Chorus Limited · NZX:CNU
Chorus — FY2026 Earnings Presentation
38 slides from Chorus's earnings presentation, August 2026
Slide 1: FY26 Results Presentation
FY26 Results Presentation For the 12 months ended 30 June 2026 Unleashing potential through connectivity Enabling better futures for Aotearoa FY26 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 • Our strategy, FY26 overview and our purpose 4-8 • LEAD 9-12 • EXPAND 13 • ADAPT 14 • PIONEER 15-16 Drew Davies, COO • Financial results 18-20 • Capex, leverage and debt 21-24 • Simplifying our business, dividend and FY27 guidance 25-26 Mark Aue, CEO • AI 28-30 • Outlook 31-32
Slide 4: Our strategy
Our strategy FY26 RESULTS PRESENTATION
Slide 5: FY26 result demonstrates strength of Chorus
FY26 result demonstrates strength of Chorus +3% vs FY25 +3% vs FY25 +$33m vs FY25 +4% vs FY25 Another strong annual performance NET PROFIT/(LOSS) underpinned by FIBRE CONNECTIONS (k) EBITDA1 ($m) ($m) DIVIDEND (cps) disciplined execution FY22 959 FY22 675 FY22 64 FY22 35.0 • Fibre revenue growth FY2
Slide 6: Horizon 2 delivering simplicity and efficiency
Horizon 2 delivering simplicity and efficiency PROGRESS ON GROWTH, SIMPLICITY & EFFICIENCY • 75.9% fibre uptake, ~400k opportunities (winback & brownfield & infill) • simplified suite of products and plans in market • new retailer incentives introduced • improving NZ digital inclusion (digital Equit
Slide 7: Embedding our Purpose with tangible outcomes
Embedding our Purpose with tangible outcomes FY26 RESULTS PRESENTATION 7
Slide 8: Delivering value beyond financial performance
Delivering value beyond financial performance SCOPE 1 & 2 EMISSIONS REDUCTION FROM FY20 BASE YEAR (TONNES CO2e) 96% TOTAL WASTE ONLY 44k COPPER 7% ELECTRICITY 43% DIVERTED FROM CONNECTIONS REDUCTION VS 9,574 LANDFILL REMAINING FY25* 5,255 962 743 FY20 FY26 Scope 1 Scope 2 SBTi: 62% REDUCTION BY FY30
Slide 9: Fibre growth continues; uptake now at 75.9%
Fibre growth continues; uptake now at 75.9% FIBRE UPTAKE IN CHORUS FIBRE AREA CHANGE IN MASS MARKET CONNECTIONS IN CHORUS Addresses (% ADDRESSES PASSED) % FIBRE AREA (‘000s) passed uptake 50 1,500,000 76 1,250,000 75 30 50 1,000,000 74 32 32 10 750,000 73 -5 -10 -15 -7 500,000 72 -33 -13 -30 250,000
Slide 10: Plan mix stable; ~85% on 500Mbps or higher
Plan mix stable; ~85% on 500Mbps or higher FIBRE CONNECTIONS BY PLAN* POSITIVE FIBRE CONNECTION TRENDS 1,200,000 • 100Mbps HFS plan at 148k 100Mbps 1,000,000 14% • plan simplification with legacy 100 plan customers migrated to 500Mbps plan 800,000 • stable demand for 1Gbps+ 500Mbps • hyperfibre – bu
Slide 11: Data usage continues to rise; 731GB in Jun'26
Data usage continues to rise; 731GB in Jun’26 MONTHLY AVERAGE DATA USAGE PER CONNECTION DATA TRAFFIC (GIGABYTES) (PETABYTES*) 800 +859 9,600 731 petabytes = 32,000 700 years of HD streaming +9.8% 600 500 8,741 400 344 300 200 Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26 FY25 FY26 Copper Fibre • monthly
Slide 12: Streaming events increase data, legacy broadcast TV retirement ahead
Streaming events increase data, legacy broadcast TV retirement ahead FIFA WORLD CUP ESTIMATED CONCURRENT STREAMS ON CHORUS NETWORK • FIFA World Cup reported global reach of 2026 event with 20 • shift from legacy broadcast TV to IP-based delivery creates billion video views across all platforms a new
Slide 13: Growing Infrastructure portfolio & services
Growing Infrastructure portfolio & services SCALE INFRASTRUCTURE GROWTH ENGINES THROUGH PROTECT AND GROW FIBRE EXPANSION DATA CENTRES & CONNECTIVITY • Express Connect available in 8 data centres, giving businesses a fast, reliable way to move data from order to service, expansion to additional sites
Slide 14: Simplifying Chorus for the future
