Channel Infrastructure Nz Limited · NZX:CHI

Channel Infrastructure Nz — HY25 Earnings Presentation

29 slides from Channel Infrastructure Nz's earnings presentation, Aug 26, 2025

  1. Slide 1: Financial Results

    Financial Results Change picture to the same one as the AR cover For the six months ended 30 June 2025 Change picture to cover of AR 26 August 2025 1

  2. Slide 2: Highlights and Operating Update

    ROB BUCHANAN, CHIEF EXECUTIVE OFFICER Highlights and Operating Update 2

  3. Slide 3: HY25 Financial Highlights – Continuing Operations

    HY25 Financial Highlights – Continuing Operations Total Revenue EBITDA Growth Capex (Margin %) Continue to invest $69.8m $70.2m $48.1m $48.5m in growth (69%) (69%) $66.8m +4% $69.2m $45.1m +5% $47.5m $12.7m $11.5m Underlying Underlying HY24 HY25 HY24 HY25 HY24 HY25 Revenue excl Wiri Wiri EBITDA excl

  4. Slide 4: HY25 Highlights

    HY25 Highlights Strong safety track record maintained Growth in EBITDA, despite loss of legacy Wiri lease revenue, reflected increases in contracted revenue, PPI escalation and cost discipline Throughput of 1.7 billion litres reflected relatively stable jet, petrol and diesel demand. Jet fuel demand

  5. Slide 5: Strong safety and operational performance

    Strong safety and operational performance Process safety incidents1 Throughput (billion litres) Number of ships 1.7 1.8 1.7 1.7 36 6 1.6 34 34 33 5 28 26 4 3 More Long-Range 2 13% class vessels due to more Private Storage 1 0 CONCAWE 2 2022 2023 2024 HY25 1H23 2H23 1H24 2H24 1H25 2H22 1H23 2H23 1H24

  6. Slide 6: Stable throughput

    Stable throughput Jet throughput Jet Throughput Million Litres • HY25 jet fuel throughput down 2% impacted by planned rolling tank 1,404 1,258 outage program at Wiri 699 • Jet throughput for HY25 in line with Channel’s expectations based 679 730 on the slower rebound of New Zealand tourism compared

  7. Slide 7: Capital projects: Safely delivered within budget and schedule

    Capital projects: Safely delivered within budget and schedule $19 million invested in Channel’s infrastructure in HY25 • Z Energy private storage on track for early completion in H2 2026 (previously Q1 2027), now over 50% complete and tracking within budget • Bitumen contract awarded in May 2025 to

  8. Slide 8: Financial Update

    ALEXA PRESTON, CHIEF FINANCIAL OFFICER Financial Update Continuing Operations 8

  9. Slide 9: Strong and stable financial result in line with guidance

    Strong and stable financial result in line with guidance Continuing Operations Reported Result HY25 HY24 • Strong and stable EBITDA margin of 69% (HY24: 69%) % change ($M) ($M) • Wiri lease legacy arrangement expired 28 February 2025: EBITDA Revenue 70.2 69.8 1% contribution $1 million HY25 ($3 mill

  10. Slide 10: Revenue and Operating Costs

    Revenue and Operating Costs HY25 HY24 Revenue % change ($M) ($M) • Contracted step down in fixed terminal fee from 1 April 2025 Terminal fees – fixed 24.0 24.4 (2%) • Variable terminal fees up reflecting PPI uplift of 4.18% partially offset Terminal fees – variable 31.5 30.8 2% by lower throughput C

  11. Slide 11: Investment for resilience and growth

    Investment for resilience and growth HY25 HY24 ($M) ($M) Import Terminal System 1.8 0.8 Tank maintenance 4.2 3.5 Total maintenance capex 6.0 4.3 % of revenue 8.5% 6.0% Growth capital expenditure 11.5 12.7 Conversion capex 1.7 8.5 Total capital expenditure 1 19.1 25.5 • Maintenance capex spend reflec

  12. Slide 12: Cashflow

    Cashflow 400 Net Debt Movement across HY25 Free cash-flow from operations1 $35.2 million 350 296 (50) 11 297 300 27 (3) 8 7 250 200 150 100 50 - 2 3 Net Debt FY24 Operating cashflow Financing Maintenance capex Ordinary dividends Conversion costs Growth capex Net Debt HY25 • HY25 Normalised Free Cash

  13. Slide 13: Strong balance sheet

    Strong balance sheet Covenant HY25 FY24 Debt Maturity Profile ($M) 350 Net debt1 $297m $296m Bank Retail bonds 300 Liquidity headroom $138m $138m 5.8% p.a. 250 Leverage 3.1x 3.1x (Net debt/Rolling 12-month EBITDA) 200 3.0% p.a. Gearing <55% 27% 27% 150 (Net debt/(Net debt + Equity)) 6.75% p.a. 100 I

