Presentation to Analysts 20 August 2015 1
2015 Result Highlights Parent NPAT up 2.9% to $64.7M Underlying Group NPAT up 1.0 % to $79.0M Group EBITDA up 1.7% to $145M Final dividend of 30 cents per share (total dividend for the year of 52 cps, up 4% on FY14) $54.3M invested in Capex in FY15 Trade volumes of 20.179M tonnes up 2.2% Container volumes up 12% to 851,106 TEUs 2
Reported Group Profit After Tax $120,000 112,123 $100,000 $80,000 $60,000 78,252 79,148 Associates/Subsidaries Parent $40,000 $20,000 $0 $000s 2013 2014 2015 3
Reported Profit Adjustments 2015 NZ$000 2014 NZ$000 Reported profit after tax 79,148 78,252 Disposal of investments Gain on sale of Subsidiaries to Coda (5,013) 0 Fair value gain recognised on the sale of 49.9% shareholding in (4,731) 0 Timaru Container Terminal Limited Loss on disposal of investment in MetroBox Limited and Cubic 1,135 0 Transport Services Limited Total (8,609) 0 Profit and loss impact of revaluation of property, plant and equipment Impairment of property, plant and equipment on revaluation, net of tax 1,579 0 Total 1,579 0 Impairment of goodwill Impairment of goodwill in Quality Marshalling 6,221 0 Impairment of goodwill and MetroBox Limited 668 0 Total 6,889 0 Total underlying profit after tax 79,007 78,252 4
2015 Asset Revaluation $ million Land 26.0 Buildings 3.3 Wharves/hardstanding 52.0 Channels 0.2 Total 81.5 The increase in asset value will result in an increase in depreciation of approximately $1.7 million from FY2016. 5
Underlying Group Profit After Tax $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 $000s 77,228 78,252 79,007 2013 2014 2015 Associates/Subsidaries Parent 6
Subsidiaries / Associates NPAT $20,000 $15,000 $14,506 $15,367 $14,272 $10,000 $5,000 $0 $000s 2013 2014 2015 7
Parent Operating Surplus After Taxation $70,000 $60,000 $62,722 $62,885 $64,735 $50,000 $40,000 $30,000 $20,000 $10,000 $0 $000s 2013 2014 2015 8
Group EBITDA $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 $000s $134,992 $142,565 $145,049 2013 2014 2015 9
Total Dividend 50 46 50 52 40 Cents per share 30 20 10 0 2013 2014 2015 10
Shareholders Equity 80% 70% 60% 50% 40% 30% 20% 10% 0% 71.4% 70.3% 68.4% 2013 2014 2015 11
New Zealand Import/Export Volume by Port 12
Cargo Throughput 000s Tonnes 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 19,065 19,737 20,179 2013 2014 2015 13
900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 TEUs Containers 848,384 851,106 759,587 2013 2014 2015 14
Ship Departures 000s Tonnes 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1,529 1,612 1,555 2013 2014 2015 15
MetroPort Railed TEUs 200,000 183,334 178,799 150,000 134,567 100,000 TEUs 50,000 0 2013 2014 2015 16
Year Ended June 2015 Exports 13.3M Tonnes 13.0% Logs 3.0% Other Forestry 2014 Exports 13.3M 21.0% 42.0% Kiwifruit Other Exports 12. 0 % Steel 21.0% 3.0% 47.0% 6.0% 15.0% Dairy 5.0% 15. 0 % 17
Year Ended June 2015 Imports 6.9M Tonnes Oil 18.0% Fertiliser 2014 Imports 6.4M 20.0% 48% 8.0% 0% 2.0% 2.0% 2.0% Coal Cement Salt Chemicals 43% 8.0% 1% 20.0% Grain/Palm Kernel Other Imports 2.0% 2.0% 2.0% 22.0% 18
Logs 000s JASM 19
Log Exports by Country 8.0% 6.0% 2.0% China Korea 2014 Exports 21.0% Japan 9.0% 9.0% 1.0% 6.3M 63.0% India Other 18.0% 2015 Exports 5.6M 63.0% 20
