Napier Port Holdings Ltd · NZX:NPH
Napier Port — H1 2020 Earnings Presentation
80 slides from Napier Port's earnings presentation, May 2020
Slide 1: Standing Strong With Our Region: Half Year Results 2020
STANDING STRONG WITH OUR REGION HALF YEAR RESULTS 2020
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation has been prepared by Napier Port Holdings Limited (together with Port of Napier Limited, "Napier Past performance: Any past performance information given in this presentation is given for illustrative purposes only Port"). This presentation is being
Slide 3: Presenting Today
PRESENTING TODAY ALASDAIR MACLEOD TODD DAWSON KRISTEN LIE CHAIRMAN CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER 3 | STRICTLY CONFIDENTIAL
Slide 4: Agenda
AGENDA • Review of first half year highlights • Trade results • Financial performance • Investment programme and 6 Wharf • COVID-19 impact and response • Trading update and outlook 4 | STRICTLY CONFIDENTIAL
Slide 5: Highlights
NAPIER® PORT Te Herenga Waka o Al
Slide 6: Our Strategy Builds on a Strong Business
OUR STRATEGY BUILDS ON A STRONG BUSINESS A LONG TERM ASSET ESSENTIAL TO THE HEALTH OF THE HAWKE’S BAY ECONOMY RELEVANCE DURING COVID-19 AN INFRASTRUCTURE ASSET ESSENTIAL TO THE HEALTH OF THE HAWKE’S BAY ECONOMY Napier Port is an essential regional infrastructure asset and, by connecting Hawke’s Bay
Slide 7: First Half Year Highlights
FIRST HALF YEAR HIGHLIGHTS Positive operating result in line with expectations at the beginning of the year, however impacted by COVID-19 late in the period A buoyant local economy and rural sector saw solid primary sector exports and continued investment in Hawke’s Bay Key Chinese export market for
Slide 8: First Half Year Highlights: Strategic Projects Update
FIRST HALF YEAR HIGHLIGHTS STRATEGIC PROJECTS UPDATE A PLATFORM FOR GROWTH • 6 Wharf • HEB construction contract signed • Ground broken on 5th of February • Good early progress with resources onsite • Alert Level 4 shutdown, work recommenced late April with Alert Level 3 • No material change to 6 Wh
Slide 9: Log Export Decline Leads Trade Volume Result Down 4.9%
LOG EXPORT DECLINE LEADS TRADE VOLUME RESULT DOWN 4.9% TRADE OVERVIEW COMPARED TO HY2019 Variance Volume HY2020 HY2019 kT / TEU % Total cargo (kT) 2,527 2,656 -129 -4.9 Containerised cargo (TEU) 135,000 126,000 +9,000 +7.5 Bulk cargo (kT) 1,597 1,724 -126 -7.3 - Logs exports (kT) 1,184 1,247 -63 -5.
