Spark New Zealand Limited · NZX:SPK
Spark New Zealand — Investor Day (2025)
47 slides from Spark New Zealand's investor day presentation, 2025
Slide 1: It's better with Spark: SPK-30 Strategy
It’s better with Spark SPK-30 Strategy
Slide 2: Chair's address
Chair’s address
Slide 3: Today's agenda
Today’s agenda Presentations from: Jolie Hodson Renee Mateparae Strategy overview Better network Greg Clark Matt Bain Lead in core connectivity Better customer experiences Mark Beder Stewart Taylor Business connectivity Enablers Simplify and optimise beyond the core SPK-30 strategy ambitions
Slide 4: SPK-26: where we aspired to be by FY26
SPK-26: where we aspired to be by FY26 SPK-26 was focused on growth in core markets, data centres, and high-tech solutions FY26 Ambition Digital and data-driven, Digital infrastructure Home of high-tech Innovative, diverse, everywhere fuelling growth solutions sustainable Customer iNPS of +41, Reali
Slide 5: What has changed since we set our last strategy
What has changed since we set our last strategy Changed economic Accelerated and environment democratised AI Inflationary environment with lower Generative AI enabling widespread adoption customer spending and population and new opportunities for productivity, customer growth, driving greater levels
Slide 6: What we have done to respond
What we have done to respond Refocused on core connectivity Transformed operating model for our customers and scalable cost base Customer satisfaction at an all time high Introduced a simpler, leaner operating model Refreshed mobile product and pricing Simplified non-core asset portfolio Increasing
Slide 7: Our strategic context ahead
Our strategic context ahead Demand will New tech brings NZ economy Competitive environment continue to increase new opportunities remains subdued will continue to change Connectivity is becoming Rapid AI advancements Economic conditions Ability to adapt organisation more central to customers’ and ne
Slide 8: SPK-30 builds on our competitive advantages
SPK-30 builds on our competitive advantages Leaders in No.1 market share¹ Most reliable mobile network Most trusted brand in our sector ³ the market in mobile and broadband with the widest coverage experience 2 Satisfied, loyal High customer loyalty in mobile base Five year growth in customer satisf
Slide 9: SPK-30 Strategy
SPK-30 Strategy Our Purpose Our Ambition Our Strategic Choices Our Enablers 1 To help all of It’s better Lead in core New Zealand with Spark connectivity People and culture Technology and AI win big in a Better network 2 digital world Simplify and Better customer optimise beyond experiences the core
Slide 10: Our ambition: It's better with Spark
Our ambition It’s better with Spark SPK-30 10
Slide 11: Grounded in what matters to our customers
Grounded in what matters to our customers Better network Network quality attributes account Better customer Following network and value, for 4 of the top 5 most important considerations when a customer is experiences customer experience is the next most important factor to customers choosing a provi
Slide 12: Where we will invest for growth
Where we will invest for growth Lead in core connectivity STRATEGIC CONTEXT OUR STRATEGIC CHOICES Contributes 80% of Spark’s gross margin Connectivity will be Spark the clear market the #1 focus of future leader in connectivity Connectivity products often capital allocation bundled by customers Mobi
Slide 13: Data centre partnership creating shareholder value in short and long-term
Data centre partnership creating shareholder value in short and long-term High quality data centre partner secured DC Co – transaction features Pacific Equity Partners (PEP) partnership secures a funding pathway to build out the planned 130MW+ development pipeline ‘DC Co’ created to hold all data ce
Slide 14: DC Co is well positioned to capture its share of this growth
DC Co is well positioned to capture its share of this growth Leading Significant Attractive market Track record of High quality Strong focus on New Zealand data development dynamics securing global customer sustainability centre platform pipeline cloud contracts relationships 11 ~ 7 ~ 32% p.a. 30% ~
Slide 15: Forecast demand is expected to grow ~8x over the next 10 years
Forecast demand is expected to grow ~8x over the next 10 years 1 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 CAGR Market demand 864 (New Zealand MW) Gen AI workloads 779 Traditional cloud Enterprise & Government 694 610 ~8x 52% 527 448 368 295 17% 226 155 112 10% 1. Based on Spark estimat
