2013 chorus annual report · 1,784,000fixed line connections p2 a good operating result p4...
TRANSCRIPT
Chorus accepted in FTSE4Good Index
(Corporate Sustainability, page 4)
For a second year, Chorus received
Aon Hewitt Employers Accreditation
$171mNet profit after tax
NPAT
HIGHLIGHTS
$663mEarnings before interest, income tax, depreciation and amortisation
EBITDA
25.5ANNUAL DIVIDEND
Cents per share (see page 7 for details)
18%UFB PROGRAMME
UFB completion
1,784,000FIXED LINE CONNECTIONS
P2 A good operating result
P4 Management Commentary
P18 Financial Statements
P42 Governance & Disclosures
2013Chorus Annual Report
2
A good operating result
Report from chairman Sue Sheldon and CEO Mark Ratcliffe
Ultra-fast broadband build on track but regulatory headwinds and capital expenditure demands remain
Dear shareholder
The financial year ended 30 June 2013
was Chorus’ first full year of operation
as New Zealand’s largest wholesale
only fixed line communications
infrastructure company.
Revenue was $1,057m for the full financial
year, and our operational costs have
continued to increase as expected to
$394m. This resulted in earnings before
interest, depreciation, tax and amortisation
(EBITDA) of $663m and net profit after tax
(NPAT) of $171m for the period. Prior period
comparisons are challenging as this was
the first full year of operation for Chorus
and a normalised comparison is included
to assist shareholders.
Chorus has declared dividends totalling
25.5 cents per share for the financial year.
This has been a good operating result,
with both the Ultra-Fast Broadband (UFB)
and Rural Broadband Initiative (RBI)
programmes slightly ahead of target,
a small increase in the number of access
lines and a 6% increase in copper
broadband connections.
On the downside, capital expenditure
demands continue to be significant and
regulatory headwinds remain. We are
pleased with the principled approach the
Crown is taking to the regulatory review.
However, we note that while the outcome
of the Government’s regulatory review is
uncertain, all potential options contained
within the discussion paper imply reduced
future earnings for Chorus. The discussion
paper suggests a potential decrease of
Chorus’ pricing within a range of $2.48
to $7.48 per broadband connection per
month. Based on 30 June 2013 connection
volumes, Chorus anticipates this could
imply a reduction in annual EBITDA in the
range of $20 million to $100 million.
Overall fixed line connections remained
stable for the period, at about 1.8 million
lines, and the number of those copper
connections that provide broadband
services grew by more than 64,000 to
a total of 1.112 million lines.
By the end of June we had built fibre past
153,000 premises, surpassing the 149,000
targeted. This means we are now 18%
of the way through the UFB rollout and,
through UFB and other initiatives, have
added more than 3,000km of new fibre
infrastructure during the year.
Alongside Crown funding, Chorus is
investing a significant amount of its own
capital. In February we provided updated
guidance to the market that the total
estimated cost to build the communal
infrastructure for the network has increased
from $1.4 - $1.6 billion to $1.7 -$1.9 billion.
At this stage we are around 18% of the way
through the communal build programme
but have incurred over 25% of the estimated
cost of the programme for build completed.
To achieve a total programme cost within
this guidance range, we have put in place a
range of initiatives to drive cost savings and
efficiencies. We also expect less challenging
build in the second half of the programme.
This report is dated 29 August 2013 and is
signed on behalf of the Board of Chorus Limited: Sue Sheldon, Chairman Mark Ratcliffe, Director and CEO
A simple business
Fundamentally, Chorus is a simple
business. The core of the business is the
New Zealand wide network of fibre optic
and copper cables that connect homes
and businesses to each other.
The fibre network continues to grow rapidly
and Chorus now has about 32,000km
of fibre and 130,000km of copper cabling.
These cables typically connect back to local
telephone exchanges, of which Chorus
has about 600 nationwide. Chorus fibre
also connects many mobile phone towers
owned by mobile service providers, so even
mobile phone calls generally connect via
the Chorus network at some point.
Chorus has about 1.8 million connections
on the fixed line network, with about 1.1
million of these using a broadband service
provided by Chorus’ broadband equipment. The access network connects a home, business or structure to the telecommunications equipment – often a local exchange
Mobile service provider cell tower
Fibre-fed broadband cabinets provide broadband of at least 10Mbps to 80 percent of New Zealanders
Fibre to the premises enables ultra-fast broadband services
602
local exchanges
32,000km
fibre
Fibre backhaul links local exchanges to other
exchanges or retail service provider networks
Chorus Network Overview
KEY Fibre
Copper
About 7,000 cabinets provide interconnection
points for around 50% of the lines in the
Chorus network. A large number of these
cabinets are like mini telephone exchanges
and have electronic broadband equipment
installed in them.
In some cases, retail service providers
have chosen to install their own
broadband equipment in an
exchange and pay Chorus
just for the rental of the
access line. This is called
‘unbundling’ and about
7% of Chorus’ lines
have been unbundled.
While Chorus is undertaking one of the largest
infrastructure upgrades in New Zealand’s
history, it has been an ongoing concern that
the telecommunications industry faces
significant regulatory uncertainty.
In a move to address this uncertainty, a wide
ranging review of the regulation that applies
to the telecommunications sector was
announced in February and a consultation
document was released in early August.
When announcing the review, Minister Amy
Adams said “The options we are canvassing
give us an opportunity to provide clarity
and certainty during a period when
large investments are being made in a
once-in-a-many-generation upgrade
of our telecommunications infrastructure
that will deliver significant benefits for
New Zealanders well into the future.”
We welcome the review and the
opportunity now exists for the industry
to engage in the establishment of a
forward looking, coherent and stable policy
environment that ensures a sustainable
and efficient transition to fibre for the
years ahead.
Despite the twin challenges of regulatory
uncertainty and increased capital demands,
we are pleased with the progress Chorus
has made over the last 12 months.
New Zealand now has one of the fastest
growing rates of broadband penetration
in the OECD.
In May we announced new pricing and
specifications for very high speed copper
plans, using a technology known as VDSL.
This delivers higher quality broadband
to retail service providers at the same
regulated price as the standard copper
broadband product. Retail service providers
then take this product and develop their
own plans and pricing for end-users.
Faster copper-based technology forms an
important stepping stone to fibre. Like any
technology upgrade, the move to fibre will
be a long term transition, and VDSL has an
important role in the interim and in areas
where UFB is not being rolled out.
Chorus now employs 763 permanent
and fixed term employees directly, along
with a further 4,434 people who are either
employed directly by our service company
partners or are sub-contracted by the
service companies. This means the overall
workforce has doubled since Chorus’
demerger from Telecom.
We have been recognised for a second year
as one of the best employers in Australasia,
our people have retained a high level of
engagement with our business and our
culture promotes diversity and inclusiveness.
Health and safety will continue to be
a key focus for the company.
We have this year been accepted into a
globally recognised corporate sustainability
index and, in partnership with Downer, won
a Ministry for the Environment green award.
Chorus’ operational performance is good
and we will continue to work hard on your
behalf to address the challenges in the
year ahead.
3
Anne Urlwin, BCom, CA, F InstD, FNZIM, ACIS
Director since 1 December 2011; independent
Anne has more than 20 years’ directorship
experience across many sectors, including
energy, health, construction, regulatory services,
internet infrastructure, research, banking, forestry
and the primary sector, as well as education,
sports administration and the arts. She is a
director of Southern Response Earthquake
Services Ltd, Steel & Tube Holdings Ltd and
OnePath Life (NZ) Ltd. She is chairman of
Naylor Love Enterprises Ltd and an independent
chairman of Ngai Tahu Te Runanga Audit & Risk
Committee. Anne is a former chairman of Lakes
Environmental Ltd, the New Zealand Blood
Service and New Zealand Domain Name Registry,
and a former director of Meridian Energy.
Sue Sheldon CNZM, BCom, FCA
Chairman; director since 1 July 2011; independent
Sue is a professional company director. She is
chairman of Freightways and Paymark, deputy
chairman of the Reserve Bank of New Zealand
and a director of FibreTech Holdings and Contact
Energy. Sue is a former director of Telecom,
Smiths City Group and Meridian Energy, among
others. She has extensive experience as both
a chairman and member of audit and risk
committees and is a former president of the
New Zealand Institute of Chartered Accountants.
Sue was made a Companion of the New Zealand
Order of Merit for services to business in 2007.
Keith Turner, BE (Hons), ME, PhD
Director since 1 December 2011; independent
Dr Keith Turner was CEO of New Zealand
electricity generator and retailer Meridian Energy
for nine years from its establishment in 1999.
He is now chairman of Fisher and Paykel
Appliances, deputy chairman of Auckland
International Airport and a director of Spark
Infrastructure, an Australian listed company.
He is also chairman of Solar City New Zealand.
Keith has had an extensive career in electricity,
taking part in much of its reform, including
separation of Transpower from Electricity
Corporation of New Zealand Ltd (ECNZ) in 1992,
the separation of Contact Energy from ECNZ
in 1996 and the eventual break up of ECNZ
into three companies in 1999.
Clayton Wakefield, BSc (Computer Science), GradDip Mgmt
Director since 1 December 2011; independent
Clayton has over 30 years’ experience in the
banking, financial services, telecommunications
and technology industries. He is an executive
director and owner of Techspace, a leading
New Zealand independent IT advisory company
working with New Zealand’s major corporates.
From 2001 to 2007 he was Head of Technology
and Operations at ASB Bank. He was previously
a director and chairman of Electronic Transaction
Services and of Visa New Zealand and
also previously an independent director
of Endace Ltd.
Mark Ratcliffe, BA Accounting
Director since 9 December 2011; non-independent
Mark has been CEO of Chorus since it was
established in 2007 as an operationally separate
business unit within Telecom and was then
appointed as the first CEO of the listed entity
in 2011. In a 20 year career with Telecom, Mark
held finance, marketing, product development,
product management and IT roles and was
promoted to the executive team in 1999 where
he was CIO (including a period as joint CEO of
AAPT in Australia) and then COO Technology and
Wholesale before becoming CEO of Chorus. From
May 2010, he led the team that secured Chorus’
participation in the Government’s UFB initiative
and the demerger of Chorus and Telecom.
Prue Flacks, LLB, LLM
Director since 1 December 2011; independent
Prue is a director of Bank of New Zealand
and Mighty River Power, and a trustee of the
Victoria University Foundation. She is a barrister
and solicitor with extensive experience in
commercial law and, in particular, banking,
finance and securities law. Her areas of expertise
include corporate and regulatory matters,
corporate finance, capital markets, securitisation
and business restructuring. Prue is a consultant
to Russell McVeagh, where she was previously
a partner for 20 years.
Jon Hartley, BA Econ Accounting (Hons), Fellow ICA (England & Wales), Associate ICA (Australia), Fellow AICD
Director since 1 December 2011; independent
Jon is a Chartered Accountant and Fellow
of the Australian Institute of Company Directors.
He has held senior roles across a diverse range
of commercial and not for profit organisations in
several countries, including chairman of SkyCity,
director of Mighty River Power, CEO of Brierley
New Zealand and Solid Energy, and CFO of
Lend Lease in Australia. Jon is currently deputy
chairman of ASB Bank, Sovereign Assurance
Company and vice chairman of VisionFund
International. He is a director of VisionFund
Cambodia and a trustee of World Vision
New Zealand and of the Wellington City Mission.
Andrew Carroll, MCA (Hons)
Chief Financial Officer
Andrew joined Chorus after nine years with
Telecom where, as Head of Mergers & Acquisitions,
he was involved in the Gen-i acquisition and
the sale of Yellow Pages. Prior to this he worked
in investment banking for a decade. Andrew
worked closely with the Chorus team on the
UFB negotiations with Crown Fibre Holdings
and throughout the demerger process.
Mark RatcliffeChief Executive Officer See above.
Ewen Powell, BE
Chief Technology Officer
Ewen has nearly 20 years’ experience in
managing the technology, services and
partnerships that operate a national
communications network. Much of his career
was spent at Telecom where he was at the
forefront of a wide range of technology changes,
most recently driving the technology changes
required to achieve Chorus’ operational
separation requirements.
Irene LovejoyExecutive Assistant
Irene has worked with Chorus CEO Mark Ratcliffe
for more than 14 years, bringing a unique insight
that adds value to the development of the
Chorus executive team. Before joining Chorus,
Irene spent 22 years with Telecom where she
held roles in the marketing, technology and
corporate teams.
Nick WoodwardGeneral Manager, Customer Service
Nick’s career combines a wide range of IT,
sales and customer management experience in
the financial and telecommunications industries.
His roles have seen him work across the
United States and Europe for Hutchison 3G
UK and Household Bank in the United Kingdom.
Before joining Chorus, Nick headed up Telecom’s
Channel Planning and Operations group.
Vanessa Oakley, LLB (Hons), PGCert (MgtSt), PGCert (CompPolicy) (UK), GAICD, MInstD
General Counsel & Company Secretary
Vanessa has extensive experience in law and policy,
especially in relation to regulated infrastructure
businesses. A qualified lawyer in New Zealand and
England and Wales, Vanessa joined Chorus after
playing a key role in the UFB contract, legislative
and demerger processes. Prior to that she has held
roles in the public and private sectors including as
a key adviser to United Kingdom and New Zealand
regulators and across the Telecom group.
Victoria Crone, MCA
General Manager, Sales and Marketing
Victoria has extensive experience in bringing
telecommunications products and services to
market. She has held several senior business,
sales and marketing roles with Telecom,
including responsibility for the sales strategy
and operations for its retail business, managing
offerings for the business market and developing
Telecom’s proposition for next generation
products and services.
Sara Broadhurst^, BA, Dip (Bus), Dip (Psych), PG Dip (Psych)
General Manager, Human Resources
Sara joined Chorus in 2008, bringing more
than 10 years’ experience in human resources
in New Zealand and the United Kingdom from
a wide range of industries, including housing,
manufacturing, banking and not for profit
organisations. She previously held human
resources roles in New Zealand for
ANZ National Bank, EFTPOS and Barnardos.
Ed Beattie*
General Manager, IBuild
Ed has more than 30 years’ experience in
building and maintaining fixed line and mobile
telecommunications networks in New Zealand.
Most recently, he managed the delivery of the
successful Fibre to the Node programme and
played a lead role in the Christchurch crisis
response and restoration activities.
* During the year Ed Beattie assumed the role of General Manager IBuild after a reorganisation following the resignation of Chris Dyhrberg.
^ Sara Broadhurst left Chorus on 23 August 2013
DIRECTORS
EXECUTIVETEAM
4
As the largest copper and fibre network
operator in New Zealand, Chorus is subject
to regulation.
On 3 December 2012, the Commerce
Commission (Commission) released
two decisions:
• ThefinalbenchmarkedUnbundled
Copper Local Loop (UCLL) decision
reduced the price by 3.8% to $23.52
per month. Chorus and retail service
providers have applied for a ‘final
pricing principle’ review of the decision.
• ThedraftbenchmarkedUnbundled
Bitstream Access (UBA) decision
proposed a reduction in price of around
60% from $21.46 to $8.93 per month.
On 7 August 2013, the Government
released a discussion paper proposing
a phased approach to a review of the
telecommunications regulatory framework
with an immediate focus on copper
pricing. It proposes that Chorus’ combined
copper (UCLL and UBA) prices should be
roughly equivalent with Chorus’ contracted
entry level fibre prices.
There are three options proposed – which
generally differ in terms of whether the
Commission or Government selects the
appropriate price point between a range of
$37.50 – $42.50, how the UCLL and UBA
copper prices are set within that overall
cap and whether new pricing applies from
November 2014 or November 2015.
While the outcome of the Government’s
regulatory review is uncertain, all potential
options contained within the discussion
paper imply reduced future earnings for
Chorus. The discussion paper suggests
a potential decrease of Chorus’ pricing
within a range of $2.48 to $7.48 per
broadband connection per month.
Based on 30 June 2013 connection
volumes, Chorus anticipates this could
imply a reduction in annual EBITDA in
the range of $20 million to $100 million.
For UFB to be successful and for Chorus
to maintain its current capital management
settings, it is important to get an appropriate
mix of Layer 1 (UCLL/UCLFS) and Layer 2
(UBA) pricing. The outcomes of this process
and the Commission’s parallel processes
reviewing the UBA and UCLL prices
are uncertain.
Later phases of the regulatory review
are proposed to focus on the appropriate
regulatory framework once the UFB build
is complete in 2020 (amongst other things).
Submissions are due on 13 September.
On 9 July 2013 the Government also issued
a discussion document for the review of
the Telecommunications Service Obligation
(TSO). Chorus provides wholesale services
that enable the provision of the retail
TSO. Submissions on a number of potential
future options for the TSO were due on
20 August 2013.
For a complete overview of Chorus’
regulatory environment, please see
the competition and regulation section
in the Management Commentary.
Chorus and Vodafone are working
together to deliver the Government’s RBI
programme. This joint project is bringing
better broadband to rural schools, health
providers and tens of thousands of rural
residents. There are several elements to
this Government subsidised project. The
main task for Chorus is laying fibre, often
to exchange areas where there isn’t fibre
today. In addition, Chorus will deliver fibre
to 154 new Vodafone mobile sites that will
be used to deliver fixed wireless broadband
to rural communities.
As part of RBI, Chorus is laying approximately
3,350km of fibre and upgrading or installing
about 1,000 new broadband cabinets.
At 30 June 2013 Chorus had laid 2,150km
of fibre and brought 51,200 lines within
reach of better broadband.
Rural Broadband Initiative Regulatory environment
People
Total people numbers at 30 June 2013
2142 service company sub-contractors
763 Chorus permanent and fixed term employees
2292 service company employees
In May 2011, Chorus was selected by Crown Fibre Holdings Ltd (CFH) to roll out UFB in 24 of the 33 areas nationwide. This contract will see Chorus deploy around 17,000km of new fibre optic cables to areas covering around 70% of the UFB footprint.
Ultra-Fast Broadband
By 2020, Chorus will have drilled, dug
or hauled the new network past about
830,900 premises. With 60% to 70% of
deployment costs relating to civil work,
Chorus is using as much of its existing
duct and fibre network as possible.
Chorus is also working with councils
and utility companies to further reduce
deployment costs by, for example,
trench sharing and linking with footpath
replacement programmes where possible.
UFB – an inter-generational investment
Fibre can deliver high speed connectivity
over much greater distances than copper,
opening up possibilities and services that
aren’t yet perceived. Fibre is also easier
to maintain and will help future-proof the
network for continuing growth in demand
for bandwidth.
Alcatel Lucent’s Bell Labs estimated
in 2012 that the economic impact of
building the UFB and RBI networks is
$5.5 billion GDP growth over 20 years.
The Government’s UFB policy, through
public private partnerships with the
Crown, brings forward the network
investment ahead of demand and earlier
than would have otherwise been made
by the private sector alone. This means
New Zealand can realise the economic
and social benefits sooner.
205,500 end-users now within reach of UFB
End-users within reach of UFB (cumulative)
Premises passed with UFB (cumulative)
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0FY12 FY13
Chorus aims to achieve a balance
between our economic, environmental
and social requirements that delivers our
needs of today without compromising our
needs of tomorrow. Chorus has this year
been accepted into the FTSE4Good index,
which measures the performance of
companies that meet globally recognised
corporate responsibility standards.
Environmental highlights
During the year Chorus established an
energy manager’s role as part of our
commitment to manage the energy that
made up 60% of our carbon footprint.
We also calculated our base year carbon
and submitted it to the Carbon Disclosure
Project, a leading global carbon benchmark.
In addition, Chorus, in partnership with
Downer, won the Ministry for the
Environment Green Ribbon Award for
waste minimisation through our efforts to
recycle approximately 2,400 UFB drums
and 20km of ducts.
Social highlights
Last year, 274 Chorus staff took the
opportunity to spend a day helping others
in our community, through our Volunteer
Day programme.
Starship children’s hospital was nominated
by Chorus people to receive a $50,000
donation from Chorus.
We also continued to combat graffiti with
our cabinet art programme, with another
35 cabinets now complete.
Corporate Sustainability
Artist Monique Endt
Location Huia Road, Woodlands Park, Auckland
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nec
tio
ns
con
tin
ued
to
gro
w s
tead
ily w
ith
ab
ou
t
64
,00
0 c
op
per
bro
adb
and
con
nec
tio
ns
add
ed o
ver
the
last
tw
elve
mo
nth
s.
•Fibrefixe
dlineco
nnec
tions
nea
rly
do
ub
led
, wit
h
fib
re r
even
ue
no
w 5
.7%
of
tota
l rev
enu
e.
•Choruswillpayadividen
d
for
the
six
mo
nth
s en
din
g
30
Ju
ne
20
13 o
f 15
.5 c
ents
per
sh
are
(25.
5 c
ents
per
shar
e an
nu
al d
ivid
end
).
Ch
alle
ng
es•O
ngoingunce
rtaintyw
ith
the
reg
ula
tory
fra
mew
ork
that
Ch
oru
s o
per
ates
in
(th
e Te
leco
mm
un
icat
ion
s
Act
20
01)
an
d a
lign
men
t
of
the
fram
ewo
rk w
ith
th
e
Go
vern
men
t’s
UFB
init
iati
ve.
•Grosscap
italexp
enditure
for
the
year
was
$6
81
mill
ion
,
wit
h s
pec
ific
chal
len
ges
on
UFB
pro
gra
mm
e
dep
loym
ent
cost
s.
•Ach
ievingongoingefficien
cy
in t
he
cost
of
the
UFB
net
wo
rk r
ollo
ut
and
ensu
rin
g U
FB c
on
nec
tio
ns
are
mad
e o
n a
tim
e an
d c
ost
efficien
tbasis.
•StartofmajorITspen
d
and
mig
rati
on
fro
m
Tele
com
sys
tem
s.
•Retailservice
provider
focu
s o
n r
esid
enti
al fi
bre
is s
till
dev
elo
pin
g, m
ean
ing
up
take
co
nti
nu
es t
o
gro
w in
crem
enta
lly.
•In
dustrychan
gesare
dri
vin
g o
ng
oin
g r
etai
l
serv
ice
pro
vid
er c
ost
fo
cus,
incl
ud
ing
gre
ater
fo
cus
on
mo
bile
su
bst
itu
tio
n.
Ch
oru
s M
anag
em
en
t C
om
me
nta
ry
7
Ou
tlo
ok
Wh
ile C
ho
rus
con
tin
ues
to
exp
erie
nce
go
od
gro
wth
in b
road
ban
d
and
fib
re c
on
nec
tio
ns
ther
e ar
e a
ran
ge
of
chal
len
ges
fo
r th
e ye
ar
ahea
d. T
hes
e in
clu
de:
•Ongoingunce
rtaintyw
iththeregulatoryframew
ork,itslack
of
clea
r al
ign
men
t w
ith
th
e G
ove
rnm
ent’s
UFB
init
iati
ve a
nd
th
e
abse
nce
of
fit-f
or-
pu
rpo
se r
egu
lati
on
. An
y ch
ang
es t
o r
egu
late
d
pri
cin
g w
ill li
kely
be
a st
ron
g in
flu
ence
on
Ch
oru
s’ f
utu
re r
even
ues
and
ind
ust
ry w
illin
gn
ess
to m
igra
te t
o fi
bre
.
•Theye
arending30June2014
willalsobethefirstfull12m
onths
of
the
Co
mm
issi
on
’s r
edu
ctio
n in
UC
LL a
nd
Un
bu
nd
led
Co
pp
er
Low
Fre
qu
ency
Ser
vice
(UC
LFS)
pri
cin
g, t
he
ann
ual
ised
imp
act
of
wh
ich
was
est
imat
ed t
o r
edu
ce C
ho
rus’
EB
ITD
A b
y ar
ou
nd
$2
0 m
illio
n p
er a
nn
um
. It
is li
kely
th
at t
he
sig
nifi
can
t re
gu
lato
ry
pro
gra
mm
es in
FY
14 w
ill a
lso
res
ult
in in
crea
sed
reg
ula
tory
an
d
con
sult
ant
cost
s in
FY
14.
•Thenee
dtoach
ievefurtherefficien
ciesin
thedep
loym
entco
st
of
the
UFB
net
wo
rk r
ollo
ut
and
en
d-u
ser
con
nec
tio
ns.
•Evengreaterfocu
sfromretailservice
providersonin
putco
sts.
Th
is m
ean
s th
ey a
re s
cru
tin
isin
g o
pp
ort
un
itie
s to
low
er t
hei
r
wh
ole
sale
co
sts
fro
m C
ho
rus
and
are
als
o c
on
sid
erin
g in
itia
tive
s
to d
rive
gre
ater
fixe
d t
o m
ob
ile s
ub
stit
uti
on
.
•Increa
sedcompetitivepressurefromothernetworks.Theother
UFB
net
wo
rk b
uild
ers
had
pas
sed
ap
pro
xim
atel
y 76
,00
0 p
rem
ises
at 3
0 J
un
e 2
013
an
d m
ay s
tart
to
gai
n g
reat
er m
arke
t sh
are
fro
m
Ch
oru
s as
th
eir
net
wo
rk f
oo
tpri
nts
dev
elo
p s
cale
. In
ad
dit
ion
,
seve
ral m
ob
ile n
etw
ork
op
erat
ors
hav
e b
egu
n o
ffer
ing
4G
cove
rag
e in
mai
n c
entr
es, o
ffer
ing
mo
bile
bro
adb
and
cap
abili
ty
that
may
be
mo
re c
om
pet
itiv
e ag
ain
st C
ho
rus’
fixe
d li
ne
off
erin
g.
•Asnotedatthehalfye
ar,C
horusex
pec
tstoin
curincrem
ental
IT c
ost
s as
tw
o IT
sys
tem
s ar
e ru
n in
par
alle
l.
•IfVeryHighSpee
dDigitalSubscriberLine(VDSL
)uptake
increa
ses
mat
eria
lly, t
his
is li
kely
to
hav
e a
mo
des
t n
ear
term
imp
act
on
earn
ing
s as
th
e co
st o
f th
e re
com
men
ded
wir
ing
up
gra
de
is
incu
rred
up
fro
nt,
wh
ile t
he
reve
nu
es a
re r
ecei
ved
ove
r ti
me.
Giv
en t
he
abo
ve, C
ho
rus’
cu
rren
t vi
ew is
th
at t
he
earn
ing
s
ou
tlo
ok
for
FY14
is f
lat
to lo
w s
ing
le d
igit
per
cen
tag
e d
eclin
e
in E
BIT
DA
rel
ativ
e to
no
rmal
ised
FY
13 E
BIT
DA
of
$6
54
mill
ion
(see
no
rmal
ised
an
nu
alis
ed r
esu
lts
on
pag
e 12
).
EB
ITD
A
EB
ITD
A f
or
the
year
en
ded
30
Ju
ne
20
13 w
as $
66
3 m
illio
n,
rep
rese
nti
ng
aro
un
d 1
.2%
gro
wth
in E
BIT
DA
on
a n
orm
alis
ed b
asis
(see
no
rmal
ised
an
nu
alis
ed r
esu
lts
on
pag
e 12
). T
his
ref
lect
s
con
tin
ued
gro
wth
in d
eman
d f
or
Ch
oru
s’ b
asic
an
d e
nh
ance
d c
op
per
pro
du
cts,
incl
ud
ing
ste
ady
bro
adb
and
up
take
ove
r th
e ye
ar. D
eman
d
for
fibre
pro
du
cts
also
co
nti
nu
ed t
o g
row
, par
ticu
larl
y fo
r b
usi
nes
s
and
car
rier
co
nn
ecti
on
s. A
sig
nifi
can
t am
ou
nt
of
Ch
oru
s’ r
even
ues
are
fro
m r
egu
late
d p
rod
uct
s, w
hic
h g
ives
litt
le d
iscr
etio
nar
y fl
exib
ility
in r
even
ues
. Co
sts
hav
e g
row
n b
y ar
ou
nd
7.4
% r
elat
ive
to t
he
no
rmal
ised
20
12 r
esu
lt (s
ee n
orm
alis
ed a
nn
ual
ised
res
ult
s o
n
pag
e 12
), re
flec
tin
g in
crea
sed
pro
visi
on
ing
co
sts,
net
wo
rk
mai
nte
nan
ce c
ost
s an
d g
row
ing
sta
ff n
um
ber
s (a
sig
nifi
can
t
nu
mb
er o
f w
hic
h a
re w
ork
ing
on
th
e U
FB b
uild
an
d in
form
atio
n
tech
no
log
y (IT
) pro
ject
s, w
hic
h a
re f
ully
cap
ital
ised
).
A c
om
par
iso
n o
f th
e n
orm
alis
ed f
ull
year
res
ult
s, r
elat
ive
to t
he
no
rmal
ised
an
nu
alis
ed s
even
mo
nth
res
ult
s en
ded
30
Ju
ne
20
12,
is in
clu
ded
in n
orm
alis
ed a
nn
ual
ised
res
ult
s o
n p
age
12.
Cap
ital
exp
end
itu
re
Cap
ital
exp
end
itu
re f
or
the
year
en
ded
30
Ju
ne
20
13 w
as
$6
81
mill
ion
, wh
ich
is c
on
sist
ent
wit
h t
he
mid
po
int
of
the
gu
idan
ce r
ang
e p
rovi
ded
in F
ebru
ary
afte
r ad
just
ing
fo
r an
ad
dit
ion
al
$14
mill
ion
of
year
th
ree
UFB
bu
ild in
itia
ted
in t
his
fin
anci
al y
ear
(an
d
reco
gn
ised
as
wo
rk in
pro
gre
ss).
Ap
pro
xim
atel
y 8
5%
of
this
cap
ital
exp
end
itu
re w
as f
ocu
sed
on
fib
re r
elat
ed in
vest
men
t, p
rin
cip
ally
on
the
UFB
an
d R
ura
l Bro
adb
and
Initi
ativ
e (R
BI)
dep
loym
ent
pro
gra
mm
es.
Div
iden
ds
Ch
oru
s w
ill p
ay a
div
iden
d o
f 15
.5 c
ents
per
sh
are
on
11 O
cto
ber
20
13 t
o a
ll sh
areh
old
ers
reg
iste
red
at
5.0
0p
m o
n
Frid
ay 2
7 Se
pte
mb
er 2
013
. Th
e sh
ares
will
be
qu
ote
d o
n a
n
ex-d
ivid
end
bas
is f
rom
25
Sep
tem
ber
20
13 o
n t
he
NZ
X M
ain
Bo
ard
an
d 2
3 S
epte
mb
er 2
013
on
th
e A
SX.
Th
e d
ivid
end
s w
ill b
e fu
lly im
pu
ted
(at
a ra
tio
of
28
/72
) in
lin
e w
ith
the
corp
ora
te in
com
e ta
x ra
te. I
n a
dd
itio
n, a
su
pp
lem
enta
ry d
ivid
end
of
2.7
35
3 c
ents
per
sh
are,
will
be
pay
able
to
sh
areh
old
ers
wh
o a
re
no
t re
sid
ent
in N
ew Z
eala
nd
.
Elig
ible
sh
areh
old
ers
will
be
able
to
par
tici
pat
e in
th
e D
ivid
end
Rei
nve
stm
ent
Pla
n f
or
the
Oct
ob
er 2
013
div
iden
d. E
lect
ion
no
tice
s
to p
arti
cip
ate
in t
he
Div
iden
d R
ein
vest
men
t P
lan
mu
st b
e re
ceiv
ed
by
5.0
0p
m F
rid
ay 2
7 Se
pte
mb
er 2
013
.
Ch
oru
s’ F
Y14
div
iden
d g
uid
ance
is u
nch
ang
ed. T
he
Ch
oru
s B
oar
d w
ill
con
tin
ue
to m
on
ito
r d
evel
op
men
ts a
nd
exp
ects
to
rea
sses
s C
ho
rus’
op
tim
al c
apit
al m
anag
emen
t se
ttin
gs
as t
he
ou
tco
mes
fro
m t
he
Go
vern
men
t’s r
egu
lato
ry f
ram
ewo
rk r
evie
w b
eco
me
clea
rer.
In s
um
mar
y
Ch
oru
s M
anag
em
en
t C
om
me
nta
ry8
Ch
oru
s is
New
Zea
lan
d’s
larg
est
fixed
lin
e co
mm
un
icat
ion
s
infr
astr
uct
ure
ser
vice
s p
rovi
der
, su
pp
lyin
g a
bo
ut
90
% o
f al
l fixe
d
net
wo
rk c
on
nec
tio
ns
to r
etai
l ser
vice
pro
vid
ers.
Ch
oru
s h
as b
usi
nes
s
line
rest
rict
ion
s p
roh
ibit
ing
it f
rom
sel
ling
dir
ectl
y to
en
d-u
sers
.
Ch
oru
s is
fo
cuse
d o
n le
adin
g t
he
tran
siti
on
fro
m c
op
per
to f
ibre
-bas
ed s
ervi
ces.
Pu
blic
pri
vate
par
tner
ship
s an
d o
pen
acce
ss w
ho
lesa
le s
ervi
ces
are
at t
he
hea
rt o
f th
e in
du
stry
mo
del
est
ablis
hed
in la
te 2
011
. It
is a
tim
e o
f co
mp
lex
tran
siti
on
,
rep
rese
nti
ng
bo
th o
pp
ort
un
ity
and
ch
alle
ng
e fo
r C
ho
rus,
as
wel
l
as f
or
reta
il se
rvic
e p
rovi
der
s.
Ch
oru
s’ t
ota
l of
app
roxi
mat
ely
1,78
4,0
00
fix
ed li
ne
con
nec
tio
ns
at 3
0 J
un
e 2
013
rep
rese
nt
an in
crea
se o
f ap
pro
xim
atel
y 8
,00
0
lines
fro
m 3
0 J
un
e 2
012
. Rea
l gro
wth
of
10,0
00
lin
es in
th
e fir
st h
alf
was
off
set
by
a re
du
ctio
n o
f ap
pro
xim
atel
y 2
,00
0 li
nes
ove
r th
e si
x
mo
nth
s to
30
Ju
ne
20
13. T
he
rela
tive
ly s
tati
c n
atu
re o
f fix
ed li
ne
con
nec
tio
ns
con
tin
ues
to
ref
lect
th
e sl
ow
mig
rati
on
of
fixed
vo
ice
serv
ices
to
mo
bile
in N
ew Z
eala
nd
, rel
ativ
e to
oth
er c
ou
ntr
ies.
With
the
stro
ng
gro
wth
in m
ob
ile s
mar
t d
evic
es, f
ixed
net
wo
rks
glo
bal
ly
are
incr
easi
ng
ly s
een
as
com
ple
men
tary
to
su
pp
ort
ing
th
e m
ob
ile
exp
erie
nce
. Th
e in
stal
lati
on
of
fibre
net
wo
rk in
new
su
bd
ivis
ion
s
is a
lso
pro
vid
ing
so
me
nat
ura
l co
nn
ecti
on
gro
wth
.
New
Zea
lan
d’s
bro
adb
and
mar
ket
con
tin
ues
to
gro
w s
tead
ily w
ith
Ch
oru
s ad
din
g a
bo
ut
64
,00
0 c
op
per
bro
adb
and
co
nn
ecti
on
s
in t
he
twel
ve m
on
ths.
In J
uly
20
13, t
he
OE
CD
rep
ort
ed t
hat
New
Zea
lan
d w
as t
he
thir
d f
aste
st g
row
ing
bro
adb
and
mar
ket
in t
he
OE
CD
fo
r th
e ye
ar t
o D
ecem
ber
20
12, w
ith
to
tal b
road
ban
d
con
nec
tio
ns
incr
easi
ng
3.1
% t
o 1
.28
mill
ion
. Bro
adb
and
pen
etra
tio
n
per
10
0 in
hab
itan
ts w
as 2
8.6
%, a
hea
d o
f b
oth
th
e O
EC
D a
vera
ge
(26
.3%
) an
d A
ust
ralia
(25.
2%
)1 . T
he
Co
mm
issi
on
est
imat
es t
hat
bro
adb
and
pen
etra
tio
n in
crea
sed
to
aro
un
d 7
8%
of
ho
use
ho
lds
wit
h a
fix
ed li
ne
con
nec
tio
n2. T
he
pro
po
rtio
n o
f C
ho
rus’
co
pp
er li
nes
also
tak
ing
a b
road
ban
d s
ervi
ce in
crea
sed
fro
m 6
0%
to
63
% d
uri
ng
the
per
iod
.
In a
dd
itio
n t
o t
he
sig
nifi
can
t ch
ang
e ar
isin
g f
rom
th
e G
ove
rnm
ent’s
UFB
po
licy
and
th
e se
par
atio
n o
f C
ho
rus’
op
en a
cces
s n
etw
ork
fro
m r
etai
l, th
ere
is o
ther
on
go
ing
ch
ang
e in
th
e in
du
stry
. Th
ere
are
chan
ges
in t
he
ow
ner
ship
of
reta
il se
rvic
e p
rovi
der
s (a
s al
read
y se
en
in t
he
pu
rch
ase
of
Tels
traC
lear
by
Vo
daf
on
e in
Oct
ob
er 2
012
an
d
Ko
rdia
’s s
ale
of
Orc
on
to
pri
vate
inve
sto
rs in
Ap
ril 2
013
) an
d t
he
evo
luti
on
of
on
line
con
ten
t o
ffer
ing
s (a
s se
en w
ith
Co
liseu
m S
po
rts
Med
ia a
nn
ou
nci
ng
in J
un
e 2
013
th
at it
has
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he
bro
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hts
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r th
e E
ng
lish
Pre
mie
r Le
agu
e an
d w
ill u
se a
n o
nlin
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latf
orm
).
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rvie
w o
f th
e te
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un
icat
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s
wh
ole
sale
mar
ket
Oth
er n
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Ch
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etit
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ixed
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etw
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pro
vid
ers
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as
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osh
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d N
ow
. Vo
daf
on
e is
a s
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ifica
nt
Ch
oru
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mer
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t is
als
o n
ow
Ch
oru
s’ la
rges
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ed n
etw
ork
com
pet
ito
r th
rou
gh
its
pu
rch
ase
of
the
Tels
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ork
in W
ellin
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apit
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hri
stch
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h c
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tin
g a
bo
ut
60
,00
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bro
adb
and
en
d-u
sers
. It
also
has
bu
sin
ess
fibre
net
wo
rks
in a
ll m
ajo
r
cen
tral
bu
sin
ess
area
s an
d a
nat
ion
al t
ran
spo
rt a
nd
bac
khau
l net
wo
rk.
Th
ree
loca
l fib
re c
om
pan
ies
No
rth
po
wer
, Ult
rafa
st F
ibre
an
d
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able
Net
wo
rks
are
also
dep
loyi
ng
fib
re n
etw
ork
s in
pu
blic
pri
vate
par
tner
ship
s w
ith
th
e C
row
n in
9 o
f th
e 3
3 U
FB a
reas
. It
is e
xpec
ted
they
will
dep
loy
UFB
fib
re p
ast
abo
ut
36
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pre
mis
es. C
ho
rus
exp
ects
its
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net
wo
rk t
o h
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ou
t 8
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ises
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ixed
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012
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Rev
enu
e o
verv
iew
Ch
oru
s’ fo
cus
is o
n s
ust
ain
ing
dem
and
for
con
nec
tion
s an
d s
up
po
rtin
g
reta
il se
rvic
e p
rovi
der
s an
d s
take
ho
lder
s b
y g
row
ing
co
nn
ecti
on
s an
d
‘lead
ing
New
Zea
lan
d t
o f
ibre
’. R
even
ues
an
d v
olu
mes
hav
e re
mai
ned
rela
tive
ly s
tead
y th
rou
gh
ou
t th
e tw
elve
mo
nth
s.
Un
adju
sted
rev
enu
es w
ere
up
slig
htl
y co
mp
ared
to
th
e p
rio
r
per
iod
(an
nu
alis
ed).
Aft
er a
dju
stin
g f
or
chan
ges
in r
egu
late
d (U
CLF
S)
pri
cin
g, r
even
ues
wer
e u
p b
y ar
ou
nd
3.5
% o
n a
like
fo
r lik
e b
asis
(see
no
rmal
ised
an
nu
alis
ed r
esu
lts
on
pag
e 12
). To
tal f
ixed
lin
e
con
nec
tion
s w
ere
stab
le, w
ith a
slig
ht
incr
ease
of
8,0
00
co
nn
ecti
on
s
(fro
m 1
,776
,00
0 t
o 1
,78
4,0
00
). T
his
incl
ud
ed a
dju
stm
ents
to
allo
w f
or:
•ap
proximately7,000HighSpee
dNetworkService
(HSN
S)
con
nec
tio
ns
ove
r co
pp
er p
revi
ou
sly
om
itte
d f
rom
th
e ‘d
ata
serv
ices
ove
r co
pp
er’ c
ateg
ory
in t
he
30
Ju
ne
20
12 t
ota
l fo
r
fixed
lin
e co
nn
ecti
on
s; a
nd
•excludingabout7,000SubLoopUnbundlin
g(S
LU)/Su
bLoop
Ext
ensi
on
Ser
vice
s (S
LES)
co
nn
ectio
ns
that
wer
e p
revi
ou
sly
do
ub
le
cou
nte
d in
th
e 3
0 J
un
e 2
012
to
tal f
or
fixed
lin
e co
nn
ecti
on
s.
A s
um
mar
y o
f C
ho
rus’
co
nn
ecti
on
nu
mb
ers
for
key
pro
du
cts
is in
rev
enu
e co
mm
enta
ry o
n p
age
10.
Ch
oru
s’ p
rod
uct
po
rtfo
lio e
nco
mp
asse
s a
bro
ad r
ang
e o
f b
road
ban
d,
dat
a an
d v
oic
e se
rvic
es. I
t in
clu
des
a m
ix o
f re
gu
late
d a
nd
co
mm
erci
al
cop
per
an
d le
gac
y p
rod
uct
s, a
nd
co
ntr
actu
ally
ag
reed
fib
re p
rod
uct
s.
Ch
oru
s’ r
even
ue
stra
teg
y fo
cuse
s o
n:
•Retainingvaluebysustainingdem
andforChorus’share
of
mar
ket
con
nec
tio
ns;
•Deliveringgrowthbydrivingdem
andforUFB
service
sinlinewith
the
Go
vern
men
t’s o
bje
ctiv
e to
max
imis
e fib
re u
pta
ke. C
ho
rus’
go
al is
to
del
iver
pro
du
cts
that
su
pp
ort
ban
dw
idth
gro
wth
an
d
enco
ura
ge
ado
pti
on
of
hig
her
sp
eed
fib
re p
rod
uct
s o
f 10
0M
bp
s
or
mo
re; a
nd
•Defi
ningnew
marke
topportunitiesforChorus’connec
tions
and
ser
vice
s.
Pro
du
ct o
verv
iew
on
pag
e 16
pro
vid
es a
n o
verv
iew
of
the
sig
nifi
can
t
pro
du
cts
and
ser
vice
s th
at m
ake
up
co
pp
er a
nd
fib
re r
even
ues
.
Bas
ic c
op
per
Bas
ic c
op
per
inco
rpo
rate
s co
re r
egu
late
d p
rod
uct
s th
at, w
hile
an im
po
rtan
t p
art
of
the
po
rtfo
lio, h
ave
limit
ed s
cop
e fo
r fu
rth
er
dev
elo
pm
ent
by
Ch
oru
s, o
r ar
e fo
un
ded
on
ear
lier
tech
no
log
y an
d
pro
du
ct v
aria
nts
th
at a
re b
ein
g s
up
erse
ded
by
enh
ance
d c
op
per
and
fib
re s
ervi
ces.
It in
clu
des
mo
st o
f C
ho
rus’
laye
r 1
net
wo
rk
pro
du
cts
and
incl
ud
es t
he
cop
per
vo
ice
inp
ut
UC
LFS,
UC
LL, S
LU
and
SLE
S, a
nd
Bas
ic U
BA
(in
clu
din
g b
road
ban
d o
nly
nak
ed B
asic
UB
A c
on
nec
tio
ns)
.
Th
e m
igra
tio
n f
rom
Bas
ic U
BA
bro
adb
and
ser
vice
s to
en
han
ced
cop
per
ser
vice
s an
d a
sh
ift in
tra
dit
ion
al v
oic
e vo
lum
es, a
s re
tail
serv
ice
pro
vid
ers
inve
st in
Inte
rnet
Pro
toco
l (IP
) vo
ice
serv
ices
is
con
trib
uti
ng
to
a c
on
tin
uin
g d
eclin
e in
bas
ic c
op
per
rev
enu
es.
Th
e m
ajo
rity
of
bas
ic c
op
per
rev
enu
es a
re d
eriv
ed f
rom
Ch
oru
s’ B
aseb
and
Co
pp
er s
ervi
ces
(incl
ud
ing
UC
LFS)
wh
ich
reta
il se
rvic
e p
rovi
der
s ca
n u
se a
s an
inp
ut
into
tra
dit
ion
al v
oic
e
off
ers.
Th
e C
om
mis
sio
n’s
fin
al d
ecis
ion
on
UC
LL p
rici
ng
res
ult
ed
in B
aseb
and
Co
pp
er p
rici
ng
red
uci
ng
fro
m $
24.4
6 t
o $
23.
52
fro
m 1
Dec
emb
er 2
012
. As
a re
sult
bas
ic c
op
per
rev
enu
es h
ave
dec
reas
ed b
y ap
pro
xim
atel
y $
20
mill
ion
on
an
an
nu
alis
ed b
asis
.
Th
e h
isto
rica
l im
pac
t o
f th
is r
edu
ctio
n in
rev
enu
es is
an
alys
ed
furt
her
in n
orm
alis
ed a
nn
ual
ised
res
ult
s o
n p
age
12.
Rev
enu
e co
mm
enta
ry
Ch
oru
s M
anag
em
en
t C
om
me
nta
ry
9
At
30
Ju
ne
20
13 t
her
e w
ere
app
roxi
mat
ely
1,5
21,
00
0 B
aseb
and
Co
pp
er li
nes
3, a
dec
reas
e o
f 6
4,0
00
lin
es f
rom
30
Ju
ne
20
12. T
his
red
uct
ion
was
off
set
by
the
mig
rati
on
of
con
nec
tio
ns
to C
ho
rus’
oth
er f
ixed
lin
e co
nn
ecti
on
pro
du
cts.
In p
arti
cula
r, U
CLL
co
nn
ecti
on
s
gre
w b
y 2
5,0
00
lin
es a
nd
‘nak
ed’ c
on
nec
tio
ns
(nak
ed B
asic
UB
A,
nak
ed E
nh
ance
d U
BA
an
d n
aked
VD
SL) g
rew
by
41,
00
0 li
nes
.
Th
e n
um
ber
of
un
bu
nd
led
exc
han
ges
gre
w f
rom
156
to
18
3 o
ver
the
per
iod
. At
30
Ju
ne
20
13, a
pp
roxi
mat
ely
128
,00
0 a
cces
s lin
es w
ere
bei
ng
use
d b
y re
tail
serv
ice
pro
vid
ers
to d
eliv
er u
nb
un
dle
d s
ervi
ces
to
con
sum
ers.
Th
e to
tal c
om
pri
sed
12
2,0
00
UC
LL li
nes
an
d 6
,00
0 S
LU
lines
(off
ered
in c
on
jun
ctio
n w
ith
Ch
oru
s’ c
om
mer
cial
SLE
S).
Th
e n
um
ber
of
SLU
/SLE
S co
nn
ecti
on
s d
ecre
ased
by
abo
ut
6,0
00
lines
wh
en a
llow
ing
fo
r 7,
00
0 li
nes
th
at h
ad p
revi
ou
sly
bee
n d
ou
ble
cou
nte
d in
th
e 3
0 J
un
e 2
012
to
tal.
UC
LL li
nes
are
cu
rren
tly
char
ged
at $
19.0
8 f
or
urb
an a
nd
$3
5.2
0 f
or
no
n-u
rban
fo
llow
ing
th
e
Co
mm
issi
on
’s r
e-b
ench
mar
kin
g o
f U
CLL
pri
cin
g in
Dec
emb
er 2
012
.
Th
e u
rban
an
d n
on
-urb
an p
rice
s ar
e ex
pec
ted
to
mo
ve t
o a
n
aver
aged
pri
ce o
f $
23.
52
in D
ecem
ber
20
14 (n
oti
ng
th
at t
he
pri
cin
g o
f th
ese
serv
ices
are
sti
ll su
bje
ct t
o v
ario
us
pro
cess
es
– s
ee t
he
com
pet
itio
n a
nd
reg
ula
tion
sec
tio
n).
Bas
ic U
BA
is a
n e
arly
var
ian
t b
road
ban
d s
ervi
ce, d
eliv
ered
on
a ‘b
est
effo
rts’
bas
is u
sin
g o
lder
gen
erat
ion
tec
hn
olo
gy.
