihood of the asset becoming obsolete as a
result of technological advances, and the likelihood of Chorus
ceasing to use the asset in business operations.
Where an item of network assets comprises major components
having different useful lives, the components are accounted for
as separate items of network assets.
Where the remaining useful lives or recoverable values have
diminished due to technological, regulatory or market condition
changes, depreciation is accelerated. The assets’ residual values,
useful lives, and methods of depreciation are reviewed annually
and adjusted prospectively, if appropriate.
Depreciation is charged on a straight-line basis to write down
the cost of network assets to their estimated residual value over
their estimated useful life.
Estimated useful lives are as follows:
Fibre cables20-30 years
Ducts, manholes, and poles20-50 years
Copper cables10-30 years
Cabinets5-20 years
Property5-50 years
Network electronics2-25 years
Right of use assets10-50 years
Other2-10 years
Other network assets include motor vehicles, test instruments
and tools and plant.
An item of network assets and any significant part is
derecognised upon disposal or when no future economic
benefits are expected from its use. Where network assets are
disposed of, the profit or loss recognised in the Consolidated
income statement is calculated as the difference between the
sale price and the carrying value of the asset.
Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange
rates as at the dates of the initial transactions.
Land and work in progress are not depreciated. Work in progress
is reviewed on a regular basis to ensure that costs represent
future assets.

Annual Report 202237
30 June 2022
Fibre
cables
$M
Ducts,
manholes,
and poles
$M
Copper
cables
$M
Cabinets
$M
Property
$M
Network
electronics
$M
Right of
use assets
$M
Other
$M
Work in
progress
$M
Total
$M
Cost
Balance at 1 July 2021
2,4972,9652,4157154581,872301517911,407
Additions16619591617507–181641
Disposals––––(1)(160)(10)––(171)
Transfers from work in progress––––––––(219)(219)
Relinquishments and
modifications
––––––(64)––(64)
Balance at 30 June 20222,6633,1602,4247314741,762234514111,594
Accumulated depreciation
Balance at 1 July 2021
(842)(717)(2,111)(503)(289)(1,593)(79)(4)–(6,138)
Depreciation(122)(61)(61)(22)(19)(62)(15)––(362)
Disposals––––116010––171
Balance at 30 June 2022(964)(778)(2,172)(525)(307)(1,495)(84)(4)–(6,329)
Net carrying amount1,6992,38225220616726715011415,265
30 June 2021
Fibre
cables
$M
Ducts,
manholes,
and poles
$M
Copper
cables
$M
Cabinets
$M
Property
$M
Network
electronics
$M
Right of
use assets
$M
Other
$M
Work in
progress
$M
Total
$M
Cost
Balance at 1 July 2020
2,2762,7542,4096934351,811292516610,841
Additions2222116222867111265833
Disposals(1)–––(5)(6)(2)(1)–(15)
Transfers from work in progress––––––––(252)(252)
Balance at 30 June 20212,4972,9652,4157154581,872301517911,407
Accumulated depreciation
Balance at 1 July 2020
(729)(659)(2,048)(473)(275)(1,537)(64)(4)–(5,789)
Depreciation(114)(58)(63)(30)(18)(62)(15)––(360)
Disposals1–––46–––11
Balance at 30 June 2021(842)(717)(2,111)(503)(289)(1,593)(79)(4)–(6,138)
Net carrying amount1,6552,24830421216927922211795,269
There are no restrictions on Chorus’ network assets or any
network assets pledged as securities for liabilities.
At 30 June 2022 the contractual commitments for acquisition
and construction of the network assets was $79 million
(30 June 2021: $119 million).

