Chorus FY25 full year results

Chorus Limited
Level 10, 1 Willis Street
P O Box 632
Wellington
New Zealand

Email: company.secretary@chorus.co.nz


STOCK EXCHANGE ANNOUNCEMENT

25 August 2025

Chorus FY25 full year results

The following are attached in relation to Chorus’ FY25 full year results:

1. Media Release
2. Investor Presentation
3. Annual Report (including audited financial statements)
4. NZX Financial Results Announcement
5. NZX Distribution Notice
6. Sustainability Report
7. Climate Statements.

Chief Executive Officer Mark Aue, and Chief Operating Officer Drew Davies, will discuss
the FY25 full year results by webcast at 10.00am New Zealand time today. The
webcast will be available at www.chorus.co.nz/webcast.

Authorised by:

Drew Davies
Chief Operating Officer

ENDS

For further information:

Aleida White
Head of Investor Relations
Phone: +
64 21 155 8837
Email: aleida.white@chorus.co.nz

Victoria Luong
Media and engagement advisor
Phone +64 22 490 2591
Email: Victoria.Luong@chorus.co.nz

---

Page 1 of 3





25 August 2025

Resilient financial result with good progress on strategy

Key FY25 results

• Operating revenue $1,014m (FY24: $1,010m), with fibre revenue up 7%
• Solid year-on-year EBITDA of $705m (FY24: $700m)
• Net profit after tax $4m (FY24: net loss $9m)
• Cash flows from operating activities of $559m (FY24: $513m)
• Unimputed final dividend of 34.5 cents per share (total FY25 dividends: 57.5cps)
• Increase in fibre connections: by 31,000 to a total of 1,115,000
• Fibre uptake increased to 72.1% addresses, up 1%
• Remaining copper connections: down 41% to 92,000
• Network traffic up 10% to 8,741 petabytes

Chorus has delivered a resilient result for the year ended 30 June 2025, despite a difficult year for
the New Zealand economy and revenue headwinds from the retirement of legacy services.

Fibre connections grew by 31,000 and made up 92 per cent of Chorus' fixed lines, with fibre uptake
at 72.1 per cent of addresses passed. The growing importance of digital connectivity was underlined
with data demand growing 10 per cent in the year to 8,741 petabytes. Average monthly usage for
fibre connections grew 7.7 per cent to 671GB through FY25.

Revenue lifted from $1,010 million to $1,014 million despite copper-related revenues reducing by
$39 million during the year. We more than offset this decline through continued growth in both
fibre connections and the average revenue per user.

Our simplification strategy and strong cost management held operating expenditure at $309 million,
down $1 million from FY24. This was achieved despite continued inflation across numerous expense
lines and increased regulatory levies, together with one-off costs for operating model changes and
the exploration of new revenue opportunities.

As a result, EBITDA was $705 million for FY25, a 1 per cent increase on FY24 EBITDA of $700 million.
After the deduction of depreciation, amortisation, interest and tax, net earnings were $4 million
compared to a loss of $9 million in FY24.

A renewed purpose

Chorus CEO Mark Aue said Chorus is making continued progress in its shift to becoming a simpler all-
fibre digital infrastructure company.

“Our December Investor Day outlined a reset in strategy and execution across three distinct
Horizons. FY25 (Horizon 1) was foundational, marking the start of our transition to becoming the
great network operator.

Page 2 of 3


“This year, we laid the groundwork for that change – embedding a clear strategy, with the clarity and
specificity of what future success looks like: “a simplified all fibre business with 80% uptake by
2030”. We refined our operating model and reinvested in new operational capabilities.

“We sharpened our market position, promoting fibre as the gold standard in connectivity – vastly
superior to alternatives like fixed wireless.

“These structural changes have helped us maintain fibre connection growth through FY25 and will
be an ongoing advantage, with the economy expected to remain challenging for some time.

“With fibre uptake already above 72%, our goal to reach 80% requires us to work in different ways.
Innovation remains central, as exemplified by the recent speed boost for two of our popular plans,
benefitting more than 700,000 homes. This signals where we’re headed, with advanced fibre
markets like Singapore already moving to 10Gbps speeds as standard.

“As we transition into Horizon 2 (FY26–FY29) Chorus will continue to evolve, reflecting a business
that is more simple, efficient, innovative and competitive.

Expanding fibre further

Chorus is proud of the work we have done so far in 2025, taking fibre to an additional 9,000 homes
and businesses in 59 communities across Aotearoa. Commenting on the continued rollout of fibre,
Mark said: “Fibre rollout has stopped at 87% of the population, while other countries are going
further. There’s a risk that ‘good enough’ non-fibre solutions for the remaining 13% will only
exacerbate the digital divide as customer needs evolve.

“We were, therefore, pleased when the government’s Infrastructure Priorities Programme recently
endorsed our proposal to expand fibre to 95% of New Zealanders. The only private sector proposal
among 17 endorsed projects, it has a benefit-cost ratio of 6.3, based on an expected $17 billion in
economic benefits for a cost of less than $3 billion. We’re ready to start, with the ability to flex the
rollout for funding and regional needs.

“However, expansion benefits the communities where fibre reaches, rather than going to the
network builder. Some form of public investment is needed but government endorsement doesn’t
guarantee any government funding.

“Equally urgent is affordability, where a different approach is needed. Nearly 400,000 households
remain digitally excluded. In an age where connectivity underpins everything from remote surgery to
immersive virtual learning, participating in the digital economy must be a right, not a luxury.

“We’re committed to addressing this. We’ve established a new community co-fund initiative to
contribute to build costs in willing communities and launched a digital equity proof-of-concept trial
with service providers. It’s a complex challenge, but we’re committed to finding real solutions for
low-income households.”

Milestone to copper retirement

Last week the Commerce Commission recommended the removal of copper access regulation. The
widespread availability of superior and affordable alternatives to copper in rural New Zealand means

Page 3 of 3

regulation is no longer required to promote competition. The Commission’s recommendation is now
with Media and Communications Minister Paul Goldsmith for consideration.

“This recommendation represents a key milestone on Chorus’ journey to being a simplified, all-fibre
business. Removal of copper regulation will provide a clear pathway to copper network retirement
outside fibre areas.”

The Commerce Commission noted the importance of a managed withdrawal process for the rural
copper network. Mark Aue said “We reiterate our commitment to a clear, consumer-centric
retirement process that supports transition of customers still on copper to modern services. We are
working with the Commerce Commission and Government to establish an appropriate set of
managed withdrawal commitments for rural consumers.”

Final dividend

Chorus has confirmed it will pay an unimputed final dividend of 34.5 cents per share in October 2025
bringing total dividends to 57.5 cents per share in FY25, an uplift of 10 cents per share compared to
FY24 (21% increase). The dividend reinvestment plan remains suspended.

FY26 guidance

FY26 guidance is subject to no material adverse changes in circumstances or outlook.

• EBITDA: $710 million to $730 million
• Gross capital expenditure: $375 million to $415 million
• Sustaining capital expenditure $195 million to $215 million
• Dividend: 60.0 cents per share, unimputed (up 4.3% from FY24)

ENDS

Chorus Chief Executive Mark Aue and Chief Operating Officer Drew Davies will discuss the FY25
result at a briefing from 10.00 am on Monday, 25 August 2025 (NZST). The webcast will be available
at www.chorus.co.nz/webcast.

For further information:

Megan Heffield
Media and content manager
ph: + 64 22 058 2619 | e: Megan.Heffield@chorus.co.nz

Aleida White
Head of Investor Relations
m: +64 (21) 155 8837 | e: aleida.white@chorus.co.nz

---

FY25 RESULTS PRESENTATION

FY25 RESULTS PRESENTATION
This presentation:•
Is provided for general information purposes and does not constitu
te investment advice or an offer of or invitation to purchase

Chorus securities.
•
Includes forward-looking statements. These statements are not gu
arantees or predictions of future performance. They involve
known and unknown risks, uncertainties and other factors, many
of which are beyond Chorus’ control, and which may cause
actual results to differ materially from
those contained in this presentation.
•
Includes statements relating to past performance which should
not be regarded as reliable indicators of future performance.
•
Is current at the date of this presentation, unless otherwise st
ated. Except as required by la
w or the NZX Main Board and ASX
listing rules, Chorus is not under any obligation to update this
presentation, whether as a result of new information, future
events or otherwise.
•
Should be read in conjunction with Chorus’ audited consolidat
ed financial statements for the year to 30 June 2025 and NZX and
ASX market releases.
•
Includes non-GAAP financial measures such as "EBITDA”. These
measures do not have a standardised meaning prescribed by
GAAP and therefore may not be comparable to similar financial
information presented by other entities. They should not be
used in substitution for, or isolation of, Chorus' audited co
nsolidated financial statements. We monitor EBITDA as a key
performance indicator, and we believe it assists investors in
assessing the performance of the core operations of our
business. EBITDA is reconciled in the Notes on page 36 of the FY25 annual financial statements.
•
Has been prepared with due care and attention. However, Cho
rus and its directors and employees accept no liability for any
errors or omissions.
•
Contains information from third parties Chorus believes reliable.
However, no representations or warranties (express or implied
)
are made as to the accuracy or completeness of such information.
Disclaimer
2

FY25 RESULTS PRESENTATION
Agenda
4-6
7-11
12131415
•
FY25 overview, Horizon 1 progress
•
Lead
•
Expand
•
Adapt
•
Pioneer
•
Continuing to explore strategic options
Mark Aue, CEO
16-2021-23
24
•
Financial results
•
Capex and net debt
•
Dividend and FY26 guidance
Drew Davies, COO
25-31
•
Outlook for FY26, Horizon 2
Mark Aue, CEO
33-3637-3839-41
•
Pricing and market data
•
Additional financial information
•
Regulatory information
Appendices
3

FY25 RESULTS PRESENTATION
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
at $205m
•
Operating cash flows of $559m, up 9%
•
Dividend up 21%
to
57.5cps for FY25
•
Transitioning to Horizon 2, focus on simplicity & efficiency
4

FY25 RESULTS PRESENTATION
Strategy on track

FY25 RESULTS PRESENTATION
Transition from Horizon 1
6

FY25 RESULTS PRESENTATION
Fibre growth continues; speeds boosted in June
0
20,00040,00060,00080,000
100,000120,000
Jun-23
Jun-24
Jun-25
BUSINESS
2Gbps+
1Gbps
500Mbps
300Mbps
200Mbps
100Mbps
<100Mbps
Voice
0
200,000400,000600,000800,000
1,000,000
Jun-23
Jun-24
Jun-25
RESIDENTIAL
2Gbps+
1Gbps
500Mbps
300Mbps
100Mbps
<100Mbps
Voice
+45k
+7k
+29k
+3k
60%25%
61%32%
•
Home Fibre Starter
now 100/20Mbps: grew by 41k to 88k in FY25. Majority of grow
th 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
•
residential 50Mbps and 300Mbps plans boosted to
100Mbps and 500Mbps respectively in mid-June
7

FY25 RESULTS PRESENTATION
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 coppe
r withdrawal programme ends (see chart on right)
68.068.569.069.570.070.571.071.572.072.5
0
250,000500,000750,000
1,000,0001,250,0001,500,000
30-Jun-23
30-Jun-24
30-Jun-25
Fibre connections
Inactive fibre sockets***
Addresses passed
Fibre uptake (%)
* based on independent address data and Chor
us network data for addresses passed by fibr
e; excludes Chorus fibre in Local Fibre
Company (LFC) areas
** not active on 30 June
50
32
-33
-15
-16
-13
-50-30-10
103050
FY24
FY25
Fibre
Copper broadband
Copper voice
FIBRE UPTAKE IN CHORUS FIBRE AREA
(% ADDRESSES PASSED)
Addresses
passed
%
uptake
CHANGE IN MASS MARKET CONNECTIONS IN CHORUS
FIBRE AREA (‘000s)
8

FY25 RESULTS PRESENTATION
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 benefite
d from the faster download speed, improvin
g our competitive position with consumers
312671
0
100200300400500600700
Copper
Fibre
0%
10%20%30%40%50%60%70%80%90%
100%
Fibre 100
Fibre 500
Fibre Max
Hyperfibre
<300GB
300-500GB
500GB-1TB
1-2TB
>2TB
MONTHLY AVERAGE DATA USAGE PER CONNECTION
(GIGABYTES)
CONNECTIONS BY SPEED TIER AND USAGE
JULY 2025
9

FY25 RESULTS PRESENTATION
A robust and scalable fibre network
+767
petabytes =
29,000 years
of HD
streaming
•
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
DAILY PEAK TRAFFIC ON FIBRE NETWORK (FY25 vs FY24)
10

FY25 RESULTS PRESENTATION
Focus as a market challenger
-12
8
50
-15
0
15304560
4G Fixed Wireless 5G Fixe
d Wireless
Fibre (all plans)
*Source: Consumer Monitor Survey, 6 mont
hs to July 2025 for metro/suburban areas
•
market repositioning with direct to consumer communication
•
marketing raising awareness of fibr
e’s superiority vs fixed wireless
•
consumer monitoring shows fibre significantly outp
erforming fixed wireless Net Promoter Score (NPS)
How likely would you be to recommend using [technology] as
the main way to connect to the internet at home to friends and
family members? (NPS)*
How likely would you be to recommend using [technology] as
the main way to connect to the internet at home to friends and
family members? (NPS)*
11

FY25 RESULTS PRESENTATION
Steady demand for infrastructure connectivity
•
New property development:
24k lots passed in FY25;
order pipeline stabilising back at pre-Covid levels of 20k-25k
•
Data centres:
new Express Connect service to simplify and
accelerate DC connectivity; enables remote provisioning
•
Mobile infrastructure:
continued growth in backhaul
demand to new cellsites; ~3,400 cellsite connections
•
Smart locations (e.g. CCTV, traffic lights):
grew another
23% to 2,500+ connections; assisted by copper migration
•
Legacy services:
some revenue headwinds as we retire
copper services and obsolete enterprise fibre systems
•
Trans-Tasman Ring
: MoU and engagement with Datagrid
ended as the project did not meet our investment criteria. We’ll continue to monitor future opportunities in the sector but this is no longer an area we are actively pursuing
0
5,000
10,00015,00020,00025,00030,00035,00040,000
FY20
FY21
FY22
FY23
FY24
FY25
Orders
Completed
NEW PROPERTY DEVELOPMENT PIPELINE – LOTS PASSED
12

FY25 RESULTS PRESENTATION
FY25: getting future fit
•
Operating model evolution:
▫
organisation redesign and investment in
new capability resulting in ~60 fewer roles
▫
introducing new Retention and Data & Analytics capability
▫
exploring opportunities for further business integration of AI
▫
‘Fibre Frontier’ value stream now managing e2e copper network retirement and asset optimisation
•
Regulatory clarity for PQP2 (CY2025-2028):
▫
ID reporting (31 May) showed CNU was very close to earning the 2024 MAR
▫
PQ-FFLAS opex allocations will reflect copper withdrawal and decline in copper direct costs
▫
Chorus calls for regulatory simplification reflec
ted in telco sector review terms of reference
Significant changes made in Horiz
on 1 (FY25) to enable our shift aw
ay from a build focus and become
the great network operator over Horizon 2 (FY26-FY30)
13

FY25 RESULTS PRESENTATION
Countdown to urban copper retirement
92,000
68,000
20,000
11,000
45,000
13,000
FY24
FY25
Non-fibre area
LFC fibre area
CNU fibre area
92,000
157,000
05
10152025
Chorus UFB
LFC UFB
Non-UFB
FY23
FY24
FY25
*FY23 included weather impact in non-fibre areas
•
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 radio customers almost complete
•
1,090 tonnes cable recycled; copper recycling trial contri
buted $3m revenue; good learnings for ongoing programme
•
fibre expansion to 9k existing premises: 4.5k
premises ready to connect with 1,200 connected
COPPER – REACTIVE FAULT SPEND BY AREA
($m)
REMAINING COPPER LINES
(CONNECTIONS)
-41%
14