Th
e n
um
ber
of
Bas
ic U
BA
co
nn
ecti
on
s h
ad d
eclin
ed t
o a
bo
ut
33
1,0
00
co
nn
ecti
on
s
at 3
0 J
un
e 2
013
. Th
is r
efle
cts
reta
il se
rvic
e p
rovi
der
sys
tem
s u
pg
rad
es
and
mig
rati
on
to
th
e E
nh
ance
d U
BA
ser
vice
.
UB
A p
rici
ng
was
set
on
a r
etai
l min
us
bas
is p
rio
r to
dem
erg
er a
nd
the
Co
mm
issi
on
is c
urr
entl
y co
nsi
der
ing
co
st b
ased
pri
cin
g f
or
UB
A
serv
ices
by
refe
ren
ce t
o b
ench
mar
kin
g. A
ny
chan
ge
to t
he
UB
A p
rice
wo
uld
no
t co
me
into
eff
ect
un
til N
ove
mb
er 2
014
at
the
earl
iest
.
Th
e U
BA
pri
ce, a
nd
th
e d
ate
on
wh
ich
an
y ch
ang
e co
mes
into
eff
ect
may
ch
ang
e as
a r
esu
lt o
f th
e cu
rren
t re
gu
lato
ry r
evie
w (s
ee t
he
com
pet
itio
n a
nd
reg
ula
tion
sec
tio
n).
En
han
ced
co
pp
er
En
han
ced
co
pp
er in
clu
des
co
pp
er b
ased
nex
t g
ener
atio
n r
egu
late
d
and
co
mm
erci
al p
rod
uct
s th
at d
eliv
er h
igh
er s
pee
d c
apab
ility
,
a b
ette
r en
d-u
ser
exp
erie
nce
an
d c
an a
ssis
t tr
ansi
tio
n t
o f
ibre
.
It in
clu
des
En
han
ced
UB
A, V
DSL
, Bas
eban
d IP
vo
ice
inp
ut
serv
ice
and
HSN
S Li
te (C
op
per
) fo
r b
usi
nes
s d
ata.
Ch
oru
s’ e
nh
ance
d c
op
per
cat
ego
ry g
rew
ste
adily
ove
r th
e p
erio
d,
refl
ecti
ng
co
nti
nu
ed m
igra
tio
n f
rom
Bas
ic U
BA
to
En
han
ced
UB
A
serv
ices
an
d c
on
tin
ued
gro
wth
in n
ew c
on
nec
tio
ns.
Wh
ile e
ntr
y
leve
l En
han
ced
UB
A s
ervi
ces
are
char
ged
at
the
sam
e re
gu
late
d
pri
ce (c
urr
entl
y $
21.
46
) as
Bas
ic U
BA
ser
vice
s, E
nh
ance
d U
BA
use
s
an In
tern
et P
roto
col t
ech
no
log
y p
latf
orm
th
at o
ffer
s th
e p
ote
nti
al f
or
a su
per
ior
bro
adb
and
exp
erie
nce
an
d g
reat
er s
ervi
ce d
iffer
enti
atio
n.
En
han
ced
UB
A c
on
nec
tio
ns
wer
e ap
pro
xim
atel
y 6
80
,00
0 a
t
30
Ju
ne
20
13, a
n in
crea
se o
f 8
3%
fro
m 3
0 J
un
e 2
012
. A s
tan
dar
d
En
han
ced
UB
A (w
ith
an
alo
gu
e vo
ice)
co
nn
ecti
on
co
sts
$2
1.4
6
alth
ou
gh
Ch
oru
s ca
n a
chie
ve h
igh
er r
even
ue
than
th
is w
hen
reta
il se
rvic
e p
rovi
der
s o
ffer
ser
vice
diff
eren
tiat
ion
to
en
d-u
sers
and
op
t fo
r h
igh
er b
and
wid
th c
apab
ility
fro
m C
ho
rus.
Th
ere
wer
e
also
ap
pro
xim
atel
y 78
,00
0 n
aked
En
han
ced
UB
A c
on
nec
tio
ns
at
30
Ju
ne
20
13. A
s n
ote
d e
arlie
r, th
e p
rici
ng
of
UB
A s
ervi
ces
is
curr
entl
y u
nd
er r
evie
w (s
ee t
he
com
pet
itio
n a
nd
reg
ula
tion
sec
tio
n).
In J
un
e 2
013
Ch
oru
s b
egan
off
erin
g V
DSL
at
a p
rice
alig
ned
wit
h
the
curr
ent
En
han
ced
UB
A w
ho
lesa
le p
rice
of
$2
1.4
6. V
DSL
had
pre
vio
usl
y b
een
off
ered
as
a p
rem
ium
ser
vice
wit
h c
om
mer
cial
pri
cin
g o
f $
40
.00
an
d u
pta
ke h
ad b
een
min
imal
. Th
e n
ew V
DSL
pro
du
ct is
exp
ecte
d t
o p
rovi
de
mo
re N
ew Z
eala
nd
ers
wit
h t
he
op
po
rtu
nit
y to
en
joy
hig
her
sp
eed
co
nn
ecti
on
s, a
nd
als
o m
ake
New
Zea
lan
d a
mo
re a
ttra
ctiv
e m
arke
t fo
r th
e d
evel
op
men
t an
d
dep
loym
ent
of
hig
h b
and
wid
th a
pp
licat
ion
s. F
aste
r co
pp
er-b
ased
tech
no
log
y fo
rms
an im
po
rtan
t st
epp
ing
sto
ne
to f
ibre
. Lik
e an
y
tech
no
log
y u
pg
rad
e, t
he
mo
ve t
o f
ibre
will
be
a lo
ng
ter
m t
ran
siti
on
and
VD
SL h
as a
n im
po
rtan
t ro
le in
th
e in
teri
m. T
he
nu
mb
er o
f V
DSL
con
nec
tio
ns
had
incr
ease
d t
o 4
,00
0 b
y 3
0 J
un
e 2
013
wit
h r
etai
l
serv
ice
pro
vid
ers
beg
inn
ing
to
mar
ket
it m
ore
wid
ely.
VD
SL u
tilis
es
exis
tin
g c
op
per
bas
ed c
apab
ility
an
d c
an p
rovi
de
do
wn
load
sp
eed
s o
f
abo
ut
20
-50
Mb
ps
and
up
load
sp
eed
s o
f u
p t
o 2
0M
bp
s, s
ub
ject
to
an
end
-use
r’s d
ista
nce
fro
m t
he
bro
adb
and
eq
uip
men
t an
d li
ne
cap
abili
ty.
Ch
oru
s al
so b
egan
off
erin
g a
Bas
eban
d IP
ser
vice
in A
pri
l 20
13
that
en
able
s re
tail
serv
ice
pro
vid
ers
to d
eliv
er a
Vo
ice
ove
r In
tern
et
Pro
toco
l (V
oIP
) ser
vice
ove
r co
pp
er a
s ei
ther
a s
tan
dal
on
e se
rvic
e,
or
in c
on
jun
ctio
n w
ith
bro
adb
and
. Bas
eban
d IP
is c
urr
entl
y av
aila
ble
acro
ss a
bo
ut
10%
of
Ch
oru
s’ li
nes
an
d is
ch
arg
ed a
t $
23.
52
per
mo
nth
. Wh
ile in
itia
l co
nn
ecti
on
nu
mb
ers
hav
e b
een
lim
ited
, Ch
oru
s
has
rec
eive
d p
osi
tive
inte
rest
fro
m r
etai
l ser
vice
pro
vid
ers
and
is
con
sid
erin
g t
he
bu
sin
ess
case
fo
r fu
ture
exp
ansi
on
of
the
Bas
eban
d
IP f
oo
tpri
nt.
Fib
re
Fib
re r
even
ues
are
ear
ned
fro
m C
ho
rus’
exi
stin
g b
usi
nes
s fib
re
pro
du
cts
(su
ch a
s H
SNS
Pre
miu
m) a
nd
new
UFB
res
iden
tial
an
d
bu
sin
ess
fibre
ser
vice
s. T
his
cat
ego
ry a
lso
cap
ture
s U
FB b
ackh
aul,
and
Dir
ect
Fib
re, w
hic
h is
th
e eq
uiv
alen
t o
f d
ark
fibre
an
d c
an a
lso
be
use
d t
o d
eliv
er b
ackh
aul c
on
nec
tio
ns
to m
ob
ile s
ites
.
Ab
ou
t 2
05,
50
0 e
nd
-use
rs w
ere
wit
hin
rea
ch o
f th
e U
FB n
etw
ork
at 3
0 J
un
e 2
013
. Res
iden
tial
UFB
up
take
has
bee
n c
on
stra
ined
to
dat
e b
y th
e lim
ited
nu
mb
er o
f re
tail
serv
ice
pro
vid
ers
in t
he
mar
ket
and
rel
ativ
ely
smal
l siz
e o
f co
vera
ge
area
. Tel
eco
m, N
ew Z
eala
nd
’s
larg
est
reta
il b
road
ban
d p
rovi
der
, beg
an o
ffer
ing
res
iden
tial
fib
re
serv
ices
in M
arch
20
13 a
nd
Vo
daf
on
e h
as s
aid
it a
lso
inte
nd
s to
beg
in o
ffer
ing
res
iden
tial
fib
re s
ervi
ces
late
r in
20
13. T
og
eth
er, t
hes
e
two
pro
vid
ers
rep
rese
nt
~8
0%
of
the
fixed
lin
e b
road
ban
d m
arke
t.
Ch
oru
s is
co
nti
nu
ing
to
fo
cus
on
ed
uca
tin
g r
etai
l ser
vice
pro
vid
ers
and
New
Zea
lan
der
s ab
ou
t th
e b
enef
its
of
fibre
, su
pp
ort
ing
fib
re
tria
ls, a
nd
rem
ovi
ng
bar
rier
s to
ban
dw
idth
gro
wth
.
Fib
re c
on
nec
tio
ns
gre
w s
ign
ifica
ntl
y d
uri
ng
th
e tw
elve
mo
nth
per
iod
,
incr
easi
ng
by
90
% t
o 1
9,0
00
lin
es. T
his
gro
wth
ref
lect
ed n
ew d
eman
d
linke
d t
o t
he
on
go
ing
exp
ansi
on
of
the
UFB
fo
otp
rin
t an
d c
on
tin
ued
dem
and
fo
r n
ew b
usi
nes
s an
d c
arri
er c
on
nec
tio
ns
via
Ch
oru
s’
exis
tin
g f
ibre
net
wo
rk, i
ncl
ud
ing
Ch
oru
s’ f
ibre
in a
reas
wh
ere
it is
no
t th
e U
FB n
etw
ork
bu
ilder
.
Ab
ou
t 4
4%
of
Ch
oru
s’ f
ibre
co
nn
ecti
on
s w
ere
pre
do
min
antl
y
resi
den
tial
Nex
t G
ener
atio
n A
cces
s en
d-u
sers
(wh
ich
incl
ud
es
UFB
Bit
stre
am 2
an
d 3
an
d e
du
cati
on
co
nn
ecti
on
s) o
r p
re-U
FB
fibre
su
bd
ivis
ion
en
d-u
sers
. Ch
oru
s h
ad a
pp
roxi
mat
ely
6,3
00
fib
re
con
nec
tio
ns
wit
hin
th
e ar
eas
wh
ere
it h
ad d
eplo
yed
UFB
co
mm
un
al
net
wo
rk a
t 3
0 J
un
e 2
013
. Th
is t
ota
l in
clu
des
a c
om
bin
atio
n o
f
resi
den
tial
UFB
co
nn
ecti
on
s an
d n
ew, o
r p
re-U
FB, b
usi
nes
s fib
re
con
nec
tio
ns
wit
hin
th
e ar
eas
wh
ere
Ch
oru
s’ U
FB n
etw
ork
was
bu
ilt.
Dir
ect
Fib
re A
cces
s g
rew
to
ab
ou
t 2
0%
of
tota
l fib
re c
on
nec
tio
ns
by
30
Ju
ne
20
13. B
and
wid
th F
ibre
an
d H
SNS
Pre
miu
m f
ibre
co
nn
ecti
on
s
(als
o r
efer
red
to
as
Bit
stre
am 4
un
der
th
e U
FB a
gre
emen
t) a
cco
un
ted
for
the
rem
ain
ing
36
% o
f to
tal f
ibre
co
nn
ecti
on
s. T
o d
ate,
dem
and
for
bu
sin
ess
fibre
co
nn
ecti
on
s h
as b
een
pre
do
min
antl
y fo
r h
igh
er
gra
de
HSN
S P
rem
ium
co
nn
ecti
on
s ra
ther
th
an B
itst
ream
3 b
usi
nes
s
serv
ices
. Th
is m
ay c
han
ge
ove
r ti
me
as t
he
UFB
net
wo
rk m
akes
Bit
stre
am 3
bu
sin
ess
serv
ices
mo
re w
idel
y av
aila
ble
.
Val
ue
add
ed n
etw
ork
ser
vice
s
Th
e m
ain
rev
enu
e d
rive
r fo
r th
is c
ateg
ory
is c
arri
er n
etw
ork
ser
vice
s,
wh
ich
pro
vid
e n
etw
ork
co
nn
ecti
vity
acr
oss
bac
khau
l lin
ks. T
he
nat
ure
of
thes
e se
rvic
es m
ean
s vo
lum
es a
nd
rev
enu
es in
th
is c
ateg
ory
wer
e
larg
ely
un
chan
ged
. Ch
ang
es p
erio
d o
n p
erio
d a
re la
rgel
y re
late
d t
o
tim
ing
diff
eren
ces
in in
voic
ing
, wh
ich
are
no
t ex
pec
ted
to
rec
ur.
Infr
astr
uct
ure
Infr
astr
uct
ure
rev
enu
e re
late
s to
ser
vice
s th
at p
rovi
de
acce
ss t
o
Ch
oru
s’ n
etw
ork
ass
ets,
incl
ud
ing
civ
il w
ork
s an
d t
elec
om
mu
nic
atio
ns
exch
ang
e sp
ace.
It a
lso
incl
ud
es c
o-l
oca
tio
n o
f eq
uip
men
t an
d
acce
ss t
o p
ole
s.
Ch
oru
s p
rovi
des
co
mm
erci
al a
cces
s to
its
exch
ang
es, p
ole
s
and
oth
er in
fras
tru
ctu
re. C
o-l
oca
tio
n r
even
ue
der
ives
fro
m r
etai
l
serv
ice
pro
vid
ers
and
oth
er n
etw
ork
op
erat
ors
inst
allin
g t
hei
r
equ
ipm
ent
in C
ho
rus
exch
ang
es, a
s w
ell a
s le
ased
co
mm
erci
al
spac
e in
exc
han
ge
bu
ildin
gs.
Infr
astr
uct
ure
rev
enu
e g
rew
mo
des
tly
ove
r th
e p
erio
d, a
fter
allo
win
g f
or
tran
sact
ion
typ
es t
hat
wer
e in
clu
ded
in t
he
per
iod
to 3
0 J
un
e 2
012
bu
t w
ere
trea
ted
as
a re
du
ctio
n in
exp
ense
s fo
r
the
curr
ent
per
iod
. Th
is g
row
th o
ccu
rred
pri
mar
ily a
s th
e re
sult
of
incr
ease
d d
eman
d f
or
com
mer
cial
co
-lo
cati
on
to
en
able
ret
ail
serv
ice
pro
vid
ers
to in
terc
on
nec
t w
ith
Ch
oru
s’ U
FB f
oo
tpri
nt.
Fiel
d s
ervi
ces
Th
is c
ateg
ory
incl
ud
es w
ork
per
form
ed b
y C
ho
rus’
ser
vice
co
mp
any
tech
nic
ian
s p
rovi
din
g n
ew s
ervi
ces,
ch
arg
eab
le c
able
loca
tio
n
serv
ices
, mai
nta
inin
g r
etai
l ser
vice
pro
vid
er n
etw
ork
s an
d r
elo
cati
ng
Ch
oru
s’ n
etw
ork
on
req
ues
t. A
s C
ho
rus
uti
lises
ser
vice
co
mp
anie
s
to p
erfo
rm t
he
field
ser
vice
s’ w
ork
, th
ere
is a
dir
ect
cost
ass
oci
ated
wit
h a
ll fie
ld s
ervi
ces
reve
nu
es.
Pro
visi
on
ing
rev
enu
es a
re g
ener
ally
bas
ed o
n o
rder
s fo
r te
chn
icia
ns
to in
stal
l ser
vice
s an
d a
re d
rive
n b
y th
e n
um
ber
an
d n
atu
re o
f o
rder
s,
and
th
e ty
pe
of
wo
rk r
equ
ired
.
Mai
nte
nan
ce r
even
ues
are
gen
erat
ed w
hen
fau
lts
are
pro
ven
to
be
on
th
e re
tail
serv
ice
pro
vid
er’s
, rat
her
th
an C
ho
rus’
, net
wo
rk a
nd
are
dri
ven
by
the
nu
mb
er o
f re
po
rted
fau
lts
and
pro
acti
ve m
ain
ten
ance
pro
gra
mm
es p
erfo
rmed
on
beh
alf
of
reta
il se
rvic
e p
rovi
der
s.
Th
ese
reve
nu
es a
lso
incl
ud
e co
sts
reco
vere
d f
or
dam
age
to C
ho
rus’
net
wo
rk b
y th
ird
par
ties
.
Rev
enu
e in
th
is c
ateg
ory
is d
epen
den
t o
n t
hir
d p
arty
dem
and
or
dam
ages
to
a t
hird
par
ty’s
net
wo
rk. T
he
net
wo
rk m
ain
ten
ance
exp
ense
is d
iscu
ssed
in t
he
exp
end
iture
co
mm
enta
ry a
nd
has
a d
irec
t im
pac
t
on
th
e re
ven
ues
bill
ed t
o r
eco
ver
cost
s in
curr
ed. I
t is
th
eref
ore
diff
icu
lt t
o e
stab
lish
sp
ecifi
c tr
end
s in
th
is r
even
ue
cate
go
ry.
Oth
er
Th
is c
ateg
ory
incl
ud
es r
even
ues
fro
m t
he
resa
le o
f Te
leco
m’s
Inte
gra
ted
Ser
vice
s D
igit
al N
etw
ork
an
d v
oic
e re
late
d s
ervi
ces,
as w
ell a
s o
ne-
off
typ
e re
ven
ue
item
s. A
pp
roxi
mat
ely
$1
mill
ion
(30
Ju
ne
20
12: $
11 m
illio
n) w
as r
ecei
ved
fo
r C
hri
stch
urc
h e
arth
qu
ake
rela
ted
insu
ran
ce p
roce
eds.
3
For
bill
ing
pu
rpo
ses,
th
is t
ota
l in
clu
de
s in
stan
ce
s w
he
re U
CLF
S is
so
ld w
ith
UB
A c
on
ne
cti
on
s. A
lth
ou
gh
th
e U
CLF
S St
and
ard
Te
rms
De
term
inat
ion
c
on
tem
pla
tes
suc
h c
on
ne
cti
on
s as
nak
ed
UB
A c
on
ne
cti
on
s, t
he
pri
ce
ou
tco
me
is t
he
sam
e a
s if
th
ese
co
nn
ec
tio
ns
we
re b
ille
d f
or
nak
ed
UB
A a
nd
ze
ro f
or
UC
LFS/
Bas
eb
and
.
Rev
enu
e co
mm
enta
ry (c
on
t.)
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts10
* T
he
SLU
/SLE
S ac
ce
ss li
ne
cat
eg
ory
has
be
en
ad
just
ed
do
wn
by
abo
ut
7,0
00
c
on
ne
cti
on
s fo
r th
e c
urr
en
t p
eri
od
to
co
rre
ct
a d
ou
ble
co
un
tin
g o
f lin
es
that
o
cc
urr
ed
in p
rio
r p
eri
od
s.
^ A
pp
roxi
mat
ely
7,0
00
HS
NS
co
nn
ec
tio
ns
ove
r c
op
pe
r w
ere
om
itte
d in
err
or
fr
om
th
e ‘
dat
a se
rvic
es
ove
r c
op
pe
r’ c
ate
go
ry in
th
e 3
0 J
un
e 2
012
to
tal f
or
fi
xed
lin
e c
on
ne
cti
on
s.
A f
ibre
cat
ego
ry h
as b
een
intr
od
uce
d in
to t
he
bro
adb
and
co
nn
ectio
ns
sum
mar
y to
rep
rese
nt
tho
se f
ibre
co
nn
ecti
on
s th
at d
eliv
er t
he
equ
ival
ent
of
a la
yer
2 b
road
ban
d c
on
nec
tio
n. T
his
cat
ego
ry in
clu
des
Bit
stre
am 2
an
d 3
ser
vice
s o
n t
he
UFB
net
wo
rk a
s w
ell a
s su
bd
ivis
ion
s
con
nec
ted
via
Ch
oru
s’ n
on
-UFB
fib
re n
etw
ork
.
No
te:
Th
ere
may
be
fu
rth
er
adju
stm
en
ts b
etw
ee
n t
he
‘Bas
eb
and
Co
pp
er’
an
d
‘dat
a se
rvic
es
ove
r c
op
pe
r’ c
ate
go
rie
s in
fu
ture
as
Ch
oru
s c
on
tin
ue
s to
re
vie
w
the
cla
ssif
icat
ion
of
som
e le
gac
y c
on
ne
cti
on
s.
Ch
oru
s su
mm
ary
con
nec
tio
n f
acts
30
JU
NE
20
13C
ON
NE
CT
ION
S3
1 D
EC
20
12C
ON
NE
CT
ION
S3
0 J
UN
E 2
012
CO
NN
EC
TIO
NS
Tota
l fix
ed
lin
e co
nn
ec
tio
ns
1,78
4,0
00
1,79
3,0
00
1,77
6,0
00
Bas
eb
and
Co
pp
er
1,52
1,0
00
1,55
9,0
00
1,58
5,0
00
UC
LL12
2,0
00
109
,00
09
7,0
00
SLU
/SLE
S6
,00
0*
16,0
00
19,0
00
Nak
ed
Bas
ic /
En
han
ced
UB
A /
nak
ed
VD
SL
91,
00
072
,00
050
,00
0
Dat
a se
rvic
es
ove
r co
pp
er
25
,00
02
2,0
00
^15
,00
0
Fib
re19
,00
015
,00
010
,00
0
Tota
l Bro
adb
and
1,11
2,0
00
1,0
76,0
00
1,0
40
,00
0
Bas
ic U
BA
(w
ith
an
alo
gu
e v
oic
e s
erv
ice
)33
1,0
00
474
,00
06
19,0
00
Nak
ed
Bas
ic U
BA
11,0
00
9,5
00
11,0
00
En
han
ced
UB
A (
wit
h a
nal
og
ue
vo
ice
se
rvic
e)
68
0,0
00
530
,00
03
71,0
00
Nak
ed
En
han
ced
UB
A78
,00
06
0,5
00
39,0
00
VD
SL
2,0
00
NM
NM
Nak
ed
VD
SL
2,0
00
2,0
00
NM
Fib
re8
,00
0N
MN
M
Rev
enu
e co
mm
enta
ry (c
on
t.)
Exp
end
iture
co
mm
enta
ry
Op
erat
ing
exp
ense
s
20
13(1
2 M
ON
TH
S) $M
20
12(7
MO
NT
HS) $M
Lab
ou
r co
sts
67
31
Pro
visi
on
ing
512
3
Ne
two
rk m
ain
ten
ance
100
52
Oth
er
ne
two
rk c
ost
s3
72
2
Info
rmat
ion
te
ch
no
log
y co
sts
5230
Re
nt
and
rat
es
126
Pro
pe
rty
mai
nte
nan
ce12
8
Ele
ctr
icit
y13
11
Insu
ran
ce4
3
Co
nsu
ltan
ts6
5
Oth
er
40
23
Tota
l op
era
tin
g e
xpe
nse
s39
421
4
Op
erat
ing
exp
end
itu
re h
as in
crea
sed
by
7.4
% r
elat
ive
to a
nn
ual
ised
20
12 r
esu
lts
(see
no
rmal
ised
an
nu
alis
ed r
esu
lts
on
pag
e 12
),
refl
ecti
ng
on
go
ing
gro
wth
in t
he
lab
ou
r fo
rce,
incr
ease
d p
rovi
sio
nin
g
acti
vity
an
d g
reat
er n
etw
ork
mai
nte
nan
ce c
ost
s. A
reas
of
sig
nifi
can
t
chan
ge
incl
ud
e:
Lab
ou
r co
sts
of
$6
7 m
illio
n f
or
the
per
iod
rep
rese
nt
staf
f co
sts
that
are
no
t ca
pit
alis
ed. A
t 3
0 J
un
e 2
013
Ch
oru
s h
ad 7
63
per
man
ent
and
fix
ed t
erm
em
plo
yees
. Th
is w
as u
p f
rom
54
8 e
mp
loye
es a
t
30
Ju
ne
20
12 a
nd
incl
ud
es a
bo
ut
90
cu
sto
mer
ser
vice
s em
plo
yees
tran
siti
on
ed f
rom
Tel
eco
m in
late
Oct
ob
er. A
dd
itio
nal
peo
ple
hav
e
bee
n e
mp
loye
d t
o s
up
po
rt c
riti
cal p
rog
ram
mes
, su
ch a
s th
e U
FB
rollo
ut
and
IT s
yste
ms
tran
siti
on
(see
als
o IT
co
mm
enta
ry in
th
e
cap
ital e
xpen
ditu
re s
ecti
on
), an
d g
row
ing
leve
ls o
f o
per
atio
nal
acti
vity
, su
ch a
s co
mp
lex
pro
visi
on
ing
an
d f
ibre
pro
visi
on
ing
wo
rk.
It is
exp
ecte
d t
hat
fu
rth
er IT
sta
ff w
ill b
e re
qu
ired
to
su
pp
ort
th
e
syst
ems
tran
siti
on
ove
r th
e co
min
g t
wel
ve m
on
ths,
wit
h t
he
maj
ori
ty
of
cost
s re
lati
ng
to
th
ese
add
itio
nal
peo
ple
bei
ng
cap
ital
ised
.
Pro
visi
on
ing
co
sts
are
incu
rred
wh
ere
Ch
oru
s p
rovi
des
new
or
chan
ged
ser
vice
to
ret
ail s
ervi
ce p
rovi
der
s. T
he
tota
l pro
visi
on
ing
cost
is d
rive
n b
y th
e vo
lum
e o
f o
rder
s, t
he
typ
e o
f w
ork
req
uir
ed t
o
fulf
il th
em, t
ech
nic
ian
lab
ou
r, m
ater
ial a
nd
ove
rhea
d c
ost
s. W
hile
th
e
volu
me
of
pro
visi
on
ing
tru
ck r
olls
has
dec
reas
ed p
erio
d o
n p
erio
d,
ove
rall
cost
s h
ave
incr
ease
d d
ue
to a
Co
nsu
mer
Pri
ce In
dex
(CP
I)
pri
ce in
crea
se a
nd
ch
ang
e in
th
e m
ix o
f p
rod
uct
s b
ein
g p
urc
has
ed.
As
a p
rop
ort
ion
of
pro
visi
on
ing
co
sts
are
reco
vere
d f
rom
ret
ail
serv
ice
pro
vid
ers,
fie
ld s
ervi
ces
reve
nu
e h
as in
crea
sed
as
wel
l.
Net
wo
rk m
ain
ten
ance
co
sts
rela
te t
o f
ixin
g n
etw
ork
fau
lts
and
an
y
op
erat
ion
al e
xpen
dit
ure
ari
sin
g f
rom
th
e p
roac
tive
mai
nte
nan
ce
pro
gra
mm
e. W
her
e fa
ult
s ar
e o
n a
ret
ail s
ervi
ce p
rovi
der
’s n
etw
ork
(rat
her
th
an t
he
Ch
oru
s n
etw
ork
), C
ho
rus
char
ges
th
e re
tail
serv
ice
pro
vid
er f
or
this
ser
vice
. Net
wo
rk m
ain
ten
ance
co
sts
are
dri
ven
by
the
nu
mb
er o
f re
tail
serv
ice
pro
vid
er r
epo
rted
fau
lts,
th
e ty
pe
of
wo
rk r
equ
ired
to
fix
th
e fa
ult
s an
d t
he
exte
nt
of
Ch
oru
s’ p
roac
tive
mai
nte
nan
ce p
rog
ram
me.
On
e o
f th
e ke
y d
rive
rs f
or
rep
ort
ed f
ault
s is
th
e w
eath
er. D
uri
ng
th
e
year
en
ded
30
Ju
ne
20
13, s
ever
e w
eath
er e
ven
ts in
Au
gu
st 2
012
an
d
May
20
13 r
esu
lted
in a
n in
crea
sed
am
ou
nt
of
mai
nte
nan
ce r
equ
ired
on
th
e n
etw
ork
. Ab
ou
t 74
% o
f th
e m
ain
ten
ance
wo
rk w
as o
n t
he
Ch
oru
s n
etw
ork
an
d t
his
was
no
t re
cove
rab
le (c
om
par
ed t
o 7
1% o
n
the
Ch
oru
s n
etw
ork
in t
he
per
iod
to
30
Ju
ne
20
12).
Th
e le
vel,
typ
e
and
co
st o
f fa
ult
s is
aff
ecte
d b
y fa
cto
rs s
uch
as
rain
fall,
lig
htn
ing
,
net
wo
rk d
egra
dat
ion
, lab
ou
r co
sts,
mat
eria
l co
sts
and
net
wo
rk g
row
th.
Ch
oru
s n
etw
ork
fau
lts
are
typ
ical
ly m
ore
exp
ensi
ve t
han
ret
ail s
ervi
ce
pro
vid
er n
etw
ork
fau
lts
bec
ause
th
ey c
an s
pan
mu
ltip
le e
nd
-use
rs,
req
uir
e re
sto
rati
on
of
mo
re c
om
ple
x n
etw
ork
ele
men
ts a
nd
invo
lve
rein
stat
emen
t. In
ad
dit
ion
, th
e n
etw
ork
mai
nte
nan
ce c
har
ges
fro
m
serv
ice
com
pan
ies
incr
ease
d in
lin
e w
ith
CP
I du
rin
g t
he
per
iod
.
Bo
th p
rovi
sio
nin
g a
nd
net
wo
rk m
ain
ten
ance
co
sts
con
tain
an
elem
ent
of
serv
ice
com
pan
y o
verh
ead
. In
th
e ye
ar t
o 3
0 J
un
e 2
013
this
has
bee
n a
cco
un
ted
fo
r o
n a
str
aig
ht
line
bas
is. I
n t
he
pre
vio
us
per
iod
th
ey w
ere
acco
un
ted
fo
r o
n a
n a
ctiv
ity
bas
is.
Oth
er n
etw
ork
co
sts
rela
te t
o c
ost
s as
soci
ated
wit
h s
ervi
ce p
artn
er
con
trac
t co
sts,
en
gin
eeri
ng
ser
vice
s an
d t
he
cost
of
net
wo
rk s
par
es.
Info
rmat
ion
tec
hn
olo
gy
cost
s o
f $
52
mill
ion
rep
rese
nt
the
cost
s p
aid
dir
ectl
y b
y C
ho
rus
to t
hir
d p
arty
ven
do
rs, a
s w
ell a
s th
e o
per
atin
g
exp
end
itu
re c
om
po
nen
t o
f sy
stem
s cu
rren
tly
shar
ed w
ith
Tel
eco
m.
Ch
oru
s M
anag
em
en
t C
om
me
nta
ry
11
Du
rin
g t
he
year
en
ded
30
Ju
ne
20
13 C
ho
rus
star
ted
a n
um
ber
of
pro
ject
s to
en
able
mig
rati
on
fro
m T
elec
om
sys
tem
s. T
his
res
ult
ed
in a
sm
all a
mo
un
t o
f in
crea
sed
sp
end
bec
ause
Ch
oru
s is
est
ablis
hin
g
syst
ems
wh
ich
are
sti
ll p
aid
fo
r in
th
e Tr
ansi
tio
nal
Ser
vice
s A
gre
emen
t.
Ren
t an
d r
ates
, pro
per
ty m
ain
ten
ance
, ele
ctri
city
an
d in
sura
nce
cost
s re
late
to
th
e o
per
atio
n o
f C
ho
rus’
net
wo
rk e
stat
e (f
or
exam
ple
,
exch
ang
es, r
adio
sit
es a
nd
ro
adsi
de
cab
inet
s). T
he
pri
nci
pal
co
st is
elec
tric
ity,
use
d t
o o
per
ate
the
net
wo
rk e
lect
ron
ics,
an
d t
his
is
dep
end
ent
on
th
e n
um
ber
of
site
s, e
lect
rici
ty c
on
sum
pti
on
an
d
elec
tric
ity
pri
ces.
Ele
ctri
city
co
sts
wer
e d
ow
n c
om
par
ed t
o t
he
pre
vio
us
per
iod
larg
ely
du
e to
low
er n
atio
nal
ele
ctri
city
pri
ces.
In a
dd
itio
n t
o t
his
,
con
sum
pti
on
is lo
wer
th
an t
he
pre
vio
us
per
iod
as
a n
um
ber
of
ener
gy
savi
ng
init
iati
ves
hav
e re
du
ced
en
erg
y u
sag
e. C
ho
rus
hed
ges
its
elec
tric
ity
usa
ge
to m
inim
ise
vola
tilit
y in
ele
ctri
city
sp
ot
pri
ces.
Ab
ou
t 5
0%
of
Ch
oru
s’ r
equ
irem
ents
hav
e b
een
hed
ged
wit
h a
ro
llin
g
thre
e ye
ar h
ori
zon
.
Co
nsu
ltan
t co
sts
for
the
seve
n m
on
ths
to 3
0 J
un
e 2
012
was
sig
nifi
can
t as
a r
esu
lt o
f d
emer
ger
an
d t
he
wo
rk r
equ
ired
to
esta
blis
h C
ho
rus
as a
sta
nd
alo
ne
bu
sin
ess.
Th
ese
cost
s ar
e n
o
lon
ger
bei
ng
incu
rred
bu
t a
sig
nifi
can
t am
ou
nt
of
con
sult
ant
spen
d
was
req
uir
ed in
th
e ye
ar t
o 3
0 J
un
e 2
013
to
su
pp
ort
mu
ltip
le
stre
ams
of
reg
ula
tory
wo
rk.
‘Oth
er’ i
ncl
ud
es e
xpen
dit
ure
incu
rred
by
Ch
oru
s fo
r sh
ared
ser
vice
s
pro
vid
ed b
y Te
leco
m, t
og
eth
er w
ith
gen
eral
co
sts
such
as
adve
rtis
ing
,
trav
el, t
rain
ing
an
d le
gal
fee
s.
Dep
reci
atio
n a
nd
am
ort
isat
ion
20
13(1
2 M
ON
TH
S) $M
20
12(7
MO
NT
HS) $M
EST
IMA
TE
D
USE
FUL
LIFE
(YE
AR
S)
WE
IGH
TE
DA
VE
RA
GE
U
SEFU
L LI
FE(Y
EA
RS)
De
pre
ciat
ion
:
Co
pp
er
cab
les
66
41
10 -
30
22
Fib
re c
able
s29
1320
20
Du
cts
an
d m
anh
ole
s16
750
50
Cab
ine
ts33
155
- 14
10
Pro
pe
rty
148
5 -
5016
Ne
two
rk e
lec
tro
nic
s9
56
22
- 14
8
Oth
er
95
2 -
156
Less
: C
row
n f
un
din
g(4
)(1
)
Tota
l de
pre
ciat
ion
258
150
Am
ort
isat
ion
:
So
ftw
are
6
039
2 –
85
Oth
er
inta
ng
ible
s1
-6
- 2
020
Tota
l am
ort
isat
ion
61
39
Th
e w
eig
hte
d a
vera
ge
use
ful l
ife r
epre
sen
ts t
he
use
ful l
ife in
eac
h
cate
go
ry w
eig
hte
d b
y th
e n
et b
oo
k va
lue
of
the
asse
ts.
Du
rin
g t
he
year
en
ded
30
Ju
ne
20
13 $
672
mill
ion
of
net
wo
rk
asse
ts w
as c
apit
alis
ed. T
he
‘UFB
co
mm
un
al a
nd
UFB
co
nn
ecti
on
s
and
fib
re la
yer
2’ i
ncl
ud
ed in
‘fib
re’ c
apit
al e
xpen
dit
ure
was
larg
ely
cap
ital
ised
ag
ain
st t
he
net
wo
rk a
sset
s ca
teg
ori
es o
f fib
re c
able
s (3
5%
)
and
du
cts
and
man
ho
les
(56
%).
Th
e av
erag
e d
epre
ciat
ion
rat
e fo
r
UFB
co
mm
un
al in
fras
tru
ctu
re s
pen
d is
cu
rren
tly
37
year
s, r
efle
ctin
g
the
very
hig
h p
rop
ort
ion
of
lon
g li
fe a
sset
s b
ein
g c
on
stru
cted
(wit
h
du
cts
and
man
ho
les
hav
ing
a d
epre
ciat
ion
rat
e o
f 5
0 y
ears
).
Th
e d
epre
ciat
ion
pro
file
is e
xpec
ted
to
ch
ang
e, r
efle
ctin
g t
he
gre
ater
mix
of
lon
ger
dat
ed a
sset
s as
th
e U
FB a
nd
RB
I ro
llou
ts p
rog
ress
.
Th
e C
row
n f
un
din
g r
elea
se a
gai
nst
dep
reci
atio
n is
als
o e
xpec
ted
to
incr
ease
ove
r ti
me
as a
dd
itio
nal
cal
l no
tice
s ar
e is
sued
an
d f
un
din
g
is r
ecei
ved
fro
m t
he
Cro
wn
, wit
h t
he
asso
ciat
ed a
mo
rtis
atio
n t
o
dep
reci
atio
n in
crea
sin
g a
cco
rdin
gly
.
Soft
war
e a
nd
oth
er
inta
ng
ible
s la
rge
ly c
on
sist
of
the
so
ftw
are
com
po
nen
ts o
f bill
ing
, pro
visi
on
ing
an
d o
per
atio
nal
sys
tem
s (in
clu
din
g
Ch
oru
s sp
end
on
Tel
eco
m o
wn
ed s
yste
ms)
. A t
ota
l $4
2 m
illio
n o
f
cap
ital
exp
end
itu
re w
as s
pen
t o
n s
oft
war
e an
d o
ther
inta
ng
ible
s
du
rin
g t
he
year
, wh
ich
will
be
amo
rtis
ed o
ver
an a
vera
ge
of
five
year
s.
Net
fin
ance
exp
ense
20
13(1
2 M
ON
TH
S) $M
20
12(7
MO
NT
HS) $M
Fin
ance
inco
me
(7)
(4)
Fin
ance
exp
en
se
Inte
rest
on
syn
dic
ate
d b
ank
fac
ility
5832
Inte
rest
on
EM
TN
46
27
Oth
er
inte
rest
exp
en
se16
16
Cap
ital
ise
d in
tere
st(6
)(3
)
Tota
l fin
ance
exp
en
ses
exc
lud
ing
Cro
wn
fu
nd
ing
114
72
CFH
se
cu
riti
es
(no
tio
nal
inte
rest
) 1
-
Tota
l fin
ance
exp
en
se11
572
At
a m
inim
um
, Ch
oru
s ai
ms
to m
ain
tain
50
per
cen
t o
f it
s d
ebt
ob
ligat
ion
s at
a f
ixed
rat
e o
f in
tere
st. I
t h
as f
ully
hed
ged
th
e fo
reig
n
exch
ang
e ex
po
sure
on
th
e E
uro
Med
ium
Ter
m N
ote
(EM
TN
) wit
h
cro
ss c
urr
ency
inte
rest
rat
e sw
aps.
Th
e fl
oat
ing
inte
rest
on
th
ese
der
ivat
ives
has
bee
n h
edg
ed u
sin
g in
tere
st r
ate
swap
inst
rum
ents
.
Th
e ex
po
sure
to
flo
atin
g r
ate
inte
rest
on
th
e sy
nd
icat
ed b
ank
faci
lity
has
bee
n r
edu
ced
usi
ng
inte
rest
rat
e sw
aps.
As
at 3
0 J
un
e 2
013
, ap
pro
xim
atel
y 6
6%
(30
Ju
ne
20
12: 7
0%
)
of
the
ou
tsta
nd
ing
deb
t o
blig
atio
n w
as f
ixed
th
rou
gh
der
ivat
ive
or
fixed
rat
e d
ebt
arra
ng
emen
ts.
Oth
er in
tere
st e
xpen
se in
clu
des
fin
ance
leas
e in
tere
st o
f $
13 m
illio
n
(30
Ju
ne
20
12: $
9 m
illio
n) a
nd
$2
mill
ion
inte
rest
in r
elat
ion
to
sh
ared
and
net
wo
rk s
yste
ms.
In t
he
per
iod
en
din
g 3
0 J
un
e 2
012
th
ere
was
a n
on
-cas
h c
har
ge
of
$7
mill
ion
. Th
e n
on
-cas
h c
har
ge
refl
ects
the
mar
k to
mar
ket
imp
act
of
the
un
hed
ged
deb
t p
osi
tio
n f
rom
1 D
ecem
ber
20
11 t
o 1
4 F
ebru
ary
20
12, w
hen
th
e d
ebt
was
en
tere
d
into
a h
edg
e re
lati
on
ship
. At
14 F
ebru
ary
20
12, w
hen
th
e h
edg
ed
rela
tio
nsh
ip w
as in
itia
ted
, EM
TN
rel
ated
hed
ges
had
a f
air
valu
e o
f
$70
mill
ion
. Wh
ile t
he
hed
ge
rem
ain
s ef
fect
ive
any
futu
re g
ain
s o
r
loss
es w
ill b
e p
roce
ssed
th
rou
gh
th
e h
edg
e re
serv
e, h
ow
ever
th
e
$70
mill
ion
will
flo
w a
s in
effe
ctiv
enes
s to
inte
rest
exp
ense
in t
he
inco
me
stat
emen
t at
so
me
tim
e o
ver
the
life
of
the
der
ivat
ives
.
It w
ill b
e a
no
n-c
ash
ch
arg
e. N
eith
er t
he
dire
ctio
n, n
or
the
rate
of
the
imp
act
on
th
e in
com
e st
atem
ent
can
be
pre
dic
ted
. Fo
r th
e cu
rren
t
finan
cial
yea
r th
ere
has
bee
n n
o in
effe
ctiv
enes
s an
d t
her
efo
re n
o
imp
act
on
th
e in
com
e st
atem
ent
(30
Ju
ne
20
12: n
o in
effe
ctiv
enes
s).
Taxa
tio
n
Th
e 2
013
eff
ecti
ve t
ax r
ate
of
28
% e
qu
ates
to
th
e st
atu
tory
rat
e
of
28
%. T
her
e ar
e n
o m
ater
ial d
iffer
ence
s b
etw
een
net
ear
nin
gs
bef
ore
inco
me
tax
and
wh
at is
, or
will
be,
tax
able
fo
r th
e p
erio
d
to 3
0 J
un
e 2
013
.
Exp
end
iture
co
mm
enta
ry (c
on
t.)
Ch
oru
s M
anag
em
en
t C
om
me
nta
ry12
No
rmal
ised
an
nu
alis
ed r
esu
lts
Ind
icat
ive
com
par
iso
n o
f n
orm
alis
ed, a
nn
ual
ised
fu
ll
year
res
ult
s
Th
is s
ecti
on
pro
vid
es a
hig
h le
vel t
ren
d a
nal
ysis
of
the
no
rmal
ised
,
ann
ual
ised
fu
ll ye
ar r
esu
lts.
Th
e co
mm
enta
ry in
clu
ded
her
e is
fo
r
info
rmat
ion
pu
rpo
ses
on
ly. T
hes
e re
sult
s h
ave
no
t b
een
au
dit
ed.
Sum
mar
y
NO
RM
ALI
SED
FY
13
$M
NO
RM
ALI
SED
A
NN
UA
LISE
D
FY12
$
M%
Op
erat
ing
rev
enu
e1,
04
81,
013
3.5
Op
era
tin
g e
xpe
nse
s(3
94
)(3
67)
7.4
EB
ITD
A6
54
64
61.
2
Th
e ta
ble
ab
ove
sh
ow
s co
mp
arab
le u
nd
erly
ing
res
ult
s fo
r n
orm
alis
ed
FY13
wh
en c
om
par
ed t
o n
orm
alis
ed, a
nn
ual
ised
FY
12. T
he
det
ails
of
the
no
rmal
isat
ion
s an
d a
dju
stm
ents
will
be
dis
cuss
ed in
fu
rth
er d
etai
l
late
r in
th
is s
ecti
on
.
No
rmal
ised
FY
13 h
as s
ho
wn
go
od
rev
enu
e g
row
th a
nd
wh
ile
exp
ense
s h
ave
incr
ease
d t
her
e h
as s
till
bee
n s
olid
EB
ITD
A g
row
th
bet
wee
n t
he
two
per
iod
s.
Op
erat
ing
rev
enu
e
NO
RM
ALI
SED
FY
13
$M
NO
RM
ALI
SED
A
NN
UA
LISE
D
FY12
$
M%
Bas
ic c
op
pe
r6
23
66
5(6
.3)
En
han
ced
co
pp
er
215
152
41.
4
Fib
re6
04
82
5.0
Val
ue
ad
de
d n
etw
ork
se
rvic
es
37
3119
.4
Infr
astr
uc
ture
1724
(29
.2)
Fie
ld s
erv
ice
s8
58
14
.9
Oth
er
1112
(8.3
)
Tota
l op
era
tin
g r
eve
nu
e1,
04
81,
013
3.5
Th
e d
eclin
e in
bas
ic c
op
per
rev
enu
es is
slig
htl
y lo
wer
wh
en t
he
imp
act
of
the
UC
LFS
pri
ce c
han
ge
is e
xclu
ded
. Th
ere
has
bee
n
con
tinu
ed m
igra
tion
fro
m b
asic
co
pp
er t
o e
nh
ance
d c
op
per
, bu
t th
e
tota
l co
mb
ined
rev
enu
e fo
r th
ese
two
rev
enu
e st
ream
s h
as g
row
n
by
$2
0 m
illio
n (o
r 2
.6%
) ove
r th
e p
erio
d. T
his
ref
lect
s th
e o
ng
oin
g
incr
ease
in b
road
ban
d c
on
nec
tio
ns.
All
oth
er r
even
ue
cate
go
ries
are
un
chan
ged
, so
no
ad
dit
ion
al
com
men
tary
is r
equ
ired
.
Adjustmen
tsandnorm
alisationsoftheresu
lts
Bo
th t
he
curr
ent
and
pri
or
per
iod
res
ult
s co
nta
in a
nu
mb
er o
f
bal
ance
s th
at d
o n
ot
mak
e th
em d
irec
tly
com
par
able
in is
ola
tio
n.
Th
ese
bal
ance
s h
ave
bee
n r
emo
ved
fro
m t
he
bal
ance
s d
escr
ibed
abo
ve s
o t
hat
a m
ore
dir
ect
com
par
iso
n c
ou
ld b
e m
ade.
Th
e ad
just
men
ts m
ade
to t
he
bal
ance
s ar
e d
iscu
ssed
bel
ow
.
FY13
no
rmal
isat
ion
20
13
(12
MO
NT
HS) $M
LESS
: IN
SUR
AN
CE
P
RO
CE
ED
S $
M
LESS
: U
CLF
S $
M
NO
RM
ALI
SED
FY
13
$M
Op
era
tin
g r
eve
nu
e1,
057
(1)
(8)
1,0
48
Op
era
tin
g e
xpe
nse
s(3
94
)-
-(3
94
)
EB
ITD
A6
63
(1)
(8)
65
4
Incl
ud
ed in
th
e FY
13 is
$1
mill
ion
of
insu
ran
ce p
roce
eds
rece
ived
in
the
seco
nd
hal
f o
f th
e ye
ar. A
lso
ad
just
ed is
th
e im
pac
t o
f th
e ch
ang
e
in p
rice
on
UC
LFS
for
the
first
fiv
e m
on
ths
of
the
per
iod
(eff
ecti
vely
chan
gin
g t
he
pri
ce o
f U
CLF
S fo
r th
e w
ho
le y
ear
rath
er t
han
fro
m
1 D
ecem
ber
20
12).
