Spark New Zealand releases three-year strategy

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand




MARKET RELEASE – WEDNESDAY 5 APRIL 2023

Spark New Zealand releases three-year strategy

Spark today released details of its next three-year strategy to FY26, which will focus investment on data centres
and new technologies to fuel growth in Spark’s core markets and across its growing high-tech portfolio.

Spark Chair Justine Smyth said “Over the last almost three years Spark has built competitive advantage through
a strategic focus on simplification, data, new technology investment, and building a high-performance culture,
which is delivering better customer experiences and fueling market growth. This focussed execution has seen
Spark’s total shareholder returns outperform most international peers
1
.

“When combined with effective portfolio management that has delivered substantial proceeds from the TowerCo
transaction, Spark is now in a strong position to invest for future growth.”

Spark CEO Jolie Hodson said the new strategy positions Spark for success in an increasingly uncertain
environment, with a focus on empowering the people and businesses creating Aotearoa’s tomorrow.

“If there is one thing the last three years have taught us, it is that the businesses that will thrive are the ones that
can adapt the most quickly to change. We see a number of supportive tailwinds ahead of us, including the
continued exponential growth in data, acceleration of technology convergence, the return of international travel,
and rising levels of immigration. At the same time, we expect economic uncertainty to be a hallmark of the years
ahead, and as Aotearoa gets bigger, older, and more diverse, we must ensure Spark is changing alongside it.

“In this kind of environment adaptability is key, so we have set a dual focus on resilience and growth – ensuring
our investments strengthen our core today, while also building new opportunities for tomorrow. Over the next
three years, we will invest $250-$300 million in the high-growth data centre market and $40-$60 million in 5G
Standalone, which will open up new commercialisation opportunities across our core markets of mobile and
broadband, while underpinning growth into new high-tech solutions.”

In mobile and broadband, Spark will leverage its data capability and 5G investment to deliver the latest digital
experiences, personalised for its customers.

“We have really strong momentum in mobile and have stabilised our broadband base in a highly competitive
market,” continued Jolie. “Our dual brands of Spark and Skinny serve different ends of the price spectrum, we
have a unique ability to target the right product to the right customer at the right time through data, and our 5G
coverage is densifying. This sets us up to continue to grow value in mobile and to move wireless broadband
towards 35% of our base by the end of FY26.”

In the business market, Spark will grow the small-medium and enterprise segments by enabling its customers to
become more productive and sustainable through technology. Jolie said “We are an enabling business, which
means we grow when others grow. We know the inflationary environment is hitting small businesses hard, and
we are in a strong position to support our customers to unlock revenue generation and efficiency improvements.

“In enterprise, we have seen changing competitive dynamics in cloud, with the ongoing move from private cloud
to public creating sustained margin pressure. In this environment, we will upweight our focus on hybrid cloud,
where our deep expertise, local knowledge and service differentiates us, and capital investment is lower. We will
then invest to further expand our data centre capacity.”

Spark’s high-tech portfolio – which extends beyond traditional connectivity and ICT into areas such as IoT, 5G
Standalone, data and AI, and digital identity – is a focus for growth over the next three years. Spark will leverage
these capabilities to continue growing Spark Health, which delivered a 2.5-year CAGR of around 17%
2
since the
start of FY21, a new focus on converged technologies, and continued investment in subsidiary MATTR.

1
3-year TSR CAGR of 11.7% for the period FY20-22. TSR calculated as share price and dividend per share (reinvested at the ex-dividend date).
Peer group is not exhaustive but is a selected group of primarily integrated telco operators that are deemed the closest peers to Spark in terms of
market exposure.
2
FY21-H1 FY23 CAGR based on overall Health revenues including telco and procurement.

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand


“We have rapidly matured our high-tech capabilities over the last three years, but at this stage these
technologies are operating largely independently of each other,” Jolie continued. “We are now seeing the rapid
acceleration of convergence – which is about bringing these different technologies together to solve business
problems where it was not possible, or cost effective, to do so in the past.

“When you consider the challenges businesses are facing – from inflation and labour shortages, to climate
change and increasing regulation – there is a big role for technology to play in helping us do things differently.
We have grown Spark IoT from under a quarter of a million connections to 1.2 million today, with 2.5-year
revenue CAGR
3
of around 21%, and this provides a solid platform for growth into converged solutions.

“We will also continue to invest in our digital identity business MATTR, which is now working across several
international markets and recently secured a significant contract with the New South Wales (NSW) Government
in Australia. MATTR has been appointed the technology partner on the NSW Digital ID and Verifiable
Credentials programme that will be providing products that enable digital credentials to be issued via the NSW
Government’s apps, and independently verified by third parties.”

The strategy includes three enablers that underpin Spark’s success in the market: building a simple, data-driven
organisation, investing in next evolution technology, and creating an innovation culture, with sustained
investment into skills and capabilities that drive growth for both Spark and its people.

“We know our greatest asset is our people, and we will continue to invest in their development while building
innovation capability across our business and delivering sustainable high performance through a focus on
wellbeing and inclusive progression.”

Jolie reiterated that how Spark does business will remain just as important as what it will do. “Our commitment to
sustainability and weaving te ao Māori perspectives into our business is enduring and integrated throughout our
strategy. We remain focussed on supporting Aotearoa’s economic transformation, championing digital equity,
and improving our own sustainability performance.”

The strategy sets an FY26 aspiration for Spark to be digital and data-driven everywhere, the home of high-tech
solutions with digital infrastructure investments fuelling growth, and a more innovative, diverse, and sustainable
business. Jolie finished “Achieving this will lead to more highly engaged customers and people, deliver top-line
revenue growth, and sustainable EBITDAI and free cash flow growth that supports a rising dividend for our
shareholders over time.”


Authorised by:
Alexa Preston
Finance Lead Partner – Group Performance and Investor Relations

For more information contact

For media queries please contact:
Ellie Cross
Corporate Relations Lead Partner
(64) 22 630 0665
ellie.cross@spark.co.nz

For investor queries please contact:
Chante Mueller
Head of Investor Relations
(64) 27 469 3062
chante.mueller@spark.co.nz


About Spark

Spark is New Zealand's largest telecommunications and digital services company, with a purpose to help all of
New Zealand win big in a digital world. Spark provides mobile, broadband, and digital services to millions of New
Zealanders and thousands of New Zealand businesses.
www.sparknz.co.nz


3
FY21-H1 FY23

---

Empowering the people and businesses
creating Aotearoa’s tomorrow.
5 April 2023

NAU MAI
HAERE MAI
WELCOME

Strategy Overview
Spark CEO Jolie Hodson, 5 April 2023

S P A R K
P A G E
4
We are focused on delivery as we close out the FY21-23 strategy
70%
employee
engagement
+25k lift
digital equity
Skinny Jump
supporting 26k+
homes –~150% or
+15k increase
3
Spark employee
engagement
68%
2
With one quarter to go, we are making strong progress towards our goals
Target EBITDAI
margin achieved
each year and on
track for FY23
Spark’s 3-year TSR
CAGR of ~12%
outperforms
most global peers
4
~31% best cost
EBITDAI margin
Sustainable FCF
growth and
top-decile TSR
Achieved +7pp
to date, expect to
hit ambition
beyond FY23 close
Achieved +31 to
date, on track
towards ambition
+33 iNPS for
consumer and
SME customers
1
+10pp
brand strength
1. NPS metric was re-baselined in FY21 due to a change in methodology 2. Based on March 2023 survey 3. Jump base at 30 June 2020~10k. 4. See page 6.
On track for FY23 deliveryDelivery expected post FY23 closeOff track

