Chorus Limited · NZX:CNU
Chorus — Investor Day (December 2024)
90 slides from Chorus's investor day presentation, Dec 2, 2024
Slide 1: Chorus Investor Day 2024 stock exchange announcement
Chorus Limited Level 10, 1 Willis Street P O Box 632 Wellington New Zealand Email: company.secretary@chorus.co.nz STOCK EXCHANGE ANNOUNCEMENT 2 December 2024 For personal use only Chorus Investor Day 2024 The attached presentation materials will be delivered at Chorus’ Investor Day commencing at 12:
Slide 2: Announcement continued: growth opportunities and FY25 guidance
• considering post-copper optionality for other land and buildings outside of UFB areas, with a current net book value of about $75 million • launching IoT asset management solutions under a new brand, Neura • developing an alternative revenue model to scale EdgeCentres • an exclusive memorandum of
Slide 3: Investor relations contacts
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 For personal use only
Slide 4: Chorus Investor Day 2024 - Agenda
Chorus Investor Day 2024 - Agenda 12:45 Welcome Mark Aue CEO 12:50 Board perspective Mark Cross Chair 1:00 Strategy Mark Aue CEO For personal use only 1:20 Global broadband trends Rupert Wood Analysys Mason – Research Director 1:40 Data demand Kurt Rodgers Network Strategy Manager 2:00 Achieving 80%
Slide 5: Chorus Investor Day 2024
INVESTOR CHMRUS Day o024
Slide 6: 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. For personal use only • Includes forward-looking statements. These statements are not guarantees or predictions of future
Slide 7: CEO Mark Aue
For personal use only CEO MARK AUE CHORUS 3
Slide 8: Why we've invited you here today
Why we’ve invited you here today Provide For personal use only greater Transitioning Market clarity and from builder context has transparency to ‘Great shifted. Reset on Our Road Network our Strategy to 2030 Operator’ Evolving to a Capital Purpose and simpler, more framework aspiration are efficient
Slide 9: Agenda
Agenda 12:45 Welcome Mark Aue CEO 12:50 Board perspective Mark Cross Chair 1:00 Strategy Mark Aue CEO For personal use only 1:20 Global broadband trends Rupert Wood Analysys Mason – Research Director 1:40 Data demand Kurt Rodgers Network Strategy Manager 2:00 Achieving 80% uptake Elaine Campbell GM
Slide 10: Who you'll hear from: Chorus speakers
Who you’ll hear from: Chorus speakers For personal use only Mark Cross Mark Aue Elaine Campbell Mike Shirley Ewen Powell Chair, Chorus Board Chief Executive Officer Executive GM, Access Executive GM, Infrastructure Chief Technology Officer Julian Kersey Anna Mitchell Drew Davies Kurt Rodgers Chief C
Slide 11: Chorus Board Chair Mark Cross
CHORUS For personal use only BOARD CHAIR MARK CROSS 7
Slide 12: Your Board's beliefs
Your Board’s beliefs For personal use only Fibre is Connections, Empowering Managed exit Market future connections, our people from Copper challenger proofed connections Prioritise An long term A considered appropriate value Promote approach to capital through digital equity new structure capital op
Slide 13: For personal use only
CH @®RUS CH @ R U S _INVESTOR DAY 2024
Slide 14: Fibre has proven resilient in a time of change
Fibre has proven resilient in a time of change CPI (%) Unemployment (%) For personal use only 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024 0 2 4 6 8 0 1 2 3 4 5 New dwellings consented Consumer confidence 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024 0 20000 40000 60000 0 50 100 150 INVESTO
Slide 15: We have regulatory clarity
We have regulatory clarity For personal use only Fibre regime now well established; our focus is legacy copper settings • Fibre RAB has grown through PQP1: $5.9bn at 31 Dec 2023 • PQP2 period extended to 4 years, up from 3 years for PQP1 • PQP2 capex and opex allowances are workable following constr
Slide 16: An evolving broadband market – all NZ
An evolving broadband market – all NZ Household penetration/fibre share % Market share by retailer For personal use only Source: IDC Telecommunications Market Analysis & Forecast Report 2024 INVESTOR DAY 2024 12
Slide 17: Deloitte October 2024 report: Unleashing fibre
