Port Of Tauranga Limited · NZX:POT
Port Of Tauranga — FY2019 Earnings Presentation
65 slides from Port Of Tauranga's earnings presentation, Aug 28, 2019
Slide 1: Presentation to Analysts
Presentation to Analysts 28 August 2019 Queen Mary 2
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
• Group NPAT up 6.7% Highlights • • Parent NPAT up 13.9% Total trade up 10.2% Highlights • Container volumes up 4.3% • Transhipment up 11.2% • Imports up 8.4% • Exports up 11.2% • Ordinary dividends up 4.7% • Final special dividend of 5 cents to be paid in October 2019 • Special dividend programme e
Slide 4: Group Net Profit After Tax up 6.7%
Group Net Profit After Tax up 6.7% $120,000 $110,000 $100,577 $100,000 $94,273 $90,000 $83,441 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2017 2018 2019
Slide 5: Parent Net Profit After Tax up 13.9%
Parent Net Profit After Tax up 13.9% $88,692 $90,000 $80,000 $77,882 $68,796 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2017 2018 2019
Slide 6: Ordinary Dividends up 4.7%
Ordinary Dividends up 4.7% Continuance of 2.5cps special dividend for a further 4 years 14 13.3 12.7 12 11.2 10 Cents per share 8 6 4 2 0 2017 2018 2019
Slide 7: Port Performance
Port Performance Cash dividends paid 140 120 100 80 $ million 60 20 rT AKL TRG NPL NPE WLG NSN MLB) LYT TIU| POE BLU 2014 ™2015 ©2016 2017 ™2018 Source: Annual Reports Part fu the fsure >>
Slide 8: Net Debt / Net Debt + Equity
Net Debt / Net Debt +Equity 40% 35% 30% 28.7% 27.5% 26.2% 25% 20% 15% 10% 5% 0% 2017 2018 2019
Slide 9: Total Trade up 10.2%
Total Trade up 10.2% 30,000 26,946 24,458 25,000 22,194 20,000 15,000 10,000 5,000 0 2017 2018 2019
Slide 10: Container Volumes up 4.3%
Container Volumes up 4.3% 1,400,000 1,233,177 1,300,000 1,182,147 1,200,000 1,085,987 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 2017 2018 2019
Slide 11: Successful Execution of Hub Strategy
Successful Execution of Hub Strategy
Slide 12: NZ's Largest Container Terminal
NZ’s Largest Container Terminal Handles 44% more containers than Auckland 250,000 (container volumes by quarter – all ports) 200,000 150,000 100,000 50,000 0 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 16
Slide 13: Port Performance
Port Performance NZ container throughput 1,400 1,200 1,000 =) 800 = S 600 400 - i! | I me _ en | ail —_ ers AKL TRG NPL NPE WLG NSN MLB LYT TIU. POE BLU BOT be ki Fidure >>> 2014 =2015 ©2016 § 2017 =2018 Source: Annual reports
Slide 14: Transhipped Container Volumes up 11.2%
Transhipped Container Volumes up 11.2% 400,000 337,183 350,000 303,284 300,000 245,896 250,000 200,000 150,000 100,000 2017 2018 2019
Slide 15: NZ Transhipped Container Volumes up 10.8%
NZ Transhipped Container Volumes up 10.8% New Zealand Transhipment FY18 cf FY19 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Auckland Bluff Lyttelton Napier Nelson Port Timaru Wellington TEUs Chalmers 2017 / 2018 TEUs 2018/2019 TEUs
Slide 16: Log Exports up 12.5%
Log Exports up 12.5% 8,000 7,063 7,000 6,276 6,000 5,490 5,000 4,000 3,000 2,000 1,000 0 2017 2018 2019
Slide 17: Dairy Exports
Dairy Exports 2,500 2,312 2,322 2,223 2,000 1,500 1,000 500 0 2017 2018 2019
Slide 18: Fertiliser Imports down 9.2%
Fertiliser Imports down 9.2% 600 552 501 500 474 400 300 200 100 0 2017 2018 2019
Slide 19: Oil Products up 2.0%
Oil Products up 2.0% 1,569 1,600 1,500 1,436 1,000 500 0 2017 2018 2019
Slide 20: Grain & Dairy Feed Supplement Imports down 10%
Grain & Dairy Feed Supplement Imports down 10% 1,500 1,343 1,209 1,156 1,000 500 0 2017 2018 2019
Slide 21: Kiwifruit TEUs up 15.2%