Slide 10: Continued Revenue Growth and Net Profit Benefits From One-Off Gains
CONTINUED REVENUE GROWTH AND NET PROFIT BENEFITS FROM ONE-OFF GAINS Variance HY2020 HY2019 $M $M $M % Revenue 52.3 48.7 +3.6 +7.5 Result from operations 21.7 22.1 -0.4 -1.6 Net profit after tax 12.8 9.2 +3.7 +40.0 Cash flow from operations 13.4 11.3 +2.1 +18.4 • Revenue growth driven by Container Se
Slide 11: Underlying Growth Across All Key Pro Forma Metrics
UNDERLYING GROWTH ACROSS ALL KEY PRO FORMA METRICS Variance Pro forma HY2020 HY2019 $M $M $M % EBITDA 21.5 21.1 +0.4 +2.0 Net profit after tax 11.2 10.5 +0.7 +6.7 Cash flow from operations 13.2 13.0 +0.2 +1.7 11 | STRICTLY CONFIDENTIAL
Slide 12: Financial & Operating Performance
FINANCIAL & OPERATING PERFORMANCE
Slide 13: Revenue Growth Across Container Services and Cruise
REVENUE GROWTH ACROSS CONTAINER SERVICES AND CRUISE • Total revenue growth of 7.5% half year-on-half year (HoH) • Container services up 12.1%, cruise up 22.5%, decrease of 3.5% in bulk cargo HY2020 REVENUE Other Cruise $1.2m $4.2m Container services Millions Bulk cargo $30.9m $16.0m 13 | STRICTLY CO
Slide 14: Container Services - Growth in Volume and Average Rate
CONTAINER SERVICES - GROWTH IN VOLUME AND AVERAGE RATE • Revenue up 12.1% HoH • Container volume up 9,000 TEU (7.5%) • Average revenue per TEU up 4.2% HoH (up 1.3% against FY2019) • ARPU1 increase HoH from higher Port Pack volume, infrastructure levy (implemented post HY2019), offset by container mi
Slide 15: Bulk Cargo Revenue Reduced on Log Export Volumes
BULK CARGO REVENUE REDUCED ON LOG EXPORT VOLUMES • Revenue down 3.5% HoH • Lower revenue driven by 7.3% fall in Bulk Cargo tonnes • ARPU increase of 4.1% due to tariffs, cargo mix offset by ceased hardstand levy and fewer vessels berthed $35 $11.50 FY2020 BULK CARGO VOLUME 32.3 $30 $11.00 Average re
Slide 16: Log Volumes Impacted by China Inventory and COVID-19
LOG VOLUMES IMPACTED BY CHINA INVENTORY AND COVID-19 • Log exports softened in Q2 as high Chinese inventory compounded by COVID-19 and the extended Chinese New Year period supressed demand • Some sailings took place during Alert Level 4 to clear the port site for essential cargo 3.0 HY2020 ALL CARGO
Slide 17: Record Cruise Season
RECORD CRUISE SEASON • Revenue up 22.5% HoH • Higher revenue driven by 76 cruise visits – up 10 additional visits from HY2019 and 6 additional visits from FY2019 • FY2020 cruise season now complete – 11 visits fewer than forecast due to Covid-19 (7) and unfavourable weather (4) • Cruise passenger le
Slide 18: Pro Forma EBITDA Growth, Margin % In-Line
PRO FORMA EBITDA GROWTH, MARGIN % IN-LINE • Pro forma EBITDA up $0.4m (2.0%) HoH • EBITDA margins in-line with expectations • Employee benefit expenses increased due to employee numbers • Maintenance expenses up due to increased mobile plant service costs • Pro forma other operating expenses up due
Slide 19: Pro Forma NPAT Driven by Pro Forma EBITDA Growth
PRO FORMA NPAT DRIVEN BY PRO FORMA EBITDA GROWTH • Pro forma NPAT up $0.7m (6.7%) HoH • Pro forma EBITDA increase $0.3m (net of tax) • Capitalised finance costs $0.4m (net of tax) in HY20201 $15.0 12.8 $12.5 11.2 10.5 $10.0 9.2 Millions $7.5 $5.0 $2.5 $- HY2019 HY2020 NPAT (reported) Pro forma NPAT
Slide 20: Strategic Development Investment Continues
STRATEGIC DEVELOPMENT INVESTMENT CONTINUES • Capital expenditure* $27.2m • Third tug, Kaweka, delivered in December and operating as frontline tug • Thames Street off-port depot development completed May 2020 $30 HY2020 27.2 Other development Compliance and other $25 $0.6m $0.2m $20 18.5 Additional
Slide 21: 6 Wharf Construction on Course
6 WHARF CONSTRUCTION ON COURSE • Construction contract with HEB signed November 2019 • Resources mobilised and ground broken 5th February 2020 • Construction works halted during Alert Level 4 (~5 weeks), recommenced with AL3 • No material change to completion timing (late 2022) or cost ($173m - $190
Slide 22: 6 Wharf Construction Fully Funded