  14. Slide 14: Refreshed Capital Allocation Framework

    Refreshed Capital Allocation Framework Maintenance Capex Net Cash Flow from Continuing Operations 8-10% revenue Normalised Free Cash Flow1 Dividend Policy2 To pay out 70-90% of Normalised Free Cash Flow on average over time. Deliver a stable and growing dividend Excess Cash Flow available for Deleve

  15. Slide 15: Guidance and outlook

    Guidance and outlook FY25 Guidance FY25 Guidance unchanged • FY25 Guidance unchanged $89 – 94 million • Given current economic environment and Air New Zealand’s previously Normalised EBITDA (FY24 excluding Wiri lease: $89.1 million) signalled aircraft availability issues, outlook for jet demand rema

  16. Slide 16: Strategy Update

    ROB BUCHANAN, CHIEF EXECUTIVE OFFICER Strategy Update 16

  17. Slide 17: Our Strategy

    Our Strategy 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 Disciplined Capital Good Neighbour, Operator Culture the C

  18. Slide 18: Operating environment update

    Operating environment update New Zealand context • New Zealand Government announced in February an increase to the Minimum Stockholding Obligation (for diesel importers with more than 10% market share, including Channel’s customers) from 21 days to 28 days, an equivalent of ~70 million litres of add

  19. Slide 19: Marsden Point Energy Precinct Concept

    Energy Security Opportunities SAF Manufacture Expansion (Phase 2) Future Fuels Manufacturing Opportunities Public Access (Mair Road) Transpower, Northpower Additional Storage Opportunities Services for SAF Manufacture Current Facility Lease (to Long-term Tenant) Leased to Third Parties Truck Loading

  20. Slide 20: Future fuels at Marsden Point

    Future fuels at Marsden Point The unique combination of features and attributes of Channel’s Marsden Point site, which are unparalleled at any other industrial site in New Zealand, means Channel is well positioned to support both increased fuel security and New Zealand’s energy transition Potential

  21. Slide 21: Other organic growth initiatives

    Other organic growth initiatives Electricity peaking project • Front-end engineering and design of a potential diesel peaker is nearing completion, following which Channel will seek electricity market participant support to progress with this project • Under the proposed model, Channel would earn ca

  22. Slide 22: Our growth priorities

    Our growth priorities Selective and disciplined approach to growth, with Marsden Point and our current supply chain the main focus Growth Priority Focus Areas #1 Marsden Point Energy Precinct Nearer term opportunities identified for: • Additional product storage #2 Synergistic consolidation along •

  23. Slide 23: All 2025 measures of delivery on track

    All 2025 measures of delivery on track STRATEGIC PILLAR MEASURE 2025 TARGET 1H25 PROGRESS STATUS Infrastructure partner of Safely home, every day Lost Time Injuries Zero Zero choice Diverse and engaged team Lift in employee engagement score Maintain Increased Reliable infrastructure Pipeline availab

  24. Slide 24: Appendix

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  25. Slide 25: Contracted revenue and throughput

    Contracted revenue and throughput Contracted Revenue Outlook ($M)1 Marsden Point Throughput (Million Litres) Outlook2 4,000 160 3,500 140 3,000 120 2,500 100 2,000 80 52% 49% 49% 49% 50% Fixed revenue % 51% 49% 50% of total revenue 52% 60 1,500 40 Contracted 1,000 Fixed Revenue 20 500 - 0 2024 2025

  26. Slide 26: Throughput drivers

    Throughput drivers Auckland Airport International Flight Movements New Zealand Light Vehicle Fleet 6,000 160 35k 140 4,000k 5,000 30k EV new registrations (RHS) 120 4,000 25k 100 3,000k 13% 20k 3,000 80 60 2,000k 18% 15k 2,000 40 10k 1,000 1,000k 65% 20 5k - - 28% Aug-23 Dec-19 Aug-22 Aug-19 Aug-20

  27. Slide 27: Contracted storage agreements since Import Terminal Conversion

    Contracted storage agreements since Import Terminal Conversion CAPITAL PROJECT ANNOUNCED PROGRESS FINANCIAL IMPACT CAPEX REVENUE TERM 100 million litres 29 Nov 2021 • Storage in service in FY23 safely, on Spent to June: $50 ~$9m per annum (prior to 10 years commencing, in private storage schedule an

  28. Slide 28: Glossary

    Glossary Normalised Free Cash-flow: Cash flow from continuing operations less financing costs and maintenance capex. Excludes growth capex and conversion costs. Pipeline availability: Pipeline available hours divided by the total hours in the period. 13% Pipeline utilisation: Pipeline required pumpi

  29. Slide 29: Important Information

    Important Information • This presentation contains forward looking statements concerning the • In light of these risks, results could differ materially from those stated, financial condition, results and operations of Channel Infrastructure NZ implied or inferred from the forward-looking statements

Channel Infrastructure NZ — HY25 Earnings Presentation on 6ix