FY12
no
rmal
ised
an
d a
nn
ual
ised
20
12
(7 M
ON
TH
S) $M
LESS
: IN
SUR
AN
CE
P
RO
CE
ED
S $
M
LESS
: U
CLF
S $
M
NO
RM
ALI
SED
2
012
$
M
NO
RM
ALI
SED
A
NN
UA
LISE
D
FY12
$
M
Op
era
tin
g r
eve
nu
e6
13(1
1)(1
1)59
11,
013
Op
era
tin
g e
xpe
nse
s(2
14)
--
(214
)(3
67)
EB
ITD
A39
9(1
1)(1
1)37
76
46
Th
e se
ven
mo
nth
res
ult
s fo
r 2
012
co
nta
in $
11 m
illio
n in
sura
nce
pro
ceed
s re
lati
ng
to
th
e C
ante
rbu
ry e
arth
qu
akes
. Th
ese
are
on
e-o
ff
in n
atu
re a
nd
no
t ex
pec
ted
to
rec
ur.
Als
o e
xclu
ded
is t
he
imp
act
of
the
red
uct
ion
in p
rice
of
UC
LFS,
wit
h t
he
resu
ltin
g n
um
ber
th
en
ann
ual
ised
to
pro
vid
e a
twel
ve m
on
th p
erio
d.
Ch
oru
s M
anag
em
en
t C
om
me
nta
ry
13
Cap
ital e
xpen
ditu
re c
om
men
tary
20
13(1
2 M
ON
TH
S) $M
20
12(7
MO
NT
HS) $M
Fib
re57
927
4
Co
pp
er
69
49
Co
mm
on
33
23
Gro
ss c
apit
al e
xpe
nd
itu
re6
81
34
6
Ch
oru
s re
po
rts
cap
ital
exp
end
itu
re in
th
ree
cate
go
ries
ref
lect
ing
its
core
net
wo
rk a
sset
an
d b
uild
pro
gra
mm
es.
•‘Fibre’includesspen
dspec
ifica
llyfocu
sedonfibreassets
(laye
r 0
an
d la
yer
1 U
FB n
etw
ork
ass
ets)
to
su
pp
ort
th
e fib
re
net
wo
rk (I
T d
eliv
erin
g fi
bre
pro
du
cts)
an
d p
rog
ram
mes
larg
ely
focu
sed
on
fib
re (U
FB a
nd
RB
I).
•‘Copper’includesspen
doncopperrelated
networkassetsan
d
sup
po
rtin
g c
apab
ility
(su
ch a
s la
yer
2 e
lect
ron
ics)
.
•‘Common’includesaran
geofspen
dunrelatedtonetwork
asse
t cl
asse
s, s
uch
as
Ch
oru
s’ e
nte
rpri
se s
yste
ms,
bu
ildin
gs
and
offi
ce e
qu
ipm
ent.
Gro
ss c
apit
al e
xpen
dit
ure
fo
r th
e tw
elve
mo
nth
s to
30
Ju
ne
20
13
was
$6
81
mill
ion
, wh
ich
is c
on
sist
ent
wit
h t
he
mid
po
int
of
the
gu
idan
ce r
ang
e p
rovi
ded
in F
ebru
ary
afte
r ad
just
ing
fo
r an
ad
dit
ion
al
$14
mill
ion
of
year
3 U
FB b
uild
init
iate
d in
th
is f
inan
cial
yea
r (a
nd
reco
gn
ised
in w
ork
in p
rog
ress
).
Fib
re c
apit
al e
xpen
dit
ure
20
13(1
2 M
ON
TH
S) $M
20
12(7
MO
NT
HS) $M
UFB
co
mm
un
al36
216
2
UFB
co
nn
ec
tio
ns
and
fib
re la
yer
231
13
Fib
re p
rod
uc
ts a
nd
sys
tem
s27
7
Oth
er
fib
re c
on
ne
cti
on
s an
d g
row
th53
33
RB
I10
659
Tota
l fib
re c
apit
al e
xpe
nd
itu
re57
927
4
Fib
re c
apit
al e
xpen
dit
ure
rep
rese
nts
ab
ou
t 8
5%
of
Ch
oru
s’ g
ross
cap
ital
exp
end
itu
re s
pen
d, m
ain
ly f
or
the
UFB
an
d R
BI p
rog
ram
mes
.
Sig
nifi
can
t p
rog
ress
was
mad
e in
co
nti
nu
ing
to
ram
p u
p t
he
pac
e
of
the
UFB
co
mm
un
al n
etw
ork
dep
loym
ent
du
rin
g t
he
twel
ve m
on
ths.
Bu
ild w
ork
has
bee
n c
om
ple
ted
fo
r ab
ou
t 15
3,0
00
pre
mis
es a
t
30
Ju
ne
20
13, e
xcee
din
g t
he
cum
ula
tive
tar
get
of
149
,00
0 p
rem
ises
pas
sed
an
d r
epre
sen
tin
g t
he
add
itio
n o
f 11
1,0
00
pre
mis
es p
asse
d
du
rin
g t
he
per
iod
. Th
ere
are
20
5,5
00
en
d-u
sers
ab
le t
o b
e
con
nec
ted
to
th
e U
FB n
etw
ork
.
In F
ebru
ary,
Ch
oru
s u
pd
ated
its
gu
idan
ce o
n t
he
esti
mat
ed c
ost
to b
uild
th
e U
FB c
om
mu
nal
net
wo
rk b
y th
e en
d o
f 2
019
, in
crea
sin
g
it f
rom
$1.
4 -
$1.
6 b
illio
n t
o $
1.7
- $
1.9
bill
ion
. Th
is r
evis
ed g
uid
ance
refl
ecte
d h
igh
er t
han
exp
ecte
d c
ost
per
pre
mis
es p
asse
d (C
PP
P) w
ith
the
rollo
ut
no
t ye
t st
and
ard
ised
, po
siti
ve r
esu
lts
in s
om
e ar
eas
bei
ng
off
set
by
extr
eme
cost
s in
a s
mal
l gro
up
of
area
s, s
ign
ifica
nt
vari
abili
ty
in r
egio
nal
co
mp
lian
ce r
equ
irem
ents
an
d c
ost
ben
efit
s fr
om
init
iati
ves
taki
ng
lon
ger
to
mat
eria
lise.
Th
e co
st o
f th
e d
eplo
ymen
t o
f U
FB c
om
mu
nal
net
wo
rk f
or
the
twel
ve m
on
ths
was
$3
62
mill
ion
. As
the
UFB
pro
gra
mm
e b
eco
mes
mo
re li
ke a
pro
du
ctio
n li
ne,
wo
rk in
an
y fin
anci
al y
ear
will
als
o in
clu
de
wo
rk s
ched
ule
d t
o b
e co
mp
lete
d in
th
e fo
llow
ing
dep
loym
ent
year
.
As
at 3
0 J
un
e 2
013
, $3
0 m
illio
n h
ad b
een
sp
ent
on
wo
rk in
pro
gre
ss
for
UFB
co
mm
un
al d
eplo
ymen
t sc
hed
ule
d t
o b
e co
mp
lete
d in
th
e
follo
win
g y
ear.
Th
e av
erag
e co
st p
er p
rem
ises
pas
sed
was
$2
,93
5 (w
hen
incl
ud
ing
3,70
0 ‘g
reen
field
s’ a
nd
exi
stin
g b
road
ban
d o
ver
fibre
pre
mis
es w
her
e
no
mat
eria
l cap
ex w
as in
curr
ed d
uri
ng
th
e tw
elve
mo
nth
s) o
r $
3,0
48
if o
nly
co
un
tin
g p
rem
ises
wh
ere
cap
ital
exp
end
itu
re w
as in
curr
ed a
s
par
t o
f th
is y
ear’s
bu
ild p
rog
ram
me.
Ch
oru
s h
as p
revi
ou
sly
pro
vid
ed g
uid
ance
of
an a
vera
ge
cost
to
con
nec
t st
and
ard
res
iden
tial
en
d-u
ser
pre
mis
es o
f $
90
0 t
o $
1,10
0
(rea
l) ac
ross
th
e U
FB r
ollo
ut.
As
exp
ecte
d, i
nit
ial c
ost
s ar
e ab
ove
th
is,
refl
ecti
ng
th
e st
art
up
nat
ure
of
this
pro
gra
mm
e an
d la
ck o
f vo
lum
e
to s
up
po
rt s
cale
eff
icie
nci
es. I
n N
ove
mb
er, C
ho
rus
ann
ou
nce
d t
hat
it w
as c
on
trib
uti
ng
$2
0 m
illio
n o
f fu
nd
ing
to
su
pp
ort
fre
e in
stal
lati
on
for
resi
den
tial
en
d-u
sers
in t
he
earl
y st
age
of
the
UFB
ro
llou
t.
Ch
oru
s al
read
y fu
nd
s th
e fir
st 1
5 m
etre
s o
f n
ew t
ren
chin
g t
o c
on
nec
t
a h
om
e, o
r u
p t
o 1
00
met
res
of
fibre
wh
ere
ther
e is
an
ava
ilab
le d
uct
,
or
a si
ng
le o
verh
ead
aer
ial s
pan
. Th
e fu
nd
ing
will
be
use
d t
o c
ove
r
the
incr
emen
tal c
ost
of
con
nec
tin
g r
esid
ence
s th
at a
re b
eyo
nd
th
ese
dis
tan
ces,
up
to
20
0 m
etre
s.
Inve
stm
ent
in f
ibre
rel
ated
pro
du
cts
and
sys
tem
s d
evel
op
men
t
was
$2
7 m
illio
n. T
his
sp
end
rel
ates
to
new
sys
tem
s to
imp
rove
the
ord
erin
g a
nd
pro
visi
on
ing
pro
cess
fo
r fib
re c
on
nec
tio
ns.
Cap
ital
exp
end
itu
re o
f $
53
mill
ion
on
oth
er f
ibre
co
nn
ecti
on
s an
d
gro
wth
ref
lect
s d
eman
d f
or
fibre
co
nn
ecti
on
s in
are
as w
her
e U
FB
has
no
t ye
t b
een
dep
loye
d, n
ew ‘g
reen
field
’ fib
re s
ub
div
isio
ns,
fib
re
lifec
ycle
inve
stm
ent
and
reg
ion
al b
ackh
aul c
on
nec
tio
ns
for
reta
il
serv
ice
pro
vid
er d
ata
traf
fic. C
ho
rus
exp
ects
to
see
a t
ran
siti
on
ove
r
tim
e b
etw
een
th
is c
ateg
ory
an
d U
FB r
elat
ed c
apit
al e
xpen
dit
ure
as t
he
UFB
net
wo
rk f
oo
tpri
nt
gro
ws.
Th
e R
ura
l Bro
adb
and
Init
iati
ve c
on
tin
ued
at
pac
e w
ith
2,1
50
kilo
met
res
of
fibre
laid
by
30
Ju
ne
20
13, b
rin
gin
g b
ette
r b
road
ban
d
wit
hin
rea
ch o
f 77
9 s
cho
ols
an
d 5
1,2
00
ru
ral e
nd
-use
rs s
ince
th
e
star
t o
f th
e p
rog
ram
me.
So
me
of
this
wo
rk w
as b
rou
gh
t fo
rwar
d
fro
m f
utu
re y
ears
of
the
rollo
ut
pro
gra
mm
e. T
he
RB
I is
sch
edu
led
to b
e co
mp
lete
d in
20
16 a
nd
Ch
oru
s’ r
ole
is t
o d
eplo
y n
etw
ork
du
ct a
nd
fib
re (l
arg
ely
gra
nt
fun
ded
, see
co
ntr
ibu
tion
s to
cap
ital
exp
end
iture
sec
tio
n b
elo
w) t
o c
on
nec
t sc
ho
ols
, ho
spit
als,
wir
eles
s
bro
adb
and
to
wer
s an
d o
ther
pri
ori
ty u
sers
in r
ura
l are
as. C
ho
rus
is a
lso
dep
loyi
ng
cab
inet
s an
d c
abin
et e
lect
ron
ics
to e
xpan
d it
s
bro
adb
and
fo
otp
rin
t as
par
t o
f th
e p
rog
ram
me.
Ch
oru
s ex
pec
ts
to r
ecei
ve a
pp
roxi
mat
ely
$2
36
mill
ion
in G
ove
rnm
ent
gra
nt
fun
din
g
for
the
RB
I, w
ith
th
e g
ran
t co
veri
ng
ab
ou
t 8
0-8
5%
of
Ch
oru
s’ a
nn
ual
RB
I cap
ital
exp
end
itu
re.
Co
pp
er c
apit
al e
xpen
dit
ure
20
13(1
2 M
ON
TH
S) $M
20
12(7
MO
NT
HS) $M
Ne
two
rk s
ust
ain
3320
Co
pp
er
con
ne
cti
on
s2
114
Co
pp
er
laye
r 2
812
Pro
du
ct
fixe
d7
3
Tota
l co
pp
er
cap
ital
exp
en
dit
ure
69
49
Co
pp
er c
apit
al e
xpen
dit
ure
was
$6
9 m
illio
n f
or
the
per
iod
, ref
lect
ing
the
on
go
ing
sh
ift in
fo
cus
to f
ibre
rel
ated
cap
ital
exp
end
itu
re.
Net
wo
rk s
ust
ain
ref
ers
to c
apit
al e
xpen
dit
ure
wh
ere
the
net
wo
rk
is b
ein
g u
pg
rad
ed o
r n
etw
ork
ele
men
ts s
uch
as
po
les,
cab
inet
s an
d
cab
les
are
rep
lace
d. T
his
is t
ypic
ally
wh
ere
ther
e is
ris
k o
f n
etw
ork
failu
re o
r d
egra
ded
ser
vice
fo
r en
d-u
sers
an
d n
etw
ork
rep
lace
men
t
is d
eem
ed m
ore
co
st e
ffec
tive
th
an r
eact
ive
mai
nte
nan
ce.
Cap
ital
exp
end
itu
re o
n c
op
per
co
nn
ecti
on
s o
ccu
rs w
her
e th
ere
is d
eman
d f
or
cop
per
co
nn
ecti
on
s fo
r re
sid
enti
al o
r b
usi
nes
s
end
-use
rs, s
uch
as
infil
l ho
usi
ng
or
new
bu
ildin
gs.
Dem
and
fo
r
cop
per
co
nn
ecti
on
s is
exp
ecte
d t
o d
ecre
ase
ove
r ti
me
as t
he
UFB
net
wo
rk f
oo
tpri
nt
exp
and
s an
d d
eman
d f
or
fibre
co
nn
ecti
on
s g
row
s.
Co
pp
er la
yer
2 r
efle
cts
inve
stm
ent
in n
etw
ork
ele
ctro
nic
s an
d
equ
ipm
ent
as a
co
nse
qu
ence
of
dem
and
fo
r b
road
ban
d c
apac
ity
and
gro
wth
. Th
is h
as r
edu
ced
fo
llow
ing
th
e co
ncl
usi
on
of
the
fibre
to
th
e
no
de
pro
gra
mm
e an
d is
exp
ecte
d t
o d
eclin
e fu
rth
er o
ver
tim
e in
lin
e
wit
h t
he
UFB
net
wo
rk r
ollo
ut
and
up
take
.
Cap
ital
exp
end
itu
re o
n ‘P
rod
uct
fix
ed’ i
s la
rgel
y d
rive
n b
y re
tail
serv
ice
pro
vid
er d
eman
d f
or
cop
per
rel
ated
pro
du
cts,
in t
he
curr
ent
year
th
is
larg
ely
rela
tes
to B
aseb
and
IP p
rod
uct
dev
elo
pm
ent.
Ch
oru
s M
anag
em
en
t C
om
me
nta
ry14
Co
mm
on
cap
ital
exp
end
itu
re
20
13(1
2 M
ON
TH
S) $M
20
12(7
MO
NT
HS) $M
Info
rmat
ion
te
ch
no
log
y16
12
Bu
ildin
g a
nd
en
gin
ee
rin
g s
erv
ice
s16
10
Oth
er
11
Tota
l co
mm
on
cap
ital
exp
en
dit
ure
332
3
Co
mm
on
cap
ital
exp
end
itu
re w
as $
33
mill
ion
. Ch
oru
s m
ade
a $1
6 m
illio
n in
vest
men
t in
info
rmat
ion
tec
hn
olo
gy
syst
ems
to
30
Ju
ne
20
13. T
his
sp
end
larg
ely
rela
tes
to c
han
ges
req
uir
ed
to e
xist
ing
sys
tem
s as
a r
esu
lt o
f th
e d
emer
ger
. Ch
oru
s is
co
nti
nu
ing
to u
nd
erta
ke a
sig
nifi
can
t p
rog
ram
me
of
IT s
yste
ms
dev
elo
pm
ent
as p
art
of
its
dem
erg
er c
om
mit
men
ts.
Bu
ildin
g a
nd
en
gin
eeri
ng
ser
vice
s re
flec
ts t
he
cap
ital
sp
ent
on
gro
wth
an
d p
lan
t re
pla
cem
ent
(eg
po
wer
an
d a
ir c
on
dit
ion
ing
)
at C
ho
rus
exch
ang
es, b
uild
ing
s an
d r
emo
te s
ites
.
‘Oth
er’ i
ncl
ud
es it
ems
such
as
off
ice
acco
mm
od
atio
n a
nd
eq
uip
men
t.
Co
ntr
ibu
tio
ns
to c
apit
al e
xpen
dit
ure
Ch
oru
s re
ceiv
es s
ign
ifica
nt
finan
cin
g a
nd
co
ntr
ibu
tio
ns
tow
ard
s it
s
gro
ss c
apit
al e
xpen
dit
ure
eac
h y
ear.
Du
rin
g t
he
year
to
30
Ju
ne
20
13,
Ch
oru
s re
ceiv
ed c
on
trib
uti
on
s fr
om
th
e fo
llow
ing
so
urc
es:
i) R
BI f
un
din
g: T
he
Cro
wn
is c
on
trib
uti
ng
gra
nt
fun
din
g o
f ab
ou
t
$2
36
mill
ion
to
war
ds
Ch
oru
s’ la
yer
0 a
nd
laye
r 1
cap
ital
sp
end
ove
r th
e fiv
e ye
ar R
ura
l Bro
adb
and
Init
iati
ve. T
he
gra
nt
is p
ayab
le
on
co
mp
leti
on
of
bu
ild w
ork
an
d w
ill v
ary
each
yea
r su
bje
ct t
o t
he
agre
ed b
uild
pro
gra
mm
e an
d t
he
gra
nta
ble
net
wo
rk t
hat
is b
uilt
.
For
the
year
en
ded
30
Ju
ne
20
13 $
90
mill
ion
was
rec
og
nis
ed.
ii)
Oth
er: C
ho
rus
is a
ble
to
rec
ove
r th
e co
st o
f o
ther
cap
ital
spen
d in
cer
tain
cir
cum
stan
ces.
Th
is in
clu
des
rep
laci
ng
net
wo
rk
dam
aged
by
thir
d p
arti
es, o
r in
stan
ces
wh
ere
cen
tral
or
loca
l
go
vern
men
t au
tho
riti
es a
sk C
ho
rus
to r
elo
cate
or
reb
uild
exi
stin
g
net
wo
rk. A
to
tal o
f $
12 m
illio
n w
as r
eco
gn
ised
in t
he
curr
ent
finan
cial
per
iod
an
d is
incl
ud
ed a
s p
art
of
Cro
wn
fu
nd
ing
giv
en
its
mo
des
t si
ze.
Cap
ital e
xpen
ditu
re c
om
men
tary
(co
nt.
)Lo
ng
ter
m c
apita
l man
agem
ent
Ch
oru
s’ p
rin
cip
al s
ou
rce
of
liqu
idit
y is
op
erat
ing
cas
h f
low
s
and
ext
ern
al b
orr
ow
ing
fro
m e
stab
lish
ed d
ebt
pro
gra
mm
es
such
as
the
EM
TN
an
d b
ank
faci
litie
s. C
ho
rus
also
issu
es d
ebt
and
equ
ity
secu
riti
es t
o C
FH a
s it
co
mp
lete
s re
leva
nt
UFB
mile
sto
nes
.
It a
lso
rec
eive
s g
ran
ts f
rom
th
e C
row
n in
rel
atio
n t
o it
s R
BI
bu
ild p
rog
ram
me.
Th
e C
ho
rus
Bo
ard
is c
om
mit
ted
to
mai
nta
inin
g a
‘BB
B’ l
on
g t
erm
cred
it r
atin
g f
rom
Sta
nd
ard
& P
oo
r’s a
nd
a ‘B
aa2
’ lo
ng
ter
m c
red
it
rati
ng
fro
m M
oo
dy’
s In
vest
ors
Ser
vice
. Ch
oru
s’ c
apit
al m
anag
emen
t
po
licie
s ar
e d
esig
ned
to
en
sure
th
at t
his
ob
ject
ive
is m
et in
exp
ecte
d
op
erat
ing
cir
cum
stan
ces.
It is
Ch
oru
s’ in
ten
tio
n t
hat
in n
orm
al
circ
um
stan
ces
the
rati
o o
f n
et d
ebt
to E
BIT
DA
will
no
t m
ater
ially
exce
ed 3
.5 t
imes
(net
deb
t in
clu
des
th
e se
nio
r p
ort
ion
of
CFH
deb
t
secu
riti
es a
nd
net
leas
e o
blig
atio
ns)
. Th
e ra
tio
fo
r n
et d
ebt
to E
BIT
DA
for
Ch
oru
s’ k
ey f
inan
cial
co
ven
ants
is 3
.75
tim
es.
At
30
Ju
ne
20
13, C
ho
rus
had
a lo
ng
ter
m c
red
it r
atin
g o
f B
BB
/sta
ble
by
Stan
dar
d &
Po
or’s
(30
Ju
ne
20
12: B
BB
/sta
ble
) an
d B
aa2
/neg
ativ
e
by
Mo
od
y’s
Inve
sto
rs S
ervi
ce (3
0 J
un
e 2
012
: Baa
2/s
tab
le).
Ch
oru
s M
anag
em
en
t C
om
me
nta
ry
15
Co
mp
etiti
on
an
d r
egu
latio
n
Sig
nifi
can
t ch
ang
es in
Ch
oru
s’ c
om
pet
itiv
e an
d r
egu
lato
ry
envi
ron
men
t th
at h
ave
occ
urr
ed in
th
e la
st y
ear
are
set
ou
t b
elo
w.
Th
is s
ho
uld
be
read
in c
on
jun
ctio
n w
ith
pre
vio
us
dis
clo
sure
s w
hic
h
are
avai
lab
le o
nlin
e at
: ww
w.c
ho
rus.
co.n
z/in
vest
or-
cen
tre.
Ch
oru
s O
pen
Acc
ess
Dee
ds
of
Un
der
taki
ng
Ch
oru
s is
bo
un
d b
y th
ree
op
en a
cces
s d
eed
s o
f u
nd
erta
kin
g (D
eed
s).
Th
e C
op
per
, Fib
re a
nd
Ru
ral B
road
ban
d In
itia
tive
un
der
taki
ng
s
rep
rese
nt
a se
ries
of
leg
ally
bin
din
g o
blig
atio
ns
focu
sed
aro
un
d t
he
pro
visi
on
of
serv
ices
on
a n
on
-dis
crim
inat
ory
or
equ
ival
ent
bas
is.
Ch
oru
s su
bm
itte
d a
tra
nsi
tio
n p
lan
to
th
e M
inis
ter
in la
te 2
012
rela
tin
g t
o t
he
acti
on
s re
qu
ired
to
mo
ve t
o e
nd
ing
th
e sh
arin
g
arra
ng
emen
ts b
etw
een
Tel
eco
m a
nd
Ch
oru
s, a
s re
qu
ired
by
the
Dee
ds.
Tele
com
mu
nic
atio
ns
Serv
ices
Ob
ligat
ion
s (T
SO)
and
Lev
ies
Th
e T
SO is
th
e re
gu
lato
ry m
ech
anis
m b
y w
hic
h u
niv
ersa
l
serv
ice
ob
ligat
ion
s fo
r re
sid
enti
al, l
oca
l acc
ess
and
cal
ling
ser
vice
s
are
imp
ose
d a
nd
ad
min
iste
red
. Ch
oru
s is
req
uir
ed t
o m
ain
tain
lines
an
d c
ove
rag
e o
blig
atio
ns,
an
d p
rovi
de
a vo
ice
inp
ut
serv
ice.
On
9 J
uly
20
13, t
he
Go
vern
men
t is
sued
a d
iscu
ssio
n d
ocu
men
t
on
th
e T
SO, a
s p
art
of
a sc
hed
ule
d r
evie
w, p
rop
osi
ng
a n
um
ber
of
po
ten
tial
fu
ture
op
tio
ns
for
the
TSO
, an
d in
viti
ng
vie
ws
on
an
y fu
rth
er
op
tio
ns.
Ch
oru
s is
mak
ing
su
bm
issi
on
s th
rou
gh
th
e re
view
pro
cess
.
Th
e G
ove
rnm
ent
is r
equ
ired
to
co
mp
lete
th
e re
view
by
the
end
of
20
13. T
her
e is
no
gu
aran
tee
or
cert
ain
ty o
f th
e o
utc
om
e o
f th
e
TSO
rev
iew
.
Th
e Te
leco
mm
un
icat
ion
s D
evel
op
men
t Le
vy (
TD
L) is
an
ind
ust
ry le
vy
of
$5
0 m
illio
n p
er y
ear
bet
wee
n F
Y10
an
d F
Y16
an
d $
10 m
illio
n e
ach
year
th
erea
fter
. On
27
Jun
e 2
013
, th
e C
om
mis
sio
n d
eter
min
ed t
hat
Ch
oru
s w
as li
able
fo
r $
6.4
mill
ion
of
the
TD
L fo
r FY
12.
Ch
oru
s is
als
o r
equ
ired
to
co
ntr
ibu
te t
ow
ard
s th
e C
om
mer
ce
Co
mm
issi
on
’s c
ost
s th
rou
gh
a T
elec
om
mu
nic
atio
ns
Reg
ula
tory
Levy
(T
RL)
. On
19
Ju
ly 2
013
, Ch
oru
s w
as d
eter
min
ed t
o b
e lia
ble
for
$6
90
,00
0 o
f th
e T
RL
for
FY12
.
UC
LL a
nd
SLU
pri
cin
g
Th
e te
rms,
incl
ud
ing
pri
ce, f
or
UC
LL a
nd
SLU
are
cu
rren
tly
reg
ula
ted
by
the
Co
mm
issi
on
. On
3 D
ecem
ber
20
12, t
he
Co
mm
issi
on
issu
ed
a fin
al d
ecis
ion
on
its
ben
chm
arki
ng
rev
iew
of
the
pri
ce C
ho
rus
can
ch
arg
e fo
r U
CLL
. Th
e fin
al a
vera
ged
UC
LL p
rice
of
$2
3.5
2
rep
rese
nte
d a
3.8
% d
rop
. Th
e U
CLL
pri
ce is
lin
ked
to
a n
um
ber
of
oth
er C
ho
rus
serv
ices
, mea
nin
g t
hat
th
e U
CLF
S an
d S
LU p
rice
s,
and
so
me
UB
A p
rice
s, w
ere
imp
acte
d b
y th
e d
ecis
ion
.
Aft
er t
he
final
dec
isio
n, C
ho
rus
app
lied
to
th
e C
om
mis
sio
n t
o r
evie
w
the
UC
LL p
rice
, usi
ng
a F
inal
Pri
cin
g P
rin
cip
le (F
PP
) of
Tota
l Ser
vice
Lon
g R
un
Incr
emen
tal C
ost
(T
SLR
IC).
Th
e ap
plic
atio
n w
as m
ade
on
th
e b
asis
th
at C
ho
rus
con
sid
ered
th
at t
he
init
ial p
rice
set
by
the
Co
mm
issi
on
in t
he
3 D
ecem
ber
20
12 d
ecis
ion
by
refe
ren
ce t
o
ben
chm
arki
ng
un
der
esti
mat
es t
he
TSL
RIC
of
pro
vid
ing
th
e U
CLL
in N
ew Z
eala
nd
. Tel
eco
m, V
od
afo
ne,
Cal
lPlu
s an
d K
ord
ia a
lso
mad
e
FPP
ap
plic
atio
ns
to t
he
Co
mm
issi
on
. Th
e C
om
mis
sio
n e
xpec
ts t
o
com
ple
te t
he
FPP
pro
cess
in D
ecem
ber
20
15.
UB
A p
rici
ng
Th
e te
rms,
incl
ud
ing
pri
ce, f
or
UB
A a
re c
urr
entl
y re
gu
late
d b
y
the
Co
mm
issi
on
. Un
der
th
e A
ct, t
he
Co
mm
issi
on
was
req
uir
ed
to r
evie
w t
he
UB
A p
rice
by
the
end
of
20
12. O
n 3
Dec
emb
er 2
012
,
the
Co
mm
issi
on
issu
ed a
dra
ft d
ecis
ion
on
UB
A p
rici
ng
pro
po
sin
g
a re
du
ctio
n in
pri
ce f
rom
$2
1.4
6 t
o $
8.9
3 p
er m
on
th b
ased
on
ben
chm
arki
ng
of
pri
cin
g in
tw
o c
ou
ntr
ies.
Ch
oru
s is
mak
ing
sub
mis
sio
ns
thro
ug
h t
he
ben
chm
arki
ng
pro
cess
.
Th
e C
om
mis
sio
n e
xpec
ts t
o c
om
ple
te t
he
UB
A b
ench
mar
kin
g p
roce
ss
in O
cto
ber
20
13. O
nce
th
e C
om
mis
sio
n is
sues
its
final
dec
isio
n, a
ny
par
ty c
an a
pp
ly f
or
an F
PP
TSL
RIC
rev
iew
of
the
UB
A p
rice
.
Un
bu
nd
led
Co
pp
er L
ow
Fre
qu
ency
Ser
vice
(UC
LFS)
To m
eet
its
TSO
req
uir
emen
ts, C
ho
rus
has
mad
e a
tech
no
log
y
neu
tral
vo
ice
inp
ut
serv
ice,
Bas
eban
d, a
vaila
ble
on
a c
om
mer
cial
bas
is. T
he
pri
cin
g o
f a
sub
set
of
this
ser
vice
, UC
LFS
(a v
oic
e in
pu
t
serv
ice
off
ered
ove
r th
e co
pp
er a
cces
s n
etw
ork
), is
set
at
the
aver
aged
UC
LL p
rice
as
det
erm
ined
by
the
Co
mm
issi
on
. Bec
ause
the
UC
LFS
pri
ce is
lin
ked
to
th
e U
CLL
pri
ce, a
new
UC
LFS
pri
ce
of
$2
3.5
2 p
er m
on
th a
pp
lied
fro
m 3
Dec
emb
er 2
012
(pre
vio
usl
y
$24
.46
per
mo
nth
). A
ny
chan
ge
to t
he
UC
LL p
rice
as
a re
sult
of
the
FPP
pro
cess
sh
ou
ld f
low
th
rou
gh
to
th
e U
CLF
S p
rice
.
Par
alle
l go
vern
men
t re
view
an
no
un
ced
Th
ere
is n
o c
erta
inty
aro
un
d t
he
ou
tco
me
of
Co
mm
issi
on
’s
pro
cess
es o
n a
ny
serv
ices
th
at a
re c
urr
entl
y u
nd
er r
evie
w o
r co
uld
be
revi
ewed
at
any
tim
e o
r w
het
her
th
e G
ove
rnm
ent’s
reg
ula
tory
revi
ew w
ill im
pac
t th
ose
pro
cess
es.
On
8 F
ebru
ary
the
New
Zea
lan
d G
ove
rnm
ent
ann
ou
nce
d t
hat
it w
as
bri
ng
ing
fo
rwar
d a
rev
iew
of
the
reg
ula
tory
fra
mew
ork
(reg
ula
tory
revi
ew) t
o “
…fo
cus
on
th
e lo
ng
-ter
m in
tere
sts
of
end
-use
rs o
f
tele
com
mu
nic
atio
ns
serv
ices
, tak
ing
into
acc
ou
nt
the
mar
ket
stru
ctu
re, t
ech
no
log
y d
evel
op
men
ts a
nd
co
mp
etit
ive
con
dit
ion
s in
the
tele
com
mu
nic
atio
ns
ind
ust
ry a
t th
e ti
me
of
the
revi
ew, i
ncl
ud
ing
the
imp
act
of
fibre
, co
pp
er, w
irel
ess
and
oth
er t
elec
om
mu
nic
atio
ns
net
wo
rk in
vest
men
t”4.
On
7 A
ug
ust
20
13, t
he
Go
vern
men
t re
leas
ed a
dis
cuss
ion
pap
er
on
th
e re
gu
lato
ry r
evie
w. I
n t
he
dis
cuss
ion
pap
er, t
he
Go
vern
men
t
pro
po
ses
to t
ake
a p
has
ed a
pp
roac
h t
o t
he
reg
ula
tory
rev
iew
– w
ith
an
imm
edia
te f
ocu
s o
n c
op
per
pri
cin
g. T
he
dis
cuss
ion
pap
er
pro
po
ses
that
co
pp
er (U
CLL
an
d U
BA
) pri
ces
sho
uld
be
rou
gh
ly
equ
ival
ent
wit
h c
on
trac
ted
en
try
leve
l fib
re p
rice
s (b
etw
een
$3
7.5
0-
$4
2.5
0).
Th
ere
are
thre
e o
pti
on
s p
rop
ose
d –
wh
ich
diff
er in
ter
ms
of
wh
eth
er t
he
Co
mm
issi
on
or
Go
vern
men
t se
lect
s th
e re
leva
nt
pri
ce
po
int
bet
wee
n $
37.
50
- $
42
.50
, ho
w t
he
UC
LL a
nd
UB
A c
op
per
pri
ces
are
set
wit
hin
th
at o
vera
ll ca
p a
nd
wh
eth
er n
ew p
rici
ng
ap
plie
s
fro
m N
ove
mb
er 2
014
or
No
vem
ber
20
15. W
hile
th
e o
utc
om
e o
f th
e
Go
vern
men
t’s r
egu
lato
ry r
evie
w is
un
cert
ain
, all
po
ten
tial
op
tio
ns
con
tain
ed w
ith
in t
he
dis
cuss
ion
pap
er im
ply
red
uce
d f
utu
re e
arn
ing
s
for
Ch
oru
s. T
he
dis
cuss
ion
pap
er s
ug
ges
ts a
po
ten
tial
dec
reas
e
of
Ch
oru
s’ p
rici
ng
wit
hin
a r
ang
e o
f $
2.4
8 t
o $
7.4
8 p
er b
road
ban
d
con
nec
tio
n p
er m
on
th. B
ased
on
30
Ju
ne
20
13 c
on
nec
tio
n v
olu
mes
,
Ch
oru
s an
tici
pat
es t
his
co
uld
imp
ly a
red
uct
ion
in a
nn
ual
EB
ITD
A in
the
ran
ge
of
$2
0 m
illio
n t
o $
100
mill
ion
.
Oth
er c
han
ges
are
als
o p
rop
ose
d in
clu
din
g g
ran
dfa
ther
ing
th
e
avai
lab
ility
of
the
Sub
Lo
op
Un
bu
nd
ling
(SLU
) ser
vice
. Lat
er p
has
es
of
the
reg
ula
tory
rev
iew
are
pro
po
sed
to
fo
cus
on
th
e ap
pro
pri
ate
reg
ula
tory
fra
mew
ork
on
ce t
he
UFB
bu
ild is
co
mp
lete
in 2
02
0
(am
on
gst
oth
er t
hin
gs)
. Ch
oru
s is
mak
ing
su
bm
issi
on
s th
rou
gh
the
revi
ew p
roce
ss.
Oth
er le
gis
lati
on
Ch
oru
s is
su
bje
ct t
o o
ther
leg
isla
tive
req
uir
emen
ts s
uch
as
the
req
uir
emen
ts o
f th
e C
om
mer
ce A
ct 1
98
6, F
air
Trad
ing
Act
19
86
,
as w
ell a
s te
leco
mm
un
icat
ion
s co
des
.
Ch
oru
s is
als
o s
ub
ject
to
th
e Te
leco
mm
un
icat
ion
s (In
terc
epti
on
Cap
abili
ty) A
ct 2
00
4 (t
he
Act
), w
hic
h r
equ
ires
net
wo
rk o
per
ato
rs
to e
nsu
re t
hat
eve
ry p
ub
lic t
elec
om
mu
nic
atio
ns
net
wo
rk t
hat
they
ow
n, c
on
tro
l or
op
erat
e, a
nd
eve
ry t
elec
om
mu
nic
atio
ns
serv
ice
that
th
ey p
rovi
de
in N
ew Z
eala
nd
, has
inte
rcep
tio
n c
apab
ility
mee
tin
g t
he
spec
ifica
tio
ns
set
ou
t in
th
e A
ct. I
n J
un
e 2
013
, th
e
Go
vern
men
t is
sued
a d
iscu
ssio
n p
aper
on
a r
evie
w o
f th
e A
ct.
Ch
oru
s m
ade
sub
mis
sio
ns
on
th
e d
iscu
ssio
n p
aper
on
13
Ju
ne
20
13.
Th
e re
qu
irem
ents
un
der
th
e A
ct h
ave
the
po
ten
tial
to
dri
ve s
ign
ifica
nt
com
plia
nce
co
sts.
4
htt
p:/
/be
eh
ive
.go
vt.n
z/re
leas
e/r
evi
ew
-pro
vid
e-c
ert
ain
ty-c
on
sum
ers
-in
du
stry
Litig
atio
n
Ch
oru
s h
as o
ng
oin
g c
laim
s, in
vest
igat
ion
s an
d in
qu
irie
s, n
on
e
of
wh
ich
are
cu
rren
tly
exp
ecte
d t
o h
ave
sig
nifi
can
t ef
fect
on
th
e
finan
cial
po
siti
on
or
pro
fitab
ility
of
Ch
oru
s.
Ch
oru
s ca
nn
ot
reas
on
ably
est
imat
e th
e ad
vers
e ef
fect
, if
any,
on
Ch
oru
s if
any
of
the
ou
tsta
nd
ing
cla
ims
or
inq
uir
ies
are
ult
imat
ely
reso
lved
ag
ain
st C
ho
rus’
inte
rest
. Th
ere
can
be
no
ass
ura
nce
th
at
such
cas
es w
ill n
ot
hav
e a
sig
nifi
can
t ef
fect
on
Ch
oru
s’ b
usi
nes
s,
finan
cial
po
siti
on
, an
d r
esu
lts
of
op
erat
ion
s o
r p
rofit
abili
ty.
UB
A a
nd
/or
B
ase
ban
d
Co
pp
er
o
r SL
ES
SLU
B
ackh
aul
CentralO
ffice
(e
xch
ang
e)
UB
A a
nd
/or
B
ase
ban
d
Co
pp
er
o
r SL
U
Re
tail
se
rvic
e
pro
vid
er’
s n
etw
ork
UB
A o
r U
CLL
B
ackh
aul
UB
A a
nd
/or
B
ase
ban
d
Co
pp
er
o
r U
CLL
Fib
re
Co
pp
er
Co
pp
er
fee
de
r
Co
pp
er p
rod
uct
ove
rvie
w
Ch
oru
s M
anag
em
en
t C
om
me
nta
ry16
PR
OD
UC
TD
ESC
RIP
TIO
NP
RE
VIO
US
PR
ICIN
G (
EX
CL
GST
) B
EFO
RE
DE
CE
MB
ER
20
12C
UR
RE
NT
PR
ICIN
G (
EX
CL
GST
)
Su
b L
oo
p
Ext
en
sio
n
Se
rvic
e
Allo
ws
reta
il se
rvic
e p
rovi
de
rs t
o c
on
ne
ct
a su
b lo
op
UC
LL li
ne
fro
m a
cab
ine
t to
th
e lo
cal
exc
han
ge
so
th
ey
can
off
er
ph
on
e a
nd
/or
bro
adb
and
se
rvic
e f
rom
th
e
exc
han
ge
in c
abin
eti
sed
are
as.
Co
mm
erc
ial p
ric
ing
Co
mm
erc
ial p
ric
ing
Bas
eb
and
C
op
pe
r (U
CLF
S)
A v
oic
e in
pu
t se
rvic
e a
vaila
ble
on
all
cop
pe
r lin
es
that
are
in p
lace
be
twe
en
th
e p
rem
ise
s an
d t
he
exc
han
ge
,
irre
spe
cti
ve o
f c
abin
eti
sati
on
. Th
e U
nb
un
dle
d C
op
pe
r
Low
Fre
qu
en
cy
Se
rvic
e (
UC
LFS)
is a
su
bse
t o
f th
is s
erv
ice
.
$24
.46
pe
r m
on
th$
23
.52
pe
r m
on
th
UC
LL
Th
e u
nb
un
dle
d c
op
pe
r lo
cal
loo
p s
erv
ice
. Can
be
use
d b
y re
tail
serv
ice
pro
vid
ers
to
off
er
voic
e a
nd
bro
adb
and
se
rvic
es.
Ava
ilab
le o
n c
op
pe
r lin
es
be
twe
en
the
pre
mis
es
and
th
e e
xch
ang
e w
he
re t
he
re h
as b
ee
n
no
cab
ine
tisa
tio
n.
Urb
an $
19.8
4 p
er
mo
nth
No
n-u
rban
$3
6.6
3
pe
r m
on
th
Urb
an $
19.0
8 p
er
mo
nth
No
n-u
rban
$3
5.2
0
pe
r m
on
th
Ch
ang
es
to n
atio
nal
ly
ave
rag
ed
pri
ce o
f $
23
.52
fro
m D
ece
mb
er
20
14
Nak
ed
UB
AA
n u
nb
un
dle
d b
itst
ream
se
rvic
e t
hat
is t
ake
n s
tan
dal
on
e
(i.e
. wit
ho
ut
a vo
ice
se
rvic
e a
lso
be
ing
off
ere
d o
ver
the
line
). C
an b
e u
sed
by
reta
il se
rvic
e p
rovi
de
rs t
o o
ffe
r
bro
adb
and
se
rvic
es.
$4
5.9
2 p
er
mo
nth
(fo
r B
asic
UB
A o
r
En
han
ced
UB
A 0
)
$4
4.9
8 p
er
mo
nth
(fo
r B
asic
UB
A o
r
En
han
ced
UB
A 0
)
Su
b L
oo
p
UC
LL
Th
e u
nb
un
dle
d s
ub
loo
p s
erv
ice
. Can
be
use
d b
y re
tail
serv
ice
pro
vid
ers
to
off
er
voic
e a
nd
bro
adb
and
se
rvic
es.
Ava
ilab
le o
n c
op
pe
r lin
es
be
twe
en
th
e p
rem
ise
s an
d
cab
ine
t (i.
e. o
nly
on
cab
ine
tise
d li
ne
s).
Urb
an $
11.9
8 p
er
mo
nth
No
n-u
rban
$2
2.1
2
pe
r m
on
th
Urb
an $
11.5
2 p
er
mo
nth
No
n-u
rban
$2
1.2
6
pe
r m
on
th
Su
b-l
oo
p
bac
khau
lT
he
fib
re c
on
ne
cti
on
be
twe
en
a r
eta
il se
rvic
e p
rovi
de
r’s
UC
LL e
qu
ipm
en
t in
a d
istr
ibu
tio
n c
abin
et
and
th
e
asso
cia
ted
loc
al e
xch
ang
e.
Re
gu
late
d p
ric
ing
fo
rmu
laN
o c
han
ge
UC
LL
Bac
khau
l (c
om
me
rcia
l o
r re
gu
late
d
op
tio
ns)
En
able
s ac
cess
an
d in
terc
on
ne
cti
on
wit
h o
the
r U
CLL
serv
ice
s ac
ross
th
e w
ide
r ac
cess
ne
two
rk, b
etw
ee
n
mu
ltip
le e
xch
ang
es.
Giv
es
reta
il se
rvic
e p
rovi
de
rs a
cce
ss
to t
ran
smis
sio
n c
apac
ity
so t
he
y c
an a
gg
reg
ate
th
eir
traf
fic
be
twe
en
th
e lo
cal
exc
han
ge
to
th
e h
and
ove
r p
oin
t
wit
hin
th
eir
ow
n n
etw
ork
.
Pri
cin
g v
arie
s su
bje
ct
to
cap
acit
y an
d d
ista
nce
No
ch
ang
e
Un
bu
nd
led
B
itst
ream
A
cce
ss
Allo
ws
reta
il se
rvic
e p
rovi
de
rs d
ire
ct
acce
ss t
o h
igh
spe
ed
co
pp
er
bit
stre
am a
cce
ss li
nks
, en
ablin
g t
he
m t
o
use
Ch
oru
s’ e
qu
ipm
en
t to
de
live
r h
igh
sp
ee
d b
road
ban
d
serv
ice
s. R
eta
il se
rvic
e p
rovi
de
rs c
an c
ho
ose
be
twe
en
Bas
ic o
r E
nh
ance
d v
aria
nts
of
UB
A.
$2
1.4
6 p
er
mo
nth
(fo
r
Bas
ic U
BA
FS/
FS o
r
En
han
ced
UB
A 0
)
No
ch
ang
e
VD
SL
VD
SL
is t
he
th
ird
ge
ne
rati
on
of
DS
L ac
cess
te
ch
no
log
y
targ
ete
d t
ow
ard
s h
igh
ban
dw
idth
bro
adb
and
use
rs a
nd
can
de
live
r d
ow
nlo
ad s
pe
ed
s ar
ou
nd
20
-50
Mb
ps
and
up
load
sp
ee
ds
up
to
20
Mb
ps.
Var
ied
de
pe
nd
ing
on
com
me
rcia
l pri
cin
g t
erm
s
$2
1.4
6 p
er
mo
nth
wit
h
anal
og
ue
vo
ice
or
$4
4.9
8 p
er
mo
nth
wit
ho
ut
anal
og
ue
vo
ice
Pro
du
ct o
verv
iew
Re
tail
serv
ice
p
rovi
de
r’s
ne
two
rk
Co
mm
erc
ial
Bac
khau
l o
r IC
AB
S
Bu
sin
ess
fib
re(B
itst
ream
3, 3
a o
r 4
, D
ire
ct F
ibre
or
Ban
dw
idth
Fib
re A
cce
ss)
Re
sid
en
tial
o
r h
om
e
bu
sin
ess
fib
re(B
itst
ream
2)
Fib
re
CentralO
ffice
(e
xch
ang
e)
Fib
re p
rod
uct
ove
rvie
w
Ch
oru
s M
anag
em
en
t C
om
me
nta
ry
17
PR
OD
UC
TD
ESC
RIP
TIO
NC
UR
RE
NT
PR
ICIN
G (
EX
CL
GST
)
Dir
ec
t Fi
bre
Acc
ess
Off
ers
a f
ibre
op
tic
co
nn
ec
tio
n b
etw
ee
n a
n e
nd
-use
r an
d t
he
ir
reta
il se
rvic
e p
rovi
de
r’s
eq
uip
me
nt
in t
he
loc
al e
xch
ang
e.
Co
mm
on
ly k
no
wn
as
‘dar
k fi
bre
’, it
will
typ
ical
ly s
uit
tai
lore
d
solu
tio
ns
for
larg
e b
usi
ne
sse
s o
r b
usi
ne
sse
s w
ith
th
e in
-ho
use
reso
urc
es
to m
anag
e t
he
ir o
wn
se
rvic
es.
$3
55
pe
r m
on
th
Ban
dw
idth
Fib
re A
cce
ssA
ste
p u
p f
rom
Dir
ec
t Fi
bre
Acc
ess
, th
is s
erv
ice
inc
lud
es
the
inst
alla
tio
n o
f a
Ch
oru
s m
ed
ia c
on
vert
er
at a
po
int
(or
po
ints
)
in t
he
se
rvic
e a
nd
pro
vid
es
de
dic
ate
d b
and
wid
th f
rom
en
d-u
ser
pre
mis
es
wit
h n
o s
wit
ch
ing
or
add
itio
nal
late
nc
y.
Fro
m:
$3
80
pe
r m
on
th (
up
to
10
0M
bp
s
do
wn
load
sp
ee
ds)
; $
45
5 p
er
mo
nth
(up
to
1G
bp
s d
ow
nlo
ad s
pe
ed
s; a
nd
$1,
35
5 p
er
mo
nth
(u
p t
o 1
0G
bp
s
do
wn
load
sp
ee
ds)
.
Bit
stre
am 2
A
re
lati
vely
sim
ple
bu
t fl
exi
ble
UFB
se
rvic
e f
or
intr
od
uc
ing
en
d-u
sers
to
an
en
try
leve
l se
rvic
e, w
hile
giv
ing
th
e r
eta
il
serv
ice
pro
vid
er
the
ab
ility
to
bu
ild o
n t
he
se
rvic
e a
s th
e
en
d-u
ser
de
man
ds
inc
reas
e a
nd
de
velo
p. I
t su
pp
ort
s th
e
de
velo
pm
en
t o
f m
ass
mar
ket
resi
de
nti
al o
r sm
all t
o m
ed
ium
en
terp
rise
off
eri
ng
s, a
nd
inc
lud
es
the
ab
ility
to
de
live
r e
xist
ing
voic
e s
erv
ice
s o
ver
fib
re.