S P A R K
P A G E
5
o~350 legacy plans
removed and 420,000
customers migrated
o1.2 million SparkApp users
o50% increase in digital
journeys
o20% reduction in call
volumes
oFrom 20,000 NZ
households in our models
to 1.4 million today
o70% marketing campaigns
automated –up from 10%
o~17% YoY increase in
conversion every year
o~17% improvement in
marketing efficiency over
the period
o5G in 66 locations
o95% of voice traffic now
migrated off the PSTN
oOTN 2.0 built
o416 RCG
1
sites now live
oData centre expansion on
track
oRealised value of passive
mobile infrastructure
assets
o68% employee
engagement score
o40:40:20 gender diversity
target achieved at Board,
LS, wider leadership group
oGender pay gap down
from 28% to 22%
oMahi Tahiwellbeing
strategy launched
We have built competitive advantage through a capability-focused strategy
Delivering in-year growth while laying strong foundations for future success and growing customer engagement by +9
Simple, intuitive
customer experiences
Deep
customer insights
Smart,
automated network
Growth
mindsets
Note: Data points based on performance to end Feb 2023 except for employee engagement which is based on latest survey during March 2023.
1
Rural Connectivity Group

S P A R K
P A G E
6
o#1 market share for
connections and service
revenue
1
o~5.5% Spark mobile
service revenue CAGR
2
oRoaming revenues back
to ~75% of pre-Covid
levels
o#1 market share for
connections and
revenue
1
oHeld base at ~700,000
oWBB now ~29% of base,
on track for 30% by FY23
oLeading cloud provider
3
oEnd-to-end service
offering across Spark
Business Group
oShifting consumption to
cloud-based services e.g.
collaboration
oSpark IoT connections
from ~250k to 1.2m and
revenue CAGR
2
of
~21.5%
oSpark Health revenue
CAGR
3
of ~17%
oDecision made to exit
Spark Sport
MobileBroadbandCloudFuture markets
These capabilities have supported our marketplace success
Driving growth in both established and future markets
1. Market share data based on IDC at Q4 2022 2. Spark internal CAGR based on 2.5 years performance FY21-H1 FY23 3. Spark’s estimate based on independent market share data

S P A R K
P A G E
7
FY23 aspiration
Revenue
1
FY23 aspiration
Costefficiencies
1
Status
Simple intuitive
customerexperiences
~$40m-$50m
Deep customerinsights~$30m-$40m
Smart automatednetwork~$55m-$65m
Growestablishedmarkets
2
~$140m-$160m
Accelerate futuremarkets~$80m-$90m
1. Aspiration represents FY23 in year revenues and cost efficiencies 2. Excludes procurement and partners
With three months to go we are on track to achieve our financial aspirations
Delivering targeted revenue growth and cost efficiencies

S P A R K
P A G E
8
Focused execution has resulted in strong returns for shareholders
Total shareholder returns of ~12% over the last 3 years, outperforming most international peers
3-year TSR CAGR
1
1
TSR calculated as share price and dividend per share (reinvested at the ex-dividend date). Three-year TSR over Spark’s FY20-FY22 period (1 July 2019 to 30 June 2022). Peer group is not exhaustive but is a selected group of
primarily integrated telco operators that are deemed the closest peers to Spark in terms of market exposure
14.7%
11.7%
11.6%
11.2%
7.9%
7.0%
5.8%
4.8%
1.7%
0.7%
(0.1%)
(0.6%)
(6.4%)
KT
Corporation
SparkDeutsche
Telekom
Telecom
Malaysia
BCESwisscomVodafone
Group
TelstraBT GroupVerizonAT&TOrangeSingTel

These strong foundations provide a platform for growth
Spark is well positioned to capitalise on this momentum and take advantage of supportive tailwinds
Continued momentum in largest market
of mobile with high demand for data
New opportunities to solve business problems
as technologies mature and converge
Competitively positioned –simpler,
data-driven, high-performing culture
Ability to invest for growth
through TowerCo proceeds
Strong track record of
disciplined execution and delivery

S P A R K
P A G E
10
More diverse
Looking ahead, our country is changing –and we need to change with it
Population growth provides tailwinds, while changing demographics bring longer term pressures and opportunities
Older
With a smaller
available workforce
by 2030 there could be 6 million of us
withmore people 65+ than0-14
large numbers will be exitingthe workforce,
with fewerentering
by 2038 Māori will make up ~18% of the population,
Pasifika ~10%, and Asian 21%
Bigger
In the next 10-15 years Aotearoa will become
2
:
1. Treasury estimates net migration of ~76,000 over the next three years (2022 Half Year Economic and Fiscal Update) 2. The newNew Zealand, Professor Paul Spoonley
In the next 3 years:
We expect
immigration
to return
1
supporting mobile and broadband
connection growth

S P A R K
P A G E
11
In this environment adaptability is key –leveraging positive tailwinds for growth, while insulating Spark from risk
Rising bar on
sustainability
Technology is a key
enabler of
decarbonisation
and broader
sustainability benefits
Network
virtualisation
broadening
competition
Network is our
foundation, and data
the new strategic
moat –differentiation
through customer
personalisation
Resilient products
and services,
opportunity to
leverage multi-brands
and productivity
benefits of tech
Political volatility
and economic
uncertainty
We see five key trends shaping our operating environment
Supports
investments in
digital infrastructure
and growth in key
markets
Exponential
growth in data
continues
Technology
convergence
accelerating
Solving business
problems through
new solutions is a
commercialisation
opportunity

This drives a dual focus on
resilience
andgrowth

S P A R K
P A G E
13
Ensuring investment for future growth also reinforces the core and enables optionality
Our strategy aims to position Spark for success in an uncertain future
oWithout differentiation the market will move
towards connectivity as a commodity
oWe see two key avenues to differentiate:
1
2
oThrough our brand strength, deep customer
insights, customer relationships breadth, and
sustained network and product investment, we
believe we can maintain our leadership position
Network and product capabilities
Holding customer relationships through
brand and deep customer insights
1
2

S P A R K
P A G E
14
We will invest in the capabilities we need to protect and promote differentiation, and grow in higher value segments
This guides a series of ‘no regrets’ investments for future growth
DivestmentsInvest for growth
Divestment of 70% stake
in passive mobile assets
which are no longer
competitive
differentiators –
delivering net proceeds
of $911 million
Challenges achieving
scale since entry,
combined with
escalating content
rights costs, informed
decision to exit sports
streaming market
oData centre portfolio
expansion
oNew technologies –
5G Standalone and
multi-access edge
compute
oDigital identity
TowerCo
Sport
Through effective portfolio managementover the last three years, we can invest to support our strategy:

Our purpose
We will empowerthe people and businesses creating Aotearoa’s tomorrow by:
Our FY24-26 focus
Our
enablers
Our commitment:
to stand together
for generations
to come
MATOMATO: we succeed together
TŪHONO: we connect
WHAKAMANA: we empower
MĀIA: we are bold
Āwhinatia ngā tāngata katoa o Aotearoa kia
matomato te tipu i te ao matihiko
NEW ZEALAND
TO HELPALL OF
WIN BIGIN A DIGITAL WORLD
Our values
Simple, data-driven
organisation
Sustainable
Spark
Economic
Transformation
Digital
Equity
Toitū Sustainability at Spark
Next evolution
technology
Innovation
culture
Enabling New Zealand Businesses to grow and become
more productive and sustainable through technology
GROW
High-tech Solutions
LEAD
SME and Business
Bringing New Zealanders the best digital-first
experiences, curated to their needs
OPTIMISE
Broadband
LEAD
Mobile
Te Korowai Tupu
Our
Māori Strategy
Our FY26
outcomes
Low / mid
singledigit CAGR
EBITDAI growth
>10%
Free cash
flow growth
+10 lift
Customer
engagement
Top decile
People
engagement
Top quartile
Sustainability
benchmarking

S P A R K
P A G E
16
Investing in data-driven personalisation and tomorrow’s technology to drive growth in the core, while opening up new
commercialisation opportunities
We will empower the people and businesses creating Aotearoa’s tomorrow
oDeepening data-driven personalisation by individuals and households, while
leveraging our technology investments to deliver the latest digital
experiences to New Zealanders
Consumer
SME and
business
High-tech
oDelivering scalable, standardised technology solutions that meet the needs of
our SME customers, accelerating simplification and portfolio focus in
business to deliver growth and efficiency for our customers and Spark, and
investing in the high-growth data centre market
oLeveraging newcapabilities and technology convergence to create
innovative solutions to customer problemsthat unlock new value pools

