Chorus Limited Level 9 Datacom House 68-86 Jervois Quay P O Box 632 Wellington New Zealand

STOCK EXCHANCE ANNOUNCEMENT Email: [email protected]

16 May 2013

Presentation and build update 16 May 2013

Please find attached presentation.

ENDS

For further information:

Brett Jackson Investor Relations Manager Mobile: +64 (27) 488 7808 Email: [email protected]

Chorus fibre lab visit, 16 May 2013

Disclaimer

Forward-Looking Statements

This presentation may contain forward-looking statements regarding future events and the future financial performance of Chorus, including forward looking statements regarding industry trends, strategies, capital expenditure, the construction of the UFB network, credit ratings and future financial and operational performance. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond Chorus' control, and which may cause actual results to differ materially from those expressed in the statements contained in this presentation. No representation, warranty or undertaking, express or implied, is made as to the fairness, accuracy or completeness of the information contained re contained, referred to or reflected in this presentation ferred or any , or information provided orally or in writing in connection with it. Please read this presentation in the wider context of material previously published by Chorus and released through the NZSX and ASX.
Except as required by law or the listing rules of the NZSX and the ASX, Chorus is not under any obligation to update this presentation at any time after its release to you, whether as a result of new information, future events or otherwise.

Not an offer of securities

None of the information contained in this presentation constitutes an offer of, or a proposal or an invitation to make an offer of, any security (and, in particular, does not constitute an offer of securities in the United States of Ame ca ^o o, ^o ^o ^e accou ^o be ^e ^o , U S pe so ^s (as de ed egu ^a ^o S ^u de ^e Secu es ^c rica or to, or for the account or benefit of, U.S. persons defined in Regulation S under the Securities Act of 1933, as amended ). Distribution of this presentation (including an electronic copy) may be restricted by law and, if you come into possession of it, you should observe any such restrictions. These materials are provided for information purposes only.

Investment Advice

This presentation does not constitute investment advice or a securities recommendation and has not taken into account any particular investor's investment objectives or other circumstances. Investors are encouraged to make an independent assessment of Chorus.

DEPLOYMENT

UFB rollout progress

On track for Year 2 cumulative target of 149,000 premises
Chorus build complete for 128,790 premises at 30 April
March most productive month yet with 16,000 premises passed
CFH testin gp p is on com pletion of "area units" with multi ple cabinets

www.chorus.co.nz/network-upgrade-map

Fibre network architecture

Two distribution architectures (current mode)

Where new duct required or space in existing duct install microduct

Comprises 26 tubes enabling air blown fibre to ~1km.Fibre cost deferred until connection.C l fb (8 2 f b Can scale fibre (8 to 1 fibres per microduct) if more connections needed in future.

Where there is existing duct, but no space for microduct install microduct, 'lean' fixed fibre

Fibre hauled into existing duct, where space is available, to extend from cabinet past premises

Evolution: Air Blown Fibre Access Terminal

• Adds a network integration point closer to premises
• Enables use of single 26-way microduct, reducing material and civil costs (can re -use more existing duct)
•Example shows saving of 1.3km in ducting
•Reduces provisioning from >1km to ~440m

UFB capex elements

l U F B c o m m n a u c a p e x	> C i i l t > k i f i > O h N t t v c o s s e w o r s p e c c e r t d l l i i c o s s j t t n g ▪ r p r o e c m a n a g e m e n ▪ l i t h i ▪ m a e r a s t d l i i t e n c n g ▪ r c o n s g n e m a e a s ▪ r h l ( ( f f b b d ) i i i t l l a u n g e e g g r r e e u c t t ▪ a e a s o ▪ r , b d l l k i i t t o u n a r y n s a n g n e w o r ▪ t i c o m p o n e n s t t t r e n s a e m e n ▪ l d i i f f i ▪ s p c n g a n t r a c ▪ j j i i t t i i o n n g t m a n a g e m e n t t i b i ▪ e s n g t a r o r s s ▪
l l U F B 2 a y e r c a p e x	> L 2 a y e r h i i t t a g g r e g a o n s w c ▪ h l f G P O N s e ▪ l d G P O N i n e c a r s ▪ l i t t s p e r ▪