Kiwifruit TEUs up 15.2% 40,000 36,804 35,000 31,949 30,000 25,048 25,000 20,000 TEUs 15,000 10,000 5,000 0 2017 2018 2019
Slide 22: Cruise Vessels
Cruise Vessels 116 visits in FY19, expecting 111 in FY20
Slide 23: Subsidiaries & Associate Companies
Subsidiaries & Associate Companies
Slide 24: Subsidiaries & Associates Net Profit After Tax
Subsidiaries & Associates Net Profit After Tax $20,000 $16,391 $14,645 $15,000 $11,885 $10,000 $5,000 $0 $000s 2017 2018 2019
Slide 25: Associate & Subsidiary Companies NPAT down 27.5%
Associate & Subsidiary Companies NPAT down 27.5% 2019 2018 $000 $000 Quality Marshalling Limited 2,661 2,312 Northport Limited 8,995 9,191 PrimePort Timaru Limited 2,080 1,523 Timaru Container Terminal Limited 627 651 Coda Group LP (2,412) 2,768 PortConnect Limited (66) (51) Total Subsidiary and Ass
Slide 26: Northport
Northport • Earnings down 2.1% • Handled 12,849 TEU • Trade down 5%
Slide 27: Northport Future Expansion
TY. Northport Future Expansion
Slide 28: Coda Group
Coda Group • Normalised loss of $1.29 million • $3.7m of one-off write offs • Loss making contracts • New CEO and CFO • Return to profitability in FY20
Slide 29: Optimising Supply Chains
Optimising Supply Chains Aligning the Domestic and Export Supply Chains Dairy powder loaded in Taranaki for export to the world FMCG product loaded at Savill Drive Auckland for distribution to Palmerston North
Slide 30: PrimePort Timaru
PrimePort Timaru • Earnings up $0.557 million to $2.080 million • On a normalised basis earnings in line with 2018 • New 60 bollard tug commissioned January 2019 • Looking to build new bulk berth
Slide 31: Timaru Container Terminal
Timaru Container Terminal • Earnings flat at $0.627 million • Handled 80,378 TEU’s v 89,087 TEUs in FY18 • Rio Class ships calling at TCTL
Slide 32: Timaru – Future Terminal Capacity
Timaru – Future Terminal Capacity
Slide 33: Quality Marshalling
Quality Marshalling • Earnings up $0.349 million to $2.661 million • All contracts performing well
Slide 34: Licence to Operate in our Community
Licence to Operate in our Community
Slide 35: Air Quality / Visual Amenity
Air Quality / Visual Amenity Before After
Slide 36: Improved Bulk Cargo Handling
Improved Bulk Cargo Handling
Slide 37: Methyl Bromide Recapture
Methyl Bromide Recapture Port for the fi whee Fae
Slide 38: Methyl Bromide Recapture
Methyl Bromide Recapture Total log stacks/timber/ships vs recapture % @ POT 350 gees Total jobs/month aus Rec apture % _----- Recapture Target %._sssssnnee Linear (Recapture 9} Total jobs/month Ju0-19 Jul-17 May-17 Jun-17 Aug-17 Sep-17 Oct-17 Nov17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Sep-18 PO
Slide 39: Debarking
Debarking Ee
Slide 40: Stormwater Treatment
Stormwater Treatment : ee a Bee he fire >
Slide 41: More Comprehensive Monitoring
More Comprehensive Monitoring
Slide 42: CEMARS Certification
CEMARS Certification This is to certify that Port of Tauranga Limited Meets the requirements of CEMARS® certification having measured its greenhouse gas emissions in accordance with ISO 14064-1-2006 and committed to managing and reducing its emissions in respect of the operational emissions of its o
Slide 43: Emission Management
Emission Management Greenhouse gas emission sources top 10 for Port of Tauranga for 2017-2018 reporting year
Slide 44: Cost of Becoming Carbon Neutral
Cost of Becoming Carbon Neutral • Port of Tauranga’s most recent GHG inventory was a total of 27,684 tCO2e. • Offsetting using New Zealand Permanent Forest Sinks Initiative (PFSI) carbon credits, at around $35 per unit, would cost $968,940, close to $1 million.
