Chorus Limited · NZX:CNU
Chorus — FY2025 Earnings Presentation
41 slides from Chorus's earnings presentation, August 2025
Slide 1: FY25 Results Presentation
CH@®RUS FY25 RESULTS PRESENTATION For the 12 months ended 30 June 2025 Unleashing potential through connectivity. me Enabling better futures for Aotearoa.
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 • FY25 overview, Horizon 1 progress 4-6 • Lead 7-11 • Expand 12 • Adapt 13 • Pioneer 14 • Continuing to explore strategic options 15 Drew Davies, COO • Financial results 16-20 • Capex and net debt 21-23 • Dividend and FY26 guidance 24 Mark Aue, CEO • Outlook for FY26, Horizon 2
Slide 4: FY25 Overview
FY25 Overview A resilient result with good progress on strategy • Delivered innovation through Boost speed upgrades • Driven greater awareness of Fibre • Positive regulatory pathways emerging • Fibre revenue growth +7% • Strong cost management in inflationary environment • Sustaining capex held flat
Slide 5: Strategy on track
Strategy on track FY25 RESULTS PRESENTATION
Slide 6: Transition from Horizon 1
Transition from Horizon 1 FY25 RESULTS PRESENTATION 6
Slide 7: Fibre growth continues; speeds boosted in June
Fibre growth continues; speeds boosted in June • Home Fibre Starter now 100/20Mbps: grew by 41k to 88k in FY25. Majority of growth from new/offnet and ~1/4 from higher speed plans • demand for 1Gbps+ stable; 25% of residential connections on 1Gbps or faster with ~5k on Hyperfibre 2Gbps+ plans • resi
Slide 8: Fibre uptake lifts to 72.1%
Fibre uptake lifts to 72.1% • fibre uptake at 72.1% (FY24:71.4%): later UFB2 areas +4% to 62%; earlier UFB1 areas at 75% • fibre footprint grew 26k to 1,532,000 addresses passed* at 30 June • return to growth in Chorus fibre areas as copper withdrawal programme ends (see chart on right) FIBRE UPTAKE
Slide 9: Data usage accelerating
Data usage accelerating • monthly average fibre data usage growing strongly to 671GB (July 2025: 684GB vs June 2024: 623GB) • 19% of fibre customers used >1Terabyte of data in June 2025 (June 2024: 16%) • recent Boost indicates users have benefited from the faster download speed, improving our compe
Slide 10: A robust and scalable fibre network
A robust and scalable fibre network • significant increase in data traffic at 8,741 petabytes in FY25; up 767 petabytes from FY24 • 96% of data on fibre network, showing scalability at marginal cost • increasing number of peak events with 17 peak traffic events in FY25 vs 10 in FY24 +767 petabytes =
Slide 11: Focus as a market challenger
Focus as a market challenger • market repositioning with direct to consumer communication • marketing raising awareness of fibre’s superiority vs fixed wireless • consumer monitoring shows fibre significantly outperforming fixed wireless Net Promoter Score (NPS) How likely would you be to recommend
Slide 12: Steady demand for infrastructure connectivity
Steady demand for infrastructure connectivity • New property development: 24k lots passed in FY25; NEW PROPERTY DEVELOPMENT PIPELINE – LOTS PASSED order pipeline stabilising back at pre-Covid levels of 20k-25k 40,000 • Data centres: new Express Connect service to simplify and accelerate DC connectiv
Slide 13: FY25: getting future fit
FY25: getting future fit Significant changes made in Horizon 1 (FY25) to enable our shift away from a build focus and become the great network operator over Horizon 2 (FY26-FY30) • Operating model evolution: ▫ organisation redesign and investment in new capability resulting in ~60 fewer roles ▫ intr
Slide 14: Countdown to urban copper retirement
Countdown to urban copper retirement • total copper fault volumes reduced by 16k ~$7m reduction in copper fault spend • shutdown in Chorus fibre areas now expected by mid-2026; just 13k lines remaining in service • copper lines in non-fibre areas reduced by 26% in FY25; migration of 1,500 legacy rad
Slide 15: Continuing to explore strategic options