Slide 16: Lead in core connectivity
Our strategic choices Lead in core connectivity
Slide 17: Lead in core connectivity
Lead in core connectivity Mobile Broadband #1 Focus Focus on bundling with The centre of our core is mobile, mobile to improve retention, making it our priority for capital and growing wireless broadband allocation. Focus on strengthening as 5G rollout matures. our market leadership. Business connec
Slide 18: Mobile today
Mobile today Spark is the #1 mobile provider in #1 2.6m + #1 > 85% New Zealand 1 High levels of Consumer and SME #1 mobile provider customer loyalty in by connections in Enterprise accounts for >85% of – 41.4% market share1 premium segments Mobile customers and Government 2 mobile service revenue Un
Slide 19: Mobile tomorrow
Mobile tomorrow Rewarding and recognising customers Rewarding and recognising Strategic context high-value, loyal customers to support retention and trade-up into higher value Growing customer demand for data segments More Better network High levels of Spark customer loyalty customer experiences whe
Slide 20: Broadband today
Broadband today Spark is the #1 Broadband provider #1 Easy 32% 660k + in New Zealand1 #1 in market – Wireless Broadband (WBB) a convenient WBB 32% of ~32% market share1 and mobile option for customers broadband base Broadband customers 59% 5G WBB delivers superior speeds to 4G WBB2 Unique two brand
Slide 21: Broadband tomorrow
Broadband tomorrow Strategic context Better value for customers and retention for Spark through broadband and mobile bundling Mature and commoditised market – growth expected to follow migration and housing development WBB delivers material margin benefits Tailwinds supporting WBB growth – with FY30
Slide 22: Business connectivity today
Business connectivity today Spark is a leading connectivity provider for ~ 80% 1st 2.37m + 71 + businesses SME business hubs in New Zealand of our business customer base purchase Spark has built New Zealand's Devices connected to our deliver high customer connectivity products and services first 5G
Slide 23: Business connectivity tomorrow
Business connectivity tomorrow Modernised customer solutions Strategic context Transition customers from legacy to modernised solutions Business connectivity continues to be a core foundational layer Customers are modernising their connectivity solutions FY30 focus Strong customer preference to purc
Slide 24: Simplify and optimise beyond the core
Our strategic choices Simplify and optimise beyond the core
Slide 25: Beyond the core – our business solutions today
Beyond the core – our business solutions today Procurement Strategic context Resale of hardware and software licenses Leading market positions in cloud, IT Services, Data and AI Scale business compared to many Considered adjacent to core global peers, with higher profitability More fragmented compet
Slide 26: Beyond the core – our business solutions tomorrow
Beyond the core – our business solutions tomorrow Cloud IT Services Procurement Leverage global partnerships to enhance service offerings and returns Simplify portfolios by sunsetting and exiting legacy offerings A focus on digital first, automated, and AI-enabled journeys and solutions Highly utili
Slide 27: Extensive portfolio of valuable assets
Extensive portfolio of valuable assets Domestic connectivity assets International connectivity assets Digital connectivity assets Spectrum: 350MHz highest value spectrum holdings Subsea cables: connecting New Zealand MATTR: solutions to securely prove identity and to the world through our investment
Slide 28: Better Network
Our ambition Better Network
Slide 29: Better network
Better network Reliable and New value from trusted network advanced technologies Grow our Investing where it matters for our Create new New customer solutions: leverage leading leadership in customers: network upgrades and commercialisation 5G Standalone network investment to bring reliability and e
Slide 30: Customer focused connectivity
Customer focused connectivity Reliable and trusted network Reliable Proactive Resilient Safe and connectivity resolution infrastructure secure Delivering customers Leveraging AI and Investing in regional digital Protecting our customers the performance they automation to detect and infrastructure to
Slide 31: Leveraging our position as the only telco with a 5G Standalone network
