Slide 1: Refining NZ 2021 Annual Results Presentation
REFINING NZ 2021 ANNUAL RESULTS PRESENTATION REFINING NZ 2021 FINANCIAL RESULTS BRIEFING 1
Slide 2: Important Information
REFINING NZ 2021 ANNUAL RESULTS IMPORTANT INFORMATION PRESENTATION • This presentation contains forward looking statements concerning the financial condition, results and operations of The New Zealand Refining Company Limited (hereafter referred to as “Refining NZ”). • Forward looking statements are
Slide 3: Key Messages
REFINING NZ 2021 ANNUAL RESULTS KEY MESSAGES PRESENTATION Another year of excellent personal safety and operational performance Strategic Review concluded, delivering long-term plan to unlock infrastructure value Transition to a fuels import terminal is imminent; conversion cost estimates reconfirme
Slide 4: FY21 Performance & Financials
REFINING NZ 2021 ANNUAL RESULTS PRESENTATION FY21 PERFORMANCE & FINANCIALS TRANSITION TO CHANNEL INFRASTRUCTURE FY22 LOOK FORWARD
Slide 5: Performance Highlights
REFINING NZ 2021 PERFORMANCE HIGHLIGHTS All 2021 key priorities achieved 2021 ANNUAL RESULTS PRESENTATION Maintained excellent safety and operational performance through the Strategic Review and ongoing COVID-19 impacts ✓ Safe, reliable and compliant operations throughout 2021 • No recordable person
Slide 6: Safe Operations
REFINING NZ SAFE OPERATIONS Record personal safety performance 2021 ANNUAL RESULTS PRESENTATION • Excellent personal safety performance continues with no recordable injuries in over two years • Two Tier 1 process safety events in 1H21 were responded to quickly, with no significant damage to plant an
Slide 7: Throughput
REFINING NZ THROUGHPUT COVID restrictions continued to negatively impact throughput 2021 ANNUAL RESULTS PRESENTATION FY20 FY21 Change • Simplified refinery model implemented from January 2021, Refinery Throughput Mbbl 29.9 29.2 0.7▼ 2.3% with refinery capacity reduced by circa 18% RAP Throughput Mbb
Slide 8: Refining Margins
REFINING NZ REFINING MARGINS Second full year of operations at the Fee Floor 2021 ANNUAL RESULTS PRESENTATION FY20 FY21 Change US$/BARREL Singapore Complex Margin (1.65) (1.20) 0.45 (SCM)1 Freight 1.55 1.80 0.25 Product quality 0.69 0.75 0.06 Plant availability (0.16) (0.19) (0.03) Crude cost and yi
Slide 9: Financial Snapshot
REFINING NZ 2021 FINANCIAL SNAPSHOT Cash break even at the Fee Floor 2021 ANNUAL RESULTS PRESENTATION FY20 FY21 Change • Lower Refinery revenue reflects lower gas usage, no wage subsidy in 2021 and lower carbon unit Revenue - Refinery1 NZ$M 189.9 186.0 3.9▼ 2% sales Revenue - Infrastructure1 NZ$M 41
Slide 10: 2021 v 2020 EBITDA Comparison
REFINING NZ 2021 v 2020 EBITDA COMPARISON 44% increase in EBITDA, at Fee Floor revenue 2021 ANNUAL RESULTS PRESENTATION NZ$M Non-cash release includes “cash out” of legacy balance sheet items and gain on electricity Operating hedges costs² were c.15% lower than FY20 and c.30% lower than FY19 as a re
Slide 11: Cash Flow
REFINING NZ CASH FLOW Operated cash neutral, with equity raise reducing net debt 2021 ANNUAL RESULTS PRESENTATION NZ$M • The Company successfully operated cash neutral at the Fee Floor, including turnaround and Strategic Review/conversion costs • Capital expenditure of $32m included $13m of maintena
Slide 12: Balance Sheet
REFINING NZ BALANCE SHEET Impacts of conversion on FY21 Balance Sheet 2021 ANNUAL RESULTS PRESENTATION Summarised Balance Sheet [1] Overview of Accounting Adjustments for Conversion FY 20 FY 21 Impairment of refining assets Cash NZ$M 43 16 • Non-cash impairment of refinery assets of $567 million Rec
Slide 13: Transition to Channel Infrastructure