l
U
F
B
c
o
m
m
n
a
u
c
a
p
e
x

>
C
i
i
l
t
>
k
i
f
i
>
O
h
N
t
t
v
c
o
s
s
e
w
o
r
s
p
e
c
c
e
r
t
d
l
l
i
i
c
o
s
s
j
t
t
n
g
▪
r
p
r
o
e
c
m
a
n
a
g
e
m
e
n
▪
l
i
t
h
i
▪
m
a
e
r
a
s
t
d
l
i
i
t
e
n
c
n
g
▪
r
c
o
n
s
g
n
e
m
a
e
a
s
▪
r
h
l
(
(
f
f
b
b
d
)
i
i
i
t
l
l
a
u
n
g
e
e
g
g
r
r
e
e
u
c
t
t
▪
a
e
a
s
o
▪
r
,
b
d
l
l
k
i
i
t
t
o
u
n
a
r
y
n
s
a
n
g
n
e
w
o
r
▪
t
i
c
o
m
p
o
n
e
n
s
t
t
t
r
e
n
s
a
e
m
e
n
▪
l
d
i
i
f
f
i
▪
s
p
c
n
g
a
n
t
r
a
c
▪
j
j
i
i
t
t
i
i
o
n
n
g
t
m
a
n
a
g
e
m
e
n
t
t
i
b
i
▪
e
s
n
g
t
a
r
o
r
s
s
▪

l
l
U
F
B
2
a
y
e
r
c
a
p
e
x

>
L
2
a
y
e
r
h
i
i
t
t
a
g
g
r
e
g
a
o
n
s
w
c
▪
h
l
f
G
P
O
N
s
e
▪
l
d
G
P
O
N
i
n
e
c
a
r
s
▪
l
i
t
t
s
p
e
r
▪

ONT

INSTALLATION

Co ect ^o ^s to p ^e ses nnections premises

RFI underway for provisioning work
Too early to accurately assess costs given volumes
Additional work being done in-home to support RSPs
New Government code for access to multi-unit complexes

The copper lead-in is replaced with a fibre lead-in.

existing ducts if in place, or new duct is installed.

Fibre is blown from the cabinet to the home and connected at the cabinet.

A hybrid fibre-copper cable is run from the ETP to the internal wall where the Optical Network Terminal (ONT) is to be located.

The other end of the fibre is connected at the External Termination Point (ETP) on the side of the house

Fibre connectors are inspected and the ONT is programmed and then connected.

IN THE HOME

UFB uptake

2,750 connections on UFB network at 30 April
Excludes connections on Chorus' existing fibre network
Telecom entered residential market end March
Migration of existing Chorus subdivisions to UFB has begun

Technology shifts don't happen overnight

Top p 5 reasons to take up fibre

Residential

Source: Colmar Brunton surveys, 2012

Fibre is all about bandwidth

Bandwidth demand is being fuelled by proliferation of internetenabled devices
▪ our research shows on average three connectable devices per home: smart phones, tablets, e-readers, internet TVs
Globally, online data traffic is increasing exponentially as people do more online
▪ NZ d ffi f i 500% data traffi c forecast to increase b etween2011- 2016 (Cisco) with internet video 74% of consumer traffic
▪Forecast traffic per household to grow from 9GB to 44GB

TV is prime connection point

Wifi modems and consumer devices mean home connection point is moving away from a static desktop
New TVs and decoder boxes ethernet capable
Op () tical Network Terminal (ONT ) also has multicast port for dedicated delivery

New Chorus fibre plans

Two new fibre plans introduced for RSP testing to complement entry level 30/10 Mbps service
50/10Mbps service starts at \$40.20
▪100/10Mbps service starts at \$46.95
▪ b d UFB i b kbased on price boo

VDSL a stepping stone to fibre

Available to about two-thirds of Chorus lines today
Uptake limited to 3 000 lines with limited 3,000 with commercial pricing
Re-pricing to \$21.46 under UBA
Fosters bandwidth demand ahead of fibre roll out
E h fi d li ff i>nhances fixed lineoffering
Ability to stop new VDSL sales from mid 2015 for completed UFB areas
Can withdraw VDSL service if availability affects Chorus UFB uptake

AI assistant

CHORUS LIMITED Investor Presentation 2013