Up
to
30
Mb
ps
do
wn
stre
am /
10M
bp
s
up
stre
am p
lan
fo
r $
37.
50
pe
r m
on
th;
or
up
to
10
0M
bp
s d
ow
nst
ream
/ 5
0M
bp
s
up
stre
am p
lan
fo
r $
55
.00
pe
r m
on
th.
Bit
stre
am 3
& 3
aA
fle
xib
le U
FB s
erv
ice
de
sig
ne
d t
o s
up
po
rt b
usi
ne
ss-g
rad
e
app
licat
ion
s, li
ke v
irtu
al p
riva
te n
etw
ork
s. I
t d
eliv
ers
up
to
100
Mb
ps
of
de
dic
ate
d d
ow
nst
ream
an
d u
pst
ream
ban
dw
idth
and
is id
eal
fo
r m
ed
ium
bu
sin
ess
es
or
bra
nc
h o
ffic
es.
It
has
a
wid
e r
ang
e o
f co
mm
itte
d a
nd
exc
ess
info
rmat
ion
rat
e (
CIR
/
EIR
) o
pti
on
s.
Fro
m $
175
.00
pe
r m
on
th
Bit
stre
am 4
(al
so r
efe
rre
d t
o
as H
SN
S P
rem
ium
)A
pre
miu
m U
FB a
cce
ss s
erv
ice
off
eri
ng
hig
h p
erf
orm
ance
for
corp
ora
te e
nd
-use
rs a
nd
UFB
pri
ori
ty u
sers
. It
is id
eal
fo
r
sup
po
rtin
g c
om
ple
x b
usi
ne
ss-g
rad
e a
pp
licat
ion
s fo
r la
rge
bu
sin
ess
es,
or
corp
ora
te h
ub
s, a
nd
has
a w
ide
ran
ge
of
com
mit
ted
info
rmat
ion
rat
e (
CIR
) o
pti
on
s.
Fro
m $
38
0 p
er
mo
nth
(u
p t
o 1
00
Mb
ps
do
wn
load
sp
ee
ds)
;
$4
55
pe
r m
on
th (
up
to
1G
bp
s
do
wn
load
sp
ee
ds)
;
$1,
35
5 p
er
mo
nth
(u
p t
o 1
0G
bp
s
do
wn
load
sp
ee
ds)
.
CIR
can
be
pu
rch
ase
d f
rom
$10
fo
r u
p
to 1
0M
bp
s.
Ce
ntr
al O
ffic
e a
nd
C
o-l
oc
atio
nS
up
po
rts
the
inst
alla
tio
n o
f re
tail
serv
ice
pro
vid
er
ne
two
rk
eq
uip
me
nt
in t
he
fib
re e
xch
ang
e o
r C
en
tral
Off
ice
an
d p
rovi
de
fib
re-b
ase
d s
erv
ice
s to
en
d-u
sers
wh
o a
re c
on
ne
cte
d t
o t
he
fib
re n
etw
ork
.
Fro
m:
$2
15 p
er
mo
nth
to
$1,
90
0 p
er
mo
nth
de
pe
nd
ing
on
sit
e a
nd
re
qu
ire
me
nts
.
Intr
a C
and
idat
e A
rea
Bac
khau
l Se
rvic
e (
ICA
BS
)U
sed
by
reta
il se
rvic
e p
rovi
de
rs t
o e
xte
nd
a f
ibre
acc
ess
con
ne
cti
on
to
th
eir
eq
uip
me
nt
in a
no
the
r e
xch
ang
e, o
r
to c
on
ne
ct
foo
tpri
nts
in t
wo
exc
han
ge
s w
ith
in t
he
sam
e
can
did
ate
are
a.
Fro
m:
$4
50
pe
r m
on
th t
o
$1,
40
0 p
er
mo
nth
Pro
du
ct o
verv
iew
(co
nt.
)
Fin
anci
al
Stat
emen
ts
Ind
ep
en
de
nt
aud
ito
r’s
rep
ort
19
Inco
me
sta
tem
en
t
19
Stat
em
en
t o
f co
mp
reh
en
sive
inco
me
19
Stat
em
en
t o
f fi
nan
cial
po
siti
on
2
0
Stat
em
en
t o
f ch
ang
es
in e
qu
ity
20
Stat
em
en
t o
f ca
sh f
low
s
21
No
tes
to t
he
fin
anci
al s
tate
me
nts
2
3-4
1
CO
NT
EN
TS
19
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
Inco
me
stat
emen
tF
OR
TH
E Y
EA
R E
ND
ED
30
JU
NE
20
13
GR
OU
PP
AR
EN
T
(DO
LLA
RS
IN M
ILLI
ON
S)N
OT
ES
YE
AR
E
ND
ED
3
0 J
UN
E 2
013 $M
SEV
EN
MO
NT
HS
EN
DE
D
30
JU
NE
20
12 $M
YE
AR
E
ND
ED
3
0 J
UN
E 2
013 $M
SEV
EN
MO
NT
HS
EN
DE
D
30
JU
NE
20
12 $M
Op
era
tin
g r
eve
nu
e7
1,0
57 6
13 8
6
-
Op
era
tin
g e
xpe
nse
s8
(39
4)
(214
) (1
) (1
)
Ear
nin
gs/
(lo
ss) b
efo
re in
tere
st, i
nco
me
tax,
d
ep
reci
atio
n a
nd
am
ort
isat
ion
66
3 3
99
85
(1)
De
pre
cia
tio
n1
(258
) (1
50)
1
-
Am
ort
isat
ion
2 (6
1) (3
9)
-
-
Ear
nin
gs/
(lo
ss) b
efo
re in
tere
st a
nd
inco
me
tax
34
4
210
8
6
(1)
Fin
ance
inco
me
7
4
10
6
62
Fin
ance
exp
en
se9
(115
) (
72)
(10
5) (6
6)
Ne
t e
arn
ing
s/(l
oss
) be
fore
inco
me
tax
236
1
42
87
(5)
Inco
me
tax
(e
xpe
nse
)/b
en
efi
t13
(65)
(40
) -
1
Ne
t e
arn
ing
s/(l
oss
) fo
r th
e p
eri
od
171
1
02
87
(4)
Ear
nin
gs
pe
r sh
are
Bas
ic e
arn
ing
s p
er
shar
e (
do
llars
)18
0.4
4
0.2
6
Dilu
ted
ear
nin
gs
pe
r sh
are
(d
olla
rs)
18 0
.42
0.2
6
Stat
emen
t o
f co
mp
reh
ensi
ve in
com
e
FO
R T
HE
YE
AR
EN
DE
D 3
0 J
UN
E 2
01
3
GR
OU
PP
AR
EN
T
(DO
LLA
RS
IN M
ILLI
ON
S)N
OT
E
YE
AR
E
ND
ED
3
0 J
UN
E 2
013 $M
SEV
EN
MO
NT
HS
EN
DE
D
30
JU
NE
20
12 $M
YE
AR
E
ND
ED
3
0 J
UN
E 2
013 $M
SEV
EN
MO
NT
HS
EN
DE
D
30
JU
NE
20
12 $M
Ne
t e
arn
ing
s/(l
oss
) fo
r th
e p
eri
od
171
1
02
87
(4)
Oth
er
com
pre
he
nsi
ve in
com
e
Eff
ec
tive
po
rtio
n o
f c
han
ge
s in
fai
r va
lue
o
f c
ash
flo
w h
ed
ge
s (p
re-t
ax)
13
(14
) 1
3 (1
4)
Tax
(exp
en
se)/
be
ne
fit
on
cas
h f
low
he
dg
e13
(4)
4
(4)
4
Oth
er
com
pre
he
nsi
ve in
com
e/(
loss
) ne
t o
f ta
x 9
(1
0)
9
(10
)
Tota
l co
mp
reh
en
sive
inco
me
/(lo
ss) f
or
the
pe
rio
d n
et
of
tax
18
0
92
96
(1
4)
Th
e n
ote
s o
n p
age
s 2
3 t
o 4
1 ar
e a
n in
teg
ral p
art
of
the
se f
inan
cia
l sta
tem
en
ts
To t
he
shar
eho
lder
s o
f C
ho
rus
Lim
ited
Rep
ort
on
th
e co
mp
any
and
gro
up
fin
anci
al s
tate
men
ts
We
hav
e au
dit
ed t
he
acco
mp
anyi
ng
fin
anci
al s
tate
men
ts o
f C
ho
rus
Lim
ited
(‘’th
e co
mp
any’
’) an
d t
he
gro
up
, co
mp
risi
ng
th
e co
mp
any
and
its
sub
sid
iary
, on
pag
es 1
9 t
o 4
1. T
he
finan
cial
sta
tem
ents
com
pri
se t
he
stat
emen
ts o
f fin
anci
al p
osi
tio
n a
s at
30
Ju
ne
20
13,
the
inco
me
stat
emen
ts a
nd
sta
tem
ents
of
com
pre
hen
sive
inco
me,
chan
ges
in e
qu
ity
and
cas
h fl
ow
s fo
r th
e ye
ar t
hen
en
ded
, an
d a
sum
mar
y o
f si
gn
ifica
nt
acco
un
tin
g p
olic
ies
and
oth
er e
xpla
nat
ory
info
rmat
ion
, fo
r b
oth
th
e co
mp
any
and
th
e g
rou
p.
Dir
ecto
rs’ r
esp
on
sib
ility
fo
r th
e co
mp
any
and
gro
up
fin
anci
al
stat
emen
ts
Th
e d
irec
tors
are
res
po
nsi
ble
fo
r th
e p
rep
arat
ion
of
com
pan
y an
d
gro
up
fin
anci
al s
tate
men
ts in
acc
ord
ance
wit
h g
ener
ally
acc
epte
d
acco
un
tin
g p
ract
ice
in N
ew Z
eala
nd
an
d In
tern
atio
nal
Fin
anci
al
Rep
ort
ing
Sta
nd
ard
s th
at g
ive
a tr
ue
and
fai
r vi
ew o
f th
e m
atte
rs
to w
hic
h t
hey
rel
ate,
an
d f
or
such
inte
rnal
co
ntr
ol a
s th
e d
irec
tors
det
erm
ine
is n
eces
sary
to
en
able
th
e p
rep
arat
ion
of
com
pan
y an
d
gro
up
fin
anci
al s
tate
men
ts t
hat
are
fre
e fr
om
mat
eria
l mis
stat
emen
t
wh
eth
er d
ue
to f
rau
d o
r er
ror.
Au
dit
or’
s re
spo
nsi
bili
ty
Ou
r re
spo
nsi
bili
ty is
to
exp
ress
an
op
inio
n o
n t
hes
e co
mp
any
and
gro
up
fin
anci
al s
tate
men
ts b
ased
on
ou
r au
dit
. We
con
du
cted
ou
r au
dit
in a
cco
rdan
ce w
ith
Inte
rnat
ion
al S
tan
dar
ds
on
Au
dit
ing
(New
Zea
lan
d) a
nd
Inte
rnat
ion
al S
tan
dar
ds
on
Au
dit
ing
. Th
ose
stan
dar
ds
req
uir
e th
at w
e co
mp
ly w
ith
eth
ical
req
uir
emen
ts a
nd
pla
n a
nd
per
form
th
e au
dit
to
ob
tain
rea
son
able
ass
ura
nce
ab
ou
t
wh
eth
er t
he
com
pan
y an
d g
rou
p fi
nan
cial
sta
tem
ents
are
fre
e fr
om
mat
eria
l mis
stat
emen
t.
An
au
dit
invo
lves
per
form
ing
pro
ced
ure
s to
ob
tain
au
dit
evi
den
ce
abo
ut
the
amo
un
ts a
nd
dis
clo
sure
s in
th
e co
mp
any
and
gro
up
finan
cial
sta
tem
ents
. Th
e p
roce
du
res
sele
cted
dep
end
on
th
e
aud
ito
r’s ju
dg
emen
t, in
clu
din
g t
he
asse
ssm
ent
of
the
risk
s o
f
mat
eria
l mis
stat
emen
t o
f th
e fin
anci
al s
tate
men
ts, w
het
her
du
e
to f
rau
d o
r er
ror.
In m
akin
g t
ho
se r
isk
asse
ssm
ents
, th
e au
dit
or
con
sid
ers
inte
rnal
co
ntr
ol r
elev
ant
to t
he
com
pan
y an
d g
rou
p’s
pre
par
atio
n o
f th
e fin
anci
al s
tate
men
ts t
hat
giv
e a
tru
e an
d f
air
view
of
the
mat
ters
to
wh
ich
th
ey r
elat
e in
ord
er t
o d
esig
n a
ud
it
pro
ced
ure
s th
at a
re a
pp
rop
riat
e in
th
e ci
rcu
mst
ance
s, b
ut
no
t
for
the
pu
rpo
se o
f ex
pre
ssin
g a
n o
pin
ion
on
th
e eff
ecti
ven
ess
of
the
com
pan
y an
d g
rou
p’s
inte
rnal
co
ntr
ol.
An
au
dit
als
o in
clu
des
eval
uat
ing
th
e ap
pro
pri
aten
ess
of
acco
un
tin
g p
olic
ies
use
d a
nd
th
e
reas
on
able
nes
s o
f ac
cou
nti
ng
est
imat
es, a
s w
ell a
s ev
alu
atin
g t
he
pre
sen
tati
on
of
the
finan
cial
sta
tem
ents
.
We
bel
ieve
th
at t
he
aud
it e
vid
ence
we
hav
e o
bta
ined
is s
uffi
cien
t
and
ap
pro
pri
ate
to p
rovi
de
a b
asis
fo
r o
ur
aud
it o
pin
ion
.
Ou
r fir
m h
as a
lso
pro
vid
ed o
ther
ass
ura
nce
an
d t
ax c
om
plia
nce
serv
ices
to
th
e co
mp
any
and
gro
up
. Th
ese
mat
ters
hav
e n
ot
imp
aire
d
ou
r in
dep
end
ence
as
aud
ito
r o
f th
e co
mp
any
and
gro
up
. Th
e fir
m
has
no
oth
er r
elat
ion
ship
wit
h, o
r in
tere
st in
, th
e co
mp
any
and
gro
up
.
Op
inio
n
In o
ur
op
inio
n t
he
finan
cial
sta
tem
ents
on
pag
es 1
9 t
o 4
1:
•co
mplyw
ithgen
erallyacc
eptedacc
ountingpractice
in N
ew Z
eala
nd
;
•co
mplyw
ithIn
ternationalFinan
cialRep
ortingStandards;
•giveatruean
dfairview
ofthefin
ancialpositionofthe
com
pan
y an
d t
he
gro
up
as
at 3
0 J
un
e 2
013
an
d o
f th
e fin
anci
al
per
form
ance
an
d c
ash
flo
ws
of
the
com
pan
y an
d t
he
gro
up
fo
r
the
year
th
en e
nd
ed.
Rep
ort
on
oth
er le
gal
an
d r
egu
lato
ry r
equ
irem
ents
In a
cco
rdan
ce w
ith
th
e re
qu
irem
ents
of
sect
ion
s 16
(1)(
d) a
nd
16
(1)(
e)
of
the
Fin
anci
al R
epo
rtin
g A
ct 1
99
3, w
e re
po
rt t
hat
:
•wehaveobtained
alltheinform
ationandexp
lanationsthat
we
hav
e re
qu
ired
; an
d
•inouropinion,p
roperacc
ountingrec
ordshavebee
nkep
t
by
Ch
oru
s Li
mit
ed a
s fa
r as
ap
pea
rs f
rom
ou
r ex
amin
atio
n
of
tho
se r
eco
rds.
25
Au
gu
st 2
013
Wel
ling
ton
Ind
epen
den
t au
dito
r’s r
epo
rt
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts2
0
GR
OU
PP
AR
EN
T
(DO
LLA
RS
IN M
ILLI
ON
S)N
OT
ES
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Cu
rre
nt
asse
ts
Cas
h a
nd
cal
l de
po
sits
14 8
0
14
0
69
6
1
Inco
me
tax
re
ceiv
able
-
-
8
1
Trad
e a
nd
oth
er
rece
ivab
les
10 2
94
1
98
2
43
40
Fin
ance
leas
e r
ece
ivab
le15
3
3
-
-
Tota
l cu
rre
nt
asse
ts 3
77
34
1 3
20
1
02
No
n-c
urr
en
t as
sets
De
riva
tive
fin
anc
ial i
nst
rum
en
ts20
7
2
7
2
Inve
stm
en
ts a
nd
ad
van
ces
16 -
-
2
,238
2
,238
So
ftw
are
an
d o
the
r in
tan
gib
les
2 1
53
18
0
-
-
Ne
two
rk a
sse
ts1
2,7
96
2
,411
-
-
Tota
l no
n-c
urr
en
t as
sets
2,9
56
2,5
93
2,2
45
2,2
40
Tota
l ass
ets
3,3
33
2,9
34
2
,56
5 2
,34
2
Cu
rre
nt
liab
ilit
ies
Trad
e a
nd
oth
er
pay
able
s11
328
3
28
33
31
Inco
me
tax
pay
able
5
14
-
-
Tota
l cu
rre
nt
liab
ilit
ies
exc
lud
ing
Cro
wn
fu
nd
ing
333
3
42
33
31
Cu
rre
nt
po
rtio
n o
f C
row
n f
un
din
g5
6
2
2
-
Tota
l cu
rre
nt
liab
ilit
ies
339
3
44
3
5 3
1
No
n-c
urr
en
t li
abil
itie
s
Trad
e a
nd
oth
er
pay
able
s11
2
9
-
-
De
riva
tive
fin
anc
ial i
nst
rum
en
ts20
10
6
110
1
06
1
10
Fin
ance
leas
e p
ayab
le15
12
3 1
21
-
-
De
bt
3 1
,69
7 1
,60
9
1,6
97
1,6
09
De
ferr
ed
tax
pay
able
13 1
90
1
77
16
1
2
Tota
l no
n-c
urr
en
t li
abil
itie
s e
xclu
din
g
CFH
se
curi
tie
s an
d C
row
n f
un
din
g 2
,118
2
,026
1
,819
1
,731
CFH
se
cu
riti
es
4 3
0
3
30
3
Cro
wn
fu
nd
ing
5 2
22
34
1
01
10
Tota
l no
n-c
urr
en
t li
abil
itie
s 2
,370
2
,06
3 1
,950
1
,74
4
Tota
l lia
bili
tie
s 2
,70
9
2,4
07
1,9
85
1,7
75
Eq
uit
y
Sh
are
cap
ital
17 4
47
435
5
93
58
1
Re
serv
es
17(1
)(1
0)
(1)
(10
)
Re
tain
ed
ear
nin
gs
178
1
02
(12)
(4)
Tota
l eq
uit
y 6
24
527
5
80
5
67
Tota
l lia
bil
itie
s an
d e
qu
ity
3,3
33
2,9
34
2
,56
5 2
,34
2
Th
e n
ote
s o
n p
age
s 2
3 t
o 4
1 ar
e a
n in
teg
ral p
art
of
the
se f
inan
cia
l sta
tem
en
ts
On
beh
alf
of
the
Bo
ard
Sue
Shel
do
n, C
hai
rman
M
ark
Rat
cliff
e, D
irec
tor
Au
tho
rise
d f
or
issu
e o
n 2
5 A
ug
ust
20
13
Stat
emen
t o
f fin
anci
al p
osi
tion
AS
AT
30
JU
NE
20
13
Stat
emen
t o
f ch
ang
es in
eq
uit
y F
OR
TH
E Y
EA
R E
ND
ED
30
JU
NE
20
13
GR
OU
P
YE
AR
EN
DE
D 3
0 J
UN
E 2
013
(D
OLL
AR
S IN
MIL
LIO
NS)
NO
TE
SHA
RE
C
AP
ITA
L $
M
RE
TA
INE
D
EA
RN
ING
S $
M
CA
SH F
LOW
H
ED
GE
RE
SER
VE
$
MT
OT
AL
$M
Bal
ance
at
1 J
uly
20
12 4
35
10
2 (1
0)
527
Co
mp
reh
en
sive
inco
me
Ne
t e
arn
ing
s fo
r th
e y
ear
-
171
-
1
71
Oth
er
com
pre
he
nsi
ve in
com
e
Ne
t e
ffe
cti
ve p
ort
ion
of
ch
ang
es
in f
air
valu
e
of
cas
h f
low
he
dg
es
17 -
-
9
9
Tota
l co
mp
reh
en
sive
inco
me
-
171
9
1
80
Co
ntr
ibu
tio
ns
by
and
(dis
trib
uti
on
s to
) ow
ne
rs:
Div
ide
nd
s17
-
(95)
-
(95)
Su
pp
lem
en
tary
div
ide
nd
s -
(8
) -
(8
)
Tax
cre
dit
on
su
pp
lem
en
tary
div
ide
nd
s -
8
-
8
Div
ide
nd
re
inve
stm
en
t p
lan
17 1
2 -
-
1
2
Tota
l tra
nsa
cti
on
s w
ith
ow
ne
rs 1
2 (9
5) -
(8
3)
Bal
ance
at
30
Ju
ne
20
13 4
47
178
(1
) 6
24
GR
OU
P
SEV
EN
MO
NT
HS
EN
DE
D 3
0 J
UN
E 2
012
(D
OLL
AR
S IN
MIL
LIO
NS)
NO
TE
SHA
RE
C
AP
ITA
L $
M
RE
TA
INE
D
EA
RN
ING
S $
M
CA
SH F
LOW
H
ED
GE
RE
SER
VE
$
MT
OT
AL
$M
Bal
ance
at
1 D
ece
mb
er
20
11 4
35
-
-
435
Co
mp
reh
en
sive
inco
me
Ne
t e
arn
ing
s fo
r th
e p
eri
od
-
10
2 -
1
02
Oth
er
com
pre
he
nsi
ve in
com
e
Ne
t e
ffe
cti
ve p
ort
ion
of
ch
ang
es
in f
air
valu
e
of
cas
h f
low
he
dg
es
17 -
-
(1
0)
(10
)
Tota
l co
mp
reh
en
sive
inco
me
/(lo
ss)
-
10
2 (1
0)
92
Bal
ance
at
30
Ju
ne
20
12 4
35
10
2 (1
0)
527
Th
e n
ote
s o
n p
age
s 2
3 t
o 4
1 ar
e a
n in
teg
ral p
art
of
the
se f
inan
cia
l sta
tem
en
ts
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
21
PA
RE
NT
YE
AR
EN
DE
D 3
0 J
UN
E 2
013
(D
OLL
AR
S IN
MIL
LIO
NS)
NO
TE
SHA
RE
C
AP
ITA
L $
M
RE
TA
INE
D
EA
RN
ING
S $
M
CA
SH F
LOW
H
ED
GE
RE
SER
VE
$
MT
OT
AL
$M
Bal
ance
at
1 J
uly
20
12 5
81
(4)
(10
) 5
67
Co
mp
reh
en
sive
inco
me
Ne
t e
arn
ing
s fo
r th
e y
ear
-
87
-
87
Oth
er
com
pre
he
nsi
ve in
com
e
Net
eff
ec
tive
po
rtio
n o
f ch
ang
es
in f
air
valu
e o
f c
ash
flo
w h
ed
ge
s17
-
-
9
9
Tota
l co
mp
reh
en
sive
inco
me
-
87
9
96
Co
ntr
ibu
tio
ns
by
and
(dis
trib
uti
on
s to
) ow
ne
rs:
Div
ide
nd
s17
-
(95)
-
(95)
Su
pp
lem
en
tary
div
ide
nd
s -
(8
) -
(8
)
Tax
cre
dit
on
su
pp
lem
en
tary
div
ide
nd
s -
8
-
8
Div
ide
nd
re
inve
stm
en
t p
lan
17 1
2 -
-
1
2
Tota
l tra
nsa
cti
on
s w
ith
ow
ne
rs 1
2 (9
5) -
(8
3)
Bal
ance
at
30
Ju
ne
20
13 5
93
(12)
(1)
58
0
Stat
emen
t o
f ch
ang
es in
eq
uit
y, c
on
tinu
edF
OR
TH
E Y
EA
R E
ND
ED
30
JU
NE
20
13
PA
RE
NT
SEV
EN
MO
NT
HS
EN
DE
D 3
0 J
UN
E 2
012
(D
OLL
AR
S IN
MIL
LIO
NS)
NO
TE
SHA
RE
C
AP
ITA
L $
M
RE
TA
INE
D
EA
RN
ING
S $
M
CA
SH F
LOW
H
ED
GE
RE
SER
VE
$
MT
OT
AL
$M
Bal
ance
at
1 D
ece
mb
er
20
11 5
81
-
-
58
1
Co
mp
reh
en
sive
inco
me
Ne
t lo
ss f
or
the
pe
rio
d -
(4
) -
(4
)
Oth
er
com
pre
he
nsi
ve in
com
e
Net
eff
ec
tive
po
rtio
n o
f ch
ang
es in
fai
r va
lue
of c
ash
flo
w h
ed
ges
17 -
-
(1
0)
(10
)
Tota
l co
mp
reh
en
sive
loss
-
(4)
(10
) (1
4)
Bal
ance
at
30
Ju
ne
20
12 5
81
(4)
(10
) 5
67
Th
e n
ote
s o
n p
age
s 2
3 t
o 4
1 ar
e a
n in
teg
ral p
art
of
the
se f
inan
cia
l sta
tem
en
ts
GR
OU
PP
AR
EN
T
(DO
LLA
RS
IN M
ILLI
ON
S)N
OT
E
YE
AR
E
ND
ED
3
0 J
UN
E 2
013 $M
SEV
EN
MO
NT
HS
EN
DE
D
30
JU
NE
20
12 $
M
YE
AR
E
ND
ED
3
0 J
UN
E 2
013 $M
SEV
EN
MO
NT
HS
EN
DE
D
30
JU
NE
20
12 $M
Cas
h f
low
s fr
om
op
era
tin
g a
cti
viti
es
Cas
h w
as p
rovi
de
d f
rom
/(ap
plie
d t
o):
Cas
h r
ece
ive
d f
rom
cu
sto
me
rs 9
67
530
-
-
Fin
ance
inco
me
7
4
10
6
48
Inte
rco
mp
any
div
ide
nd
re
ceiv
ed
-
-
86
-
Pay
me
nt
to s
up
plie
rs a
nd
em
plo
yee
s (3
78)
(14
7) (1
) (1
)
Taxa
tio
n p
aid
(65)
(20
) (
7) -
Inte
rest
pai
d o
n d
eb
t an
d d
eri
vati
ves
(10
8)
(35)
(99
) (2
5)
Ne
t c
ash
flo
ws
fro
m o
pe
rati
ng
ac
tivi
tie
s 4
23
332
8
5 2
2
Cas
h f
low
s ap
pli
ed
to
inve
stin
g a
cti
viti
es
Cas
h w
as a
pp
lied
to
:
Su
bsi
dia
ry f
un
din
g
-
-
(18
9)
(13)
Pu
rch
ase
of
ne
two
rk a
sse
ts a
nd
so
ftw
are
an
d in
tan
gib
le a
sse
ts (6
81)
(256
) -
-
Cap
ital
ise
d in
tere
st p
aid
(6)
(3)
-
-
Ne
t c
ash
flo
ws
app
lie
d t
o in
vest
ing
ac
tivi
tie
s (6
87)
(259
) (1
89
) (1
3)
Cas
h f
low
s fr
om
fin
anci
ng
ac
tivi
tie
s
Cas
h w
as p
rovi
de
d f
rom
/(ap
plie
d t
o):
Ne
t (r
ep
aym
en
t o
f)/p
roce
ed
s fr
om
fin
ance
leas
es
(1)
2
-
-
Cro
wn
fu
nd
ing
(in
clu
din
g C
FH s
ec
uri
tie
s) 1
98
2
5 1
05
12
Pro
cee
ds
fro
m d
eb
t 1
90
5
1 1
90
5
1
Re
pay
me
nt
of
de
bt
(10
0)
(51)
(10
0)
(51)
Div
ide
nd
s p
aid
(83)
-
(83)
-
Ne
t c
ash
flo
ws
fro
m f
inan
cin
g a
cti
viti
es
20
4
27
112
1
2
Ne
t c
ash
flo
w (6
0)
10
0
8
21
Cas
h a
t th
e b
eg
inn
ing
of
the
pe
rio
d 1
40
4
0
61
40
Cas
h a
t th
e e
nd
of
the
pe
rio
d14
80
1
40
6
9
61
Th
e n
ote
s o
n p
age
s 2
3 t
o 4
1 ar
e a
n in
teg
ral p
art
of
the
se f
inan
cia
l sta
tem
en
ts
Stat
emen
t o
f ca
sh fl
ow
sF
OR
TH
E Y
EA
R E
ND
ED
30
JU
NE
20
13
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts2
2
Stat
emen
t o
f ca
sh fl
ow
s, c
on
tinu
edR
EC
ON
CIL
IAT
ION
OF
NE
T E
AR
NIN
GS
/(L
OS
S)
TO
NE
T C
AS
H F
LO
WS
FR
OM
OP
ER
AT
ING
AC
TIV
ITIE
S
GR
OU
PP
AR
EN
T
(DO
LLA
RS
IN M
ILLI
ON
S)
YE
AR
E
ND
ED
3
0 J
UN
E 2
013 $M
SEV
EN
MO
NT
HS
EN
DE
D
30
JU
NE
20
12 $M
YE
AR
E
ND
ED
3
0 J
UN
E 2
013 $M
SEV
EN
MO
NT
HS
EN
DE
D
30
JU
NE
20
12 $M
Ne
t e
arn
ing
s/(l
oss
) fo
r th
e p
eri
od
171
1
02
87
(4)
Ad
just
me
nt
for:
De
pre
cia
tio
n c
har
ge
d o
n n
etw
ork
ass
ets
26
2 1
51
-
-
Am
ort
isat
ion
of
Cro
wn
fu
nd
ing
(4)
(1)
(1)
-
Am
ort
isat
ion
of
soft
war
e a
nd
oth
er
inta
ng
ible
ass
ets
61
39
-
-
De
ferr
ed
inco
me
tax
9
6
-
-
Oth
er
6
(4)
4
9
50
5 2
93
90
5
Ch
ang
e in
cu
rre
nt
asse
ts a
nd
liab
iliti
es:
Ch
ang
e in
tra
de
an
d o
the
r re
ceiv
able
s (
70)
(10
1) -
(6
)
Ch
ang
e in
tra
de
an
d o
the
r p
ayab
les
(3)
126
2
2
4
Ch
ang
e in
inco
me
tax
pay
able
/re
ceiv
able
(9)
14
(7
) (1
)
(82)
39
(5
) 1
7
Ne
t c
ash
flo
ws
fro
m o
pe
rati
ng
ac
tivi
tie
s 4
23
332
8
5 2
2
Th
e n
ote
s o
n p
age
s 2
3 t
o 4
1 ar
e a
n in
teg
ral p
art
of
the
se f
inan
cia
l sta
tem
en
ts
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
23
Rep
ort
ing
en
tity
an
d s
tatu
tory
bas
e
Ch
oru
s Li
mit
ed is
reg
iste
red
in N
ew Z
eala
nd
un
der
th
e C
om
pan
ies
Act
19
93
an
d is
an
issu
er f
or
the
pu
rpo
ses
of
the
Fin
anci
al R
epo
rtin
g
Act
19
93.
Ch
oru
s Li
mit
ed w
as e
stab
lish
ed a
s a
stan
dal
on
e, p
ub
licly
liste
d e
nti
ty o
n 1
Dec
emb
er 2
011
, up
on
its
dem
erg
er f
rom
Tel
eco
m
Co
rpo
rati
on
of
New
Zea
lan
d L
imit
ed (
Tele
com
). T
he
dem
erg
er w
as
a co
nd
itio
n o
f an
ag
reem
ent
wit
h C
row
n F
ibre
Ho
ldin
gs
Lim
ited
(CFH
) to
en
able
Ch
oru
s Li
mit
ed t
o b
e th
e C
row
n’s
Ult
ra-F
ast
Bro
adb
and
(UFB
) pro
vid
er in
24
reg
ion
s, r
epre
sen
tin
g a
pp
roxi
mat
ely
70%
of
the
UFB
co
vera
ge
area
. Ch
oru
s Li
mit
ed is
list
ed a
nd
its
ord
inar
y sh
ares
qu
ote
d o
n t
he
NZ
X m
ain
bo
ard
eq
uit
y se
curi
ty
mar
ket
(NZ
X M
ain
Bo
ard
) an
d o
n t
he
Au
stra
lian
Sto
ck E
xch
ang
e
(ASX
). A
mer
ican
Dep
osi
tary
Sh
ares
(AD
Ss),
each
rep
rese
nti
ng
fiv
e
ord
inar
y sh
ares
(an
d e
vid
ence
d b
y A
mer
ican
Dep
osi
tary
Rec
eip
ts
(AD
Rs)
), ar
e n
ot
liste
d b
ut
are
trad
ed o
n t
he
ove
r-th
e-co
un
ter
(OT
C) m
arke
t in
th
e U
nit
ed S
tate
s.
Th
e fin
anci
al s
tate
men
ts p
rese
nte
d a
re t
ho
se o
f C
ho
rus
Lim
ited
(th
e
Co
mp
any,
Par
ent
or
the
Par
ent
Co
mp
any)
to
get
her
wit
h it
s su
bsi
dia
ry
(th
e C
ho
rus
Gro
up
, Gro
up
or
Ch
oru
s).
Nat
ure
of
op
erat
ion
s
Ch
oru
s is
New
Zea
lan
d’s
larg
est
fixed
lin
e co
mm
un
icat
ion
s
infr
astr
uct
ure
ser
vice
pro
vid
er. C
ho
rus
mai
nta
ins
and
bu
ilds
a
net
wo
rk p
red
om
inan
tly
mad
e u
p o
f lo
cal t
elep
ho
ne
exch
ang
es,
cab
inet
s, c
op
per
an
d f
ibre
cab
les.
Ch
oru
s h
as a
pp
roxi
mat
ely
1.8
mill
ion
fix
ed li
ne
con
nec
tio
ns.
Th
ere
are
aro
un
d 1
30
,00
0
kilo
met
res
of
cop
per
cab
le a
nd
ab
ou
t 3
2,0
00
kilo
met
res
of
fibre
cab
le c
on
nec
tin
g h
om
es a
nd
bu
sin
esse
s to
loca
l exc
han
ges
,
and
ro
adsi
de
cab
inet
s th
rou
gh
ou
t th
e co
un
try.
Bas
is o
f p
rep
arat
ion
Th
ese
finan
cial
sta
tem
ents
hav
e b
een
pre
par
ed in
acc
ord
ance
wit
h g
ener
ally
acc
epte
d a
cco
un
tin
g p
ract
ice
in N
ew Z
eala
nd
an
d
the
Fin
anci
al R
epo
rtin
g A
ct 1
99
3. T
hey
co
mp
ly w
ith
New
Zea
lan
d
equ
ival
ents
to
Inte
rnat
ion
al F
inan
cial
Rep
ort
ing
Sta
nd
ard
s (N
Z IF
RS)
as a
pp
rop
riat
e fo
r p
rofit
-ori
ente
d e
nti
ties
. Th
ey a
lso
co
mp
ly w
ith
Inte
rnat
ion
al F
inan
cial
Rep
ort
ing
Sta
nd
ard
s.
Th
ese
finan
cial
sta
tem
ents
are
exp
ress
ed in
New
Zea
lan
d d
olla
rs,
wh
ich
is C
ho
rus’
fu
nct
ion
al c
urr
ency
. Ref
eren
ces
in t
hes
e fin
anci
al
stat
emen
ts t
o ‘$
’,‘N
Z$
’ an
d ‘N
ZD
’ are
to
New
Zea
lan
d d
olla
rs,
refe
ren
ces
to ‘U
SD’ a
re t
o U
S d
olla
rs, r
efer
ence
s to
‘AU
D’ a
re t
o
Au
stra
lian
do
llars
, ref
eren
ces
to ‘E
UR
’ are
to
Eu
ros
and
ref
eren
ces
to ‘G
BP
’ are
to
po
un
ds
ster
ling
. All
finan
cial
info
rmat
ion
has
bee
n
rou
nd
ed t
o t
he
nea
rest
mill
ion
, un
less
oth
erw
ise
stat
ed.
Mea
sure
men
t b
asis
Th
e m
easu
rem
ent
bas
is a
do
pte
d in
th
e p
rep
arat
ion
of
thes
e fin
anci
al
stat
emen
ts is
his
tori
cal c
ost
, mo
difi
ed b
y th
e re
valu
atio
n o
f fin
anci
al
inst
rum
ents
as
iden
tifie
d in
th
e sp
ecifi
c ac
cou
nti
ng
po
licie
s b
elo
w
and
th
e ac
com
pan
yin
g n
ote
s.
Spec
ific
acco
un
tin
g p
olic
ies
Ch
oru
s w
as e
stab
lish
ed a
s a
stan
dal
on
e p
ub
licly
list
ed e
nti
ty o
n
1 D
ecem
ber
20
11. T
he
acco
un
tin
g p
olic
ies
ado
pte
d h
ave
bee
n
app
lied
co
nsi
sten
tly
thro
ug
ho
ut
the
per
iod
s p
rese
nte
d in
th
ese
finan
cial
sta
tem
ents
. Cer
tain
co
mp
arat
ive
info
rmat
ion
has
bee
n
recl
assi
fied
to
co
nfo
rm w
ith
th
e cu
rren
t ye
ar’s
pre
sen
tati
on
.
Bas
is o
f co
nso
lidat
ion
Sub
sid
iari
es a
re f
ully
co
nso
lidat
ed f
rom
th
e d
ate
of
acq
uis
itio
n, b
ein
g
the
dat
e o
n w
hic
h t
he
Gro
up
ob
tain
s co
ntr
ol,
and
co
nti
nu
e to
be
con
solid
ated
un
til t
he
dat
e w
hen
su
ch c
on
tro
l cea
ses.
Th
e fin
anci
al
stat
emen
ts o
f th
e su
bsi
dia
ry a
re p
rep
ared
fo
r th
e sa
me
rep
ort
ing
per
iod
as
the
Par
ent
Co
mp
any,
usi
ng
co
nsi
sten
t ac
cou
nti
ng
po
licie
s.
All
intr
a-g
rou
p b
alan
ces,
tra
nsa
ctio
ns,
un
real
ised
gai
ns
and
loss
es
resu
ltin
g f
rom
intr
a-g
rou
p t
ran
sact
ion
s an
d d
ivid
end
s ar
e el
imin
ated
in f
ull.
Su
bsi
dia
ries
are
rec
ord
ed a
t co
st le
ss a
ny
imp
airm
ent
loss
es
in t
he
Par
ent
Co
mp
any
finan
cial
sta
tem
ents
.
Cri
tica
l acc
ou
nti
ng
est
imat
es a
nd
ass
um
pti
on
s
In p
rep
arin
g t
he
finan
cial
sta
tem
ents
man
agem
ent
has
mad
e
esti
mat
es a
nd
ass
um
pti
on
s ab
ou
t th
e fu
ture
th
at a
ffec
t th
e re
po
rted
amo
un
ts o
f as
sets
an
d li
abili
ties
at
the
dat
e o
f th
e fin
anci
al
stat
emen
ts a
nd
th
e re
po
rted
am
ou
nts
of
reve
nu
e an
d e
xpen
ses
du
rin
g t
he
per
iod
. Act
ual
res
ult
s co
uld
diff
er f
rom
th
ose
est
imat
es.
Est
imat
es a
nd
ass
um
pti
on
s ar
e co
nti
nu
ally
eva
luat
ed a
nd
are
bas
ed
on
his
tori
cal e
xper
ien
ce a
nd
oth
er f
acto
rs, i
ncl
ud
ing
exp
ecta
tio
ns
of
futu
re e
ven
ts t
hat
are
bel
ieve
d t
o b
e re
aso
nab
le u
nd
er t
he
circ
um
stan
ces.
Th
e p
rin
cip
al a
reas
of
jud
gem
ent
in p
rep
arin
g
thes
e fin
anci
al s
tate
men
ts a
re s
et o
ut
bel
ow
.
No
tes
to t
he
finan
cial
sta
tem
ents
Inform
ationaboutcriticalju
dgem
entsin
applyingacc
ounting
po
licie
s th
at h
ave
the
mo
st s
ign
ifica
nt
effec
t o
n t
he
amo
un
ts
reco
gn
ised
in t
he
fin
anci
al s
tate
men
ts is
incl
ud
ed in
th
e
follo
win
g n
ote
s:
Cro
wn
fu
nd
ing
(no
te 5
)
Ch
oru
s m
ust
exe
rcis
e ju
dg
emen
t w
hen
rec
og
nis
ing
Cro
wn
fun
din
g t
o d
eter
min
e if
con
dit
ion
s o
f th
e fu
nd
ing
co
ntr
act
hav
e
bee
n s
atis
fied
. Th
is ju
dg
emen
t w
ill b
e b
ased
on
th
e fa
cts
and
circ
um
stan
ces
that
are
evi
den
t fo
r ea
ch c
on
trac
t at
th
e ti
me
of
pre
par
ing
th
e fin
anci
al s
tate
men
ts.
Leas
es (n
ote
15
)
Det
erm
inin
g w
het
her
a le
ase
agre
emen
t is
a f
inan
ce le
ase
or
op
erat
ing
leas
e re
qu
ires
jud
gem
ent
as t
o w
het
her
th
e ag
reem
ent
tran
sfer
s su
bst
anti
ally
all
the
risk
s an
d r
ewar
ds
of
ow
ner
ship
to C
ho
rus.
Info
rmat
ion
ab
ou
t as
sum
pti
on
s an
d e
stim
atio
n u
nce
rtai
nti
es t
hat
haveasignifica
ntriskofresu
ltingin
am
aterialadjustmen
twithin
the
nex
t fi
nan
cial
yea
r ar
e in
clu
ded
in t
he
follo
win
g n
ote
s:
Net
wo
rk a
sset
s (n
ote
1)
Ass
essi
ng
th
e ap
pro
pri
aten
ess
of
use
ful l
ife a
nd
res
idu
al v
alu
e
esti
mat
es o
f n
etw
ork
ass
ets
req
uir
es a
nu
mb
er o
f fa
cto
rs t
o b
e
con
sid
ered
su
ch a
s th
e p
hys
ical
co
nd
itio
n o
f th
e as
set,
exp
ecte
d
per
iod
of
use
of
the
asse
t b
y C
ho
rus,
tec
hn
olo
gic
al a
dva
nce
s,
reg
ula
tio
n a
nd
exp
ecte
d d
isp
osa
l pro
ceed
s fr
om
th
e fu
ture
sal
e
of
the
asse
t.
CFH
sec
uri
ties
(no
te 4
)
Det
erm
inin
g t
he
fair
val
ue
of
the
CFH
sec
uri
ties
req
uir
es a
ssu
mp
tio
ns
on
exp
ecte
d f
utu
re c
ash
flo
w a
nd
dis
cou
nt
rate
bas
ed o
n f
utu
re lo
ng
dat
ed s
wap
cu
rves
.
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts2
4
No
te 1
– N
etw
ork
ass
ets
Dep
reci
atio
n is
ch
arg
ed o
n a
str
aig
ht-
line
bas
is t
o w
rite
do
wn
the
cost
of
net
wo
rk a
sset
s to
its
esti
mat
ed r
esid
ual
val
ue
ove
r
its
esti
mat
ed u
sefu
l life
. Est
imat
ed u
sefu
l liv
es a
re a
s fo
llow
s:
Co
pp
er
cab
les
10-3
0 y
ear
s
Fib
re c
able
s2
0 y
ear
s
Du
cts
an
d m
anh
ole
s5
0 y
ear
s
Cab
ine
ts5
-14
ye
ars
Pro
pe
rty
5-5
0 y
ear
s
Ne
two
rk e
lec
tro
nic
s2-
14 y
ear
s
Oth
er
2-15
ye
ars
Oth
er n
etw
ork
ass
ets
incl
ud
e m
oto
r ve
hic
les,
net
wo
rk m
anag
emen
t
and
ad
min
istr
atio
n s
yste
ms
and
rad
io in
fras
tru
ctu
re.
An
y fu
ture
ad
vers
e im
pac
ts a
risi
ng
in a
sses
sin
g t
he
carr
yin
g v
alu
e
or
lives
of
Ch
oru
s’ n
etw
ork
ass
ets
cou
ld le
ad t
o f
utu
re im
pai
rmen
t
loss
es o
r in
crea
ses
in d
epre
ciat
ion
ch
arg
es t
hat
co
uld
aff
ect
futu
re e
arn
ing
s.
An
item
of
net
wo
rk a
sset
s an
d a
ny
sig
nifi
can
t p
art
is d
erec
og
nis
ed
up
on
dis
po
sal o
r w
hen
no
fu
ture
eco
no
mic
ben
efit
s ar
e ex
pec
ted
fro
m it
s u
se o
r d
isp
osa
l. W
her
e n
etw
ork
ass
ets
are
dis
po
sed
of,
the
pro
fit o
r lo
ss r
eco
gn
ised
in t
he
inco
me
stat
emen
t is
cal
cula
ted
as
the
diff
eren
ce b
etw
een
th
e sa
le p
rice
an
d t
he
carr
yin
g v
alu
e o
f th
e as
set.
No
n-m
on
etar
y it
ems
that
are
mea
sure
d in
ter
ms
of
his
tori
cal c
ost
in
a fo
reig
n c
urr
ency
are
tra
nsl
ated
usi
ng
th
e ex
chan
ge
rate
s as
at
the
dat
es o
f th
e in
itia
l tra
nsa
ctio
ns.
Lan
d a
nd
wo
rk in
pro
gre
ss a
re n
ot
dep
reci
ated
.
GR
OU
P
AS
AT
30
JU
NE
20
13
CO
PP
ER
C
AB
LES
$M
FIB
RE
C
AB
LES
$M
DU
CT
S A
ND
M
AN
HO
LES
$M
CA
BIN
ET
S$
MP
RO
PE
RT
Y$
M
NE
TW
OR
K
ELE
CT
RO
NIC
S$
MO
TH
ER
$M
WO
RK
IN
PR
OG
RE
SS $M
TO
TA
L$
M
Co
st
Bal
ance
as
at 1
Ju
ly 2
012
2,3
93
56
7 7
91
38
0
475
1
,30
6
18
8
119
6
,219
Ad
dit
ion
s -
-
-
-
-
-
-
6
46
6
46
Oth
er
-
-
-
-
-
-
1
1
2
Dis
po
sals
(93)
-
-
-
-
-
-
-
(93)
Tran
sfe
rs 1
(1
) -
-
1
-
(1
) -
-
Tran
sfe
rs f
rom
wo
rk in
pro
gre
ss 4
8
18
6
30
1 2
9
25
71
12
(672
) -
Bal
ance
as
at 3
0 J
un
e 2
013
2,3
49
7
52
1,0
92
40
9
50
1 1
,377
2
00
9
4
6,7
74
Acc
um
ula
ted
De
pre
ciat
ion
Bal
ance
as
at 1
Ju
ly 2
012
(1,7
34
) (2
07)
(324
) (1
56)
(20
0)
(1,0
13)
(174
) -
(3
,80
8)
De
pre
cia
tio
n (6
6)
(29
) (1
6)
(33)
(14
) (9
5) (9
) -
(2
62)
Dis
po
sals
92
-
-
-
-
-
-
-
92
Bal
ance
as
at 3
0 J
un
e 2
013
(1,7
08
) (2
36)
(34
0)
(18
9)
(214
) (1
,10
8)
(18
3) -
(3
,978
)
Ne
t c
arry
ing
am
ou
nt
64
1 5
16
752
2
20
2
87
26
9
17
94
2
,79
6
GR
OU
P
AS
AT
30
JU
NE
20
12
CO
PP
ER
C
AB
LES
$M
FIB
RE
C
AB
LES
$M
DU
CT
S A
ND
M
AN
HO
LES
$M
CA
BIN
ET
S$
MP
RO
PE
RT
Y$
M
NE
TW
OR
K
ELE
CT
RO
NIC
S$
MO
TH
ER
$M
WO
RK
IN
PR
OG
RE
SS $M
TO
TA
L$
M
Co
st
Bal
ance
as
at 1
De
cem
be
r 2
011
2,3
68
4
92
70
5 3
72
46
9
1,2
83
18
5 6
9
5,9
43
Ad
dit
ion
s -
-
-
-
-
-
-
2
82
28
2
Dis
po
sals
-
-
-
(5)
-
(1)
-
-
(6)
Tran
sfe
rs f
rom
wo
rk in
pro
gre
ss 2
5 7
5 8
6
13
6
24
3
(2
32)
-
Bal
ance
as
at 3
0 J
un
e 2
012
2,3
93
56
7 7
91
38
0
475
1
,30
6
18
8
119
6
,219
Acc
um
ula
ted
De
pre
ciat
ion
Bal
ance
as
at 1
De
cem
be
r 2
011
(1,6
93)
(19
4)
(317
) (1
46
) (1
92)
(952
) (1
69
) -
(3
,66
3)
De
pre
cia
tio
n (4
1) (1
3) (
7) (1
5) (8
) (6
2) (5
) -
(1
51)
Dis
po
sals
-
-
-
5
-
1
-
-
6
Bal
ance
as
at 3
0 J
un
e 2
012
(1,7
34
) (2
07)
(324
) (1
56)
(20
0)
(1,0
13)
(174
) -
(3
,80
8)
Ne
t c
arry
ing
am
ou
nt
659
3
60
4
67
224
2
75
29
3 1
4
119
2
,411
No
te 1
– N
etw
ork
ass
ets
con
tinu
ed
In t
he
stat
emen
t o
f fin
anci
al p
osi
tio
n, n
etw
ork
ass
ets
are
stat
ed a
t
cost
less
acc
um
ula
ted
dep
reci
atio
n a
nd
an
y ac
cum
ula
ted
imp
airm
ent
loss
es. T
he
cost
of
add
itio
ns
to n
etw
ork
ass
ets
and
cap
ital
wo
rk in
pro
gre
ss c
on
stru
cted
by
Ch
oru
s in
clu
des
th
e co
st o
f al
l mat
eria
ls
use
d in
co
nst
ruct
ion
, dir
ect
lab
ou
r co
sts
spec
ifica
lly a
sso
ciat
ed w
ith
con
stru
ctio
n, i
nte
rest
co
sts
that
are
att
rib
uta
ble
to
th
e as
set,
res
ou
rce
man
agem
ent
con
sen
t co
sts
and
att
rib
uta
ble
ove
rhea
ds.