6 WHARF CONSTRUCTION FULLY FUNDED HY2020 HY2019 Var $M $M $M Operating cash flows 13.4 11.3 +2.1 Investing cash flows (23.2) (7.5) -15.7 Financing cash flows (5.4) (3.9) -1.5 Net decrease in cash & cash equivalents (15.1) - • Cash & cash equivalents balance of $16.1m ($31.2m at end FY19) • $180m und
Slide 23: COVID-19
NAPIER® PORT Te Herenga Waka o Al
Slide 24: COVID-19: Sharp Reduction in Forestry Trade
COVID-19: SHARP REDUCTION IN FORESTRY TRADE TRADE IMPACT The high Chinese log market inventory and extended Chinese new year period due to COVID-19 slowed log exports Alert Level 4 (‘AL4’) from 26th March, Alert Level 3 from 28th April Main operational impacts during AL4: • timber, logs, pulp and ot
Slide 25: COVID-19: Prudent Response Plan
COVID-19: PRUDENT RESPONSE PLAN RESPONSE People-first safety measures, COVID related leave support Despite disrupted operations, essential services to the region maintained Aiming to reduce or defer expenditure while looking after our people and not compromising operational capability Measures to pr
Slide 26: Interim Dividend Cancelled Amid COVID-19 Uncertainty
INTERIM DIVIDEND CANCELLED AMID COVID-19 UNCERTAINTY Prudent approach to the potential impact of COVID-19 on trade given uncertainty over the extent and length of downturn Looking forward to the post 6 Wharf balance sheet capital structure Target of peak Debt to EBITDA of ~3.5x and maintaining coven
Slide 27: Conclusion & Outlook
CONCLUSION & OUTLOOK
Slide 28: April & May Trade Update
APRIL & MAY TRADE UPDATE April trade volume down approx. 40% by weight and 29% by value vs PY May volume also expected to be materially down for month vs PY Forestry trades have been quick to restart with on-port inventory building quickly after AL4 Key seasonal reefer trade volumes to date have bee
Slide 29: Conclusion & Outlook
CONCLUSION & OUTLOOK Playing ‘with the wind’ in the first half, ‘into the wind’ in the second half Positive growth in first half-year results, good progress on strategic growth initiatives Proactive and prudent response to COVID-19 uncertainty Material uncertainty remains in full year earnings outlo
Slide 30: Questions
NAPIER® fe Hereng:
Slide 31: Appendices
APPENDICES The following appended financial information provides a summary of financial information for the half year period ended 31 March 2020 (HY2020) compared to corresponding half year period in 2019 (HY2019) on a basis consistent with that described the prospective financial information (PFI)
Slide 32: Revenue
REVENUE NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Revenue from Port Operations 84,587 89,884 97,432 47,683 51,240 Revenue Other 2,092 1,865 2,185 975 1,044 Total operating income 86,679 91,749 99,616 48,658 52,284 NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Container Services 60,615 58,005 61,169 27,5
Slide 33: Operating Expenses
OPERATING EXPENSES Employee benefit expenses NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Wages & salaries 22,908 23,896 26,862 12,783 14,870 Other staff expenses 3,288 2,455 2,130 980 1,159 Total employee benefit expenses 26,196 26,352 28,992 13,763 16,029 Maintenance expenses NZ$000 FY2017 FY2018 FY2
Slide 34: Operating Expenses
OPERATING EXPENSES Other operating expenses NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Administration expenses 4,241 4,928 5,880 2,571 2,956 Occupancy expenses 3,336 5,207 5,393 2,434 3,085 Contract labour 4,038 4,139 4,335 2,092 2,268 Site expenses 1,307 1,626 2,315 1,105 702 Other staff expenses 1,
Slide 35: Capital Expenditure
CAPITAL EXPENDITURE NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Development capex 6 Wharf pre-construction 1,214 957 3,442 1,554 970 6 Wharf construction - - - - 11,197 Additional tug - - 4,939 118 4,681 Acquisition and development of off-port depot services land 5,171 4,101 1,930 32 2,565 Acquisition
Slide 36: Reconciliation of Pro Forma EBITDA
