Port Of Tauranga Limited · NZX:POT
Port Of Tauranga — FY2024 Earnings Presentation
56 slides from Port Of Tauranga's earnings presentation, Aug 23, 2024
Slide 1: Presentation to Analysts
Presentation to Analysts 23 August 2024
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: FY2024 key results summary
and nemesis at ee alone Net Profit After Tax oF $1171 $90.8 7 Ox. 112% 91% 3.9% = Exports Container crane rate $375.3, $4209 $417.4 159° 157 1321 «279 (3048 ave IContainer volumes Subsidiary and associate Total Recordable Injury milion TEUs* company earnings Frequency Rate 3 Pee 1 $150 $133 $9.4 Shi
Slide 4: Group underlying earnings down 12.8%
Group underlying earnings down 12.8% For the year ended 30 June 2024 Group underlying earnings $140 117.792 $120 111.317 102.375 102.718 $100 92.338 millions (NZD) $80 $60 $40 $20 $0 FY20 FY21 FY22 FY23 FY24 4
Slide 5: Group reported net profit after tax down 22%
Group reported net profit after tax down 22% For the year ended 30 June 2024 Group net profit after tax For the year ended June 2024 $140 117.136 $120 111.317 102.375 $100 88.679 90.849 millions (NZD) $80 $60 $40 $20 $0 FY20 FY21 FY22 FY23 FY24 5
Slide 6: Group underlying earnings
Group underlying earnings For the year ended 30 June 2024 $105 102.718 $100 $95 millions (NZD) 90.849 $90 (11.869) $85 $80 Underlying Profit Deferred tax impact of tax change Reported Profit 6
Slide 7: Ordinary dividends decreased 5.8%
Ordinary dividends decreased 5.8% For the year ended 30 June 2024 16 15.6 14.7 14.7 14 13.5 12.4 12 10 CPS 8 6 4 2 0 FY20 FY21 FY22 FY23 FY24 7
Slide 8: A much improved second half performance
A much improved second half performance For the year ended 30 June 2024 Group underlying earnings up 17.4% to $55.477 million in the second half $60.000 1/2 FY24 2/2 FY24 Movement 5.574 $50.000 Trade volumes tonnes 11,634,279 12,014,535 3.3% 4.861 Total containers (TEUs) 536,928 610,422 13.7% $40.00
Slide 9: Terminal storage revenues down 59%
Terminal storage revenues down 59% For the year ended 30 June 2024 Terminal container storage income $35 29.607 $30 27.204 25.481 $25 $20 $15 11.130 $10 6.200 $5 $0 FY20 FY21 FY22 FY23 FY24 9
Slide 10: Net debt / net debt + equity
Net debt / net debt + equity For the year ended 30 June 2024 Net debt / net debt + equity For the year ended June 2024 30.0% 25.5% 25.5% 25.0% 20.0% 17.3% 17.2% 16.9% 15.0% 10.0% 5.0% 0.0% FY20 FY21 FY22 FY23 FY24 10
Slide 11: Total trade down 4.2%
Total trade down 4.2% (- 8.5% half year ) For the year ended 30 June 2024 Total trade for the year ended June 2024 30 25.7 25.6 24.7 25 23.6 20 tonnes (millions) 15 16.3 15.9 15.7 15.8 10 9.4 9.7 9 7.8 5 0 FY21 FY22 FY23 FY24 Overall Export tonnes Import tonnes 11
Slide 12: New Zealand's largest port
New Zealand’s largest port Connecting New Zealand and the World Total New Zealand tonnes by port FY2024 Total New Zealand sea port cargo value FY2024 50 25 32% 32% 20 40 29% Tonnes (millions) NZD (Bilions) 15 30 Import Import Export Export 10 20 10% 10% 9% 11% 8% 7% 5 6% 5% 4% 10 7% 7% 4% 3% 2% 1% 4
Slide 13: Bulk cargo up by 1.4%
Bulk cargo up by 1.4% (+5% at the half year) For the year ended June 2024 Overall breakbulk volumes by commodity for the year ended June 2024 12,000,000 All Other Goods 10,000,000 Steel Salt Liquid Bulk 8,000,000 Cement Tonnes Grain 6,000,000 Fertilisers Other Wood Product 4,000,000 KiwiFruit Protei
Slide 14: New Zealand's largest container terminal
New Zealand’s largest container terminal Connecting New Zealand and the World New Zealand Ports total containers handled by quarter (FIGS MOT) 250,000 200,000 150,000 Containers 100,000 50,000 39% of New Zealand’s container trade - 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020
Slide 15: Total container volumes down 2.5%
Total container volumes down 2.5% (-15% at half year ) For the year ended 30 June 2024 Container volumes down 2.5% Year ended June 2024 1,300,000 1,251,741 1,241,061 1,200,831 1,200,000 1,177,350 1,147,350 1,100,000 1,000,000 TEU's 900,000 800,000 700,000 600,000 500,000 FY20 FY21 FY22 FY23 FY24 15
Slide 16: Import container volume down 4.9%