Leveraging our position as the only telco New value from advanced technologies with a 5G Standalone network in New Zealand Personalised and prioritised Commercialisation customer experiences opportunities Dedicated network slices Broad range of use cases New commercial models Enables Spark to captur
Slide 32: New commercialisation opportunities from global API aggregators
New commercialisation opportunities from global API aggregators Businesses and developers use Spark is the first APIs to build into their applications New Zealand company to join global API Onward providers aggregator Aduna Aduna creates common APIs for entities running developer platforms (onward p
Slide 33: Better customer experiences
Our ambition Better customer experiences
Slide 34: Better customer experiences
Better customer experiences There when Simple and easy I am it matters to deal with valued Deliver a consistent, reliable Upweight our focus on digital Customers are recognised and rewarded network usage experience for channel, automation, and AI investment through our products and services, our cus
Slide 35: Our path to better customer experiences
Our path to better customer experiences Human assisted Digital Powered channels channels by AI Evolving retail experiences Improve acquisition Serving up the right offer to the through spark.co.nz right customer at the right time Empowering frontline teams through AI MySpark app – recognition Automa
Slide 36: Spark a leader in AI and automation capability in New Zealand
Spark a leader in AI and automation capability in New Zealand Strategy Responsible Data Predictive models High-value Enterprise-wide Global and talent AI capability and Gen AI use cases tech enablement partnerships Existing AI capability Future Focus People Improved productivity: agentic AI tool, Sp
Slide 37: Our enablers
Our enablers People and culture Financial discipline Building a culture focused on Disciplined capital and cost customers and performance by management, supporting growing engagement, investing improved shareholder returns. in targeted capabilities, and empowering Spark through AI. Technology and AI
Slide 38: Our plan for long-term value creation
Our plan for long-term value creation Revenue growth Efficiency Disciplined capital management Customer demand for data and Simplifying and optimising non-core Predictable free cash flow pricing driving mobile service New global partnerships bring scale Capital investment prioritised to revenue grow
Slide 39: Capital Management Framework
Capital Management Framework 1 Maintaining Focused on a strong balance sheet, targeting metrics consistent with current credit rating financial strength 2 Investment BAU Capex – used to Strategic Capex – capital Investment and M&A Hurdle rates: Long-run Capex and portfolio sustain and grow the inves
Slide 40: Our SPK-30 strategy ambitions
SPK-30 Our SPK-30 strategy ambitions
Slide 41: Our SPK-30 strategy ambitions
Our SPK-30 strategy ambitions FY30 Financial Ambition1 FY30 Non-Financial Ambition Productivity Annualised savings of Customer >45+ iNPS $150m-$180m by FY30 (industry best practice) (from FY24 baseline) EBITDAI Low single digit CAGR Network Maintain: Most reliable network, from FY25-FY30 with widest
Slide 42: Recap: SPK-30 strategy
Recap: SPK-30 strategy To grow competitive advantage and shareholder returns Our new strategy: This creates More reasons for customers to join and stay loyal to Spark A performance driven culture, delivering 1 Refocuses Spark on our core business of great customer and people experiences connectivity
Slide 43: Why Spark?
Positive tailwinds driving Leading market connectivity growth positions across all connectivity segments Leading AI capability Proven track record and global partnerships of cost discipline and adaptation Why Portfolio management supporting shareholder Stable, annuity-like returns and growing Spark?
Slide 44: Appendix
Appendix SPK-30 44
Slide 45: A better digital world
Low-impact, high connectivity Equitable and trusted We will reduce our environmental impact and We will champion digital equity and build enable Aotearoa to do the same through technology trust in our digital products and services In our business Reduce our environmental impact, with a Deliver trust
Slide 46: Disclaimer
Disclaimer The information in this presentation has Any forward-looking statements in Factors that could cause actual results or Except as required by law or the listing rules of been prepared by Spark New Zealand Limited. this announcement are not guarantees or performance to differ materially from
Slide 47: SPK-30
SPK-30