Channel Infrastructure Nz Limited · NZX:CHI
Channel Infrastructure Nz — Shareholder Meeting (April 2024)
38 slides from Channel Infrastructure Nz's shareholder meeting presentation, Apr 30, 2024
Slide 1: Annual Shareholders' Meeting 2024
Annual Shareholders’ Meeting 2024 30 April 2024
Slide 2: Important Information
Important Information • This presentation contains forward looking statements concerning the financial • In light of these risks, results could differ materially from those stated, implied or condition, results and operations of Channel Infrastructure NZ Limited (hereafter inferred from the forward-
Slide 3: Welcome
Welcome Chris Bougen General Council & Company Secretary 3
Slide 4: Participate in Virtual Meetings
Participate in Virtual Meetings Shareholder & Proxyholder Q&A Participation Written Questions: Questions may be submitted ahead of the meeting. If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at anytime. Type your question into the
Slide 5: Chair's address
Chair’s address James Miller Chair 5
Slide 6: Agenda
Agenda 1. Chair’s address 2. CEO’s address 3. Resolutions and voting 4. General business
Slide 7: Your Board – Strong and capable with the right skill set
Your Board – Strong and capable with the right skill set 100+ years' experience in James Miller Andrew Brewer Felicity Underhill Vanessa Stoddart refining, fuel terminals, oil Independent Director and gas and fuel supply Board Chair, Independent Non-Independent Independent Director Director Director
Slide 8: Transition to import terminal has improved total shareholder return
Transition to import terminal has improved total shareholder return Total Shareholder Return (CHI versus NZX50G) % 80 60 40 20 Compound Annual Total - Shareholder Return 28.9% (20) (40) (60) Since vote to convert to an Import (80) Terminal (August 2021) FY19 FY20 FY21 FY22 FY23 Previous 10 years bef
Slide 9: Transition to import terminal enabled a return to dividends in FY22
Transition to import terminal enabled a return to dividends in FY22 Dividends (cents per share) 20 15 12.0 10 Ordinary FY23 Special FY23 Dividend Yield[1] 7.0 Dividend Dividend 10.5 1.5 8.3% 5 2.0 - Cents per Share Cents per Share FY19 FY20 FY21 FY22 FY23 Interim Ordinary Dividend Final Ordinary Div
Slide 10: Stable cashflows have enabled significant investment in resiliency
Stable cashflows have enabled significant investment in resiliency $105m [1] 3.4 billion litres c.45 million litres throughput of fuel each year. Jet storage commissioned, Spent to date focused on This is 40% of New Zealand’s total transport enough for additional 15,000 flights to world-class termin
Slide 11: Refreshed strategy: helping fuel NZ's future to 2050 and beyond
Refreshed strategy: helping fuel NZ's future to 2050 and beyond OUR VISION World-class energy infrastructure company OUR PURPOSE Delivering resilient infrastructure solutions to meet changing fuel and energy needs OUR STRATEGIC PRIORITIES World-Class High Performance Grow from Support Energy Discipl
Slide 12: CEO's address
CEO’s address Rob Buchanan CEO 12
Slide 13: Delivery and Execution of all of 2023 priorities
Delivery and Execution of all of 2023 priorities Safe, reliable, and cost-efficient terminal operation and maintenance On-budget and on-time completion of the remaining conversion project works Work with Customers and Government to improve supply chain resilience Deliver on near-term growth opportun
Slide 14: 2023 Financial Performance
2023 Financial Performance Stable financial performance Strong cashflow and Updated 2024 Guidance balance sheet Leverage EBITDA margin 3.6x 67% EBITDA Total FY23 $92-96M EBITDA NORMALISED FREE CASH FLOW EBITDA to FCF Net Assets Dividend $87M $62M conversion $1.32 12.0 EBITDA reflecting growth in jet
Slide 15: Decommissioning and new storage complete
Decomissioning and new storage complete Shut-down and decommissioning complete, on time and on budget Workforce transition complete with 100% of employees who left the business being supported into new opportunities Over 100 million litres of private storage commissioned taking total available stora
Slide 16: Keeping Aotearoa New Zealand moving
Keeping Aotearoa New Zealand moving 1,258ML JET FUEL 72% PCP Highest jet fuel demand since 2019 3,370ML DIESEL 1,099ML Pipeline utilisation Delivered to market from Marsden Point 2% PCP 83% (average FY23) Terminal PETROL 1,013ML PCP no change
Slide 17: Channel's infrastructure will be required to support changing fuel demand
Channel’s infrastructure will be required to support changing fuel demand Marsden Point Throughput (Million Litres) • Supporting a stable medium-term diesel 4,500 outlook and resilient transition of petrol 4,000 3,500 • Channel’s infrastructure critical to 3,000 support expected growing jet demand 2
Slide 18: Opportunity to support Sustainable Aviation Fuel
Opportunity to support Sustainable Aviation Fuel KEY Channel is uniquely placed with the opportunity to receive and store imported SAF or manufacture SAF, blended Indicative eSAF production facility* onsite with existing jet fuel supply Decommissioned *illustrative of our site 18
Slide 19: Progress towards world-class
Progress towards world-class Supporting long-term asset resilience and positioning Channel as a partner of choice for fuel infrastructure Systems Infrastructure People and High Performance and Processes and Performance Capabilities Culture Regular customer Long term asset Increasing resourcing Regul
Slide 20: Investment in resilient supply chain for New Zealand
Investment in resilient supply chain for New Zealand Just Transition Seismic strengthening of bunds Customer Scope 3 emissions[1] 20
Slide 21: Unlocking growth opportunities outside of Marsden Point
Unlocking growth opportunities outside of Marsden Point • Proven track record as a critical infrastructure provider • Fuel markets undergoing transition – Channel open to owning or operating other fuel infrastructure assets if parties are looking to sell • Most interested in aviation and diesel asse
Slide 22: Resolutions and Voting
Resolutions and Voting James Miller Chair 22
Slide 23: Resolution 1
That Directors be authorised to fix the fees and Resolution 1 expenses of EY as auditors to the Company for the year ending 31 December 2024.