S P A R K
P A G E
17
oContinuing to deliver a highly secure, automated, and resilient network, while
investing in the digital infrastructure our customers need to grow
oDeploying 5G Standalone gives us the opportunity to enable ‘fibre-like’
experiences, accelerating our competitiveness and fuelling new growth areas
Next
evolution
technology
Simple
data-driven
organisation
Innovation
culture
oExtending the competitive advantage we have built through simplicity and
data in consumer to SME, business, and the Spark enterprise –using data-
driven insights to improve customer experiences and efficiency
Further building our differentiation and supporting growth across mature and growing markets
We will continue to invest in the enablers of our marketplace success
oFuelling our future growth ambitions and differentiating Spark through top
decile people engagement

S P A R K
P A G E
18
oWe will continue to pursue growth that supports Aotearoa New Zealand’s
economic transformation, protects our natural environments, and helps to
close the digital divide
Toitū
Sustainability
at Spark
Te Korowai Tupu
Our commitment to sustainability and supporting Māori aspirations is enduring and integrated throughout our strategy
Howwe do business remains just as important as whatwe will do
oOur Māori Strategy finds the sharedspace between te ao Māori and the
corporate world, with a particular focus on meaningful partnerships that
increase Māori participation and progression in our sector and support
the revitalisation of te reo

S P A R K
P A G E
19
Growing our business by enabling others –our customers, our people, and Aotearoa
With this focus we will deliver sustainable growth for our shareholders
Top-line revenue growth
Dividend growth through
disciplined capital management
and free cash flow growth
Market-leading total
shareholder returns
1
Our FY24-26
strategy will
deliver
EBITDAI growth through
increasing revenue and
cost discipline
Reinvestment in the business
for incremental returns
1. Relative to international telco peer group

Our purpose
We will empowerthe people and businesses creating Aotearoa’s tomorrow by:
Our FY24-26 focus
Our
enablers
Our commitment:
to stand together
for generations
to come
MATOMATO: we succeed together
TŪHONO: we connect
WHAKAMANA: we empower
MĀIA: we are bold
Āwhinatia ngā tāngata katoa o Aotearoa kia
matomato te tipu i te ao matihiko
NEW ZEALAND
TO HELPALL OF
WIN BIGIN A DIGITAL WORLD
Our values
Simple, data-driven
organisation
Sustainable
Spark
Economic
Transformation
Digital
Equity
Toitū Sustainability at Spark
Next evolution
technology
Innovation culture
Enabling New Zealand Businesses to grow and become more
productive and sustainable through technology
GROW
High-tech Solutions
LEAD
SME and business
Bringing New Zealanders the best digital-first
experiences, curated to their needs
OPTIMISE
Broadband
LEAD
Mobile
Te Korowai Tupu
Our
Māori Strategy
Our FY26
outcomes
Low / mid singledigit
CAGR
EBITDAI growth
>10%
Free cash
flow growth
+10 lift
Customer
engagement
Top decile
People
engagement
Top quartile
Sustainability
benchmarking

S P A R K
P A G E
21
Bringing New Zealanders the best digital-first experiences, curated to their needs
Leveraging our competitive advantages in brand, data, and technology investment
1
2
Multi-brand market approach
through Spark and Skinny
Technology investment enabling
product innovation and meeting
customer data needs
3
Unique ability to target the right
product to the right person
through data and AI capability

S P A R K
0
200
400
600
800
1000
1200
H1 FY21H2 FY21H1 FY22H2 FY22H1 FY23
Spark Mobile Service Revenue Growth
vs Total Market
1
SparkOther
P A G E
22
We have strong momentum in the growing mobile market
Spark is well positioned to serve increasing customer demand for data and richer entertainment experiences
oSpark #1 connections and mobile service revenuein a growing
market
3
oCustomer demand for data continues to increase and will grow
further as 5G applications drive higher usage (i.e., gaming)
oReturn of high-value mobile roaming revenues continuing as
New Zealanders embrace international travel once again
oSupportive tailwinds from immigration
Mobile
Broadband
1. IDC 2. Spark calculation based on 2.5 years performance H2 FY20-H1 FY23 3. IDC Q4 2022
CAGR
2
4.6%
CAGR
2
5.5%

S P A R K
P A G E
23
Just what IneedJust what my householdneedsThe latest digital experiences
Leverage multi-brand positioning
oCustomers can choose a plan that
meets their needs, regardless of
usage or budget
oIn-demand services (e.g. Netflix,
Spotify) maintain Spark’s value-
added position
oLead on value with Skinny
Increase product household density
oLeverage data capability to serve
more household needs
o‘Mix and match’ modular product
offerings, enabling personalised
household offers
Monetise 5G latency and capacity
oAccelerate local and global
partnerships to offer richer
customer experiences, leveraging
latency, speed, and capacity
oAnnual price reviews and
'experience' based consumption
plans
oInsulate against recessionary
impacts
oMaintain mobile momentum in a
highly competitive market
oGrow share of wallet through
adjacent products
oGrow mobile ARPU
oGrow mobile ARPU through higher
data use casesand plan
monetisation
We will grow value by focussing on three core customer benefits
Deepening personalisation by individual and household, while delivering the latest digital experiences to Aotearoa
Mobile
Broadband
What we will do
Benefits

S P A R K
P A G E
24
The broadband market will remain highly competitive
The role of wireless broadband remains critical to our competitiveness, allowing Spark to offer more value and choice
Mobile
Broadband
FY24-26 tailwinds
oHigh levels of competition, increasing access costs
squeezing margins, and limited ability to differentiate
oDespite this, Spark maintained its base and #1 revenue
and connection share
1
and has grown its wireless
broadband (WBB) base to ~29%
2
–on track to hit 30%
target by end FY23
oWhile it is a challenging market, broadband enables
deeper household relationships than mobile alone, and
supports cross-sell and up-sell
oSpark’s data capability has matured and enables highly
targeted and efficient acquisition and retention –
a competitive advantage in our market
o5G WBB growth will accelerate through densification and
5G Standalone –with early Standalone trials delivering
download speeds of up to 700Mbps and single-digit
millisecond latency
Current broadband market performance
1. IDC tracker Q4 2022 2. Based on position at end Feb 2023

S P A R K
P A G E
25
Just what my household needsThe best value for my money
oLeverage data capability to identify
suitable WBB households
oExpand addressable market as 5G
matures and can compete against
some fibre products
oWBB supports improved broadband
economics
oAnticipate WBB to grow from ~30% of
base in FY23 towards 35% by end FY26
oLeverage data capability to target
personalised offers for highest return
oLead on value with Skinny
oProduct simplification
oMaintaining broadband leadership
with improved economics
Leveraging maturing 5G capabilities to grow WBB and leading the market in optimising connectivity value
We will grow broadband value by focussingon two core customer benefits
Mobile
Broadband
What we will do
Benefits

Our purpose
We will empowerthe people and businesses creating Aotearoa’s tomorrow by:
Our FY24-26 focus
Our
enablers
Our commitment:
to stand together
for generations
to come
MATOMATO: we succeed together
TŪHONO: we connect
WHAKAMANA: we empower
MĀIA: we are bold
Āwhinatia ngā tāngata katoa o Aotearoa kia
matomato te tipu i te ao matihiko
NEW ZEALAND
TO HELPALL OF
WIN BIGIN A DIGITAL WORLD
Our values
Simple, data-driven
organisation
Sustainable
Spark
Economic
Transformation
Digital
Equity
Toitū Sustainability at Spark
Next evolution
technology
Innovation culture
Enabling New Zealand Businesses to grow and become more
productive and sustainable through technology
GROW
High-tech Solutions
LEAD
SME and business
Bringing New Zealanders the best digital-first
experiences, curated to their needs
OPTIMISE
Broadband
LEAD
Mobile
Te Korowai Tupu
Our
Māori Strategy
Our FY26
outcomes
Low / mid singledigit
CAGR
EBITDAI growth
>10%
Free cash
flow growth
+10 lift
Customer
engagement
Top decile
People
engagement
Top quartile
Sustainability
benchmarking

