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

<ul><li>We estimate revenue up ~+6% year-on-year, driven by ARPUs up ~+4%, but CNU is likely still underearning its maximum allowable revenue by ~5% in 2026.</li><li>With CNU almost fully out of copper in fibre zones (~1k connections), we would welcome an update on its copper recycling and cost-out plan and greater colour on retiring the remaining ~43k rural connections over the next two years.</li><li>Cost control should remain strong; we estimate opex down -2% year-on-year.</li></ul>

We estimate revenue up ~+6% year-on-year, driven by ARPUs up ~+4%, but CNU is likely still underearning its maximum allowable revenue by ~5% in 2026.With CNU almost fully out of copper in fibre zones (~1k connections), we would welcome an update on its copper recycling and cost-out plan and greater colour on retiring the remaining ~43k rural connections over the next two years.Cost control should remain strong; we estimate opex down -2% year-on-year.

Chorus

Chorus FY26 Preview—Well Connected