FY25 RESULTS PRESENTATION
Continuing to explore strategic options
Option 1: IoT Solutions
Option 4: Fibre Expansion
Option 2: Scale EdgeCentres
Option 3: Trans-Tasman Ring
Option 5: Copper recovery
Option 6: Property optimisation
Note: green = on track; amber = under review for scalability; red = not actively proceeding
15

Financial performanceDrew Davies, COO

FY25 RESULTS PRESENTATION
FY24 $m
FY25 $m
1,010
1,014
Operating revenue
(310)
(309)
Operating expenses
700
705
Earnings before interest, tax, depreciation and amortisation(EBITDA)
(462)
(474)
Depreciation & amortisation
238
231
Earnings before interest & income tax
(217)
(210)
Net finance expense
21
21
Net earnings before income tax
(30)
(17)
Income tax expense
(9)
4
Net earnings / (loss)
Income Statement
•
copper asset depreciation up $9m to $99m
•
interest costs reduced $8m with weighted effective interest decreasing from 5.77% to 5.39%
•
fibre connection and ARPU growth largely offset by legacy revenue decline
•
simplification and strong cost management offset inflation-linked and regulatory increases
•
FY24 included $15m one-off non-cash expense for tax depreciation of buildings
17

FY25 RESULTS PRESENTATION
FY24 $m
FY25 $m
697
745
Fibre broadband (GPON)
69
64
Fibre premium (P2P)
83
56
Copper based broadband
28
17
Copper based voice
3
2
Data services copper
67
64
Field services products
33
35
Infrastructure
26
26
Value added network services
4
5
Other
1,010
1,014
Total
Revenue
•
ARPU grew from $55.71 to $58.
98 even with price changes
deferred by a quarter to January 2025
•
legacy enterprise service platfo
rm being retired with customers
migrating to other services or networks
•
copper service revenues reduced $39m as connection volumes declined 41%
•
new property development revenues reduced $4m to
$22m
•
FY25 includes $3m net gain from copper cable recycling
•
indicative regulated fibre (PQ-
FFLAS) share of revenue 83%
(FY24: 78%)
•
growth in colocation revenues
•
ongoing demand for legacy network services
18

FY25 RESULTS PRESENTATION
FY24 $m
FY25 $m
80
85
Labour
53
47
Network maintenance
44
40
IT
37
37
Other network costs
27
27
Rent, rates & property maintenance
22
22
Electricity
11
12
Advertising
6
9
Consultants
9
11
Regulatory levies
5
6
Insurance
16
13
Other expenses
310
309
Total
Expenses
•
44% capitalisation rate (FY24:47%); $5m change costs (FY24:$2m)
•
reducing copper fault volumes part
ly offset by increased fibre-
related costs
•
decreased as legacy systems exited
•
included $4m of copper optimisation spend (FY24:$4m)
•
5% reduction in usage offset by higher charges
•
additional spend to support exploration of new revenue opportunities
19

FY25 RESULTS PRESENTATION
FY24 $m
FY25 $m
Direct copper opex
27
20
Network maintenance
10
8
IT
5
5
Other network costs
12
12
Electricity
54
45
Total
Copper retirement expenses
0
20406080
100120
FY22
FY23
FY24
FY25
FY26e
FY27e
Rural area (cables, poles)
LFC area (cables, ducts, poles)
Chorus area (cables)
Estimate
COPPER ASSETS - ACCELERATED DEPRECIATION
Chorus fibre
area copper
cables fully
depreciated
in FY25
•
direct copper opex reduced to $45m from $54m in FY24
•
copper optimisation spend to increase with comple
tion of copper withdrawal in Chorus fibre areas
•
significant step-down in copper depreciation in
FY26 as accelerated copper depreciation rolls off
20

FY25 RESULTS PRESENTATION
207
205
205
247
222
210
FY23
FY24
FY25
Sustaining capex
Discretionary growth
GROSS CAPEX BY CATEGORY
Capex
FY24 $m
FY25 $m
205
205
Sustaining capex*
222
210
Discretionary growth capex
427
415
Gross capex
(55)
(40)
Less: Third-party contributions**
372
375
Net capex
•
gross capex reduced 3% to $415m with redu
ced installation spend partly offset by
increased spend on footprint expansion
•
sustaining capex was steady year-on-year at $205m
* Sustaining capex is investment to maintain, replace or improve an existing asset** Third-party contributions included $4m of go
vernment grants that were applied to the
balance sheet for specific projects. Other
contributions were re
cognised as revenue
21

FY25 RESULTS PRESENTATION
RAB and Non-RAB capex
FY24 $m
FY25 $m
RAB capex
58
88
Extending the network – growth
151
113
Installations – growth
59
61
IT & Support – sustaining
67
63
Network capacity – sustaining
32
44
Network sustain & enhance -sustaining
2
2
Network sustain & enhance –growth
369
371
Gross RAB capex
41
31
Less Third-party contributions*
328
340
Net RAB capex
FY24 $m
FY25 $m
Non-RAB capex*
2
1
Copper - growth
14
8
Copper – sustaining
9
6
Other – growth
33
29
Other – sustaining**
58
44
Gross non-RAB capex
14
9
Less Third-party contributions*
44
35
Net 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 Informat
ion Disclosure (ID). FY25 allocations unaudited and subject to
2025 ID
* Third-party contributions are deducted from RAB capex when calculating the value of RAB assets** Some ‘Other-sustaining’ capex may be reallocated to the RAB over time
22

FY25 RESULTS PRESENTATION
* Table based on unadjusted S&P methodology which treats capital notes as 50% equity
Leverage: 4.52x net debt/EBITDA
170
200
500
200
514
820
325105
167
210
112
207
364
0
100200300400500600700800900
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
NZ Capital Notes
NZ Bond
EUR MTN
AUD MTN
Crown debt securities
Crown equity securities
DEBT MATURITY PROFILE ($m)
$m
As at 30 June 2025*
2,864
Borrowings
242
+ PV of CIP debt securities (senior)
162
+ Net leases payable
3,268
Sub total
81
-Cash
3,187
Total net debt
4.52
Net debt/EBITDA
•
prior periods ND/EBITDA: FY24 4.42x; HY25 4.54x
•
current ratings agency thresholds: S&P 5.0x, Moody’s 5.25x
•
S&P has introduced new digital infrastructure rating criteria and Chorus is under criteria observation
•
financial covenants require senior debt ratio to be no greater than 5.5x
•
Chorus issued $170m of NZ capital notes to refinance Crown financing in June
•
net borrowings were $2,869m, up $245m from $2,624m (FY24), driven by $170m capital notes issued in June 2025
▫
long term bank facilities of $450m ($220m drawn)
▫
~70% of interest rate exposure fixed for 3 years
23

FY25 RESULTS PRESENTATION
FY25 dividend and FY26 guidance
•
FY25 final dividend:
34.5cps, unimputed
▫
record date: 16 September 2025
▫
payment date: 7 October 2025
▫
Dividend Reinvestment Plan not available
•
FY26 dividend guidance*: 60cps
▫
dividends remain unimputed in the near term
•
FY26 EBITDA $710m to $730m*
▫
includes copper recovery at similar level to FY25
▫
fibre price changes would apply from January 2026
▫
legacy revenues continue to decline
•
FY26 gross capex $375m to $415m
▫
range reflects allowances for potential offnet installation initiatives and growth opportunities
•
FY26 sustaining capex $195m to $215m
*subject to no material adverse changes in circumstances or outlook
14
17
19
23
21
25.5
28.5
34.5
FY22
FY23
FY24
FY25
FY26*
interim
final
57.5
60
DIVIDEND (cps)
35
42.5
47.5
FY23
$m
FY24
$m
FY25
$m
Capital Management ($m)
524
513
559
Net cash flows from operating activities
207
205
205
Less: Sustaining capex
317
308
354
Free cash flow for capital allocation
24

Transitioning toHorizon 2Mark Aue, CEO

FY25 RESULTS PRESENTATION
Tailwinds support our ambition
•
Market consultation underway on proposed fibre pricing
changes (effective 1 January)
•
Aspiration of 80% fibre uptake achievable
•
FY26 focus on targeted in-market activity:
▫
marketing to maintain awareness and build consideration of fibre’s capability vs other broadband technology
▫
initiatives in market to target underpenetrated segments and inactive fibre addresses
▫
good engagement from bundlers as they seek increased fibre share
▫
opportunities to assist MNOs with FWA high data user migration
▫
digital equity trial ongoing: requires a joint telco-government approach
*Source: Consumer Monitor Su
rvey, 6 months to July 2025
99%
Fibre
99%
Fixed Wireless
VS
Awareness: Have at least heard of the internet type*
Consideration: Would seriously consider it as their main way to
connect to the internet at home*
85%
Fibre
55%
Fixed Wireless
VS
Preference: It would be their first choice for their internet
connection at home*
64%
Fibre
13%
Fixed Wireless
VS
26

FY25 RESULTS PRESENTATION
Fibre is AI-ready
*Source: Nokia Global Ne
twork Traffic Report 2023-2033
**Source: Venture Insights: Fibre ve
rsus FWA in the AI age, July 2025
The resilience, reliability and scalability of fibre makes Chorus an AI enabler
Venture Insights six key takeaways**:1. The AI Revolution Reframes the Debate: . . .
no longer “fibre
vs. FWA, but “which infrastructure assets are best positioned to absorb an unpredictable, AI-driven demand shock?”
2. FWA’s Value Proposition is Fragile:
This position is vulnerable
to the emergence of mainstream AI applications that will shatter the “good enough” performance threshold
3. Uncertainty as the Key Variable:
The timing and scale of AI’s
impact are unknown, but the direction is not. Infrastructure that offers maximum performance headroom and reliability makes fibre the premier long-term asset
4. Symmetry & Latency as Future KPIs:
AI applications, will
make symmetrical bandwidth and ultra low, stable latency key fibre strengths – the critical performance indicators
5. Repercussions for Asset Positioning:
Core of integrated
telcos digital service ambitions will rely on fibre access
6. A New Lens for Valuation:
Investors should assess
telecommunications assets based on their readiness for the AI era
Venture Insights six key takeaways**:1. The AI Revolution Reframes the Debate: . . .
no longer “fibre
vs. FWA, but “which infrastructure assets are best positioned to absorb an unpredictable, AI-driven demand shock?”
2. FWA’s Value Proposition is Fragile:
This position is vulnerable
to the emergence of mainstream AI applications that will shatter the “good enough” performance threshold
3. Uncertainty as the Key Variable:
The timing and scale of AI’s
impact are unknown, but the direction is not. Infrastructure that offers maximum performance headroom and reliability makes fibre the premier long-term asset
4. Symmetry & Latency as Future KPIs:
AI applications, will
make symmetrical bandwidth and ultra low, stable latency key fibre strengths – the critical performance indicators
5. Repercussions for Asset Positioning:
Core of integrated
telcos digital service ambitions will rely on fibre access
6. A New Lens for Valuation:
Investors should assess
telecommunications assets based on their readiness for the AI era
•
Industry forecasts anticipate a si
gnificant step-up in AI driven
data demand
•
Nokia global network traffic report forecast: AI will generate
38% of global consumer broadband traffic by 2033
NOKIA: WAN AI TRAFFIC, GLOBAL, MODERATE SCENARIO
EXABYTES/MONTH*
27

FY25 RESULTS PRESENTATION
New property pipeline: 80% activated in 5 years
•
New property development:
▫
80% of FY20 lots passed had activated in 5 years
▫
~55% of FY22 and FY23 lots passed activated in 2 years
▫
~23k lots contracted and in pipeline for build at 30 June to become fibre ready addresses
•
Data infrastructure demand: continue to grow connectivity to
smart locations, data centres, cellsites
•
Horizon 2 goal: grow total infrastructure revenues to $180m -
$200m+
0%10%20%30%40%50%60%70%80%90%
-
5,000
10,000 15,000 20,000 25,000 30,000 35,000
FY20
FY21
FY22
FY23
FY24
FY25
Lots passed
FY20 Uptake
FY21 Uptake
FY22 Uptake
FY23 Uptake
FY24 Uptake
LOTS PASSED vs FIBRE ACTIVATION RATE (%) OVER TIME
28

FY25 RESULTS PRESENTATION
Pathway to regulatory simplification
Commerce CommissionCommerce Commission
Ministry for RegulationMinistry for Regulation
•
Copper services deregulation:
positive Commerce
Commission recommendation to Minister
•
Fibre services deregulation:
considering voice and
backhaul services
•
Fibre input methodologies review:
focus on selected key
topics, e.g. risk free rate setting, network expansion investment, capex approval processNote: no change to revenue cap as form of control
•
Telco sector review:
▫
considering whether current regulation is fit for purpose in light of technology and market changes.
▫
Chorus is seeking removal of legacy interventions that are no longer fit for purpose e.g. Telecommunications Service Obligation, shareholder cap and other obsolete rules.
Note: no change to structural separation of retail and wholesale for fibre services
29

FY25 RESULTS PRESENTATION
Optimising for an all-fibre future
•
notice period complete in Chorus areas by December; shutdown by mid-2026
•
~1,200 cabinets/sites to be powered down in FY26 to realise maintenance, electricity and emissions benefits
•
expect copper shutdown in LFC areas by end of CY2026
•
~160km of cable recycled in FY25
•
in market to select extraction partner; programme to step up in CY2026 as urban shutdown completes
•
expect net proceeds of $30m-$50m over ~3-7 years, subject to market prices, extraction costs etc.
•
strategic review of asset options underway for multi-year programme aligned to copper exit timetable
•
advancing work on alternative owners for high sites
•
Chorus proposed extension of fibre to 95% of population with expected $17bn economic benefits vs <$3bn cost
•
endorsed by Infrastructure Commission as offering significant opportunity, but independent of funding
•
co-ordinated government rural
connectivity strategy needed;
Ministry for Regulation review of legacy settings could help encourage further investment
Asset optimisation
Copper recovery
Copper retirement
Rural network expansion
30

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 uptake by 2030
•
Innovation is a key differentiator in Fibre’s superiority; AI will only exacerbate this
•
Copper retirement achievable; emerging pathways have potential for favourable regulatory shifts
•
An investment in digital infrastructure is for today and future generations

FY25 RESULTS PRESENTATION
Appendices

FY25 RESULTS PRESENTATION
Appendix A: Pricing data
PRICING CONSULTATION
Proposed Price

Current Price

Product / Service
$28.00
(Retail price cap $55)
n/a

New Low Speed Plan

$40.50
(Retail price cap $70)

$38.00
(Retail price cap $65)

Home Fibre Starter (100/20Mbps)

$57.52

$53.96

Home Fibre 100Mbps
$58.73

$56.28

Home Fibre 500Mbps
$69.50

$66.19

Home Fibre 920Mbps

$76.90

$74.90

Home Hyperfibre 2000Mbps

$93.38

$90.95

Home Hyperfibre 4000Mbps

33

FY25 RESULTS PRESENTATION
30 June
2025
31 March
2025
31 Dec
2024
30 Sept
2024
30 June
2024
31 March
2024
24,000
29,000
34,000
40,000
45,000
51,000
Baseband copper (no broadband)
34,000
39,000
44,000
49,000
56,000
62,000
Copper ADSL (includes naked)
34,000
39,000
44,000
49,000
55,000
62,000
VDSL (includes naked)
NM
NM
1,000
1,000
1,000
1,000
Data services (copper)
1,106,000
1,098,000
1,089,000
1,083,000
1,074,000
1,064,000
Fibre broadband (GPON)
9,000
9,000
9,000
9,000
10,000
10,000
Fibre premium (P2P)
1,207,000
1,214,000
1,221,000
1,231,000
1,241,000
1,250,000
Total connections*
*includes ~2,000 broadband connecti
ons Chorus is subsidising for
lower socio-economic households
Note: numbers are rounded
Copper connections declined 65k in FY25 and total 92kFibre connections grew 31k in FY25 and total 1,115k
Appendix A: Market data
CONNECTIONS
34

