Port Of Tauranga Limited · NZX:POT
Port Of Tauranga — FY2015 Earnings Presentation
76 slides from Port Of Tauranga's earnings presentation, Aug 20, 2015
Slide 1: Presentation to Analysts
Presentation to Analysts 20 August 2015 1
Slide 2: 2015 Result Highlights
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%
Slide 3: Reported Group Profit After Tax
Reported Group Profit After Tax $120,000 112,123 $100,000 78,252 79,148 $80,000 A s s ociates /Sub s id aries $60,000 Parent $40,000 $20,000 $0 $000s 2013 2014 2015 3
Slide 4: Reported Profit Adjustments
Reported Profit Adjustments 2015 2014 NZ$000 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 investmen
Slide 5: 2015 Asset Revaluation
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
Slide 6: Underlying Group Profit After Tax
Underlying Group Profit After Tax $90,000 77,228 78,252 79,007 $80,000 $70,000 $60,000 A s s ociates /Sub s id aries $50,000 Parent $40,000 $30,000 $20,000 $10,000 $0 $000s 2013 2014 2015 6
Slide 7: Subsidiaries / Associates NPAT
Subsidiaries / Associates NPAT $20,000 $14,506 $15,367 $15,000 $14,272 $10,000 $5,000 $0 2013 2014 2015 $000s 7
Slide 8: Parent Operating Surplus After Taxation
Parent Operating Surplus After Taxation $70,000 $64,735 $62,722 $62,885 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2013 2014 2015 $000s 8
Slide 9: Group EBITDA
Group EBITDA $142,565 $145,049 $134,992 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 2013 2014 2015 $000s 9
Slide 10: Total Dividend
Total Dividend 52 50 50 46 40 Cents per 30 share 20 10 0 2013 2014 2015 10
Slide 11: Shareholders’ Equity
Shareholders’ Equity 80% 71.4% 70.3% 68.4% 70% 60% 50% 40% 30% 20% 10% 0% 2013 2014 2015 11
Slide 12: New Zealand Import/Export Volume by Port
New Zealand Import/Export Volume by Port 12
Slide 13: Cargo Throughput
Cargo Throughput 22,000 19,737 20,179 20,000 19,065 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 000s 0 Tonnes 2013 2014 2015 13
Slide 14: Containers
Containers 900,000 848,384 851,106 800,000 759,587 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2013 2014 2015 TEUs 14
Slide 15: Ship Departures
Ship Departures 1,800 1,612 1,529 1,555 1,600 1,400 1,200 1,000 800 600 400 200 000s 0 Tonnes 2013 2014 2015 15
Slide 16: MetroPort Railed TEUs
MetroPort Railed TEUs 200,000 183,334 178,799 150,000 134,567 100,000 50,000 TEUs 0 2013 2014 2015 16
Slide 17: Year Ended June 2015 Exports – 13.3M Tonnes
Year Ended June 2015 Exports – 13.3M Tonnes 13.0% Logs 3.0% Other Forestry 2014 Exports 42.0% Kiwifruit 13.3M 21.0% Other Exports 12 . 0 % Steel 3.0% Dairy 6.0% 47.0% 15.0% 2 1. 0 % 5.0% 15 . 0 % 17
Slide 18: Year Ended June 2015 Imports – 6.9M Tonnes
Year Ended June 2015 Imports – 6.9M Tonnes Oil 18.0% Fertiliser 48% Coal 2014 Imports 8.0% Cement 6.4M 0% Salt 20. 0% 2.0% 2.0% 2.0% Chemicals 43% Grain/Palm 8. 0% Kernel 20.0% Other Imports 1% 2. 0% 2. 0% 2. 0% 22. 0% 18
Slide 19: Logs
2013 2014 2015 000s PORT OF JASM TAURANGA NEW ZEALAND’S OB Bo fo the futee >
Slide 20: Log Exports by Country
Log Exports by Country 6.0% 2.0% China 8.0% Korea Japan 21.0% 2014 Exports 63.0% India 6.3M 9.0% 1.0% Other 9.0% 2015 Exports 18.0% 5.6M 63.0% 20
Slide 21: Cumulative Log Exports (Total New Zealand)
Cumulative Log Exports (Total New Zealand) 21
Slide 22: Sawn Timber
