Port Of Tauranga Limited · NZX:POT
Port Of Tauranga — H1 FY2021 Earnings Presentation
37 slides from Port Of Tauranga's earnings presentation, Feb 26, 2021
Slide 1: Presentation to Analysts
Presentation to Analysts 26 February 2021
Slide 2: Disclaimer
Disclaimer The information in this presentation is for information purposes and has been prepared by Port of Tauranga Limited with due care and attention. However, neither the Company, nor any of its Directors, officers, employees, contractors or agents, shall have any liability whatsoever to any pe
Slide 3: Highlights and Challenges
Highlights and Challenges For the six months ended December 2020 1TEUs = twenty foot equivalent units, a standard measure of shipping containers
Slide 4: Highlights and Challenges
Highlights and Challenges For the six months ended December 2020
Slide 5: Group Net Profit After Tax up 2.3%
Group Net Profit After Tax up 2.3% For the six months ended December 2020 $50,000 $48,987 $48,316 $49,420 $40,000 $30,000 $20,000 $10,000 $0 FY19 FY20 FY21
Slide 6: Interim Dividend
Interim Dividend 8 6.0 6.0 6.0 6 Cents per share 4 2 0 FY19 FY20 FY21
Slide 7: Net Debt / Net Debt + Equity
Net Debt / Net Debt + Equity 35% For the six months ended December 2020 30.5% 30.1% 29.4% 30% 25% 20% 15% 10% 5% 0% FY19 FY20 FY21
Slide 8: Total Trade down 1.3%
Total Trade down 1.3% For the six months ended December 2020 16,000 14,000 13,573 13,260 13,084 12,000 000s tonnes 10,000 8,000 6,000 4,000 2,000 0 FY19 FY20 FY21
Slide 9: Upper North Island Port Congestion
Upper North Island Port Congestion
Slide 10: Causes of Port Congestion
Causes of Port Congestion • Global supply chain shipping congestion post- COVID lockdowns • Australian industrial relations resulting in vessel delays into NZ • Exacerbated impact in Auckland with circa 31% of available capacity being utilised (2/8 cranes and 3/8 cranes) • Auckland predominant first
Slide 11: Flow-on Effects
Flow-on Effects • Port of Tauranga able to accommodate 11 unscheduled import vessel calls since September 2020 • Northport able to take two container vessel calls • Despite additional import calls, vessel delays resulted in overall reduced vessel numbers at Tauranga • Vessel delays and resulting car
Slide 12: Costs of Congestion
Costs of Congestion 50 fewer container vessels September 2020 to January 2021 vs PCP
Slide 13: New Zealand Port Ship Rate
100 0 10 20 30 40 50 60 70 80 90 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 Auckland 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 Lyttelton 13Q2 13Q3 13Q4 14Q1 14Q2 Napier 14Q3 14Q4 15Q1 15Q2 Otago 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 Tauranga 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 New Zealand Port Ship Rate 18Q4
Slide 14: Container Volumes down 4.6%
Container Volumes down 4.6% For the six months ended December 2020 700,000 642,209 621,117 612,988 600,000 500,000 TEUs 400,000 300,000 200,000 100,000 FY19 FY20 FY21
Slide 15: Transhipped TEUs down 5.1%
Transhipped TEUs down 5.1% For the six months ended December 2020 200,000 181,299 174,983 172,021 150,000 TEUs 100,000 50,000 0 FY19 FY20 FY21
Slide 16: NZ Transhipment by Port
NZ Transhipment by Port 14,000 12,000 10,000 8,000 6,000 TEUs 4,000 2,000 0 Nelson Timaru Nelson Timaru Port Chalmers Port Chalmers Bluff Auckland Lyttelton Wellington Auckland Lyttelton Wellington Napier Napier Tranships load/ import / empty Tranship unload / export Port 6 mths to end Dec 19 6 mths
Slide 17: Exports – Logs down 2.1%
Exports – Logs down 2.1% For the six months ended December 2020 4,000 3,666 3,500 3,358 3,289 3,000 000s tonnes 2,500 2,000 1,500 1,000 500 0 FY19 FY20 FY21
Slide 18: Forestry Outlook
Forestry Outlook • Strong in market pricing and demand in China • Australian market diverted to India resulting in no NZ – India exports • Volume expected to be circa 6.2M JAS FY21 Source: AgriHQ
Slide 19: Exports – Kiwifruit up 5.4%
Exports – Kiwifruit up 5.4% For the six months ended December 2020 800 744 719 700 680 600 000s tonnes 500 400 300 200 100 0 FY19 FY20 FY21
Slide 20: Kiwifruit Outlook
Kiwifruit Outlook TOTAL VOLUMES SHIPPED (FOBS) 2017 - 2020: Actual 2021: Forecast 177.6 180 157.5 160 150.2 146.1 o _ 121.3 @ 120 Ee = 100 2s = 80 = 60 40 20 0 2017 2018 2019 2020 2021 Forecast Year We Cespri t. a.
