Chorus Limited · NZX:CNU
Chorus — Shareholder Meeting (November 2017)
22 slides from Chorus's shareholder meeting presentation, Nov 1, 2017
Slide 1: Annual Meeting 1 November 2017
Annual Meeting 1 November 2017
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: Fibre extended to 87% of population
FIBRE EXTENDED TO 87% OF POPULATION > The Government announced extensions to the UFB1 rollout in January and September 2017 ▪ fibre to reach another ~12% of population across ~370 towns and rural communities ▪ Chorus has increased its share of these additional UFB phases Chorus rollout schedule – in
Slide 5: New Zealand is taking fibre further
NEW ZEALAND IS TAKING FIBRE FURTHER… > Ultra-fast broadband (UFB): a Government objective ▪ original objective (UFB1): fibre to premises covering 75% of population by 2020 ▪ subsequent agreements have extended coverage goal to 87% of population by the end of 2022 > From Auckland, New Zealand’s large
Slide 6: Example of reach of UFB rollout
EXAMPLE OF REACH OF UFB ROLLOUT > UFB deployment areas ▪ UFB1: Greymouth only ▪ UFB2: Hokitika and Runanga ▪ UFB2+: Ahaura, Blackball, Dobson, Kaniere, Kumara, Moana, Taylorville
Slide 7: Transition to a regulated utility model
TRANSITION TO A REGULATED UTILITY MODEL > Existing copper regulatory framework uses benchmarking and Total Service long Run Incremental Cost > Government policy preference to introduce a utility-style building block methodology for fibre networks > Draft legislation introduced to Parliament in Augus
Slide 8: FY17 result overview
FY17 RESULT OVERVIEW 8 See the Annual Report 2017 for the detailed calculation.
Slide 9: Your Board
YOUR BOARD (Chairman) (Deputy Chairman)
Slide 10: CEO address: Kate McKenzie
CEO address: Kate McKenzie 10
Slide 11: Connection speed
CONNECTION SPEED > With 53% of broadband connections now on VDSL or fibre, average broadband speed has increased from 33Mbps in Sept 16 to 59Mbps in Sept 17. 1,400,000 60 1,200,000 50 1,000,000 Average Connection Speed (Mbps) 40 Active Connections 800,000 30 600,000 20 400,000 10 200,000 0 0 May-11
Slide 12: Fixed line networks deliver lowest cost per GB
FIXED LINE NETWORKS DELIVER LOWEST COST PER GB > 51% increase in Chorus network traffic at ~9pm between June 2016 and June 2017 Chorus network traffic by time of day 12
Slide 13: Unlimited data becoming the norm
UNLIMITED DATA BECOMING THE NORM > 62% of connections are now estimated to be on unlimited data Share of residential connections by data cap 100% 6% 5% 8% 90% Unlimited 33% 80% 51% 100GB or more 70% 62% 60% 50GB to 100GB 50% 40% 20GB to 50GB 30% 5GB to 20GB 20% 10% Under 5GB 0% 2012 2013 2014 2015 2
Slide 14: Slide 14
Slide 15: Fibre rollout and uptake
FIBRE ROLLOUT AND UPTAKE > 585,000 premises passed (FY17:581,000) out of > 40,000 new fibre connections built in Q1, our ~1,054,000 to be passed by the end of 2022 highest ever quarter for build 784,000 customers now able to connect Chorus fibre connection activity - all NZ 14 days weighted aver
Slide 16: Creating opportunities to grow
CREATING OPPORTUNITIES TO GROW > Identifying new open access business opportunities ▪ fixed line and 5G: we see a complementary future ▪ strong demand for trial data centre; more sites planned ▪ national backhaul contract with 2degrees ▪ emerging demand for smart locations (non-building access point
Slide 17: Transforming customer experience & cost
TRANSFORMING CUSTOMER EXPERIENCE & COST > We’re reshaping Chorus to lift customer experience and reduce cost ▪ new executive structure ▪ emphasis on end-to-end customer experience to simplify systems and processes ▪ trialling new fibre migration methods with the aim of reducing customer effort to <1
Slide 18: Resolutions
Resolutions ‘@ Chorus
Slide 19: Resolutions
RESOLUTIONS • Resolution 1: That Mr Jon Hartley be re-elected as a Chorus director. • Resolution 2: That Ms Prue Flacks be re-elected as a Chorus director. • Resolution 3: That Mr Jack Matthews be elected as a Chorus director. • Resolution 4: That Ms Kate McKenzie be elected as a Chorus director • R
Slide 20: Shareholder questions
Shareholder questions 20
Slide 21: Disclaimer
Disclaimer This presentation: – Is provided for general information purposes and does not constitute investment advice or an offer of or invitation to purchase Chorus securities. – Includes forward-looking statements. These statements are not guarantees or predictions of future performance. They inv
Slide 22: Annual Meeting 1 November 2017
Annual Meeting 1 November 2017