FY25 RESULTS PRESENTATION
Copper connections are declining as Chorus retires its copper network and customers migrate to Local Fibre Company and fixed wireless networks.
5,000
Copper lines (no broadband)
Other fibre company (LFC) zone
6,000
Copper broadband lines
4,000
Fibre broadband lines (GPON)
15,000
TOTAL
Ongoing decline in copper connections as customers migrate to alternative mobile/fixed wireless/satellite networks.
12,000
Copper lines (no broadband)
Non-fibre addresses (i.e. Chorus fibre not available)
56,000
Copper broadband lines
68,000
TOTAL
Covers all addresses outside of LFC UFB rollout zone where Chorus fibre is available. Fibre footprint is growing as a result of network expansion and new property development. Copper connections are reducing as Chorus retires its copper network.
7,000
Copper lines (no broadband)
Chorus fibre zone
6,000
Copper broadband lines
1,099,000
Fibre broadband lines (GPON)
1,112,000
TOTAL
-2
-4
-3
-4
-3
-2
-1
-2
-1
-2
-1-1-1-1
-4
-5
-4
-6
-7
-5
-4
-4
-5
-5
-1
-1
-2-2
-1
88
6
99
1
0
-15
-5
5
15
Q4 FY25Q3 FY25Q2 FY25Q1 FY25Q4 FY24Q4 FY25Q3 FY25Q2 FY25Q1 FY25Q4 FY24Q4 FY25Q3 FY25Q2 FY25Q1 FY25Q4 FY24
Copper line only
Copper broadband
Fibre broadband
* Indicative as at 30 June, excludes ~12k fibre premium and smart location connections
Appendix A: Connections by Zone
QUARTERLY CHANGE (‘000s) BY ZONE
CONNECTION CHANGES BY ZONE*
35

FY25 RESULTS PRESENTATION
0
500,000
1,000,0001,500,0002,000,000
Spark
One
2degrees (incl Vocus)
Mercury (incl Trustpower)
Others
Source: IDC
0
500,000
1,000,0001,500,0002,000,000
Chorus xDSL
Chorus mass market fibre
Local fibre companies (UFB)
Other fibre networks
Other xDSL
One cable
Fixed (mobile) wireless
Legacy fixed wireless, satellite
NZ BROADBAND MARKET – BY RETAILER
NZ BROADBAND MARKET – BY TECHNOLOGY
Appendix A: Market Composition
36

FY25 RESULTS PRESENTATION
Current hedge profile
Amount
NZ$m
Bond
100% fixed for life of bond at 3.39%
514
EMTN 2026
100% fixed for life of bond at 1.98%
200
NZD 2027
100% fixed for life of bond at 6.21% from Dec 2023
500
NZD 2028
Swapped to a margin over floating (BKBM) through cross currency interest rate swaps. ~67% fixed at 6.17%
820
EMTN 2029
100% fixed at 2.5%
200
NZD 2030
Swapped to a margin of 1.73% over floating (BKBM) through cross currency interest rate swaps. ~30% is fixed using an interest rate collar of 5.48% to 6.05% from March 2025
325
AMTN 2030
~90% fixed at 5.93% until first call in June 2031
170
NZD 2056
TOTAL
30
June
2036
30
June
2033
30
June
2030
Crown securities $m
768.5
768.5
404.0
197.0
Equity securities (cumulative total)
566.9
210.2
166.7
104.7
Debt securities (maturity profile)
Crown equity securities
•
unique class of security with no voting rights but a repayment preference on liquidation
•
redeemable by cash payment of to
tal issue price or the issue of
Chorus shares (at a 5% discount to the 20-day VWAP for Chorus shares)
Crown debt securities
•
unsecured, non-interest bearing and carry no voting rights
•
to be redeemed in tranches from 30 June 2025 to 2036 by repaying the issue price to the holder
INTEREST RATE HEDGES
CROWN FINANCING SUMMARY
Appendix B: Additional financial information
37

FY25 RESULTS PRESENTATION
Appendix B: Capital management principles & policy
Dividend policy: pay an ordinary dividend of 70% to
90% (on average, over time) of net cash flow from
operating activities less sust
aining capital expenditure
Capital allocation
underpinned by
free cash flow
from an essential
regulated
infrastructure
asset
Deliver a
sustainable
growing dividend,
at least in real
terms
Use balance sheet
to fund
discretionary
growth capex - up
to 4.75x
ND/EBITDA
Discretionary
growth capex
must deliver
greater value
than returning
funds to
shareholders
A DIGITAL INFRASTRUCTURE BUSINESS MAXI
MISING LONG-TERM VALUE AND RETURNS
38

FY25 RESULTS PRESENTATION
Appendix C: RAB movement: 2024 regulatory year
Notes
Financial Loss
Asset (FLA)
$m (nominal)
Core RAB
$m (nominal)
Component
The closing RAB at 31 Dec 2023 included a
forecast
asset allocator
adjustment. The opening RAB at
1 Jan 2024 is $20m higher due to
updates for
actual
asset allocators.
1,142
4,791
Opening RAB (1 January 2024)
FLA depreciation is diminishing value and the core RAB is straight-line. Assets start depreciating the regulatory year after commissioning.
(175)
(333)
less
Depreciation
2.22% actual inflation in the De
cember quarter versus forecast
2.13% used in the final decision for 2024 MAR.
25
106
plus
Revaluations
Amount is net of $35m capital contributions
0
306
plus
Assets commissioned
An upwards adjustment reflects a greater proportion of shared assets being attributable to fibre (due to differences in allocations drivers such as revenues and connections) th
an was forecast for the opening
RAB in 2024.
0
41
plus
Adjustment resulting from asset
allocation
992
4,911
Total closing RAB value(31 Dec 2024)
39

FY25 RESULTS PRESENTATION
Notes
Revenue
$m (nominal)
Wash-up
$m (nominal)
Description
PQP1 decision updated in 2023 for pass through costs and CPI forecasts.
808.7
2024 maximum allowable revenue
(807.8)
Less
2024 FFLAS revenue received
0.9
2024 MAR under-earn
Actual CPI of 2.92% (since 2023 update) via in-period smoothing.
16
CPI on the price path for 2024
Previously forecast cost inputs
(e.g. totex, connections and data
traffic) updated for actuals in the period.
18.4
Cost allocators
MAR adjustment to reflect increased allocation of shared assets in the final RAB decision.
9.7
Initial RAB true-up
Commission requires connection capex to be included in the final year PQP2 wash-up calculation for the three years.
1.9
Connection capex
Commission approved individual capex proposal for customer incentives for 2023.
1.0
Individual capex proposal for 2023
Reflects lower Crown financing balance than forecast.
0.2
Crown financing benefit
Actual pass-through costs of
$16.1m versus forecast $15.9m.
0.2
Pass through costs under-forecast
47.4
47.4
48.3
2024 wash-up balance
The 2022 and 2023 wash-up balances we
re adjusted as part of the
in-period smoothing process plus connection capex.
53.851.4
2023 wash-up balance: smoothed2022 wash-up balance: smoothed
The wash-up balance is rolled forward each year using the post-tax WACC as the time-value of money to preserve NPV neutrality.
153.5
TOTAL PQP1 wash-up carried forward
Appendix C: MAR wash-up: 2024 regulatory year
40

FY25 RESULTS PRESENTATION
2028
2027
2026
2025
Final building blocks revenue components ($m, nominal)
266.1
269.4
270.4
255.1
Total return on capital
408.5
404.3
396.6
384.6
Return on assets (RAB x WACC), Core fibre assets
46.2
54.6
63.8
74.0
Return on assets (RAB x WACC), Financial loss assets
(115.3)
(116.1)
(116.7)
(127.1)
Revaluations
5.9
6.0
6.0
6.0
Ex-ante stranding allowance
(81.7)
(81.8)
(81.9)
(84.9)
Benefit of Crown finance
2.4
2.5
2.5
2.5
TCSD allowance
210.9
208.0
203.6
197.0
Opex allowance
439.4
450.8
447.3
452.8
Total depreciation
328.3
327.5
310.0
299.4
Core fibre assets
111.1
123.3
137.2
153.4
Financial loss assets
101.6
28.3
0.0
0.0
Tax allowance
(11.4)
13.5
11.6
(13.3)
In-period smoothing
1,006.6
970.2
932.8
891.5
Total building blocks revenue
21.4
20.8
20.2
19.6
Pass-through costs
51.7
49.8
47.9
45.8
Wash-up amount (smoothed)
1,079.7
1,040.8
1,001.0
956.9
TOTAL
Appendix C: Regulatory revenue building blocks
41

---

For the 12 months ended 30 June 2025
Unleashing potential through connectivity.
Enabling better futures for Aotearoa.
ANNUAL REPORT 2025

FY25 Overview
3 Message from Mark Cross
5 Operating highlights
6 A renewed purpose
7 Leading fibre uptake
9 What are the data use trends?
10 Expand new revenues
11 Achieve operational excellence
12 Pioneer an all-fibre business
13 Outlook
14 What’s driving data growth?
15 Looking ahead to 2030
Management commentary
17 In summary
18 Revenue commentary
19 Expenditure commentary
20 Depreciation and amortisation expense
21 Finance income and expense
22 Capital expenditure commentary
23 Long term capital management
Financial statements
25 Independent Auditor’s Report
28 Consolidated income statement
28 Consolidated statement of comprehensive income
29 Consolidated statement of financial position
31 Consolidated statement of changes in equity
32 Consolidated statement of cash flows
35 Notes to the consolidated financial statements
Governance and disclosures
72 Corporate governance framework
72 Our Board
81 Board committees
82 Ethical standards
83 Reporting and disclosure
84 Remuneration and performance
91 Risk management
92 Auditors
93 Shareholder rights and relations
93 Additional disclosures
Glossary 100
Disclaimer 101
Directory Backpage
Table of contents
1 Chorus Annual Report 2025

1 Earnings before interest, income tax, depreciation and amortisation (EBITDA) is a non-GAAP profit measure without a standardised meaning for comparison between companies.
We monitor EBITDA as a key performance indicator and we believe it assists investors in assessing the performance of the core operations of our business.
2 4.8% reduction (rounded to 5%) in electricity use in FY25 against FY24. For Chorus’ climate related information, please refer to the Climate Statements available at company.chorus.co.nz/sustainability.
3 In FY25, Chorus had a 25% reduction in scope 1 & 2 emissions against our FY20 base year, compared to a 39% reduction in FY24. This FY25 increase is primarily due to the use of the recently published Ministry for the Environment (MfE)
emission factors for electricity, which increased by 39%.
4 As at 31 December.
About this report
Our 2025 Annual Report covers the financial year ended 30 June 2025 (FY25) and
includes aspects of our environmental, social and governance (ESG) performance.
For additional ESG reporting, including emissions and climate-related information,
please refer to our separate 2025 Sustainability Report and Climate Statements
available at company.chorus.co.nz/sustainability.
This report is dated 25 August 2025 and is signed on behalf of the Board of Chorus
Limited by Mark Cross, Board Chair, and Kate Jorgensen, Chair of the Audit & Risk
Management Committee.
Mark Cross
Chair
Kate Jorgensen
Chair Audit & Risk Management
Committee
FY25 Overview
CAPITAL EXPENDITURE ($ million)
427
415
672
492
454
FY23
FY21
FY22
FY24
FY25
EBITDA
1
($ million)
700
705
657
675
672
FY23
FY21
FY22
FY24
FY25
REVENUE ($ million)
FY23
980
FY21
955
FY22
965
FY24
FY25
1,010
1,014
1,4163,997
REGULATORY ASSET BASE-RAB ($ million)
2021
CORE RABFINANCIAL LOSS ASSET
1,2844,426
2022
992
4,911
2024
1,1414,771
2023
DIVIDEND (cents per share)
47.5
57.5
25
35
42.5
FY23
FY21
FY22
FY24
FY25
FIBRE CONNECTIONS
1,084,000
1,115,000
871,000
959,000
1,031,000
FY23
FY21
FY22
FY24
FY25
4
+
1%
EBITDA
1
-
25%
SCOPE 1 & 2 EMISSIONS
3
+
3%
FIBRE CONNECTIONS
-
5%
ELECTRICITY USE
2
+
21%
DIVIDEND
-
3%
CAPITAL EXPENDITURE
AGAINST FY20 BASE YEAR
2 Chorus Annual Report 2025

Dear Investors,
These financial results were underpinned by the 1.2 million
connections that enable our customers to live, learn, work
and play. Our focus is on ensuring the high performance
and reliability of our network as digital connectivity
becomes increasingly essential to daily life.
We have announced a final unimputed dividend for the year
of 34.5 cents per share, bringing total dividends for FY25 to
57.5 cents per share and meeting our objective to deliver real
dividend growth. For FY26 we have provided dividend guidance
of 60 cents per share, unimputed, subject to no material
adverse changes in circumstances or outlook.
Fibre is the future
With regulatory settings for fibre confirmed to the end of 2028,
Chorus is moving at pace to retire copper services. This reflects
the new strategy developed by Chief Executive Mark Aue and
his executive team for Chorus to become “a simplified all-
fibre business with 80% uptake by 2030”. It’s also consistent
with global trends showing fibre replacing copper and cable
networks as the preferred fixed network technology to meet
ongoing growth in data demand.
As the world enters an AI-enabled era marked by unpredictable
and rapidly escalating demand for bandwidth, latency,
and reliability, fibre emerges as the critical infrastructure
underpinning this transformation. Fibre’s strengths—
symmetrical speeds, ultra-low latency, and scalability—position
it as the only technology capable of meeting the persistent,
high-performance requirements of AI-driven applications.
From agentic AI in homes and businesses to the data-
intensive backbone of future digital services, fibre is a strategic
asset essential to enabling and sustaining the next wave of
technological and economic growth.
Legacy copper connections are already fewer than 8% of
Chorus’ total connections. Only 13,000 lines remain in our fibre
areas where we expect to withdraw copper services completely
by mid-2026. Another 79,000 lines are in areas where
alternative fibre, wireless and satellite networks are available
and customers are rapidly choosing those better alternatives.
As copper becomes an increasingly obsolete technology,
copper services are getting more difficult and costlier to
maintain. We no longer have the nationwide customer base
that enabled cross-subsidisation between urban and rural areas
when Chorus was part of Telecom. Our objective is to retire the
copper network completely by 2030 and manage copper costs
down as efficiently as possible. Ensuring a smooth transition
for our copper customers over this period is paramount and we
will work closely with government and other stakeholders to
achieve this.
An infrastructure partnership milestone
A highlight of FY25 was our repayment of $170 million to the
Government, the first partial repayment of the $1.3 billion
received from the Government as interest-free financing to
support the fibre rollout. This payment represents a significant
milestone for New Zealand and shows the benefits that can
be achieved when government works in partnership with the
private sector to deliver forward-thinking infrastructure.
Chorus’ primary focus remains our regulated fibre business,
comprising about 83% of revenues in FY25 and for which
the Commerce Commission approved a capital expenditure
allowance of more than $1.1 billion for the new four-year
regulatory period. This amount excludes potentially extending
the fibre network to more New Zealanders, which we believe
makes sound socio-economic sense but would require
government support to be commercially feasible.
We are also exploring other unregulated revenue opportunities
that could deliver additional long-term shareholder value.
These opportunities must be core-adjacent and meet strict
risk-return investment criteria as we are acutely aware of
shareholders’ expectations that Chorus will continue to provide
the stable returns of a regulated utility.
Simplification for better customer outcomes
Although the weak economy slowed our network growth and
put cost-of-living pressures on customers through the year,
we added another 31,000 fibre connections. This lifted fibre
demand to just over 72% of addresses passed. Our aspiration is
80% uptake by 2030 and we remain focused on our aspiration
to achieve this.
The Board has worked closely with management to align on
Chorus’ new strategy. Dedicated strategy sessions were held
to enable deeper discussion and develop clear priorities and
measurable outcomes. The results of this work are reflected in
the new LEAP strategy which is summarised in the following
Chief Executive Officer’s report.
Regular board education sessions ensure that we enhance our
knowledge of areas important to our strategy and business.
This year we covered topics such as the use of AI, alternative
broadband technologies, societal trends, disruptive business
building and climate transition planning.
Management began implementing the new strategy during
FY25. There has been a sharper focus on prioritising activity to
align with the goal of becoming a simpler and more efficient
all-fibre business. Linked to this, Chorus continued to refine its
organisational structure and introduce new capabilities as its
focus shifts from build to operate.
On behalf of your Board, I’m pleased to report that Chorus delivered revenue and EBITDA growth in
FY25, proving the resilience of our digital infrastructure assets in a challenging economy.
3 Chorus Annual Report 2025