RECONCILIATION OF PRO FORMA EBITDA NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Statutory net profit after tax 16,706 17,576 6,848 9,160 12,827 add: Taxation expense 5,594 6,859 5,182 4,190 2,920 add: Net interest expense 3,965 4,107 10,437 2,026 (126) add: Depreciation and amortisation 10,626 10,849 1
Slide 37: Reconciliation of Underlying EBITDA to Result From Operating Activities
RECONCILIATION OF UNDERLYING EBITDA TO RESULT FROM OPERATING ACTIVITIES NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Result from operating activities 37,354 38,912 41,987 22,079 21,736 Adjustments: Impairments of property, plant and equipment (436) (135) (190) (150) - Underlying reported EBITDA 36,918
Slide 38: Reconciliation of Pro Forma NPAT
RECONCILIATION OF PRO FORMA NPAT NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Statutory net profit after tax 6,848 9,160 12,827 Pro forma adjustments: Offer costs 6,404 - (201) Other (income) expenses (135) (25) 327 Incremental listed company costs (1,297) (810) (199) Impairment of joint venture 852 80
Slide 39: Reconciliation of Pro Forma Net Cash Flows From Operating Activities
RECONCILIATION OF PRO FORMA NET CASH FLOWS FROM OPERATING ACTIVITIES NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Statutory net cash flows from operating activities 29,336 11,340 13,426 Pro forma adjustments Offer costs 5,643 831 n/a Incremental listed company costs (1,393) (714) (199) Listed company c
Slide 40: Further Information on Napier Port
FURTHER INFORMATION ON NAPIER PORT TO LEARN MORE ABOUT NAPIER PORT AND WHAT IT DOES PLEASE REFER TO: • Our website at napierport.co.nz • The Management Roadshow Presentation available on the Disclose Register published in connection with the initial public offer of Napier Port Holdings Limited avail
Slide 41: Standing Strong With Our Region: Half Year Results 2020
STANDING STRONG WITH OUR REGION HALF YEAR RESULTS 2020
Slide 42: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation has been prepared by Napier Port Holdings Limited (together with Port of Napier Limited, "Napier Past performance: Any past performance information given in this presentation is given for illustrative purposes only Port"). This presentation is being
Slide 43: Presenting Today
PRESENTING TODAY ALASDAIR MACLEOD TODD DAWSON KRISTEN LIE CHAIRMAN CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER 3 | STRICTLY CONFIDENTIAL
Slide 44: Agenda
AGENDA • Review of first half year highlights • Trade results • Financial performance • Investment programme and 6 Wharf • COVID-19 impact and response • Trading update and outlook 4 | STRICTLY CONFIDENTIAL
Slide 45: Highlights
NAPIER® PORT Te Herenga Waka o Al
Slide 46: Our Strategy Builds on a Strong Business
OUR STRATEGY BUILDS ON A STRONG BUSINESS A LONG TERM ASSET ESSENTIAL TO THE HEALTH OF THE HAWKE’S BAY ECONOMY RELEVANCE DURING COVID-19 AN INFRASTRUCTURE ASSET ESSENTIAL TO THE HEALTH OF THE HAWKE’S BAY ECONOMY Napier Port is an essential regional infrastructure asset and, by connecting Hawke’s Bay
Slide 47: First Half Year Highlights
FIRST HALF YEAR HIGHLIGHTS Positive operating result in line with expectations at the beginning of the year, however impacted by COVID-19 late in the period A buoyant local economy and rural sector saw solid primary sector exports and continued investment in Hawke’s Bay Key Chinese export market for
Slide 48: First Half Year Highlights: Strategic Projects Update
FIRST HALF YEAR HIGHLIGHTS STRATEGIC PROJECTS UPDATE A PLATFORM FOR GROWTH • 6 Wharf • HEB construction contract signed • Ground broken on 5th of February • Good early progress with resources onsite • Alert Level 4 shutdown, work recommenced late April with Alert Level 3 • No material change to 6 Wh
Slide 49: Log Export Decline Leads Trade Volume Result Down 4.9%
LOG EXPORT DECLINE LEADS TRADE VOLUME RESULT DOWN 4.9% TRADE OVERVIEW COMPARED TO HY2019 Variance Volume HY2020 HY2019 kT / TEU % Total cargo (kT) 2,527 2,656 -129 -4.9 Containerised cargo (TEU) 135,000 126,000 +9,000 +7.5 Bulk cargo (kT) 1,597 1,724 -126 -7.3 - Logs exports (kT) 1,184 1,247 -63 -5.