Deloitte October 2024 Report: “Unleashing fibre: The For personal use only future of digital fibre infrastructure in New Zealand” INVESTOR DAY 2024 13
Slide 18: For personal use only
CH @®RUS CH @ R U S _INVESTOR DAY 2024
Slide 19: 10-year outlook with distinct horizons
10-year outlook with 3 distinct horizons For personal use only 15 HORIZON 2 HORIZON 1 (FY26-29) HORIZON 3 (FY25) Growth, Simplicity (FY30-34) Embed Adaptive and Efficiency All Fibre Business Organisation ‘accelerating the ‘future state, ‘getting future benefits from our single technology‘ fit for pu
Slide 20: Aspiration
ASPIRATION For personal use only Simplified all fibre business with 80% uptake by 2030. 16
Slide 21: Purpose
PURPOSE For personal use only Unleashing potential through connectivity. Enabling better futures for Aotearoa. 17
Slide 22: Our Ecosystem
Our Ecosystem OUR CUSTOMERS, PARTNERS AND INVESTORS OUR PEOPLE • Telecommunications Forum initiatives on network resilience and climate change • Enabling better futures for our • Worker welfare programme people: Flexible working practices, wellbeing days, parental leave policy, • Supplier code of pr
Slide 23: Business model and core competencies
Capability For personal use only BUSINESS MODEL Efficient Network Infrastructure Market Operator Player Challenger CORE COMPETENCIES Regulatory Go-to-Market Tangible Assets Management INVESTOR DAY 2024 19
Slide 24: Strategic Pillars
Strategic Pillars For personal use only INVESTOR DAY 2024 20
Slide 25: Our Road to 2030
Our Road to 2030 Growth, Simplicity & Efficiency For personal use only PURPOSE Unleashing potential through connectivity. Enabling better futures for Aotearoa. ASPIRATION Simplified all fibre business with 80% uptake by 2030. BUSINESS Efficient Network Market Infrastructure MODEL Operator Challenger
Slide 26: For personal use only
For personal use only INVESTOR DAY 2024 22
Slide 27: Fast track to an all-fibre future
For personal use only Fast track to an all-fibre future 23
Slide 28: What does the future hold for data demand?
Kurt Rodgers Network Strategy Manager For personal use only What does the future hold for data demand? • We forecast solid growth: average ~1TB by 2029 • Underpinned by broadcast TV switch-over to streaming • Live sports streaming, 4K and AI would boost growth again • Only fibre can meet future capa
Slide 29: 30% per annum data growth over last decade
30% per annum data growth over last decade • Customers are using 13x more data today than a decade ago 604GB For personal use only 600 • 636GB monthly usage on fibre in 2024 Average Monthly Data Usage (GB) • 17% using >1TB per month 500 • Forecast 14% per annum growth over next decade 400 • Expect ~
Slide 30: Data usage by speed tier on our network
Data usage by speed tier on our network For personal use only • Chorus offers different plans to meet customer needs • Entry level 50Mbps meets low data needs • High data users are choosing higher speed plans: • 36% of Hyperfibre customers use >2TB • 46% of Fibre Max customers use >1TB • 53% of 300M
Slide 31: Audiences are moving online
Audiences are moving online For personal use only • Global video sharing platforms have the highest daily reach (64%) and viewing minutes (92 per day) • Subscription video on demand (SVOD) is next highest with 56% reach and 89 minutes/day • Linear TV is declining but still has 47% reach and 87 minut
Slide 32: The transition to streaming TV hasn't finished
The transition to streaming TV hasn’t finished • Growth in data usage has tracked the shift from linear to streaming TV 70% For personal use only 60% Daily Audience • Older generations are still shifting to streaming 50% • Broadcaster video on demand is more popular with older viewers 40% 30% 20% 18
Slide 33: Terrestrial TV switch-off will boost low data households
Terrestrial TV switch-off will boost low data households Video on Demand has very 25% YoY growth in streaming 60+ age group watch over 3.5 high growth amongst 60+ volume on TVNZ+ platform hours of TV per person per day For personal use only Daily Audience over time 1000 All New Zealanders 60+ 900 80