We have continued to deliver excellent improvements in
customer outcomes by working with our channel and service
partners. Various initiatives lifted customer satisfaction scores for
fault restoration and intact provisioning above the targets we set
for the year.
While implementation of the new strategy has meant ongoing
change for our people, employee engagement has remained
high at 8.4 out of ten. This places Chorus in the top 25% of the
international technology sector we benchmark ourselves against.
The Board has updated the long-term incentive scheme to ensure
management incentives are aligned with the new strategy and it
retains its role as a motivational reward tool in line with shareholder
outcomes.
Copper retirement enhances sustainability
Fibre networks are widely acknowledged as the greenest
broadband technology because of their data transmission
capacity relative to electricity use. In FY25, we carried 10% more
data traffic than the prior year. This increase was carried entirely
by the fibre network. By retiring legacy network equipment, we
reduced our total electricity usage by a further 4.8% in the year.
Usage is down 11.1% since FY20 and although this is below our
FY25 target of a 15% reduction, we remain on-track for a 25%
reduction by FY30.
Reduced electricity usage would typically help lower our
emissions, but lower renewable generation across the national
electricity grid in FY25 and an increase in Ministry for the
Environment emissions factors meant our Scope 1 and 2 emissions
were up about 1,500 tonnes from FY24. We remain confident that
the retirement of the copper network and other initiatives will help
us achieve our target of a 62% reduction by 2030.
Maintaining our sustainability focus
A check-in with stakeholders confirmed that network reliability
and resilience remain the most material sustainability topics,
followed by digital equity and inclusion.
Another topic that has received growing stakeholder focus is
cybersecurity. Chorus only operates at a wholesale level and,
therefore, has limited customer information compared to
vertically integrated telecommunications companies. However,
cyber threats are also relevant to the secure and reliable
operation of our network and the Board monitors this risk closely.
Injury rates are below industry benchmarks and reducing as
the volume of fibre network activity diminishes post-rollout.
There were four recordable injuries in the year and these were
of minor severity. We also remain vigilant of the treatment of
our outsourced field technician workforce. Our worker welfare
programme promotes best practice and monitors for potential
issues. During the year, four companies were removed from
working on our network.
At Chorus, we are committed to building a diverse and inclusive
workplace because we believe it leads to better decision-making,
a more innovative culture and stronger performance. We also
see the benefits of diverse experiences and thinking styles at the
Board level, where a mix of perspectives enhances governance
and strategic oversight. As part of our broader inclusion goals,
Chorus aspires to be an employer of choice, with a gender
representation target of 40:40:20 across our workforce.
Further detail on sustainability topics is available in our
standalone Sustainability Report, Modern Slavery Statement and
Climate Statements at company.chorus.co.nz/ sustainability.
Confidence and clarity for the future
We are excited about enabling better digital futures for New
Zealand. With regulatory clarity now provided through to 2029
and our pathway to an all-fibre business becoming increasingly
clear through the retirement of copper, our future direction is
clearer than ever.
While there is still work to be done to ensure customers can
make informed choices about technology options, we are
confident in the capability and superiority of fibre. There is
no question that data demand will continue to grow and the
proliferation of AI has the potential to fuel a significant step-up
in consumption. The long-term need for high-capacity, reliable
fibre is clear. We look forward to continuing to help unleash New
Zealand’s potential through connectivity.
We acknowledge and welcome the active engagement we
have with our owners. This is critical to aligning expectations
in relation to our strategy and performance. Thank you to our
customers, our partners, our shareholders, our people and my
board colleagues for your continuing support of Chorus.
Mark Cross
Chair
42% F / 58% M
GENDER SPLIT
EMPLOYEE
ENGAGEMENT
8.4
OUT OF 10
4 Chorus Annual Report 2025
4.8% ELECTRICITY
REDUCTION
25% SCOPE 1 & 2
EMISSIONS REDUCTION
AGAINST FY20 BASE YEAR
99% TOTAL LANDFILL
WASTE DIVERTED

Operating highlights
FY23 FY24FY25
Fixed line connections
5
1,271,0001,241,0001,207,000
Data traffic (petabytes)
7, 4 02 7,9748,741
Average revenue per user
$53.25$55.71$58.98
Chorus’ digital infrastructure delivered a resilient result despite a difficult year for the New Zealand
economy and revenue headwinds from the retirement of legacy services.
The growing importance of digital connectivity was underlined by a 10% increase in data traffic,
with our network carrying 8,741 petabytes during the year. Average monthly usage for fibre
connections grew from 623GB to 671GB through FY25.
Revenue lifted from $1,010 million to $1,014 million despite copper-related revenues reducing
by $39 million during the year. We absorbed this decline through continued growth in fibre
connections, up by 31,000 in the year, and average revenue per user (ARPU) on GPON fibre
services rising from $55.71 to $58.98. Some fibre revenue was deferred for a quarter because we
shifted price increases from October 2024 to January 2025, to align with the start of the new
regulatory period.
A copper cable recycling trial in the second half of FY25 contributed $3 million of net revenue.
More legacy network equipment will be recycled over the coming years as the copper network is
gradually retired.
Our simplification strategy and strong cost management held operating expenditure at
$309 million, down $1 million from FY24. This was achieved despite continued inflation across
various expense lines and increased regulatory levies, together with one-off costs for operating
model changes and exploration of new revenue opportunities.
Our operating results produced FY25 EBITDA of $705 million, up from $700 million in FY24.
Net earnings of $4 million were reported compared to a net loss of $9 million in FY24.
Gross capital expenditure of $415 million was down from $427 million in FY24, largely due to
reducing fibre installation volumes. Net capital expenditure was $375 million when excluding
capital contributions for roadworks, property development and government-backed deployment.
5 Includes several thousand partly subsidised education connections from FY24.
5 Chorus Annual Report 2025

1.0 A renewed purpose
In FY25 we reset Chorus’ strategy,
recognising the need for Chorus
to evolve our operating model
from the legacy as the ‘great
network builder’ to the future as
the ‘great network operator’.
This strategy has an overarching
purpose that guides everything we
do, and not just through connectivity.
This reflects the inter-generational
role we play in enabling better
futures across our country (see
diagram opposite). This purpose is
supported by a clear aspiration that
provides the clarity and specificity of
what future success looks like.
That is; “A Simplified all fibre business
with 80% uptake by 2030.”
Underpinning the strategy are four
strategic pillars that we’re using
to frame our focus, priorities and
decision-making across Chorus.
These are Lead, Expand, Adapt,
and Pioneer. Or L.E.A.P.
The following sections summarise
the progress made against these
pillars in FY25.
If you’d like to learn more about
our strategy reset please watch our
December 2024 Investor Day video
and accompanying presentation on
our Investor Centre.
We see this strategy being achieved over a 10-year horizon with three distinct phases:
• Horizon 1 (FY25) has been about getting
‘future fit for purpose’, embedding strategy,
changing organisation structure and building
new capability to ensure we can achieve our
future aspiration.
• Horizon 2 (FY26 to FY30) is where the benefits
of change are realised progressively and
Chorus is reflective of a simpler, more efficient,
and more innovative and competitive business.
• Horizon 3 (beyond FY30) is the transition to a
single state technology, switching off copper
and becoming an all-fibre business.
6 Chorus Annual Report 2025

6 A new measure to calculate fibre uptake was adopted in FY24 to better reflect Chorus’ expanding fibre footprint
beyond the original UFB rollout areas. It includes addresses outside of local fibre company areas that have been
passed by Chorus fibre.
1.1 Leading fibre uptake
FY23 FY24FY25
All fibre connections
1,031,0001,084,001,115,000
Addresses passed 1,477,0001,506,0001,532,000
Fibre uptake
(% of addresses passed)
6
69.3%71.4%72.1%
Average monthly data use (GB) -
per fibre connection
585623671
Fibre customers using >1,000GB
per month (%)
14%16%19%
We’re adopting a challenger mindset to achieve our objective of 80% fibre uptake by 2030. To get
there, we need approximately 240,000 more fibre connections, of which we expect just over half
to come from new property builds and the rest from addresses we’ve already passed.
By the end of June, fibre uptake had reached 72.1%, up from 71.4% in FY24, after we added
another 31,000 fibre connections. This increase in uptake was achieved despite our fibre
footprint also growing by 26,000 addresses to 1,532,000 passed addresses.
Fibre connection growth was below the 53,000 connections added in FY24 due to the rapidly
shrinking pool of copper customers remaining to migrate to fibre and slower new property
development in the weak macroeconomic environment.
To help drive fibre uptake, we’ve been working with retailers to develop a range of new market
propositions. For example, an initiative involving other local fibre companies created a national
database of inactive fibre connections.
PIONEERLEADADAPT
This made it easier for retailers to match opportunities against their own customer databases.
We also developed campaigns directed at attractive market segments and launched a proof-of-
concept trial for a digital equity service that could help lower socio-economic households.
Our business customer connections increased through the year as we continued to simplify
and enhance our service offerings. We introduced a new symmetrical Hyperfibre 1Gbps plan
(1,000Mbps download/upload) for small businesses and increased the committed information
rate for small business plans to help avoid data degradation on collaborative applications. We
also enhanced our fault restoration commitment for a wide range of business services, with
faults reported before midday now expected to be fixed before 6pm the same day.
The continued weakness in the New Zealand economy, cost-of-living pressures and higher
unemployment meant strong demand for our 50 megabits entry level consumer fibre plan through
the year. Demand for this service grew by 41,000 lines to 88,000, compared to that growth of
31,000 lines in FY24. The majority of this growth was from offnet connections and new premises,
with migration from higher-speed plans representing approximately a quarter of growth.
While we saw some reduction in the total number of consumer connections on 300Mbps
plans, there was continued growth in demand for 1 gigabit per second (Gbps) plans and above,
although the volume of trade-ups was lower than in prior years. Hyperfibre plans of 2 gigabits
and above enjoyed increasing momentum as more retailers promote these services. Overall,
services of one gigabit and above continue to account for 25% of our residential customer base.
In June, we boosted our 50 megabits plan to 100 megabits and our 300 megabits plan to 500
megabits. This speed boost covered services to more than 700,000 homes and was provided
at no extra wholesale cost to retailers. The speed changes underline fibre’s superior capability
relative to other technologies and our market research shows that customers place high value on
fibre’s performance and reliability.
We expect our higher speed plans to continue to attract large data households and early
adopters. However, we also see ongoing growth in data use across the full range of fibre plans
as customer activity evolves. Average monthly usage for fibre connections grew from 623GB to
671GB through the year and about 19% of fibre customers consumed more than 1 terabyte of
data (1,000 gigabytes) in June 2025, up from 16% the year before.
To put this growth in context, the 10% increase in total network traffic in FY25 was the equivalent
of an additional 29,000 years of continuous high-definition streaming.
EXPAND
7 Chorus Annual Report 2025 Operating highlights

1.1 Leading fibre uptake continued
About half of Chorus’ network traffic is streaming video and we forecast 1
terabyte to become the average monthly usage by 2029, as more customers
switch their TV viewing from broadcast to streaming platforms and 4K
content becomes more widely available. TVNZ, for example, has signalled
its intent to become fully digital and, like other overseas broadcasters, is
considering a future exit from free-to-air terrestrial television.
Such an exit would drive a significant lift in data consumption, particularly
for older age groups that still favour traditional broadcast mediums. We are
already seeing early examples of this broadcast platform shift with an increase
in the number of high network traffic events, typically during peak evening
hours. This is illustrated by the chart opposite showing daily traffic in FY24
compared to FY25. The lowest data traffic day is New Year’s Eve while Fortnite
gaming updates and Netflix’s streamed boxing match in November drove
notable peaks.
We remain resolute that the characteristics of fibre will only continue to
highlight its superiority as consumer and enterprise needs evolve. Today, the
primary focus is on downlink speed. In the future this will become just one of
many differentiating qualities, where symmetrical uplink speed, latency and
near live time connectivity will be critical. As practices for remote working,
online education, telehealth, and cloud computing evolve, having scalable,
future proof fibre technology is a significant advantage.
Artificial Intelligence (AI) is another potential disruptor. Market commentators
have noted that while the exact network impact of AI usage is evolving,
a step-change appears inevitable in the next decade. Such a change and
the need for high capacity, together with greater upload and low latency,
would further cement fibre’s status as the globally preferred future-proofed
technology. Conversely, it poses an inherent challenge for shared network
technologies like fixed wireless that rely on current demand patterns and
‘good enough’ performance.
8 Chorus Annual Report 2025 Operating highlights
Daily Peak Traffic on Fibre Network - FY25 vs FY24
Peak Throughput (Tbps)
1 JUL
1 AUG
1 SEP
1 OCT
1 NOV
1 DEC
1 JAN
1 FEB
1 MAR
1 APR
1 MAY
1 JUN
29 JUN
21
FEB
Netflix boxing event drove daytime peakNew Year’s Eve is lowest usage day annuallyFortnite update drove record peak
16
NOV
31
DEC
FY25FY24
2.0
2.5
4.0
4.5
5.0
5.5
3.5
3.0
The number of peak traffic events continues to increase as more customer activity moves online.
There were 17 peak traffic events in FY25 compared to 10 in FY24.
PIONEERLEADADAPTEXPAND