S P A R K
P A G E
27
Leveraging our competitive advantages in brand, national and local reach, data capability, and strategic partnerships
1
2
Strong position in market with
~120k customers and effective
‘Local like you’ brand positioning
24 locally owned and operated
Business Hubs coupled with
national IT partner channel and
global partnerships
3
Data and AI capability supporting
SME growth
Enabling SMEs to grow and become more productive and sustainable
SMEBusiness

S P A R K
P A G E
28
This is supporting a predicted ~$90 million increase in the addressable IT market by 2026, in addition to telco growth
Estimated addressable IT revenue, $m, SME
4
Data centreDevicesSoftwareIT services
+4.2%
CAGR
+4.3%
CAGR
~$90m increase in the addressable IT market from 2021-2026
2019
2021
2026
SMEBusiness
99%
#1
$8.5bn
of New Zealand businesses are
small-medium enterprises
1
concern for SMEs is rising costs
2
value to the NZ economy from SME
digitisation
3
4.3%
CAGR in addressable IT revenue to
2026
4
–highest growing segment
1. Statistics New Zealand –SME defined as a company with 0-99 employees 2. Spark business survey 2022 3. MYOB
4. Spark estimate based on external research and analysis (supported by McKinsey) including independent market growth data. SME market defined as 0-99 employees
In SME challenging economic conditions are driving a focus on productivity
~$330m
~$350m
~$440m

S P A R K
P A G E
29
Growing value beyond mobile and broadband and positioning Spark as the ‘go to’ telco and ICT provider
SMEBusiness
We will support SMEs to improve revenue generation and efficiency
SMEs 20+ employeesSMEs 3-20 employees
Standardised, digital-firstHigher value solutions
oProductised, scalable IT services delivering consistency across NZ
oCurated IT solutions underpinned by partnerships
oDigital-first, omnichannel experience with self-serve customer
journeys for core products
oBundled solutions combining IT hardware, software and professional
services

S P A R K
P A G E
30
Leveraging our competitive advantages in end-to-end capabilities, specialist skills, scale, and strategic partnerships
1
2
End-to-end capability, from
connectivity to transformation –
a one-stop-shop for customers
Scale, technology investment,
and global partnerships support
customer innovation
3
Highly trusted partner with local
knowledge, deep expertise, and
robust cyber security capability
Enabling NZ businesses to grow and become more productive and sustainable
SMEBusiness
1. Multi-access edge computing
1.

S P A R K
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As businesses continue to harness the power of technology for productivity and efficiency gains
SMEBusiness
oContinued strong market growth expected across Spark’s
key segments
oCompetitive dynamics changing, particularly in cloud,
creating sustained margin pressure
oReassessed our role across the B2B value chain to target
future investment for maximum returns and align our cost
base to changing segment growth profiles
The B2B market remains attractive with strong growth predicted
1. Spark’s estimates based on IDC market share data. Excludes procurement and partners
FY22FY26
IT & Managed Services market revenue growth
projected at ~7% CAGR to FY26
1
Managed Data & NetworksCollaborationService ManagementSecurityCloud
~$3.3b
$4.1b -$4.3b
~13%
~10%
~2%
~7%
<1%
CAGR

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SMEBusiness
oMaintain as a point of differentiation
oSupporting customers with local knowledge and expertise
oIncrease investment in high-growth data centre market
oShift from traditional connectivity to software defined networking
oFocus on creating owners economics
While maintaining our position as an end-to-end service provider with local knowledge and service
Connectivity
Services and
solutions
oService Management –outsourced IT services
oCloud and data consulting
oCloud –focus on IaaS, with resale of public cloud
oSecurity
oCollaboration
oManaged Data
o16 data centres nationally
oCurrently investing to expand capacity
oManaged Connectivity –copper, fibre, wireless
Products
Infrastructure
CURRENT FOCUS
FUTURE FOCUS
We will right size investment in products and upweight infrastructure
oUpweight hybrid focus and related commercial models to reduce
costs and capital investment
oMaintain Security, Collaboration, and Managed Data

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We will optimise our cost base through accelerated simplification
We see four key drivers of simplification that will improve returns while delivering enhanced customer experiences
SMEBusiness
Standard
portfolios
Modern
solutions
Data-driven
operating model
Consolidation
oRemoving back-office
and service delivery
duplication
oAccelerating legacy
retirement and
transitioning customers
to modern solutions
Standardisation
oTransitioning from
bespoke products to
more standardised and
modular products
Efficiency
oSimplified operating
model enhanced by
data insights
oCommon tools across
all parts of the group
ensuring consistent
service delivery
Digitisation
oIncreasing the number of
customer interactions
performed on more cost-
effective digital channels

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SMEBusiness
We will continue to invest in the high growth data centre market
Exploring opportunities for further infrastructure investment with incremental returns
oData centre built capacity is expected to grow from ~50MW
today to >200MW by 2026 (>40% CAGR)
1
oDelivers long-term, high-margin revenues
oAdditional revenue opportunities from selling services over the
top and creating strategically important sites –i.e. Mayoral
Drive now New Zealand’s most connected site
oLeverages Spark’s existing property, exchange, and connectivity
assets and capabilities
oReinvest TowerCo proceeds into expanded data centre portfolio
oWe will be investing further at our Takanini site, while also
investigating other locations
oExplore partnership opportunities with hyperscalersas they
rapidly scale in local markets
Spark Takanini data centre expansion, completion due mid 2023
1. Spark analysis based on public commitments and market information on future intentions in the wider Auckland region
GROWTH OPPORTUNITY
OUR STRATEGY

Our purpose
We will empowerthe people and businesses creating Aotearoa’s tomorrow by:
Our FY24-26 focus
Our
enablers
Our commitment:
to stand together
for generations
to come
MATOMATO: we succeed together
TŪHONO: we connect
WHAKAMANA: we empower
MĀIA: we are bold
Āwhinatia ngā tāngata katoa o Aotearoa kia
matomato te tipu i te ao matihiko
NEW ZEALAND
TO HELPALL OF
WIN BIGIN A DIGITAL WORLD
Our values
Simple, data-driven
organisation
Sustainable
Spark
Economic
Transformation
Digital
Equity
Toitū Sustainability at Spark
Next evolution
technology
Innovation culture
Enabling New Zealand Businesses to grow and become more
productive and sustainable through technology
GROW
High-tech Solutions
LEAD
SME and business
Bringing New Zealanders the best digital-first
experiences, curated to their needs
OPTIMISE
Broadband
LEAD
Mobile
Te Korowai Tupu
Our
Māori Strategy
Our FY26
outcomes
Low / mid singledigit
CAGR
EBITDAI growth
>10%
Free cash
flow growth
+10 lift
Customer
engagement
Top decile
People
engagement
Top quartile
Sustainability
benchmarking

S P A R K
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1.2.3.
We will leverage growing demand for high-tech solutions in three key areas
Delivering better outcomes for people and businesses from new technology adoption
Solving business problems
through converged
technology solutions
Supporting the digitisation
of the healthcare sector
and growing digital health
Offshore growth in digital
identity and verifiable
credentials

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High-tech:
Converged solutionsHealthMATTR
o94% of doctors surveyed believe
healthcare is in a ‘workforce crisis’
1
oIn 2022, 1 in 6 New Zealanders were aged
65+, in 2028 this will increase to 1 in 5,
and by 2050 1 in 4
4
oIncreasing number of people with non-
communicable diseases and comorbidities
increasing patient complexity
3
oTechnology debt and lack of data
interoperability a critical barrier to digital
health transformation
6
The healthcare sector is under significant strain, as patient needs grow
Now more than ever technology is a critical enabler of making patient care more efficient, personalised, and accessible
oHealthcare professionals burnt-out –
80% of doctors globally at capacity or
over-extended
2
oNearly 50% of consumers surveyed use
wearables or smart devices and of that,
over 80% would be willing to share their
personal health data with a physician
5
1.Workforce Crisis Survey 2022, New Zealand Women in Medicine
2.Deloitte, Shaping the Physician of the Future, 2019
3.Ministry of Health, Global Burden of Disease Study provides important insights into the health of New Zealanders
4.Statistics New Zealand, One million people aged 65+ by 2028, July 2022
5.Deloitte, Tapping virtual health’s full potential, September 2022
6.Insight generated through customer interviews