Annual Report 202238
Crown funding
Chorus receives funding from the Crown to finance the capital
expenditure associated with the development of the UFB network
and other services. Where funding is used to construct assets, it is
offset against depreciation over the life of the assets constructed.
Refer to note 7 for information on Crown funding.
Impairment
The carrying amounts of non-financial assets including network
assets, software and other intangibles and customer retention
assets are reviewed at the end of each reporting period for any
indicators of impairment.
If any such indication exists, the recoverable amount of the
asset is estimated. An impairment loss is recognised in earnings
whenever the carrying amount of an asset exceeds its estimated
recoverable amount. Should the conditions that gave rise to the
impairment loss no longer exist, and the assets are no longer
considered to be impaired, a reversal of an impairment loss
would be recognised immediately in earnings. In the period to
30 June 2022, there was no impairment in relation to the costs
capitalised (30 June 2021: no impairment).
The recoverable amount is the greater of an asset’s value in use
and fair value less costs to sell. Chorus’ assets do not generate
independent cash flows and are therefore assessed from a single
cash-generating unit perspective. In assessing the recoverable
amount, the estimates of future cash flows are discounted to
their net present value using a discount rate that reflects current
market assessments of the time value of money and the risks
specific to the business.
Capitalised interest
Finance costs are capitalised on qualifying items of network
assets and software assets at an annualised rate of 4.00%
(30 June 2021: 4.25%). Interest is capitalised over the period
required to complete the assets and prepare them for their
intended use. In the current year finance costs totalling
$2 million (30 June 2021: $2 million) have been capitalised
against network assets and software assets.
Right of use assets
A right of use asset is recognised on commencement of a lease.
The right of use asset is initially measured at cost, which is made
up of the initial lease liability amount adjusted for any lease
payments made at or before the commencement date, plus any
initial direct costs incurred and an estimate of costs to remove
the underlying asset or to restore the underlying asset or the site
on which it is located, less any lease incentives received.
The right of use asset is subsequently depreciated using the
straight-line method until the assumed end of the lease term.
The right of use asset is periodically adjusted for certain
remeasurements of the lease liability.
Movements in right of use assets for the period are
presented below:
Right of use assets
Fibre cables
$M
Ducts, manholes,
and poles
$M
Property
$M
Total
$M
Balance 1 July 2020942177228
Additions–9211
Relinquishments––(2)(2)
Depreciation(1)(4)(10)(15)
Balance at 30 June 2021847167222
Additions–527
Relinquishments and modifications––(64)(64)
Depreciation(1)(4)(10)(15)
Balance at 30 June 202274895150
Property exchanges
Chorus has leased exchange space and commercial co-location
space owned by Spark which is subject to lease arrangements
(included within right of use assets). Chorus in turn leases
exchange space and commercial co-location space owned by
Chorus to Spark under an operating lease arrangement. 
During the period modifications were recognised to the
arrangement where Chorus is the lessee which resulted in a
reduction in the right of use asset associated with the lease.
Refer to note 5 for further information.
Note 1 – Network assets (cont.)

Annual Report 202239
Note 2 – Software and other intangible assets
Software and other intangible assets are initially measured
at cost. The direct costs associated with the development of
network and business software for internal use are capitalised
where project success is probable and the capitalisation
criteria is met. Following initial recognition, software and
other intangible assets are stated at cost less accumulated
amortisation and impairment losses. Software and other
intangible assets with a finite life are amortised from the date the
asset is ready for use on a straight-line basis over its estimated
useful life which is as follows:
Software2-10 years
Other intangibles 6-35 years
Other intangibles mainly consist of land easements.
Where estimated useful lives or recoverable values have
diminished due to technological change or market conditions,
amortisation is accelerated.
30 June 2022
Software
$M
Other intangibles
$M
Work in progress
$M
Total
$M
Cost
Balance at 1 July 2021
873622901
Additions55–50105
Disposals(10)––(10)
Transfers from work in progress––(55)(55)
Balance at 30 June 2022918617941
Accumulated amortisation
Balance at 1 July 2021
(736)(1)–(737)
Amortisation(62)––(62)
Disposals10––10
Balance at 30 June 2022(788)(1)–(789)
Net carrying amount130517152
30 June 2021
Software
$M
Other intangibles
$M
Work in progress
$M
Total
$M
Cost
Balance at 1 July 2020
788642836
Additions85–65150
Transfers from work in progress––(85)(85)
Balance at 30 June 2021873622901
Accumulated amortisation
Balance at 1 July 2020
(676)(1)–(677)
Amortisation(60)––(60)
Balance at 30 June 2021(736)(1)–(737)
Net carrying amount137522164
There are no restrictions on software and other intangible assets,
or any intangible assets pledged as securities for liabilities.
At 30 June 2022 the contractual commitment for acquisition
of software and other intangible assets was $2 million
(30 June 2021: $4 million).

Annual Report 202240
Note 3 – Customer retention assets
Customer retention costs are incremental costs incurred in
acquiring new contracts with new and existing customers that
Chorus expects are recoverable and are capitalised as customer
retention assets. These represent various costs including
commissions and incentives for customers to connect to the fibre
network. Following initial recognition, customer retention assets
are stated at cost less accumulated amortisation and impairment
losses. Customer retention assets have a finite life and are
amortised from the month that costs are capitalised on a straight-
line basis over the average connection life which is as follows:
New connections and migrations1-4 years
Customer incentives1 year
Customer retention assets are amortised to the Consolidated
income statement, either as amortisation expense or against
operating revenue, based on the nature of the specific
costs capitalised.
New connections
and migrations
$M
Customer
incentives
$M
Total
$M
Balance at 1 July 2020 (net carrying amount)54256
Additions37441
Amortisation to amortisation expense(34)–(34)
Amortisation to operating revenue–(4)(4)
Balance at 30 June 2021 (net carrying amount)57259
Additions31334
Amortisation to amortisation expense(30)–(30)
Amortisation to operating revenue–(4)(4)
Balance at 30 June 2022 (net carrying amount)58159
Note 4 – Debt
Debt is classified as non-current liabilities except for those with
maturities less than 12 months from the reporting date, which
are classified as current liabilities.
Debt is initially measured at fair value, less any transaction costs
that are directly attributable to the issue of the instruments.
Debt is subsequently measured at amortised cost using the
effective interest method. Some borrowings are designated in
fair value hedge relationships, which means that any change in
market interest and foreign exchange rates result in a change in
the fair value adjustment on that debt.
The weighted effective interest rate on debt including the effect
of derivative financial instruments and facility fees was 3.77%
(30 June 2021: 4.16%).
Due date
2022
$M
2021
$M
Syndicated bank facilitiesJul 2022190140
Euro medium term notes EUROct 2023828858
Euro medium term notes EURDec 2026464511
Fixed rate NZD BondsDec 2027200200
Fixed rate NZD BondsDec 2028500500
Fixed rate NZD BondsDec 2030154182
Less: facility fees(14)(18)
Total Debt2,3222,373
Current190140
Non-current2,1322,233
Syndicated bank facilities
As at 30 June 2022 Chorus had a $350 million committed syndicated facility on market standard terms and conditions (30 June 2021:
$350 million). The facility is held with banks that are rated A to AA-, based on Standard & Poor’s ratings. As at 30 June 2022, $190 million
of this facility was drawn down (30 June 2021: $140 million).