Kiwis keep using more data each year, consistent with bandwidth trends overseas.
Much of that data usage occurs in evening peak times due to activity such as video
streaming and gaming. Video streaming on multiple devices at the same time generates
frequent high-volume bursts of data within a household. Gaming updates often create
above average peak time traffic on the Chorus network.
What are the data use trends on our fibre network?
Average daily network traffic per year
Average daily usage per year
Time of day
202120242025202220202023
0
0.5
1.0
1.5
2.0
2.5
4.5
3.5
3.0
Average daily usage (Tbps)
12:00AM12:00PM4:00AM4:00PM12:00AM8:00PM8:00AM
4.0
12AM12PM4AM4PM12AM8PM8AM
Peak traffic days in FY25
1
2
3
4
5
6
12AM6AM6PM
12PM
12AM
Network traffic vs Electricity (GwH)
FY30
Average monthly data usage per connection (GB)
Monthly data usage (GB)
0
100
200
300
400
500
700
600
Average monthly upload data usage (GB)
DEC ‘15DEC ‘15DEC ‘15DEC ‘15DEC ‘16DEC ‘16DEC ‘16DEC ‘16DEC ‘16DEC ‘16JUN ‘15JUN ‘15JUN ‘15JUN ‘15JUN ‘16JUN ‘16JUN ‘16JUN ‘16JUN ‘16JUN ‘16
0
100
200
300
400
500
700
600
Average monthly data usage (GB)
DEC ‘15
DEC ‘19
DEC ‘17
DEC ‘21
DEC ‘16
DEC ‘20
DEC ‘18
DEC ‘22
DEC ‘23
DEC ‘24
JUN ‘16
JUN ‘20
JUN ‘18
JUN ‘22
JUN ‘17
JUN ‘21
JUN ‘19
JUN ‘23
JUN ‘24
JUN ‘25
3.86
Tbps
202020212022202320242025
Copper data usage (PB)
Fortnight update
21 February 2025
Fibre data usage (PB)
Fortnight update
1 December 2024
Projected electricity use
Average day
Electricity (GwH)
Netflix boxing event
16 November 2024
Traf fic ( T bps)
Average day
3 November 2023
3 December 2023
24 May 2024
Peak days on fibre network in FY25
0
1
2
3
4
5
6
12.00AM6.00AM6.00PM
12.00PM
12.00AM
Traffic (Tbps)
0
1
2
3
4
5
6
Peak days/data
8PM–12AM
9 Chorus Annual Report 2025
FY20FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30
0
0
5,000
50
4,000
40
3,000
30
2,000
20
1,000
10
70
7,000
60
6,000
80
8,000
90
9,000
Data usage (PB)
Electricity (GwH)
0
0.5
1.0
1.5
2.0
2.5
4.0
3.5
3.0
Traf fic ( T bps)
0
Target

1.2 Expand new revenues
FY23 FY24FY25
Smart locations
+19%+16%+23%
New property development
– lots passed
33,00027,00024,000
Our new operating model has a dedicated Infrastructure team to focus on growing existing
revenue categories and developing new opportunities that leverage our infrastructure assets.
Their goal is to grow our annual infrastructure revenues from about $150 million in FY25 to
approximately $180 million to $200 million by 2030.
Demand for new property development has stabilised back around pre-Covid levels of 20,000
to 25,000 lots a year. We expect this segment to return to growth once broader economic
conditions improve. With this in mind, we revamped our processes and market proposition so it
is easier for developers to realise the benefits of our open access fibre.
In the short term, the retirement of the copper network and the shutdown of a legacy fibre
platform has resulted in some infrastructure-grade services migrating to cheaper fibre options or
alternative networks.
We saw steady growth in connectivity across existing services such as smart locations
(e.g. traffic cameras, digital billboards) and mobile backhaul. We had about 3,400 cellsite
connections at year end and the number of smart locations lifted by another 23% to more
than 2,500 connections.
Data centre development is creating an emerging growth market for fibre and we’ve launched an
enterprise-grade solution, Express Connect, to simplify and accelerate data centre connectivity.
The new service is designed for mission critical enterprise applications and enables remote
provisioning into data centres in as little as four business hours, with no need for additional
equipment or on-site technician support.
Demand for rack space across our five EdgeCentre co-location exchanges continued to grow,
albeit at a gradual rate given the macroeconomic environment. We’re considering how we might
work with third parties to accelerate the edge opportunity.
In December, we commenced feasibility work on a potential Tasman Ring subsea project with
Datagrid. We’ve been exploring this project because it could unlock a key connector role for
Chorus in the burgeoning data centre ecosystem.
Our Memorandum of Understanding and engagement with Datagrid ended as the project did
not meet our investment criteria. Chorus will continue to monitor future opportunities in the
sector but this is no longer an area we are actively pursuing.
PIONEERLEADADAPTEXPAND
10 Chorus Annual Report 2025 Operating highlights

1.3 Achieve operational excellence
FY23 FY24FY25
Customer satisfaction:
fault restoration (12 month average)
7.7/108.6/10
(target 8.1)
8.5/10
(target 8.4)
Customer satisfaction:
intact provisioning (3 month rolling
average to June 2025)
7. 3/107.7/10
(target 7.6)
8.1/10
(t a r g e t 7. 9)
Our Adapt pillar is about driving operational excellence across our organisation, through
discipline and efficiency across systems and processes.
Customer satisfaction was a key area of focus as we continue to differentiate customers’
experience of the fibre network from other technologies. We lifted our target for fault restoration
performance to 8.4 in FY25 and succeeded in achieving a rolling twelve-month average of 8.5 in
June. This reflected material improvements to average restore times and an initiative to reduce
the timeframe given to customers for technicians to arrive, down from four to two hours.
For intact provisioning, we used data insights to focus initiatives on tailoring the connection
process to different customer needs, reducing connection failures and streamlining delivery. This
lifted customer satisfaction to a three-month rolling average of 8.1 in June, up from 7.7 last year
and well above our target of 7.9 for the year.
In the second half of FY25 we undertook an internal change programme to get Chorus ‘future
fit’ for the start of Horizon 2 in FY26. This programme built upon the matrix operating model we
introduced in FY24, and involved the realignment of teams, roles and processes to better reflect
the acceleration of our shift to an all-fibre focus.
The programme resulted in the reduction of about 10% of roles across Chorus in FY25, while also
introducing new capability to support our focus on becoming a great network operator.
An example of this shift is the evolution of our Frontier team. They were originally focused on
copper retirement and leading our Fibre Frontier network extension to more than 9,000 existing
premises. With that rollout nearly complete, their scope has broadened to overseeing all activity
related to the end-to-end retirement of the copper network. This includes the simplification of
property and legacy infrastructure assets, supporting the optimisation of our non-core footprint.
Another critical aspect of our ability to achieve operational excellence is the regulatory settings
that apply to Chorus. Before Christmas, we received the Commerce Commission’s final decision
on our maximum allowable revenue through to the end of 2028. Together with improved
operating and capital expenditure allowances, this final decision has provided the regulatory
clarity needed for us to keep maximising fibre’s socio-economic benefits for New Zealanders.
Importantly, the regulatory allowances for this next four-year period recognise more of Chorus’
shared operating costs must be borne by the fibre network as the copper network is withdrawn.
However, this only applies in our fibre areas, so we need to manage copper costs downwards as
copper revenues elsewhere continue to fall.
In June, a review of the telecommunications sector was announced by the Ministry for
Regulation. The review will consider whether current regulation remains fit for purpose in light of
technology and market changes. This includes considering topics such as Chorus’ shareholder
cap, telecommunications service obligations and aspects of fibre services regulation. We
welcome this opportunity to streamline the multiple layers of regulation that have been added to
over decades. The review is scheduled to be completed over six months.
PIONEERLEADADAPTEXPAND
11 Chorus Annual Report 2025

1.4 Pioneer an all-fibre business
FY23FY24FY25
Copper connections remaining
240,000157,00092,000
Direct copper operating expenditure
n/a$54m$45m
Copper reactive fault expenditure
$34m$26m$19m
Legacy metal network recycled
(tonnes)
2191501,090
Our Pioneer strategy pillar is about retiring copper connections and assets by 2030 to simplify
our business and identifying opportunities for commercial fibre expansion.
We started issuing copper withdrawal notifications in late 2021, when copper lines were still
about one-third of our total connections. Today they make up fewer than 8% and there are just
13,000 copper lines remaining in our fibre areas. This part of the copper network will be shut
down by mid-2026, about six months earlier than anticipated.
We continue to see a steady decline in connections outside of fibre areas as customers choose
to migrate to alternative technologies such as fixed wireless and satellite. The number of
remaining copper connections is also reducing because of our Chorus-funded Fibre Frontier
rollout for more than 9,000 premises. About half of these premises were passed and ready for
service at the end of the year, with about 1,200 already connected to fibre.
We’re committed to implementing a clear, consumer-centric retirement process that supports
the transition of the remaining copper customers to more modern and reliable services. In FY25,
this included about 1,500 remote addresses on obsolete radio technology that was increasingly
unreliable and uneconomic to maintain. We undertook a customer information campaign to help
customers understand the alternatives available to them and most customers had migrated to
these other options by the end of June.
Based on the rate of decline of copper services and market estimates, Chorus expects that
satellite connections will very soon overtake the number of copper connections in rural areas.
It is, therefore, unsurprising that the Commerce Commission recommended to Government
in 2025 that the widespread availability of alternative wireless and satellite technologies means
copper services should no longer be regulated.
As customers exit the copper network, we’re progressively shutting down network equipment,
such as broadband electronics in cabinets and exchanges. This is helping achieve electricity
savings and lower associated carbon emissions, as well as reduce ongoing maintenance costs.
We’re also considering options for larger scale asset rationalisation as we transition to an all-fibre
network. This programme is linked to the pace of copper retirement outside Chorus’ fibre areas
and will evaluate the disposal of network sites and other assets.
During FY25 we ran a trial to recover and recycle redundant copper cables. The net proceeds
from the trial were $3 million. Based on these early results, we estimate total net proceeds
from copper cable recycling could be $30 million to $50 million over three to seven years as
we progressively retire the network. This will be subject to factors such as volume, the cost of
extraction and global copper prices.
12 Chorus Annual Report 2025
PIONEERLEADADAPTEXPAND

Our December Investor Day outlined a reset in strategy
and execution across three distinct Horizons. FY25
(Horizon 1) was foundational, marking the start of our
transition to becoming the ‘great network operator’.
This year, we laid the groundwork for that change - embedding
a clear strategy, with the clarity and specificity of what future
success looks like: “a simplified all fibre business with 80% uptake
by 2030”. We refined our operating model, disestablished legacy
roles, and reinvested in new operational capabilities.
We sharpened our market position, promoting fibre as the gold
standard in connectivity—vastly superior to alternatives like
fixed wireless. Fibre isn’t just better, it is technologically superior
in every way that matters.
These changes have helped us keep growing fibre connections
through FY25 and will be an ongoing advantage, with the
economy expected to remain challenging for some time.
With fibre uptake already above 72%, our goal to reach 80%
requires us to work in different ways. Innovation remains
central, as exemplified by the recent speed boost for two of
our popular plans, benefitting more than 700,000 homes. This
signals where we’re headed, with advanced fibre markets like
Singapore already moving to 10Gbps speeds as standard.
As we transition into Horizon 2 (FY26–FY29) Chorus will
continue to evolve, reflecting a business that is more simple,
efficient, innovative and competitive.
A model for successful infrastructure investment
Through global engagement with investors and operators,
it’s clear New Zealand’s early fibre adoption was a strategic
advantage. The utility-style framework for fibre has also proved
sensible and workable, and Chorus has begun repaying the
Government financing that helped fund the initial fibre rollout,
with the first payment of $170 million in June.
What’s more, our approach has proven highly efficient, with
local fibre company overbuild of households below 0.3%.
7

Contrast this with countries like the United Kingdom where it is
estimated that a third of premises passed by fibre have multiple
fibre networks available.
Analysis from Deloitte estimates that fibre broadband has
already contributed $31 billion to New Zealand’s economy,
with benefits forecast to grow to more than $140 billion over
the next decade. Fibre-enabled industries – like film, gaming
and cloud services – have flourished, and demand from AI and
cloud computing is driving further fibre upgrades and data
centre connectivity.
In parallel, we’re on track to retire the remaining 13,000 copper
connections within fibre areas by mid-2026, with full network
retirement by 2030. This aligns with overseas markets, like Spain,
with 89% fibre coverage and its copper network just retired. The
wider EU is targeting 2030 for shutdown.
In the United States, AT&T is targeting copper retirement by
2029. They say while wireless technology has its place, fibre will
win given its better performance, latency, resiliency, scalability
and marginal cost. They forecast average monthly household
data usage to grow by 80% over five years. That’s in-line with
our expectations of 1,000 gigabytes a month by 2029.
Expanding Fibre further
Our fibre rollout has stopped at 87% of the population, while
other countries are going further. There’s a risk that ‘good
enough’ non-fibre solutions for the remaining 13% will only
exacerbate the digital divide as broadband needs evolve.
We were, therefore, pleased when the government’s Infrastructure
Priorities Programme recently endorsed our proposal to expand
fibre to 95% of New Zealanders. The only private sector proposal
among 17 endorsed projects, it has a benefit-cost ratio of 6.3,
based on an expected $17 billion in economic benefits for a cost
of less than $3 billion. We’re ready to start, with the ability to flex
the rollout for funding and regional needs.
However, expansion benefits the communities where fibre
reaches, rather than going to the network builder. Some form
of public investment is needed but government endorsement
doesn’t guarantee any government funding.
Equally urgent is digital affordability, where a different approach
is needed. Nearly 400,000 households have access but can’t
afford it. In an age where connectivity underpins everything from
remote surgery to immersive virtual learning, participating in the
digital economy must be a right, not a luxury.
We’re committed to addressing this. We’ve established a
new community fund to contribute to build costs in willing
communities and launched a digital equity proof-of-concept
trial with service providers. It’s a complex challenge, but we’re
committed to finding real solutions for low-income households.
Future-Proofing New Zealand
To remain a global broadband leader, New Zealand must think
long-term. Fibre isn’t just the best technology today—it’s the
only infrastructure with the capacity, reliability, and scalability to
meet the demands of tomorrow. Alternatives may complement
connectivity, but they cannot compete with fibre’s consistent
performance, ultra-low latency, or ability to handle exponential
data growth at minimal marginal cost.
Investing in fibre is not about keeping up, it’s about staying
ahead. As the digital economy accelerates, and technologies
like AI, cloud computing, and immersive virtual experiences
become everyday essentials, only fibre can provide the resilient
backbone society will rely on.
We’re not just building for today’s needs, we’re laying
the foundation for decades of innovation, inclusion, and
national resilience. The choices we make now will determine
whether New Zealand leads or lags in the next wave of digital
transformation. With fibre, we have the opportunity to lead.
Let’s not waste it.
.
7 Commerce Commission, Feasey Report on fibre telecommunications in NZ, p19.
2.0 Outlook
Mark Aue
Chief Executive
13 Chorus Annual Report 2025

14 Chorus Annual Report 2025
Advances in customer-facing technology and services, together with new ways
to use data and changing customer habits, are all combining to drive increased
bandwidth demand.
Fibre is meeting the need for high-quality broadband because of its efficiency in
carrying more data at multi-gigabit speeds, together with its high reliability and fast
response time.
A.I. is poised to transform global network traffic demand. Nokia forecasts global consumer
A.I. traffic will represent 38% of all consumer broadband traffic by 2033. This is being driven
by direct user interaction with A.I. applications (e.g. A.I.-assisted tasks, A.I.-powered gaming)
and indirect traffic from A.I. algorithms increasing user engagement (e.g. personalised A.I.
recommendations for streaming and online marketplaces).
What’s driving data growth?
SPEED/CAPABILITY
MULTI-GIGABIT
SERVICES
GOOGLE FIBER
OFFERING
20GBPS
25% OF
CHORUS USERS
ON 1GBPS
AND 2GBPS+
IN MARKET
STREAMING
50% OF CHORUS
TRAFFIC AND GROWING
DAILY ONLINE
VIDEO REACH
HAS SURPASSED
LINEAR TV
60+ AGE GROUP
STREAMING
MORE
4K ULTRA HD
HIGH DEFINITION QUALITY
NEEDS MORE DATA
IF ALL
STREAMING
IS 4K,
DATA USE
~1,200GB
A MONTH
IF ALL TV
SHIFTS TO
4K ONLINE,
DATA USAGE X3
~2,000GB
A MONTH
WI-FI ADVANCES
IN-HOME UPGRADES TO WIFI 7
REDUCES CONSTRAINT ON FIBRE
4 6 G B P S
THROUGHPUT
(VS 9.6GBPS
ON WI-FI 6)
UP TO
1 0 0 X L E S S
LATENCY
(THAN WI-FI 6)
AND 5X MORE
CAPACITY
MULTI-SCREENS
PROLIFERATION OF CONNECTED
HOUSEHOLD DEVICES
AVERAGE ~20
CONNECTED
DEVICES
PER HOME
TODAY
NUMBER OF
DEVICES
EXPECTED TO
DOUBLE EVERY
5 YEARS
TODAY
WHAT’S ON THE BROADER HORIZON