Import container volume down 4.9% (-17.9% at the half year) For the year ended 30 June 2024 For the year ended June 2024 450,000 438,738 430,000 409,841 410,233 410,000 404,285 390,000 384,145 370,000 350,000 TEU's 330,000 310,000 290,000 270,000 250,000 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23
Slide 17: Export container volume down 0.5%
Export container volume down 0.5% ( -8% at the half year ) For the year ended 30 June 2024 For the year ended June 2024 550,000 530,000 519,288 510,000 492,557 489,536 486,702 484,107 490,000 470,000 450,000 430,000 410,000 TEU's 390,000 370,000 350,000 330,000 310,000 290,000 270,000 250,000 FY20 F
Slide 18: Transhipment container volume down 2.5%
Transhipment container volume down 2.5% (-25% at the half year) For the year ended 30 June 2024 For the year ended June 2024 380,000 360,000 349,343 340,000 320,000 301,062 300,000 286,363 283,035 279,098 280,000 260,000 240,000 TEU's 220,000 200,000 180,000 160,000 140,000 120,000 100,000 FY20 FY21
Slide 19: Total dairy volume down 8.3%
Total dairy volume down 8.3% For the year ended 30 June 2024 Dairy – direct export and transhipment For the year ended June 2024 2,600,000 2,400,000 2,200,000 285,523 196,326 237,066 194,946 2,000,000 117,904 Tonnes 1,800,000 1,600,000 2,076,153 2,120,239 1,993,751 2,010,252 1,942,277 1,400,000 1,20
Slide 20: Dairy outlook
Dairy outlook • Milk volumes continue to be in line with previous season, with product mix continuing to move away from whole milk powder into butter, cheese and skim milk powder. • Looking forward, milk supply and demand dynamics remain finely balanced - China import volumes have not yet recovered
Slide 21: Log exports up 7.5%
Log exports up 7.5% For the year ended 30 June 2024 Log exports year ended June 2024 8,000,000 7,062,855 7,000,000 6,681,899 6,338,716 6,215,623 6,058,019 6,000,000 5,543,540 5,000,000 JASm3 4,000,000 3,000,000 2,000,000 1,000,000 0 FY19 FY20 FY21 FY22 FY23 FY24 21
Slide 22: Forestry outlook
Forestry outlook • Downturn in China continuing to weigh on the export market. • Some optimism that market has bottomed out. • Overall declining NZ volume to China Log volume market segments however 74% of Tauranga export volume from forest estate owners who manage a sustainable cut to generate fixe
Slide 23: Direct kiwifruit volume up 8.5%
Direct kiwifruit volume up 8.5% For the year ended 30 June 2024 Direct kiwifruit exports For the year ended June 2024 700 626 600 575 534 517 492 500 tonnes (000's) 400 300 200 100 0 FY20 FY21 FY22 FY23 FY24 23
Slide 24: Kiwifruit outlook
Kiwifruit outlook • The 2024 crop is a gross crop of 194 million tray equivalents – this is a record crop packed. Kiwifruit export annual volume growth by variety • 44% increase on the 135 million trays packed (2024 = actual submit) in 2023. 250 3% 3% 3% 4% 44% 5% • As at mid August 2024 150 million
Slide 25: Total meat volumes up 29%
Total meat volumes up 29% For the year ended 30 June 2024 Total meat volumes Export up 2% and transhipment up 71% For the year ended June 2024 1200.0 1000.0 meat tonnes (thousands) 800.0 550.311 589.802 479.367 600.0 306.104 321.874 400.0 439.175 451.419 460.698 410.572 413.691 200.0 0.0 FY20 FY21 F
Slide 26: Meat outlook
Meat outlook • Significant reduction in US domestic supply driving strong beef demand. • Australia red meat exports to the US have doubled compared to same period in 2023 - significant volume transhipped via New Zealand. • Strong export demand projected to continue to https://www.mfat.govt.nz/en/tra
Slide 27: MetroPort containers down 23.5%
MetroPort containers down 23.5% MetroPort volume FY2024 350,000 300,000 250,000 140,263 139,770 144,724 134,727 131,291 200,000 TEU's 100,373 150,000 100,000 172,003 184,174 158,270 159,653 154,233 50,000 118,042 0 FY19 FY20 FY21 FY22 FY23 FY24 Import Export • Significant increases in cost and lower
Slide 28: Vessel calls
Vessel calls 0.3% decrease in total vessel calls FY24 vs PCP 6.2% increase in container vessel calls FY24 vs PCP Vessel calls For the year ended 30 June 2024 1,600 1,400 1,200 763 772 726 1,000 731 685 vessel calls 800 752 600 701 622 638 660 400 200 0 FY20 FY21 FY22 FY23 FY24 Container Vessels All
Slide 29: Cruise vessels