Continuing to explore strategic options Option 1: Option 2: Option 3: IoT Solutions Scale EdgeCentres Trans-Tasman Ring Option 4: Option 5: Option 6: Fibre Expansion Copper recovery Property optimisation Note: green = on track; amber = under review for scalability; red = not actively proceeding FY25
Slide 16: Financial performance
Financial performance Drew Davies, COO
Slide 17: Income Statement
Income Statement FY25 $m FY24 $m Operating revenue 1,014 1,010 • fibre connection and ARPU growth largely offset by legacy revenue decline Operating expenses (309) (310) • simplification and strong cost management offset inflation-linked and regulatory increases Earnings before interest, tax, deprec
Slide 18: Revenue
Revenue FY25 $m FY24 $m Fibre broadband (GPON) 745 697 • ARPU grew from $55.71 to $58.98 even with price changes deferred by a quarter to January 2025 Fibre premium (P2P) 64 69 • legacy enterprise service platform being retired with customers migrating to other services or networks Copper based broa
Slide 19: Expenses
Expenses FY25 $m FY24 $m Labour 85 80 • 44% capitalisation rate (FY24:47%); $5m change costs (FY24:$2m) Network maintenance 47 53 • reducing copper fault volumes partly offset by increased fibre- related costs IT 40 44 • decreased as legacy systems exited Other network costs 37 37 • included $4m of
Slide 20: Copper retirement expenses
Copper retirement expenses • direct copper opex reduced to $45m from $54m in FY24 • copper optimisation spend to increase with completion of copper withdrawal in Chorus fibre areas • significant step-down in copper depreciation in FY26 as accelerated copper depreciation rolls off Direct copper opex
Slide 21: Capex
Capex • gross capex reduced 3% to $415m with reduced installation spend partly offset by increased spend on footprint expansion • sustaining capex was steady year-on-year at $205m FY25 $m FY24 $m GROSS CAPEX BY CATEGORY Sustaining capex* 205 205 Discretionary growth capex 210 222 247 222 210 Gross c
Slide 22: RAB and Non-RAB capex
RAB and Non-RAB capex • installation spend reduced by $28m • copper capex reduced by $7m and includes $8m of contribution-funded activity • FY24 capex updated to reflect final allocations for 2024 Information Disclosure (ID). FY25 allocations unaudited and subject to 2025 ID RAB capex FY25 $m FY24 $
Slide 23: Leverage: 4.52x net debt/EBITDA
Leverage: 4.52x net debt/EBITDA • prior periods ND/EBITDA: FY24 4.42x; HY25 4.54x • Chorus issued $170m of NZ capital notes to refinance Crown • current ratings agency thresholds: S&P 5.0x, Moody’s 5.25x financing in June • S&P has introduced new digital infrastructure rating criteria • net borrowin
Slide 24: FY25 dividend and FY26 guidance
FY25 dividend and FY26 guidance • FY25 final dividend: 34.5cps, unimputed • FY26 EBITDA $710m to $730m* ▫ record date: 16 September 2025 ▫ includes copper recovery at similar level to FY25 ▫ fibre price changes would apply from January 2026 ▫ payment date: 7 October 2025 ▫ legacy revenues continue t
Slide 25: Transitioning to Horizon 2
Transitioning to Horizon 2 Mark Aue, CEO
Slide 26: Tailwinds support our ambition
Tailwinds support our ambition • Market consultation underway on proposed fibre pricing changes (effective 1 January) Awareness: Have at least heard of the internet type* • Aspiration of 80% fibre uptake achievable • FY26 focus on targeted in-market activity: 99% VS 99% ▫ marketing to maintain aware
Slide 27: Fibre is AI-ready
Fibre is AI-ready The resilience, reliability and scalability of fibre makes Chorus an AI enabler • Industry forecasts anticipate a significant step-up in AI driven Venture Insights six key takeaways**: data demand 1. The AI Revolution Reframes the Debate: . . . no longer “fibre • Nokia global netwo
Slide 28: New property pipeline: 80% activated in 5 years
New property pipeline: 80% activated in 5 years • New property development: LOTS PASSED vs FIBRE ACTIVATION RATE (%) OVER TIME ▫ 80% of FY20 lots passed had activated in 5 years 35,000 90% ▫ ~55% of FY22 and FY23 lots passed activated in 2 years 80% 30,000 ▫ ~23k lots contracted and in pipeline for