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Digital health
platform expansion
Digital hospital and
IoMT solutions
Ongoing growth in core:
connect, digitise, transform
oModernise digital infrastructure
and cloud services to enable
digital transformation
oCreate health specific bundles
to solve industry problems
oStandardise care delivery
through digital health platforms
oGrow and expand existing
platforms –HealthTxt
1
, Kete
Waiora
2
and Tahi
3
–integrating
broader financial and workforce
management services
oEstablish new health solutions
for Digital Hospitals and
theInternet of Medical Things
(IoMT)
We will support sector transformation with core services and high-tech solutions
Helping patients live healthier lives through the power of technology
1. A national texting platform2. A personal health record 3. A health interoperability engine
High-tech:
Converged solutionsHealthMATTR

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A new type of freedom
through digital trust
Solving the historically difficult challenges of
security, privacy, and data verification
Introducing MATTR
A Spark subsidiary, operating as a standalone business
High-tech:
Converged solutionsHealthMATTR

S P A R K
VERIFIER
Relying parties
ISSUER
Credential source
HOLDER
Holder/consumer
P A G E
40
Over 1.2 million credit card
numbers leaked on hacking
forum
02/09/2022
Nearly 1 billion emails were
exposed in a single year,
affecting 1 in 5 internet users
06/03/2023
NEWS
Investors Lost $3.8 Billion to
Scams Last Year
23/02/2023
MATTR is creating anew world of digital trust
Providing real world solutions to human impacting problems
High-tech:
Converged solutionsHealthMATTR

S P A R K
Product
Customers and Partners
Deep Tech
Community and standards
contributions
MATTR Pi –Our SDK platform
Credential
Generation
Credential
Management
Credential
Verification
Ecosystem
Support
Messaging
Extensions
Platform
Management
MATTR Capabilities
MATTR VII –Our flagship cloud
based API platform
Lab and field testing
Prototyping
Practical Implementations
Spark’s investment in MATTR reached commercialisation in FY22
MATTR is a SaaS company providing platform products for Enterprise, Governments and OEMs
Our approachCreating new opportunities
Break silos
Share data across contexts with content integrity
and data / document authenticity built in
Build bridges
Bridge the gap between physical and digital worlds,
centralised and decentralised architectures,
web 2 and web 3
Consent and privacy
Simple and convenient ways for people to 'hold their
own data' and manage consent. New privacy respecting
selective disclosure capabilities
P A G E
41
High-tech:
Converged solutionsHealthMATTR

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2021
CAGR 91.3% from 2021 to 2031
2031
$48m
$28bn
Verifiable Credential
Ecosystems
Assurance as a
Service
Verifiable
supply chains
Solutions e.g.
digital notarization,
micro credentials
The global digital identity market is significant
With a predicted CAGR of 91.3%
1
over the decade from 2021 to 2031
Decentralised Identity:
Market Size (non-biometric)
Flexible Infrastructure for
business model innovation
High-tech:
Converged solutionsHealthMATTR
1. Allied Market Research, 2022

S P A R K
MATTR provides end-to-end credential lifecycle management
Flexible product capabilities for customers across journeys, profiles, and roles
P A G E
43
Credential
lifecycle
management
Credential
profiles
User
experience
journeys
MATTR Security Framework
High-tech:
Converged solutionsHealthMATTR

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Themarket is starting to form and MATTR is working with
businesses and governments across the globe to develop
scalable solutions.
MATTR has secured a significant contract with the
NSW Government in Australia.
MATTR is the technology partner on the NSW Digital
ID and Verifiable Credentials programthatwill be
providing products that enable verifiable credentials to
be issuedviathe NSW Government’s apps, and
independently verified by third parties.
Key Themes
Enterprise
Readiness
Credential
Provisioning
and Issuance
Self-Service
VII Ops,
Management and
Configurations
Wallet
Solutions
Multi Credential
Profile Support
Self-Service Ops,
Management and
Configurations
MATTR has secured several overseas clients in public and private sectors
Over the next three years MATTR will scale further as the market forms and growth accelerates
MATTR’s long-term product investment roadmap is prioritised by
market maturity and product vision
Trusted
Ecosystems
High-tech:
Converged solutionsHealthMATTR

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Spark’s high-tech capabilities are rapidly maturing
oIoT connections hit 1.2 million
oIoT networks reaching up to 99%
of population
oStake in environmental IoT
business Adroit
oIncreasing demand
oGrowing position in Qrious
oAI Principles guide ethical use
oMATTR commercialisation
oDigital trust, security, and privacy
in demand due to cyber risks
oOffshore growth opportunity
oSpark IoT, Christchurch City
Council, and Fire and
Emergency NZ using IoT to
predict and prevent forest fires
Each capability is enabling new business solutions –but at this stage, largely independently of each other
oSpark, Nokia, and MBIE
established a 5G mmWave test
site in North Canterbury for PGG
Wrightson to run its rural
operations over 5G connectivity
oA project with Qrious and
KiwiRail is underway using
weather data, machine learning,
and data-driven sailing to reduce
fuel costs and emissions
oMATTR secured a significant
contract with the NSW
Government as a key technology
partner on the NSW Digital ID and
Verifiable Credential program
oNationwide 5G coverage
o5G Standalone network trials
oFirst MAEC
1
pilot
oExploring 5G mmWave
Data analytics and AIDigital identity5GInternet of Things (IoT)
2
1. Multi-access edge computing 2. Connections and network coverage at Feb 2023
High-tech:
Converged solutionsHealthMATTR

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Spark is starting to trial converged solutions that unite these capabilities
Successful deployments will identify use cases that can be productionised and applied across multiple sectors
oSpark and Qrious pilot for EnviroNZ
oHazard detection system using AI, machine
learning, computer vision, IoT video cameras,
5G connectivity and local edge computing
oCan detect if people are too close to
excavators working in the waste disposal area
at a busy resource recovery centre
oHelps solve a health and safety challenge
applicable to a wide range of businesses
High-tech:
Converged solutionsHealthMATTR

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In the next three years we will leverage convergence for growth
Unlocking new value through solutions that solve business problems –from cost inflation and labour shortages to
emissions reductions, efficiency, and regulatory compliance
High-tech:
Converged solutionsHealthMATTR

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We are not starting from scratch –with presence across multiple sectors
Providing a strong connectivity-based foundation for future growth into higher-value converged solutions
High-tech:
Converged solutionsHealthMATTR
Agriculture
Commercial
Facilities
ConstructionHealth
Public
Sector
Transport and
logistics
Tracking
solutions
o
Asset tracking
o
Fleet tracking
Water
solutions
o
Water usage
o
Water quality
Productivity,
safety and indoor
monitoring solutions
o
Temperature
o
Occupancy
o
Healthy environments
o
Energy use
o
Parking
Outdoor
environmental
monitoring solutions
o
Air quality
o
Vibration
o
Noise
o
Soil
o
Fire detection
TEMP
+ HUMIDITY
OCCUPANCY
HEALTHY
ENVIRONMENT
ENERGY
USE
WATER
QUALITY
AIR
QUALITY
VIBRATIONNOISE
M O N I T O R O U T D O O R S
SOIL
WEATHER
WATER
USAGE
M O N I T O R I N D O O R S
T R A C K I N G
ASSET + FLEET
Current IoT
use cases
Applied across
multiple sectors

