Chorus Limited · NZX:CNU
Chorus — Shareholder Meeting (November 2016)
29 slides from Chorus's shareholder meeting presentation, Nov 1, 2016
Slide 1: Annual Meeting 1 November 2016
Annual Meeting 1 November 2016
Slide 2: Agenda
AGENDA Chairman’s Introduction & Address CEO Address Resolutions Shareholder Discussion & Questions Morning tea
Slide 3: Your Board
YOUR BOARD (Chairman) (Deputy Chairman)
Slide 4: 2016 Performance
2016 PERFORMANCE EBITDA* NET PROFIT TOTAL SHAREHOLDER AFTER TAX RETURN FY16 FY15 FY16 Fyis FY16 FY15 FIXED LINE BROADBAND CONNECTIONS CONNECTIONS 1,226,000 FY16 FY15 FY16 Fyis FY16 Fyi5
Slide 5: New Zealand's internet is about to leave us in the dust
New Zealand’s internet is about to leave us in the dust Time to put the UK in the digital fast lane SEPTEMBER 14, 2016 11:49AM 50% of people think upgrading Britain's national broadband network should be the Government's highest infrastructure priority. But only 2% of UK households could access fibr
Slide 6: Your Board
YOUR BOARD (Chairman) (Deputy Chairman)
Slide 7: CEO Address Mark Ratcliffe
fami | CEO Address Mark Ratcliffe
Slide 8: Income Statement
INCOME STATEMENT FY16 FY15 $m $m Operating revenue 1,008 1,006 Operating expenses (414) (404) > FY16 EBITDA impacted by five Earnings before interest, tax, depreciation 594 602 and a half months of initial and amortisation (EBITDA) benchmark pricing Depreciation and amortisation (327) (324) Earnings
Slide 9: Connections
CONNECTIONS Fixed line connections 30 Sept 30 June 31 March 2016 2016 2016 Fixed line connections 16,000 Baseband copper 1,167,000 1,221,000 1,273,000 Naked copper (UBA/VDSL) 204,000 197,000 190,000 UCLL 103,000 108,000 112,000 SLU/SLES 2,000 2,000 2,000 Baseband IP 9,000 9,000 10,000 Data services
Slide 10: Fibre Productivity
FIBRE PRODUCTIVITY Chorus fibre connection activity - all NZ 20000 ~38,000 fibre connections 18000 built in Q1 16000 14000 12000 10000 8000 6000 4000 2000 0 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Connections built and activated Additi
Slide 11: Monthly Fibre Performance
THLY FIBR RFORMANCE National Fibre Flash Update (2) Apr May June July August Sept 2016 2016 2016 2016 2016 2016 Connection orders received!?) 15,928 18,544 16,564 16,499 16,894 14,821 Connections completed) 11,403 12,820 12,064 13,630 14,366 14,344 (Connections in UFB area) (10,173) (11,616) (10,954
Slide 12: NZ is switching on to streaming
NZ IS SWITCHING ON TO STREAMING
Slide 13: Bandwidth demand is surging
BANDWIDTH DEMAND IS SURGING Average monthly data usage (GB) per connection 250 FY18 200 forecast 170 GB 150 117 GB 103 GB 100 50 0 Dec-15 Mar-16 Jun-16 Sep-16 Copper Fibre Average 13
Slide 14: Kiwis are ditching datacaps
KIWIS ARE DITCHING DATACAPS > Almost half of NZ households now have unlimited data plans
Slide 15: Dedicated capacity matters
DEDICATED CAPACITY MATTERS • Fixed line networks provide dedicated • Wireless networks share capacity, so capacity to the home. speeds slow as more users connect. Especially at ‘rush hour’.
Slide 16: Fibre is the future
FIBRE IS THE FUTURE “If you have a look at where society’s going, the difficulties we have with healthcare and education and you look at what’s coming down the pike for industry, it’s difficult to imagine how you could run such an economy without ultrafast broadband. It’s going to be impossible. And
Slide 17: Connection speed
CONNECTION SPEED connection speeds are subject to factors such as service choice, modem type and home wiring About 60% of households could Connection Speed Histogram - September 2016 120,000 already get faster broadband than they currently have by switching ADSL ADSL2+ VDSL2 GPON 100,000 to VDSL o
Slide 18: Have you got the best available broadband?
HAVE YOU GOT THE BEST AVAILABLE BROADBAND? 18
Slide 19: Slide 19
Slide 20: Slide 20
Slide 21: Resolutions
Resolutions ‘@ Chorus
Slide 22: Ordinary business: Resolution 1
Ordinary business: Resolution 1 • That Anne Urlwin be re-elected as a director of Chorus.
Slide 23: Ordinary business: Resolution 2
Ordinary business: Resolution 2 • That Keith Turner be re-elected as a director of Chorus.
Slide 24: Ordinary business: Resolution 3
Ordinary business: Resolution 3 • That Mark Cross be elected as a director of Chorus.
Slide 25: Ordinary business: Resolution 4
Ordinary business: Resolution 4 • That the maximum aggregate remuneration able to be paid to all directors (in their capacity as directors) be increased by $49,500 from $1,100,000 to $1,149,500 per annum.
Slide 26: Ordinary business: Resolution 5
Ordinary business: Resolution 5 • That the Board be authorised to fix the fees and expenses of KPMG as auditor.
Slide 27: Shareholder Discussion & Questions
Shareholder Discussion & Questions
Slide 28: Disclaimer
Disclaimer • 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 expenditure, the construction o
Slide 29: Annual Meeting 1 November 2016
Annual Meeting 1 November 2016