15 Chorus Annual Report 2025
We believe New Zealand was fortunate to begin investing in fibre in 2011. In the
wake of the COVID pandemic, other countries are now making the shift to fibre.
Demand for high-quality broadband networks - characterised by high speeds, high
reliability and low latency – continues to grow as data hungry digital applications become
integral to economies and daily life.
Looking ahead to 2030
72.1% FIBRE UPTAKE
ON OUR NETWORK
19% OF FIBRE USERS
CONSUME 1,000GB+
PER MONTH
ALL–FIBRE BUSINESS
AS DEMAND
FOR COPPER FADES
80% FIBRE UPTAKE
ON OUR NETWORK
1,000GB+
PER MONTH HAS BECOME
THE NORM
25% REDUCTION
FROM 2020 ELECTRICTY USE
AS FIBRE ENABLES EFFICIENCY
92,000
COPPER LINES
REMAINING
ELECTRICITY USE
REDUCING AS COPPER
SWITCHES OFF
MULTI GIGABIT
PLANS HAVE GONE
MAINSTREAM
2+
GBPS
BROADCAST TV
HAS SHIFTED TO
STREAMING
STREAMING
~50% OF CHORUS TRAFFIC
IS VIDEO
1
GBPS
WHAT’S ON OUR HORIZON FOR 2030
TODAY
25% OF CUSTOMERS
ON RESIDENTIAL 1 GBPS PLAN
OR FASTER

16 Chorus Annual Report 2025
17 In summary
18 Revenue commentary
19 Expenditure commentary
20 Depreciation and amortisation expense
21 Finance income and expense
22 Capital expenditure commentary
23 Long term capital management
MANAGEMENT COMMENTARY

In summary
2025
$M
2024
$M
Operating revenue1,014 1,010
Operating expenses(309)(310)
Earnings before interest, income tax, depreciation and amortisation705 700
Depreciation and amortisation(474)(462)
Earnings before interest and income tax231 238
Net finance expense(210)(217)
Net earnings before income tax21 21
Income tax expense(17)(30)
Net earnings/(loss) for the year4(9)
We report earnings before interest, income tax, depreciation, and amortisation (EBITDA) of $705
million for the year ended 30 June 2025 (FY25), an increase of $5 million from reported FY24
EBITDA of $700 million. This reflects a resilient result in the context of a challenging year for the
New Zealand economy.
Revenues increased by $4 million to $1,014 million. This was driven by continued growth in fibre
connections and ARPU, offsetting revenue headwinds from the retirement of legacy services.
Operating expenses of $309 million were $1 million lower than FY24. This included $9 million of
one-off costs for operating model changes and exploration of new revenue opportunities.
Net earnings lifted to $4 million, compared to a net loss of $9 million in FY24. Lower interest costs
helped offset increased depreciation expense from the retirement of the copper network, and the
prior year included a one-off $15 million non-cash tax expense.
Capital expenditure was $415 million in FY25, down $12 million from FY24. Lower fibre installation
volumes and copper-related spend was partially offset by a fibre extension project to more than
9,000 existing premises.
We will pay a final dividend of 34.5 cents per share on 7 October 2025, in line with guidance of a
full-year dividend of 57.5 cents per share.
Management commentary
17 Chorus Annual Report 2025

Revenue commentary
2025
$M
2024
$M
Fibre broadband (GPON)745 697
Fibre premium (P2P)64 69
Copper based broadband56 83
Copper based voice1728
Data services copper23
Field services products64 67
Infrastructure35 33
Value added network services26 26
Other5 4
Total revenue1,014 1,010
Revenue overview
Chorus’ product portfolio encompasses a range of wholesale broadband, data and voice services
across a mix of regulated and commercial products. Revenues of $1,014 million were up $4
million from FY24, with growth in fibre revenues offsetting the decline in legacy service revenues.
We ended FY25 with total fixed line connections of 1,207,000, down 34,000 lines from the prior
year. This reduction continues to largely be driven by the migration of copper connections to
alternative networks in areas where Chorus does not have fibre available.
Connections
Connections
2025
Connections
2024
Connections
2023
Fibre broadband (GPON)1,106,0001,074,0001,021,000
Fibre premium (P2P)9,000 10,000 10,000
Copper VDSL
34,000 55,000 83,000
Copper ADSL34,000 56,000 84,000
Data services over copper- 1,000 1,000
Baseband copper24,000 45,000 72,000
Total fixed line connections1,207,000 1,241,000 1,271,000
Fibre broadband (GPON)
Fibre broadband revenue continued to grow and accounted for 73% of total revenues, up from
69% in FY24. Fibre broadband connections grew by 32,000 to 1,106,000, lifting fibre uptake to
72.1% of passed addresses from 71.4% in FY24. Average monthly revenue per fibre user grew from
$55.71 to $58.98 in FY25, with price increases deferred by a quarter to January 2025.
Uptake of our Home Fibre Starter service grew by 41,000 connections in FY25 to 88,000 lines,
representing 9% of residential fibre connections. Higher value multi-gigabit Hyperfibre and 1
Gbps services remained steady at 25% of residential fibre connections. The majority of customers
are on our 500Mbps service, with a speed boost applied to the prior 300Mbps service in mid-
June 2025.
Fibre premium (P2P)
Fibre premium revenues decreased by $5 million as we retired a legacy enterprise service
platform and customers migrated to lower-priced services or alternative networks outside
our GPON footprint.
Copper based revenues
Connection revenues across copper broadband and voice services continued to decline as
customers migrate to fibre or alternative services. A 2.15% inflation-related price increase was
applied to services in mid-December 2024.
Field services products
Field services revenues decreased by $3 million compared to FY24. This was driven by a $4
million decrease in new property development revenues to $22 million as the weaker economy
saw volumes continue to decline from record post-COVID highs.
Infrastructure
A $2 million increase in infrastructure revenues was driven by a combination of wireless
co-location and Edgecentre demand, together with higher data centre pass-through
electricity billings.
Other
Other revenue included $3 million of net gains from the recycling of copper cabling as we retire
the copper network and optimise our legacy assets.
Management commentary
18 Chorus Annual Report 2025

Expenditure commentary
Operating expenses
2025
$M
2024
$M
Labour costs85 80
Network maintenance47 53
Information technology costs40 44
Other network costs37 37
Rent, rates and property maintenance27 27
Electricity22 22
Advertising12 11
Consultants9 6
Insurance65
Regulatory levies119
Other expenses13 16
Total expenditure309 310
Total operating expenses of $309 million in FY25 were down $1 million compared to FY24.
Labour
Labour costs of $85 million represent staff costs that are not capitalised and includes $5 million
for operating model changes.
At 30 June 2025, we had 755 permanent and fixed term employees, down from 846 employees
in FY24 due to operating model changes.
We capitalise labour costs and the associated overheads in relation to fibre build and connection
activity. In FY25, about 44% of labour costs were capitalised, down from 47% in the prior year.
Network maintenance
Network maintenance costs decreased by $6 million from FY24. This largely reflected the
continued reduction in copper fault volumes as copper connections decline and we optimise
spend ahead of the copper network’s retirement. Fibre-related costs increased slightly because
of connection growth and inflation, but the fibre network has a significantly lower fault rate than
copper services.
Information technology
Information technology costs decreased $4 million from FY24 as we continued to exit
legacy systems.
Other network costs
Other network costs were flat year-on-year. This included $4 million of network and property
optimisation spend as we retire copper network assets, consistent with the prior year.
Electricity
Electricity costs were flat year-on-year with a 5% reduction in electricity usage offset by increased
electricity charges.
Consultants
Consultant spend increased by $3 million to support the exploration of new revenue opportunities.
Management commentary
19 Chorus Annual Report 2025

Depreciation and amortisation expense
2025
$M
2024
$M
Estimated useful
life (years)
Weighted average
useful life (years)
Depreciation
Fibre cables13913520-3020
Ducts, poles, and manholes908020-5048
Copper cables
757410-2520
Cabinets16175-2013
Network electronics71702-259
Right of use assets
13145-2518
Other
13132-2514
Buildings
3210-5045
Less: crown funding(30)(31)
Total depreciation390374
Amortisation expense
Software and other intangibles5157
Customer acquisition assets3331
Total amortisation expense8488
Total depreciation and
amortisation expense
474462
During FY25, $415 million of expenditure on network assets and software was capitalised.
Depreciation expense was up $16 million compared to FY24. Depreciation across all copper
assets lifted by $9 million to $99 million in FY25. Copper cables in Chorus UFB areas were fully
depreciated in June 2025. Copper cables and copper related ducts and poles in local fibre
company areas will be fully depreciated by June 2026. Copper cables and poles in non-fibre
areas will be fully depreciated by June 2030.
Software and other intangibles largely consist of the software components of billing,
provisioning and operational systems.
Chorus expects that incremental costs incurred in acquiring new contracts with new and existing
customers are recoverable. These costs are capitalised as customer acquisition assets and
amortised against revenue or within amortisation expense, depending on their nature. In the
period to 30 June 2025, $33 million was recognised as amortisation expense.
The offset of Crown funding against depreciation will continue to amortise as a credit to the
associated depreciation expense.
The weighted average useful life represents the useful life in each category weighted by the net
book value of the assets.
Management commentary
20 Chorus Annual Report 2025

Finance income and expense
(Income)/expense
2025
$M
2024
$M
Finance income(2) (5)
Finance expense
Interest on syndicated bank facility12 9
Interest on European Medium Term Notes (EMTN)71 88
Interest on Australian Medium Term Notes (AMTN)21 19
Interest on fixed rate NZD Bonds42 38
Interest on capital notes
1 –
Capitalised interest(2)(1)
Interest costs145 153
Other interest expense18 25
Ineffective portion of changes in fair value of cash flows hedges(4)(3)
Total finance expenses excluding NIFF securities (notional interest)
159 175
NIFF securities (notional) interest53 47
Total finance expense212 222
Finance expenses were $10 million lower than FY24. Interest costs reduced by $8 million with the
weighted effective interest rate decreasing from 5.77% to 5.39%.
Capital notes of $170 million were issued in June 2025, replacing the equivalent amount of
Crown securities originally issued under the UFB public-private partnership. Notional interest on
the Crown securities increased by $6 million in the year.
Chorus fully hedges the foreign exchange exposure on all foreign debt with cross-currency
interest rate swaps. Approximately 70% of our floating interest rate exposure was hedged with
fixed interest rate swaps.
Other interest expense includes lease interest of $11 million (FY24: $11 million) and amortisation
arising from the difference between fair value and proceeds realised from interest rate swap
resets of $7 million (FY24: $7 million).
Taxation
The FY25 effective tax rate is 84% (FY24: 143%, normalised 68%).
Tax expense is higher than the statutory rate of 28% because accelerated depreciation of copper
assets is reducing net earnings, and due to permanent differences between tax and accounting
arising from the tax treatment of the grants received from Crown project-related funding. FY24
included a one-off deferred tax expense of $15 million, following a law change for deductibility
of depreciation for commercial buildings.
The interest expense and depreciation credit recognised in the income statement for NIFF
securities are non-taxable as confirmed by binding IRD rulings. Government grants have also
been received for funding of specific projects. The amortisation of the government grants, along
with the accounting depreciation recognised in the income statement, are non-taxable and no
tax depreciation is claimed on the assets.
Management commentary
21 Chorus Annual Report 2025

2025
$M
2024
$M
Sustaining capital expenditure205 205
Discretionary growth capital expenditure 210222
Gross capital expenditure415427
Less Third-party contributions(40)(55)
Net capital expenditure375 372
Gross capital expenditure in FY25 was $415 million, down $12 million from FY24. Within this total,
sustaining capital expenditure – to maintain, replace or improve an existing asset – was flat year-
on-year at $205 million.
Discretionary growth capital expenditure was down $12 million. Reduced fibre installation spend
was partly offset by increased spend on footprint expansion.
Gross capital expenditure was supported by $4 million of Crown funding (e.g. government grants
for regional network upgrades) and $36 million of customer contributions (e.g. roadworks and
new property development contributions). Capital expenditure attributable to the regulated asset
base (RAB) for fibre, which excludes capital contributions, is estimated to be about $340 million.
Copper capital expenditure decreased by $7 million from FY24. This included about $8 million of
grant funded rural network upgrades and contribution-funded roadworks activity.
Capital expenditure commentary
Management commentary
22 Chorus Annual Report 2025

We will pay a final unimputed dividend of 34.5 cents per share on 7 October 2025 to all
shareholders registered at 5.00pm 16 September 2025. The shares will be quoted on an
ex-dividend basis from 15 September 2025. As the dividend is unimputed, there will be no
supplementary dividend payable to shareholders outside of New Zealand.
The dividend reinvestment plan will not be available for the final dividend.
Dividend guidance for FY26 has been set at 60 cents per share, subject to no material adverse
changes in circumstance or outlook. The FY26 dividend will be unimputed.
The Board considers that a ‘BBB’ or equivalent credit rating is appropriate for a company such as
Chorus. It intends to maintain capital management and financial policies consistent with these
credit ratings. It is Chorus’ intention that in normal circumstances the ratio of net debt to EBITDA
will not materially exceed 4.75 times. At 30 June 2025, we had a long-term credit rating of BBB/
stable outlook by Standard & Poor’s and Baa2/stable by Moody’s Investors Service.
Long term capital management
Management commentary
23 Chorus Annual Report 2025

24 Chorus Annual Report 2025
25 Independent Auditor’s Report
28 Consolidated income statement
28 Consolidated statement of comprehensive income
29 Consolidated statement of financial position
31 Consolidated statement of changes in equity
32 Consolidated statement of cash flows
35 Notes to the consolidated financial statements
FINANCIAL STATEMENTS

Independent Auditor’s Report
To the shareholders of Chorus Limited
Report on the audit of the consolidated financial statements
Opinion
We have audited the accompanying consolidated financial statements which comprise:
– the consolidated statement of financial position as at 30 June 2025;
– the consolidated income statement, statements of other comprehensive income, changes
in equity and cash flows for the year then ended; and
– notes, including material accounting policy information and other explanatory information.
In our opinion, the accompanying consolidated financial statements of Chorus Limited (the
Company) and its subsidiaries (the Group) on pages 28 to 70 present fairly in all material
respects:
i. the Group’s financial position as at 30 June 2025 and its financial performance and cash
flows for the year ended on that date;
ii. In accordance with New Zealand Equivalents to International Financial Reporting Standards
(NZ IFRS) issued by the New Zealand Accounting Standards Board and the International
Financial Reporting Standards issued by the International Accounting Standards Board.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand)
(ISAs (NZ)). We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
We are independent of Chorus Limited in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (Including International Independence
Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board
and the International Ethics Standards Board for Accountants’ International Code of Ethics for
Professional Accountants (including International Independence Standards) (IESBA Code), and
we have fulfilled our other ethical responsibilities in accordance with these requirements and the
IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the Auditor’s responsibilities for the
audit of the consolidated financial statements section of our report.
Our firm has provided other services to the Group in relation to climate related assurance,
regulatory assurance and risk related workshop facilitation. Subject to certain restrictions,
partners and employees of our firm may also deal with the Group on normal terms within
the ordinary course of trading activities of the business of the Group. These matters have not
impaired our independence as auditor of the Group. The firm has no other relationship with, or
interest in, the Group.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped
us to determine the nature, timing and extent of our audit procedures and to evaluate the
effect of misstatements, both individually and on the consolidated financial statements as a
whole. The materiality for the consolidated financial statements as a whole was set at $9.0
million determined with reference to a benchmark of the Group’s total revenues. We chose the
benchmark because, in our view, this is a key measure of the Group’s performance.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the consolidated financial statements in the current period. We
summarise below those matters and our key audit procedures to address those matters in order
that the shareholders as a body may better understand the process by which we arrived at our
audit opinion.Our procedures were undertaken in the context of and solely for the purpose of
our audit opinion on the consolidated financial statements as a whole and we do not express
discrete opinions on separate elements of the consolidated financial statements.
25 Chorus Annual Report 2025