Our purpose
We will empowerthe people and businesses creating Aotearoa’s tomorrow by:
Our FY24-26 focus
Our
enablers
Our commitment:
to stand together
for generations
to come
MATOMATO: we succeed together
TŪHONO: we connect
WHAKAMANA: we empower
MĀIA: we are bold
Āwhinatia ngā tāngata katoa o Aotearoa kia
matomato te tipu i te ao matihiko
NEW ZEALAND
TO HELPALL OF
WIN BIGIN A DIGITAL WORLD
Our values
Simple, data-driven
organisation
Sustainable
Spark
Economic
Transformation
Digital
Equity
Toitū Sustainability at Spark
Next evolution
technology
Innovation culture
Enabling New Zealand Businesses to grow and become more
productive and sustainable through technology
GROW
High-tech Solutions
LEAD
SME and business
Bringing New Zealanders the best digital-first
experiences, curated to their needs
OPTIMISE
Broadband
LEAD
Mobile
Te Korowai Tupu
Our
Māori Strategy
Our FY26
outcomes
Low / mid singledigit
CAGR
EBITDAI growth
>10%
Free cash
flow growth
+10 lift
Customer
engagement
Top decile
People
engagement
Top quartile
Sustainability
benchmarking

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We will focus on a core set of technology capabilities that enable differentiation
Our investment will deliver a leading network for New Zealand and the technologies that enable innovation
Enablers:
Technology
Simplicity & Data
Culture

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We will deliver next evolution technology that enables a more digital tomorrow
Resilient,
adaptive,
and automated
Simplified and
sustainable
New
technology
development
oGreater diversification –smaller impact zones and
orchestrated failover
oNetwork automation to enable responsiveness and fixing
faults remotely, in real time
o7x network capacity
oPSTN exited
o3G exited
oCustomers migratedoff legacy to modern technologies
o5G densification and extension into rural
oProductionised Standalone and Edge capability
oStrategic partnerships supporting development
oPreparation for 6G + productionised use of mm-wave
oMeeting exponential growth in data
oRestoring customer services quickly
oSupporting NZ’s digital economy
growth
oFaster, more efficient, future-proof
services for our customers
o3G refarming supporting 5G rollout
oNew growth in converged tech
oMobile ARPU growth
oWBB addressable market growth
Our technology investment will continue to underpin growth in our consumer and business segments
Enablers:
Technology
Simplicity & Data
Culture
What we will do
What it delivers

S P A R K
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oChief Information Security Officer (CISO) has
security operations responsibility
oAudit and Risk Management Committee of
Board has governance responsibility
oUtilise industry best practice frameworks,
including ISO27001 and NIST CSF
2
oProcesses independently assured by internal
risk and audit function and externally
validated by qualified cyber security
consultants or auditors
oLarge security operations, with over 180
security subject matter experts
oPeople play a critical role in helping to
detect and defend against potential cyber
security threats
oAll Spark people undertake cyber security
training, to equip them in identifying and
preventing attacks
oSpark Cyber Security Incident Response Plan
guides response to threats
oAll Spark services and networks go through
multiple security checks during the ‘design’,
‘build’, and ‘operate’ phases
oInvested heavily in threat intelligence platform
which curates the latest threat indicators that
we correlate across our environments.
oAdopted industry best practice frameworks
such as MITRE ATT&CK
1
oInvested in security automation, orchestration,
and machine learning, to stay ahead of always
evolving security threats
1. A curated knowledge base and model for cyber adversary behaviour 2. National Institute of Standards and Technology CyberSecurity Framework
GOVERNANCEOPERATIONSCAPABILITY
Sustained investment in cyber security capability
Spark’s technology investment is underpinned by robust cyber security capability, operations, and governance
Enablers:
Technology
Simplicity & Data
Culture

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Personalised
omni-channel
experiences
Spark data-driven
op model and future
business systems
B2B simplified
and data-driven
oCustomer andhousehold data-driven marketing
oPrecision targeting expanded to non-Spark customers
oGreater personalisation across physical and digital channels
oProactive customer issue resolution
oPersonalised content and relevant
offers for customers
oConsistent and leading experiences
across physical and digital channels
oFaster and easier issues resolution
oSingle view of the customer, proactive churn management
oSimplified portfolios, modern solutions bundled
oA digital service offering and modernised sales model
oModern, standardised, future-proof
products aligned to business needs
oSpark is easier to do business with
oIssues are resolved quickly
oBetter customer and people
experiences
oRisk and spend management
oConsistent channel experience
oData and AI capability extended enterprise-wide
oAutomated, modular systems leveraging common
technologies
oCRM replaced with modern service orientated architecture
A simple, data-driven organisation
Making it easier and fasterfor customers to find and purchase products or services that meet their individual needs
Enablers:
Technology
Simplicity & Data
Culture
What we will do
What it delivers

S P A R K
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P A G E
54
To deliver our aspirations, our data capability will be extended enterprise-wide
oTargeting acquisition and retention
at highest value households,
delivering personalised offers to
boost conversion
oSingle view of businesscustomers
enabling targeted offers, andease
of doing business with Spark
oEnhanced product availability,
personalised customer experiences,
and improved store efficiency
oUnderstanding customer level
network experiences, directing
investment to highest returns
oAdvanced workforce planning,
improved productivity across the
enterprise through automation
oContinued robust governance and
best-practice AI and privacy
policies and practices
Delivering revenue generation and efficiency benefits across all markets and Spark-wide
Enablers:
Technology
Simplicity & Data
Culture

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Persona-based
model
oA platform that supports
digital product and services
with ICT offerings as a single
vertical, vs. telco-centric
oGreater interoperability across
the business and between
subsidiaries and partners
oDeep understanding of
individuals and customers
through data capability
oShared journeys across channels
and ‘unbundled’ CRM enabling
best of breed capabilities
oSystems that encourage
and enable innovation
and automated capability
release to market
oEmbedded security,
automation first principles,
and fast work flows
Modular, open
ecosystem
architecture
Digital services
company
focussed
Omni-
channel
Enabling
innovation
Modern
engineering
We will invest in future business systems that support our success in market
Adding further value to our re-engineered systems, with CRM that supports innovation and future growth
Enablers:
Technology
Simplicity & Data
Culture

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What will Spark
look like in the
future?
B2C CUSTOMER
•I can easily access Spark Group
capabilities where it makes sense
•Being part of the Spark Group helps
us to accelerate our growth and
gain competitive advantage
SPARK SUBSIDIARY
•It is easier to sell through Spark than go direct
•Spark provides access to industry leading capabilities that
extend our reach into new and existing markets
•I receive solutions from Spark that
have reliable supporting processes
and integrate seamlessly into my
business’s systems
PARTNER
•I am attracted to Spark’s culture and ways of working
•I can rapidly respond to business needs with innovative
and easily scaled ideas
•My ability to innovate is enabled by automated
processes and modern IT architecture
EMPLOYEE
•I have direct access to customer
insights and AI-driven suggested
recommendations for the customer
•My customers use the same digital
journeys as me, making it faster and
easier to help them
Cloud
AI
Big Data
B2C,
B2B2C
B2B,
B2B2B
In-house
Ecosystem
Powered
X-Industry
Core Telco
•I trust Spark to offer me
relevant and personalised
digital experiences
•I can easily start and finish
journeys anywhere,
anytime, any place
FRONTLINE AGENT
B2B CUSTOMER
Enablers:
Technology
Simplicity & Data
Culture

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Innovation culture will support growth for our people and Spark
Advanced talent,
skill development,
and inclusive progression
Future ways of working
and insight-led
people experiences
Healthy lives and
safe environments
Diverse and
inclusive culture
Responding to our operating environment with four key focus areas critical to our success
We will provideworld-leading people experiences and market success for Spark as Aotearoa
changes –with an increasingly older and more diverse population, significant need for upskilling
and reskilling, and a tight labourmarket:
Enablers:
Technology
Simplicity & Data
Culture

