Chorus submits 2024 fibre regulatory report

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

Email: company.secretary@chorus.co.nz


STOCK EXCHANGE ANNOUNCEMENT

30 May 2025

Chorus submits 2024 fibre regulatory report

Chorus has published its Information Disclosure for fibre fixed line access services
(FFLAS) for the 2024 disclosure year. This disclosure will also be submitted to the
Commerce Commission.

As part of this process, Chorus has calculated that the regulated asset base (RAB) was
steady at approximately $5.9 billion during 2024. Within this total, the core RAB grew to
$4.9 billion, while the Financial Loss Asset reduced to just under $1 billion.

As expected, Chorus has calculated it was very close to earning its maximum allowable
revenue of $809 million for 2024. Wash-up adjustments across the three-year regulatory
period result in a total wash-up balance of $153.5 million that is carried forward to 2025.

Details of these calculations and other summary financial information are provided in the
attached presentation. All calculations are subject to Commerce Commission review.

The full Information Disclosure reporting schedules are available at:
https://company.chorus.co.nz/disclosures


Authorised by:

Drew Davies
Chief Operating Officer

ENDS


For further information:

Nathan Beaumont
Head of Corporate Relations
Phone +64 (4) 896 4352
Email: Nathan.beaumont@chorus.co.nz

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

---

INFORMATION
DISCLOSURE
UPDATE

2
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 results to
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 2024 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.
INFORMATION DISCLOSURE UPDATE – MAY 2025

3
INFORMATION DISCLOSURE UPDATE – MAY 2025
Information Disclosure overview
>Chorus provides Information Disclosure (ID) reporting to the Commerce Commission for each calendar year.
•this presentation is a summary of the ID reporting and includes information on a six-monthly basis to assist with
financial year comparisons.
•the full schedules submitted by Chorus are available at https://company.chorus.co.nz/disclosures
>Please note that:
•RAB and wash-up movement calculations are subject to Commerce Commission review
•regulatory categories for operating expenditure are different from Chorus’ financial reporting categories
•all historical financial numbers are nominal
•the ID schedules include varying combinations of PQ FFLAS and ID-only FFLAS data
PQ FFLAS:
Chorus fibre fixed line access
services/assets subject to price-
quality RAB and MAR regime
ID only FFLAS:
Chorus fibre fixed line access
services/assets not
subject to price-
quality regime but requiring
information disclosure (e.g. assets
in other local fibre company areas)

4
INFORMATION DISCLOSURE UPDATE – MAY 2025
Regulated Asset Base (RAB) steady at $5.9 billion
>Chorus’ fibre RABremains at $5.9 billion*in 2024
•the core RAB grew $120 million to $4.9 billion
•the Financial Loss Asset (FLA) reduced by $150m to $0.99
billion
•*the opening 2024 RAB is $20m higher than the closing
2023 RAB due to asset allocator updates (see next slide)
>The key RAB movements were driven by:
•depreciation increased from $492m to $508m in 2024
•revaluations reduced to $131m from $266m in 2024 because
of reduced inflation rates (2.22% vs 4.66% in 2023)
•$306m of RAB assets were commissioned in 2024, compared
to $358m in 2023
•$41m of shared assets were added to the core RAB, down
from $53m in 2023
4,791
4,911
1,142
-508
131
306
41
992
2024 RAB movement ($m)
Core RABFinancial Loss Asset
5,933
5,903

5
INFORMATION DISCLOSURE UPDATE – MAY 2025
RAB movements for 2024 ID year
ComponentCore RAB
$m (nominal)
Financial Loss
Asset (FLA)
$m (nominal)
Notes
Opening RAB (1 January 2024)4,7911,142
The closing RAB at 31 Dec 2023 included a forecast asset allocator
adjustment. The opening RAB at 1 Jan 2024 is $20m higher due to updates
for actual asset allocators.
less Depreciation(333)(175)
FLA depreciation is diminishing value and the core RAB is straight-
line.Assets start depreciating the regulatory year after commissioning.
plus Revaluations10625
2.22% actual inflation in the December quarter versus forecast 2.13% used
in the final decision for 2024 MAR.
plus Assets commissioned3060
Amount is net of $35m capital contributions
plus Adjustment resulting from
asset allocation
410
An upwards adjustment reflects a greater proportion of shared assets being
attributable to fibre (due to differences in allocations drivers such as
revenues and connections) than was forecast for the opening RAB in 2024.
Total closing RAB value
(31 Dec 2024)
4,911992
NOTE: RAB movements do not affect the PQP2 MAR.