Rep
airs
an
d m
ain
ten
ance
co
sts
are
reco
gn
ised
in t
he
inco
me
stat
emen
t as
incu
rred
.
Est
imat
ing
use
ful l
ives
an
d r
esid
ual
val
ues
of
net
wo
rk a
sset
s
Th
e d
eter
min
atio
n o
f th
e ap
pro
pri
ate
use
ful l
ife f
or
a p
arti
cula
r as
set
req
uir
es m
anag
emen
t to
mak
e ju
dg
emen
ts a
bo
ut,
am
on
gst
oth
er
fact
ors
, th
e ex
pec
ted
per
iod
of
serv
ice
po
ten
tial
of
the
asse
t, t
he
likel
iho
od
of
the
asse
t b
eco
min
g o
bso
lete
as
a re
sult
of
tech
no
log
ical
adva
nce
s, t
he
likel
iho
od
of
Ch
oru
s ce
asin
g t
o u
se t
he
asse
t in
its
bu
sin
ess
op
erat
ion
s an
d t
he
effe
ct o
f g
ove
rnm
ent
reg
ula
tio
n.
Wh
ere
an it
em o
f n
etw
ork
ass
ets
com
pri
ses
maj
or
com
po
nen
ts
hav
ing
diff
eren
t u
sefu
l liv
es, t
he
com
po
nen
ts a
re a
cco
un
ted
fo
r
as s
epar
ate
item
s o
f n
etw
ork
ass
ets.
Wh
ere
the
rem
ain
ing
use
ful l
ives
or
reco
vera
ble
val
ues
hav
e
dim
inis
hed
du
e to
tec
hn
olo
gic
al, r
egu
lato
ry o
r m
arke
t co
nd
itio
n
chan
ges
, dep
reci
atio
n is
acc
eler
ated
. Th
e as
set’s
res
idu
al v
alu
es,
use
ful l
ives
, an
d m
eth
od
s o
f d
epre
ciat
ion
are
rev
iew
ed a
nn
ual
ly
and
ad
just
ed p
rosp
ecti
vely
, if
app
rop
riat
e.
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
25
Th
e P
aren
t d
oes
no
t h
old
an
y n
etw
ork
ass
ets.
Th
ere
are
no
res
tric
tio
ns
on
Ch
oru
s n
etw
ork
ass
ets
or
any
net
wo
rk a
sset
s p
led
ged
as
secu
riti
es f
or
liab
iliti
es. A
t 3
0 J
un
e 2
013
the
con
trac
tual
co
mm
itm
ent
for
acq
uis
itio
n a
nd
co
nst
ruct
ion
of
net
wo
rk a
sset
s w
as $
28
mill
ion
(30
Ju
ne
20
12: $
23
mill
ion
).
Dep
reci
atio
n
Ch
oru
s re
ceiv
es f
un
din
g f
rom
th
e C
row
n t
o f
inan
ce t
he
cap
ital
exp
end
itu
re a
sso
ciat
ed w
ith
th
e d
evel
op
men
t o
f th
e U
ltra
-Fas
t
No
te 1
– N
etw
ork
ass
ets
con
tinu
ed
Bro
adb
and
net
wo
rk, r
ura
l bro
adb
and
ser
vice
s an
d o
ther
ser
vice
s.
Th
e co
ntr
act
for
Ult
ra-F
ast
Bro
adb
and
is a
gre
ed b
etw
een
th
e P
aren
t
and
Cro
wn
Fib
re H
old
ing
s. T
he
Par
ent
rece
ives
th
e C
row
n f
un
din
g
dir
ectl
y, h
ow
ever
th
e co
nst
ruct
ion
of
the
net
wo
rk a
sset
s is
car
ried
ou
t b
y th
e su
bsi
dia
ry. F
un
din
g is
off
set
agai
nst
dep
reci
atio
n o
ver
the
life
of
the
asse
ts t
he
fun
din
g is
use
d t
o c
on
stru
ct. C
row
n f
un
din
g
rele
ased
ag
ain
st d
epre
ciat
ion
fo
r th
e cu
rren
t p
erio
d is
as
follo
ws:
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
De
pre
cia
tio
n c
har
ge
d o
n n
etw
ork
ass
ets
26
2 1
51
-
-
Less
: Cro
wn
fu
nd
ing
– U
ltra
-Fas
t B
road
ban
d (1
) -
(1
) -
C
row
n f
un
din
g –
Ru
ral B
road
ban
d I
nit
iati
ve (1
) -
-
-
C
row
n f
un
din
g –
oth
er
(2)
(1)
-
-
Tota
l de
pre
ciat
ion
258
1
50
(1)
-
Ref
er t
o n
ote
5 f
or
info
rmat
ion
on
Cro
wn
fu
nd
ing
.
Pro
per
ty E
xch
ang
es
Ch
oru
s h
as le
ased
pro
per
ty e
xch
ang
e sp
ace
ow
ned
by
Tele
com
sub
ject
to
fin
ance
leas
e ar
ran
gem
ents
. Th
ese
hav
e b
een
incl
ud
ed
in C
ho
rus’
net
wo
rk a
sset
s u
nd
er t
he
pro
per
ty c
ateg
ory
. As
at
30
Ju
ne
20
13 t
he
pro
per
ty e
xch
ang
e as
sets
cap
ital
ised
un
der
a
finan
ce le
ase
had
a c
ost
of
$15
7 m
illio
n (3
0 J
un
e 2
012
: $15
7 m
illio
n)
tog
eth
er w
ith
acc
um
ula
ted
dep
reci
atio
n o
f $
7 m
illio
n (3
0 J
un
e 2
012
:
$3
mill
ion
).
Net
wo
rk e
lect
ron
ics
Ch
oru
s h
as jo
int
arra
ng
emen
ts f
or
use
of
cert
ain
net
wo
rk e
lect
ron
ics
asse
ts w
ith
Tel
eco
m. T
he
equ
ipm
ent
use
d b
y C
ho
rus
is in
clu
ded
in
the
net
wo
rk e
lect
ron
ics
cate
go
ry o
f n
etw
ork
ass
ets.
As
at 3
0 J
un
e
20
13 t
he
equ
ipm
ent
cap
ital
ised
had
a c
ost
of
$16
mill
ion
(30
Ju
ne
20
12: $
16 m
illio
n) t
og
eth
er w
ith
acc
um
ula
ted
dep
reci
atio
n o
f $
7
mill
ion
(30
Ju
ne
20
12: $
3 m
illio
n).
Imp
airm
ent
At
each
rep
ort
ing
dat
e, C
ho
rus
revi
ews
the
carr
yin
g a
mo
un
ts o
f
its
net
wo
rk a
sset
s to
det
erm
ine
wh
eth
er t
her
e is
an
y in
dic
atio
n t
hat
tho
se a
sset
s h
ave
suff
ered
an
imp
airm
ent
loss
. If
any
ind
icat
ion
exi
sts,
the
reco
vera
ble
am
ou
nt
of
the
asse
t is
est
imat
ed t
o d
eter
min
e th
e
exte
nt,
if a
ny,
of
the
imp
airm
ent
loss
rec
og
nis
ed in
ear
nin
gs.
Sh
ou
ld
the
con
dit
ion
s th
at g
ave
rise
to
th
e im
pai
rmen
t lo
ss n
o lo
ng
er e
xist
,
and
th
e as
sets
are
no
lon
ger
co
nsi
der
ed t
o b
e im
pai
red
, a r
ever
sal
of
an im
pai
rmen
t lo
ss w
ou
ld b
e re
cog
nis
ed im
med
iate
ly in
ear
nin
gs.
No
imp
airm
ent
loss
on
th
e n
etw
ork
ass
ets
was
iden
tifie
d in
th
e
curr
ent
per
iod
(30
Ju
ne
20
12: n
il).
Cap
ital
ised
inte
rest
Fin
ance
co
sts
are
cap
ital
ised
on
qu
alify
ing
item
s o
f n
etw
ork
ass
ets
at a
n a
nn
ual
ised
rat
e o
f 6
.00
% (3
0 J
un
e 2
012
: 6.0
0%
). In
tere
st is
cap
ital
ised
fo
r th
e p
erio
d r
equ
ired
to
co
mp
lete
th
e n
etw
ork
ass
ets
and
pre
par
e fo
r it
s in
ten
ded
use
. In
th
e cu
rren
t ye
ar f
inan
ce c
ost
s
tota
llin
g $
6 m
illio
n (3
0 J
un
e 2
012
: $3
mill
ion
) hav
e b
een
cap
ital
ised
agai
nst
net
wo
rk a
sset
s.
Soft
war
e an
d o
ther
inta
ng
ible
ass
ets
are
init
ially
mea
sure
d a
t co
st.
Th
e d
irec
t co
sts
asso
ciat
ed w
ith
th
e d
evel
op
men
t o
f n
etw
ork
an
d
bu
sin
ess
soft
war
e fo
r in
tern
al u
se a
re c
apit
alis
ed w
her
e p
roje
ct
succ
ess
is p
rob
able
an
d t
he
cap
ital
isat
ion
cri
teri
a is
met
. Fo
llow
ing
init
ial r
eco
gn
itio
n, s
oft
war
e an
d o
ther
inta
ng
ible
ass
ets
are
stat
ed a
t
cost
less
acc
um
ula
ted
am
ort
isat
ion
an
d im
pai
rmen
t lo
sses
. So
ftw
are
and
oth
er in
tan
gib
le a
sset
s w
ith
a f
init
e lif
e ar
e am
ort
ised
fro
m t
he
dat
e th
e as
set
is r
ead
y fo
r u
se o
n a
str
aig
ht-
line
bas
is o
ver
its
esti
mat
ed u
sefu
l life
wh
ich
is a
s fo
llow
s
So
ftw
are
2–8
ye
ars
Oth
er
inta
ng
ible
s 6
-20
ye
ars
Oth
er in
tan
gib
les
mai
nly
co
nsi
st o
f la
nd
eas
emen
ts.
At
each
rep
ort
ing
dat
e, C
ho
rus
revi
ews
the
carr
yin
g a
mo
un
ts o
f it
s
soft
war
e an
d o
ther
inta
ng
ible
ass
ets
to d
eter
min
e w
het
her
th
ere
is
any
ind
icat
ion
th
at t
ho
se a
sset
s h
ave
suff
ered
an
imp
airm
ent
loss
.
If a
ny
ind
icat
ion
exi
sts,
th
e re
cove
rab
le a
mo
un
t o
f th
e as
set
is
esti
mat
ed t
o d
eter
min
e th
e ex
ten
t, if
an
y, o
f th
e im
pai
rmen
t lo
ss
reco
gn
ised
in e
arn
ing
s. S
ho
uld
th
e co
nd
itio
ns
that
gav
e ri
se t
o
the
imp
airm
ent
loss
no
lon
ger
exi
st, a
nd
th
e as
sets
are
no
lon
ger
con
sid
ered
to
be
imp
aire
d, a
rev
ersa
l of
an im
pai
rmen
t lo
ss w
ou
ld
be
reco
gn
ised
imm
edia
tely
in e
arn
ing
s.
Wh
ere
esti
mat
ed u
sefu
l liv
es o
r re
cove
rab
le v
alu
es h
ave
dim
inis
hed
du
e to
tec
hn
olo
gic
al c
han
ge
or
mar
ket
con
dit
ion
s, a
mo
rtis
atio
n
is a
ccel
erat
ed.
GR
OU
P
AS
AT
30
JU
NE
20
13SO
FTW
AR
E$
M
OT
HE
R
INT
AN
GIB
LES
$M
WO
RK
IN
PR
OG
RE
SS $M
TO
TA
L$
M
Co
st
Bal
ance
as
at 1
Ju
ly 2
012
36
7 6
3
4
40
7
Ad
dit
ion
s -
-
3
5 3
5
Dis
po
sals
(1)
-
-
(1)
Tran
sfe
rs f
rom
wo
rk in
pro
gre
ss 4
2 -
(4
2) -
Bal
ance
as
at 3
0 J
un
e 2
013
40
8
6
27
44
1
Acc
um
ula
ted
am
ort
isat
ion
Bal
ance
as
at 1
Ju
ly 2
012
(227
) -
-
(2
27)
Am
ort
isat
ion
(60
) (1
) -
(6
1)
Bal
ance
as
at 3
0 J
un
e 2
013
(28
7) (1
) -
(2
88
)
Ne
t c
arry
ing
am
ou
nt
121
5
2
7 1
53
GR
OU
P
AS
AT
30
JU
NE
20
12SO
FTW
AR
E$
M
OT
HE
R
INT
AN
GIB
LES
$M
WO
RK
IN
PR
OG
RE
SS $M
TO
TA
L$
M
Co
st
Bal
ance
as
at 1
De
cem
be
r 2
011
338
5
-
3
43
Ad
dit
ion
s -
-
6
4
64
Tran
sfe
rs f
rom
wo
rk in
pro
gre
ss 2
9
1
(30
) -
Bal
ance
as
at 3
0 J
un
e 2
012
36
7 6
3
4
40
7
Acc
um
ula
ted
am
ort
isat
ion
Bal
ance
as
at 1
De
cem
be
r 2
011
(18
8)
-
-
(18
8)
Am
ort
isat
ion
(39
) -
-
(3
9)
Bal
ance
as
at 3
0 J
un
e 2
012
(227
) -
-
(2
27)
Ne
t c
arry
ing
am
ou
nt
14
0
6
34
1
80
No
te 2
– S
oft
war
e an
d o
ther
inta
ng
ible
s
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts2
6
Th
e P
aren
t d
oes
no
t h
old
an
y so
ftw
are
and
oth
er in
tan
gib
le a
sset
s.
Th
ere
are
no
res
tric
tio
ns
on
Ch
oru
s so
ftw
are
and
oth
er in
tan
gib
le
asse
ts o
r an
y so
ftw
are
and
oth
er in
tan
gib
le a
sset
s p
led
ged
as
secu
riti
es f
or
liab
iliti
es. A
t 3
0 J
un
e 2
013
th
e co
ntr
actu
al c
om
mit
men
t
for
acq
uis
itio
n o
f so
ftw
are
and
oth
er in
tan
gib
le a
sset
s w
as $
10 m
illio
n
(30
Ju
ne
20
12: $
2 m
illio
n).
Shar
ed s
yste
ms
Ch
oru
s sh
ares
a n
um
ber
of
Info
rmat
ion
Tec
hn
olo
gy
(IT) s
yste
ms
wit
h T
elec
om
wit
h s
om
e sy
stem
s o
wn
ed b
y C
ho
rus
and
so
me
ow
ned
by
Tele
com
. Du
e to
th
e te
rms
of
the
go
vern
ance
fra
mew
ork
in p
lace
, th
ese
syst
ems
are
dee
med
to
be
join
tly
con
tro
lled
ass
ets,
as d
efin
ed in
NZ
IAS
31:
Inte
rest
s in
Jo
int
Ven
ture
s. F
or
asse
ts t
hat
it
do
es n
ot
ow
n, C
ho
rus
reco
gn
ises
its
shar
e o
f th
e jo
intl
y co
ntr
olle
d
asse
ts, a
s w
ell a
s a
liab
ility
fo
r th
e fu
ture
pay
men
ts d
ue,
sim
ilar
to
a fin
ance
leas
e. F
or
asse
ts t
hat
it d
oes
ow
n, C
ho
rus
der
eco
gn
ises
the
shar
e o
f th
e as
set
use
d b
y Te
leco
m, a
s w
ell a
s re
cog
nis
ing
a
rece
ivab
le f
or
the
futu
re r
ecei
pts
du
e. A
s at
30
Ju
ne
20
13 C
ho
rus
reco
gn
ised
join
tly
con
tro
lled
sys
tem
ass
ets
ow
ned
by
Tele
com
wit
h a
net
bo
ok
valu
e in
Ch
oru
s fin
anci
al s
tate
men
ts o
f $
3 m
illio
n
(30
Ju
ne
20
12: $
8 m
illio
n).
No
te 2
– S
oft
war
e an
d o
ther
inta
ng
ible
s co
ntin
ued
No
te 3
– D
ebt
Deb
t is
incl
ud
ed a
s n
on
-cu
rren
t lia
bili
ties
exc
ept
for
tho
se w
ith
mat
uri
ties
less
th
an 1
2 m
on
ths
fro
m t
he
rep
ort
ing
dat
e, w
hic
h a
re
clas
sifie
d a
s cu
rren
t lia
bili
ties
.
Deb
t is
init
ially
mea
sure
d a
t fa
ir v
alu
e, le
ss a
ny
tran
sact
ion
co
sts
that
are
dir
ectl
y at
trib
uta
ble
to
th
e is
sue
of
the
inst
rum
ents
. Deb
t is
sub
seq
uen
tly
mea
sure
d a
t am
ort
ised
co
st u
sin
g t
he
effe
ctiv
e in
tere
st
met
ho
d. T
he
wei
gh
ted
eff
ecti
ve in
tere
st r
ate
on
deb
t in
clu
din
g t
he
effe
ct o
f d
eriv
ativ
e fin
anci
al in
stru
men
ts w
as 5
.88
% (3
0 J
un
e 2
012
:
5.71
%).
GR
OU
P A
ND
PA
RE
NT
DU
E D
AT
E2
013 $M
20
12 $M
Syn
dic
ate
d b
ank
fac
ility
A2
3 N
ov
20
15 6
75
675
Syn
dic
ate
d b
ank
fac
ility
B2
3 N
ov
20
17 5
20
430
Eu
ro m
ed
ium
te
rm n
ote
s 6
Ap
r 2
02
0 5
09
5
13
Less
: sy
nd
icat
ed
loan
s fa
cili
ty f
ee
(7)
(9)
1,6
97
1,6
09
Cu
rre
nt
-
-
No
n-c
urr
en
t 1
,69
7 1
,60
9
Syn
dic
ated
ban
k fa
cilit
y
Ch
oru
s h
as in
pla
ce a
$1,
35
0 m
illio
n s
ynd
icat
ed b
ank
faci
lity
wit
h
two
tra
nch
es o
n m
arke
t st
and
ard
ter
ms
and
co
nd
itio
ns.
Th
e m
atu
rity
of
the
faci
lity
tran
ches
hav
e b
een
ext
end
ed b
y o
ne
year
wit
h n
ew
mat
uri
ty d
ates
in 2
015
an
d 2
017
. Th
e am
ou
nt
of
un
dra
wn
syn
dic
ated
ban
k fa
cilit
y th
at is
ava
ilab
le f
or
futu
re o
per
atin
g a
ctiv
itie
s is
$15
5
mill
ion
(30
Ju
ne
20
12: $
245
mill
ion
). T
he
syn
dic
ated
ban
k fa
cilit
y
is h
eld
wit
h b
ank
and
inst
itu
tio
nal
co
un
terp
arti
es r
ated
-A
to
AA
A,
bas
ed o
n r
atin
g a
gen
cy S
tan
dar
d &
Po
or’s
rat
ing
s.
Eu
ro M
ediu
m T
erm
No
tes
(EM
TN
)
GR
OU
P A
ND
PA
RE
NT
INT
ER
EST
RA
TE
20
13 $M
20
12 $M
26
0 m
illio
n G
BP
6.7
5%
50
9
513
Ch
oru
s u
tilis
es h
edg
ing
inst
rum
ents
to
man
age
the
inte
rest
rat
e
risk
ass
oci
ated
wit
h t
he
syn
dic
ated
ban
k fa
cilit
y. T
he
Gro
up
man
ages
inte
rest
rat
e ex
po
sure
wit
hin
Bo
ard
ap
pro
ved
par
amet
ers
set
ou
t
in t
he
trea
sury
po
licy.
Th
e ca
rryi
ng
val
ue
of
syn
dic
ated
ban
k fa
cilit
y ap
pro
xim
ates
its
fair
val
ue.
Ch
oru
s h
as in
pla
ce c
ross
cu
rren
cy in
tere
st r
ate
swap
s to
hed
ge
the
fore
ign
cu
rren
cy e
xpo
sure
to
th
e E
MT
N. T
he
cro
ss c
urr
ency
inte
rest
rate
sw
aps
enti
tle
Ch
oru
s to
rec
eive
GB
P p
rin
cip
al a
nd
GB
P f
ixed
cou
po
n p
aym
ents
fo
r N
ZD
pri
nci
pal
an
d N
ZD
flo
atin
g in
tere
st
pay
men
ts. T
he
flo
atin
g in
tere
st r
ate
exp
osu
re o
n t
he
NZ
D in
tere
st
pay
men
ts h
ave
bee
n h
edg
ed u
sin
g in
tere
st r
ate
swap
s.
Th
e fo
llow
ing
tab
le r
eco
nci
les
EM
TN
at
hed
ged
rat
es t
o E
MT
N
at s
po
t ra
tes
as r
epo
rted
un
der
IFR
S. E
MT
N a
t h
edg
ed r
ates
is a
no
n-G
AA
P m
easu
re a
nd
is n
ot
def
ined
in a
cco
rdan
ce w
ith
NZ
IFR
S.
GR
OU
P A
ND
PA
RE
NT
20
13 $M
20
12 $M
EM
TN
50
9
513
Imp
act
of
he
dg
ed
rat
es
use
d 1
68
1
64
EM
TN
at
he
dg
ed
rat
es
677
6
77
Sch
edu
le o
f m
atu
riti
es
GR
OU
P A
ND
PA
RE
NT
20
13 $M
20
12 $M
Cu
rre
nt
-
-
Du
e 1
to
2 y
ear
s -
-
Du
e 2
to
3 y
ear
s 6
75
675
Du
e 3
to
4 y
ear
s -
-
Du
e 4
to
5 y
ear
s 5
20
430
Du
e o
ver
5 y
ear
s 5
09
5
13
Tota
l du
e af
ter
on
e ye
ar 1
,70
4
1,6
18
Less
: sy
nd
icat
ed
loan
s fa
cili
ty f
ee
(7)
(9)
1,6
97
1,6
09
No
ne
of
Ch
oru
s’ d
ebt
has
bee
n s
ecu
red
ag
ain
st a
sset
s.
Ho
wev
er, t
her
e ar
e fin
anci
al c
ove
nan
ts a
nd
eve
nt
of
def
ault
tri
gg
ers,
as d
efin
ed in
th
e va
rio
us
deb
t ag
reem
ents
. Th
ere
hav
e n
ot
bee
n
any
trig
ger
eve
nts
or
bre
ach
es in
co
ven
ants
in t
he
curr
ent
per
iod
(30
Ju
ne
20
12: n
il).
Ch
oru
s N
ew Z
eala
nd
Lim
ited
(su
bsi
dia
ry) h
as p
rovi
ded
a g
uar
ante
e
to t
he
len
der
s in
res
pec
t o
f th
e C
ho
rus
Lim
ited
syn
dic
ated
ban
k
faci
lity
and
EM
TN
.
Ref
er t
o n
ote
21
for
info
rmat
ion
on
fin
anci
al r
isk
man
agem
ent.
Th
e fa
ir v
alu
e o
f E
MT
N, c
alcu
late
d b
ased
on
th
e p
rese
nt
valu
e o
f
futu
re p
rin
cip
al a
nd
inte
rest
cas
h fl
ow
s, d
isco
un
ted
at
mar
ket
inte
rest
rate
s at
bal
ance
dat
e, w
as $
58
1 m
illio
n (3
0 J
un
e 2
012
: $5
76 m
illio
n)
com
par
ed t
o a
car
ryin
g v
alu
e o
f $
50
9 m
illio
n (3
0 J
un
e 2
012
:
$5
13 m
illio
n).
No
te 3
– D
ebt
con
tinu
ed
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
27
No
te 4
– C
FH s
ecu
riti
es
Ch
oru
s re
ceiv
es f
un
din
g f
rom
th
e C
row
n t
o f
inan
ce c
on
stru
ctio
n
cost
s as
soci
ated
wit
h t
he
dev
elo
pm
ent
of
the
UFB
net
wo
rk. C
ho
rus
rece
ives
fu
nd
ing
at
a ra
te o
f $
1,11
8 f
or
ever
y p
rem
ises
pas
sed
(as
cert
ified
by
CFH
), in
ret
urn
Ch
oru
s is
sues
CFH
eq
uit
y se
curi
ties
,
CFH
deb
t se
curi
ties
an
d C
FH w
arra
nts
. Th
e eq
uit
y an
d d
ebt
secu
riti
es
issu
ed b
y C
ho
rus
hav
e an
issu
e p
rice
of
$1
and
are
issu
ed o
n a
50
:50
bas
is. F
or
each
pre
mis
es p
asse
d, $
55
9 o
f eq
uit
y se
curi
ties
an
d $
55
9
of
deb
t se
curi
ties
are
issu
ed b
y C
ho
rus
for
wh
ich
Ch
oru
s re
ceiv
es
$1,
118
fu
nd
ing
in r
etu
rn. C
FH w
arra
nts
are
issu
ed f
or
nil
valu
e.
Th
e to
tal c
om
mit
ted
fu
nd
ing
ava
ilab
le f
or
Ch
oru
s o
ver
the
per
iod
of
UFB
net
wo
rk c
on
stru
ctio
n is
exp
ecte
d t
o b
e $
92
9 m
illio
n.
Th
e C
FH e
qu
ity
and
deb
t se
curi
ties
are
rec
og
nis
ed in
itia
lly a
t fa
ir
valu
e p
lus
any
dir
ectl
y at
trib
uta
ble
tra
nsa
ctio
n c
ost
s. S
ub
seq
uen
tly
they
are
mea
sure
d a
t am
ort
ised
co
st u
sin
g t
he
effe
ctiv
e in
tere
st
met
ho
d. T
he
fair
val
ue
is d
eriv
ed b
y d
isco
un
tin
g t
he
$5
59
of
equ
ity
secu
riti
es a
nd
$5
59
of
deb
t se
curi
ties
per
pre
mis
es p
asse
d b
y th
e
effe
ctiv
e in
tere
st r
ate
bas
ed o
n m
arke
t ra
tes.
Th
e d
iffer
ence
bet
wee
n
fun
din
g r
ecei
ved
($1,
118
per
pre
mis
es p
asse
d) a
nd
th
e fa
ir v
alu
e o
f
the
secu
riti
es is
rec
og
nis
ed a
s C
row
n f
un
din
g. O
ver
tim
e, t
he
CFH
deb
t an
d e
qu
ity
secu
riti
es in
crea
se t
o f
ace
valu
e an
d t
he
Cro
wn
fun
din
g is
rel
ease
d a
gai
nst
dep
reci
atio
n a
nd
red
uce
s to
nil.
CFH
eq
uit
y se
curi
ties
CFH
eq
uit
y se
curi
ties
are
a c
lass
of
no
n in
tere
st b
eari
ng
sec
uri
ty
that
car
ry n
o r
igh
t to
vo
te a
t m
eeti
ng
s o
f h
old
ers
of
Ch
oru
s o
rdin
ary
shar
es, b
ut
enti
tle
the
ho
lder
to
a p
refe
ren
tial
rig
ht
to r
epay
men
t o
n
liqu
idat
ion
an
d a
dd
itio
nal
rig
hts
th
at r
elat
e to
Ch
oru
s’ p
erfo
rman
ce
un
der
its
con
stru
ctio
n c
on
trac
t w
ith
CFH
.
Div
iden
ds
will
bec
om
e p
ayab
le o
n a
po
rtio
n o
f th
e C
FH e
qu
ity
secu
riti
es f
rom
20
25
on
war
ds,
wit
h t
he
po
rtio
n o
f C
FH e
qu
ity
secu
riti
es t
hat
att
ract
div
iden
ds
incr
easi
ng
ove
r ti
me.
A g
reat
er
po
rtio
n o
f C
FH e
qu
ity
secu
riti
es a
ttra
ct d
ivid
end
s if
the
pro
po
rtio
n
of
pre
mis
es w
ith
a f
ibre
co
nn
ecti
on
wit
hin
Ch
oru
s’ c
ove
rag
e ar
ea a
t
30
Ju
ne
20
20
do
es n
ot
exce
ed 2
0%
. Th
e d
ivid
end
rat
e w
ill b
e eq
ual
to t
he
New
Zea
lan
d 1
80
-day
ban
k b
ill r
ate
plu
s a
mar
gin
of
6%
. CFH
equ
ity
inst
rum
ents
can
be
sett
led
by
issu
ing
Ch
oru
s sh
ares
val
ued
at
a 5
% d
isco
un
t to
th
e 2
0-d
ay v
olu
me
wei
gh
ted
ave
rag
e p
rice
fo
r
Ch
oru
s sh
ares
tra
ded
in o
rdin
ary
trad
ing
on
th
e N
ZX
Mai
n B
oar
d.
Th
e C
FH e
qu
ity
secu
riti
es a
re t
reat
ed a
s a
com
po
un
d f
inan
cial
inst
rum
ent
wit
h a
Cro
wn
fu
nd
ing
co
mp
on
ent
du
e to
th
e in
stru
men
t
incl
ud
ing
an
inte
rest
fre
e lo
an f
rom
a g
ove
rnm
ent
enti
ty. O
n in
itia
l
reco
gn
itio
n, t
he
fair
val
ue
of
the
liab
ility
co
mp
on
ent
of
the
com
po
un
d in
stru
men
t is
cal
cula
ted
usi
ng
mar
ket
inp
uts
wit
h n
o
resi
du
al a
mo
un
ts a
lloca
ted
to
eq
uit
y. U
nti
l th
e lia
bili
ty c
om
po
nen
t
of
the
com
po
un
d in
stru
men
t ex
pir
es t
he
CFH
eq
uit
y se
curi
ties
are
req
uir
ed t
o b
e d
iscl
ose
d a
s a
liab
ility
. Th
e d
iffer
ence
bet
wee
n t
he
face
valu
e o
f th
e C
FH e
qu
ity
secu
riti
es a
nd
th
e fa
ir v
alu
e o
f th
e lia
bili
ty
com
po
nen
t is
th
en r
eco
rded
as
Cro
wn
fu
nd
ing
.
Aft
er t
his
, th
e lia
bili
ty c
om
po
nen
t is
mea
sure
d a
t am
ort
ised
co
st u
sin
g
the
effe
ctiv
e in
tere
st m
eth
od
an
d t
he
Cro
wn
fu
nd
ing
is a
mo
rtis
ed t
o
dep
reci
atio
n o
n a
sys
tem
atic
bas
is o
ver
the
use
ful l
ives
of
the
rele
van
t
UFB
ass
ets.
CFH
deb
t se
curi
ties
CFH
deb
t se
curi
ties
are
un
secu
red
, no
n in
tere
st b
eari
ng
an
d c
arry
no
vo
tin
g r
igh
ts a
t m
eeti
ng
s o
f h
old
ers
of
Ch
oru
s o
rdin
ary
shar
es.
Ch
oru
s is
req
uir
ed t
o r
edee
m t
he
CFH
deb
t se
curi
ties
in t
ran
ches
fro
m 2
02
5 t
o 2
03
6 (a
t th
e la
test
) by
rep
ayin
g t
he
face
val
ue
to C
FH.
An
acc
eler
ated
rep
aym
ent
sch
edu
le a
pp
lies
if th
e p
rop
ort
ion
of
pre
mis
es w
ith
a f
ibre
co
nn
ecti
on
wit
hin
Ch
oru
s’ c
ove
rag
e ar
ea a
t
30
Ju
ne
20
20
do
es n
ot
exce
ed 2
0%
.
Th
e C
FH d
ebt
secu
riti
es a
re t
reat
ed a
s a
finan
cial
liab
ility
wit
h a
Cro
wn
fu
nd
ing
co
mp
on
ent
du
e to
th
e in
stru
men
t in
clu
din
g a
n
inte
rest
fre
e lo
an f
rom
a g
ove
rnm
ent
enti
ty. O
n in
itia
l rec
og
nit
ion
the
diff
eren
ce b
etw
een
th
e fa
ce v
alu
e o
f th
e C
FH d
ebt
secu
riti
es a
nd
thei
r fa
ir v
alu
e (c
alcu
late
d u
sin
g m
arke
t in
pu
ts) i
s re
cord
ed a
s C
row
n
fun
din
g. A
fter
th
is t
he
liab
ility
co
mp
on
ent
is m
easu
red
at
amo
rtis
ed
cost
usi
ng
th
e ef
fect
ive
inte
rest
met
ho
d a
nd
th
e C
row
n f
un
din
g is
amo
rtis
ed t
o d
epre
ciat
ion
on
a s
yste
mat
ic b
asis
ove
r th
e u
sefu
l liv
es
of
the
rele
van
t U
FB a
sset
s.
Th
e p
rin
cip
al a
mo
un
t o
f C
FH d
ebt
secu
riti
es c
on
sist
s o
f a
sen
ior
po
rtio
n a
nd
a s
ub
ord
inat
ed p
ort
ion
. Th
e se
nio
r p
ort
ion
ran
ks e
qu
ally
wit
h a
ll o
ther
un
secu
red
, un
sub
ord
inat
ed c
red
ito
rs o
f C
ho
rus,
and
has
th
e b
enef
it o
f an
y n
egat
ive
ple
dg
e co
ven
ant
that
may
be
con
tain
ed in
an
y o
f C
ho
rus’
deb
t ar
ran
gem
ents
. Th
e su
bo
rdin
ated
po
rtio
n r
anks
ab
ove
ord
inar
y sh
ares
of
Ch
oru
s. T
he
init
ial v
alu
e o
f
the
sen
ior
po
rtio
n is
th
e p
rese
nt
valu
e (u
sin
g a
dis
cou
nt
rate
of
8.5
%)
of
the
sum
rep
ayab
le o
n t
he
CFH
deb
t se
curi
ties
, an
d t
he
init
ial
sub
ord
inat
ed p
ort
ion
will
be
the
diff
eren
ce b
etw
een
th
e is
sue
pri
ce
of
the
CFH
deb
t se
curi
ty a
nd
th
e va
lue
of
the
sen
ior
po
rtio
n.
CFH
war
ran
ts
Ch
oru
s is
sues
CFH
war
ran
ts t
o C
FH f
or
nil
con
sid
erat
ion
alo
ng
wit
h
each
tra
nch
e o
f C
FH e
qu
ity
secu
riti
es. E
ach
CFH
war
ran
t g
ives
CFH
the
rig
ht,
on
a s
pec
ified
exe
rcis
e d
ate,
to
pu
rch
ase
at a
set
str
ike
pri
ce
a C
ho
rus
shar
e to
be
issu
ed b
y C
ho
rus.
A C
FH w
arra
nt
will
th
eref
ore
be
‘in t
he
mo
ney
’ to
th
e ex
ten
t th
at t
he
pri
ce t
hat
CFH
can
rea
lise
for
the
Ch
oru
s sh
are
exce
eds
the
pri
ce p
aid
to
exe
rcis
e th
e C
FH w
arra
nt.
Th
e st
rike
pri
ce f
or
a C
FH w
arra
nt
is b
ased
on
a t
ota
l sh
areh
old
er
retu
rn o
f 16
% p
er a
nn
um
on
Ch
oru
s sh
ares
ove
r th
e p
erio
d
Dec
emb
er 2
011
to
Ju
ne
20
36
. Th
eref
ore
, a h
old
er o
f a
CFH
war
ran
t
is o
nly
like
ly t
o e
xerc
ise
the
CFH
war
ran
t if
tota
l sh
areh
old
er r
etu
rn
on
Ch
oru
s sh
ares
has
exc
eed
ed 1
6%
per
an
nu
m o
ver
the
per
iod
Jun
e 2
02
5 t
o J
un
e 2
03
6.
GR
OU
P A
ND
PA
RE
NT
20
13 $M
20
12 $M
CFH
de
bt
sec
uri
tie
s 2
0
2
CFH
eq
uit
y se
cu
riti
es
10
1
Tota
l CFH
se
curi
tie
s 3
0
3
Th
e ca
rryi
ng
val
ue
of
CFH
deb
t an
d e
qu
ity
secu
riti
es a
pp
roxi
mat
es
its
fair
val
ue
and
incl
ud
es $
1 m
illio
n (3
0 J
un
e 2
012
: nil)
of
no
tio
nal
inte
rest
.
Key
ass
um
pti
on
s
Alt
ho
ug
h C
ho
rus
bel
ieve
s th
at t
he
esti
mat
e o
f th
e lia
bili
ty
com
po
nen
ts o
f th
e C
FH s
ecu
riti
es o
n in
itia
l rec
og
nit
ion
is
app
rop
riat
e, t
he
use
of
diff
eren
t m
eth
od
olo
gie
s o
r as
sum
pti
on
s
cou
ld le
ad t
o d
iffer
ent
mea
sure
men
ts o
f th
ese
com
po
nen
t p
arts
.
Th
e lia
bili
ty c
om
po
nen
ts o
f th
e C
FH s
ecu
riti
es h
ave
bee
n c
alcu
late
d
usi
ng
exp
ecte
d c
ash
flo
ws
dis
cou
nte
d a
t ri
sk-a
dju
sted
dis
cou
nt
rate
s. A
s th
e n
um
ber
of
CFH
sec
uri
ties
exp
ecte
d t
o b
e is
sued
incr
ease
s o
ver
tim
e th
e p
ote
nti
al im
pac
t o
f al
tern
ativ
e m
eth
od
olo
gie
s
and
ass
um
pti
on
s w
ill b
eco
me
incr
easi
ng
ly m
ater
ial.
Key
inp
uts
an
d
assu
mp
tio
ns
use
d in
th
ese
calc
ula
tio
ns
on
init
ial r
eco
gn
itio
n in
clu
de:
Dis
cou
nt
rate
On
init
ial r
eco
gn
itio
n, t
he
dis
cou
nt
rate
bet
wee
n 1
0.3
6%
to
10
.77%
(30
Ju
ne
20
12: 1
0.7
7% t
o 1
0.8
7%) f
or
the
CFH
eq
uit
y se
curi
ties
an
d
6.3
7% t
o 6
.95
% (3
0 J
un
e 2
012
: 6.6
5%
to
6.9
0%
) fo
r th
e C
FH d
ebt
secu
riti
es a
pp
lied
to
th
e ex
pec
ted
cas
h f
low
s is
bas
ed o
n lo
ng
dat
ed
NZ
sw
ap c
urv
es. T
he
swap
rat
es w
ere
adju
sted
fo
r C
ho
rus
spec
ific
cred
it s
pre
ads
(bas
ed o
n m
arke
t o
bse
rved
cre
dit
sp
read
s fo
r d
ebt
issu
ed w
ith
sim
ilar
cred
it r
atin
gs
and
ten
ure
). T
he
dis
cou
nt
rate
on
the
CFH
eq
uit
y se
curi
ties
is c
app
ed a
t C
ho
rus’
est
imat
ed c
ost
of
(ord
inar
y) e
qu
ity.
Exp
ecte
d c
ash
flo
ws
Tim
ing
of
pri
nci
pal
rep
aym
ents
an
d d
ivid
end
cas
h f
low
s h
as b
een
bas
ed o
n f
ore
cast
s th
at r
efle
ct e
con
om
ical
ly r
atio
nal
ou
tco
mes
giv
en
the
term
s o
f th
e C
FH d
ebt
and
eq
uit
y se
curi
ties
.
Rep
aym
ent
dat
es h
ave
bee
n b
ased
on
an
est
imat
e th
at t
he
pro
po
rtio
n o
f p
rem
ises
wit
h a
fib
re c
on
nec
tio
n w
ith
in C
ho
rus’
cove
rag
e ar
ea w
ill e
xcee
d 2
0%
at
30
Ju
ne
20
20
.
No
te 4
– C
FH s
ecu
ritie
s co
ntin
ued
At
bal
ance
dat
e C
ho
rus
had
issu
ed in
to
tal 2
,83
8,3
82
war
ran
ts
wh
ich
had
a f
air
valu
e an
d c
arry
ing
val
ue
that
ap
pro
xim
ated
zer
o
(30
Ju
ne
20
12: 2
72,2
07
war
ran
ts is
sued
). T
he
nu
mb
er o
f fib
re
con
nec
tio
ns
mad
e b
y 3
0 J
un
e 2
02
0 im
pac
ts t
he
nu
mb
er o
f w
arra
nts
that
co
uld
be
exer
cise
d. S
ho
uld
fib
re c
on
nec
tio
ns
at 3
0 J
un
e 2
02
0
exce
ed 2
0%
th
en t
he
nu
mb
er o
f w
arra
nts
th
at w
ou
ld b
e ab
le t
o b
e
exer
cise
d is
1,2
04
,971
(30
Ju
ne
20
12: 1
16,7
42
).
At
bal
ance
dat
e th
e co
mp
on
ent
par
ts o
f d
ebt
and
eq
uit
y in
stru
men
ts
incl
ud
ing
no
tio
nal
inte
rest
wer
e
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts2
8
Sen
siti
vity
an
alys
is
Ch
oru
s co
nsi
der
s th
at it
is r
easo
nab
ly p
oss
ible
th
at f
utu
re o
utc
om
es
may
be
diff
eren
t fr
om
th
e as
sum
pti
on
s ap
plie
d a
nd
co
uld
req
uir
e a
mat
eria
l ad
just
men
t to
th
e ca
rryi
ng
am
ou
nt
of
the
com
po
nen
t p
arts
of
the
CFH
sec
uri
ties
. Th
e n
um
ber
of
fibre
co
nn
ecti
on
s as
sum
ed t
o
AS
AT
30
JU
NE
20
13A
CT
UA
LA
LTE
RN
AT
IVE
O
UT
CO
ME
IM
PA
CT
ON
FIN
AN
CIA
L ST
AT
EM
EN
TS
CFH
de
bt
secu
riti
es
Fib
re c
on
ne
cti
on
pro
po
rtio
n ≥
20
%
< 2
0%
I
nc
reas
e C
FH d
eb
t se
cu
riti
es
liab
ility
by
$2
.9 m
illio
n
De
cre
ase
Cro
wn
fu
nd
ing
by
$2
.9 m
illio
n
CFH
eq
uit
y se
curi
tie
s
Fib
re c
on
ne
cti
on
pro
po
rtio
n ≥
20
%
< 2
0%
I
nc
reas
e C
FH e
qu
ity
sec
uri
tie
s lia
bili
ty b
y $
2.3
mill
ion
De
cre
ase
Cro
wn
fu
nd
ing
by
$2
.3 m
illio
n
AS
AT
30
JU
NE
20
12A
CT
UA
LA
LTE
RN
AT
IVE
O
UT
CO
ME
IM
PA
CT
ON
FIN
AN
CIA
L ST
AT
EM
EN
TS
CFH
de
bt
secu
riti
es
Fib
re c
on
ne
cti
on
pro
po
rtio
n≥
20
%<
20
%In
cre
ase
CFH
de
bt
sec
uri
tie
s lia
bili
ty b
y $
26
3,0
00
De
cre
ase
Cro
wn
fu
nd
ing
by
$2
63
,00
0
CFH
eq
uit
y se
curi
tie
s
Fib
re c
on
ne
cti
on
pro
po
rtio
n≥
20
%<
20
%In
cre
ase
CFH
eq
uit
y se
cu
riti
es
liab
ility
by
$2
21,
00
0
De
cre
ase
Cro
wn
fu
nd
ing
by
$2
21,
00
0
hav
e b
een
mad
e b
y 3
0 J
un
e 2
02
0 is
on
e o
f th
e ke
y se
nsi
tivi
ties
imp
licit
in t
he
mea
sure
men
t o
f th
e C
FH s
ecu
riti
es. A
ch
ang
e
in t
his
pro
po
rtio
n w
ou
ld r
esu
lt in
th
e fo
llow
ing
imp
act
on
th
e
finan
cial
sta
tem
ents
:
No
te 5
– C
row
n f
un
din
g
Fun
din
g f
rom
th
e C
row
n is
rec
og
nis
ed a
t fa
ir v
alu
e w
her
e th
ere
is r
easo
nab
le a
ssu
ran
ce t
hat
th
e fu
nd
ing
is r
ecei
vab
le a
nd
Ch
oru
s
com
plie
s w
ith
all
atta
ched
co
nd
itio
ns.
Cro
wn
fu
nd
ing
is t
hen
reco
gn
ised
in e
arn
ing
s as
a r
edu
ctio
n t
o d
epre
ciat
ion
exp
ense
on
a s
yste
mat
ic b
asis
ove
r th
e u
sefu
l life
of
the
asse
t th
e fu
nd
ing
was
use
d t
o c
on
stru
ct. T
he
accu
mu
late
d f
un
din
g h
as b
een
reco
gn
ised
as
follo
ws:
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Ult
ra-F
ast
Bro
adb
and
10
3 1
0
10
3 1
0
Ru
ral B
road
ban
d I
nit
iati
ve 1
07
18
-
-
Oth
er
18
8
-
-
22
8
36
1
03
10
Cu
rre
nt
6
2
2
-
No
n-c
urr
en
t 2
22
34
1
01
10
No
te 4
– C
FH s
ecu
ritie
s co
ntin
ued
Ult
ra-F
ast
Bro
adb
and
Ch
oru
s re
ceiv
es f
un
din
g f
rom
th
e C
row
n t
o f
inan
ce c
on
stru
ctio
n
cost
s as
soci
ated
wit
h t
he
dev
elo
pm
ent
of
the
UFB
net
wo
rk. D
uri
ng
the
year
th
e G
rou
p r
ecei
ved
$10
5 m
illio
n in
fu
nd
ing
fro
m C
FH
(30
Ju
ne
20
12: $
13 m
illio
n) w
hic
h e
qu
ated
to
94
,29
1 (3
0 J
un
e 2
012
:
11,3
88
) pre
mis
es p
asse
d. T
his
$10
5 m
illio
n o
f fu
nd
ing
was
allo
cate
d
as f
ollo
ws:
CFH
deb
t se
curi
ties
$15
mill
ion
, CFH
eq
uit
y se
curi
ties
$8
mill
ion
, Cro
wn
fu
nd
ing
$8
2 m
illio
n. A
fu
rth
er $
15 m
illio
n
GR
OU
P A
ND
PA
RE
NT
20
13 $M
20
12 $M
Acc
um
ula
ted
fu
nd
ing
re
cog
nis
ed
133
1
3
Less
: C
FH s
ec
uri
tie
s e
xclu
din
g n
oti
on
al in
tere
st (2
9)
(3)
Less
: ac
cu
mu
late
d a
mo
rtis
atio
n o
f fu
nd
ing
(1)
-
Ult
ra-F
ast
Bro
adb
and
fu
nd
ing
10
3 1
0
Co
nti
nu
ed r
eco
gn
itio
n o
f th
e fu
ll am
ou
nt
of
the
Cro
wn
fu
nd
ing
is
con
tin
gen
t o
n c
erta
in m
ater
ial p
erfo
rman
ce t
arg
ets
bei
ng
met
by
Ch
oru
s. T
he
mo
st s
ign
ifica
nt
of
thes
e m
ater
ial p
erfo
rman
ce t
arg
ets
rela
te t
o t
he
nu
mb
er o
f p
rem
ises
pas
sed
by
fibre
op
tic
cab
les
by
key
dat
es a
nd
co
mp
lian
ce w
ith
cer
tain
sp
ecifi
cati
on
s u
nd
er
use
r ac
cep
tan
ce t
esti
ng
by
CFH
.