The key audit matterHow the matter was addressed in our audit
Recoverability of assets
Refer to Note 1 and 2 to the Financial Statements.
Capitalisation and the carrying value of assets are a key
audit matter due to the significance of assets to the Group’s
consolidated statement of financial position, and due to the
judgement involved in determining the carrying value of assets,
principally:
—decision to capitalise or expense costs relating to the network
and IT spend. This depends on whether the expenditure is to
enhance the network (capitalise) or to maintain the current
operating capability of the network (expense);
—estimation of the useful life of the asset once the costs are
capitalised;
—obsolescence and impairment risk; and
—uncertainty of the impact of ongoing technological chance,
transitioning to a new regulated model, movement towards
a fibre future and retail service provider/local fibre company
behaviour.
Our audit procedures included:
—examining controls to settle costs to the fixed asset register, monitor labour costs and capex spend and approval of the asset life
review.
—sample testing of capital expenditure to determine whether the service or item meets both Chorus’ capitalisation policy and the
capitalisation criteria per the applicable accounting standard and verifying that the amount is accurately recorded in the fixed
asset register.
—assessing, on a sample basis, whether internal projects meet the criteria for capitalisation.
—assessing whether labour rates applied in capitalising employee and contractor time for a sample of personnel were consistent
with employee career level and contracts or invoices.
—examining labour rates applied when capitalising employee time, ensuring these are consistent with the employee career level
per their most recent contract/ variation. We reviewed, on a sample basis, the amount of labour cost capitalised against salaries
or invoiced time, at an individual employee level, to ensure the amount of labour cost capitalised does not exceed an individual’s
salary or invoiced time.
—performing data analytical procedures over capitalised labour spend for the period and useful lives of assets in the fixed asset
register to identify any unusual trends.
—assessing the allocated useful economic lives of the assets, by comparing to industry benchmarks and our knowledge of the
business and its operations and technology changes anticipated.
Chorus Funding
Refer to Note 4, 5, 6, 7 and 19 to the financial statements.
As at 30 June 2025 Chorus has:
External borrowings of $3,138 million (30 June 2024: $2,626
million)
Crown funding of $903 million (30 June 2024: $929 million)
The external borrowings, CIP securities, cross-currency
and interest rate derivatives are a key audit matter due to
their significance to the Group’s consolidated statement of
financial position and the complexity and judgement involved
in determining the appropriate valuation and accounting
treatment for the CIP securities and cross-currency and interest
rate derivatives.
Our audit procedures included:
—use of KPMG specialists to independently revalue interest rate derivatives using models and inputs which are independent to
those utilised by Management.
—agreeing the terms of the derivatives to the confirmation provided by the derivative counterparty.
—use of KPMG specialists to evaluate the hedge effectiveness of derivatives hedging EMTN, AMTN and Capital notes and NZD
Bonds by independently modelling future changes in the value of these instruments to assess whether the underlying derivatives
were effective hedging instruments.
—verifying that all the adjustments made in relation to the first CIP repayment and Capital Notes issuance are in line with the
relevant accounting standard and agree to relevant supporting documentation.
—use of KPMG specialists to review the hedge documentation of the Capital Notes against requirements of IFRS 9,and confirming
this has been appropriately set up in the Treasury system.
—assessing for changes to the accounting treatment of the CIP securities and verifying the carrying amount is in-line with the
accounting models.
—confirming debt with funders, including newly drawn debt during the period, sighting repayments and reviewing compliance with
covenant requirements.
—assess the disclosures in the financial statements to ensure these are complete and accurate in accordance with the applicable
accounting standards.
26 Chorus Annual Report 2025

Other information
The Directors, on behalf of the Group, are responsible for the other information. The other information
comprises information included in the Annual Report. This being Chorus’ operating, marketing and
regulatory overviews, management commentary and disclosure relating to corporate governance and
statutory information, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover any other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the
other information and in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit or otherwise
appears materially misstated.
If, based on the work we have performed, we conclude there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them
in the independent auditor’s report and for no other purpose. To the fullest extent permitted by law,
none of KPMG, any entities directly or indirectly controlled by KPMG, or any of their respective members
or employees, accept or assume any responsibility and deny all liability to anyone other than the
shareholders for our audit work, this independent auditor’s report, or any of the opinions we have formed.
Responsibilities of the Directors for the consolidated financial statements
The Directors, on behalf of the Group, are responsible for:
—the preparation and fair presentation of the consolidated financial statements in accordance with
NZ IFRS issued by the New Zealand Accounting Standards Board and the International Financial
Reporting Standards issued by the International Accounting Standards Board;
—implementing the necessary internal control to enable the preparation of a consolidated set of
financial statements that is free from material misstatement, whether due to fraud or error; and
—assessing the ability of the Group to continue as a going concern. This includes disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless
they either intend to liquidate or to cease operations or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objective is:
—to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error; and
—to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but it is not a guarantee that an audit conducted in
accordance with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is
located at the External Reporting Board (XRB) website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/
This description forms part of our independent auditor’s report.
KPMG
Wellington
25 August 2025
27 Chorus Annual Report 2025

The accompanying notes
are an integral part of these
consolidated financial statements.
Consolidated
income statement
For the year ended 30 June 2025
Note
2025
$M
2024
$M
Operating revenue91,014 1,010
Operating expenses
10(309)(310)
Earnings before interest, income tax, depreciation and amortisation 705 700
Depreciation1,7(390)(374)
Amortisation
2,3(84)(88)
Earnings before interest and income tax 231 238
Finance income 2 5
Finance expense4(212)(222)
Net earnings before income tax 21 21
Income tax expense14(17)(30)
Net earnings / (loss) for the year 4(9)
Earnings per share
Basic earnings / (loss) per share (dollars)170.01 (0.02)
Diluted earnings / (loss) per share (dollars)170.01(0.02)
Consolidated
statement of
comprehensive
income
For the year ended 30 June 2025
Note
2025
$M
2024
$M
Net earnings / (loss) for the year 4(9)
Other comprehensive income
Movements in effective cash flow hedges19(61)(12)
Amortisation of de-designated cash flow hedges transferred to Consolidated income
statement
194 5
Movement in cost of hedging reserve192(9)
Items that will be reclassified subsequently to Consolidated income statement when
specific conditions are met net of tax
(55)(16)
Net revaluation of land and buildings1 –7
Items that will not be reclassified subsequently to Consolidated income statement when
specific conditions are met net of tax
–7
Total comprehensive loss for the year net of tax (51)(18)
28 Chorus Annual Report 2025Consolidated financial statements

The accompanying notes
are an integral part of these
consolidated financial statements.
Consolidated
statement of
financial position
As at 30 June 2025
Note
2025
$M
2024
$M
Current assets
Cash and call deposits1581 45
Trade and other receivables11152 154
Derivative financial instruments191 1
Total current assets 234 200
Non-current assets
Derivative financial instruments19238 98
Trade and other receivables117 4
Customer acquisition assets371 67
Software and other intangible assets2140 142
Network assets15,016 5,126
Land and buildings1382 375
Total non-current assets 5,854 5,812
Total assets 6,088 6,012
Current liabilities
Trade and other payables12239 230
Income tax payable3–
Lease payable515 12
Debt4220 110
Total current liabilities excluding NIFF and Crown funding 477 352
National Infrastructure Funding and Financing (NIFF) securities6–160
Crown funding728 28
Total current liabilities 505 540
29 Chorus Annual Report 2025Consolidated financial statements

The accompanying notes
are an integral part of these
consolidated financial statements.
Note
2025
$M
2024
$M
Non-current liabilities
Trade and other payables1211 13
Deferred tax liability14378 386
Derivative financial instruments1960 72
Lease payable5147 159
Debt42,918 2,516
Total non-current liabilities excluding NIFF and Crown funding 3,514 3,146
National Infrastructure Funding and Financing (NIFF) securities6627 584
Crown funding7875 901
Total non-current liabilities 5,016 4,631
Total liabilities 5,521 5,171
Equity
Share capital16578 578
Reserves1,19267 322
Retained earnings (278)(59)
Tot al e quit y 567 841
Total liabilities and equity 6,088 6,012
The consolidated financial statements are approved and signed on behalf of the Board.
Consolidated
statement of
financial position
(continued)
As at 30 June 2025
Authorised for issue on 25 August 2025
Mark Cross
Chair
Kate Jorgensen
Chair, Audit & Risk Management Committee
30 Chorus Annual Report 2025Consolidated financial statements

The accompanying notes
are an integral part of these
consolidated financial statements.
Note
Share capital
$M
Revaluation
reserve
$M
Other reserves
$M
Retained
earnings
$M
Total
$M
Balance at 1 July 2023589265661431,063
Comprehensive income
Net loss for the year–––(9)(9)
Other comprehensive income
Movement in cash flow hedge reserve19––(12)–(12)
Amortisation of de-designated cash flow hedges transferred to
Income statement
19––5–5
Movement in cost of hedging reserve19––(9)–(9)
Movement in revaluation reserve1–7––7
Total comprehensive (loss) / income for the year net of tax–7(16)(9)(18)
Contributions by and (distributions to) owners:
Dividends
16–––(193)(193)
Share buy-back16(11)–––(11)
Total transactions with owners(11)––(193)(204)
Balance at 30 June 202457827250(59)841
Comprehensive income
Net earnings for the year–––44
Other comprehensive income
Movement in cash flow hedge reserve19––(61)–(61)
Amortisation of de-designated cash flow hedges transferred to
Income statement
19
––4–4
Movement in cost of hedging reserve19––2–2
Total comprehensive (loss) / income for the year net of tax––(55)4(51)
Contributions by and (distributions to) owners:
Dividends16–––(223)(223)
Total transactions with owners–––(223)(223)
Balance at 30 June 2025
578272(5)(278)567
Consolidated
statement of
changes in equity
For the year ended
30 June 2025
31 Chorus Annual Report 2025Consolidated financial statements

The accompanying notes
are an integral part of these
consolidated financial statements.
Note
2025
$M
2024
$M
Cash flows from operating activities
Cash was provided from / (applied to):
Receipts from customers 1,019 1,007
Payment to suppliers and employees (310)(334)
Interest paid(152)(165)
Interest received 2 5
Net cash flows provided from operating activities 559 513
Cash flows applied to investing activities
Cash was provided from / (applied to):
Purchase of network and intangible assets (397)(442)
Proceeds from sale of network and intangible assets31
Capitalised interest paid (2)(1)
Net cash flows applied to investing activities (396)(442)
Cash flows from financing activities
Cash was provided from / (applied to):
Payment of lease liabilities (14)(16)
Crown funding 4 12
Repayment of NIFF securities(170)–
Proceeds from debt 662 574
Repayment of debt (385)(468)
Repurchase of shares –(11)
Shares vested under LTI(1)–
Dividends paid (223)(193)
Net cash flows applied to financing activities (127)(102)
Net cash flows 36(31)
Cash at the beginning of the year45 76
Cash at the end of the year1581 45
Consolidated
statement of
cash flows
For the year ended
30 June 2025
32 Chorus Annual Report 2025Consolidated financial statements

The accompanying notes
are an integral part of these
consolidated financial statements.
Note
2025
$M
2024
$M
Net earnings / (loss) for the year 4(9)
Adjustment for:
Depreciation of network assets1420405
Amortisation of Crown funding7(30)(31)
Amortisation of software and other intangible assets251 57
Amortisation of customer acquisition assets337 35
Movements in tax 1417 30
Ineffective portion of changes in fair value of cash flow hedges4(4)(3)
Amortisation of non-cash finance expenses 4 4
NIFF securities (notional) interest453 47
Proceeds from sale of network and intangible assets(3)–
Other 75
556 540
Change in current assets and liabilities:
Decrease / (increase) in trade and other receivables111(5)
Increase / (decrease) in operating trade payables 122(22)
3(27)
Net cash flows from operating activities 559 513
Consolidated
statement of
cash flows
(continued)
Reconciliation of
net earnings/(loss) to
net cash flows from
operating activities
33 Chorus Annual Report 2025Consolidated financial statements

The accompanying notes
are an integral part of these
consolidated financial statements.
Debt
$M
Crown funding
$M
NIFF securities
$M
Lease payable
$M
Share capital
$M
Retained earnings
$M
Balance at 1 July 20232,528 948 697 181 589 143
Movements from financing cash flows
Payment of lease liabilities–––(16)––
Proceeds from debt57412––––
Repayment of debt
(468)–––––
Repurchase of shares––––(11)–
Dividends paid–––––(193)
Total changes from financing cash flows10612–(16)(11)(193)
Other cash flows
Interest paid on leases–––(11)––
Non-cash movements
Movements in fair value (including foreign exchange rates)
(12)–––––
Transaction costs and amortisation related to financing
4(31)––––
Notional interest
––47–––
Lease movements–––5––
Net loss for the year ended 30 June 2024
–––––(9)
Balance at 30 June 20242,62692974 4159578(59)
Movements from cash flows
Payment of lease liabilities–––(14)––
Proceeds from debt
6624––––
Repayment of debt(385)–(170)–––
Dividends paid–––––(223)
Total changes from financing cash flows2774(170)(14)–(223)
Other cash flows
Interest paid on leases–––(11)––
Non-cash movements
Movements in fair value (including foreign exchange rates)231–––––
Transaction costs and amortisation related to financing4(30)––––
Notional interest––53–––
Lease movements–––13––
Net earnings for the year ended 30 June 2025–––––4
Balance at 30 June 20253,138903627147578(278)
Consolidated
statement of
cash flows
(continued)
Reconciliation of
movements of liabilities and
equity to cash flows arising
from financing activities
34 Chorus Annual Report 2025Consolidated financial statements