6
INFORMATION DISCLOSURE UPDATE – MAY 2025
PQP1 MAR wash-up balance of $153.5m
DescriptionWash-up
$m (nominal)
Revenue
$m (nominal)
Notes
2024 maximum allowable revenue808.7PQP1 decision updated in 2023 for pass through costs and CPI
forecasts.
Less 2024 FFLAS revenue received(807.8)
2024 MAR under-earn0.9
CPI on the price path for 2024 16Actual CPI of 2.92% (since 2023 update) via in-period smoothing.
Cost allocators18.4Previously forecast cost inputs (e.g. totex, connections and data
traffic) updated for actuals in the period.
Initial RAB true-up9.7MAR adjustment to reflect increased allocation of shared assets in
the final RAB decision.
Connection capex1.9Commission requires connection capex to be included in the final
year PQP2 wash-up calculation for the three years.
Individual capex proposal for 20231.0Commission approved individual capex proposal for customer
incentives for 2023.
Crown financing benefit0.2Reflects lower Crown financing balance than forecast.
Pass through costs under-forecast0.2
Actual pass-through costs of $16.1m versus forecast $15.9m.
47.447.4
2024 wash-up balance48.3
2023 wash-up balance: smoothed
2022 wash-up balance: smoothed
53.8
51.4
The 2022 and 2023 wash-up balances wereadjusted as part of the
in-period smoothing process plus connection capex.
TOTAL PQP1 wash-up carried forward153.5The wash-up balance is rolled forward each year using the post-tax
WACC as the time-value of money to preserve NPV neutrality.

7
INFORMATION DISCLOSURE UPDATE – MAY 2025
Operating Expenditure
Opex
categoriesSub-categories
H1
2022
H2
2022
H1
2023
H2
2023
H1
2024
H2
2024
Customer Customer operations
(3)(4)
(3)(3)00
Product, Sales &
Marketing
1113
14141414
NetworkMaintenance
1414
18181718
Network operations
89
11131214
Operating costs
44
4432
SupportAsset management
1111
1111911
Corporate
2021
23222421
Technology
1310
11111110
TOTAL ($m)
7878
89909090
Pass through
costs ($m)
88
7879

8
INFORMATION DISCLOSURE UPDATE – MAY 2025
Capital Expenditure (excludes contributions)
Capex
Sub-categories
H1
2022
H2
2022
H1
2023
H2
2023
H1
2024
H2
2024
Extending the
network
Augmentation3244816
New property developments81412131014
UFB communal2950000
Installations
Complex112212
Standard798372846351
IT and support
Business IT57111078
Corporate31000
Network & Customer101413132323
Network capacity
Access992516910
Aggregation712418511
Transport47551511
Network sustain &
enhance
Field sustain7411248
Relocations122213
Resilience128121
Site sustain779865
TOTAL ($m)
174169179178154163
includes ~10k premises
fibre expansion
programme
2024 excludes
provisioning, systems and
service desk costs (now
included in Network &
Customer line below)

9
INFORMATION DISCLOSURE UPDATE – MAY 2025
Indicative EBITDA and capex
>the tables below provide an indicative split of EBITDA and capital expenditure between regulated Price-Quality FFLAS (PQ
FFLAS) and Other (i.e. non-PQ FFLAS) activity over the 2022-2024 calendar years (Price-Quality Period 1)
•capital contributions are deducted from asset values for PQ-FFLAS and are included as Other revenue together with non-
FFLAS capital contributions
•there will be a step up in FFLAS opex in PQP2 reflecting changes to shared cost allocators in the PQP2 decision
•FFLAS opex will be increased further through the cost allocator wash-up if the copper shut down in CNU fibre areas is
faster than PQP2 forecasts
PQ FFLASH1
2022
H2
2022
H1
2023
H2
2023
H1
2024
H2
2024
Revenue323344362387403407
Opex(78)(78)(89)(90)(90)(90)
Pass through costs(8)(8)(7)(8)(7)(9)
EBITDA237258266289306308
Capex (net of
capital
contributions and

leases)
172167176175153162
Capital
contributions
252717241717
OtherH1
2022
H2
2022
H1
2023
H2
2023
H1
2024
H2
2024
Revenue15914313111610493
Opex(68)(59)(67)(58)(57)(55)
EBITDA918464584738
Capex (net of
capital
contributions)
302636271713
Capital
contributions*
223687
*2024 includes government grants in the capital contributions line