Th
e ch
ang
e in
th
e U
ltra
-Fas
t B
road
ban
d C
row
n f
un
din
g b
alan
ce
is s
um
mar
ised
bel
ow
:
No
te 5
– C
row
n f
un
din
g c
on
tinu
ed
(30
Ju
ne
20
12: n
il) h
as b
een
acc
rued
in r
esp
ect
of
13,5
15 p
rem
ises
pas
sed
in a
reas
wh
ere
use
r ac
cep
tan
ce t
esti
ng
was
co
mp
lete
at
30
Ju
ne
20
13 b
ut
fun
ds
wer
e re
ceiv
ed p
ost
30
Ju
ne
20
13. T
he
$15
mill
ion
of
fun
din
g a
ccru
ed w
as a
lloca
ted
as
CFH
deb
t se
curi
ties
$2
mill
ion
, CFH
eq
uit
y se
curi
ties
$1
mill
ion
an
d C
row
n f
un
din
g
$12
mill
ion
.
Th
e co
mp
on
ent
par
ts o
f th
is f
un
din
g c
an b
e su
mm
aris
ed a
s fo
llow
s:
GR
OU
P A
ND
PA
RE
NT
20
13 $M
20
12 $M
Bal
ance
at
be
gin
nin
g o
f th
e p
eri
od
10
-
Fun
din
g r
ece
ive
d (
exc
lud
ing
CFH
se
cu
riti
es)
82
10
Fun
din
g a
ccru
ed
(e
xclu
din
g C
FH s
ec
uri
tie
s) 1
2 -
Am
ort
isat
ion
(1)
-
Bal
ance
at
en
d o
f th
e p
eri
od
10
3 1
0
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
29
Ru
ral B
road
ban
d In
itia
tive
Ch
oru
s re
ceiv
es C
row
n f
un
din
g f
rom
th
e M
inis
try
of
Bu
sin
ess,
Inn
ova
tio
n a
nd
Em
plo
ymen
t (M
BIE
) fo
r ca
pit
al e
xpen
dit
ure
incu
rred
un
der
th
e R
ura
l Bro
adb
and
Init
iati
ve.
Ch
oru
s is
en
titl
ed t
o c
laim
pay
men
t fo
r th
e g
ran
tab
le c
ost
s
attr
ibu
tab
le t
o t
he
rele
van
t m
ilest
on
es f
or
dep
loyi
ng
th
e ru
ral l
ink
or
rura
l cab
inet
s. T
he
MB
IE w
ill p
ay C
ho
rus
on
e d
olla
r o
f fu
nd
ing
fo
r
each
do
llar
of
gra
nta
ble
co
sts
incu
rred
by
Ch
oru
s u
p t
o a
max
imu
m
fun
din
g li
mit
of
aro
un
d $
23
6 m
illio
n. I
n a
dd
itio
n t
he
MB
IE r
eim
bu
rses
Ch
oru
s fo
r al
l cap
ital
exp
end
itu
re a
ttri
bu
tab
le t
o s
cho
ol l
ead
-in
s.
Du
rin
g t
he
year
Ch
oru
s re
cog
nis
ed $
90
mill
ion
in f
un
din
g f
rom
the
MB
IE (3
0 J
un
e 2
012
: $18
mill
ion
). T
he
com
po
nen
t p
arts
of
this
fun
din
g c
an b
e su
mm
aris
ed a
s fo
llow
s:
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Acc
um
ula
ted
fu
nd
ing
re
cog
nis
ed
10
8
18
-
-
Less
: ac
cu
mu
late
d a
mo
rtis
atio
n o
f fu
nd
ing
(1)
-
-
-
Ru
ral B
road
ban
d I
nit
iati
ve f
un
din
g 1
07
18
-
-
Th
e ch
ang
e in
th
e R
ura
l Bro
adb
and
Init
iati
ve f
un
din
g b
alan
ce is
su
mm
aris
ed b
elo
w:
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Bal
ance
at
the
be
gin
nin
g o
f p
eri
od
18
-
-
-
Fun
din
g r
eco
gn
ise
d 9
0
18
-
-
Am
ort
isat
ion
(1)
-
-
-
Bal
ance
at
en
d o
f th
e p
eri
od
10
7 1
8
-
-
Oth
er
Ch
oru
s re
ceiv
es f
un
din
g t
ow
ard
s th
e co
st o
f re
loca
tio
n o
f te
leco
mm
un
icat
ion
s eq
uip
men
t, s
cho
ol l
ead
-in
s an
d e
xten
din
g t
he
net
wo
rk
cove
rag
e to
ru
ral a
reas
. Th
e co
mp
on
ent
par
ts o
f th
is f
un
din
g c
an b
e su
mm
aris
ed a
s fo
llow
s:
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Acc
um
ula
ted
fu
nd
ing
re
cog
nis
ed
21
9
-
-
Less
: ac
cu
mu
late
d a
mo
rtis
atio
n o
f fu
nd
ing
(3)
(1)
-
-
Oth
er
fun
din
g 1
8
8
-
-
Th
e ch
ang
e in
th
e o
ther
fu
nd
ing
is s
um
mar
ised
bel
ow
:
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Bal
ance
at
the
be
gin
nin
g o
f p
eri
od
8
-
-
-
Fun
din
g r
eco
gn
ise
d 1
2 9
-
-
Am
ort
isat
ion
(2)
(1)
-
-
Bal
ance
at
en
d o
f th
e p
eri
od
18
8
-
-
No
te 7
– O
per
atin
g r
even
ue
No
te 6
– S
egm
enta
l rep
ort
ing
An
op
erat
ing
seg
men
t is
a c
om
po
nen
t o
f an
en
tity
th
at e
ng
ages
in b
usi
nes
s ac
tivi
ties
fro
m w
hic
h it
may
ear
n r
even
ues
an
d in
cur
exp
ense
s an
d f
or
wh
ich
op
erat
ing
res
ult
s ar
e re
gu
larl
y re
view
ed
by
the
enti
ty’s
ch
ief
op
erat
ing
dec
isio
n m
aker
an
d f
or
wh
ich
dis
cret
e
finan
cial
info
rmat
ion
is a
vaila
ble
.
Ch
oru
s’ C
hie
f E
xecu
tive
Off
icer
has
bee
n id
enti
fied
as
the
chie
f
op
erat
ing
dec
isio
n m
aker
fo
r th
e p
urp
ose
of
seg
men
tal r
epo
rtin
g.
Ch
oru
s h
as d
eter
min
ed t
hat
it o
per
ates
in o
ne
seg
men
t
pro
vid
ing
nat
ion
wid
e fix
ed li
ne
acce
ss n
etw
ork
infr
astr
uct
ure
.
Th
e d
eter
min
atio
n is
bas
ed o
n t
he
rep
ort
s re
view
ed b
y th
e C
hie
f
Exe
cuti
ve O
ffic
er in
ass
essi
ng
per
form
ance
, allo
cati
ng
res
ou
rces
and
mak
ing
str
ateg
ic d
ecis
ion
s.
All
of
Ch
oru
s’ o
per
atio
ns
are
pro
vid
ed in
New
Zea
lan
d, t
her
efo
re
no
geo
gra
ph
ic in
form
atio
n is
pro
vid
ed.
Two
Ch
oru
s cu
sto
mer
s m
et t
he
rep
ort
ing
th
resh
old
of
10 p
erce
nt
of
Ch
oru
s’ o
per
atin
g r
even
ue
in t
he
year
to
30
Ju
ne
20
13. T
he
tota
l
reve
nu
e fo
r th
e ye
ar e
nd
ing
30
Ju
ne
20
13 f
rom
on
e cu
sto
mer
was
$8
15 m
illio
n a
nd
fro
m t
he
oth
er c
ust
om
er w
as $
101
mill
ion
. In
th
e
seve
n m
on
ths
end
ed 3
0 J
un
e 2
012
on
e cu
sto
mer
met
th
e re
po
rtin
g
thre
sho
ld a
nd
acc
ou
nte
d f
or
$5
23
mill
ion
of
reve
nu
e.
Rev
enu
e is
rec
og
nis
ed t
o t
he
exte
nt
that
it is
pro
bab
le t
hat
th
e
eco
no
mic
ben
efit
s w
ill f
low
to
Ch
oru
s an
d t
he
reve
nu
e ca
n b
e
relia
bly
mea
sure
d, r
egar
dle
ss o
f w
hen
th
e p
aym
ent
is b
ein
g m
ade.
Rev
enu
e is
mea
sure
d a
t th
e fa
ir v
alu
e o
f th
e co
nsi
der
atio
n r
ecei
ved
or
rece
ivab
le.
Ch
oru
s re
cog
nis
es r
even
ue
as it
pro
vid
es s
ervi
ces
to it
s cu
sto
mer
s.
Bill
ing
s ar
e g
ener
ally
mad
e o
n a
mo
nth
ly b
asis
. Un
bill
ed r
even
ues
fro
m t
he
bill
ing
cyc
le d
ate
to t
he
end
of
each
mo
nth
are
rec
og
nis
ed
as r
even
ue
du
rin
g t
he
mo
nth
th
e se
rvic
e is
pro
vid
ed. R
even
ue
is
def
erre
d in
res
pec
t o
f th
e p
ort
ion
of
fixed
mo
nth
ly c
har
ges
th
at h
ave
bee
n b
illed
in a
dva
nce
. Rev
enu
e fr
om
inst
alla
tio
ns
and
co
nn
ecti
on
s
are
reco
gn
ised
up
on
co
mp
leti
on
of
the
inst
alla
tio
n o
r co
nn
ecti
on
.
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Bas
ic c
op
pe
r 6
31
39
9
-
-
En
han
ced
co
pp
er
215
8
9
-
-
Fib
re 6
0
28
-
-
Val
ue
ad
de
d n
etw
ork
se
rvic
es
37
18
-
-
Infr
astr
uc
ture
17
14
-
-
Fie
ld s
erv
ice
s 8
5 4
7 -
-
Oth
er
12
18
-
-
Inte
rco
mp
any
div
ide
nd
inco
me
-
-
86
-
Tota
l op
era
tin
g r
eve
nu
e 1
,057
6
13
86
-
No
te 5
– C
row
n f
un
din
g c
on
tinu
ed
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts3
0
No
te 8
– O
per
atin
g e
xpen
ses
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13
$M
20
12 $M
Lab
ou
r co
sts
(67)
(31)
-
-
Pro
visi
on
ing
(51)
(23)
-
-
Ne
two
rk m
ain
ten
ance
(10
0)
(52)
-
-
Oth
er
ne
two
rk c
ost
s (3
7) (2
2) -
-
Info
rmat
ion
te
ch
no
log
y co
sts
(52)
(30
) -
-
Re
nt
and
rat
es
(12)
(6)
-
-
Pro
pe
rty
mai
nte
nan
ce (1
2) (8
) -
-
Ele
ctr
icit
y (1
3) (1
1) -
-
Insu
ran
ce (4
) (3
) -
-
Co
nsu
ltan
ts (6
) (5
) -
(1
)
Oth
er
(40
) (2
3) (1
) -
Tota
l op
era
tin
g e
xpe
nse
s (3
94
) (2
14)
(1)
(1)
Lab
ou
r co
sts
Lab
ou
r co
sts
of
$6
7 m
illio
n (3
0 J
un
e 2
012
: $3
1 m
illio
n) r
epre
sen
ts
staf
f co
sts
rela
ted
to
no
n-c
apit
al e
xpen
dit
ure
.
Pen
sio
n c
on
trib
uti
on
s
Incl
ud
ed in
lab
ou
r co
sts
are
pay
men
ts t
o t
he
New
Zea
lan
d
Go
vern
men
t Su
per
ann
uat
ion
Fu
nd
of
$3
33,
00
0 (3
0 J
un
e 2
012
:
$14
9,0
00
) an
d c
on
trib
uti
on
s to
Kiw
iSav
er o
f $
1,11
2,0
00
(30
Ju
ne
20
12: $
34
6,0
00
). A
t 3
0 J
un
e 2
013
th
ere
wer
e
27
emp
loye
es in
New
Zea
lan
d G
ove
rnm
ent
Sup
eran
nu
atio
n F
un
d
(30
Ju
ne
20
12: 2
8 e
mp
loye
es) a
nd
54
5 e
mp
loye
es in
Kiw
isav
er
(30
Ju
ne
20
12: 3
35
em
plo
yees
). C
ho
rus
has
no
oth
er o
blig
atio
ns
to p
rovi
de
pen
sio
n b
enef
its
in r
esp
ect
of
emp
loye
es.
Ch
arit
able
an
d p
olit
ical
do
nat
ion
s
Oth
er c
ost
s in
clu
de
char
itab
le d
on
atio
ns
of
$5
0,0
00
(30
Ju
ne
20
12:
nil)
. Ch
oru
s h
as n
ot
mad
e an
y p
olit
ical
do
nat
ion
s (3
0 J
un
e 2
012
: nil)
.
Op
erat
ing
leas
es
Ren
t an
d r
ates
co
sts
incl
ud
e le
asin
g a
nd
ren
tal e
xpen
dit
ure
of
$5
mill
ion
fo
r p
rop
erty
, net
wo
rk in
fras
tru
ctu
re a
nd
item
s
of
equ
ipm
ent
(30
Ju
ne
20
12: $
3 m
illio
n).
Au
dit
or
rem
un
erat
ion
Incl
ud
ed in
oth
er e
xpen
ses
are
fees
pai
d t
o a
ud
ito
rs o
f $
43
0,0
00
for
the
aud
it a
nd
rev
iew
of
the
stat
uto
ry a
cco
un
ts (3
0 J
un
e 2
012
:
$5
50
,00
0),
$15
0,0
00
fo
r re
gu
lato
ry a
ssu
ran
ce s
ervi
ces
and
$5
8,0
00
in r
esp
ect
of
tech
nic
al a
cco
un
tin
g g
uid
ance
, oth
er a
ssu
ran
ce a
nd
tax
com
plia
nce
ser
vice
s.
No
te 9
– F
inan
ce e
xpen
se
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Inte
rest
on
syn
dic
ate
d b
ank
fac
ility
(58
) (3
2) (5
8)
(32)
Inte
rest
on
EM
TN
(46
) (2
7) (4
6)
(27)
Oth
er
inte
rest
exp
en
se (1
6)
(16
) -
(
7)
Cap
ital
ise
d in
tere
st 6
3
-
-
Tota
l fin
ance
exp
en
se e
xclu
din
g C
FH s
ecu
riti
es
(114
) (7
2) (1
04
) (6
6)
CFH
se
cu
riti
es
(no
tio
nal
inte
rest
) (1
) -
(1
) -
Tota
l fin
ance
exp
en
se (1
15)
(72)
(10
5) (6
6)
No
te 1
0 –
Tra
de
and
oth
er r
ecei
vab
les
Trad
e an
d o
ther
rec
eiva
ble
s ar
e in
itia
lly r
eco
gn
ised
at
the
fair
valu
e o
f th
e am
ou
nts
to
be
rece
ived
, plu
s tr
ansa
ctio
n c
ost
s (if
an
y).
Th
ey a
re s
ub
seq
uen
tly
mea
sure
d a
t am
ort
ised
co
st (u
sin
g t
he
effe
ctiv
e in
tere
st m
eth
od
) les
s im
pai
rmen
t lo
sses
.
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Trad
e r
ece
ivab
les
229
1
35
-
-
Oth
er
rece
ivab
les
51
62
32
18
Inte
rco
mp
any
rece
ivab
les
-
-
211
2
2
28
0
19
7 2
43
40
Pre
pay
me
nts
14
1
-
-
Trad
e an
d o
the
r re
ceiv
able
s 2
94
1
98
2
43
40
Trad
e re
ceiv
able
s ar
e n
on
-in
tere
st b
eari
ng
an
d a
re g
ener
ally
on
ter
ms
20
wo
rkin
g d
ays
or
less
.
Ch
oru
s m
ain
tain
s a
pro
visi
on
fo
r im
pai
rmen
t lo
sses
wh
en t
her
e is
ob
ject
ive
evid
ence
of
its
cust
om
ers
bei
ng
un
able
to
mak
e re
qu
ired
pay
men
ts. C
ho
rus
has
min
imal
pro
visi
on
fo
r d
ou
btf
ul d
ebt
in t
he
curr
ent
per
iod
an
d t
her
e h
ave
bee
n n
o s
ign
ifica
nt
ind
ivid
ual
imp
airm
ent
amo
un
ts r
eco
gn
ised
as
an e
xpen
se. T
rad
e re
ceiv
able
s
are
net
of
allo
wan
ces
for
dis
pu
ted
bal
ance
s w
ith
cu
sto
mer
s.
Oth
er in
tere
st e
xpen
se in
clu
des
$13
mill
ion
fin
ance
leas
e
inte
rest
exp
ense
s (3
0 J
un
e 2
012
: $9
mill
ion
). T
he
per
iod
en
ded
30
Ju
ne
20
12 in
clu
ded
a $
7 m
illio
n n
on
-cas
h c
har
ge
for
mar
k
to m
arke
t o
f d
eriv
ativ
es.
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
31
Th
e ag
ein
g p
rofil
e o
f tr
ade
rece
ivab
les
as a
t 3
0 J
un
e 2
013
is a
s fo
llow
s:
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
No
t p
ast
du
e 2
08
1
24
-
-
Pas
t d
ue
1-3
0 d
ays
13
10
-
-
Pas
t d
ue
31-
60
day
s 3
1
-
-
Pas
t d
ue
61-
90
day
s 1
-
-
-
Pas
t d
ue
ove
r 9
0 d
ays
4
-
-
-
22
9
135
-
-
No
te 1
0 –
Tra
de
and
oth
er r
ecei
vab
les
con
tinu
ed
Ch
oru
s h
as a
co
nce
ntr
ated
cu
sto
mer
bas
e co
nsi
stin
g p
red
om
inan
tly
of
a sm
all n
um
ber
of
reta
il se
rvic
e p
rovi
der
s. T
he
con
cen
trat
ion
of
Ch
oru
s’ c
ust
om
er b
ase
hei
gh
ten
s th
e ri
sk t
hat
a d
isp
ute
wit
h
a cu
sto
mer
, or
a cu
sto
mer
’s f
ailu
re t
o p
ay f
or
serv
ices
, will
hav
e
a m
ater
ial a
dve
rse
effe
ct o
n C
ho
rus’
co
llect
abili
ty o
f re
ceiv
able
s.
An
y d
isp
ute
s ar
isin
g t
hat
may
aff
ect
the
rela
tio
nsh
ip b
etw
een
the
par
ties
will
be
rais
ed b
y re
lati
on
ship
man
ager
s an
d f
ollo
w
the
Ch
oru
s d
isp
ute
res
olu
tio
n p
roce
ss. C
ho
rus
has
$2
1 m
illio
n
of
acco
un
ts r
ecei
vab
le t
hat
are
pas
t d
ue
bu
t n
ot
imp
aire
d
(30
Ju
ne
20
12: $
11 m
illio
n).
Th
e ca
rryi
ng
val
ue
of
trad
e an
d o
ther
rece
ivab
les
app
roxi
mat
e th
e fa
ir v
alu
e. T
he
max
imu
m c
red
it e
xpo
sure
is li
mit
ed t
o t
he
carr
yin
g v
alu
e o
f tr
ade
and
oth
er r
ecei
vab
les.
No
te 1
1 –
Tra
de
and
oth
er p
ayab
les
Trad
e an
d o
ther
pay
able
s ar
e in
itia
lly r
eco
gn
ised
at
fair
val
ue
less
tran
sact
ion
co
sts
(if a
ny)
. Th
ey a
re s
ub
seq
uen
tly
mea
sure
d a
t
amo
rtis
ed c
ost
usi
ng
th
e ef
fect
ive
inte
rest
met
ho
d.
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Trad
e p
ayab
les
12
1 1
47
-
-
Join
t ar
ran
ge
me
nts
11
21
-
-
Acc
rual
s 1
54
1
25
33
31
Pe
rso
nn
el a
ccru
al 1
7 1
4
-
-
Re
ven
ue
bill
ed
in a
dva
nce
27
30
-
-
Trad
e an
d o
the
r p
ayab
les
330
3
37
33
31
Cu
rre
nt
32
8
32
8
33
31
No
n-c
urr
en
t 2
9
-
-
Trad
e an
d o
ther
pay
able
s ar
e n
on
-in
tere
st b
eari
ng
an
d n
orm
ally
sett
led
wit
hin
30
day
ter
ms.
Th
e ca
rryi
ng
val
ue
of
trad
e an
d o
ther
pay
able
s ap
pro
xim
ate
thei
r fa
ir v
alu
es.
Join
t ar
ran
gem
ents
Cer
tain
net
wo
rk e
lect
ron
ic a
sset
s an
d s
har
ed s
yste
ms
ow
ned
by
Tele
com
are
req
uir
ed f
or
con
tin
ued
use
by
Ch
oru
s p
ost
dem
erg
er.
Th
e ri
gh
t to
use
th
ese
asse
ts h
ave
bee
n g
ran
ted
by
Tele
com
un
der
join
t ar
ran
gem
ents
ove
r th
e lif
e o
f th
e as
sets
.
No
te 1
2 –
Co
mm
itm
ents
Networkin
frastructureprojectagreem
ent
Ch
oru
s is
co
mm
itte
d t
o d
eplo
yin
g in
fras
tru
ctu
re f
or
pre
mis
es
in t
he
UFB
can
did
ate
area
s aw
ard
ed t
o C
ho
rus,
to
be
bu
ilt a
cco
rdin
g
to a
nn
ual
bu
ild m
ilest
on
es a
nd
to
be
com
ple
te b
y n
o la
ter
than
31
Dec
emb
er 2
019
. In
to
tal i
t is
exp
ecte
d t
hat
th
e co
mm
un
al
infr
astr
uct
ure
will
pas
s an
est
imat
ed 8
30
,90
0 p
rem
ises
. Ch
oru
s h
as
esti
mat
ed t
hat
it w
ill c
ost
$1.
7 -
$1.
9 b
illio
n t
o b
uild
th
e co
mm
un
al
UFB
net
wo
rk b
y th
e en
d o
f 2
019
.
Ru
ral B
road
ban
d In
itia
tive
As
par
t o
f th
e R
ura
l Bro
adb
and
Init
iati
ve P
has
e 1,
Ch
oru
s is
com
mit
ted
to
dep
loyi
ng
ap
pro
xim
atel
y 3,
100
kilo
met
res
of
fibre
to c
on
nec
t ap
pro
xim
atel
y 8
50
sch
oo
ls a
nd
en
able
ap
pro
xim
atel
y
57%
of
rura
l use
rs t
o a
cces
s b
road
ban
d s
pee
ds
of
at le
ast
5M
bp
s.
In a
dd
itio
n, u
nd
er p
has
e 2
of
the
Ru
ral B
road
ban
d In
itia
tive
, Ch
oru
s
will
be
dep
loyi
ng
a f
urt
her
25
0 k
ilom
etre
s o
f fib
re t
o c
on
nec
t
189
pro
vin
cial
sch
oo
ls, u
p t
o 1
81
rura
l pu
blic
lib
rari
es a
nd
45
ru
ral h
osp
ital
s an
d f
amily
hea
lth
cen
tres
.
Th
e es
tim
ated
co
st o
f th
e b
uild
is in
th
e ra
ng
e
of
$2
80
– $
29
5 m
illio
n.
Cap
ital
exp
end
itu
re
Ref
er t
o n
ote
1 a
nd
no
te 2
fo
r d
etai
ls o
f ca
pit
al e
xpen
dit
ure
com
mit
men
ts.
Leas
e co
mm
itm
ents
Ch
oru
s h
as b
uild
ing
, car
par
ks a
nd
sit
e lic
ense
s u
nd
er o
per
atin
g
leas
e ar
ran
gem
ents
. Th
e fu
ture
no
n c
ance
llab
le m
inim
um
op
erat
ing
leas
e co
mm
itm
ent
as a
t 3
0 J
un
e 2
013
fo
r th
e G
rou
p w
as $
26
mill
ion
(30
Ju
ne
20
12: $
19 m
illio
n).
No
te 1
3 –
Tax
atio
n
Cu
rren
t an
d d
efer
red
tax
is c
alcu
late
d o
n t
he
bas
is o
f th
e la
ws
enac
ted
or
sub
stan
tive
ly e
nac
ted
at
bal
ance
dat
e.
Def
erre
d t
axat
ion
is r
eco
gn
ised
in r
esp
ect
of
tem
po
rary
diff
eren
ces
bet
wee
n t
he
tax
bas
es o
f as
sets
an
d li
abili
ties
an
d t
hei
r ca
rryi
ng
amo
un
ts in
th
e fin
anci
al s
tate
men
ts. F
utu
re t
ax b
enef
its
are
reco
gn
ised
wh
ere
real
isat
ion
of
the
asse
t is
pro
bab
le.
Cu
rren
t an
d d
efer
red
tax
are
rec
og
nis
ed in
th
e in
com
e st
atem
ent,
exce
pt
wh
en t
he
tax
rela
tes
to it
ems
char
ged
or
cred
ited
to
oth
er
com
pre
hen
sive
inco
me,
in w
hic
h c
ase
the
tax
is a
lso
rec
og
nis
ed
in o
ther
co
mp
reh
ensi
ve in
com
e.
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts3
2
Inco
me
tax
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Inco
me
stat
em
en
t
Cu
rre
nt
inco
me
tax
Cu
rre
nt
pe
rio
d in
com
e t
ax (
exp
en
se)/
cre
dit
(62)
(34
) -
1
Ad
just
me
nts
in r
esp
ec
t o
f p
rio
r p
eri
od
s 6
-
-
-
De
ferr
ed
inco
me
tax
Ne
two
rk a
sse
ts, s
oft
war
e a
nd
oth
er
inta
ng
ible
s 2
(1
3) -
-
Em
plo
yee
en
titl
em
en
ts -
2
-
-
Oth
er
(6)
5
-
-
Ad
just
me
nts
in r
esp
ec
t o
f p
rio
r p
eri
od
s (5
) -
-
-
Inco
me
tax
(exp
en
se)/
cre
dit
re
cog
nis
ed
in in
com
e st
ate
me
nt
(65)
(40
) -
1
Oth
er
com
pre
he
nsi
ve in
com
e
Cu
rre
nt
inco
me
tax
Cu
rre
nt
pe
rio
d in
com
e t
ax e
xpe
nse
-
-
-
-
De
ferr
ed
inco
me
tax
Ch
ang
es
in f
air
valu
e o
f c
ash
flo
w h
ed
ge
s (4
) 4
(4
) 4
Inco
me
tax
(exp
en
se)/
cre
dit
re
cog
nis
ed
in o
the
r
com
pre
he
nsi
ve in
com
e (4
) 4
(4
) 4
No
te 1
3 –
Tax
atio
n c
on
tinu
ed
Th
e ta
xati
on
exp
ense
ch
arg
ed t
o e
arn
ing
s in
clu
des
bo
th c
urr
ent
and
def
erre
d t
ax a
nd
is c
alcu
late
d a
fter
allo
win
g f
or
adju
stm
ents
.
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Re
con
cili
atio
n o
f e
ffe
cti
ve t
ax r
ate
Ne
t e
arn
ing
s/(l
oss
) fo
r th
e p
eri
od
171
1
02
87
(4)
Ad
d:
Inco
me
tax
(e
xpe
nse
)/c
red
it (6
5) (4
0)
-
1
Ne
t e
arn
ing
s/(l
oss
) be
fore
inco
me
tax
236
1
42
87
(5)
Inco
me
tax
at
28
% (6
6)
(40
) (2
4)
1
Ad
just
me
nt
to t
axat
ion
No
n t
axab
le in
terc
om
pan
y d
ivid
en
ds
-
-
24
-
Ad
just
me
nts
in r
esp
ec
t o
f p
rio
r p
eri
od
s 1
-
-
-
(65)
(40
)-
1
For
the
year
en
ded
30
Ju
ne
20
13 t
he
effe
ctiv
e ta
x ra
te o
f
28
% e
qu
ates
to
th
e st
atu
tory
rat
e o
f 2
8%
(30
Ju
ne
20
12: 2
8%
).
No
te 1
3 –
Tax
atio
n c
on
tinu
ed
Mo
vem
ent
in d
efer
red
tax
bal
ance
du
rin
g t
he
per
iod
GR
OU
P
BA
LA
NC
E
1 JU
LY 2
012 $M
RE
CO
GN
ISE
D
IN P
RO
FIT
A
ND
LO
SS $M
RE
CO
GN
ISE
D
IN O
TH
ER
C
OM
PR
EH
EN
SIV
E
INC
OM
E$
M
BA
LA
NC
E
30
JU
NE
20
13 $M
(Ass
ets
)/li
abil
itie
s
Fair
val
ue
po
rtio
n o
f d
eri
vati
ves
16
-
-
1
6
Ne
two
rk a
sse
ts, s
oft
war
e a
nd
oth
er
inta
ng
ible
s 2
14
3
-
217
Em
plo
yee
en
titl
em
en
ts (4
) 3
-
(1
)
Fin
ance
leas
es
(35)
-
-
(35)
Oth
er
(10
) 3
-
(7
)
Ch
ang
es
in f
air
valu
e o
f c
ash
flo
w h
ed
ge
s (4
) -
4
-
Tota
l 1
77
9
4
19
0
GR
OU
P
BA
LA
NC
E
1 D
EC
EM
BE
R 2
011 $M
RE
CO
GN
ISE
D
IN P
RO
FIT
A
ND
LO
SS $M
RE
CO
GN
ISE
D
IN O
TH
ER
C
OM
PR
EH
EN
SIV
E
INC
OM
E$
M
BA
LA
NC
E
30
JU
NE
20
12 $M
(Ass
ets
)/li
abil
itie
s
Fair
val
ue
po
rtio
n o
f d
eri
vati
ves
16
-
-
1
6
Ne
two
rk a
sse
ts, s
oft
war
e a
nd
oth
er
inta
ng
ible
s 2
01
13
-
214
Em
plo
yee
en
titl
em
en
ts (2
) (2
) -
(4
)
Fin
ance
leas
es
(35)
-
-
(35)
Oth
er
(5)
(5)
-
(10
)
Ch
ang
es
in f
air
valu
e o
f c
ash
flo
w h
ed
ge
s -
-
(4
) (4
)
Tota
l 1
75
6
(4)
177
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
33
No
te 1
3 –
Tax
atio
n c
on
tinu
ed
PA
RE
NT
BA
LA
NC
E
1 JU
LY 2
012 $M
RE
CO
GN
ISE
D
IN P
RO
FIT
A
ND
LO
SS $M
RE
CO
GN
ISE
D
IN O
TH
ER
C
OM
PR
EH
EN
SIV
E
INC
OM
E$
M
BA
LA
NC
E
30
JU
NE
20
13 $M
(Ass
ets
)/li
abil
itie
s
Fair
val
ue
po
rtio
n o
f d
eri
vati
ves
16
-
-
1
6
Ch
ang
es
in f
air
valu
e o
f c
ash
flo
w h
ed
ge
s (4
) -
4
-
Tota
l 1
2 -
4
1
6
PA
RE
NT
BA
LA
NC
E
1 D
EC
EM
BE
R 2
011 $M
RE
CO
GN
ISE
D
IN P
RO
FIT
A
ND
LO
SS $M
RE
CO
GN
ISE
D
IN O
TH
ER
C
OM
PR
EH
EN
SIV
E
INC
OM
E$
M
BA
LA
NC
E
30
JU
NE
20
12 $M
(Ass
ets
)/li
abil
itie
s
Fair
val
ue
po
rtio
n o
f d
eri
vati
ves
16
-
-
1
6
Ch
ang
es
in f
air
valu
e o
f c
ash
flo
w h
ed
ge
s -
-
(4
) (4
)
Tota
l 1
6
-
(4)
12
Imp
uta
tio
n c
red
its
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Imp
uta
tio
n c
red
its
avai
lab
le f
or
sub
seq
ue
nt
rep
ort
ing
pe
rio
ds
63
33
5
-
Th
e im
pu
tati
on
cre
dit
am
ou
nt
rep
rese
nts
th
e b
alan
ce o
f th
e
imp
uta
tio
n c
red
it a
cco
un
t as
at
the
end
of
the
rep
ort
ing
per
iod
,
adju
ste
d f
or
imp
uta
tio
n c
red
its
that
will
ari
se f
rom
th
e p
aym
en
t
of
the
pro
visi
on
for
inco
me
tax.
Imp
uta
tion
cre
dits
are
ava
ilab
le fo
r
use
su
bje
ct t
o t
he
req
uir
emen
ts o
f th
e In
com
e Ta
x A
ct 2
00
7 b
ein
g
sati
sfie
d. F
or
the
pu
rpo
ses
of
the
Inco
me
Tax
Act
20
07
Tele
com
dem
erg
er t
ran
sact
ion
s d
o n
ot
giv
e ri
se t
o, a
nd
are
ign
ore
d f
or
the
pu
rpo
ses
of
calc
ula
tin
g a
vaila
ble
su
bsc
rib
ed c
apit
al o
f C
ho
rus.
No
te 1
4 –
Cas
h a
nd
cal
l dep
osi
ts
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Cas
h a
nd
cal
l de
po
sits
80
1
40
6
9
61
Cas
h a
nd
cal
l dep
osi
ts a
re h
eld
wit
h b
ank
and
fin
anci
al in
stit
uti
on
s
cou
nte
rpar
ties
rat
ed a
t a
min
imu
m o
f A
+, b
ased
on
rat
ing
ag
ency
Stan
dar
d &
Po
or’s
rat
ing
s. In
tere
st e
arn
ed o
n c
all d
epo
sits
is b
ased
on
th
e d
aily
dep
osi
t ra
te.
Th
ere
are
no
cas
h o
r ca
ll d
epo
sit
bal
ance
s h
eld
by
Ch
oru
s th
at
are
no
t av
aila
ble
fo
r u
se.
Th
e ca
rryi
ng
val
ues
of
cash
ap
pro
xim
ate
thei
r fa
ir v
alu
es.
Th
e m
axim
um
cre
dit
exp
osu
re is
lim
ited
to
th
e ca
rryi
ng
val
ue
of
cash
an
d c
all d
epo
sits
.
Cas
h d
eno
min
ated
in f
ore
ign
cu
rren
cies
are
ret
ran
slat
ed in
to
New
Zea
lan
d d
olla
rs a
t th
e sp
ot
rate
of
exch
ang
e at
th
e re
po
rtin
g
dat
e. A
ll d
iffer
ence
s ar
isin
g o
n s
ettl
emen
t o
r tr
ansl
atio
n o
f m
on
etar
y
item
s ar
e ta
ken
to
th
e in
com
e st
atem
ent.
Cas
h fl
ow
Cas
h f
low
s fr
om
der
ivat
ives
in c
ash
flo
w a
nd
fai
r va
lue
hed
ge
rela
tio
nsh
ips
are
reco
gn
ised
in t
he
cash
flo
w s
tate
men
t in
th
e sa
me
cate
go
ry a
s th
e h
edg
ed it
em.
For
the
pu
rpo
ses
of
the
stat
emen
t o
f ca
sh f
low
s, c
ash
is c
on
sid
ered
to b
e ca
sh o
n h
and
, in
ban
ks a
nd
cas
h e
qu
ival
ents
, in
clu
din
g b
ank
ove
rdra
fts
and
hig
hly
liq
uid
inve
stm
ents
th
at a
re r
ead
ily c
on
vert
ible
to k
no
wn
am
ou
nts
of
cash
wh
ich
are
su
bje
ct t
o a
n in
sig
nifi
can
t ri
sk
of
chan
ges
in v
alu
es.
No
te 1
5 –
Lea
ses
Ch
oru
s is
a le
ssee
of
cert
ain
net
wo
rk a
sset
s u
nd
er b
oth
op
erat
ing
and
fin
ance
leas
e ar
ran
gem
ents
. Lea
se c
ost
s re
lati
ng
to
op
erat
ing
leas
es a
re r
eco
gn
ised
on
a s
trai
gh
t-lin
e b
asis
ove
r th
e lif
e o
f th
e
leas
e. F
inan
ce le
ases
, wh
ich
eff
ecti
vely
tra
nsf
er t
o C
ho
rus
sub
stan
tial
ly a
ll th
e ri
sks
and
ben
efit
s o
f o
wn
ersh
ip o
f th
e le
ased
asse
ts, a
re c
apit
alis
ed a
t th
e lo
wer
of
the
leas
ed a
sset
’s f
air
valu
e
or
the
pre
sen
t va
lue
of
the
min
imu
m le
ase
pay
men
ts a
t in
cep
tio
n
of
the
leas
e. T
he
leas
ed a
sset
s an
d c
orr
esp
on
din
g li
abili
ties
are
reco
gn
ised
, an
d t
he
leas
ed a
sset
s ar
e d
epre
ciat
ed o
ver
thei
r
esti
mat
ed u
sefu
l liv
es.
Det
erm
inin
g w
het
her
a le
ase
agre
emen
t is
a f
inan
ce le
ase
or
an
op
erat
ing
leas
e re
qu
ires
jud
gem
ent
as t
o w
het
her
th
e ag
reem
ent
tran
sfer
s su
bst
anti
ally
all
the
risk
s an
d r
ewar
ds
of
ow
ner
ship
to
Ch
oru
s. J
ud
gem
ent
is r
equ
ired
on
var
iou
s as
pec
ts t
hat
incl
ud
e, b
ut
are
no
t lim
ited
to
, th
e fa
ir v
alu
e o
f th
e le
ased
ass
et, t
he
eco
no
mic
life
of
the
leas
ed a
sset
, wh
eth
er o
r n
ot
to in
clu
de
ren
ewal
op
tio
ns
in t
he
leas
e te
rm, a
nd
det
erm
inin
g a
n a
pp
rop
riat
e d
isco
un
t ra
te t
o c
alcu
late
the
pre
sen
t va
lue
of
the
min
imu
m le
ase
pay
men
ts.
Cla
ssifi
cati
on
as
a fin
ance
leas
e m
ean
s th
e as
set
is r
eco
gn
ised
in t
he
stat
emen
t o
f fin
anci
al p
osi
tio
n a
s n
etw
ork
ass
ets
wh
erea
s
for
an o
per
atin
g le
ase
no
su
ch a
sset
is r
eco
gn
ised
.
Ch
oru
s h
as e
xerc
ised
its
jud
gem
ent
on
th
e ap
pro
pri
ate
clas
sific
atio
n
of
net
wo
rk a
sset
leas
es, a
nd
has
det
erm
ined
a n
um
ber
of
leas
e
arra
ng
emen
ts a
re f
inan
ce le
ases
.
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts3
4
Fin
ance
leas
es
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
Ass
ets
/(li
abil
itie
s)
Exp
ec
ted
fu
ture
leas
e p
aym
en
ts:
Less
th
an o
ne
ye
ar (8
) (8
) -
-
Be
twe
en
on
e a
nd
fiv
e y
ear
s (3
1) (3
1) -
-
Mo
re t
han
fiv
e y
ear
s (3
87)
(39
5) -
-
Tota
l exp
ec
ted
fu
ture
leas
e p
aym
en
ts (4
26)
(43
4)
-
-
Less
: fu
ture
fin
ance
ch
arg
es
30
6
316
-
-
Pre
sen
t va
lue
of
exp
ec
ted
fu
ture
leas
e p
aym
en
ts (1
20
) (1
18)
-
-
Pre
sen
t va
lue
of
exp
ec
ted
fu
ture
leas
e p
aym
en
ts p
ayab
le:
Less
th
an o
ne
ye
ar 3
3
-
-
Be
twe
en
on
e a
nd
fiv
e y
ear
s 1
4
13
-
-
Mo
re t
han
fiv
e y
ear
s (1
37)
(13
4)
-
-
Tota
l pre
sen
t va
lue
of
exp
ec
ted
fu
ture
leas
e p
aym
en
ts (1
20
) (1
18)
-
-
Cla
ssif
ied
as:
Cu
rre
nt
asse
t -
fin
ance
leas
e r
ece
ivab
le 3
3
-
-
No
n-c
urr
en
t lia
bili
ty -
fin
ance
leas
e p
ayab
le (1
23)
(12
1) -
-
Tota
l (1
20
) (1
18)
-
-
Th
e ca
rryi
ng
val
ue
of
the
finan
ce le
ases
ap
pro
xim
ates
th
eir
fair
val
ue.
Pro
per
ty e
xch
ang
es
Ch
oru
s h
as le
ased
exc
han
ge
spac
e an
d c
om
mer
cial
co
-lo
cati
on
spac
e o
wn
ed b
y Te
leco
m w
hic
h is
su
bje
ct t
o f
inan
ce le
ase
arra
ng
emen
ts. C
ho
rus
in t
urn
leas
es e
xch
ang
e sp
ace
and
com
mer
cial
co
-lo
cati
on
sp
ace
ow
ned
by
Ch
oru
s to
Tel
eco
m u
nd
er
a fin
ance
leas
e ar
ran
gem
ent.
Th
e te
rm o
f th
e le
ases
wh
ere
Ch
oru
s
is le
ssee
is f
or
ten
yea
rs w
ith
mu
ltip
le r
igh
ts o
f re
new
al f
or
a fu
rth
er
twen
ty f
ive
year
s. T
he
term
of
the
leas
e w
her
e C
ho
rus
is le
sso
r is
fo
r
thre
e ye
ars
wit
h t
wo
rig
hts
of
ren
ewal
fo
r a
furt
her
th
ree
year
s ea
ch.
Op
erat
ing
leas
es
GR
OU
PP
AR
EN
T
20
13 $M
20
12 $M
20
13 $M
20
12 $M
No
n-c
ance
llab
le o
pe
rati
ng
leas
e re
nta
ls a
re p
ayab
le a
s fo
llo
ws:
Less
th
an o
ne
ye
ar 6
4
-
-
Be
twe
en
on
e a
nd
fiv
e y
ear
s 1
4
11
-
-
Mo
re t
han
fiv
e y
ear
s 6
4
-
-
Tota
l 2
6
19
-
-
Ch
oru
s h
as e
nte
red
into
leas
ing
arr
ang
emen
ts f
or
pro
per
ties
,
net
wo
rk in
fras
tru
ctu
re a
nd
oth
er it
ems
of
equ
ipm
ent
wh
ich
are
clas
sifie
d a
s o
per
atin
g le
ases
. Cer
tain
leas
es a
re s
ub
ject
to
Ch
oru
s
bei
ng
ab
le t
o r
enew
or
exte
nd
th
e le
ase
per
iod
bas
ed o
n t
erm
s th
at
wo
uld
th
en b
e ag
reed
wit
h t
he
less
or.
Th
ere
are
no
oth
er s
ign
ifica
nt
leas
e te
rms
that
rel
ate
to c
on
tin
gen
t re
nts
, pu
rch
ase
op
tio
ns
or
oth
er
rest
rict
ion
s o
n C
ho
rus.
PA
RE
NT
20
13 $M
20
12 $M
Sh
are
s at
co
st 5
38
538
Term
ad
van
ce 1
,70
0
1,7
00
Tota
l in
vest
me
nts
an
d a
dva
nce
s 2
,238
2
,238
Ch
oru
s N
ew Z
eala
nd
Lim
ited
inco
rpo
rate
d in
New
Zea
lan
d
is a
wh
olly
ow
ned
op
erat
ing
su
bsi
dia
ry o
f C
ho
rus
Lim
ited
.
Th
e in
vest
men
t in
th
e su
bsi
dia
ry is
car
ried
at
cost
less
an
y
imp
airm
ents
loss
es a
nd
co
mp
rise
s:
No
te 1
6 –
Inve
stm
ents
an
d a
dva
nce
s
Th
e fu
ll te
rm h
as b
een
use
d in
th
e ca
lcu
lati
on
of
finan
ce le
ase
pay
able
s an
d r
ecei
vab
les
as it
is li
kely
, du
e to
th
e sp
ecia
lised
nat
ure
of
the
bu
ildin
gs,
th
e le
ases
will
be
ren
ewed
to
th
e m
axim
um
ter
m.
Th
e p
ayab
le a
nd
rec
eiva
ble
un
der
th
ese
finan
ce le
ase
arra
ng
emen
ts
are
net
set
tled
in c
ash
. Th
e fin
ance
leas
e ar
ran
gem
ent
abo
ve r
efle
cts
the
net
fin
ance
leas
e re
ceiv
able
an
d p
ayab
le p
osi
tio
n.
Th
ere
wer
e n
o im
pai
rmen
t lo
sses
on
inve
stm
ents
an
d a
dva
nce
s
at 3
0 J
un
e 2
013
(30
Ju
ne
20
12: n
il).
No
te 1
5 –
Lea
ses
con
tinu
edN
ote
15
– L
ease
s co
ntin
ued
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
35
No
te 1
7 –
Eq
uit
y
Shar
e ca
pit
al
Mo
vem
ents
in C
ho
rus
Lim
ited
’s is
sued
ord
inar
y sh
ares
wer
e as
fo
llow
s:
GR
OU
P A
ND
PA
RE
NT
NU
MB
ER
OF
SHA
RE
S (M
ILLI
ON
S)2
013 M
20
12 M
Bal
ance
at
be
gin
nin
g o
f th
e p
eri
od
38
5 3
85
Div
ide
nd
Re
inve
stm
en
t P
lan
4
-
Bal
ance
at
the
en
d o
f th
e p
eri
od
38
9
38
5
Ch
oru
s Li
mit
ed h
as 3
89
,29
9,0
49
fu
lly p
aid
ord
inar
y sh
ares
(30
Ju
ne
20
12: 3
85,
08
2,1
23
fu
lly p
aid
ord
inar
y sh
ares
). T
he
issu
ed
shar
es h
ave
no
par
val
ue.
Th
e h
old
ers
of
ord
inar
y sh
ares
are
en
titl
ed
to r
ecei
ve d
ivid
end
s as
dec
lare
d f
rom
tim
e to
tim
e, a
nd
are
en
titl
ed
to o
ne
vote
per
sh
are
at m
eeti
ng
s o
f C
ho
rus
Lim
ited
. Un
der
Ch
oru
s
Lim
ited
’s c
on
stit
uti
on
, Cro
wn
ap
pro
val i
s re
qu
ired
if a
sh
areh
old
er
wis
hes
to
hav
e a
ho
ldin
g o
f 10
% o
r m
ore
of
Ch
oru
s Li
mit
ed o
rdin
ary
shar
es, o
r if
a sh
areh
old
er w
ho
is n
ot
a N
ew Z
eala
nd
nat
ion
al w
ish
es
to h
ave
a h
old
ing
of
49
.9%
or
mo
re o
f o
rdin
ary
shar
es.
In t
he
year
en
ded
30
Ju
ne
20
13 C
ho
rus
Lim
ited
imp
lem
ente
d a
Div
iden
d R
ein
vest
men
t P
lan
. Un
der
th
e P
lan
, elig
ible
sh
areh
old
ers
(th
ose
wh
o h
ave
an a
dd
ress
in N
ew Z
eala
nd
or
Au
stra
lia) c
an c
ho
ose
to h
ave
Ch
oru
s Li
mit
ed r
ein
vest
all
or
par
t o
f th
eir
futu
re d
ivid
end
s
in a
dd
itio
nal
Ch
oru
s Li
mit
ed s
har
es. I
n r
esp
ect
of
the
year
en
ded
30
Ju
ne
20
13, 4
,216
,92
6 s
har
es w
ith
a t
ota
l val
ue
of
$12
mill
ion
wer
e
issu
ed in
lieu
of
div
iden
ds.
Ch
oru
s Li
mit
ed is
sues
sec
uri
ties
to
CFH
bas
ed o
n t
he
nu
mb
er o
f
pre
mis
es p
asse
d. C
FH s
ecu
riti
es a
re a
cla
ss o
f se
curi
ty t
hat
car
ry n
o
rig
ht
to v
ote
at
mee
tin
gs
of
ho
lder
s o
f C
ho
rus
Lim
ited
ord
inar
y sh
ares
bu
t ca
rry
pre
fere
nce
on
liq
uid
atio
n. R
efer
to
no
te 4
fo
r ad
dit
ion
al
info
rmat
ion
on
CFH
sec
uri
ties
.
Sho
uld
Ch
oru
s Li
mit
ed r
etu
rn c
apit
al t
o s
har
eho
lder
s, a
ny
retu
rn o
f
cap
ital
th
at a
rose
on
dem
erg
er is
exp
ecte
d t
o b
e ta
xab
le a
s C
ho
rus
Lim
ited
had
zer
o a
vaila
ble
su
bsc
rib
ed c
apit
al o
n d
emer
ger
.