REFINING NZ 2021 ANNUAL RESULTS PRESENTATION FY21 PERFORMANCE & FINANCIALS TRANSITION TO CHANNEL INFRASTRUCTURE FY22 LOOK FORWARD
Slide 14: Key Terminal Highlights
Critical infrastructure delivering more stable earnings through long REFINING NZ KEY TERMINAL HIGHLIGHTS term customer agreements 2021 ANNUAL RESULTS PRESENTATION Overview of ITS and Flow of Imports ✓ Ownership of critical and highly efficient infrastructure ✓ Long-term customer contracts ✓ Projecte
Slide 15: Terminal Arrangements
‘Core’ revenue contracted through bi-lateral Terminal Services REFINING NZ 2021 ANNUAL RESULTS TERMINAL ARRANGEMENTS Agreements PRESENTATION Terminal Services Agreements Annualised Contracted Fees • TSA fees to commence from 1 April 2022 Second right End of TSA of renewal • Initial term of 10 years
Slide 16: Private Storage
REFINING NZ PRIVATE STORAGE Additional private storage capacity has now been contracted 2021 ANNUAL RESULTS PRESENTATION Contracted private storage capacity totals c.100 ML – in addition to c.180 ML of shared terminal capacity • Private storage provides customers with freight cost optimisation benef
Slide 17: Conversion Program
REFINING NZ CONVERSION PROGRAM Transition to Channel Infrastructure from 1 April 2022 2021 ANNUAL RESULTS PRESENTATION Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 2023 FY21 1 April: 10 May: Target 24 August: results Terminal AGM recommencement HY FY22 Revaluation Ser
Slide 18: Conversion Costs
REFINING NZ CONVERSION COSTS Conversion spend phased over a number of years 2021 ANNUAL RESULTS PRESENTATION Terminal Conversion: $200-220 million Demolition: Private Storage: $45-50 million $50 million • Conversion cost operating and capital expenditure in FY21 of $15 million 2021 Future spend Spen
Slide 19: Conversion Funding
REFINING NZ CONVERSION FUNDING Bank consents and conversion funding is in place 2021 ANNUAL RESULTS PRESENTATION • In 2021, the Company received conversion consent from its bank lenders, extended certain facilities and raised new facilities to fund Debt Maturity Profile conversion 175 • As at 31 Dec
Slide 20: FY22 Look Forward
REFINING NZ 2021 ANNUAL RESULTS PRESENTATION FY21 PERFORMANCE & FINANCIALS TRANSITION TO CHANNEL INFRASTRUCTURE FY22 LOOK FORWARD
Slide 21: 2022 Priorities
REFINING NZ 2022 PRIORITIES 2021 ANNUAL RESULTS PRESENTATION Safe, reliable and compliant refinery and terminal operations On time and on budget delivery of terminal conversion project Retain and build organisational capability through the transition Actively manage the transition to CHI with invest
Slide 22: Focused Growth Strategy
FOCUSED GROWTH STRATEGY A disciplined approach to near-term prioritisation while maintaining2021REFINING NZ ANNUAL RESULTS longer-term options PRESENTATION An initial assessment of Marsden Point repurposing options has been completed ahead of confirming approach to refinery shutdown Horizon 3 (New m
Slide 23: 2022 Outlook
REFINING NZ 2021 ANNUAL RESULTS 2022 OUTLOOK PRESENTATION Q1 Processing Fee revenue currently 1 expected to exceed the Fee Floor by c.$5 to $10 million1 2 Import Terminal fees to commence from 1 April, with Take or Pay commitments of c.$75 million in FY22 3 FY22 Operating costs (excluding conversion
Slide 24: Questions?
REFINING NZ 2021 ANNUAL RESULTS PRESENTATION Questions?
Slide 25: Glossary
REFINING NZ 2021 ANNUAL RESULTS PRESENTATION GLOSSARY • LTI – Lost time injury • TRC – Total recordable case • Tier 1 Process Safety Event (API 754) – A tier 1 Process Safety Event (PSE) is an unplanned or uncontrolled release of any material, including non-toxic and non-flammable, from a process wh
Slide 26: Refining NZ Financial Results Briefing
REFINING NZ REFINING NZ 2020 ANNUAL RESULTS PRESENTATION 2021 FINANCIAL RESULTS BRIEFING 26