Notes to the
consolidated
financial
statements
Reporting entity and statutory base
Chorus includes Chorus Limited together with its subsidiaries.
Chorus is New Zealand’s largest fixed line communications infrastructure business.
It maintains and builds a network predominantly made up of fibre and copper cables,
local telephone exchanges and cabinets.
Chorus Limited is a profit-oriented company registered in New Zealand under the
Companies Act 1993 and is a FMC Reporting Entity for the purposes of the Financial
Markets Conduct Act 2013. Chorus Limited was established as a standalone,
publicly listed entity on 1 December 2011, upon its demerger from Spark New
Zealand Limited (Spark, previously Telecom Corporation of New Zealand Limited).
The demerger was a condition of an agreement with National Infrastructure Funding
and Financing (previously Crown Infrastructure Partners Limited and Crown Fibre
Holdings) to enable Chorus Limited to provide the majority of the Crown’s Ultra-
Fast Broadband (UFB) network. Chorus Limited is listed and its ordinary shares are
quoted on the NZX main board equity security market (NZX Main Board) and on the
Australian Stock Exchange (ASX) and has bonds quoted on the NZX and ASX debt
markets. American Depositary Shares, each representing five ordinary shares (and
evidenced by American Depositary Receipts), are not listed but are traded on the
over-the-counter market in the United States.
These consolidated financial statements (financial statements) have been prepared in
accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP)
and Part 7 of the Financial Markets Conduct Act 2013. They comply with New Zealand
equivalents to International Financial Reporting Standards (NZ IFRS) as appropriate for
profit-oriented entities, and with International Financial Reporting Standards.
These financial statements are expressed in New Zealand dollars. All financial
information has been rounded to the nearest million, unless otherwise stated.
The measurement basis adopted in the preparation of these financial statements
is historical cost, modified by the revaluation of financial instruments, and land
and building assets as identified in the specific accounting policies below and the
accompanying notes.
Some comparatives have been re-presented to reflect the current year classification.
This has led to no impact on working capital, the consolidated statements of cash
flows, or equity.
Accounting policies and standards
Accounting policies that summarise the measurement basis used which are relevant
to the understanding of the financial statements are provided throughout the
accompanying notes.
The accounting policies adopted, and methods of computation have been applied
consistently throughout the periods presented in these financial statements.
In the current year, Chorus has applied new standards, amendments to standards
and interpretations that are effective for its annual reporting period commencing
1 July 2024. Their adoption has not had any material impact on the disclosures or
amounts reported in these financial statements. No new standards, amendments
or interpretations to existing standards that are not yet effective have been early
adopted by Chorus in these financial statements.
In May 2024, NZ IFRS 18 Presentation and Disclosure in Financial Statements which
replaces NZ IAS 1 Presentation of Financial Statements was issued and is effective
for reporting periods beginning on or after 1 January 2027 with early adoption
permitted. Chorus intends to early adopt this standard.
NZ IFRS 18 introduces a defined structure, requiring income and expenses to be
categorised as operating, investing, financing, income taxes and discontinued
operations. Other requirements include enhanced requirements for management-
defined performance measures (MPMs) and strengthened principles for aggregation
and disaggregation across the financial statements and notes. Chorus is currently
assessing the impact of NZ IFRS 18. While the standard does not change the
recognition or measurement of assets, liabilities, income or expenses, it is expected to
result in changes to the format and presentation of the consolidated income statement
and additional disclosures related to MPMs and disaggregation of financial information.
In June 2024, amendments to NZ IFRS 9 and NZ IFRS 7 were published effective for
reporting periods beginning on or after 1 January 2026. The amendments clarify
the date on which a financial asset or financial liability settled through an electronic
payment system is derecognised and provide an accounting policy option to allow
derecognition of a financial liability before it delivers cash on settlement date if certain
criteria are met. Chorus is currently evaluating the impact of these amendments.
Climate impact
In preparing the financial statements, management has considered climate-related
matters and disclosed as required when the effect of those matters is material in the
context of the financial statements taken as a whole. In the year ended 30 June 2025
there was no material impact of climate related matters.
35 Chorus Annual Report 2025
Notes to the consolidated financial statements

Accounting estimates and judgements
In preparing the financial statements, management has made estimates and assumptions about the
future that affect the reported amounts of assets and liabilities at the date of the financial statements
and the reported amounts of revenue and expenses during the period. Actual results could differ from
those estimates.
Estimates and assumptions are continually evaluated and are based on experience and other factors,
including macro-economic and market factors, and expectations of future events that may have an
impact on Chorus. All judgements, estimates, and assumptions are believed to be reasonable based
on the most current set of circumstances available to Chorus. The principal areas of judgement in
preparing these financial statements are set out below.
Network assets (note 1)
Assessing the carrying value of network assets for impairment considerations which includes assessing
the appropriateness of useful life and residual value estimates of network assets, the physical condition
of the asset, technological advances, regulation and expected disposal proceeds from the future sale
of the asset.
Land and buildings (note 1)
Land and buildings are recorded at fair value using a level 2 methodology in line with the fair value
hierarchy. Fair value relating to land and buildings is determined based on a periodic independent
valuation using a combination of both an optimised depreciated replacement cost and a market
valuation approach. The valuation technique applied to each asset is determined by the independent
valuer, with input and review by Chorus management who are familiar with the nature of the assets.
Valuations are performed every three years, or more frequently where indicators exist that the carrying
amount of the asset materially differs from its fair value at the end of the reporting period. This may
be the result of external factors (e.g. a volatile property market) or internal factors. In these instances
where indicators of material difference exist, a desktop valuation may be obtained to appropriately
adjust the carrying value of the assets. The underlying assumptions used in the valuation are reviewed
at each reporting date to ensure the carrying value is not materially different from the fair value.
Customer acquisition assets (note 3)
Assessing the carrying value of customer acquisition assets for impairment considerations which
includes assessing the appropriateness of useful life, contract terms, revenue and customer
connections data.
Leases (note 5)
A significant portion of lease contracts contain options for extension, which in turn require
management to apply judgement in assessing if these extensions are likely to be exercised.
National Infrastructure Funding and Financing (NIFF) securities (note 6)
On initial recognition, determining the fair value of the NIFF securities required Chorus to make
assumptions on expected future cash flows and discount rates based on future long dated swap curves.
The associated UFB build was completed in the year ended 30 June 2023.
Financial risk management (note 19 and 20)
Accounting judgements have been made in determining hedge designation and the fair value of
derivatives and borrowings. The fair value of derivatives and borrowings are determined based on
valuation models that use forward-looking estimates and market observable data, to the extent that it
is available.
Non-GAAP measures
Chorus uses non-GAAP measures that are not prepared in accordance with NZ IFRS. Chorus believes
these non-GAAP measures provide useful information to users of the financial statements to assist
in understanding the financial performance of Chorus. These measures are also used internally to
evaluate the performance of Chorus and monitored for compliance against debt covenants.
These measures should not be viewed in isolation or as a substitute for measures reported in
accordance with NZ IFRS as they are not uniformly defined or utilised by all companies in New Zealand
or the telecommunications industry.
Earnings before interest and income tax (EBIT) and earnings before interest, income tax,
depreciation and amortisation (EBITDA)
Chorus calculates EBIT by adding back finance expense and income tax to, and subtracting finance
income from, net earnings. EBITDA adds back depreciation and amortisation expense to EBIT.
A reconciliation of EBIT and EBITDA is provided below based on amounts taken from, and consistent
with, those presented in the financial statements.
Year ended 30 June
2025
$M
2024
$M
Net earnings / (loss) for the year reported under NZ IFRS 4(9)
Add back: income tax expense 1730
Add back: finance expense 212222
Subtract: finance income (2)(5)
EBIT 231238
Add back: depreciation 390374
Add back: amortisation 8488
EBITDA 705700
36 Chorus Annual Report 2025
Notes to the consolidated financial statements

Note 1 – Network assets, land and buildings
Network assets
In the Consolidated statement of financial position, network assets, except land and buildings, are stated
at cost less accumulated depreciation and any accumulated impairment losses. The cost of additions
to network assets and work in progress constructed by Chorus includes the cost of all materials used
in construction, direct labour costs specifically associated with construction, interest costs that are
attributable to the asset, resource management consent costs, and attributable overheads.
Repairs and maintenance costs are recognised in the Consolidated income statement as incurred. If the
useful life of the asset is extended or the asset is enhanced, then the associated costs are capitalised.
Land and buildings
Land and buildings are carried at a revalued amount. The revalued amount represents the fair value of
each land and building asset at the date of revaluation less any subsequent accumulated depreciation
and subsequent accumulated impairment losses. If an asset’s carrying amount is increased as a
result of a revaluation, the increase is recognised in the Consolidated statement of comprehensive
income and accumulated within the revaluation reserve in equity. An increase shall be recognised
in the Consolidated income statement to the extent it reverses a revaluation decrease of the same
asset previously recognised in profit or loss. If an asset’s carrying amount is decreased as a result
of a revaluation, the decrease is first recognised in the Consolidated statement of comprehensive
income (and the revaluation reserve) to the extent any credit balance exists in relation to that asset.
Any additional decrease in the asset’s carrying amount is recognised in the Consolidated income
statement as an expense. The attributable revaluation surplus remaining in the asset revaluation
reserve relating to land or buildings disposed of, net of any related deferred taxes, is transferred directly
to retained earnings on the derecognition of the relevant asset.
Using the last independent external valuation performed for the year ended 30 June 2023 as a base,
further work was performed to assess the value at balance date. Based on this review, using the QV
House Index, a decrease in land values given the volatile market was observed. However, the overall
impact of the decrease was 1.2%. The change in value was not considered material, therefore no
adjustment was recognised (30 June 2024: an increase in the land value of 2.6% was adopted based on
the QV House Index annual change in prices). There were no other changes to key inputs.
Estimating useful lives and residual values of network assets and buildings
The determination of the appropriate useful life for a particular asset requires management to make
judgements about, amongst other factors, the expected period of service potential of the asset,
the likelihood of the asset becoming obsolete as a result of technological advances, and the likelihood
of Chorus ceasing to use the asset in business operations.
Where an item of network assets or buildings comprises major components having different useful
lives, the components are accounted for as separate items of network assets or buildings.
Where the remaining useful lives or recoverable values have diminished due to technological,
regulatory or market condition changes, depreciation is accelerated. The assets’ residual values, useful
lives, and methods of depreciation are reviewed annually and adjusted prospectively, if appropriate.
Depreciation is charged on a straight-line basis to write down the cost of network assets to their
estimated residual value over their estimated useful life. Estimated useful lives are as follows:
Estimated useful life
Fibre cables20 – 30 years
Ducts, manholes and poles
20 – 50 years
Copper cables10 – 25 years
Cabinets5 – 20 years
Buildings10 – 50 years
Network electronics2 – 25 years
Other2 – 25 years
Other network assets include motor vehicles, test instruments, furniture and fittings, tools, and plant.
An item of network assets and any significant part is derecognised upon disposal or when no future
economic benefits are expected from its use. Where network assets are disposed of, the profit or loss
recognised in the Consolidated income statement is calculated as the difference between the sale
price and the carrying value of the asset.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rates as at the dates of the initial transactions.
Land and work in progress are not depreciated. Work in progress is reviewed on a regular basis to
ensure that costs represent future assets.
37 Chorus Annual Report 2025
Notes to the consolidated financial statements

Note 1 – Network assets, land and buildings continued
30 June 2025
Fibre
cables
$M
Ducts, manholes,
and poles
$M
Copper
cables
$M
Cabinets
$M
Network
electronics
$M
Right of use
assets
$M
Other
$M
Work in
progress
$M
Land and
buildings
$M
Total
$M
Gross carrying amount
Balance at 1 July 20242,9263,3652,4307651,91025030915937712,491
Additions10195287812713110444
Disposals(1)–(5)–(2)(2)(3)––(13)
Transfers from work in progress–––––––(122)–(122)
Other–––––––(4)–(4)
Balance at 30 June 20253,0263,4602,4277731,98626031316438712,796
Accumulated depreciation–
Balance at 1 July 2024(1,227)(922)(2,322)(560)(1,622)(110)(225)–(2)(6,990)
Depreciation(139)(90)(75)(16)(71)(13)(13)–(3)(420)
Disposals––5–223––12
Balance at 30 June 2025(1,366)(1,012)(2,392)(576)(1,691)(121)(235)–(5)( 7, 3 9 8 )
Net carrying amount1,6602,44835197295139781643825,398
38 Chorus Annual Report 2025
Notes to the consolidated financial statements

Note 1 – Network assets, land and buildings continued
30 June 2024
Fibre
cables
$M
Ducts, manholes,
and poles
$M
Copper
cables
$M
Cabinets
$M
Network
electronics
$M
Right of use
assets
$M
Other
$M
Work in
progress
$M
Land and
buildings
$M
Total
$M
Gross carrying amount
Balance at 1 July 20232,7973,2792,42674 81,83224429917735712,159
Additions12987417806129414443
Disposals–(1)––(2)–(2)––(5)
Transfers from work in progress–––––––(116)–(116)
Net revaluations – OCI––––––––77
Other–––––––4(1)3
Balance at 30 June 20242,9263,3652,4307651,91025030915937712,491
Accumulated depreciation
Balance at 1 July 2023(1,092)(842)(2,248)(543)(1,554)(96)(214)––(6,589)
Depreciation(135)(80)(74)(17)(70)(14)(13)–(2)(405)
Disposals––––2–2––4
Balance at 30 June 2024(1,227)(922)(2,322)(560)(1,622)(110)(225)–(2)(6,990)
Net carrying amount1,6992,443108205288140841593755,501
There are no restrictions on Chorus’ network assets or any network assets pledged as securities for
liabilities. Transfers from work in progress are disclosed as additions by asset class in the year they occur.
At 30 June 2025 the contractual commitments for acquisition and construction of the network assets
was $26 million (30 June 2024: $53 million).
Land and buildings at historical cost
If land and buildings were stated on an historical cost basis, the amounts would be as follows:
Year ended 30 June
2025
$M
2024
$M
Land and buildings (at cost)210200
Buildings accumulated depreciation(118)(115)
Net carrying amount9285
Crown funding
Chorus received funding from the Crown to finance the capital expenditure associated with the
development of the UFB network and continues to receive funding for other services. Where funding is
used to construct assets, it is offset against depreciation over the life of the assets constructed.
Refer to note 7 for information on Crown funding.
39 Chorus Annual Report 2025
Notes to the consolidated financial statements

Note 1 – Network assets, land and buildings continued
Impairment
The carrying amounts of non-financial assets including network assets, land and buildings, software
and other intangibles, and customer acquisition assets are reviewed at the end of each reporting
period for any indicators of impairment.
If any such indication exists, the recoverable amount of the asset is estimated. An impairment loss is
recognised in earnings whenever the carrying amount of an asset exceeds its estimated recoverable
amount. Should the conditions that gave rise to the impairment loss no longer exist, and the assets
are no longer considered to be impaired, a reversal of an impairment loss would be recognised
immediately in earnings.
The recoverable amount is the greater of an asset’s value in use and fair value less costs to sell. Chorus’
assets do not generate independent cash flows and are therefore assessed from a single cash-
generating unit perspective.
Capitalised interest
Finance costs are capitalised on qualifying items of network assets and software assets at an
annualised rate of 5.65% (30 June 2024: 5.80%). Interest is capitalised over the period required to
complete the assets and prepare them for their intended use. In the current year finance costs totalling
$2 million (30 June 2024: $1 million) have been capitalised against network assets and software assets.
Right of use assets
A right of use asset is recognised on commencement of a lease. The right of use asset is initially
measured at cost, which is made up of the initial lease liability amount adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate
of costs to remove the underlying asset or to restore the underlying asset or the site on which it is
located, less any lease incentives received.
The right of use asset is subsequently depreciated using the straight-line method until the assumed
end of the lease term. The right of use asset is periodically adjusted for certain remeasurements of the
lease liability. Estimated useful lives are as follows:
Estimated useful life
Fibre cables8 – 21 years
Ducts, manholes and poles7 – 25 years
Property5 – 25 years
Movements in right of use assets for the period are presented below:
Fibre
cables
$M
Ducts, manholes,
and poles
$M
Property
$M
Total
$M
Balance at 1 July 20236 48 94 148
Additions
–4 1 5
Depreciation charge(1)(4)(8)(13)
Balance at 30 June 20245 48 87 140
Additions7 2312
Depreciation charge
(1)(5)(7)(13)
Balance at 30 June 202511 4583139
Property exchanges
Chorus has leased exchange space and commercial co-location space owned by Spark which is subject
to lease arrangements (included within right of use assets). Chorus in turn leases exchange space and
commercial co-location space owned by Chorus to Spark under an operating lease arrangement.
40 Chorus Annual Report 2025
Notes to the consolidated financial statements