Annual Report 202241
Euro Medium Term Note (EMTN)
Face valueInterest rate
2022
$M
2021
$M
EUR 500 million1.13%828858
EUR 300 million0.88%464511
Chorus holds cross currency interest rate swaps to hedge the
foreign currency exposure to the EMTN. The cross currency
interest rate swaps entitle Chorus to receive EUR principal and
EUR fixed coupon payments for NZD principal and NZD floating
interest payments. The EUR cross currency interest rate swaps
(notional amount EUR 800 million) are partially hedged for the
NZD interest payments using interest rate swaps.
The EUR 500 EMTN cross currency interest rate swaps (notional
amount EUR 500 million) are partially hedged for the NZD interest
payments using interest rate swaps. The EUR 300 cross currency
interest rate swaps (notional amount EUR 300 million) are fully
hedged for the NZD interest payments using interest rates swaps.
The following table reconciles EMTN at hedged rates to EMTN
carrying value based on spot rates as reported under NZ IFRS.
EMTN at hedged rates is a non-GAAP measure and is not defined
by NZ IFRS:
2022
EUR 300
$M
2021
EUR 300
$M
2022
EUR 500
$M
2021
EUR 500
$M
EMTN (at carrying value)464511828858
Impact of fair value hedge40(2)11(9)
Impact of hedged rates used105(54)(64)
EMTN at hedged rates (non-GAAP measure)514514785785
The fair value of EMTNs is calculated based on the present value
of future principal and interest cash flows, discounted at market
interest rates at balance date and is determined using Level 2 of
the fair value hierarchy as described in Note 20. At balance date
the fair value of the EURO 500 million EMTN was $837 million
(30 June 2021: $878 million) compared to a carrying value of
$828 million (30 June 2021: $858 million) and the fair value
of the EUR 300 million EMTN is $461 million (30 June 2021:
$526 million) compared to a carrying value of $464 million
(30 June 2021: $511 million).
Fixed rate NZD bonds
Due dateInterest rate
2022
$M
2021
$M
Fixed rate NZD BondsDec 20271.98%200200
Fixed rate NZD BondsDec 20284.35%500500
Fixed rate NZD BondsDec 20302.51%154182
Total fixed rate NZD Bonds854882
The fixed rate on the 2030 NZD Bonds has been swapped to a
floating rate using interest rate swaps, creating a fair value hedge
which has a fair value of $154 million at balance date (notional
amount $200 million). This hedging relationship was entered to
comply with the Chorus Treasury Policy which does not allow
for greater than 70% of term debt to be subject to fixed interest
rates beyond a three year time period.
At 30 June 2022, Chorus had $900 million of unsecured,
unsubordinated debt securities (30 June 2021: $900 million).
Note 4 – Debt (cont.)

Annual Report 202242
Schedule of maturities
2022
$M
2021
$M
Current190140
Due one to two years828–
Due two to three years–858
Due three to four years––
Due four to five years464–
Due over five years8541,393
Total due2,3362,391
Less: facility fees(14)(18)
2,3222,373
No debt has been secured against assets, however there are
financial covenants and event of default triggers as defined
in the various debt agreements. During the current year
Chorus complied with the requirements set out in its financing
agreements (30 June 2021: complied).
Refer to note 20 for information on financial risk management.
Finance expense
2022
$M
2021
$M
Interest on syndicated bank facility65
Interest on EMTN5147
Interest on fixed rate NZD bonds3243
Ineffective portion of changes in fair value of cash flow hedges(7)(4)
Other interest expense2330
Capitalised interest(2)(2)
Total finance expense excluding CIP securities (notional) interest103119
CIP securities (notional) interest3934
Total finance expense142153
Other interest expense includes $15 million lease interest expense (30 June 2021: $20 million) and $7 million of amortisation arising
from the difference between fair value and proceeds realised from the swaps reset (30 June 2021: $7 million).
Note 4 – Debt (cont.)