Slide 50: Continued Revenue Growth and Net Profit Benefits From One-Off Gains
CONTINUED REVENUE GROWTH AND NET PROFIT BENEFITS FROM ONE-OFF GAINS Variance HY2020 HY2019 $M $M $M % Revenue 52.3 48.7 +3.6 +7.5 Result from operations 21.7 22.1 -0.4 -1.6 Net profit after tax 12.8 9.2 +3.7 +40.0 Cash flow from operations 13.4 11.3 +2.1 +18.4 • Revenue growth driven by Container Se
Slide 51: Underlying Growth Across All Key Pro Forma Metrics
UNDERLYING GROWTH ACROSS ALL KEY PRO FORMA METRICS Variance Pro forma HY2020 HY2019 $M $M $M % EBITDA 21.5 21.1 +0.4 +2.0 Net profit after tax 11.2 10.5 +0.7 +6.7 Cash flow from operations 13.2 13.0 +0.2 +1.7 11 | STRICTLY CONFIDENTIAL
Slide 52: Financial & Operating Performance
FINANCIAL & OPERATING PERFORMANCE
Slide 53: Revenue Growth Across Container Services and Cruise
REVENUE GROWTH ACROSS CONTAINER SERVICES AND CRUISE • Total revenue growth of 7.5% half year-on-half year (HoH) • Container services up 12.1%, cruise up 22.5%, decrease of 3.5% in bulk cargo HY2020 REVENUE Other Cruise $1.2m $4.2m Container services Millions Bulk cargo $30.9m $16.0m 13 | STRICTLY CO
Slide 54: Container Services - Growth in Volume and Average Rate
CONTAINER SERVICES - GROWTH IN VOLUME AND AVERAGE RATE • Revenue up 12.1% HoH • Container volume up 9,000 TEU (7.5%) • Average revenue per TEU up 4.2% HoH (up 1.3% against FY2019) • ARPU1 increase HoH from higher Port Pack volume, infrastructure levy (implemented post HY2019), offset by container mi
Slide 55: Bulk Cargo Revenue Reduced on Log Export Volumes
BULK CARGO REVENUE REDUCED ON LOG EXPORT VOLUMES • Revenue down 3.5% HoH • Lower revenue driven by 7.3% fall in Bulk Cargo tonnes • ARPU increase of 4.1% due to tariffs, cargo mix offset by ceased hardstand levy and fewer vessels berthed $35 $11.50 FY2020 BULK CARGO VOLUME 32.3 $30 $11.00 Average re
Slide 56: Log Volumes Impacted by China Inventory and COVID-19
LOG VOLUMES IMPACTED BY CHINA INVENTORY AND COVID-19 • Log exports softened in Q2 as high Chinese inventory compounded by COVID-19 and the extended Chinese New Year period supressed demand • Some sailings took place during Alert Level 4 to clear the port site for essential cargo 3.0 HY2020 ALL CARGO
Slide 57: Record Cruise Season
RECORD CRUISE SEASON • Revenue up 22.5% HoH • Higher revenue driven by 76 cruise visits – up 10 additional visits from HY2019 and 6 additional visits from FY2019 • FY2020 cruise season now complete – 11 visits fewer than forecast due to Covid-19 (7) and unfavourable weather (4) • Cruise passenger le
Slide 58: Pro Forma EBITDA Growth, Margin % In-Line
PRO FORMA EBITDA GROWTH, MARGIN % IN-LINE • Pro forma EBITDA up $0.4m (2.0%) HoH • EBITDA margins in-line with expectations • Employee benefit expenses increased due to employee numbers • Maintenance expenses up due to increased mobile plant service costs • Pro forma other operating expenses up due
Slide 59: Pro Forma NPAT Driven by Pro Forma EBITDA Growth
PRO FORMA NPAT DRIVEN BY PRO FORMA EBITDA GROWTH • Pro forma NPAT up $0.7m (6.7%) HoH • Pro forma EBITDA increase $0.3m (net of tax) • Capitalised finance costs $0.4m (net of tax) in HY20201 $15.0 12.8 $12.5 11.2 10.5 $10.0 9.2 Millions $7.5 $5.0 $2.5 $- HY2019 HY2020 NPAT (reported) Pro forma NPAT