Cruise vessels Cruise season total vessel visits to Mount Maunganui For the year ended 30 June 2024 140 120 116 100 107 109 cruise vessel calls 90 91 80 87 80 60 40 20 0 0 0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 24/25 (F) 29
Slide 30: New Zealand Port productivity
New Zealand Port productivity New Zealand ports - crane rate 2018 - 2024 New Zealand ports - vessel rate 2018 - 2024 National average: 25.7, down 0.5% on previous year Port of Tauranga FY24 average: 30.1, up 8% PCP 42.0 90.0 80.0 37.0 70.0 Vessel Rate Crane Rate 32.0 60.0 27.0 50.0 22.0 40.0 17.0 30
Slide 31: Pro-forma berth window performance
Pro-forma berth window performance Proforma vessels calls vs on time calls • Berth windows reinstated 6 March 2023. 70 33% on time (within 12 hours of berthing window) 60 17% • Port of Tauranga has made significant investment 50 42% 47% 38% 41% 21% 28% vessel calls 32% 26% to maintain required berth
Slide 32: A decade of export led growth
A decade of export led growth Port of Tauranga total tonnes Port of Tauranga total containers (TEU) 28,000,000 1,400,000 26,000,000 1,200,000 24,000,000 1,000,000 22,000,000 20,000,000 800,000 TEU 18,000,000 600,000 16,000,000 400,000 14,000,000 200,000 12,000,000 10,000,000 0 2009 2010 2011 2012 20
Slide 33: Primary sector outlook
Primary sector outlook Dairy volume forecast to be flat for next five years. POT export / transship volume FY 2024 - 2.06M tonnes. Red meat exports forecast to decline 8% over next five years. POT export / tranship volume FY2024 - 1M tonnes. 33
Slide 34: Primary sector outlook
Primary sector outlook • Forestry and fibre exports forecast to increase 13% over next five years. • CNI forestry volume static at circa 12M m3. • FY24 POT log volume - 6.7M tonnes. • POT wood products / paper / pulp - 1.9M tonnes. • Forecast 50% increase in export kiwifruit volume over next five ye
Slide 35: Changing demographics – driving future growth
Changing demographics – driving future growth Paul Spoonley Distinguished Professor Emeritus/Co-Director, He Whenua Taurikura BOPRC Spatial Planning Awareness Week November 2023 35
Slide 36: Container vessel trends
Container vessel trends Current Post-Panamax vessels calling New Zealand circa 25 years old Larger container vessels will continue to cascade from Post- Panamax to New-Panamax (12,000 -15,000 TEU). Required vessel draught 15 -15.5 metres. 36
Slide 37: Bigger ships = lower carbon supply chain
Bigger ships = lower carbon supply chain Ocean freight + landside CO2e • Landside emissions account for 1.6% of the total import container emissions via Auckland. • Combined landside + ocean freight (39kgs + 2,404kgs) (4,000 TEU vessel) ex-North Asia = 2,443kgs via Auckland. • Combined landside + oc
Slide 38: New Zealand's hub port
New Zealand’s hub port Australia • Melbourne 14.0m • Sydney 13.8m • Brisbane 14.0m • Perth 14.5m New Zealand • Auckland 12.5m • Tauranga 14.7m (consented to 16m HW ) • Napier 12.4m • Centreport 12.4m • Lyttelton 13.2m • Otago 13.5m • NorthPort 14.5m Future draught will cater for future services up t
Slide 39: A resilient upper North Island supply chain
A resilient upper North Island supply chain 39
Slide 40: Berth consent - update
Berth consent - update • Environment court interim decision received 13 December 2023: • Stage 1 Sulphur Point ( 285-meter berth extension ) provisionally granted subject to further directions being addressed to the satisfaction of the Court 6- month time frame provided - ( June 2024) – court extens
Slide 41: Terminal automation project
Terminal automation project • Introduction of new electric Auto Stacking Cranes (ASC). • Shortlist of two potential vendors. • Detailed vendor evaluation and discussions nearing completion. • Vendor selection and deployment linked to timing of berth extension. • ~75% reduction in emissions relative
Slide 42: Subsidiaries and associates net profit after tax down
Subsidiaries and associates net profit after tax down 29.3% For the year ended 30 June 2024 $20,000 $17,840 $14,952 $15,000 $13,347 $12,728 000s $10,000 $9,431 $5,000 $0 FY20 FY21 FY22 FY23 FY24 42
Slide 43: Reported profit down 5.2% to $6.727 million