Th
e fo
llow
ing
div
iden
ds
wer
e d
ecla
red
an
d p
aid
by
Ch
oru
s Li
mit
ed
for
the
year
en
ded
30
Ju
ne
20
13 :
No
te 1
7 –
Eq
uity
co
ntin
ued
GR
OU
P A
ND
PA
RE
NT
20
13 $M
20
13C
EN
TS
PE
R
SHA
RE
20
12 d
ivid
en
d p
aid
56
1
4.6
20
13 in
teri
m d
ivid
en
d p
aid
39
1
0.0
Div
ide
nd
s p
aid
du
rin
g t
he
year
95
Fin
al d
ivid
en
d d
ec
lare
d s
ub
seq
ue
nt
to b
alan
ce d
ate
no
t p
rovi
de
d (
refe
r to
no
te 2
3)
60
15
.5
No
div
iden
d w
as p
aid
du
rin
g t
he
seve
n m
on
ths
end
ed 3
0 J
un
e 2
012
.
Res
erve
s
Cas
h fl
ow
hed
ge
rese
rve
Th
e ca
sh f
low
hed
ge
rese
rve
com
pri
ses
the
effe
ctiv
e p
ort
ion
of
the
cum
ula
tive
net
ch
ang
e in
th
e fa
ir v
alu
e o
f ca
sh f
low
hed
gin
g
inst
rum
ents
rel
ated
to
hed
ged
tra
nsa
ctio
ns
that
hav
e n
ot
yet
affe
cted
ear
nin
gs.
For
cash
flo
w h
edg
es, t
he
effe
ctiv
e p
ort
ion
of
gai
ns
or
loss
es f
rom
rem
easu
rin
g t
he
fair
val
ue
of
the
hed
gin
g in
stru
men
t is
rec
og
nis
ed
in o
ther
co
mp
reh
ensi
ve in
com
e an
d a
ccu
mu
late
d in
th
e ca
sh f
low
hed
ge
rese
rve.
Acc
um
ula
ted
gai
ns
or
loss
es a
re s
ub
seq
uen
tly
tran
sfer
red
to
th
e in
com
e st
atem
ent
wh
en t
he
hed
ged
item
aff
ects
the
inco
me
stat
emen
t, o
r w
hen
th
e h
edg
ed it
em is
a f
ore
cast
tran
sact
ion
th
at is
no
lon
ger
exp
ecte
d t
o o
ccu
r. A
lter
nat
ivel
y,
wh
en t
he
hed
ged
item
res
ult
s in
a n
on
-fin
anci
al a
sset
or
liab
ility
,
the
accu
mu
late
d g
ain
s an
d lo
sses
are
incl
ud
ed in
th
e in
itia
l
mea
sure
men
t o
f th
e co
st o
f th
e as
set
or
liab
ility
.
Th
e re
mea
sure
men
t g
ain
or
loss
on
th
e in
effe
ctiv
e p
ort
ion
of
a
cash
flo
w h
edg
e is
rec
og
nis
ed im
med
iate
ly in
th
e in
com
e st
atem
ent.
A r
eco
nci
liati
on
of
mo
vem
ents
in t
he
cash
flo
w h
edg
e
rese
rve
follo
ws:
GR
OU
P A
ND
PA
RE
NT
20
13 $M
20
12 $M
Op
en
ing
bal
ance
10
-
(Gai
n)/
loss
re
cog
nis
ed
in o
the
r co
mp
reh
en
sive
inco
me
(9)
10
Ne
t am
ou
nts
re
cla
ssif
ied
fro
m c
ash
flo
w h
ed
ge
re
serv
e t
o in
com
e s
tate
me
nt
-
-
Clo
sin
g b
alan
ce 1
1
0
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts3
6
Th
e p
erio
ds
in w
hic
h t
he
cash
flo
ws
asso
ciat
ed w
ith
cas
h
flo
w h
edg
es a
re e
xpec
ted
to
imp
act
earn
ing
s ar
e as
fo
llow
s:
No
te 1
7 –
Eq
uity
co
ntin
ued
No
te 1
8 –
Ear
nin
gs
per
sh
are
GR
OU
P A
ND
PA
RE
NT
AS
AT
30
JU
NE
20
13
WIT
HIN
1
YE
AR
$M
1-2
YE
AR
S$
M2
-3 Y
EA
RS
$M
3-4
YE
AR
S$
M4
-5 Y
EA
RS
$M
GR
EA
TE
R T
HA
N
5 Y
EA
RS
$M
Cro
ss c
urr
en
cy
inte
rest
rat
e s
wap
s -
-
-
-
-
1
Inte
rest
rat
e s
wap
s -
1
-
1
-
(2
)
Forw
ard
exc
han
ge
co
ntr
acts
-
-
-
-
-
-
Ele
ctr
icit
y co
ntr
acts
-
-
-
-
-
-
-
1
-
1
-
(1)
GR
OU
P A
ND
PA
RE
NT
AS
AT
30
JU
NE
20
12
WIT
HIN
1
YE
AR
$M
1-2
YE
AR
S$
M2
-3 Y
EA
RS
$M
3-4
YE
AR
S$
M4
-5 Y
EA
RS
$M
GR
EA
TE
R T
HA
N
5 Y
EA
RS
$M
Cro
ss c
urr
en
cy
inte
rest
rat
e s
wap
s -
-
-
-
-
(1
6)
Inte
rest
rat
e s
wap
s -
-
2
-
4
2
0
Forw
ard
exc
han
ge
co
ntr
acts
-
-
-
-
-
-
Ele
ctr
icit
y co
ntr
acts
-
-
-
-
-
-
-
-
2
-
4
4
Fair
val
ue
hed
ge
rese
rve
For
fair
val
ue
hed
ges
, gai
ns
or
loss
es f
rom
rem
easu
rin
g t
he
fair
valu
e o
f th
e h
edg
ing
inst
rum
ent
are
reco
gn
ised
in t
he
inco
me
stat
emen
t to
get
her
wit
h a
ny
chan
ges
in t
he
fair
val
ue
of
the
hed
ged
asse
t o
r lia
bili
ty.
Ch
oru
s d
id n
ot
hav
e an
y h
edg
ing
arr
ang
emen
ts d
esig
nat
ed
as a
fai
r va
lue
hed
ge
in t
he
curr
ent
year
(30
Ju
ne
20
12: n
il).
Th
e ca
lcu
lati
on
of
bas
ic e
arn
ing
s p
er s
har
e at
30
Ju
ne
20
13 is
bas
ed o
n t
he
net
ear
nin
gs
for
the
year
of
$17
1 m
illio
n (3
0 J
un
e 2
012
:
$10
2 m
illio
n),
and
a w
eig
hte
d a
vera
ge
nu
mb
er o
f o
rdin
ary
shar
es
ou
tsta
nd
ing
du
rin
g t
he
per
iod
of
38
6 m
illio
n (3
0 J
un
e 2
012
:
38
5 m
illio
n),
calc
ula
ted
as
follo
ws:
GR
OU
P
20
132
012
Bas
ic e
arn
ing
s p
er
shar
e
Ne
t e
arn
ing
s at
trib
uta
ble
to
ord
inar
y sh
are
ho
lde
rs (
$ m
illio
ns)
171
1
02
De
no
min
ato
r -
we
igh
ted
ave
rag
e n
um
be
r o
f o
rdin
ary
shar
es
(mill
ion
s) 3
86
3
85
Bas
ic e
arn
ing
s p
er
shar
e (d
oll
ars)
0.4
4
0.2
6
Dil
ute
d e
arn
ing
s p
er
shar
e
Ne
t e
arn
ing
s at
trib
uta
ble
to
ord
inar
y sh
are
ho
lde
rs (
$ m
illio
ns)
171
1
02
We
igh
ted
ave
rag
e n
um
be
r o
f o
rdin
ary
shar
es
(mill
ion
s) 3
86
3
85
Ord
inar
y sh
are
s re
qu
ire
d t
o s
ett
le C
FH e
qu
ity
sec
uri
tie
s (m
illio
ns)
25
2
De
no
min
ato
r -
dilu
ted
we
igh
ted
ave
rag
e n
um
be
r o
f sh
are
s (m
illio
ns)
411
3
87
Dil
ute
d e
arn
ing
s p
er
shar
e (d
oll
ars)
0.4
2 0
.26
CFH
eq
uit
y se
curi
ties
can
be
sett
led
by
issu
ing
Ch
oru
s sh
ares
val
ued
at a
5%
dis
cou
nt
to t
he
20
-day
vo
lum
e w
eig
hte
d a
vera
ge
pri
ce f
or
Ch
oru
s sh
ares
tra
ded
in o
rdin
ary
trad
ing
on
th
e N
ZX
Mai
n B
oar
d.
Th
e n
um
ber
of
ord
inar
y sh
ares
th
at w
ou
ld h
ave
bee
n r
equ
ired
to
sett
le a
ll C
FH e
qu
ity
secu
riti
es o
n is
sue
at 3
0 J
un
e 2
013
has
bee
n
use
d f
or
the
pu
rpo
ses
of
the
dilu
ted
ear
nin
gs
per
sh
are
calc
ula
tio
n.
Th
ere
was
no
dilu
tio
n e
ffec
t at
30
Ju
ne
20
12.
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
37
No
te 1
9 –
Rel
ated
par
ty t
ran
sact
ion
s
Tran
sact
ion
s w
ith
rel
ated
par
ties
Cer
tain
Ch
oru
s d
irec
tors
hav
e re
leva
nt
inte
rest
s in
a n
um
ber
of
com
pan
ies
wit
h w
hic
h C
ho
rus
has
tra
nsa
ctio
ns
in t
he
no
rmal
co
urs
e
of
bu
sin
ess.
A n
um
ber
of
Ch
oru
s’ d
irec
tors
are
als
o n
on
-exe
cuti
ve
dir
ecto
rs o
f o
ther
co
mp
anie
s. A
ny
tran
sact
ion
s u
nd
erta
ken
wit
h
thes
e en
titi
es h
ave
bee
n e
nte
red
into
ind
epen
den
tly
on
an
arm
’s
len
gth
co
mm
erci
al b
asis
.
Key
man
agem
ent
per
son
nel
co
mp
ensa
tio
n
GR
OU
PP
AR
EN
T
20
13
$’0
00
s2
012
$
’00
0s
20
13
$’0
00
s2
012
$
’00
0s
Sh
ort
te
rm e
mp
loye
e b
en
efi
ts 5
,49
4
3,1
08
-
-
Po
st e
mp
loym
en
t b
en
efi
ts -
-
-
-
Term
inat
ion
be
ne
fits
24
2 -
-
-
Oth
er
lon
g t
erm
be
ne
fits
650
5
42
-
-
Sh
are
bas
ed
pay
me
nts
-
-
-
-
6,3
86
3
,650
-
-
Th
is t
able
ab
ove
incl
ud
es r
emu
ner
atio
n o
f $
86
3,5
00
(30
Ju
ne
20
12:
$4
67,
00
0) p
aid
to
dir
ecto
rs f
or
the
per
iod
.
Par
ent/
sub
sid
iary
rel
atio
nsh
ip
Ch
oru
s Li
mit
ed is
th
e lis
ted
ho
ldin
g c
om
pan
y w
ith
th
e d
ebt
ob
ligat
ion
fo
r th
e E
MT
N a
nd
syn
dic
ated
ban
k fa
cilit
y an
d is
th
e is
suer
of
the
CFH
sec
uri
ties
. Ch
oru
s N
ew Z
eala
nd
Lim
ited
is a
n o
per
atio
nal
sub
sid
iary
pro
vid
ing
fix
ed a
cces
s an
d a
gg
reg
atio
n s
ervi
ces
in
New
Zea
lan
d. C
ho
rus
Lim
ited
pro
vid
es f
un
din
g t
o C
ho
rus
New
Zea
lan
d L
imit
ed f
or
the
op
erat
ion
an
d c
on
stru
ctio
n o
f th
e
net
wo
rk. C
ho
rus
New
Zea
lan
d L
imit
ed h
as p
rovi
ded
a g
uar
ante
e to
the
len
der
s in
res
pec
t o
f th
e C
ho
rus
Lim
ited
syn
dic
ated
ban
k fa
cilit
y
and
EM
TN
deb
t.
PA
RE
NT
20
13 $M
20
12 $M
Inte
rco
mp
any
div
ide
nd
86
-
Inte
rco
mp
any
inte
rest
inco
me
10
4
60
Inte
rco
mp
any
sho
rt t
erm
re
ceiv
able
211
2
2
Inte
rco
mp
any
term
ad
van
ce 1
,70
0
1,7
00
No
te 2
0 –
Der
ivat
ive
fin
anci
al in
stru
men
ts
Der
ivat
ive
fin
anci
al in
stru
men
ts
Ch
oru
s u
ses
der
ivat
ive
finan
cial
inst
rum
ents
to
red
uce
its
exp
osu
re t
o
flu
ctu
atio
ns
in f
ore
ign
cu
rren
cy e
xch
ang
e ra
tes,
inte
rest
rat
es a
nd
th
e
spo
t p
rice
of
elec
tric
ity.
Th
e u
se o
f h
edg
ing
inst
rum
ents
is g
ove
rned
by
the
trea
sury
po
licy
app
rove
d b
y th
e B
oar
d o
f D
irec
tors
.
Der
ivat
ives
are
init
ially
rec
og
nis
ed a
t fa
ir v
alu
e o
n t
he
dat
e a
der
ivat
ive
con
trac
t is
en
tere
d in
to a
nd
are
su
bse
qu
ently
rem
easu
red
to
fai
r va
lue.
Th
e fa
ir v
alu
es a
re e
stim
ated
on
th
e b
asis
of
the
qu
ote
d m
arke
t p
rice
s
for
sim
ilar
inst
rum
ents
in a
n a
ctiv
e m
arke
t o
r q
uo
ted
pri
ces
for
iden
tical
or
sim
ilar
inst
rum
ents
in in
acti
ve m
arke
ts a
nd
fin
anci
al in
stru
men
ts
valu
ed u
sin
g m
od
els
wh
ere
all s
ign
ifica
nt
inp
uts
are
ob
serv
able
.
Th
e m
eth
od
of
reco
gn
isin
g t
he
resu
ltin
g r
emea
sure
men
t g
ain
or
loss
dep
end
s o
n w
het
her
th
e d
eriv
ativ
e is
des
ign
ated
as
a
hed
gin
g in
stru
men
t. If
th
e d
eriv
ativ
e is
no
t d
esig
nat
ed a
s a
hed
gin
g
inst
rum
ent,
th
e re
mea
sure
men
t g
ain
or
loss
is r
eco
gn
ised
imm
edia
tely
in t
he
inco
me
stat
emen
t.
GR
OU
P A
ND
PA
RE
NT
20
13 $M
20
12 $M
No
n-c
urr
en
t d
eri
vati
ve a
sse
ts
Inte
rest
rat
e s
wap
s 7
-
Forw
ard
exc
han
ge
rat
e c
on
trac
ts -
-
Cro
ss c
urr
en
cy
inte
rest
rat
e s
wap
s -
2
Cu
rre
nc
y o
pti
on
s -
-
Ele
ctr
icit
y co
ntr
acts
-
-
7
2
No
n-c
urr
en
t d
eri
vati
ve li
abil
itie
s
Inte
rest
rat
e s
wap
s 2
3
2
Forw
ard
exc
han
ge
rat
e c
on
trac
ts -
-
Cro
ss c
urr
en
cy
inte
rest
rat
e s
wap
s 1
03
78
Cu
rre
nc
y o
pti
on
s -
-
Ele
ctr
icit
y co
ntr
acts
1
-
10
6
110
Th
e n
oti
on
al v
alu
es o
f co
ntr
act
amo
un
ts o
uts
tan
din
g a
re a
s fo
llow
s:
GR
OU
P A
ND
PA
RE
NT
CU
RR
EN
CY
MA
TU
RIT
Y2
013 $M
20
12 $M
Inte
rest
rat
e s
wap
sN
ZD
20
14-2
02
0 1
,24
2 1
,24
2
Forw
ard
exc
han
ge
rat
e c
on
trac
tsN
ZD
:AU
D2
013
3
-
NZ
D:E
UR
20
12-2
016
11
5
NZ
D:U
SD
20
12 -
4
Cro
ss c
urr
en
cy
inte
rest
rat
e s
wap
sN
ZD
:GB
P2
02
0 6
77
677
Cu
rre
nc
y o
pti
on
sN
ZD
:AU
D2
012
-
4
NZ
D:E
UR
20
12 -
6
NZ
D:U
SD
20
12 -
4
Ele
ctr
icit
y co
ntr
acts
NZ
D2
013
-20
15 7
-
1,9
40
1
,94
2
Cre
dit
ris
k as
soci
ated
wit
h d
eriv
ativ
e fin
anci
al in
stru
men
ts is
man
aged
by
ensu
rin
g t
hat
tra
nsa
ctio
ns
are
exec
ute
d w
ith
co
un
terp
arti
es w
ith
hig
h q
ual
ity
cred
it r
atin
gs
alo
ng
wit
h c
red
it e
xpo
sure
lim
its
for
diff
eren
t cr
edit
cla
sses
. Th
e co
un
terp
arty
cre
dit
ris
k is
mo
nit
ore
d
and
rev
iew
ed b
y th
e B
oar
d o
n a
reg
ula
r b
asis
.
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts3
8
No
te 2
1 –
Fin
anci
al r
isk
man
agem
ent
Fin
anci
al r
isk
man
agem
ent
Ch
oru
s’ f
inan
cial
inst
rum
ents
co
nsi
st o
f ca
sh, s
ho
rt-t
erm
dep
osi
ts,
trad
e an
d o
ther
rec
eiva
ble
s (e
xclu
din
g p
rep
aym
ents
), in
vest
men
ts
and
ad
van
ces,
tra
de
pay
able
s an
d c
erta
in o
ther
pay
able
s, s
ynd
icat
ed
ban
k fa
cilit
y, E
MT
N, d
eriv
ativ
e fin
anci
al in
stru
men
ts a
nd
CFH
secu
riti
es. F
inan
cial
ris
k m
anag
emen
t fo
r cu
rren
cy a
nd
inte
rest
rat
e
risk
is c
arri
ed o
ut
by
the
trea
sury
fu
nct
ion
un
der
po
licie
s ap
pro
ved
by
the
Bo
ard
. Ch
oru
s’ r
isk
man
agem
ent
po
licy,
ap
pro
ved
by
the
Bo
ard
, pro
vid
es t
he
bas
is f
or
ove
rall
risk
man
agem
ent.
Ch
oru
s d
oes
no
t h
old
or
issu
e d
eriv
ativ
e fin
anci
al in
stru
men
ts f
or
trad
ing
pu
rpo
ses.
All
con
trac
ts h
ave
bee
n e
nte
red
into
wit
h m
ajo
r
cred
itw
ort
hy
finan
cial
inst
itu
tio
ns.
Th
e ri
sk a
sso
ciat
ed w
ith
th
ese
tran
sact
ion
s is
th
e co
st o
f re
pla
cin
g t
hes
e ag
reem
ents
at
the
curr
ent
mar
ket
rate
s in
th
e ev
ent
of
def
ault
by
a co
un
terp
arty
.
Cu
rren
cy r
isk
Ch
oru
s’ e
xpo
sure
to
fo
reig
n c
urr
ency
flu
ctu
atio
ns
pre
do
min
antl
y
aris
e fr
om
th
e fo
reig
n c
urr
ency
deb
t an
d f
utu
re c
om
mit
men
t
to p
urc
has
e fo
reig
n c
urr
ency
den
om
inat
ed a
sset
s. T
he
pri
mar
y
ob
ject
ive
in m
anag
ing
fo
reig
n c
urr
ency
ris
k is
to
pro
tect
ag
ain
st
the
risk
th
at C
ho
rus
asse
ts, l
iab
iliti
es a
nd
fin
anci
al p
erfo
rman
ce
will
flu
ctu
ate
du
e to
ch
ang
es in
fo
reig
n c
urr
ency
exc
han
ge
rate
s.
Ch
oru
s en
ters
into
fo
reig
n e
xch
ang
e co
ntr
acts
, fo
reig
n c
urr
ency
op
tio
ns
and
cro
ss c
urr
ency
inte
rest
rat
e sw
aps
to m
anag
e th
e
fore
ign
exc
han
ge
exp
osu
re.
Ch
oru
s h
as is
sued
GB
P2
60
mill
ion
fo
reig
n c
urr
ency
deb
t in
th
e fo
rm
of
EM
TN
. Ch
oru
s h
as in
pla
ce c
ross
cu
rren
cy in
tere
st r
ate
swap
s
un
der
wh
ich
Ch
oru
s re
ceiv
es G
BP
26
0 m
illio
n p
rin
cip
al a
nd
GB
P f
ixed
cou
po
n p
aym
ents
fo
r $
677
mill
ion
pri
nci
pal
an
d f
loat
ing
NZ
D in
tere
st
pay
men
ts. T
he
exch
ang
e g
ain
or
loss
res
ult
ing
fro
m t
he
tran
slat
ion
of
EM
TN
den
om
inat
ed in
fo
reig
n c
urr
ency
to
New
Zea
lan
d d
olla
rs is
reco
gn
ised
in t
he
inco
me
stat
emen
t. T
he
mo
vem
ent
is o
ffse
t b
y th
e
tran
slat
ion
of
the
pri
nci
pal
val
ue
of
the
rela
ted
cro
ss c
urr
ency
inte
rest
rate
sw
ap.
As
at 3
0 J
un
e 2
013
, Ch
oru
s d
id n
ot
hav
e an
y si
gn
ifica
nt
un
hed
ged
exp
osu
re t
o c
urr
ency
ris
k (3
0 J
un
e 2
012
: no
sig
nifi
can
t u
nh
edg
ed
exp
osu
re t
o c
urr
ency
ris
k). A
10
% in
crea
se o
r d
ecre
ase
in t
he
exch
ang
e ra
te, w
ith
all
oth
er v
aria
ble
s h
eld
co
nst
ant,
has
min
imal
imp
act
on
pro
fit a
nd
eq
uit
y re
serv
es o
f C
ho
rus.
Pri
ce r
isk
In t
he
no
rmal
co
urs
e o
f b
usi
nes
s, C
ho
rus
is e
xpo
sed
to
a v
arie
ty
of
finan
cial
ris
ks w
hic
h in
clu
de
the
vola
tilit
y in
ele
ctri
city
pri
ces.
Ch
oru
s h
as e
nte
red
into
ele
ctri
city
sw
ap c
on
trac
ts t
o r
edu
ce
the
exp
osu
re t
o e
lect
rici
ty s
po
t p
rice
mo
vem
ents
. Ch
oru
s h
as
des
ign
ated
th
e el
ectr
icit
y co
ntr
acts
in c
ash
flo
w h
edg
e re
lati
on
ship
s.
A 1
0%
incr
ease
or
dec
reas
e in
th
e sp
ot
pri
ce o
f el
ectr
icit
y, w
ith
all o
ther
var
iab
les
hel
d c
on
stan
t, h
as m
inim
al im
pac
t o
n p
rofit
an
d
equ
ity
rese
rves
of
Ch
oru
s.
Inte
rest
rat
e ri
sk
Ch
oru
s h
as in
tere
st r
ate
risk
ari
sin
g f
rom
th
e cr
oss
cu
rren
cy
inte
rest
rat
e sw
ap c
on
vert
ing
th
e fo
reig
n d
ebt
into
a f
loat
ing
rat
e
New
Zea
lan
d d
olla
r o
blig
atio
n a
nd
th
e fl
oat
ing
rat
e o
n t
he
dra
wn
do
wn
po
rtio
n o
f th
e sy
nd
icat
ed b
ank
faci
lity.
Ch
oru
s ai
ms
to r
edu
ce
the
un
cert
ain
ty o
f ch
ang
es in
inte
rest
rat
es b
y en
teri
ng
into
inte
rest
rate
sw
aps
to f
ix t
he
effe
ctiv
e in
tere
st r
ate
to m
inim
ise
the
cost
of
net
deb
t an
d m
anag
e th
e im
pac
t o
f in
tere
st r
ate
vola
tilit
y o
n e
arn
ing
s.
Th
e in
tere
st r
isk
on
th
e cr
oss
cu
rren
cy in
tere
st r
ate
swap
s h
as b
een
hed
ged
usi
ng
inte
rest
rat
e sw
aps.
Th
e in
tere
st r
ate
exp
osu
re o
n t
he
syn
dic
ated
ban
kin
g f
acili
ty h
as b
een
hed
ged
up
to
$5
65
mill
ion
wit
h
the
rem
ain
ing
pay
ing
flo
atin
g in
tere
st.
Inte
rest
rat
e re
pri
cin
g a
nal
ysis
GR
OU
P
AS
AT
30
JU
NE
20
13
WIT
HIN
1
YE
AR
$M
1-2
YE
AR
S$
M2
-3 Y
EA
RS
$M
3-4
YE
AR
S$
M4
-5 Y
EA
RS
$M
GR
EA
TE
R T
HA
N
5 Y
EA
RS
$M
TO
TA
L$
M
Flo
atin
g r
ate
Cas
h a
nd
de
po
sits
80
-
-
-
-
-
8
0
De
bt
630
-
-
-
-
-
6
30
Fixe
d r
ate
Join
t ar
ran
ge
me
nts
8
3
-
-
-
-
11
De
bt
(aft
er
he
dg
ing
) -
3
50
-
215
-
6
77
1,2
42
CFH
se
cu
riti
es
-
-
-
-
-
30
3
0
Fin
ance
leas
e (
ne
t se
ttle
d)
(3)
(3)
(3)
(4)
(4)
13
7 1
20
715
3
50
(3)
211
(4
) 8
44
2
,113
GR
OU
P
AS
AT
30
JU
NE
20
12
WIT
HIN
1
YE
AR
$M
1-2
YE
AR
S $
M2
-3 Y
EA
RS
$M
3-4
YE
AR
S$
M4
-5 Y
EA
RS
$M
GR
EA
TE
R T
HA
N
5 Y
EA
RS
$M
TO
TA
L$
M
Flo
atin
g r
ate
Cas
h a
nd
de
po
sits
14
0
-
-
-
-
-
14
0
De
bt
54
0
-
-
-
-
-
54
0
Fixe
d r
ate
Join
t ar
ran
ge
me
nts
11
7
3
-
-
-
21
De
bt
(aft
er
he
dg
ing
) -
-
3
50
-
215
6
77
1,2
42
CFH
se
cu
riti
es
-
-
-
-
-
3
3
Fin
ance
leas
e (
ne
t se
ttle
d)
(3)
(3)
(3)
(3)
(4)
13
4
118
68
8
4
350
(3
) 2
11
814
2
,06
4
No
te 2
1 –
Fin
anci
al r
isk
man
agem
ent
con
tinu
ed
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
39
No
te 2
1 –
Fin
anci
al r
isk
man
agem
ent
con
tinu
ed
Th
e P
aren
t h
as f
loat
ing
rat
e ex
po
sure
s o
f ca
sh (3
0 J
un
e 2
013
:
$6
9 m
illio
n, 3
0 J
un
e 2
012
: $6
1 m
illio
n) a
nd
deb
t (3
0 J
un
e 2
013
:
$6
30
mill
ion
, 30
Ju
ne
20
12: $
54
0 m
illio
n) b
oth
of
wh
ich
are
du
e
wit
hin
on
e ye
ar. T
he
exp
osu
res
of
deb
t (a
fter
hed
gin
g) a
nd
CFH
secu
riti
es a
re t
he
sam
e as
fo
r th
e G
rou
p f
or
the
curr
ent
year
an
d
the
pri
or
per
iod
.
GR
OU
P A
ND
PA
RE
NT
20
13P
RO
FIT
OR
(L
OSS
) $
M
20
13
Eq
UIT
Y
$M
20
12P
RO
FIT
OR
(L
OSS
)$
M
20
12
Eq
UIT
Y
$M
100
bas
is p
oin
t in
cre
ase
(3
) (5
) (5
) 2
1
100
bas
is p
oin
t d
ec
reas
e 3
1
3 5
(2
3)
Cre
dit
ris
k
In t
he
no
rmal
co
urs
e o
f it
s b
usi
nes
s, C
ho
rus
incu
rs c
ou
nte
rpar
ty
cred
it r
isk
fro
m f
inan
cial
inst
rum
ents
, in
clu
din
g c
ash
, tra
de
and
oth
er r
ecei
vab
les,
fin
ance
leas
e re
ceiv
able
s an
d d
eriv
ativ
e
finan
cial
inst
rum
ents
.
Ch
oru
s h
as c
erta
in d
eriv
ativ
e tr
ansa
ctio
ns
that
are
su
bje
ct t
o b
ilate
ral
cred
it s
up
po
rt a
gre
emen
ts t
hat
req
uir
e C
ho
rus
or
the
cou
nte
rpar
ty t
o
No
te 2
1 –
Fin
anci
al r
isk
man
agem
ent
con
tinu
ed
GR
OU
PP
AR
EN
T
NO
TE
S2
013 $M
20
12 $M
20
13 $M
20
12 $M
Cas
h a
nd
cal
l de
po
sits
14 8
0
14
0
69
6
1
Trad
e a
nd
oth
er
rece
ivab
les
10 2
80
1
97
24
3 4
0
De
riva
tive
fin
anc
ial i
nst
rum
en
ts2
0 7
2
7
2
Fin
ance
leas
e r
ece
ivab
le15
3
3
-
-
Max
imu
m e
xpo
sure
to
cre
dit
ris
k 3
70
34
2 3
19
10
3
Ref
er t
o in
div
idu
al n
ote
s fo
r ad
dit
ion
al in
form
atio
n o
n c
red
it r
isk.
Liq
uid
ity
risk
Liq
uid
ity
risk
is t
he
risk
th
at C
ho
rus
will
en
cou
nte
r d
iffic
ult
y ra
isin
g
liqu
id f
un
ds
to m
eet
com
mit
men
ts a
s th
ey f
all d
ue
or
fore
go
ing
inve
stm
ent
op
po
rtu
nit
ies,
res
ult
ing
in d
efau
lts
or
exce
ssiv
e d
ebt
cost
s. P
rud
ent
liqu
idit
y ri
sk m
anag
emen
t im
plie
s m
ain
tain
ing
suff
icie
nt
cash
an
d t
he
abili
ty t
o m
eet
its
finan
cial
ob
ligat
ion
s.
Ch
oru
s’ e
xpo
sure
to
liq
uid
ity
risk
bas
ed o
n c
on
trac
tual
cas
h f
low
s
rela
tin
g t
o f
inan
cial
liab
iliti
es is
su
mm
aris
ed b
elo
w:
Sen
siti
vity
an
alys
is
As
at 3
0 J
un
e 2
013
a c
han
ge
of
100
bas
is p
oin
ts in
inte
rest
rat
e,
wit
h a
ll o
ther
var
iab
les
hel
d c
on
stan
t, w
ou
ld in
crea
se/(
dec
reas
e)
equ
ity
(aft
er h
edg
ing
) an
d e
arn
ing
s af
ter
tax
by
the
amo
un
ts
sho
wn
bel
ow
:
po
st c
olla
tera
l to
su
pp
ort
th
e va
lue
of
cert
ain
der
ivat
ives
.
As
at 3
0 J
un
e 2
013
no
co
llate
ral w
as p
ost
ed.
Th
e m
axim
um
exp
osu
re t
o c
red
it r
isk
at t
he
rep
ort
ing
dat
e
was
as
follo
ws:
GR
OU
P
AS
AT
30
JU
NE
20
13
CA
RR
YIN
G
AM
OU
NT
$M
CO
NT
RA
CT
UA
L C
ASH
FLO
W $M
LESS
TH
AN
1
YE
AR
$M
1-2
YE
AR
S$
M2
-3 Y
EA
RS
$M
3-4
YE
AR
S$
M4
-5 Y
EA
RS
$M
5+
YE
AR
S$
M
No
n d
eri
vati
ve f
inan
cial
liab
ilit
ies
Trad
e a
nd
oth
er
pay
able
s 2
86
2
86
2
83
3
-
-
-
-
Fin
ance
leas
e (
ne
t se
ttle
d)
120
4
26
7
8
8
8
8
38
7
De
bt
1,6
97
2,0
91
77
77
74
1 5
4
56
4
578
CFH
se
cu
riti
es
30
6
7 -
-
-
-
-
6
7
De
riva
tive
fin
anci
al li
abil
itie
s
Inte
rest
rat
e s
wap
s 2
7
5 1
3 1
2 1
2 1
0
9
19
Cro
ss c
urr
en
cy
inte
rest
rat
e s
wap
s
Infl
ow
s -
(
750
) (3
4)
(34
) (3
4)
(35)
(35)
(578
)
Ou
tflo
ws
10
3 9
38
37
37
37
37
38
7
52
Ele
ctr
icit
y co
ntr
acts
1
7
3
3
1
-
-
-
Forw
ard
exc
han
ge
co
ntr
acts
Infl
ow
s -
(1
4)
(10
) (2
) (2
) -
-
-
Ou
tflo
ws
-
14
1
0
2
2
-
-
-
GR
OU
P
AS
AT
30
JU
NE
20
12
CA
RR
YIN
G
AM
OU
NT
$M
CO
NT
RA
CT
UA
L C
ASH
FLO
W $M
LESS
TH
AN
1
YE
AR
$M
1-2
YE
AR
S$
M2
-3 Y
EA
RS
$M
3-4
YE
AR
S$
M4
-5 Y
EA
RS
$M
5+
YE
AR
S$
M
No
n d
eri
vati
ve f
inan
cial
liab
ilit
ies
Trad
e a
nd
oth
er
pay
able
s 2
93
29
5 2
85
7
3
-
-
-
Fin
ance
leas
e (
ne
t se
ttle
d)
118
4
34
8
8
8
8
7
3
95
De
bt
1,6
09
2
,024
7
4
74
7
37
50
4
72
617
CFH
se
cu
riti
es
3
6
-
-
-
-
-
6
De
riva
tive
fin
anci
al li
abil
itie
s
Inte
rest
rat
e s
wap
s 3
2 8
2 1
2 1
2 1
2 1
1 1
0
25
Cro
ss c
urr
en
cy
inte
rest
rat
e s
wap
s
Infl
ow
s -
(2
79)
(35)
(35)
(35)
(35)
(35)
(10
4)
Ou
tflo
ws
78
3
04
3
8
38
3
8
38
3
8
114
Ele
ctr
icit
y co
ntr
acts
-
-
-
-
-
-
-
-
Forw
ard
exc
han
ge
co
ntr
acts
Infl
ow
s -
(9
) (9
) -
-
-
-
-
Ou
tflo
ws
-
9
9
-
-
-
-
-
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts4
0
No
te 2
1 –
Fin
anci
al r
isk
man
agem
ent
con
tinu
ed
Th
e liq
uid
ity
risk
fo
r th
e P
aren
t is
th
e sa
me
as f
or
all d
iscl
osu
res
for
the
Gro
up
exc
ept
trad
e an
d o
ther
pay
able
s an
d f
inan
ce le
ases
.
Th
e ca
rryi
ng
am
ou
nt
of
trad
e an
d o
ther
pay
able
s in
th
e P
aren
t is
$33
mill
ion
(30
Ju
ne
2012
: $31
mill
ion
), w
hic
h is
eq
ual
to th
e co
ntr
actu
al
cash
flo
w a
nd
is a
ll p
ayab
le in
less
th
an o
ne
year
. Th
e P
aren
t d
oes
no
t
hav
e fin
ance
leas
es f
or
the
curr
ent
year
an
d t
he
pri
or
per
iod
.
Th
e g
ross
(in
flo
ws)
/ou
tflo
ws
of
der
ivat
ive
finan
cial
liab
iliti
es d
iscl
ose
d
in t
he
pre
vio
us
tab
le r
epre
sen
t th
e co
ntr
actu
al u
nd
isco
un
ted
cash
flo
ws
rela
tin
g t
o d
eriv
ativ
e fin
anci
al li
abili
ties
hel
d f
or
risk
man
agem
ent
pu
rpo
ses
and
wh
ich
are
usu
ally
no
t cl
ose
d o
ut
pri
or
to c
on
trac
tual
mat
uri
ty. T
he
dis
clo
sure
sh
ow
s n
et c
ash
flo
w a
mo
un
ts
for
der
ivat
ives
th
at a
re n
et c
ash
set
tled
an
d g
ross
cas
h in
flo
w a
nd
ou
tflo
w a
mo
un
ts f
or
der
ivat
ives
th
at h
ave
sim
ult
aneo
us
gro
ss c
ash
sett
lem
ent
(fo
r ex
amp
le f
orw
ard
exc
han
ge
con
trac
ts).
Ch
oru
s m
anag
es t
he
liqu
idit
y ri
sk b
y en
suri
ng
su
ffic
ien
t ac
cess
to c
om
mit
ted
fac
iliti
es, c
on
tin
uo
us
cash
flo
w m
on
ito
rin
g a
nd
mai
nta
inin
g p
rud
ent
leve
ls o
f sh
ort
ter
m d
ebt
mat
uri
ties
. At
bal
ance
dat
e, C
ho
rus
has
ava
ilab
le a
pp
roxi
mat
ely
$15
5 m
illio
n u
nd
er t
he
syn
dic
ated
ban
k fa
cilit
y fo
r it
s im
med
iate
use
(30
Ju
ne
20
12: $
245
mill
ion
). In
ad
dit
ion
, a $
10 m
illio
n o
verd
raft
fac
ility
was
est
ablis
hed
in t
he
curr
ent
year
to
man
age
sho
rt t
erm
cas
h f
un
din
g r
equ
irem
ents
.
Cap
ital
ris
k m
anag
emen
t
Ch
oru
s m
anag
es it
s ca
pit
al c
on
sid
erin
g s
har
eho
lder
s’ in
tere
sts,
th
e
valu
e o
f C
ho
rus
asse
ts a
nd
Ch
oru
s’ c
red
it r
atin
gs.
Th
e ca
pit
al C
ho
rus
man
ages
co
nsi
sts
of
cash
an
d d
ebt
bal
ance
s.
Th
e B
oar
d is
co
mm
itte
d t
o m
ain
tain
ing
a ‘B
BB
’ lo
ng
ter
m c
red
it r
atin
g
fro
m S
tan
dar
d &
Po
or’s
an
d a
‘Baa
2’ l
on
g t
erm
cre
dit
rat
ing
fro
m
Mo
od
y’s
Inve
sto
r Se
rvic
es. C
ho
rus’
cap
ital
man
agem
ent
po
licie
s ar
e
des
ign
ed t
o e
nsu
re t
hat
th
is o
bje
ctiv
e is
met
. It
is C
ho
rus’
inte
nti
on
that
in n
orm
al c
ircu
mst
ance
s th
e ra
tio
of
net
deb
t to
EB
ITD
A w
ill n
ot
mat
eria
lly e
xcee
d 3
.5 t
imes
.
Hed
ge
acco
un
tin
g
Ch
oru
s d
esig
nat
es a
nd
do
cum
ents
th
e re
lati
on
ship
bet
wee
n h
edg
ing
inst
rum
ents
an
d h
edg
ed it
ems,
as
wel
l as
the
risk
man
agem
ent
ob
ject
ive
and
str
ateg
y fo
r u
nd
erta
kin
g v
ario
us
hed
ge
tran
sact
ion
s.
At
hed
ge
ince
pti
on
(an
d o
n a
n o
ng
oin
g b
asis
), h
edg
es a
re a
sses
sed
to e
stab
lish
if t
hey
are
eff
ecti
ve in
off
sett
ing
ch
ang
es in
fai
r va
lues
or
cash
flo
ws
of
hed
ged
item
s. C
ho
rus
dis
con
tin
ues
hed
ge
acco
un
tin
g
if (a
) th
e h
edg
ing
inst
rum
ent
exp
ires
or
is s
old
, ter
min
ated
, or
exer
cise
d; (
b) t
he
hed
ge
no
lon
ger
mee
ts t
he
crit
eria
fo
r h
edg
e
acco
un
tin
g; o
r (c
) th
e h
edg
e d
esig
nat
ion
is r
evo
ked
.
Hed
ges
are
cla
ssifi
ed in
to t
wo
pri
mar
y ty
pes
: cas
h f
low
hed
ges
an
d
fair
val
ue
hed
ges
. Ref
er t
o n
ote
17
for
add
itio
nal
info
rmat
ion
on
cas
h
flo
w a
nd
fai
r va
lue
hed
ge
rese
rves
.
Fair
val
ue
Un
der
NZ
IFR
S, f
inan
cial
inst
rum
ents
are
eit
her
car
ried
at
amo
rtis
ed
cost
, les
s an
y p
rovi
sio
n f
or
imp
airm
ent
loss
es, o
r fa
ir v
alu
e. T
he
on
ly
sig
nifi
can
t va
rian
ces
bet
wee
n in
stru
men
ts h
eld
at
amo
rtis
ed c
ost
an
d
thei
r fa
ir v
alu
e re
late
s to
th
e E
MT
N.
For
tho
se in
stru
men
ts, r
eco
gn
ised
at
fair
val
ue
in t
he
stat
emen
t
of
finan
cial
po
siti
on
, fai
r va
lues
are
det
erm
ined
as
follo
ws:
Leve
l 1: Q
uo
ted
mar
ket
pri
ces
– f
inan
cial
inst
rum
ents
wit
h q
uo
ted
pri
ces
for
iden
tica
l in
stru
men
ts in
act
ive
mar
kets
.
Leve
l 2: V
alu
atio
n t
ech
niq
ues
usi
ng
ob
serv
able
inp
uts
– f
inan
cial
inst
rum
ents
wit
h q
uo
ted
pri
ces
for
sim
ilar
inst
rum
ents
in a
ctiv
e
mar
kets
or
qu
ote
d p
rice
s fo
r id
enti
cal o
r si
mila
r in
stru
men
ts in
inac
tive
mar
kets
an
d f
inan
cial
inst
rum
ents
val
ued
usi
ng
mo
del
s
wh
ere
all s
ign
ifica
nt
inp
uts
are
ob
serv
able
.
Leve
l 3: V
alu
atio
n t
ech
niq
ues
wit
h s
ign
ifica
nt
no
n-o
bse
rvab
le in
pu
ts
– f
inan
cial
inst
rum
ents
val
ued
usi
ng
mo
del
s w
her
e o
ne
or
mo
re
sig
nifi
can
t in
pu
ts a
re n
ot
ob
serv
able
.
Th
e re
leva
nt
finan
cial
ass
ets
and
fin
anci
al li
abili
ties
an
d t
hei
r
resp
ecti
ve f
air
valu
es a
re o
utl
ined
in n
ote
20
an
d a
re a
ll Le
vel 2
(30
Ju
ne
20
12: L
evel
2).
Cro
ss c
urr
ency
inte
rest
rat
e sw
aps
and
inte
rest
rat
e sw
aps
Fair
val
ue
is e
stim
ated
by
usi
ng
a v
alu
atio
n m
od
el in
volv
ing
dis
cou
nte
d f
utu
re c
ash
flo
ws
of
the
der
ivat
ive
usi
ng
th
e ap
plic
able
forw
ard
pri
ce c
urv
e (f
or
the
rele
van
t in
tere
st r
ate
and
fo
reig
n
exch
ang
e ra
te) a
nd
dis
cou
nt
rate
.
Ele
ctri
city
sw
aps
Fair
val
ue
is e
stim
ated
on
th
e A
SX f
orw
ard
pri
ce c
urv
e th
at r
elat
es
to t
he
der
ivat
ive.
Th
e ca
rryi
ng
am
ou
nts
of
finan
cial
ass
ets
and
liab
iliti
es in
eac
h o
f th
e N
Z IA
S 3
9 c
ateg
ori
es a
re a
s fo
llow
s:
GR
OU
P
AS
AT
30
JU
NE
20
13
FAIR
VA
LUE
T
HR
OU
GH
P
RO
FIT
A
ND
LO
SS $M
HE
LD T
O
MA
TU
RIT
Y$
M
LOA
NS
AN
D
RE
CE
IVA
BLE
S$
M
AV
AIL
AB
LE
FOR
SA
LE $M
DE
SIG
NA
TE
D
IN A
HE
DG
ING
R
EL
AT
ION
SHIP $M
OT
HE
R F
INA
NC
IAL
LIA
BIL
ITIE
S A
T
AM
OR
TIS
ED
CO
ST $M
Ass
ets
Cas
h a
nd
cal
l de
po
sits
-
-
80
-
-
-
Trad
e r
ece
ivab
les
-
-
229
-
-
-
Oth
er
rece
ivab
les
-
-
51
-
-
-
De
riva
tive
fin
anc
ial i
nst
rum
en
ts -
-
-
-
7
-
-
-
36
0
-
7
-
Liab
ilit
ies
Trad
e a
cco
un
ts p
ayab
le -
-
-
-
-
1
21
Join
t ar
ran
ge
me
nts
-
-
-
-
-
11
Acc
rual
s -
-
-
-
-
1
54
De
riva
tive
fin
anc
ial i
nst
rum
en
ts -
-
-
-
1
06
-
Fin
ance
leas
e (
ne
t se
ttle
d)
-
-
-
-
-
120
De
bt
-
-
-
-
-
1,6
97
CFH
se
cu
riti
es
-
-
-
-
-
30
-
-
-
-
10
6
2,1
33
GR
OU
P
AS
AT
30
JU
NE
20
12
FAIR
VA
LUE
T
HR
OU
GH
P
RO
FIT
A
ND
LO
SS $M
HE
LD T
O
MA
TU
RIT
Y$
M
LOA
NS
AN
D
RE
CE
IVA
BLE
S$
M
AV
AIL
AB
LE
FOR
SA
LE
$M
DE
SIG
NA
TE
D
IN A
HE
DG
ING
R
EL
AT
ION
SHIP $M
OT
HE
R F
INA
NC
IAL
LIA
BIL
ITIE
S A
T
AM
OR
TIS
ED
CO
ST $M
Ass
ets
Cas
h a
nd
cal
l de
po
sits
-
-
14
0
-
-
-
Trad
e r
ece
ivab
les
-
-
135
-
-
-
Oth
er
rece
ivab
les
-
-
62
-
-
-
De
riva
tive
fin
anc
ial i
nst
rum
en
ts -
-
-
-
2
-
-
-
337
-
2
-
Liab
ilit
ies
Trad
e a
cco
un
ts p
ayab
le -
-
-
-
-
1
47
Join
t ar
ran
ge
me
nts
-
-
-
-
-
21
Acc
rual
s -
-
-
-
-
1
25
De
riva
tive
fin
anc
ial i
nst
rum
en
ts -
-
-
-
1
10
-
Fin
ance
leas
e (
ne
t se
ttle
d)
-
-
-
-
-
118
De
bt
-
-
-
-
-
1,6
09
CFH
se
cu
riti
es
-
-
-
-
-
3
-
-
-
-
110
2
,02
3
No
te 2
1 –
Fin
anci
al r
isk
man
agem
ent
con
tinu
ed
Ch
oru
s Fi
nan
cia
l Sta
tem
en
ts
41
PA
RE
NT
AS
AT
30
JU
NE
20
13
FAIR
VA
LUE
T
HR
OU
GH
P
RO
FIT
A
ND
LO
SS $M
HE
LD T
O
MA
TU
RIT
Y$
M
LOA
NS
AN
D
RE
CE
IVA
BLE
S$
M
AV
AIL
AB
LE
FOR
SA
LE $M
DE
SIG
NA
TE
D
IN A
HE
DG
ING
R
EL
AT
ION
SHIP $M
OT
HE
R F
INA
NC
IAL
LIA
BIL
ITIE
S A
T
AM
OR
TIS
ED
CO
ST $M
Ass
ets
Cas
h a
nd
cal
l de
po
sits
-
-
69
-
-
-
Oth
er
rece
ivab
les
-
-
32
-
-
-
Inte
rco
mp
any
rece
ivab
les
-
-
211
-
-
-
Inve
stm
en
ts a
nd
ad
van
ces
-
-
1,7
00
-
-
-
De
riva
tive
fin
anc
ial i
nst
rum
en
ts -
-
-
-
7
-
-
-
2,0
12
-
7
-
Liab
ilit
ies
Acc
rual
s -
-
-
-
-
3
3
De
riva
tive
fin
anc
ial i
nst
rum
en
ts -
-
-
-
1
06
-
De
bt
-
-
-
-
-
1,6
97
CFH
se
cu
riti
es
-
-
-
-
-
30
-
-
-
-
10
6
1,7
60
PA
RE
NT
AS
AT
30
JU
NE
20
12
FAIR
VA
LUE
T
HR
OU
GH
P
RO
FIT
A
ND
LO
SS $M
HE
LD T
O
MA
TU
RIT
Y$
M
LOA
NS
AN
D
RE
CE
IVA
BLE
S$
M
AV
AIL
AB
LE
FOR
SA
LE $M
DE
SIG
NA
TE
D
IN A
HE
DG
ING
R
EL
AT
ION
SHIP $M
OT
HE
R F
INA
NC
IAL
LIA
BIL
ITIE
S A
T
AM
OR
TIS
ED
CO
ST $M
Ass
ets
Cas
h a
nd
cal
l de
po
sits
-
-
61
-
-
-
Oth
er
rece
ivab
les
-
-
18
-
-
-
Inte
rco
mp
any
rece
ivab
les
-
-
22
-
-
-
Inve
stm
en
ts a
nd
ad
van
ces
-
-
1,7
00
-
-
-
De
riva
tive
fin
anc
ial i
nst
rum
en
ts -
-
-
-
2
-
-
-
1,8
01
-
2
-
Liab
ilit
ies
Acc
rual
s -
-
-
-
-
3
1
De
riva
tive
fin
anc
ial i
nst
rum
en
ts -
-
-
-
1
10
-
De
bt
-
-
-
-
-
1,6
09
CFH
se
cu
riti
es
-
-
-
-
-
3
-
-
-
-
110
1
,64
3
No
te 2
1 –
Fin
anci
al r
isk
man
agem
ent
con
tinu
ed
Th
ere
are
no
mat
ters
of
litig
atio
n g
ivin
g r
ise
to a
co
nti
ng
ent
liab
ility
or
asse
t.
