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

Thematic (Sector/Industry)

New zealand Industrials / Thematic (Sector/Industry)

<ul><li>We downgrade Spark NZ (SPK) to UNDERPERFORM from NEUTRAL.</li><li>SPK's incremental connection share is ~-3% points below its current share, its ARPUs are already ahead of One NZ's, its recent price changes have been mixed and it under-indexes in the growing MVNO market.</li><li>While SPK may benefit from a cyclical recovery in some IT services, the endgame for this segment is unclear.</li></ul>

We downgrade Spark NZ (SPK) to UNDERPERFORM from NEUTRAL.SPK's incremental connection share is ~-3% points below its current share, its ARPUs are already ahead of One NZ's, its recent price changes have been mixed and it under-indexes in the growing MVNO market.While SPK may benefit from a cyclical recovery in some IT services, the endgame for this segment is unclear.

Spark NZ Low Signal—Down To UNDERPERFORM