Slide 34: Live Sports, 4K and AI add to data usage and higher peaks
Live Sports, 4K and AI add to data usage and higher peaks • Live Sports streaming taking off in For personal use only Europe and US 4k effect on data demand — Data usage (GB) • Amazon and Netflix are innovating in the sports streaming market • Sky rolling out hybrid Box and Pod1 2500 • 7% increase i
Slide 35: Broadband is getting peakier. Fibre has the capacity
Broadband is getting peakier. Fibre has the capacity • Fortnite Game Download Fortnite For personal use only Netflix Live Normal Peak • Netflix Live sports streaming INVESTOR DAY 2024 31
Slide 36: Fibre is a bullet train. FWA is a rollercoaster
Fibre is a bullet train. FWA is a rollercoaster Fibre delivers a consistent speed experience, Fixed wireless performance is unpredictable, at any location and at any time of day it varies by location and time of day For personal use only MBNZ Report - Data from Spark’s 5G Fixed Wireless plan INVESTO
Slide 37: Wi-Fi opens in-home networks up for even more growth
Wi-Fi 7 opens in-home networks up for even more growth Wi-Fi 7 • Wi-Fi 7 provides a huge speed uplift: For personal use only • Wi-Fi 5 to 6 = ~40% • Wi-Fi 6 to 7 = ~400% uplift +400% • Wi-Fi 7 supports 2x more devices than Wi-Fi 6 Wi-Fi 6 • Wi-Fi 7 devices are coming to market quickly and prices are
Slide 38: Driving fibre uptake to 80% by 2030
Elaine Campbell Executive General Manager, Access Value Stream For personal use only Driving fibre uptake to 80% by 2030 • Fibre is the global gold standard for broadband technology • 80% is aspirational but achievable (~240k connections over 6 years) • NZ fixed wireless market is unique and already
Slide 39: Our road to 80% uptake
Our road to 80% uptake Promoting the superiority of fibre across all channels For personal use only Develop Win in Maximise propositions fibre customer for under- moments that uptake penetrated matter segments 35
Slide 40: Moving from 72% to 80% uptake requires ~240k connections
Moving from 72% to 80% uptake requires ~240k connections Path to 240kGrowth connections FY25 opportunity pools Net Connection FY25-FY30 (overlapping) 300 ~110k For personal use only Premises already passed ~180k 250 90 240 Under-penetrated segments 200 ~130k ~220k New build 20 Fixed wireless 150 120
Slide 41: Under-penetrated segments is a focus to drive uptake
Under-penetrated segments is a focus to drive uptake Priority segments Other segments ~30k For personal use only ~60k retirement Businesses villages ~180k premises ~30k digitally ~50k ~10k excluded Large MDUs Holiday homes households Target: Digital equity Severe/material hardship and very low-incom
Slide 42: Moving from one size fits all to tailor offers for RSPs
Moving from one size fits all to tailor offers for RSPs Chorus Fibre Market Share ~580k power ~430k fibre customers customers For personal use only 10% Pure RSPs 15% ~450k power ~340k fibre Bundlers customers customers MNO's 75% ~940k ~245k fibre customers customers Note: numbers are NZ wide Consume
Slide 43: Retention is important, we are growing our muscle
Retention is important, we are growing our muscle Fibre Churn (Premises) 10.0% For personal use only 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Feb-20 Feb-21 Jun-19 Jun-20 Jun-21 Jan-22 May-22 Jan-23 May-23 Jan-24 Jun-24 Mar-22 Dec-19 Jul-22 Mar-23 Jul-23 Mar-24 Sept-22 Nov-22 Sept-23 Nov-23
Slide 44: Delivering an excellent experience creates fibre advocates
Delivering an excellent experience creates fibre advocates Basic fibre 9 Fibre 300 17 Word of mouth reach Overall fibre Positive: 4-6 Assure CX For personal use only Max Fibre 38 Install CX Intact CX to 5G NPS Negative: 10+ 8.4 7.9 8.5 lead +35 4G FWA -17 88% preference 5G FWA -14 NPS lead between f
Slide 45: Fibre is the gold standard and we're making it better
Fibre is the gold standard and we’re making it better For personal use only Fibre In-home Boost Hyperfibre trial 2.0 Investigating From From In-home Self- 2G,4G, 8G introduction of 50/10Mbps 300/100Mbps coverage Network setup installation of available with a low-speed to 80/40 or to performance supp
Slide 46: Fibre is the gold standard. Period.