Slide 29: Pathway to regulatory simplification
Pathway to regulatory simplification Commerce Commission Ministry for Regulation • Copper services deregulation: positive Commerce • Telco sector review: Commission recommendation to Minister ▫ considering whether current regulation is fit for • Fibre services deregulation: considering voice and pur
Slide 30: Optimising for an all-fibre future
Optimising for an all-fibre future Copper retirement Copper recovery • notice period complete in Chorus areas by December; • ~160km of cable recycled in FY25 shutdown by mid-2026 • in market to select extraction partner; programme to step • ~1,200 cabinets/sites to be powered down in FY26 to realise
Slide 31: Simpler, more efficient, more competitive
Simpler, more efficient, more competitive • Chorus’ business remains resilient, ongoing economic headwinds expected in H1 • Adaptive organisation embedded (Horizon 1); now focused on growth, simplicity & efficiency (Horizon 2) • Embracing our market challenger posture as we strive for 80% fibre upta
Slide 32: Appendices
Appendices FY25 RESULTS PRESENTATION
Slide 33: Appendix A: Pricing data
Appendix A: Pricing data PRICING CONSULTATION Product / Service Current Price Proposed Price $28.00 New Low Speed Plan n/a (Retail price cap $55) $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 $58
Slide 34: Appendix A: Market data
Appendix A: Market data CONNECTIONS 31 March 30 June 30 Sept 31 Dec 31 March 30 June 2024 2024 2024 2024 2025 2025 Baseband 51,000 45,000 40,000 34,000 29,000 24,000 copper (no broadband) Copper ADSL 62,000 56,000 49,000 44,000 39,000 34,000 Copper connections (includes naked) declined 65k in FY25 a
Slide 35: Appendix A: Connections by Zone
Appendix A: Connections by Zone CONNECTION CHANGES BY ZONE* QUARTERLY CHANGE (‘000s) BY ZONE Other fibre Copper lines (no broadband) 5,000 Copper connections are declining -15 -5 5 15 company as Chorus retires its copper (LFC) zone Copper broadband lines 6,000 network and customers migrate 0 to Loca
Slide 36: Appendix A: Market Composition
Appendix A: Market Composition NZ BROADBAND MARKET – BY RETAILER NZ BROADBAND MARKET – BY TECHNOLOGY 2,000,000 2,000,000 1,500,000 1,500,000 1,000,000 1,000,000 500,000 500,000 0 0 Chorus xDSL Chorus mass market fibre Local fibre companies (UFB) Other fibre networks Spark One 2degrees (incl Vocus) M
Slide 37: Appendix B: Additional financial information
Appendix B: Additional financial information INTEREST RATE HEDGES CROWN FINANCING SUMMARY 30 30 30 Amount Crown securities Bond Current hedge profile June June June TOTAL NZ$m $m 2030 2033 2036 EMTN 2026 514 100% fixed for life of bond at 3.39% Equity securities 197.0 404.0 768.5 768.5 (cumulative t
Slide 38: Appendix B: Capital management principles & policy
Appendix B: Capital management principles & 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 operating activities less sustaining capital expenditure Capital allocatio
Slide 39: Appendix C: RAB movement: 2024 regulatory year
Appendix C: RAB movement: 2024 regulatory year Financial Loss Core RAB Component Asset (FLA) Notes $m (nominal) $m (nominal) The closing RAB at 31 Dec 2023 included a forecast asset allocator Opening RAB (1 January 2024) 4,791 1,142 adjustment. The opening RAB at 1 Jan 2024 is $20m higher due to upd
Slide 40: Appendix C: MAR wash-up: 2024 regulatory year
Appendix C: MAR wash-up: 2024 regulatory year Wash-up Revenue Description Notes $m (nominal) $m (nominal) PQP1 decision updated in 2023 for pass through costs and CPI 2024 maximum allowable revenue 808.7 forecasts. Less 2024 FFLAS revenue received (807.8) 2024 MAR under-earn 0.9 CPI on the price pat
Slide 41: Appendix C: Regulatory revenue building blocks
Appendix C: Regulatory revenue building blocks Final building blocks revenue components 2025 2026 2027 2028 ($m, nominal) Total return on capital 255.1 270.4 269.4 266.1 Return on assets (RAB x WACC), Core fibre assets 384.6 396.6 404.3 408.5 Return on assets (RAB x WACC), Financial loss assets 74.0