New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<h2>Chorus</h2>
1H20 result ­— First Impressions
CNU’s 1H20 performance exceeded our expectation on slightly higher fibre revenue, (more materially) lower operating costs, and lower depreciation and amortisation. &nbsp;&nbsp;
CNU has lifted FY20 EBITDA guidance to NZ$640-655m (from NZ$625-645m, vs. Forbar NZ$629m).
Capex and dividend guidance are unchanged.
Lower operating costs and the lift in EBITDA guidance, whilst positive, have only a marginal valuation impact. The key valuation driver for CNU remains the implementation of the new fibre pricing regulatory regime, with the next key step being the Commerce Commission’s publication of its final decision on input methodologies on 2 June.
Investor briefing
Conference call: 10:00am (NZ time), NZ 0800 452 257, AU 1800 093 431, US 1877 788 9032, int’l +61 2 8047 9393. Passcode: 27579227#.
Webcast:&nbsp;<a href="http://www.chorus.co.nz/webcast" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://www.chorus.co.nz/webcast&amp;source=gmail&amp;ust=1582587881710000&amp;usg=AFQjCNGx3MnP30fjcd05JpOYI7IW1ArIzw" rel="noopener">www.chorus.co.nz/webcast</a>
FY19 result summary
<figure class="editor-figure mceNonEditable"><img src="https://mail.google.com/mail/u/0?ui=2&amp;ik=f57c39853c&amp;attid=0.1&amp;permmsgid=msg-f:1659360633329645680&amp;th=17073bb44fe17870&amp;view=fimg&amp;sz=s0-l75-ft&amp;attbid=ANGjdJ-dCwzpflydGQKyfLwOL5ilU2SE5MPUj5u48APd_jfQjsNeMx8vQb0LiD5Fi2ymZQ_i4Kd4yT2Rvf2k7nzVGFPTQWNdtJiFW0cD6fcb_oPa-AkSDrEQOgmo84Q&amp;disp=emb" width="401" height="127" class="editor-image img-responsive" data-image-whitelisted=""></figure>
Source: Company reports, Forsyth Barr analysis
Matt Henry &nbsp;CFA Head of Wealth Management Research
P: +64 9 368 0115 | TF: 0800 367 227&nbsp; Level 23, Lumley Centre, 88 Shortland Street, Auckland

Chorus
1H20 result ­— First Impressions
CNU’s 1H20 performance exceeded our expectation on slightly higher fibre revenue, (more materially) lower operating costs, and lower depreciation and amortisation. &nbsp;&nbsp;
CNU has lifted FY20 EBITDA guidance to NZ$640-655m (from NZ$625-645m, vs. Forbar NZ$629m).
Capex and dividend guidance are unchanged.
Lower operating costs and the lift in EBITDA guidance, whilst positive, have only a marginal valuation impact. The key valuation driver for CNU remains the implementation of the new fibre pricing regulatory regime, with the next key step being the Commerce Commission’s publication of its final decision on input methodologies on 2 June.
Investor briefing
Conference call: 10:00am (NZ time), NZ 0800 452 257, AU 1800 093 431, US 1877 788 9032, int’l +61 2 8047 9393. Passcode: 27579227#.
Webcast:&nbsp;www.chorus.co.nz/webcast
FY19 result summary

Source: Company reports, Forsyth Barr analysis
Matt Henry &nbsp;CFA Head of Wealth Management Research
P: +64 9 368 0115 | TF: 0800 367 227&nbsp; Level 23, Lumley Centre, 88 Shortland Street, Auckland

Chorus: 1H20 Result ­— First Impressions

Chorus Ltd

Chorus: 1H20 Result — First Impressions

Chorus Ltd

Chorus: 1H20 Result ­— First Impressions

Chorus: 1H20 Result — First Impressions