Simplifying Chorus for the future OPERATIONAL EXCELLENCE, TEAM CHANGES REGULATION • continued operating model evolution, advancing capability: Telco sector review: • new Executive Team member, Matt Bolton, appointment • Ministry for Regulation issued final report on review of the made since HY26 tel
Slide 15: Copper retirement by 2028 on track
Copper retirement by 2028 on track REMAINING COPPER LINES COPPER – REACTIVE SPEND BY AREA (CONNECTIONS) ($m) 157,000 16 45,000 12 20,000 92,000 13,000 8 11,000 44,000 92,000 4 68,000 43,000 0 FY 24 FY 25 FY 26 Chorus UFB LFC UFB Non-UFB Non-fibre area LFC fibre area CNU fibre area FY24 FY25 FY26 • 7
Slide 16: Unlocking value from legacy assets
Unlocking value from legacy assets COPPER RECYCLING PROPERTY OPTIMISATION Strategic opportunities provide incremental value creation alongside core fibre growth • trial successfully operationalised • multi-year property optimisation programme underway • activity accelerating • testing market interes
Slide 17: Financial performance
Financial performance FY26 RESULTS PRESENTATION
Slide 18: Income Statement (IFRS 18)
Income Statement (IFRS 18) FY26 FY25 $m $m COMMENTARY: FY26 vs FY25 Operating revenue 1,029 1,014 • fibre revenue up 6% YoY partly offset by $34m lower copper revenue • cost savings from lower copper costs, op model changes & lower Operating expenses (303) (309) consulting costs, partly offset by hi
Slide 19: Revenue
Revenue FY26 FY25 $m $m COMMENTARY: FY26 vs FY25 Fibre broadband (GPON) 792 745 • ARPU grew 2% to $59.51 in FY26; GPON fibre connections +33k/+3% Fibre premium (P2P) 64 64 • copper service revenues reduced $34m as connection volumes Copper connection revenues 41 75 declined 52% to 44k • brownfields
Slide 20: Expenses
Expenses FY26 FY25 $m $m COMMENTARY: FY26 vs FY25 • lower headcount from operating model changes, partly offset by Labour 81 85 lower labour capitalisation rate 42% vs FY25:44% • lower copper faults from lower copper connections (truck rolls -23%); Network maintenance 36 47 lower fibre faults IT 41
Slide 21: FY26 capex driven by 2H26 project phasing
FY26 capex driven by 2H26 project phasing FY26 FY25 $m $m COMMENTARY: FY26 vs FY25 Sustaining capex* 205 205 • sustaining capex was flat year on year Growth capex 170 210 • multi-year lifecycle phasing of growth capex Gross capex 375 415 • gross capex reduced 10% FY26 vs FY25 Less: Third-party contr
Slide 22: RAB and Non-RAB capex, total RAB $6.0b
RAB and Non-RAB capex, total RAB $6.0b* FY26 FY25 FY26 FY25 RAB capex Non-RAB capex $m $m $m $m Extending the network – growth 54 88 Copper - growth - 1 Installations – growth 103 113 Copper – sustaining 6 8 IT & Support – sustaining 63 61 Other – growth 4 6 Network capacity – sustaining 54 63 Other
Slide 23: Leverage profile
Leverage profile Bank Covenant Calculation* 30 Jun 2026 30 Jun 2025 DEBT MATURITY PROFILE ($m) As at $m $m Borrowings 2,963 2,779 112 + PV of CIP debt securities (senior) 263 242 105 + Net leases payable 147 162 Sub total 3,373 3,183 820 822 364 325 - Cash 199 81 207 500 Total net debt 3,174 3,102 2
Slide 24: Crown Funding Securities change of ownership
Crown Funding Securities change of ownership NIFF EQUITY SECURITIES SALE PROCESS • unique class of security with no voting rights but a repayment • in December 2025, the New Zealand Government announced a preference on liquidation sale process in relation to the securities NIFF held in Chorus • divi
Slide 25: Simplifying our business
Simplifying our business STRONG BALANCE SHEET COPPER ASSETS - ACCELERATED DEPRECIATION • prudent and efficient asset management 120 • fair market review of network assets resulted in a $983m increase in the asset carrying amount 100 Chorus fibre area copper FY27 IS A TRANSITION YEAR FOR COPPER 80 ca