Slide 60: Strategic Development Investment Continues
STRATEGIC DEVELOPMENT INVESTMENT CONTINUES • Capital expenditure* $27.2m • Third tug, Kaweka, delivered in December and operating as frontline tug • Thames Street off-port depot development completed May 2020 $30 HY2020 27.2 Other development Compliance and other $25 $0.6m $0.2m $20 18.5 Additional
Slide 61: 6 Wharf Construction on Course
6 WHARF CONSTRUCTION ON COURSE • Construction contract with HEB signed November 2019 • Resources mobilised and ground broken 5th February 2020 • Construction works halted during Alert Level 4 (~5 weeks), recommenced with AL3 • No material change to completion timing (late 2022) or cost ($173m - $190
Slide 62: 6 Wharf Construction Fully Funded
6 WHARF CONSTRUCTION FULLY FUNDED HY2020 HY2019 Var $M $M $M Operating cash flows 13.4 11.3 +2.1 Investing cash flows (23.2) (7.5) -15.7 Financing cash flows (5.4) (3.9) -1.5 Net decrease in cash & cash equivalents (15.1) - • Cash & cash equivalents balance of $16.1m ($31.2m at end FY19) • $180m und
Slide 63: COVID-19
NAPIER® PORT Te Herenga Waka o Al
Slide 64: COVID-19: Sharp Reduction in Forestry Trade
COVID-19: SHARP REDUCTION IN FORESTRY TRADE TRADE IMPACT The high Chinese log market inventory and extended Chinese new year period due to COVID-19 slowed log exports Alert Level 4 (‘AL4’) from 26th March, Alert Level 3 from 28th April Main operational impacts during AL4: • timber, logs, pulp and ot
Slide 65: COVID-19: Prudent Response Plan
COVID-19: PRUDENT RESPONSE PLAN RESPONSE People-first safety measures, COVID related leave support Despite disrupted operations, essential services to the region maintained Aiming to reduce or defer expenditure while looking after our people and not compromising operational capability Measures to pr
Slide 66: Interim Dividend Cancelled Amid COVID-19 Uncertainty
INTERIM DIVIDEND CANCELLED AMID COVID-19 UNCERTAINTY Prudent approach to the potential impact of COVID-19 on trade given uncertainty over the extent and length of downturn Looking forward to the post 6 Wharf balance sheet capital structure Target of peak Debt to EBITDA of ~3.5x and maintaining coven
Slide 67: Conclusion & Outlook
CONCLUSION & OUTLOOK
Slide 68: April & May Trade Update
APRIL & MAY TRADE UPDATE April trade volume down approx. 40% by weight and 29% by value vs PY May volume also expected to be materially down for month vs PY Forestry trades have been quick to restart with on-port inventory building quickly after AL4 Key seasonal reefer trade volumes to date have bee
Slide 69: Conclusion & Outlook
CONCLUSION & OUTLOOK Playing ‘with the wind’ in the first half, ‘into the wind’ in the second half Positive growth in first half-year results, good progress on strategic growth initiatives Proactive and prudent response to COVID-19 uncertainty Material uncertainty remains in full year earnings outlo
Slide 70: Questions
NAPIER® fe Hereng:
Slide 71: Appendices
APPENDICES The following appended financial information provides a summary of financial information for the half year period ended 31 March 2020 (HY2020) compared to corresponding half year period in 2019 (HY2019) on a basis consistent with that described the prospective financial information (PFI)