Sawn Timber 1,200 1,000 948 772 756 800 600 400 200 000s Tonnes 0 2013 2014 2015 22
Slide 23: Paper Products
Paper Products 800 688 585 572 600 400 200 000s Tonnes 0 2013 2014 2015 23
Slide 24: Dairy
Dairy 1,800 1,682 1,752 1,556 1,600 1,400 1,200 1,000 800 600 400 000s 200 Tonnes 0 2013 2014 2015 24
Slide 25: Meat
Meat 600 597 463 451 400 200 000s Tonnes 0 2013 2014 2015 25
Slide 26: Kiwifruit
Kiwifruit 823 800 704 690 600 400 200 000s Tonnes 0 2013 2014 2015 26
Slide 27: Kiwifruit
Kiwifruit 200 Psa impact & recovery Volume (m TE) 100 - 27
Slide 28: Oil Products
Oil Products 1,400 1,298 1,264 1,242 1,200 1,000 800 600 400 200 000s Tonnes 0 2013 2014 2015 28
Slide 29: Fertiliser Bases
Fertiliser Bases 600 525 489 382 400 200 000s Tonnes 0 2013 2014 2015 29
Slide 30: Grain & Dairy Food Supplements
Grain & Dairy Food Supplements 1,373 1,340 1,400 1,200 1,070 1,000 800 600 400 200 000s 0 Tonnes 2013 2014 2015 30
Slide 31: Subsidiaries / Associates
Subsidiaries / Associates 31
Slide 32: Northport
PORT OF TAURANGA NEW ZEALAND’S ims] in 2) ort ewe} >
Slide 33: Quality Marshalling
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
Slide 34: CODA
CODA (Tapper Transport / Priority Logistics / MetroPack /MetroBox / Dairy Transport Logistics – Formed 1 May 2015) 34
Slide 35: Coda LP
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
Slide 36: Coda TSF
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
Slide 37: Auckland-Palmerston North Optimisation
Auckland-Palmerston North Optimisation 37
Slide 38: Empty Container Optimisation
Empty Container Optimisation 38
Slide 39: Savill Drive Phase 2 Approved
Savill Drive Phase 2 Approved 39
Slide 40: PrimePort Timaru
PORT OF TAURANGA NEW ZEALAND’S @ ++ fidwe »
Slide 41: Timaru Container Terminal Containers
Timaru Container Terminal Containers 100,000 90,000 80,000 71,089 70,000 60,000 50,000 40,000 30,000 20,283 20,000 10,000 0 TEUs 2014 2015 41
Slide 42: Highlights
Highlights Need new graphic
Slide 43: Improvement in Safety (LTIFR 2.9)
Improvement in Safety (LTIFR 2.9) 43
Slide 44: Return of Maersk Southern Star
Return of Maersk Southern Star 44
Slide 45: Container Volumes up 12% to 851,106 TEU’s
Container Volumes up 12% to 851,106 TEU’s 45
Slide 46: Board Approved Purchase of Two More Cranes
Board Approved Purchase of Two More Cranes 46
Slide 47: New Harbour Mobile Crane in Timaru
New Harbour Mobile Crane in Timaru 47
Slide 48: Two New 74 Tonne Bollard Pull Tugs
Two New 74 Tonne Bollard Pull Tugs 48
Slide 49: Tauranga Eastern Link Opened
Tauranga Eastern Link Opened 49
Slide 50: Dredging Contract Awarded
Dredging Contract Awarded 50
Slide 51: MetroPort Christchurch Opened
MetroPort Christchurch Opened 51
Slide 52: Trade Outlook 2015/2016
PORT OF TAURANGA NEW ZEALAND’S C1 Part fi gee »
Slide 53: MetroPort Volumes
MetroPort Volumes PORT OF TAURANGA NEW ZEALAND’S OB Bo fo the futee >
Slide 54: Parent Capital Expenditure 2015-2018
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
Slide 55: Automation
Automation PORT OF TAURANGA
Slide 56: Automation
Automation PORT OF TAURANGA OB Bo fo the futee >
Slide 57: Significant Strategic Land Holdings
Significant Strategic Land Holdings 57
Slide 58: Redefining our Hinterland
Redefining our Hinterland 58
Slide 59: Port of Tauranga
Port of Tauranga 59
Slide 60: “uuu
“uuu ——
Slide 61: CV65 Class (6,500 TEUs)
