Chorus Limited · NZX:CNU
Chorus — HY26 Earnings Presentation
34 slides from Chorus's earnings presentation, February 2026
Slide 1: HY26 Results Presentation
HY26 Results Presentation For the six months ended 31 December 2025 Unleashing potential through connectivity Enabling better futures for Aotearoa HY26 RESULTS PRESENTATION
Slide 2: Disclaimer
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 inv
Slide 3: Agenda
Agenda Mark Aue, CEO • HY26 overview 4-5 • Lead 6-8 • Expand 9 • Adapt 10 • Pioneer 11-12 Drew Davies, COO • Financial results 14-16 • Capex, leverage and debt 17-20 • Dividend and FY26 guidance 21 Mark Aue, CEO • Digital equity and outlook 23-25 Appendices • Our strategy 27 • Pricing and market dat
Slide 4: HY26 Overview
HY26 Overview +3% vs HY25 +3% vs HY25 +$20m vs HY25 +4% vs HY25 Robust half year performance delivered in NET EARNINGS HY26 vs HY25 through FIBRE CONNECTIONS (k) EBITDA1 ($m) /(LOSS) ($m) DIVIDEND (cps) efficiencies and discipline HY24 1,062 HY24 347 HY24 5 HY24 19.0 • Fibre revenue growth 2H24 +7%,
Slide 5: Long term strategy, well set up for Horizon 2
Long term strategy, well set up for Horizon 2 BUILDING MOMENTUM AS WE ENTER FOUR-YEAR HORIZON 2 PHASE Foundations set, continuing to build capability through new leadership. Growth options in fibre remain. Alive to infrastructure opportunities but will take time to commercialise. PROGRESS • clear cu
Slide 6: Fibre growth continues with uptake now at 72.4%
Fibre growth continues with uptake now at 72.4% FIBRE UPTAKE IN CHORUS FIBRE AREA CHANGE IN MASS MARKET CONNECTIONS IN CHORUS (% ADDRESSES PASSED) FIBRE AREA (‘000s) Addresses % passed uptake 73 20 1,500,000 72.5 1,250,000 72 15 17 14 1,000,000 71.5 0 750,000 -4 71 -5 -10 500,000 -6 -6 70.5 250,000
Slide 7: >4 out of 5 customers on 500Mbps plan or higher
>4 out of 5 customers on 500Mbps plan or higher FIBRE CONNECTIONS BY PLAN* Fibre connection trends continue to improve 1,200,000 • stable demand for 1Gbps+ and strong demand for HFS 100Mbps • total fibre churn reducing, plateauing of FWA? 1,000,000 15% • Residential speed boost mid-June 2025: 800,00
Slide 8: Data usage continues to accelerate; 722GB in Jan’26
Data usage continues to accelerate; 722GB in Jan’26 MONTHLY AVERAGE DATA USAGE PER CONNECTION DATA TRAFFIC (GIGABYTES) (PETABYTES*) 699 +813 9,140 700 petabytes 600 = 31,000 years of HD +9.8% 500 streaming 400 339 300 8,327 200 100 0 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 CY24 CY25 Copper Fibre • monthl
Slide 9: Infrastructure – disciplined investment approach
Infrastructure – disciplined investment approach New Property Development: Data centres (DC’s): • 11k+ lots passed in HY26 with 23k+ lots in delivery • Express Connect now in 5 DC’s giving businesses pipeline for H2. We remain on track to deliver 20- fast & reliable way to move their data from order
Slide 10: Becoming a great network operator; regulatory update
Becoming a great network operator; regulatory update OPERATING MODEL EVOLUTION, TEAM CHANGES REGULATION • Focus on efficiency and simplicity driving YoY cost reductions, Copper services deregulation: FTE’s of 751 vs 849 at Dec’24 • Actively working with Government to establish a clear, • Copper reti
Slide 11: Chorus fibre area copper retirement by mid-2026