• Reported profit down 5.2% to $6.727 million. But normalised earnings up 0.9% on the prior year. • One-off tax change deferred tax impact of $0.432 million. • Breakbulk volumes down 6.6% to 2.420 million tonnes. • Log volumes down 8.8% to 1.847 million tonnes. • Container volumes down 14.1% to 14,5
Slide 44: Reported profit down 76.3% to $0.451 million
• Reported profit down 76.3% to $0.451 million. Normalised profit down 46.1% to $1.023 million. • One-off tax change deferred tax impact of $0.572 million. • Bulk trade volumes down 8% to 1.623 million tonnes. • Log volumes down 15% to 0.286 million tonnes. • Vessel calls increased by 3.9% to 416 in
Slide 45: Reported an operating loss of -$1.182 million
• Reported an operating loss of -$1.182 million vs a loss of -$0.245 million in the prior corresponding period. • Very challenging trading environment with high inflationary costs, lower consumer demand and corresponding drop in import volumes. • Concentrating on simplifying and right sizing the bus
Slide 46: Profit of $0.181 million down 88.2%
• Profit of $0.181 million down 88.2% from $1.537 million in the prior year. • Storage revenue is down by $1.391 million which has impacted profitability. • Container volumes up 5.4% to 82,862 TEU. • New mobile harbour crane ordered. 46
Slide 47: Profit of $3.371 million up 15.5%
• Profit of $3.371 million up 15.5% on the prior year. • QM negatively impacted by lower MetroPort volumes as the operate the rail CT site. • However, reefer and generator revenue were higher due to a much better kiwifruit season. • Quality Marshalling is the operator of the Ruakura Inland Port. 47
Slide 48: RIP made a loss of -$0.392 million
• RIP made a loss of -$0.392 million for the year up from the loss of -$0.039 million in FY23. Anticipating profits next year. • Building momentum – have won Kmart’s south Island volumes and are seeing increasing rail use by the Maersk cool store. • Competitive KiwiRail pricing the key to unlocking
Slide 49: Total greenhouse gas emissions down 13.5%
Total greenhouse gas emissions down 13.5% For year ended June 2024 Total greenhouse gas emissions Kilograms of CO2e per tonne of cargo For the year ended 30 June 2024 For the year ended 30 June 2024 2.00 50,000 Kilograms CO2e per tonne of cargo 1.80 45,000 44,223 43,156 1.68 1.65 1.65 40,973 40,021
Slide 50: Air quality initiatives and improvements
Air quality initiatives and improvements • POTL and BOPRC currently expanding knowledge of residential air quality, including a dust source apportionment study currently underway. • Dust concentrations in the industrial area adjacent the Port activities continue to show improvement. Rolling 12-month
Slide 51: Air quality initiatives and improvements
Air quality initiatives and improvements Number of PM10 exceedances adjacent port activities 18 17 New wind fencing Bulk hopper water misting 16 14 12 10 8 6 4 3 2 1 0 0 0 2019-20 2020-21 2021-22 2022-23 2023-24 Boundary enhancements Visual wind monitor alarms 51
Slide 52: Water quality - stormwater and harbour health
Water quality - stormwater and harbour health • Comprehensive stormwater monitoring. • Compliant with all stormwater quality limits. • New Mount treatment system to be installed FY25 • Harbour water quality meets Aus NZ Environment & Conservation Council (ANZECC) guidelines for marine water quality.
Slide 53: Sponsorships and community partnerships
Tertiary Scholarships via Turirangi Te Kani Memorial Nga Matarae Charitable Trust Sponsorships and community partnerships 53
Slide 54: Parent capital expenditure 2020 – 2026
Parent capital expenditure 2020 – 2026 $100,000 $80,000 7,000 $60,000 21,450 $000s 100,000 $40,000 2,135 70,000 2,850 $20,000 44,322 38,228 34,691 23,796 18,612 $0 FY20 FY21 FY22 FY24 FY24 FY25F FY26F Ruakura Inland Port 54
Slide 55: Outlook 2025
Outlook 2025 • Export commodity price pressure remains with some improvement expected in FY 2025. • Domestic economy expected to remain subdued for first half of FY25. • Expect to handle circa 1.2 million TEU. • Log volume expected to be - circa 6M JAS FY25. • Service delivery, safety, productivity,
Slide 56: Thank you
Thank you Port of Tauranga Connecting New Zealand and the World