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>Chorus (CNU) reported an in line FY26 result, but FY27 guidance was marginally below expectations given smaller proposed fibre price increases.</li><li>Lower increases slow our EBITDA and dividend growth profile; but the end game is unchanged; we expect CNU to fully earn its MAR and pay a ~NZ70cps dividend, now delayed to FY31.</li><li>CNU trades on a ~7% gross dividend yield; with ~+3% medium-term dividend growth, we view valuation as fair, with investors set to generate a ~+10% total shareholder return.</li></ul>

Chorus (CNU) reported an in line FY26 result, but FY27 guidance was marginally below expectations given smaller proposed fibre price increases.Lower increases slow our EBITDA and dividend growth profile; but the end game is unchanged; we expect CNU to fully earn its MAR and pay a ~NZ70cps dividend, now delayed to FY31.CNU trades on a ~7% gross dividend yield; with ~+3% medium-term dividend growth, we view valuation as fair, with investors set to generate a ~+10% total shareholder return.

Chorus FY26 Result—Dialling Back Price Increases