Chorus Limited · NZX:CNU

Chorus — Shareholder Meeting (October 2015)

28 slides from Chorus's shareholder meeting presentation, Oct 27, 2015

  1. Slide 1: Annual Meeting 2015

    Annual Meeting 2015 27 October 2015 / PAGE 1

  2. Slide 2: Agenda

    Agenda > Chairman’s introduction and address, Patrick Strange > CEO address, Mark Ratcliffe > Resolutions > Shareholder discussion and questions > Afternoon tea / PAGE 2

  3. Slide 3: Your directors

    Your directors Patrick Strange Jon Hartley Prue Flacks Murray Jordan Mark Ratcliffe Keith Turner Anne Urlwin Clayton Wakefield / PAGE 3

  4. Slide 4: Chorus Executive team

    Chorus Executive team Mark Ratcliffe Ed Beattie Ian Bonnar Andrew Carroll Chief Executive Officer GM Infrastructure GM Corporate Relations Chief Financial Officer Tim Harris, Irene Lovejoy Vanessa Oakley Paula Earl-Peacock Executive Assistant General Counsel & Company Secretary GM Human Resources Ch

  5. Slide 5: Formalities

    Formalities > Notice of meeting > Quorum > Proxies / PAGE 5

  6. Slide 6: Patrick Strange, Chairman

    Patrick Strange Chairman / PAGE 6

  7. Slide 7: Broadband: The 4th utility

    Broadband: The 4th utility / PAGE 7

  8. Slide 8: Regulatory history vs share price

    Regulatory history vs share price > Chorus’ share price performance since demerger in 2011 has been dominated by regulatory decisions and processes Commission Commission draft UCLL releases benchmarking further draft FPP decision Commission Commission Commission final UBA final UCLL + releases draft

  9. Slide 9: Mark Ratcliffe, Chief Executive

    Mark Ratcliffe Chief Executive / PAGE 9

  10. Slide 10: Regulatory impact overshadows investment

    Regulatory impact overshadows investment FY15 v FY14 change > Net Profit After Tax of $91 million 39% > EBITDA of $602 million 7% > Revenue of $1,006 million 5% > Total fixed line connections increased to 1,794,000 1% > Broadband connections increased to 1,207,000 4% > Better broadband rollouts on t

  11. Slide 11: Reshaping our business

    Reshaping our business Expenses change year-on-year > 100+ initiatives; emphasis on restricting 8 860 Employees discretionary spend 840 6  focus on cash rather than value 820  proactive maintenance and IT separation 4 800 capex deferred 780 2  no dividend 760 0 740 FY13* FY14 FY15 Trade-offs from

  12. Slide 12: UFB build on track

    UFB build on track FY16: expect to complete Waiuku, Rotorua, Queenstown / PAGE 12

  13. Slide 13: World class networks

    World class networks > New Zealand fibre coverage moving past OECD average UFB Coverage goal > Completion of current fibre build should put NZ comfortably in OECD Average top 10 > VDSL coverage remains in the top 10 of OECD countries / PAGE 13

  14. Slide 14: Rapid fibre adoption

    Rapid fibre adoption 100% Technology adoption in NZ (% of households) Fibre uptake based on % addresses covered, given incremental build 90% 80% DSL/broadband 70% 75% 60% Sky TV 51% 50% 40% 30% Fibre 20% 15% 10% 8% 3% 0% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Years from launch

  15. Slide 15: Fastest fibre growth in OECD

    Fastest fibre growth in OECD Annual growth in fibre subs 300 250 200 150 100 50 0 -50 / PAGE 15

  16. Slide 16: 80 fold increase in fibre crews

    80 fold increase in fibre crews 2013 September 2015 / PAGE 16

  17. Slide 17: More customers buying premium fibre

    More customers buying premium fibre Mass market fibre by plan type - Sept > 39% of end users now on premium plans (100mbps or higher) > About half of new connections sold are premium plans <100Mbps 100Mbps 200Mbps Gigatown Education NGA Business / PAGE 17

  18. Slide 18: Large fibre order pipeline

    Large fibre order pipeline > Nearly 18,000 more UFB orders in process > 67% are scheduled for a future date or awaiting a date from the customer > The rest are mostly complex installations requiring consent and additional civil construction SDU = single dwelling unit P2P = point to point MDU = multi

  19. Slide 19: CEO’s scorecard

    CEO’s scorecard UFB and RBI • Consistently meeting our commitments • Capex well controlled • Huge demand for fibre • Gigatown won Supreme Award for Marketing Customer experience • Huge fibre demand putting pressure on the whole industry • More crews required • End to end process improvements needed

  20. Slide 20: Resolutions

    Resolutions / PAGE 20

  21. Slide 21: Ordinary business: Resolution 1

    Ordinary business: Resolution 1 > That Jon Hartley be re-elected as a director of Chorus. / PAGE 21

  22. Slide 22: Ordinary business: Resolution 2

    Ordinary business: Resolution 2 > That Prue Flacks be re-elected as a director of Chorus. / PAGE 22

  23. Slide 23: Ordinary business: Resolution 3

    Ordinary business: Resolution 3 > That Patrick Strange be elected as a director of Chorus. / PAGE 23

  24. Slide 24: Ordinary business: Resolution 4

    Ordinary business: Resolution 4 > That Murray Jordan be elected as a director of Chorus. / PAGE 24

  25. Slide 25: Ordinary business: Resolution 5

    Ordinary business: Resolution 5 > That the Board be authorised to fix the fees and expenses of KPMG as auditor. / PAGE 25

  26. Slide 26: Shareholder discussion and questions

    Shareholder discussion and questions / PAGE 26

  27. Slide 27: Disclaimer

    Disclaimer Forward-Looking Statements > This presentation may contain forward-looking statements regarding future events and the future financial performance of Chorus, including forward looking statements regarding industry trends, regulation and the regulatory environment, strategies, capital expe

  28. Slide 28: Thank you for attending

    Thank you for attending / PAGE 28

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