Cumulative Log Exports (Total New Zealand) 21
Sawn Timber 1,200 1,000 800 600 400 200 948 772 756 000s Tonnes 0 2013 2014 2015 22
Paper Products 800 600 688 585 572 400 200 000s Tonnes 0 2013 2014 2015 23
Dairy 000s Tonnes 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1,682 1,752 1,556 2013 2014 2015 24
Meat 600 597 463 451 400 200 000s Tonnes 0 2013 2014 2015 25
Kiwifruit 800 600 704 690 823 400 200 000s Tonnes 0 2013 2014 2015 26
Kiwifruit 200 Volume (m TE) 100 Psa impact & recovery 27
Oil Products 1,400 1,200 1,000 800 600 400 1,242 1,298 1,264 000s Tonnes 200 0 2013 2014 2015 28
Fertiliser Bases 600 400 382 489 525 200 000s Tonnes 0 2013 2014 2015 29
Grain & Dairy Food Supplements 000s Tonnes 1,400 1,200 1,000 800 600 400 200 0 1,070 1,373 1,340 2013 2014 2015 30
Subsidiaries / Associates 31
Northport 32
Quality Marshalling NPAT of $631K Stevedoring of logs at Northport Load/unload trains at Tauranga Container Terminal Operating Plant and Labour at Timaru Container Limited Impairment of Goodwill of $6.2M 33
CODA (Tapper Transport / Priority Logistics / MetroPack /MetroBox / Dairy Transport Logistics Formed 1 May 2015) 34
Coda LP Formed to drive down the landside cost of transporting containers to and from ports Moves over 5.5 Million tonnes and over 300,000 containers per annum At the peak, responsible for 900 road and rail movements per day Partners with over 60 prequalified logistics providers Large user of KiwiRail Operates a large intermodal freight hub at Savill Drive Auckland 35
Coda TSF TSF specifically designed to fit two pallets of milk powder high and fit through tunnels in KiwiRail network Goods transported from Auckland to Palmerston North in TSF TSF loaded with Milk Powder for return trip to Auckland (30% more utilisation) 36
Auckland-Palmerston North Optimisation 37
Empty Container Optimisation 38
Savill Drive Phase 2 Approved 39
PrimePort Timaru 40
Timaru Container Terminal Containers 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 TEUs 20,283 71,089 2014 2015 41
Highlights Need new graphic
Improvement in Safety (LTIFR 2.9) 43
Return of Maersk Southern Star 44
Container Volumes up 12% to 851,106 TEU s 45
Board Approved Purchase of Two More Cranes 46
New Harbour Mobile Crane in Timaru 47
Two New 74 Tonne Bollard Pull Tugs 48
Tauranga Eastern Link Opened 49
Dredging Contract Awarded 50
MetroPort Christchurch Opened 51
Trade Outlook 2015/2016 52
MetroPort Volumes 53
Parent Capital Expenditure 2015-2018 Year ended 30 June 2015A 2016 2017 2018 Total $000 $000 $000 $000 $000 Committed Maintenance capex 11,200 12,000 12,000 12,000 36,000 7th crane and straddle carriers 0 0 0 0 0 New Cranes and straddle carriers 800 14,000 23,000 6,000 43,000 New Tugs 15,800 1,000 0 0 1,000 Shed 12 Relocation 10,000 5,000 0 15,000 Property Purchases 14,500 0 0 0 0 Dredging (Stage 1) 600 30,000 10,000 0 40,000 Terminal/Rolleston Expansion 5,800 1,000 0 0 1,000 48,700 68,000 50,000 18,000 136,000 Uncommitted Mount wharf replacement/tanker Berth 0 0 12,000 18,000 30,000 Total $48,700 $68,000 $62,000 $36,000 166,000 54
Automation 55
Automation 56
Significant Strategic Land Holdings 57
Redefining our Hinterland 58
Port of Tauranga 59