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oAttracting, developing and retaining critical roles
oL&D for growth –innovation, performance, adaptivity
oOwnership of reskilling, progression pathways and pipeline
development –Spark DevelopmentIncubator
Advanced talent,
skill development, and
inclusive progression
oAdapting tochanging talent needs
oGrowing future leaders
oEquipping talent to deliver growth
Future ways of working
and insight-led
people experiences
oContinue to evolve ways of working
oUsing data and insights to co-create differentiated people
experiences
oGroup-wideagility
oFlexibility for our people
oEnhanced ability to attract and retain in
a competitive market
Healthy lives and
safe environments
oMaintain comprehensive ‘gold standard’ of health, safety
and wellbeing management
oIntegrated into people experiences, leadership, and ways of
working
oSustainable and safe work practices
for high performance
oHigh levels of wellbeing
Diverse and
inclusive culture
oData-led goal setting, modelling, and tracking
oDiversity, equity, and inclusion fully integrated across
innovation culture focus areas and initiatives
oA workforce reflective of our diverse
country and customer base
oBetter outcomes through diversity
Fueling Spark’s growth through highly skilled people and unrivalled people experiences
We will create a top decile innovation culture
Enablers:
Technology
Simplicity & Data
Culture
What we will do
What it delivers

Our purpose
We will empowerthe people and businesses creating Aotearoa’s tomorrow by:
Our FY24-26 focus
Our
enablers
Our commitment:
to stand together
for generations
to come
MATOMATO: we succeed together
TŪHONO: we connect
WHAKAMANA: we empower
MĀIA: we are bold
Āwhinatia ngā tāngata katoa o Aotearoa kia
matomato te tipu i te ao matihiko
NEW ZEALAND
TO HELPALL OF
WIN BIGIN A DIGITAL WORLD
Our values
Simple, data-driven
organisation
Sustainable
Spark
Economic
Transformation
Digital
Equity
Toitū Sustainability at Spark
Next evolution
technology
Innovation culture
Enabling New Zealand Businesses to grow and become more
productive and sustainable through technology
GROW
High-tech Solutions
LEAD
SME and business
Bringing New Zealanders the best digital-first
experiences, curated to their needs
OPTIMISE
Broadband
LEAD
Mobile
Te Korowai Tupu
Our
Māori Strategy
Our FY26
outcomes
Low / mid singledigit
CAGR
EBITDAI growth
>10%
Free cash
flow growth
+10 lift
Customer
engagement
Top decile
People
engagement
Top quartile
Sustainability
benchmarking

S P A R K
P A G E
60
Through Te Korowai Tupu we aim to weave a te ao Māori perspective throughout Kora Aotearoa (Spark NZ)
We want our culture to reflect and uplift New Zealand’s unique heritage
Te Korowai Tupu is inspired, driven, and led by kawa (protocol), tikanga (process), and kaupapa Māori. It takes the threads of a
tangata whenua (indigenous people) world view that can be woven across Kora Aotearoa –into strategies, actions, and values.
Over the next three years we will focus on:
Meaningful partnerships that deliver great
outcomes for Māori
Increasing Māori representation in the
technology sector
Focus on Te Tiritio Waitangi principles of
protection, partnership, and participation
Supporting the normalisation of tereoMāori
(language) and tikanga Māori (practices)
Commitments:Te Korowai Tupu
Toitū Sustainability at Spark

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We will continue to pursue sustainable growth
Our three focus areas are enduring, representing the highest materiality to Spark and our stakeholders
Sustainable
Spark
Economic
Transformation
Digital
Equity
oSignificant investment in accelerated 5G rollout
oOngoing investment in rural connectivity through RCG
oResearch into the role digital technology can play to meet
New Zealand’s climate challenge
oCommunity-led partnerships through Spark Foundation
oScaled not-for-profit broadband service Skinny Jump ~150%
oSpark in top quartile of WBA
1
Digital Inclusion Benchmark
oScience-based target established and linked to funding
oEnhanced ethical supply chain processes, JAC
2
membership
oHuman Rights Policy established
oSpark accepted into Dow Jones Sustainability Australia Index
Integrate technology into NZ’s climate
change planning and enable
businesses to become more
sustainable through new technologies
Increase Spark Foundation focus on
skills and pathways, while continuing
to scale affordable connectivity and
integrate digital equity into Spark
Securing renewable energy supply,
energy efficiency programme,
annual supplier audits, and
ongoing investment in diversity
Progress since FY21FY24-26 focus
1. Worldwide Benchmarking Alliance2. Joint Audit Cooperation
Commitments:Te Korowai Tupu
Toitū Sustainability at Spark

AT SPARK
TOITŪ SUSTAINABILITY
Our commitment
KPIs
Sustainable
Development Goals
TŪHONO: we connect WHAKAMANA: we empower MATOMATO: we succeed togetherMĀIA: we are bold
Digital
Equity
Sustainable
Spark
Champion digital
equity so all New
Zealanders can thrive
in a digital future
Be bold in our
business to have a
positive impact on
our people, the
environment, and
our communities
Empower New Zealand
to transform to a high
productivity, low
carbon economy
Economic
Transformation
Digital
Equity
Sustainable
Spark
New technologies: we will invest in the technologies
Aotearoa needs to transform
•Deliver 5G Standalone nationwide by FY26 to enable
innovation
Digital infrastructure: we will expand connectivity to
more of the places New Zealanders live and work
•Increase 5G connectivity to all towns with a population
>1,500 by end FY26
Business digitisation: we will support businesses to
become more sustainable through technology
•Champion the integration of digital technology into
Aotearoa’s climate change planning
Products and services: we will increase accessibility and
maintain the highest security and privacy standards
•Maintain top quartile position in the Worldwide
Benchmarking Alliance’s annual Digital Inclusion Benchmark
Skills and pathways: we will focus Spark and Spark
Foundation investment on increasing Māori and Pasifika
participation in the technology sector
•Increase Māori and Pasifika participation within Spark by
5pp by end FY26
1
Affordability: we will support low income households to
participate in the digital world
•Extend the reach of our not-for-profit broadband service
Skinny Jump, with YoY growth
Our people: we will invest in the capabilities and wellbeing
of our people and champion diversity and inclusion
•Achieve 40:40:20 gender representation at Spark by June 2024
•Spark has a top decile innovation culture by FY26
Our environment: we will reduce our impact on the
natural environment
•Science based target (SBTi): reduce Scope 1 and 2 emissions
56% from FY20-FY30 and ensure 70% of our suppliers by
spend
2
have SBTi-aligned targets in place by 2026
Governance: we will operate a responsible and ethical
business and supply chain
•Maintain top quartile benchmark in the annual Corporate
Sustainability Assessment
•Complete five JAC
3
aligned supplier location audits annually

Our purpose
We will empowerthe people and businesses creating Aotearoa’s tomorrow by:
Our FY24-26 focus
Our
enablers
Our commitment:
to stand together
for generations
to come
MATOMATO: we succeed together
TŪHONO: we connect
WHAKAMANA: we empower
MĀIA: we are bold
Āwhinatia ngā tāngata katoa o Aotearoa kia
matomato te tipu i te ao matihiko
NEW ZEALAND
TO HELPALL OF
WIN BIGIN A DIGITAL WORLD
Our values
Simple, data-driven
organisation
Sustainable
Spark
Economic
Transformation
Digital
Equity
Toitū Sustainability at Spark
Next evolution
technology
Innovation culture
Enabling New Zealand Businesses to grow and become more
productive and sustainable through technology
GROW
High-tech Solutions
LEAD
SME and business
Bringing New Zealanders the best digital-first
experiences, curated to their needs
OPTIMISE
Broadband
LEAD
Mobile
Te Korowai Tupu
Our
Māori Strategy
Our FY26
outcomes
Low / mid singledigit
CAGR
EBITDAI growth
>10%
Free cash
flow growth
+10 lift
Customer
engagement
Top decile
People
engagement
Top quartile
Sustainability
benchmarking

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Our plan for long term value creation
Revenue
growth
Operating
efficiency
Invest for
long-term growth
Free cash flow
generation
Disciplined capital
management
We will create long term value for our shareholders through five key focus areas