Fibre is the gold standard. Period. For personal use only INVESTOR DAY 2024 42
Slide 47: Q and A
Q and A For personal use only Insert picture and send to back – see next slide 43
Slide 48: Time for a break
For personal use only Time for a break 44
Slide 49: Demand for digital infrastructure presents strong growth opportunity
Mike Shirley Executive General Manager, Infrastructure Value Stream For personal use only Demand for digital infrastructure presents strong growth opportunity for Chorus • New structure brings dedicated resourcing and prioritisation • Growth opportunities in our core - Mobile Infrastructure, Data Ce
Slide 50: New Zealand's largest digital infrastructure 'neutral host'
New Zealand’s largest digital infrastructure ‘neutral host’ NATIONAL REACH ACCESS EXTENSIVE ASSET BASE For personal use only ~22,000km 400Gbps 62 ~180,000km 1-10Gbps ~60,000km 212,000 TRANSPORT FIBRE 400GBPS CAPABLE DWDM MESH NODES ACCESS FIBRE LAYER 2 ACCESS NATIONWIDE DUCT POLES TRANSPORT NETWORK
Slide 51: Demand for fibre and digital infrastructure continues to grow
Demand for fibre and digital infrastructure continues to grow For personal use only NEW Chorus Infrastructure Existing expertise and revenues Exploring adjacent opportunities FOCUS AREAS Mobile New Property Smart Locations Neura Data Centre EdgeCentres Sub Sea Infrastructure Wireless IoT Connectivit
Slide 52: Infrastructure revenue - overview
Infrastructure revenue - overview For personal use only Access Backhaul Potential path to $180m to $200m annual infrastructure ~$155M Legacy revenue by 2030, with infrastructure incremental upside revenue Colocation opportunities. (annualised) Other Note: Infrastructure revenue on this slide include
Slide 53: Mobile Infrastructure segment
Mobile Infrastructure segment Building on our strong NZ mobile infill connectivity market For personal use only existing mobile backhaul portfolio to grow revenue by: • Connecting ~50% of cell sites today and looking to maintain share as market grows +60-70% • Helping tower companies connect CAGR ne
Slide 54: New property development and smart locations
For personal use only New property Smart development locations Annual pipeline • Recession has slowed housing Fibre connectivity • Connecting non-building CCTV, of new premises growth and funding in wake of enabling smart digital billboard and traffic sites supported post-COVID building boom towns a
Slide 55: Exploring Option: IoT Solutions with Launch of Neura
Exploring Option 1 IoT Solutions with Launch of Neura For personal use only • Neura in-market offering IoT asset management solutions using long-range LoRaWAN technology • Enables near real-time monitoring and management of critical assets like water, public lighting, power and waste collection • Ab
Slide 56: Cloud migration & AI is driving exponential growth for fibre connectivity
Cloud migration & AI is driving exponential growth for fibre connectivity For personal use only NZ data centre connectivity +10-15% CAGR FY25 FY26 FY27 FY28 FY29 Source: Chorus estimates INVESTOR DAY 2024 52
Slide 57: New Model to Scale EdgeCentres
Exploring Option 2 New Model to Scale EdgeCentres For personal use only • EdgeCentres established in 4 Chorus exchanges (Auckland; Tauranga; Wellington, Proposed Build Channel Chorus Enterprise Christchurch) Model Partner Partner • Product solution leverages additional co-location space with copper
Slide 58: Unlocking Hyperscaler Connectivity
Exploring Option 3 Unlocking Hyperscaler Connectivity For personal use only • Investigating opportunity with DataGrid that includes national and trans-Tasman connectivity • Could unlock a key role for Chorus in burgeoning data centre ecosystem and leverage lower South Island renewable energy • Build
Slide 59: Maximising value from our future-proofed fibre network
Ewen Powell Chief Technology Officer For personal use only Maximising value from our future-proofed fibre network • Fibre is a highly reliable and scalable network technology • We’re focused on prudent and efficient asset management • Growing bandwidth demand and regulatory requirements drive ongoin
Slide 60: A highly reliable, scalable, future-proofed network
A highly reliable, scalable, future-proofed network For personal use only Operations Element manager Aggregation Transport Suburban access Splitter 1:16 ~1.3m stack platform ~400 switches ~1,000 nodes exchange (not powered) Optical Network Terminals Transport equipment Aggregation switch Assurance E
Slide 61: Prudent and efficient asset management
Prudent and efficient asset management For personal use only Investment drivers Annual sustaining capex (%) • Connection growth, data growth, asset lifecycle management, product and business improvements • Regulatory regime drives data-driven decision-making 25 and 10-year asset management planning