Slide 72: Revenue
REVENUE NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Revenue from Port Operations 84,587 89,884 97,432 47,683 51,240 Revenue Other 2,092 1,865 2,185 975 1,044 Total operating income 86,679 91,749 99,616 48,658 52,284 NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Container Services 60,615 58,005 61,169 27,5
Slide 73: Operating Expenses
OPERATING EXPENSES Employee benefit expenses NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Wages & salaries 22,908 23,896 26,862 12,783 14,870 Other staff expenses 3,288 2,455 2,130 980 1,159 Total employee benefit expenses 26,196 26,352 28,992 13,763 16,029 Maintenance expenses NZ$000 FY2017 FY2018 FY2
Slide 74: Operating Expenses
OPERATING EXPENSES Other operating expenses NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Administration expenses 4,241 4,928 5,880 2,571 2,956 Occupancy expenses 3,336 5,207 5,393 2,434 3,085 Contract labour 4,038 4,139 4,335 2,092 2,268 Site expenses 1,307 1,626 2,315 1,105 702 Other staff expenses 1,
Slide 75: Capital Expenditure
CAPITAL EXPENDITURE NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Development capex 6 Wharf pre-construction 1,214 957 3,442 1,554 970 6 Wharf construction - - - - 11,197 Additional tug - - 4,939 118 4,681 Acquisition and development of off-port depot services land 5,171 4,101 1,930 32 2,565 Acquisition
Slide 76: Reconciliation of Pro Forma EBITDA
RECONCILIATION OF PRO FORMA EBITDA NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Statutory net profit after tax 16,706 17,576 6,848 9,160 12,827 add: Taxation expense 5,594 6,859 5,182 4,190 2,920 add: Net interest expense 3,965 4,107 10,437 2,026 (126) add: Depreciation and amortisation 10,626 10,849 1
Slide 77: Reconciliation of Underlying EBITDA to Result From Operating Activities
RECONCILIATION OF UNDERLYING EBITDA TO RESULT FROM OPERATING ACTIVITIES NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Result from operating activities 37,354 38,912 41,987 22,079 21,736 Adjustments: Impairments of property, plant and equipment (436) (135) (190) (150) - Underlying reported EBITDA 36,918
Slide 78: Reconciliation of Pro Forma NPAT
RECONCILIATION OF PRO FORMA NPAT NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Statutory net profit after tax 6,848 9,160 12,827 Pro forma adjustments: Offer costs 6,404 - (201) Other (income) expenses (135) (25) 327 Incremental listed company costs (1,297) (810) (199) Impairment of joint venture 852 80
Slide 79: Reconciliation of Pro Forma Net Cash Flows From Operating Activities
RECONCILIATION OF PRO FORMA NET CASH FLOWS FROM OPERATING ACTIVITIES NZ$000 FY2017 FY2018 FY2019 HY2019 HY2020 Statutory net cash flows from operating activities 29,336 11,340 13,426 Pro forma adjustments Offer costs 5,643 831 n/a Incremental listed company costs (1,393) (714) (199) Listed company c
Slide 80: Further Information on Napier Port
FURTHER INFORMATION ON NAPIER PORT TO LEARN MORE ABOUT NAPIER PORT AND WHAT IT DOES PLEASE REFER TO: • Our website at napierport.co.nz • The Management Roadshow Presentation available on the Disclose Register published in connection with the initial public offer of Napier Port Holdings Limited avail