Slide 21: Export – Dairy down 10.8%
Export – Dairy down 10.8% For the six months ended December 2020 1,154 1,200 1,153 1,095 1,100 1,000 900 800 000s tonnes 700 600 500 400 300 200 100 0 FY19 FY20 FY21
Slide 22: Dairy Outlook
Dairy Outlook • Global Dairy Trade (GDT) price index currently at levels not seen since May 2014 • Impacted by vessel delays resulting in higher than expected inventory levels • Expect stronger second half of FY21
Slide 23: Bulk Cargo up 4%
Bulk Cargo up 4% Breakbulk Tonnes 6 months July to December 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 6 mths ended Dec 16 6 mths ended Dec 17 6 mths ended Dec 18 6 mths ended Dec 19 6 mths ended Dec 20 LOGS OIL PRODUCTS PROTEINS & FEEDS KIWIFRUIT OTHER WOOD PRODUCTS FER
Slide 24: Subsidiaries & Associates
Subsidiaries & Associates CODA ane N ) Northport METROPORT 3} Ruakura moun 50% OWNERSHIP 50% OWNERSHIP WITH MARSDEN OPERATED BY PARENT 50:50 JOINT VENTURE WITH WITH KOTAHI MARITIME HOLDINGS COMPANY AND KIWIRAIL TAINUI GROUP HOLDINGS QUALITY ag METROPORT aif TIMARU A MARSHALLING 9% PRIMEPORT B® CONTA
Slide 25: Subsidiaries & Associates Net Profit After Tax up 22.3%
Subsidiaries & Associates Net Profit After Tax up 22.3% $10,000 $8,937 $8,000 $7,310 $6,237 $6,000 $000s $4,000 $2,000 $0 FY19 FY20 FY21
Slide 26: Earnings down 4.8% to $4.591 million
Earnings down 4.8% to $4.591 million Trade up 2.8% on last year, log volumes up 11.7% Containers down 24.5% to 5,388 TEUs
Slide 27: Earnings up $0.286 million on last year
Earnings up $0.286 million on last year Impacted by congestion issues
Slide 28: Earnings up 74.3% to $2.207 million
Earnings up 74.3% to $2.207 million
Slide 29: Container volumes up 21.1%
Container volumes up 21.1% NPAT of $0.454 million up from $0.072 million in prior year Acquired Kotahi’s 49.9% shareholding in October, in exchange for volume-based rebate
Slide 30: NPAT up 17.5% to $1.563 million
NPAT up 17.5% to $1.563 million Good performance across all areas of the company Management of Timaru Container Terminal from 1 November 2020
Slide 31: Ruakura Inland Port
Ruakura Inland Port New joint venture established Inland Port opening planned March 2022
Slide 32: KiwiRail
KiwiRail Renewed MetroPort Agreement – 20 Years
Slide 33: Berth Consent Progress
Berth Consent Progress • Ongoing consultation - currently ~12 months behind schedule • Design completed and early contractor engagement • Fast Track application submitted - waiting for decision • 220 metre extension
Slide 34: Learnings from Disruption
Learnings from Disruption • Early phasing of terminal automation to reduce disruption and bed in new technology • Staged start - provides ability to scale with volume • Significant environmental benefit - circa 73% reduction in emissions
Slide 35: Parent Capital Expenditure 2016-2022
Parent Capital Expenditure 2016-2022 $23,000 $100,000 $80,000 $77,000 $60,166 $23,000 $60,000 $40,073 $38,288 $40,000 $36,288 $20,000 $16,788 $0 2017 2018 2019 2020 2021F 2022F Terminal Southern Berth Extension
Slide 36: Outlook 2021
Outlook 2021 • Port congestion is expected to continue for the remainder of this financial year • Expect to handle about 1.225 million TEUs • Revised FY21 earnings guidance now expected to be between $94 and $100 million
Slide 37: Thank You
PORT OF TAURANGA Pee vew zeatanos for the fi. wire Pe