Slide 45: Decarbonisation Strategy
Decarbonisation Strategy Objective • 5% reduction in Scope 1 carbon emissions per cargo tonne • Net zero emissions by 2050 Insetting • “Create a protected fund of money to implement emissions reduction projects inside the organisation”
Slide 46: Electric Vehicles
Electric Vehicles Each BEV reduces emissions by 2 tCO2e
Slide 47: Battery Hybrid Straddle Carriers
Battery Hybrid Straddle Carriers (each straddle $215,000 more expensive than diesel/electric equivalent)
Slide 48: Solar Generation
Solar Generation | Fire >
Slide 49: Proportion of Total Volume Transported by Rail
Proportion of Total Volume Transported by Rail Port of Tauranga Rail Share 60% 40% 20% 0% 2012 2013 2014 2015 2016 2017 2018 Export Import Linear (Export) Linear (Import)
Slide 50: Modal Shift (Trans-shipment and Rail)
Modal Shift (Trans-shipment and Rail)
Slide 51: Customers wanting to reduce their Scope 3 emissions
Customers wanting to reduce their Scope 3 emissions Big ships offer > 30% lower carbon / container
Slide 52: Outlook 2019
Outlook 2019 PORT OF TAURANGA Port for the fetsee YY
Slide 53: Log Forecasts
Log Forecasts At this stage, forecast FY20 logs to be approximately 6 million JASM
Slide 54: Annual Log Storage Turn
Annual Log Storage Turn • “At Tauranga every square metre of storage space hosted 20 m3. • This is almost double the average maintained on all the other ports in New Zealand. • A higher storage turn means that a port can make more productive use of the limited land resources available.” Source: SCIO
Slide 55: Log Export Costs by Port
Log Export Costs by Port Tauranga has lowest composite costs to export 16,000 m3 consignment Source: SCION, circa 2014
Slide 56: Kiwifruit - Zespri's Forecast
Kiwifruit - Zespri’s Forecast Export Tray Volume Additional 3,500 ha new Gold licence 2018-2022 Source: Zespri
Slide 57: Kiwifruit - Containerised Volumes
Kiwifruit - Containerised Volumes Export Tray Volume Container Volume Additional 3,500 ha new Gold licences 2018-2022 Source: Zes
Slide 58: Cars
Cars
Slide 59: Tainui - 30 year Agreement for Ruakura Inland Port
Tainui - 30 year Agreement for Ruakura Inland Port 192 hectares for logistics and industrial use
Slide 60: Slide 60
Slide 61: Terminal Equipment
Terminal Equipment • Auto Stacking Cranes (ASC) lead time 9 - 12 months from order. • RFI to be provided to manufacturers Q3 2019. • Crane 9 due January 2020. • New crane lead time 12 - 18 months from order.
Slide 62: Full Build Out ~3M TEUs
Full Build Out ~3M TEUs
Slide 63: Parent Capital Expenditure 2016-2020
Parent Capital Expenditure 2016-2020 $80,000 $63,323 $60,166 $59,512 $60,000 $40,073 $40,000 $20,000 $16,788 $0 2016 2017 2018 2019 2020F
Slide 64: Upper North Island Supply Chain Study
Upper North Island Supply Chain Study
Slide 65: Thank You
NAME OF SPEAKER Thank You Title