Chorus Limited · NZX:CNU
Chorus — Shareholder Meeting (October 2015)
28 slides from Chorus's shareholder meeting presentation, Oct 27, 2015
Slide 1: Annual Meeting 2015
Annual Meeting 2015 27 October 2015 / PAGE 1
Slide 2: Agenda
Agenda > Chairman’s introduction and address, Patrick Strange > CEO address, Mark Ratcliffe > Resolutions > Shareholder discussion and questions > Afternoon tea / PAGE 2
Slide 3: Your directors
Your directors Patrick Strange Jon Hartley Prue Flacks Murray Jordan Mark Ratcliffe Keith Turner Anne Urlwin Clayton Wakefield / PAGE 3
Slide 4: Chorus Executive team
Chorus Executive team Mark Ratcliffe Ed Beattie Ian Bonnar Andrew Carroll Chief Executive Officer GM Infrastructure GM Corporate Relations Chief Financial Officer Tim Harris, Irene Lovejoy Vanessa Oakley Paula Earl-Peacock Executive Assistant General Counsel & Company Secretary GM Human Resources Ch
Slide 5: Formalities
Formalities > Notice of meeting > Quorum > Proxies / PAGE 5
Slide 6: Patrick Strange, Chairman
Patrick Strange Chairman / PAGE 6
Slide 7: Broadband: The 4th utility
Broadband: The 4th utility / PAGE 7
Slide 8: Regulatory history vs share price
Regulatory history vs share price > Chorus’ share price performance since demerger in 2011 has been dominated by regulatory decisions and processes Commission Commission draft UCLL releases benchmarking further draft FPP decision Commission Commission Commission final UBA final UCLL + releases draft
Slide 9: Mark Ratcliffe, Chief Executive
Mark Ratcliffe Chief Executive / PAGE 9
Slide 10: Regulatory impact overshadows investment
Regulatory impact overshadows investment FY15 v FY14 change > Net Profit After Tax of $91 million 39% > EBITDA of $602 million 7% > Revenue of $1,006 million 5% > Total fixed line connections increased to 1,794,000 1% > Broadband connections increased to 1,207,000 4% > Better broadband rollouts on t
Slide 11: Reshaping our business
Reshaping our business Expenses change year-on-year > 100+ initiatives; emphasis on restricting 8 860 Employees discretionary spend 840 6 focus on cash rather than value 820 proactive maintenance and IT separation 4 800 capex deferred 780 2 no dividend 760 0 740 FY13* FY14 FY15 Trade-offs from
Slide 12: UFB build on track
UFB build on track FY16: expect to complete Waiuku, Rotorua, Queenstown / PAGE 12
Slide 13: World class networks
World class networks > New Zealand fibre coverage moving past OECD average UFB Coverage goal > Completion of current fibre build should put NZ comfortably in OECD Average top 10 > VDSL coverage remains in the top 10 of OECD countries / PAGE 13
Slide 14: Rapid fibre adoption
Rapid fibre adoption 100% Technology adoption in NZ (% of households) Fibre uptake based on % addresses covered, given incremental build 90% 80% DSL/broadband 70% 75% 60% Sky TV 51% 50% 40% 30% Fibre 20% 15% 10% 8% 3% 0% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Years from launch
Slide 15: Fastest fibre growth in OECD
Fastest fibre growth in OECD Annual growth in fibre subs 300 250 200 150 100 50 0 -50 / PAGE 15
Slide 16: 80 fold increase in fibre crews
80 fold increase in fibre crews 2013 September 2015 / PAGE 16
Slide 17: More customers buying premium fibre
More customers buying premium fibre Mass market fibre by plan type - Sept > 39% of end users now on premium plans (100mbps or higher) > About half of new connections sold are premium plans <100Mbps 100Mbps 200Mbps Gigatown Education NGA Business / PAGE 17
Slide 18: Large fibre order pipeline
Large fibre order pipeline > Nearly 18,000 more UFB orders in process > 67% are scheduled for a future date or awaiting a date from the customer > The rest are mostly complex installations requiring consent and additional civil construction SDU = single dwelling unit P2P = point to point MDU = multi
Slide 19: CEO’s scorecard
CEO’s scorecard UFB and RBI • Consistently meeting our commitments • Capex well controlled • Huge demand for fibre • Gigatown won Supreme Award for Marketing Customer experience • Huge fibre demand putting pressure on the whole industry • More crews required • End to end process improvements needed
Slide 20: Resolutions
Resolutions / PAGE 20
Slide 21: Ordinary business: Resolution 1
Ordinary business: Resolution 1 > That Jon Hartley be re-elected as a director of Chorus. / PAGE 21
Slide 22: Ordinary business: Resolution 2
Ordinary business: Resolution 2 > That Prue Flacks be re-elected as a director of Chorus. / PAGE 22
Slide 23: Ordinary business: Resolution 3
Ordinary business: Resolution 3 > That Patrick Strange be elected as a director of Chorus. / PAGE 23
Slide 24: Ordinary business: Resolution 4
Ordinary business: Resolution 4 > That Murray Jordan be elected as a director of Chorus. / PAGE 24
Slide 25: Ordinary business: Resolution 5
Ordinary business: Resolution 5 > That the Board be authorised to fix the fees and expenses of KPMG as auditor. / PAGE 25
Slide 26: Shareholder discussion and questions
Shareholder discussion and questions / PAGE 26
Slide 27: Disclaimer
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, regulation and the regulatory environment, strategies, capital expe
Slide 28: Thank you for attending
Thank you for attending / PAGE 28