Chorus submits 2025 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

29 May 2026

Chorus submits 2025 fibre regulatory report

Chorus has today published its Information Disclosure for fibre fixed line access services
(FFLAS) for the 2025 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) increased
from $5.9 billion in 2024 to approximately $6.0 billion at the end of 2025. Within this
total, the core RAB was $5.1 billion in 2025, up $0.2 billion from 2024, while the Financial
Loss Asset was lowered to $0.9 billion in 2025.

As expected, Chorus has calculated that it under-earned its maximum allowable revenue
for 2025. Revenues were $101 million lower than allowed in 2025 and, together with
various other adjustments, this results in a wash-up balance of $76.3 million that will be
carried forward to PQP3.

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/about/regulatory/price-quality-information-disclosures


Authorised by:

Drew Davies
Chief Operating Officer

ENDS


For further information:

Shannon Goldstone
Head of Corporate Affairs & Sustainability
Phone: 0800 763 000
Email: Shannon.Goldstone@chorus.co.nz

Aleida White
Head of Investor Relations
Mobile: +64 21 155 8837
Email: Aleida.White@chorus.co.nz

---

INFORMATION DISCLOSURE UPDATE – MAY 2026
Information
Disclosure
Update
For the twelve months ended 31 December 2025
Unleashing potential through connectivity
Enabling better futures for Aotearoa

INFORMATION DISCLOSURE UPDATE – MAY 2026
Disclaimer
2
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 financial statements for the year to 30 June 2025 and Chorus’ interim
consolidated financial statements for the six months ended 31 December 2025 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. EBITDA is reconciled in the Notes to the financial statements.
•
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 2026
3
Information Disclosure overview
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: Chorus fibre fixed line access services/assets subject
to price-qualityRAB 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)
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

INFORMATION DISCLOSURE UPDATE – MAY 2026
Regulated Asset Base (RAB) at $6.0 billion
4
Chorus’ fibre RAB grew to $6.0b in 2025:
•
the core RAB grew $221m to $5.1b
•
the Financial Loss Asset (FLA) reduced by $130m to $862m
•
the 2025 Opening Core RAB is $10m higher than the closing
2024 RAB due to asset allocator updates (see next slide)
The key year-on-year RAB movements were driven by:
•
depreciation reduced from $508m in 2024 to $464m in 2025
•
revaluations increased from $131m in 2024 to $183m in 2025
due to increased inflation rates (2.22% in 2024 vs 3.11% in
2025)
•
$343m of RAB assets were commissioned in 2025, compared
to $306m in 2024
•
$29m of shared assets were added to the core RAB, compared
to $41m in 2024
2025 RAB MOVEMENT ($m)
4,921
5,142
992
862
(464)
183
343
29
Opening RAB Depreciation RevaluationsAssets
Commissioned
Shared Assets Closing RAB
Core RABFinancial Loss Asset
5,913
6,004

INFORMATION DISCLOSURE UPDATE – MAY 2026
RAB movements for 2025 ID year
5
Notes
Financial Loss
Asset (FLA)
$m
(nominal)
Core RAB
$m
(nominal)
Component
The closing RAB at 31 December 2024 included a forecast asset
allocator adjustment. The opening RAB at 1 January 2025 is
$10m higher due to updates for actualasset allocators
9924,921Opening RAB (1 Jan 2025)
FLA depreciation is diminishing value and the core RAB is now
depreciated using a tilted annuity from PQP2. Assets start
depreciating the regulatory year after commissioning
(161)(303)Less:Depreciation
3.11% actual inflation in the December quarter versus forecast
2.20% used in the final decision for 2025 MAR
31152Plus:Revaluations
Amount is net of $32m capital contributions-343Plus:Assets commissioned
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 2025
-29
Plus:Adjustment resulting from
asset allocation
8625,142
Total closing RAB value
(31 Dec 2025)

INFORMATION DISCLOSURE UPDATE – MAY 2026
2025 MAR wash-up balance of $76.3 million
6
Notes
Revenue
$m
(nominal)
Wash-up
$m
(nominal)
Description
PQP2 decision updated in 2025 for pass through cost and CPI
forecasts
963.9
2025 maximum allowable
revenue
(863.2)Less: 2025 FFLAS revenue received
100.72025 MAR under-earn
Previously forecast cost inputs (e.g. total expenditure,
connections and data traffic) updated for actuals in the period
0.9Cost allocators
Actual pass through costs of $18.9m versus forecast $19.4m(0.5)Pass through costs under-forecast
Actual CPI of 2.84%* via in-period smoothing(3.6)CPI on the price path for 2025
True-up of PQP2 final decision RAB to replace forecasts with
actuals
(21.2)PQP2 RAB true-up
No individual capex proposals in 2025-Individual capex proposal
(24.4)
The wash-up balance is rolled forward each year using the post-
tax WACC as the time-value of money to preserve NPV neutrality
76.32025 wash-up balance
* This differs from the 3.11% actual CPI referenced in previous slide due to different Commission methods for calculating CPI for the price path and CPI for RAB indexation

INFORMATION DISCLOSURE UPDATE – MAY 2026
Operating expenditure
7
PQP2PQP1
H2 2025H1 2025H2 2024H1 2024H2 2023H1 2023Sub-categoriesOpex categories
(1)(1)--(3)(3)Customer operations
Customer
131514141414Product, sales & marketing
151618171818Maintenance
Network141214121311Network operations
572344Operating costs
661191111Asset management
Support252621242223Corporate
171610111111Technology
949790909089Total ($m)
9109787Pass through costs ($m)

INFORMATION DISCLOSURE UPDATE – MAY 2026
Capital expenditure (excludes contributions)
8
PQP2PQP1
H2 2025H1 2025H2 2024H1 2024H2 2023H1 2023Sub-categoriesCapex categories
62316844Augmentation
Extending the network
121414101312New property developments
112122Complex
Installations
425151638472Standard*
89871011Business IT
IT and Support-----1Corporate
212123231313Network & customer
9151091625Access
Network capacity67115184Aggregation
413111555Transport
7684211Field sustain
Network sustain &
enhance
333122Relocations
111218Resilience
8145689Site sustain
129178163154178179Total ($m)
* Change from 2024 excludes provisioning, systems and service desk costs (now included in Network & customer line)

INFORMATION DISCLOSURE UPDATE – MAY 2026
9
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 2023-2025 calendar years:
•
capital contributions are deducted from asset values for PQ-FFLAS and are included as Other revenue together with non-FFLAS capital
contributions
•
there is 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
PQP2PQP1
H2
2025
H1
2025
H2
2024
H1
2024
H2
2023
H1
2023
PQ FFLAS
434429407403387362Revenue
(94)(97)(90)(90)(90)(89)Opex
(9)(10)(9)(7)(8)(7)
Pass through
costs
331322308306289266EBITDA
127177162153175176
Capex (net of
capital
contributions
and leases)
171517172417
Capital
contributions
PQP2PQP1
H2
2025
H1
2025
H2
2024
H1
2024
H2
2023
H1
2023
Other
728493104116131Revenue
(43)(46)(55)(57)(58)(67)Opex
293838475864EBITDA
121813172736
Capex (net of
capital
contributions)
247863
Capital
contributions