Chorus Limited (NS) — Capital/Financing Update 2018

Oct 10, 2018

==> picture [201 x 22] intentionally omitted <==

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

Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

11 October 2018

Chorus Q1 FY19 Connections Update

The Q1 period to 30 September 2018 saw broadband demand continue to grow strongly in Chorus fibre areas, with UFB uptake reaching 50% following a record quarter for new fibre installations.

• Total fixed line connections declined by 19k to 1,507,000 in Q1 (Q4 FY18: -17k)

• In Chorus fibre areas, the decline in copper lines with no broadband is being largely offset by strong broadband growth. The majority of the decline in total connections was in other fibre company zones as expected given fibre demand.

• Total broadband connections grew by 3k to 1,190,000 (Q4 FY18: +3k).

• Fibre demand was strong through Q1, with a record 50,000 fibre installations completed.

• UFB uptake grew to 50% from 45% (30 June) within Chorus’ completed areas.

• 1Gbps connections grew 20% to 36,000.

• The surge in data demand continues with 221GB monthly average household data usage in September, up from 210GB in June, and fibre users now averaging 307GB monthly, up from 297GB in June.

ENDS

For further information:

Nathan Beaumont

Stakeholder Communications Manager Phone: +64 4 896 4352 Mobile: +64 (21) 243 8412 Email: nathan.beaumont@chorus.co.nz

Brett Jackson

Investor Relations Manager Phone: +64 4 896 4039 Mobile: +64 (27) 488 7808 Email: brett.jackson@chorus.co.nz