Chorus : Q2 FY21 Update Cover

Chorus Limited

Level 10, 1 Willis Street

P O Box 632

Wellington

New Zealand

Email: [e-mail]

STOCK EXCHANGE ANNOUNCEMENT

26 January 2021

Q2 FY21 overview

Fibre uptake increased to 63% with the UFB rollout now 92% complete

Fibre broadband connections increased by 29k (Q1 FY21: +33k; Q2 FY20: +36k)

• 1Gbps connections increased 8k
• fibre uptake across the completed UFB footprint grew from 62% to 63%
• fibre uptake in UFB1 areas is at 66%, with growth strongest in Kapiti/Wellington and Waiheke Island
• recently completed UFB2 townships include Matapouri, Taipa Bay Mangonui, Taumarunui, Karapiro, Hunterville, Cheviot, Amberley, Lawrence
• average monthly data usage on fibre increased to 460GB, up from 456GB in Sept (including upstream traffic)

Copper broadband and voice connections declined by 50k (Q1 FY21: -57k;Q2 FY20: -48k)

Total broadband connections declined by 10k to 1,183,000* (Q1 FY21: -13k;Q2 FY20: no change)

• Q2 reduction in broadband reflects combined seasonal effect of student holiday disconnections (e.g. fibre uptake reduced in Dunedin), inertia selling campaigns by fixed wireless providers and COVID-19 impact on net migration
• Statistics NZ notes COVID border restrictions have reduced population growth significantly, with the gain from migration reducing from 6,000 a month pre-COVID to ~600 a month

Total fixed line connections declined by 21k to 1,369,000* (Q1 FY21: -25k;Q2 FY20: -12k)

*totals exclude the 11,000 broadband connections Chorus is currently providing free to student households

For more detail, please see the Q2 FY21 Connections Update presentation attached.

Authorised by:

David Collins

Chief Financial Officer

ENDS

For further information:

Steve Pettigrew

Head of External Communications

Mobile [phone]

Email:[e-mail]

Brett Jackson

Investor Relations Manager

Phone: [phone]

Mobile: [phone]

Email: [e-mail]