Slide 26: FY26 div. 60cps; FY27 div. guidance minimum 62cps
FY26 div. 60cps; FY27 div. guidance minimum 62cps DIVIDEND (cps) FY26 FY25 Capital Management ($m) Min 62 $m $m 57.5 60 Net cash flows from operating 740 709 47.5 activities* 42.5 34.5 36 Less: Sustaining capex (205) (205) 28.5 25.5 Less: Net interest** (167) (150) 24 17 19 23 Free cash flow for cap
Slide 27: Outlook
Outlook FY26 RESULTS PRESENTATION
Slide 28: AI reinforces long-term strategic value of fibre infrastructure
AI reinforces long-term strategic value of fibre infrastructure Multiple demand trends favour scalable, high-performance networks + + + + DATA CENTRES AI ADOPTION & CONTENT QUALITY UPLOAD DEMAND FIBRE ADVANTAGE AI COMPUTE NEEDS TRAFFIC GROWTH VIEWING & CONNECTED TRAFFIC TURNS SYMMETRICAL ONLY TECH W
Slide 29: Fibre is foundational to AI
Fibre is foundational to AI AI performance depends on bandwidth, reliability and low latency AI REQUIRES RELIABLE INFRASTRUCTURE AI DRIVING TRAFFIC GROWTH GLOBALLY • AI systems depend on WAN AI TRAFFIC GLOBAL continuous flow of huge (MODERATE VIEW, EB/MONTH)* data • data is: Land AI: 30% of • moving
Slide 30: AI changes what networks need to deliver
AI changes what networks need to deliver Fibre is built for the next generation of network demand Real time AI Upload Download SPEED & LOW LATENCY ALL IMPORTANT FOR Latency 1GB* Upload AI DEMANDS data upload Speed Speed (ms) Time using network: (Mbps) (Mbps) Dial up 0.033 >150 >40 hours 0.056 • data
Slide 31: Multiple drivers of future value creation
Multiple drivers of future value creation Growing fibre, scaling infrastructure and unlocking legacy assets DEFEND & GROW CREATE STRATEGIC FLEXIBILITY • fibre price change 1 Jan’27 • ASM resolution to remove ownership cap restrictions • targeting “winback” and “brownfield & infill” fibre • Horizon 2
Slide 32: Strong execution today. Expanding opportunities for tomorrow.
Strong execution today. Expanding opportunities for tomorrow. • Strong FY26 result underpinned by disciplined execution • Horizon 2 gaining momentum: growth, simplicity & efficiency • Pathway to 80% fibre uptake • Copper retirement firmly in sight • Disciplined expansion into adjacent opportunities
Slide 33: Appendix
Appendix FY26 RESULTS PRESENTATION
Slide 34: Pricing data
Pricing data PROPOSED PRICING, CURRENTLY UNDER CONSULTATION Current Price from Proposed Price from Product / Service 1 Jan’26 1 Jan’27 $40.50 $41.70 Home Fibre Starter (100/20Mbps) (Retail price cap $70) (Retail price cap $72) Home Fibre 500Mbps $58.73 $61.08 Home Fibre 920Mbps $69.50 $72.28 Home Hy
Slide 35: Connections
Connections Copper Fibre Total -48 YoY +32k YoY -16k YoY 44k remaining 1.15m connections 1.91m total Variance 30 Jun 2025 30 Sep 2025 31 Dec 2025 31 Mar 2026 30 Jun 2026 30 Jun 2026 vs 30 Jun 2025 Baseband copper (no broadband) 24,000 20,000 14,000 11,000 8,000 (16,000) Copper ADSL (includes naked)
Slide 36: Connections by zone
Connections by zone* QUARTERLY CHANGE (‘000s) BY ZONE -10 -5 0 5 10 Other fibre Copper lines (no broadband) 115 Copper connections are declining company as Chorus retires its copper 0 (LFC) zone Copper broadband lines 139 network and customers migrate Q4 FY25 -1 -1 to Local Fibre Company and fixed Q
Slide 37: Interest rate hedges
Interest rate hedges Bond Amount NZ$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 38: New Zealand macro-economic data
New Zealand macro-economic data ANNUAL CPI (%) 8.0% • Unemployment rate: 5.6% (Jun’26) • Annual inflation rate: 4.1% (Jun’26) 6.0% • New dwellings consented: 40,581 (12 months ended Jun’26, 4.06% up 19.0% vs 12 months ended Jun’25) 4.0% • Net migration gain: 18,800 (12 months ended May’26) 2.0% • OC