No
te 2
2 –
Co
nti
ng
enci
es
Div
iden
ds
On
25
Au
gu
st 2
013
, Ch
oru
s d
ecla
red
a d
ivid
end
in r
esp
ect
of
the
year
en
ded
30
Ju
ne
20
13. T
he
tota
l am
ou
nt
of
the
div
iden
d is
$6
0 m
illio
n, w
hic
h r
epre
sen
ts a
fu
lly im
pu
ted
div
iden
d
of
15.5
cen
ts p
er s
har
e.
CFH
sec
uri
ties
an
d C
row
n f
un
din
g
Ch
oru
s is
sued
a c
all n
oti
ce o
n 5
Ju
ly 2
013
to
CFH
wit
h a
n a
gg
reg
ate
issu
e p
rice
of
$2
5 m
illio
n w
hic
h is
allo
cate
d a
s fo
llow
s: C
FH d
ebt
secu
riti
es $
4 m
illio
n, C
FH e
qu
ity
secu
riti
es $
2 m
illio
n a
nd
Cro
wn
fun
din
g $
19 m
illio
n. $
15 m
illio
n o
f th
is f
un
din
g h
as b
een
acc
rued
in t
he
finan
cial
sta
tem
ents
at
30
Ju
ne
20
13 r
epre
sen
tin
g t
he
po
rtio
n
of
the
call
no
tice
wh
ere
use
r ac
cep
tan
ce t
esti
ng
was
co
mp
lete
.
New
deb
t ar
ran
gem
ent
On
2 A
ug
ust
20
13 C
ho
rus
ente
red
into
a n
ew $
25
0 m
illio
n b
ank
faci
lity
wit
h a
20
19 m
atu
rity
dat
e. T
he
pro
ceed
s w
ere
use
d t
o r
edu
ce
dra
win
gs
un
der
exi
stin
g s
ynd
icat
ed b
ank
faci
litie
s w
hic
h m
atu
re
in N
ove
mb
er 2
015
an
d N
ove
mb
er 2
017
res
pec
tive
ly.
No
te 2
3 –
Po
st b
alan
ce d
ate
even
ts
Cer
tain
new
sta
nd
ard
s, a
men
dm
ents
an
d in
terp
reta
tio
ns
hav
e b
een
pu
blis
hed
th
at h
ave
no
t b
een
ear
ly a
do
pte
d, a
nd
wh
ich
are
rel
evan
t
to C
ho
rus
are
liste
d b
elo
w. T
he
finan
cial
sta
tem
ents
imp
act
of
ado
pti
on
of
thes
e st
and
ard
s h
as n
ot
yet
bee
n a
nal
ysed
bu
t is
no
t
exp
ecte
d t
o b
e m
ater
ial.
NZ
IFR
S 9
(20
10) F
inan
cial
inst
rum
ents
Eff
ecti
ve f
or
per
iod
s b
egin
nin
g o
n o
r af
ter
1 Ja
nu
ary
20
15.
Th
e st
and
ard
ad
ds
req
uir
emen
ts r
elat
ed t
o t
he
clas
sific
atio
n,
mea
sure
men
t an
d d
erec
og
nit
ion
of
finan
cial
ass
ets
and
liab
iliti
es.
NZ
IFR
S 10
Co
nso
lidat
ed fi
nan
cial
sta
tem
ents
Eff
ecti
ve f
or
per
iod
s b
egin
nin
g o
n o
r af
ter
1 Ja
nu
ary
20
13.
Th
e st
and
ard
intr
od
uce
s n
ew p
rin
cip
les
in id
enti
fyin
g t
he
con
cep
t
of
con
tro
l as
the
det
erm
inin
g f
acto
r in
wh
eth
er a
n e
nti
ty s
ho
uld
be
incl
ud
ed w
ith
in t
he
con
solid
ated
fin
anci
al s
tate
men
ts o
f th
e
par
ent
com
pan
y an
d p
rovi
des
ad
dit
ion
al g
uid
ance
to
ass
ist
in t
he
det
erm
inat
ion
of
con
tro
l wh
ere
this
is d
iffic
ult
to
ass
ess.
NZ
IFR
S 11
Jo
int
arra
ng
emen
ts
Eff
ecti
ve f
or
per
iod
s b
egin
nin
g o
n o
r af
ter
1 Ja
nu
ary
20
13.
Th
e st
and
ard
ou
tlin
es t
he
acco
un
tin
g b
y en
titi
es t
hat
join
tly
con
tro
l
an a
rran
gem
ent.
Jo
int
con
tro
l in
volv
es t
he
con
trac
tual
ag
reed
shar
ing
of
con
tro
l an
d a
rran
gem
ents
su
bje
ct t
o jo
int
con
tro
l are
clas
sifie
d a
s ei
ther
a jo
int
ven
ture
(rep
rese
nti
ng
a s
har
e o
f n
et a
sset
s
and
eq
uit
y ac
cou
nte
d) o
r a
join
t o
per
atio
n (r
epre
sen
tin
g r
igh
ts
to a
sset
s an
d o
blig
atio
ns
for
liab
iliti
es, a
cco
un
ted
fo
r u
nd
er
pro
po
rtio
nal
co
nso
lidat
ion
).
NZ
IFR
S 12
Dis
clo
sure
of
inte
rest
in o
ther
en
titi
es
Eff
ecti
ve f
or
per
iod
s b
egin
nin
g o
n o
r af
ter
1 Ja
nu
ary
20
13.
Th
e st
and
ard
ap
plie
s to
en
titi
es t
hat
hav
e an
inte
rest
in s
ub
sid
iari
es,
join
t ar
ran
gem
ents
, ass
oci
ates
or
un
con
solid
ated
str
uct
ure
d e
nti
ties
.
It e
stab
lish
es d
iscl
osu
re o
bje
ctiv
es a
nd
sp
ecifi
es m
inim
um
dis
clo
sure
s
that
an
en
tity
mu
st p
rovi
de
to m
eet
tho
se o
bje
ctiv
es.
NZ
IFR
S 13
Fai
r va
lue
mea
sure
men
t
Eff
ecti
ve f
or
per
iod
s b
egin
nin
g o
n o
r af
ter
1 Ja
nu
ary
20
13.
Th
e st
and
ard
est
ablis
hes
a s
ing
le f
ram
ewo
rk f
or
mea
suri
ng
fai
r va
lue
wh
ere
that
is r
equ
ired
by
oth
er s
tan
dar
ds
and
is a
pp
licab
le t
o b
oth
finan
cial
an
d n
on
-fin
anci
al it
ems.
Th
e co
mp
any
is c
urr
entl
y re
view
ing
its
met
ho
do
log
ies
in d
eter
min
ing
fai
r va
lues
an
d it
s im
pac
t o
n t
he
finan
cial
sta
tem
ents
.
NZ
IAS
27
Sep
arat
e fi
nan
cial
sta
tem
ents
Eff
ecti
ve f
or
per
iod
s b
egin
nin
g o
n o
r af
ter
1 Ja
nu
ary
20
13.
Th
ese
amen
dm
ents
rem
ove
th
e ac
cou
nti
ng
an
d d
iscl
osu
re
req
uir
emen
ts f
or
con
solid
ated
fin
anci
al s
tate
men
ts a
s a
resu
lt o
f th
e
issu
e o
f N
Z IF
RS
10 C
on
solid
ated
fin
anci
al s
tate
men
ts a
nd
NZ
IFR
S 12
Dis
clo
sure
of
inte
rest
s in
oth
er e
nti
ties
.
No
te 2
4 –
New
sta
nd
ard
s, a
men
dm
ents
an
d in
terp
reta
tio
ns
to e
xist
ing
sta
nd
ard
s
hav
e b
een
pu
blis
hed
bu
t n
ot
yet
ado
pte
d
42
GOVERNANCE AT CHORUSChorus’ Board and management are committed to ensuring that our people act ethically,
with integrity and in accordance with our policies and values.
FrameworkChorus is incorporated in New Zealand and listed on the New Zealand and Australian
stock exchanges.
The governance practices and policies we have adopted therefore reflect, and are consistent
with, the:
• NZXListingRulesandCorporateGovernanceBestPracticeCode;
• NewZealandSecuritiesCommission’s(nowFinancialMarketsAuthority(FMA))
‘Corporate Governance in New Zealand Principles and Guidelines’; and
• ASXListingRulesandtheASXCorporateGovernanceCouncil’sPrinciples
and Recommendations.
The Board regularly reviews and assesses Chorus’ governance policies, processes and
practices to identify opportunities for enhancement and to ensure they reflect Chorus’
operations and culture.
Compliance with corporate governance codes, principles and recommendations
Chorus considers that during the reporting period:
• thecorporategovernanceprinciplesadoptedandfollowedbyitdidnotmateriallydiffer
from NZX’s Corporate Governance Best Practice Code; and
• itfollowedeachoftherecommendationssetbytheASXCorporateGovernanceCouncil.
Managing risk
Chorus has a Managing Risk Policy that mandates one framework for the management
of risk in Chorus to:
• ensuretheBoardsetstheriskappetiteandreviewsprincipalrisksannually;
• integrateriskmanagementinlinewiththeBoard’sriskappetiteintostructures,policies,
processes and procedures; and
• deliverregularprincipalriskreviewsandmonitoring.
A copy of Chorus’ Managing Risk Policy is available at http://www.chorus.co.nz/governance.
As part of its role, the Audit and Risk Management Committee (ARMC) is responsible for
assisting the Board to ensure that a risk management framework has been established and
for monitoring compliance with that framework. The ARMC and the Board regularly receive
reports on risk management and the effectiveness of Chorus’ management of its material
business risks.
Chorus requires its CEO and CFO to make an annual declaration in relation to Chorus’
financial statements relating to the matters set out in s295A of the Australian Corporations
Act 2001, namely that in their opinion:
• thefinancialrecordsofChorushavebeenproperlymaintained;
• thefinancialstatementsofChorusandaccompanyingnotessetoutinthisannualreport
comply with generally accepted accounting practice in New Zealand and International
Financial Reporting Standards; and
• thefinancialstatementsofChorusandaccompanyingnotessetoutinthisannualreport
give a true and fair view of the financial position and performance of Chorus.
The CEO and CFO also provide the Board with an assurance that the above declaration
is founded on a sound system of risk management and internal control and that system
is operating effectively in all material respects in relation to financial reporting risks.
The non-audit related fees paid to the auditor during the financial period (as detailed in Note 8
to the Financial Statements) were permitted non-audit services under Chorus’ External Auditor
Independence Policy.
Code of ethics
Chorus expects its directors and employees to conduct themselves in accordance with the
highest ethical standards. Chorus has Codes of Ethics for its directors and employees that set
the expected standards for their professional conduct. These codes are intended to facilitate
decisions that are consistent with Chorus’ values, business goals and legal and policy
obligations. The director Code of Ethics is available at www.chorus.co.nz/governance.
Chorus has communicated the Codes of Ethics to directors and employees and has provided
training to its employees. Chorus encourages its people to report any unethical behaviour
through a compliance function that investigates any such reports.
A whistle blowing policy allows for confidential reporting of serious misconduct or
wrongdoing and a fraud policy for the reporting of suspected fraud or corruption.
Chorus has not received any reports of serious instances of unethical behaviour during
the financial period.
Role of the Board and delegation of authorityThe Board is appointed by Chorus’ shareholders and has statutory responsibility for the
business and affairs of Chorus. The Board has overall responsibility for the strategy, culture,
governance and performance of Chorus working with, and through, the CEO.
As described in the Board Charter, to allow for the effective day-to-day management and
leadership of Chorus, the Board has delegated its authority, in part, to the CEO. The CEO
may, in turn, sub-delegate authority to other Chorus people. Formal policies and procedures
govern the parameters and operation of these delegations.
The Board has also appointed three standing Board Committees to assist it in carrying out
its responsibilities and has delegated some of its responsibilities, powers and authorities
to those Board Committees. Those Committees are described below. The Board may also
establish other ad-hoc or standing committees and delegate specific responsibilities, powers
and authorities to those committees and to particular directors.
The Board and Board Committee Charters and other key governance documents are available
on Chorus’ website at www.chorus.co.nz/governance. The annex to the Board Charter
contains a diagram that illustrates the key governance documents and the roles and
responsibilities of the Board and Board Committees.
Board membershipThe Board seeks to ensure that through its skills mix and composition it is positioned to add
value to Chorus, as outlined in the Board Charter.
The Board currently has seven directors (six independent directors and an executive director)
with a broad range of managerial, financial, accounting and industry experience. See page 3
for more information on the skills and experience of the directors.
The independence status of each director is noted in their biographies on page 3. For a
director to be considered independent, the Board must affirmatively determine that the
director does not have a disqualifying relationship (other than solely as a consequence of
being a director). The disqualifying relationships are set out in the Board Charter. While the
Board has not set financial materiality thresholds for determining independence, it considers
the materiality basis of all relationships having regard to the materiality to Chorus, the director
THE CHORUS BOARD
and the relevant person or organisation (eg customer, supplier or adviser) with which the
director is related. Materiality is assessed in the context of each relationship and from the
perspective of both parties to that relationship.
Board CommitteesEach standing Board Committee has a Board approved Charter and a chairman. The Board
Committees assist the Board by focusing on specific responsibilities in greater detail than
is possible for the Board as a whole.
Audit and Risk Management Committee
The ARMC assists the Board in ensuring oversight of all matters relating to risk management,
financial management and controls and the financial accounting, audit and reporting of Chorus.
All Committee members are non-executive directors. For information on Committee
members’ qualifications, see page 3.
Members: Anne Urlwin (chairman), Jon Hartley and Sue Sheldon.
Human Resources and Compensation Committee
The Human Resources and Compensation Committee (HRCC) assists the Board in overseeing
people policies and strategies, including:
• Chorus’remunerationframeworks;and
• reviewingcandidatesfor,andtheperformanceandremunerationof,theCEO.
Members: Clayton Wakefield (chairman), Prue Flacks and Keith Turner.
Nominations and Corporate Governance Committee
The Nominations and Corporate Governance Committee (NCGC) assists the Board
in promoting and overseeing continuous improvement of good corporate governance.
The NCGC’s role includes identifying and recommending suitable candidates for nomination
to be members of the Board and Board Committees, and establishing, developing and
overseeing a process for the Board to annually review and evaluate the performance
of the Board, its Committees and individual directors.
Members: Sue Sheldon (chairman), Prue Flacks and Jon Hartley.
Contents
Governance at Chorus 42
The Chorus Board 42
Diversity at Chorus 43
Governance & DisclosuresRemuneration at Chorus 44
Disclosures 45
Directory 48
43
Director restrictionsThe Chorus Constitution provides that no person who is an ‘associated person’ of a person
that provides telecommunications services in New Zealand (other than the services provided
by Chorus) shall be appointed or hold office as a director. NZX has granted Chorus a waiver
to allow the Chorus Constitution to include this restriction on the persons who may hold
office as director.
Board and Board Committee meeting attendanceThe table below sets out attendance at the Board and Board Committee meetings in the year
ended 30 June 2013.
BOARD MEETINGS
SPECIAL BOARD
MEETINGS ARMC HRCC NCGC
Total number of meetings held 9 5 5 7 2
Sue Sheldon (chairman) 9 5 5 7* 2
Anne Urlwin 9 5 5 5* -
Clayton Wakefield 9 5 1* 7 -
Jon Hartley 9 3 5 5* 2
Keith Turner 9 3 2* 7 -
Mark Ratcliffe 9 5 3^ 6^ 1^
Prue Flacks 9 5 4* 7 2
* Attended meetings as an observer and not as a Committee member.
^ Mark Ratcliffe is not a member of any Board Committees but attends all Board Committee meetings as CEO and as an observer, and may be asked to leave at any time.
Trading in Chorus sharesAll non-executive directors are encouraged to hold Chorus ordinary shares (Chorus Shares).
Directors are subject to limitations on their ability to deal in Chorus Shares and other relevant
Chorus securities (Chorus Securities) by Chorus’ Insider Trading Policy, the New Zealand
Securities Market Act 1988 and the Australian Corporations Act 2001. These limitations
prohibit directors from dealing in Chorus Securities while in possession of inside information.
As a matter of policy, Chorus also requires that directors, prior to dealing in Chorus Securities,
notify and obtain consent from the chairman and that trading may only occur in accordance
with Chorus’ Insider Trading Policy.
All changes in any interests in Chorus Securities held by directors are required to be reported
to the Board, the NZX and the ASX.
Director induction and educationThe Board seeks to ensure new directors are appropriately introduced to management and
the Chorus business, that all directors are acquainted with relevant industry knowledge and
economics and that they receive a copy of the Board and Board Committee Charters and the
key governance documents.
It is expected that all directors continuously educate themselves to ensure they have
appropriate expertise to effectively perform their duties.
In addition, visits to Chorus operations, briefings from key management, industry experts and
key advisers to Chorus, together with educational and stakeholder visits, briefings or meetings
are arranged for the Board.
Independent adviceA director may, with the chairman’s prior approval, take independent professional advice
(including legal advice). A director may request the attendance of such an adviser at a Board
or Board Committee meeting where this is necessary to fulfil their role and responsibilities
for Chorus. The costs of any such adviser is paid for by Chorus.
Review and evaluation of Board performanceThe chairman meets regularly with directors to discuss individual performance.
The Board has carried out, in the reporting period, an annual review of the Board’s
performance, that of individual directors and Board Committees utilising the Board evaluation
process developed and overseen by the NCGC.
Market disclosuresChorus is committed to providing timely, orderly, consistent and credible information
consistent with legal and regulatory requirements, to enable orderly behaviour in the market
and to promote investor confidence. Chorus believes it is imperative that disclosure be evenly
balanced during good times and bad and that all parties in the investment community have
fair access to this information.
DIVERSITY AT CHORUSDiversity and inclusiveness at ChorusChorus has a Board approved Diversity and Inclusiveness Policy. Chorus believes that
having a team of individuals working together who all have different experiences, views
and self-reflections makes it stronger and better as an organisation. Chorus defines diversity
as the characteristics that make one individual similar to or different from another. It defines
inclusiveness as the recognition that diverse backgrounds, experiences and perspectives lead
to a better experience of work for its people, makes teams stronger, leads to greater creativity
and performance, contributes to a more meaningful relationship with its retail service provider
customers and stakeholders, and ultimately leads to increased value to shareholders.
Valuing diversity is more than a moral imperative; it is also sensible business practice.
The focus of the policy is to leverage differences as a competitive advantage through
its attraction and development practices, develop inclusiveness as a core capability for
its people leaders and as a channel to its people, and to continue to recognise individual
contribution and performance.
The HRCC recommends measurable objectives to the Board that are set and assessed annually.
Chorus is a funder of DiverseNZ Inc. DiverseNZ Inc is a collaboration project with support
from the New Zealand public and private sectors to harness the economic benefit, business
gain and GDP uplift that results from diverse leadership and diversity of thought.
22%
25%9%
3%
16%11%
11%
3%
OR
GA
NISE
RSA
DV
ISE
RS
CONTROLLERS
EXPLORERS Working preferencesChorus uses a tool to assess the working
preferences of its people. This promotes
diversity of thought, working style and
contribution across teams, and understanding
of how to leverage differences.
The graphic here shows Chorus has
the full spectrum of working preferences
across the distribution. This fully validated
self-assessment tool is a Team Management
Index* of the 507 contributors who had
completed the workshops at the time
of preparing this data.
Diversity metrics as at 30 June 2013The Board has set the following measurable objectives for achieving greater diversity at Chorus
MEASURE DESCRIPTION ACTUAL AS AT 30 JUNE 2013 ACTUAL AS AT 30 JUNE 2012 BENCHMARK
Age profiles Median age 41.4 years 42.7 years 42 years. Statistics New Zealand
National Labour Force Projections
updated August 2012
Employee
satisfaction
Response to the diversity question
“The work environment is very open
and accepting of individual differences”
84% 83% 83% Aon Hewitt Best Employer
Ethnicity by role Organisational groupings by ethnicity Not currently available Not available People leader population distribution
= total company population
distribution
Flexible working
arrangements
Percentage of the population utilising
flexible working arrangements
4.3% working part-time hours 4.5% working part-time hours >4% working part-time hours
Gender by role Organisational groupings by gender 38% 62% all
33% 67% people leaders
40% 60% executive team
43% 57% Board
50% 50% non-executive Board
39% 61% all
34% 66% people leaders
40% 60% executive team
43% 57% Board
50% 50% non-executive Board
People leader population distribution
= total company population
distribution
Rookie ratio The previous year’s intake by age,
ethnicity and genderAverage age 37.2 years. Gender 41% 59%
Ethnicity not available
Average age 37.8 years. Gender 42% 58%
Ethnicity not available
No measure – for information
Internal hire rate The previous year’s appointments
identifying internal vs external hire rate
39% of all appointments have been internal.
61% of roles in layers 1-3 were recruited internally.
59% of all appointments have been internal.
86% of roles in layers 1-3 were recruited internally.
66% of roles in layers 1-3
Based on the annual review of the effectiveness of Chorus’ Diversity and Inclusiveness Policy
and Chorus’ measurable diversity objectives, the Board considers that overall Chorus is making
good progress towards achieving its diversity and inclusiveness objectives and has performed
well against the policy generally.
Chorus’ Diversity and Inclusiveness Policy can be found at www.chorus.co.nz/governance.
Chorus has embedded diversity and inclusiveness into its culture through
its values, communications, leadership and diversity dialogues.
* The distribution only reflects the Major Role preference of the 507 contributors – as opposed to a representation of their preference across all factors at all levels. For more information go to www.tms.co.nz
44
REMUNERATION AT CHORUSDirectors’ fees The total remuneration available to non-executive directors in the year ended
30 June 2013 was fixed at Chorus’ 2012 AGM at $980,000.
During the year ended 30 June 2013, the total remuneration earned by the directors
of Chorus (in their capacity as such) was as follows:
DIRECTOR TOTAL FEES $
Sue Sheldon (chairman) 208,000
Anne Urlwin 135,000
Clayton Wakefield 125,000
Jon Hartley 127,500
Keith Turner 145,500
Mark Ratcliffe -
Prue Flacks 122,500
Total 863,500
Notes:
(i) The figures shown are gross amounts and exclude GST where applicable.
(ii) Directors are entitled to be paid or reimbursed for reasonable travelling, accommodation
and other expenses incurred in relation to management of Chorus without requiring
authorisation of shareholders. Any such expenses are not included in the table above.
(iii) All non-executive directors receive a base fee.
(iv) Board Committee fees are not paid to the chairman of the Board.
(v) A fee for being a member of a Board Committee or the UFB Steering Committee
is paid in addition to the base fees.
(vi) Directors (other than the CEO) do not receive any other benefits.
(vii) Mark Ratcliffe, as CEO, does not receive any remuneration in his capacity as a director
of Chorus. The remuneration of the CEO is summarised below.
The HRCC reviews the remuneration of directors based on criteria developed
by that Committee.
Based on advice from independent consultants:
• fortheyearended30June2013theBoardused;and
• from1July2013theBoardhasset,
the Board fee structure below:
ANNUAL FEE STRUCTURE
YEAR TO 30 JUNE 2013
($)
ANNUAL FEE STRUCTURE
FROM 1 JULY 2013
($)
BASE FEES:
Chairman of the Board 208,000 214,000
Non-executive director 104,000 107,000
BOARD COMMITTEE FEES:
Audit and Risk Management Committee
Chairman 31,000 32,000
Member 15,500 16,000
Human Resources and Compensation Committee
Chairman 21,000 21,500
Member 10,500 11,000
Nominations and Corporate Governance Committee
Chairman 15,500 16,000
Member 8,000 8,500
UFB Steering Committee
Chairman Not applicable Not applicable
Member 31,000 32,000
Notes:
(i) With the exception of the chairman of the Board, directors receive a fee for each Board
Committee of which the director is the chairman or a member.
(ii) Directors may be paid an additional daily rate of $2,400 for additional work as determined
and approved by the chairman of the Board and where the payment is within the total fee
pool available for the relevant financial year based on advice of the General Counsel &
Company Secretary. No such fees were paid in the year ended 30 June 2013.
No director receives compensation in share options. No director (except the CEO) participates
in a bonus or profit-sharing plan.
No superannuation was paid to, or other scheme for retirement benefits exist for, any director
(except for the CEO) in the year ended 30 June 2013.
CEO remuneration
Remuneration package for the financial period
Mark Ratcliffe’s remuneration as CEO consists of a mixture of fixed remuneration, short term
incentives (STI) and long term incentives (LTI). The actual remuneration paid to Mark Ratcliffe
in the financial period is as follows:
Fixed remuneration (1 July 2012 - 30 June 2013) $782,971.16 (gross)
Short term incentive for the period (1 July 2012 - 30 June 2013) $661,000.00 (gross)
Long term incentive and non-taxable accommodation payments $358,508.10
Total remuneration received $1,802,479.26 (gross)
In addition, in the year to 30 June 2013, payments totalling $45,183.88 with regard
to KiwiSaver and medical insurance were made on behalf of Mark Ratcliffe.
The following LTI payments were made, or liabilities are due to be calculated and paid,
in the following manner. They are all cash payments:
GRANT YEAR
VESTING YEAR DETAIL POTENTIAL VALUE
2011 2012 Following a cash LTI payment of $200,000 (gross)
in December 2012, Mark Ratcliffe purchased shares
in Chorus, which he agreed to retain for the term of
his employment.
n/a (payment made/
shares purchased)
2011 2014 A cash LTI grant was made by Telecom in September
2011. Chorus carried across a liability for the value
of $250,000 (gross). The cash value was converted
into Equity Equivalent Units (EEUs) based on dividing
the target value by the volume weighted average
price (VWAP) of Chorus Shares for the first 20 days
of trading, following demerger. A number of post-
allocation performance hurdles have been introduced
by the Board for this grant. Performance against these
measures is considered annually but for the purposes
of the grant it is the collated three year performance
that determines the vesting multiplier on the grant.
A maximum of 82,281
EEUs converted back
into a cash value at
vesting based on share
price performance at
that time.
2012 2015 A cash LTI grant was made by Chorus in September
2012 for the value of $349,779 (gross). The cash value
was converted into EEUs based on dividing
the target value by the VWAP of Chorus Shares for
a defined 20 day trading period. A number of post-
allocation performance hurdles have been introduced
by the Board for this grant. Performance against these
measures is considered annually but for the purposes
of the grant it is the collated three year performance
that determines the vesting multiplier on the grant.
A maximum of 104,853
EEUs converted back
into a cash value at
vesting based on share
price performance at
that time.
The CEO remuneration package is reviewed annually by the HRCC and Board, after seeking
advice from external remuneration specialists and reviewing CEO and Chorus’ performance.
In future years, the target values may be revised as a result of future adjustments to the CEO
remuneration package and components.
Chorus remuneration modelThe Board reviews the remuneration model for Chorus and has established principles
of alignment to shareholder outcomes, simplicity, clarity and fairness, and remuneration
outcomes which are based on performance.
All Chorus employees have a fixed remuneration and STI component in their remuneration
packages. A limited number of employees also have an LTI component.
Fixed remuneration
The fixed remuneration model is informed and adjusted each year based on data from
multiple independent remuneration specialists. Employees’ fixed remuneration is based
on a matrix of their own performances and their current remuneration position in the
market range.
STI plan
STI values are calculated as a percentage of fixed remuneration and determined based
on the complexity of the roles. Employees’ STI payments are determined following review
of company performance and individual performance and may be paid out at a multiplier
of 0x to 2.8x. This model is focussed on articulating performance goals, driving for outcomes,
differentiating high performance and rewarding delivery.
LTI plan
Chorus operates an LTI plan for its executives and an identified number of senior leaders.
The Board has reviewed this model, on the basis of independent advice, and will be
introducing a new model in 2013. This will involve the incorporation of a new subsidiary
to act as trustee of the scheme.
Managing performanceChorus’ performance management process is based on all Chorus people having
performance and development plans for the year, which are regularly reviewed with their
people leaders. The performance plan is developed initially by the individual after participating
in ‘Line of Sight’ sessions, which enable them to link Chorus’ strategy with their day to day
work and focus areas. The performance plan includes both outcome based objectives and
behavioural measures, along with a development plan. End of year performance reviews are
undertaken for all Chorus people. In these the people leader for the individual seeks additional
feedback and participates in a peer review and moderation process, resulting in an overall
rating and remuneration recommendation that impacts the individual’s total reward (fixed
remuneration and target STI).
This same process has been undertaken for the Chorus executive team, with the CEO making
recommendations to the HRCC for the executive team and the chairman of the HRCC leading
the performance review of the CEO and making recommendations to the Board. This process
is consistent with that set out in the HRCC Charter and allows the Board to provide input into
these individuals’ performance outcomes, total reward approvals (fixed remuneration, target
STI and LTI) and development plans.
45
Employee remuneration rangeThe table alongside shows the number of employees and former employees who, in their
capacity as employees, received remuneration and other benefits in excess of $100,000
during the year to 30 June 2013.
Employees can choose to receive telephone concessions, including contributions
towards telephone line rental, national and international phone calls and online services.
In addition, certain employees receive contributions towards membership of the Marram
Trust (a community healthcare and holiday accommodation provider), contributions to the
Government Superannuation Fund (a legacy benefit provided to a small number of employees)
and, if the individual is a KiwiSaver member, a contribution of up to 3% of gross earnings
towards that individual’s KiwiSaver scheme. These amounts are not included in these
remuneration figures.
Any benefits received by employees that do not have an attributable value are
not included.
REMUNERATION RANGE $ (GROSS)
NUMBER OF EMPLOYEES
IN THE YEAR ENDED 30 JUNE 2013
(BASED ON ACTUAL PAYMENTS)
1,780,001-1,790,000 1
820,001-830,000 1
480,001-490,000 1
440,001-450,000 1
420,001-430,000 1
410,001-420,000 1
400,001-410,000 1
390,001-400,000 1
330,001-340,000 1
320,001-330,000 1
310,001-320,000 1
290,001-300,000 3
270,001-280,000 2
250,001-260,000 5
240,001-250,000 3
REMUNERATION RANGE $ (GROSS)
NUMBER OF EMPLOYEES
IN THE YEAR ENDED 30 JUNE 2013
(BASED ON ACTUAL PAYMENTS)
230,001-240,000 2
220,001-230,000 10
210,001-220,000 4
200,001-210,000 8
190,001-200,000 9
180,001-190,000 6
170,001-180,000 3
160,001-170,000 12
150,001-160,000 14
140,001-150,000 26
130,001-140,000 23
120,001-130,000 32
110,001-120,000 31
100,000-110,000 44
DISCLOSURESDirectors
Directors during the year ended 30 June 2013
Current directors are listed on page 3. No directors resigned during the year ended
30 June 2013.
Indemnities and insurance
As permitted by its Constitution, Chorus has entered into deeds of indemnity with each
of the directors for potential liabilities or costs they may incur for acts or omissions in their
capacity as directors.
Deeds of indemnity have also been given to certain senior staff for potential liabilities and
costs they may incur for acts or omissions in their capacity as employees of Chorus,
directors of Chorus subsidiaries or as directors of non-Chorus companies in which Chorus
holds interests.
Chorus has a directors’ and officers’ liability insurance policy in place. This provides insurance
for the liabilities of the directors and employees of Chorus for acts or omissions in their
capacity as directors or employees. It does not cover dishonest, fraudulent, malicious
or wilful acts or omissions.
Director interests in Chorus Shares
As at 30 June 2013, directors had a relevant interest (as defined in the Securities Markets Act
1988) in Chorus Shares as follows:
AS 30 JUNE 2013 TRANSACTIONS DURING THE REPORTING PERIOD
DIRECTOR SHARES INTERESTNUMBER OF SHARES PURCHASED (SOLD) CONSIDERATION DATE OF TRANSACTION
Sue Sheldon 15,000 Registered holder as trustee of family trust 15,000 $51,767.45 20 September 2012
Clayton Wakefield 19,647 Beneficial interest 10,000 $34,900.00 10 September 2012
7,000 $20,711.95 14 March 2013
643* $1,768.25 12 April 2013
Keith Turner 5,686 Legal and beneficial interest 186* $511.50 12 April 2013
Anne Urlwin 10,000 Director and shareholder of registered holder 10,000 $34,000.00 19 September 2012
Mark Ratcliffe 100,778 Beneficial interest 84,000 $248,747.40 12, 13 and 15 March 2013
Prue Flacks 10,118 Legal and beneficial interest 2,900 $10,004.84 6 September 2012
Trustee of family trusts 5,240 $18,168.30 6 September 2012
Legal and beneficial interest 98* $269.50 12 April 2013
Legal and beneficial interest 1,880 $4,888.00 31 May 2013
Total 161,229
* Purchased under Chorus’ Dividend Reinvestment Plan
As at 30 June 2013, directors had a relevant interest representing approximately 0.041%
of the Chorus Shares outstanding.
Interests Register
Directors disclosed, pursuant to section 140 of the Companies Act 1993, a change in,
or cessation of, interest in the following entities during the year ended 30 June 2013:
Sue Sheldon: Changes in interests: Paymark Ltd (chairman), Reserve Bank of New Zealand
(deputy chairman), Global Women Trust (trustee). Cessation of interests: Nil.
Anne Urlwin: Changes in interests: Ngai Tahu Te Runanga Audit & Risk Committee
(independent chairman), OnePath Insurance Services (NZ) Ltd (director), OnePath Life (NZ) Ltd
(director), Steel & Tube Holdings Ltd (director), Naylor Love Properties Ltd (director)*. Cessation
of interests: Lakes Environmental Ltd (chairman), SR 2 Ltd (director), SR 3 Ltd (director), SR 4
Ltd (director), SR 5 Ltd (director), SR 6 Ltd (director), SR 7 Ltd (director),
SR 8 Ltd (director), SR 9 Ltd (director), SR 10 Ltd (director), SR 11 Ltd (director).
Clayton Wakefield: Changes in interests: Nil. Cessation of Interests: Endace Ltd (director).
Jon Hartley: Changes in interests: Mission Foods Ltd (director). Cessation of interests: Mighty
River Power Ltd (director).
Keith Turner: Changes in interests: Nil. Cessation of interests: Waitaki Wind Ltd (director)*.
Mark Ratcliffe: Changes in interests: Telecom Corporation of New Zealand Ltd (shareholder).
Cessation of interests: Nil.
Prue Flacks: Changes in interests: Mighty River Power LTI Ltd (director). Cessation of interests:
BNZ Life Insurance Ltd (chairman)^, BNZ Insurance Services Ltd (chairman)^.
* Disclosed after 30 June 2013
^ Prue Flacks ceased to be a director of these companies after 30 June 2013.
Shares and shareholders
Stock exchange listings and American Depositary Receipts
Chorus Shares are quoted on the NZX Main Board and on the ASX. Chorus trades under
the ticker ‘CNU’.
American Depositary Shares (ADSs), each representing five ordinary shares and evidenced by
American Depositary Receipts (ADRs), are not listed but are traded on the over-the-counter
(OTC) market in the United States under the ticker symbol ‘CHRYY’. Chorus’ depositary is the
Bank of New York Mellon.
NZX waivers
A summary of all waivers granted and published by NZX within or relied upon by Chorus
in the 12 month period ending on the date two months before the date of this annual report,
is available on Chorus’ website at www.chorus.co.nz. This summary will be published for
12 months following publication of this annual report.
ASX disclosures
Chorus has been admitted to the official list of the ASX. As a result, Chorus is required
to make the following disclosures:
• Chorus’placeofincorporationisNewZealand.
• ChorusisnotsubjecttoChapters6,6A,6Band6CoftheAustralianCorporations
Act 2001 dealing with the acquisition of shares (including substantial shareholdings
and takeovers).
• Chorus’Constitutioncontainslimitationsontheacquisitionofsecurities,
as disclosed below.
• Chorususedthecashandassetsinaformreadilyconvertibletocashthatithad
at the time of admission in a way consistent with its business objectives as set out
in the scheme booklet.
Registration as a foreign company
Chorus has registered with the Australian Securities and Investments Commission (ASIC)
as a foreign company. Chorus has been issued an Australian Registered Body Number
(ARBN) of 152 485 848.
46
Quoted securities
As at 30 June 2013 there were 389,299,049 Chorus Shares on issue.
Each Chorus Share confers on its holder the right to attend and vote at a meeting of Chorus,
including the right to cast one vote on a poll on any resolution.
Non-standard designation
NZX has attached a ‘non-standard’ designation to the listing of the Chorus Shares owing
to the ownership restrictions in Chorus’ Constitution, as described below.
Chorus’ constitutional ownership restrictions
Chorus’ Constitution includes ownership restrictions that prohibit any person:
• fromhavingarelevantinterestin10%ormoreofChorusShares,unlessthepriorwritten
consent of the New Zealand Government is obtained; or
• otherthanaNewZealandnational,fromhavingarelevantinterestinmorethan49.9%of
Chorus Shares, unless the prior written consent of the New Zealand Government is obtained.
If the Board or the New Zealand Government determines there are reasonable grounds
for believing that a person has a relevant interest in voting shares in excess of the ownership
restrictions, the Board may, after following certain procedures, prohibit the exercise of voting
rights (in which case the voting rights shall vest in the chairman) and may force the sale of
shares. The Board may also decline to register a transfer of shares if it reasonably believes
the transfer would breach the ownership restrictions.
NZX has granted Chorus waivers allowing Chorus’ Constitution to include the power
of forfeiture, the restrictions on transferability of Chorus Shares and the Board’s power
to prohibit the exercise of voting rights relating to these ownership restrictions.
Chorus has been advised by the Crown that AMP Capital Holdings Ltd and its related
companies have been granted approval, should they choose to exercise it in future,
to acquire a relevant interest in 10% or more (but not exceeding 15%) of Chorus Shares.
Unquoted securities
SECURITY
NUMBER OF SECURITIES ISSUED
IN YEAR ENDED 30 JUNE 2013
TOTAL NUMBER OF SECURITIES ON
ISSUE AS AT 19 AUGUST 2013 HOLDER
PERCENTAGE HELD
CFH Equity
Securities52,708,669 71,729,203
Crown Fibre
Holdings Ltd 100%
CFH Debt
Securities52,708,669 71,729,203
Crown Fibre
Holdings Ltd 100%
CFH Warrants 2,838,382* 3,532,423*Crown Fibre
Holdings Ltd 100%
* The CFH warrants have been issued in two series, with different repayment schedules.
On 30 June 2020 one series will be cancelled depending on whether the 20% fibre up-take
threshold is met.
The CFH equity securities are a unique class of security that carry no right to vote at
meetings of holders of Chorus Shares but entitle the holder to a right to a repayment
preference on liquidation.
The CFH debt securities are unsecured, non-interest bearing and carry no voting rights
at meetings of holders of Chorus Shares.
The CFH warrants are an option to acquire Chorus Shares on a specified exercise date
at a set strike price.
The terms of the issue for each of the CFH equity securities, CFH debt securities and
the CFH warrants are summarised on pages 139-142 of the scheme booklet (available
here http://www.chorus.co.nz/file/4926/scheme-booklet.pdf).
Distribution of shareholders and shareholdings of Chorus Shares as at 19 August 2013
SIZE OF SHAREHOLDING NUMBER OF HOLDERS
NUMBER OF SHARES HELD
% OF CHORUS SHARES ISSUED
1 to 1,000 26,121 8,038,131 2.06
1,001 to 5,000 8,619 21,577,906 5.54
5,001 to 10,000 2,442 18,329,383 4.71
10,001 to 100,000 1,995 47,084,011 12.09
100,001 and over 112 294,269,618 75.60
Total 39,289 389,299,049 100
Substantial security holders as at 19 August 2013
As at 19 August 2013 Chorus had received notices under Section 26 of the Securities Markets
Act 1988 that the following shareholders were substantial security holders in respect of
Chorus Shares:
SUBSTANTIAL SECURITY HOLDERNUMBER OF
VOTING SECURITIESDATE
OF NOTICE
Accident Compensation Corporation 24,046,750 23 July 2013
Schroder Investment Management Australia Limited 38,288,978 4 February 2013
The Bank of New York Mellon Corporation 28,681,648 31 December 2012
Twenty largest holders of Chorus Shares as at 19 August 2013
RANK HOLDER NAME HOLDING %
1. National Nominees New Zealand Limited* 60,288,503 15.48
2. JP Morgan Chase Bank NA* 32,029,843 8.22
3. Accident Compensation Corporation* 23,341,750 5.99
4. JP Morgan Nominees Australia Limited 18,258,067 4.68
5. HSBC Nominees (New Zealand) Limited A/C State Street* 16,799,898 4.31
6. HSBC Nominees (New Zealand) Limited* 16,396,338 4.21
7. National Nominees Limited 11,758,593 3.02
8. FNZ Custodians Limited 11,361,287 2.91
9. Citibank Nominees (New Zealand) Limited* 9,664,089 2.48
10. Forsyth Barr Custodians Limited 7,891,023 2.02
11. BNP Paribas Nominees (NZ) Limited* 7,557,664 1.94
12. Westpac NZ Shares 2002 Wholesale Trust* 4,942,584 1.26
13. Citicorp Nominees PTY Limited 4,547,173 1.16
14. Forsyth Barr Custodians Limited 4,497,699 1.15
15. New Zealand Superannuation Fund Nominees Limited* 4,367,784 1.12
16. HSBC Custody Nominees (Australia) Limited 4,229,021 1.08
17. Premier Nominees Ltd – Onepath Wholesale Australasian Shr Fund* 3,828,928 0.98
18. Investment Custodial Services Limited 2,594,204 0.66
19. BT NZ Unit Trust Nominees Limited* 2,492,160 0.64
20. RBC Investor Services Australia Nominees PTY Limited 2,486,293 0.63
* Held through New Zealand Central Securities Depository Limited (NZCSD). NZCSD provides
a custodial depository service which allows electronic trading of securities by its members.
As at 19 August 2013, 186,797,319 Chorus Shares (or 47.98% of the ordinary shares on issue)
were held through NZCSD.
Shareholders holding less than a marketable parcel
As at 19 August 2013, there were 6,071 shareholders holding between 1 and 99 Chorus
Shares (less than a minimum holding under the NZX Listing Rules) and, based on the market
price of A$2.55, there were 11,808 holders that held less than a marketable parcel of A$500
of Chorus Shares under the ASX Listing Rules.
On-market buy-back: There is no current on-market buy-back.
Net tangible assets per security
As at 30 June 2013, the consolidated net tangible assets per share was NZ$1.21 (30 June 2012:
0.90). Net tangible assets per share is a non-GAAP financial measure and is not prepared in
accordance with NZ IFRS.
Company Secretary
Vanessa Oakley
Donations
Chorus New Zealand Ltd made a donation of $50,000 to the Starship Foundation
in the financial period.
Subsidiaries
Chorus New Zealand Ltd
Directors: Mark Ratcliffe (Chairman), Andrew Carroll, Brian Hall, Vanessa Oakley
and Lucy Riddiford (as alternate director for Vanessa Oakley).
No directors of Chorus New Zealand Ltd resigned during the reporting period.
Director Remuneration:
The directors of Chorus New Zealand Ltd are all employees and do not receive any
remuneration in their capacity as directors.
Directors’ interests:
Mark Ratcliffe: Changes in interests: Telecom Corporation of New Zealand Ltd (shareholder),
Cessation of interests: Nil.
Andrew Carroll: Changes in interests: Nil. Cessation of interests: Nil.
Brian Hall: Changes in interests: Chorus Ltd (shareholder). Cessation of interests: Nil.
Lucy Riddiford: Changes in interests: Chorus Ltd (shareholder). Cessation of interests:
Telecom Corporation of New Zealand Ltd (shareholder).
Vanessa Oakley: Changes in interests: Nil. Cessation of interests: Nil.
Indemnities and Insurance:
See Indemnities and Insurance on page 45 for further information.
Other subsidiaries
The Board will be introducing a new long term incentive scheme for the CEO and Executive
in 2013. A new subsidiary will be incorporated to act as a trustee of the scheme.
Ch
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s Fi
nan
cia
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47
Glossary
Basic UBA Basic Unbundled Bitstream Access
CFH Crown Fibre Holdings Limited
Chorus Chorus Limited and, where the context requires, its subsidiary
Commission Commerce Commission
CPI Consumer Price Index
CPPP Cost per premises passed
DSL Digital Subscriber Line, a family of communications technologies allowing high-speed data over existing copper
EBITDA Earnings before interest, income tax, depreciation and amortisation
EMTN Euro Medium Term Note
Enhanced UBA Enhanced Unbundled Bitstream Access
FY Financial period – twelve months ended 30 June
HSNS Lite (Fibre) High Speed Network Service Lite over fibre
HSNS Lite (Copper) High Speed Network Service Lite over copper
HSNS Premium High Speed Network Service Premium (Bitstream 4)
IP Internet Protocol
MBIE Ministry of Business, Innovation and Employment
Naked UBA Broadband only UBA connections
POTS Plain Old Telephone Service
RBI Rural Broadband Initiative
Scheme booklet The Telecom demerger scheme booklet, published on 13 September 2011
SLES Sub Loop Extension Service
SLU Sub Loop Unbundling
TDL Telecommunications Development Levy
Telecom Telecom Corporation of New Zealand Limited and subsidiaries
TRL Telecommunications Regulatory Levy
TSO Telecommunications Service Obligation
UBA Unbundled Bitstream Access
UCLFS Unbundled Copper Low Frequency Service
UCLL Unbundled Copper Local Loop
UFB Ultra-Fast Broadband
VDSL Very High Speed Digital Subscriber Line
– a DSL technology
VoIP Voice over Internet Protocol
ARBN 152 485 848
RegisteredOffices
New Zealand
Level 9, North Tower
Datacom House,
68 - 86 Jervois Quay
Wellington 6011
New Zealand
Phone: +64 4 471 0220
Australia
C/- Allens Corporate Services Pty Limited
Level 5, Deutsche Bank Place
126 Phillip Street
Sydney
NSW 2000
Australia
Phone: +61 2 9230 4000
DIRECTORYRegistrars
New Zealand
Computershare Investor Services Limited
Private Bag 92119
Auckland 1142
New Zealand
Phone: +64 9 488 8777
Fax: +64 9 488 8787
Email: [email protected]
www.investorcentre.com/nz
Australia
Computershare Investor Services Pty Limited
GPO Box 3329
Melbourne 3001
Australia
Freephone: 1 800 501 366
Fax: +61 3 9473 2500
Email: [email protected]
www.investorcentre.com/nz
Depository
BNY Mellon Depositary Receipts
PO Box 43006
Providence, RI 02940-3006
United States
Phone: +1 201 680 6825
Email: [email protected]
www.bnymellon.com/shareowner
FORWARD LOOKING STATEMENTS AND DISCLAIMER
This annual report 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 annual report.
No representation, warranty or undertaking, express or implied, is made
as to the fairness, accuracy or completeness of the information contained,
referred to or reflected in this annual report, or any information provided
orally or in writing in connection with it. Please read this annual report in
the wider context of material previously published by Chorus and released
through the NZX Main Board and ASX.
Except as required by law or the listing rules of the NZX Main Board and ASX,
Chorus is not under any obligation to update this annual report at any time
after its release to you, whether as a result of new information, future events
or otherwise.