Slide 62: Network electronics
Network electronics Investment drivers For personal use only • Capacity • Peak bandwidth growth ~21% p.a. • 60% utilisation trigger, to stay within 90% regulatory standard • Lifecycle • Equipment (5-10yrs); software (2yrs) • Investment phased to smooth capital and optimise field activity. • Products
Slide 63: Physical network assets
Physical network assets Investment drivers Fibre cable age profile (years)* For personal use only • Lifecycle 35,000 • Significant proportion of physical assets pre-date UFB roll-out 30,000 • ~8,000km shared legacy fibre 30+ years 25,000 • Replacement subject to asset performance (574km planned thro
Slide 64: IT investment
IT investment For personal use only Investment drivers • Lifecycle management • ~50% of IT spend: enterprise, provisioning and assurance systems • strong focus on cyber security • Process and product development or improvement • ~50% of IT spend on developing new products and systems to support grow
Slide 65: Regulatory outlook
Julian Kersey Chief Corporate & Regulatory Officer For personal use only Regulatory outlook • Workable outcomes for PQP2 provide certainty and stability • New Zealand fibre compares well globally • Regulatory simplification is needed over Horizon 2 with a focus on: • copper deregulation; and • light
Slide 66: PQP2 outcomes provide certainty and stability
PQP2 outcomes provide certainty and stability For personal use only Expenditure allowances 1200 Opex Capex 1000 $790m $1,140m 800 600 $m 400 OPEX CAPEX 200 0 Chorus Draft Final Chorus Draft Final No change to proposal decision decision adjusted decision decision WACC anchor proposal 7.68% services N
Slide 67: Fibre pricing and coverage compare well globally
Fibre pricing and coverage compare well globally Price for Fibre 300 (or equivalent) – Sept 2023 For personal use only Price for Fibre 1 gig (or equivalent) – Sept 2023 Source: Broadband Coverage in Europe 2023, a study by Omdia and Point Topic for the European Commission, with NZ data added INVESTO
Slide 68: Time to take stock
Time to take stock Existing framework reflects out of date market assumptions Local Fibre Companies For personal use only Chorus: ~1.1m connections Fixed Wireless Networks: (service some major centres – e.g. (LFCs): ~375k connections ~350k connections Auckland, Wellington, Dunedin) (service some maj
Slide 69: Pathway to simplification by 2030
Pathway to simplification by 2030 TODAY* 2025 2026 2027 2028 2029 For personal use only TSO variation for deep rural assets No case for Copper dereg TSO obligation continued review is outdated regulation of copper Fibre input methodologies Information review (tbc) Fibre market disclosure- very diffe
Slide 70: Consumer transparency opportunities
Consumer transparency opportunities TODAY* 2025 2026 2027 2028 2029 For personal use only Updated marketing guidelines Enabling informed customer decisions Product disclosure guidelines Update industry Consistent shopping journey and marketing codes unbiased up-front info Billing and switching revie
Slide 71: Copper retirement and fibre expansion
Anna Mitchell Executive General Manager, Fibre Frontier Value Stream For personal use only Copper retirement and fibre expansion • Accelerated copper retirement by 2030 is achievable • Customer outcomes key to delivering on our strategy • Copper savings building over the coming years, essential to s
Slide 72: Focusing on copper retirement by 2030
Focusing on copper retirement by 2030 End-to-end copper retirement For personal use only Customer transition Asset optimisation and reuse Decommissioning and disposal • Organisational alignment to optimise programme delivery • Prioritising encouraging and enabling customer transition and migration •
Slide 73: Pathway to copper retirement by 2030
Pathway to copper retirement by 2030 TODAY 2025 2026 2027 2028 2029 2030 For personal use only CMAR-RELATED TSO VARIATION COPPER DEREGULATION 33k Exit of copper services in Chorus fibre areas FULL COPPER EXIT 16k Exit of copper services in LFC fibre areas Exit of complex, legacy copper equipment 1.5
Slide 74: Rural telco market has changed significantly since CNU listed
Rural telco market has changed significantly since CNU listed Of 345k rural premises… For personal use only 97% Rural copper consumers can now access terrestrial wireless alternatives 73% have mobile coverage $270m Spent by govt on wireless in rural New Zealand since 2016 – not including the 5G spec
Slide 75: Reducing costs in line with declining customer numbers
Reducing costs in line with declining customer numbers Cabinets remaining Chorus Fibre Areas LFC Fibre Areas Non-Fibre Areas For personal use only 5,150 1,000 650 3,500 • Average savings per cabinet ~$2,500p.a. (electricity and avoided network maintenance) • Over 1,500 cabinets closed to date • Cumu