CV65 Class (6,500 TEUs) LOA: 309m Width: 16 containers Draught: 14.5m 61
Slide 62: Monte Class (5,560 TEUs)
Monte Class (5,560 TEUs) LOA: 272m Width: 16 containers Draught: 13.2m 62
Slide 63: Modal Comparison of Carbon Emissions
Modal Comparison of Carbon Emissions Source: ECMT 2006. Data from EU15 63
Slide 64: Other Port Low Water Draughts
Other Port Low Water Draughts • Melbourne 14.0m LW • Sydney 13.8m LW • Brisbane 14.0m LW • Perth 14.5m LW • Auckland 11.4m LW • Tauranga 11.7m LW (consented to 14.5m) • Napier 10.6m LW • Centreport 10.2m LW • Lyttelton 10.6m LW • Otago 11.8m LW (consented to 13.5m) 64
Slide 65: Shippers’ Council Report
Shippers’ Council Report Recommends Tauranga to be North Island International Hub Port Potential economic benefits to NZ Inc of $338 million pa 65
Slide 66: Cost Savings for Larger Vessels
Cost Savings for Larger Vessels 66
Slide 67: Lower Carbon Footprint of Larger Vessels
Lower Carbon Footprint of Larger Vessels 67
Slide 68: Current Port Capacity
Current Port Capacity Current Ability to Handle Fully Loaded Ships Snip Capacity Ports of Auckland Port of Tauranga Lytteffon Port Port Otago (yes It net fuatytaden, (yes T not @alytoger) (yes f not tulytacon videnced by Maura: @éGerced by Macon Daal) Debary (6000 TEU ship oe | X Xx Xx X drought 13.
Slide 69: Significant Strategic Moat: Channel Deepening and Widening
Significant Strategic Moat Channel Channel Deepening Deepening and and Widening Widening First stage of dredging to commence in 2015 69
Slide 70: Terminal Capacity
Terminal Capacity Ports of Auckland Claim Facts • Port of Tauranga doesn’t have • In POAL’s submission to the capacity Proposed Auckland Unitary Plan “Port of Tauranga could therefore theoretically absorb Auckland cargo in the short and medium term, if POAL were constrained.” • Utilising POAL’s capa
Slide 71: More Trucks on the Road
More Trucks on the Road Ports of Auckland Claim Facts • “Shipping your freight • 99% of containers imported through far-away ports has or exported through lots of problems. Like MetroPort will be on trains thousands more trucks on to South Auckland, actually the road and the need for reducing truck
Slide 72: MetroPort Rail Capacity Stage Three
MetroPort Rail Capacity Stage Three TEU Daily Capacity Under Growth Scenarios via Increased TEU Capacity per trip Stage 3 - Future Capacity 2000 1800 1600 1400 TEU Capacity per Trip 1200 1000 800 600 400 200 0 1 2 3 4 5 6 7 8 9 10 11 12 Number Trains 106 117 126 132 150 Additional loops, redevelopme
Slide 73: Rail Not Suitable
Rail Not Suitable Ports of Auckland Claim Facts • “Much of the cargo • With the exception of between Northport / glass, we are not aware Auckland and Port of of any potential cargo that Tauranga would not be is not suitable for rail suitable for rail (due to • Rail is actually better weight and dime
Slide 74: Northport Does Not Have Capacity
Northport Does Not Have Capacity Ports of Auckland Claim Facts • “Northport would be • The following confidential required to expand the port slides show Northport’s across sensitive beach, expansion strategy residential, and marine • Further comment should be areas” sought from Sir John Goulter (cu
Slide 75: Northport Ltd – 2013 Strategic Plans: 20-30 Years
Northport Ltd – 2013 Strategic Plans: 20-30 Years 75
Slide 76: f separ
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