Chorus fibre area copper retirement by mid-2026 REMAINING COPPER LINES COPPER – REACTIVE SPEND BY AREA (CONNECTIONS) ($m) 157,000 8 45,000 122,000 6 28,000 92,000 20,000 14,000 13,000 63,000 4 11,000 3,000 6,000 92,000 2 80,000 68,000 54,000 0 FY24 HY 2 5 F Y2 5 HY2 6 Chorus UFB LFC UFB Rest of NZ (
Slide 12: Driving strategic opportunities
Driving strategic opportunities Copper recycling • Transitioned from successful trial, now operationalised with activity to ramp up from 2H FY26 • Expected net proceeds of $30m-$50m over ~3-7 years, subject to market prices, extraction costs etc • Historic high for metals pricing would see returns a
Slide 13: Financial performance
Financial performance HY26 RESULTS PRESENTATION
Slide 14: Income Statement
Income Statement H1 H2 H1 FY26 FY25 FY25 $m $m $m COMMENTARY: H1 FY26 vs H1 FY25 Operating revenue 506 514 500 • fibre connection & ARPU growth partially offset by legacy revenue decline Operating expenses (149) (155) (154) • cost savings from changed op model, lower consulting costs & lower copper
Slide 15: Revenue
Revenue H1 H2 H1 FY26 FY25 FY25 $m $m $m COMMENTARY: H1 FY26 vs H1 FY25 • ARPU grew to $57.73 in HY26 from $55.34 in HY25 noting that Fibre broadband (GPON) 387 384 361 price changes were deferred by a quarter in HY25 to Jan’25; fibre connections +31k / +3% Fibre premium (P2P) 32 32 32 Copper connec
Slide 16: Expenses
Expenses H1 H2 H1 FY26 FY25 FY25 $m $m $m COMMENTARY: H1 FY26 vs H1 FY25 Labour 41 42 43 • lower headcount from operating model changes, partly offset by lower labour capitalisation rate 42% vs HY25:45% Network maintenance 18 22 25 • lower copper faults from lower copper connections (truck rolls -22
Slide 17: Capex
Capex H1 H2 H1 GROSS CAPEX BY CATEGORY FY26 FY25 FY25 $m $m $m 216 Sustaining capex* 79 111 94 199 Discretionary growth capex 79 105 105 158 105 105 Gross capex 158 216 199 79 Less: Third-party contributions** (20) (16) (24) 111 94 79 Net capex 138 200 175 H1 FY26 H2 FY25 H1 FY25 • gross capex reduc
Slide 18: RAB and Non-RAB capex, total RAB $5.98b
RAB and Non-RAB capex, total RAB $5.98b* H1 H2 H1 H1 H2 H1 RAB capex* FY26 FY25 FY25 Non-RAB capex* FY26 FY25 FY25 $m $m $m $m $m $m Extending the network – growth 27 43 45 Copper - growth - (1) 2 Installations – growth 49 59 54 Copper – sustaining 3 4 4 IT & Support – sustaining 29 34 27 Other – gr
Slide 19: Leverage Profile
Leverage Profile Bank Covenant Calculation* 31 Dec 2025 30 Jun 2025 DEBT MATURITY PROFILE ($m) As at $m $m Borrowings 2,963 2,779 + PV of CIP debt securities 252 242 112 (senior) 105 + Net leases payable 158 162 Sub total 3,373 3,183 820 822 364 325 - Cash 161 81 207 500 Total net debt 3,212 3,102 N
Slide 20: Crown Funding Securities – divestment
Crown Funding Securities – divestment On 17 December 2025, the NZ Government announced that NIFFCo equity securities they would proceed with the sale process for UFB funding securities • Unique class of security with no voting rights but a repayment preference on liquidation • The Minister of Financ
Slide 21: Interim dividend 24cps; FY26 guidance range unchanged
Interim dividend 24cps; FY26 guidance range unchanged DIVIDEND (cps) H1 H2 H1 60 Capital Management ($m) FY26 FY25 FY25 57.5 $m $m $m 47.5 42.5 Net cash flows from 228 302 257 34.5 operating activities* 35 28.5 25.5 Less: Sustaining capex (79) (113) (92) 21 24 Free cash flow for capital 23 149 189 1
Slide 22: Outlook
Outlook 22 HY26 RESULTS PRESENTATION
Slide 23: Driving digital equity
