Spark New Zealand : H2 FY23 Results Summary

P A G E 3

1. Operating revenues and other gains
2. EBITDAI is adjusted for the impact of the TowerCo gain on sale of $583m included in revenue and the Spark Sport provision of $54m included in operating expenses. Net EBITDAI impact of $529m. NPAT is further adjusted for the $5 million net gain on dilution of the investment in the Connexa group, the tax effect of the Spark Sport provision of $14m and a credit to tax expense of $154m arising from the TowerCo transaction
3. Earnings before finance income and expense, income tax, depreciation, amortisation and net investment income (EBITDAI) and capital expenditure (Capex) are non-Generally Accepted Accounting Principles (non-GAAP) performance measures that are defined in note 2.5 of Spark's financial statements
   (4)Capex up 25.6% as TowerCo proceeds are invested

REVENUE GROWTH AND

COST CONTROL UNDERPINNED

EARNINGS AND DIVIDEND GROWTH

P A G E 4

• TowerCo transaction and Spark Sport exit resulted in a net EBITDAI gain of $529 million, contributing to reported revenues of $4,491 million, EBITDAI of $1,722 million, and NPAT of $1,135m
• Adjusted revenues increased 5.1% to $3,908 million, underpinned by mobile service revenue growth of 9%
• Future markets of Health and IoT collectively contributed $122 million of revenue
• Delivered adjusted EBITDAI growth of 3.7% to $1,193 million, in line with guidance, with adjusted NPAT up 5.6% to $433 million
• Generated free cash flow of $489 million, towards the top end of aspiration and largely funding the dividend
• Completed 42% of on-market share buy-back, returning $146 million of TowerCo proceeds to shareholders
• Declared H2 FY23 dividend of 13.5 cps and a total FY23 dividend of 27 cps - an increase of 8.0% or 2 cents YoY, in line with guidance
• FY24 free cash flow aspiration of ~$490m-$530m,guiding to a higher total FY24 dividend of 27.5cps

STRATEGY DELIVERY

BUILDS PLATFORM FOR

FUTURE GROWTH

S P A R K P A G E 5

• FY21-23strategy delivered stronger fundamentals - higher customer and people engagement, consistently growing brand strength, and top-quartile sustainability performance
• Maintained #1 position in mobile and broadband markets and achieved ~30% of broadband base on wireless broadband
• 5G investments maturing and will underpin future growth in consumer and B2B markets
• Effective portfolio management released capital to invest in the high-growth data centre market, with further investment at existing Takanini campus
• Market leading data and AI capability, combined with simplified portfolio, delivered 17% annual improvement in conversion and 9% efficiency gains
• Strong employee engagement at 70%
• Simpler, digital, and data-driven customer experiences improving customer iNPS score to +31 in FY23, a growth of 9 points since FY20
• 3-year TSR CAGR of 9.3%, ranking Spark at #4 against global peers(1)