Slide 76: Retirement of Customer Multi-Access Radio systems
Retirement of Customer Multi-Access Radio systems Technology Customer For personal use only surpassed by numbers have modern halved in past alternatives two years Serving 800+ sites ~1,300 were used to addresses provide service Costs Fault rate 15x significantly higher than exceed fibre revenue Nevi
Slide 77: Demand for fibre outside current footprint is strong
Demand for fibre outside current footprint is strong 10k premises due for completion mid-2025 For personal use only First 10 builds are complete and over 1,000 addresses passed Build currently underway in 25 areas across NZ Over 3,000 expressions of interest – nearly 70% in first 10 areas Over 500 i
Slide 78: Fibre Expansion
Exploring Option 4 Fibre Expansion For personal use only $17b+ Halve the Fibre to • NZIER and Deloitte reports digital divide 95% of Kiwis show significant socio-economic Economic gains to benefits from high-capacity New Zealand A realistic goal for broadband our country • We’re encouraging governme
Slide 79: A solid fibre business with clear upside in Horizon 2
Drew Davies Chief Operating Officer For personal use only A solid fibre business with clear upside in Horizon 2 • Enabling our Value Streams to drive growth and optimise operations • Immediate focus on streamlined go-to-market capability and simplification • Copper retirement to release $50m+ of ann
Slide 80: We're getting future fit
We’re getting future fit FY25 guidance unchanged from what we have informed you previously For personal use only • EBITDA: $700m-$720m* • Sustaining capex: $200m-$220m • Gross capex: $400m-$440m • Dividend*: 57.5cps unimputed *subject to no material adverse changes in circumstances or outlook Where
Slide 81: Copper cost outlook
Copper cost outlook Tight cost control keeps direct copper revenues and costs FCF positive For personal use only • Copper capex, net of contributions, $15m (FY24) and declining as activity transitions to fibre • Direct copper opex of ~$54m (FY24) steps down as copper customers migrate to other netwo
Slide 82: Accelerated copper depreciation rolls off rapidly
Accelerated copper depreciation rolls off rapidly 100 For personal use only 90 80 70 NPAT impact 60 reduces by $m ~$50m in FY26 50 40 30 20 10 0 FY22 FY23 FY24 FY25e FY26e FY27e Cables: CNU area Cables: LFC area Duct: LFC area Poles: LFCarea Cables: rural Poles: rural Estimate INVESTOR DAY 2024 78
Slide 83: Optimising options for our asset portfolio
Optimising options for our asset portfolio For personal use only Our assets Optimisation options ~600 exchanges • EdgeCentre co-location in emptied copper spaces • Sale of non-RAB exchanges as copper removed ~1,100 high sites • Potential sale of primary sites to towercos • Sale to customers or exit
Slide 84: Asset Optimisation on Copper Recovery
Exploring Option 5 Asset Optimisation on Copper Recovery For personal use only • ~4,000km of large copper cable that is economic to recycle • Trial to assess practicality and economics of cable removal in H2 FY25 • Expect ~3 to 7-year programme Estimated $30m-$50m net proceeds opportunity for large
Slide 85: Asset Optimisation on High Sites and Property Sales
Exploring Option 6 Land & Buildings: Net Book Value $375m Asset Optimisation on High Sites and Property Sales UFB area LFC area For personal use only Other area High sites • Land and buildings NBV of $375m (FY24) • A review is underway of our nationwide high sites portfolio to assess potential optio
Slide 86: MAR and RAB outlook provides certainty to 2028
MAR and RAB outlook provides certainty to 2028 • Expect final MAR (due next week) to be higher than draft, given final expenditure allowances and our depreciation tilt For personal use only • Strong MAR tailwinds in PQP2: WACC 7.68%; ~$200m wash-up; ~$85m tax building block from 2028; CPI wash-up in
Slide 87: Capital management principles and policy
Capital management principles and policy A digital infrastructure business maximising long-term value and returns Dividend policy: pay an ordinary dividend of 70% to 90% (on average, over time) of net cash flow from For personal use only operating activities less sustaining capital expenditure Capit
Slide 88: Q and A
For personal use only Q and A 84
Slide 89: Recap: Fast track to an all-fibre future
Recap: Fast track to an all-fibre future We’re New market Regulatory For personal use only moving challenger settings on quickly to posture fibre provide become an supports clarity and all-fibre push for stability for business by 80% uptake next 4 years 2030 Focus on Copper leveraging our We are ret
Slide 90: Thanks for joining us
For personal use only Thanks for joining us 86