Driving digital equity ENABLING BETTER FUTURES THROUGH ACCESS AND AFFORDABILITY • Opportunity for scaled impact: fibre foundational to NZ's social and economic wellbeing; nearly 400,000 households unable to afford meaningful digital access* • Clear role for Chorus: Chorus well positioned to make a O
Slide 24: Optimising for an all-fibre future
Optimising for an all-fibre future • fibre price change 1 January 2026 • expect clarity on regulatory settings with decisions pending by Q3 • scalability of fibre handles demand shift, eg increased software updates & AI • ongoing iteration of operating model as Chorus settles into four-year Horizon
Slide 25: Simpler, more efficient, more competitive
Simpler, more efficient, more competitive • Robust results against current macro backdrop • Accelerating Horizon 2 with focus on growth, simplicity & efficiency • Continue to target 80% fibre uptake by 2030 • Copper retirement tangibly in sight • Innovation is a key differentiator in fibre’s superio
Slide 26: Appendix
Appendix 26 HY26 RESULTS PRESENTATION
Slide 27: Our strategy
Our strategy HY26 RESULTS PRESENTATION
Slide 28: Pricing data
Pricing data Price prior to Price from Product / Service 1 Jan’26 1 Jan'26 $38.00 $40.50 Home Fibre Starter (100/20Mbps) (Retail price cap $65) (Retail price cap $70) Home Fibre 100Mbps $53.96 $57.52 Home Fibre 500Mbps $56.28 $58.73 Home Fibre 920Mbps $66.19 $69.50 Home Hyperfibre 2000Mbps $74.90 $7
Slide 29: Connections
Connections Variance 30 Sep 2024 31 Dec 2024 31 Mar 2025 30 Jun 2025 30 Sep 2025 31 Dec 2025 31 Dec 2025 vs 30 Sep 2025 Baseband copper 40,000 34,000 29,000 24,000 20,000 14,000 (6,000) (no broadband) Copper ADSL (includes 49,000 44,000 39,000 34,000 29,000 24,000 (5,000) naked) VDSL 49,000 44,000 3
Slide 30: Connections by zone
Connections by zone* QUARTERLY CHANGE (‘000s) BY ZONE -10 -5 0 5 10 Other fibre Copper lines (no broadband) 3,000 Copper connections are declining company as Chorus retires its copper 0 (LFC) zone Copper broadband lines 3,000 network and customers migrate Q2 FY25 -2 -1 to Local Fibre Company and fix
Slide 31: Market composition
Market composition NZ BROADBAND MARKET – BY RETAILER NZ BROADBAND MARKET – BY TECHNOLOGY 2,000,000 2,000,000 1,500,000 1,500,000 1,000,000 1,000,000 500,000 500,000 0 0 Chorus xDSL Chorus mass market fibre Chorus premium fibre Local fibre companies (UFB) Spark One 2degrees (incl Vocus) Mercury (incl
Slide 32: Accelerated depreciation on Copper assets
Accelerated depreciation on Copper assets COPPER ASSETS - ACCELERATED DEPRECIATION 120 100 Chorus fibre area copper cables fully 80 depreciated in FY25 60 40 20 0 FY22 FY23 FY24 FY25 FY26e FY27e Rural area (cables, poles) LFC area (cables, ducts, poles) Chorus area (cables) Estimate • significant st
Slide 33: Interest rate hedges
Interest rate hedges Bond Amount NZ$m Current hedge profile EMTN 2026 97 100% fixed for life of bond at 3.39% NZD 2027 200 100% fixed for life of bond at 1.98% NZD 2028 500 100% fixed for life of bond at 6.21% from Dec 2023 Swapped to a margin over floating (BKBM) through cross currency interest rat
Slide 34: New Zealand macro-economic data
New Zealand macro-economic data Annual CPI (%) 8.0% • Unemployment rate: 5.4% (Dec-25) 6.0% • Annual inflation rate: 3.1% (Dec-25) • New dwellings consented: 36,619 (12 months ended Dec- 4.0% 3.1% 25, up 9.0% vs 12 months ended Dec-24) 2.0% • Net migration gain: 10,700 (12 months ended Nov-25) 0.0%