Commerce Commission releases final expenditure decision for

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

Email: company.secretary@chorus.co.nz


STOCK EXCHANGE ANNOUNCEMENT


22August 2024
Commerce Commission releases final expenditure decision for PQP2

The Commerce Commission has released its final decision on Chorus’ capital and
operating expenditure allowances for fibre for the next four-year regulatory period from
January 2025.

The total capital expenditure allowance is $1,140 million (nominal), up from $1,126 million in
the 18 April draft decision. The total operating expenditure allowance is $790 million
(nominal), up from $691 million in the draft decision.

Chorus Chief Corporate & Regulatory Officer Julian Kersey welcomed improvements to the
draft decision that will benefit customers who rely on Chorus’ world-class fibre services.

“As requested by the Commission, we provided more information to support our proposal
and this has resulted in an uplift of both capital and operating allowances against the
Commission’s draft decision. We appreciate the Commission’s engagement through this
process and its careful consideration of the further evidence we provided. This recognises the
importance of essential fibre infrastructure in so many New Zealanders’ lives, both today and
in the future. We look forward to the final Price Quality decision due in Q4 2024, which will
reflect today’s decision.”

Chorus is still reviewing the details of today’s decision, but notes that key movements,
relative to the draft decision, include:
• A cost allocation methodology that applies more shared costs to fibre than the draft
decision, reflecting the declining share of copper in Chorus’ operations
• Smaller efficiency-related adjustments to network and non-network opex and IT
optimisation
• Approval of additional operating expenditure for self-insurance, advertising and
compliance
• Approval of additional capital expenditure for slotted core fibre replacement, customer
incentives, resilience and customer connections.

The Commission's final expenditure decision is available here.

Following today’s decision, Chorus expects to provide an update on its capital management
review at its full year results on Monday 26 August 2024.

Authorised by:

Katrina Smidt
Acting Chief Financial Officer

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

Vicki Gan
Media and Content Manager
Mobile: +64 (22) 075 0159
Email: vicki.gan@chorus.co.nz