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We will target revenue growth of 2-4% p.a. through five key drivers
5G leadership
and use cases
oIncreasingcustomer
demandfor 5G mobile
data
oGreater coverage and
capacity increasing
WBB addressable
market
oNew opportunities to
monetise the network
for business customers
SME and business
technology solutions
oExpanded IT offering in
SME driving greater
share of wallet
oFocus on high growth
markets such as hybrid
cloud
oExpanding data centre
portfolio creates long-
term, high margin
revenues
Converged
technology
oDeveloping new
solutions to solve
customer problems in
key sectors
oIncludes IoT solutions
Digital
health
oDigitisation of
healthcare sector
oGrowing digital
health platforms
oEnabling digital
hospitals and the
Internet of Medical
Things
Digital
identity
oEstablishing a leading
position in the rapidly
growing digital identity
market through
MATTR
Wireless
SME and Business
High-tech
Delivering full-service offerings that create a portfolio effect to further grow revenue

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Simplify the businessAutomate core servicesDigitise customer experiencesCreate owners economics
Next evolution technology
oReduce and exit legacy
(e.g. PSTN, legacy data, 3G)
oImplement virtual telco
cloud infrastructure
oNetwork deployment
and management
oInvest in 5G capacity
oInvest inaccess and
aggregation network
oShared tower
infrastructure driving
medium term efficiency
Simple, data-driven
organisation
oSimplify business products
oModern tooling drives
efficiency in customer
service delivery
oExtend marketing
automation to SME and
B2B segments
oBack office automation
oImprove digital journeys
oSingle view of the customer
across all channels
oDrive 5G WBB uptake
through data-driven
marketing
Innovation culture
oInvest in our people to grow data, digital, and innovation capabilities
Reduced product costs,
labourefficiency, and improved
customer experiences
Labour efficiency and
improved people and
customer experiences
Labour efficiency, higher
product density, and lower
churn driving higher revenue
Reduced input costs
and improved
customer experiences
We will target gross cost reductions of $125m-$175m by FY26
1
Simplification, automation, digitising customer journeys, and growing wireless broadband will underpin our efficiency
1. Includes avoided costs. Spark may choose to reinvest some cost savings

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We will continue to invest for long term growth
Underlying capex and spectrum
oCapex (ex. TowerCo proceeds) to be maintained at 10-11% of revenues to support core business and fund investment into digital identity, IoT, and data
automation
oSpectrum investment underpins growth ambitions, including previously announced c-band spectrum rights
TowerCo proceeds enable investment in assets that will generate long-term incremental returns
Growth capex funded via $350m of TowerCo proceeds
Data Centres
$250-300m
Investment in digital infrastructure creating resilient revenues and earnings:
oAn additional 13-17
1
MW by FY26plus land of ~20% of total value, subject to meeting investment criteria –additional to the purpose-
built site at Takanini (11
1
MW, completing in mid-2023), and Mayoral Drive facility enhancements
oTargeting RoIof 9-10%
oRevenues to commence from building completion and scale over time as utilisation grows
Mobile and Edge
Technology
$40-60m
Accelerating wireless performance to expand the addressable market:
o5G Standalone foundations and multi-access edge compute
oTargeting RoI of ~10%
oRevenues to commence late FY25 and into FY26
1. Total site capacity

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Our investment is guided by our Capital Management Framework
Focussed on maximising shareholder value, fueling growth, and maintaining financial strength and flexibility
•Ongoing disciplined management of working capital to improve cash flow
•Committed to maintaining an appropriate investment grade credit rating
•Investing to sustain and grow the business organically
•Investing for growth via mergers and acquisitions that are EPS accretive
over time
•Growing dividends via growth in earnings and sustainable free cash flow
•Dividend Policy: pay-out ratio of ~80-100% of free cash flow
1
on a long run
basis, with annual guidance expressed on a cents per share basis
•Returning excess capital to shareholders using capital management
options (e.g. on-market buybacks, special dividends)
Maximising
shareholder
value
Investing for
growth
Maintaining
financial strength
and flexibility
Key principles for
investing in growth
Strategic alignment
NPV positive
ROI greater than
Spark’s hurdle rate
in years 3-5
Long run capex to
revenue ~10-11%
2
1. FCF defined as EBITDAI less tax paid, interest paid, maintenance capex (pre growth and spectrum capex), lease payments andpre any movements in working capital
2. Excluding any spectrum purchases and renewals

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We will continue to invest in line with this framework
oRevenue growth combined with operating efficiency will generate EBITDAI and free
cash flow growth
oAspiration to grow dividend in line with free cash flow
Maximise
shareholder value
Invest
for growth
Maintain
financial strength
and flexibility
oCapex envelope when combined with TowerCo proceeds is sufficient to support
delivery of the three year strategy and incremental growth opportunities
oContinue to evaluate acquisition opportunities against the following criteria:
oGenerates returns consistent with the capital management framework (EPS
accretive over time)
oProvides new or enhanced capabilities
oAccelerates growth in existing product and service lines
oDelivers new revenue streams in strategically aligned markets
oCommitted to an investment grade credit rating
oNet debt expected to increase over time as we invest in long-term growth and return
funds to shareholders, but not exceed S&P’s adjusted net debt (which includes leases) to
EBITDAI ratio of 1.7 times
Investing for growth in the long-term, while growing dividends in the nearer term

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Our financial aspirations by FY26
oAspiring to top-line revenue growth of 2-4% p.a.
o$100-150m revenue growth from high tech solutions
1
by FY26
Revenue
EBITDAI
Capex
oGrowing EBITDAI, through top-line revenue growth and disciplined cost
management(low/mid-single digit CAGR to FY26)
oInvesting at 10-11% of revenues, with TowerCo proceeds creating the
platform for incremental revenue and earnings growth
Free Cash Flow
oAspire to free cash flow growth of >10% by FY26
Dividends
oGrowing earnings and sustainable free cash flow will lead to growing
dividends, generating top decile shareholder returns
Built on a foundation of better experiences for our customers and people and a sustainable Spark
1. High tech solutions, include Converged Tech, IoT, Digital Health, Digital Identity, Qrious
Note –FY24 -FY26 financial aspirations are not guidance.Annual guidance will be provided for each year at the FY Results briefing

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Where we aspire to be by FY26
Digital and
data-driven,
everywhere
Home of
high-tech
solutions
Digital
infrastructure
fuelling growth
Innovative,
diverse, and
sustainable
Delivery of these aspirations will result in highly engaged customers and people,
profitable growth, and top decile returns
Market differentiation supporting continued sustainable growth

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The value proposition for investing in Spark
Growing differentiation and top-line revenues to deliver sustainable earnings growth and shareholder returns
Increasing demand for data
driving growth in key
mobile market
Future revenue
growth in
high-tech segments
Competitive advantage
through data and resilient
digital infrastructure
Portfolio management
supporting shareholder
returns and capital investment
Sustainable EBITDAI and FCF
growth supporting a rising
dividend over time
Best-in-class
cost control with
high EBITDAI margin

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NGĀ
MIHI NUI
THANK YOU

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Disclaimer
This announcement may include forward-looking statements regarding future events and the future financial performance of Spark New Zealand. Such
forward-looking statements are based on the beliefs of and assumptions made by management along with information currently available at the time
such statements were made.
These forward-looking statements may be identified by words such as ‘guidance’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘plan’, ‘may’,
‘could’, ‘ambition’, ‘aspiration’ and similar expressions. Any statements in this announcement that are not historical facts areforward-looking statements.
These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and
other factors, many of which are beyond Spark New Zealand’s control, and which may cause actual results to differ materially from those projected in the
forward-looking statements contained in this announcement.
Factors that could cause actual results or performance to differ materially from those expressed or implied in the forward-looking statements are
discussed herein and also include Spark New Zealand's anticipated growth strategies, Spark New Zealand's future results of operations and financial
condition, economic conditions and the regulatory environment in New Zealand, competition in the markets in which Spark New Zealand operates, risks
related to the sharing arrangements with Chorus, any impacts or risks to Spark’s anticipated growth strategies, future financialcondition and operations,
economic conditions or the regulatory environment in New Zealand arising from or otherwise with Covid-19, other factors or trends affecting the
telecommunications industry generally and Spark New Zealand’s financial condition in particular and risks detailed in Spark New Zealand's filings with NZX
and ASX. Except as required by law or the listing rules of the stock exchanges on which Spark New Zealand is listed, Spark New Zealand undertakes no
obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.