Slide 24: Director Appointment Process
Director Appointment Process Skillset Gap Analysis Identification International Candidate Assessment Interviews with Candidate checks of skillset gap search (via Board Shareholder Nominations referees, Full Board with reference international Review independence approval Committee of Interview appoin
Slide 25: Resolution 2
That Ms Vanessa Stoddart, who retires by rotation Resolution 2 in accordance with clause 8.9 of the Constitution, be re-elected as a Director of the Company
Slide 26: Resolution 2
Resolution 2 • Extensive experience in transformation, legal and governance roles, including on the Health NZ Board, Waste Management, the Financial Markets Authority and the Ministry of Business, Innovation and Employment, along with previous executive experience at Air New Zealand and Carter Holt
Slide 27: Resolution 3
That Mr Andrew Brewer, who retires in accordance Resolution 3 with clause 8.8 of the Constitution, be elected as a Director of the Company
Slide 28: Resolution 3
Resolution 3 • A career in world-class terminal operations and petroleum operations leadership • Depth of knowledge of health and safety practices and operational excellence • Previous experience as Chief Operating Officer of Refining NZ Andrew Brewer Non-Independent Director Appointed: December 202
Slide 29: Resolution 4
That Ms Felicity Underhill, who retires in Resolution 4 accordance with clause 8.8 of the Constitution, be elected as a Director of the Company
Slide 30: Resolution 4
Resolution 4 • International experience in future fuels, in particular SAF, and was one of the early movers working on energy transition challenges and projects across the Asia Pacific region • Deep executive experience with Origin and Fortescue, and governance experience on the Australian Hydrogen
Slide 31: Resolution 5
a. That all work on the decommissioning of the Marsden Point Refinery be suspended once the safety of staff and contractors have been addressed, pending the delivery of an independent report by an appropriately qualified engineering firm, on the costs, benefits and estimated schedule of reinstating
Slide 32: Reasons for Board's recommendation against Resolution 5
Reasons for Board’s recommendation against Resolution 5 • Channel is supportive of improving fuel security and is willing and able to invest in financially viable proposals: • discussions with Government and customers are underway for additional fuel storage • manufacturing SAF represents a better l
Slide 33: Resolution 6
That Mr Karl Barkley, who is nominated as a director by a Resolution 6 Shareholder of the Company in accordance with Listing Rule 2.3.1, be elected as a Director of the Company.
Slide 34: Resolution 6
Resolution 6 Karl Barkley • Experience as fitter/welder, boiler operator and maintenance engineer • Experience as a business owner including hiring staff • Strong health and safety adherence • Involvement in community projects including Chairman of “Save the Kingston Flyer” • Having stood for ICC El
Slide 35: Resolution 7
That Mr Daniel Reurich, who is nominated as a director by Resolution 7 a Shareholder of the Company in accordance with Listing Rule 2.3.1, be elected as a Director of the Company.
Slide 36: Resolution 7
Resolution 7 • Background is in mechanical engineering and Daniel Reurich later began an Information Technology company which implements and supports Linux and Open Source Software based solutions. • Mr. Reurich was a council member and later treasurer for the New Zealand Open Source Society and was
Slide 37: General Business
of A/ A) Channel Infrastructure NZ General Business
Slide 38: This concludes the 2024 Annual Shareholders' Meeting
This concludes the 2024 Annual Shareholders’ Meeting
Channel Infrastructure NZ — Shareholder Meeting (April 2024) on 6ix