Port Of Tauranga Limited · NZX:POT
Port Of Tauranga — FY2021 Earnings Presentation
45 slides from Port Of Tauranga's earnings presentation, Aug 27, 2021
Slide 1: Presentation to Analysts
Presentation to Analysts 27 August 2021
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 and Challenges
Highlights and Challenges For the year ended 30 June 2021
Slide 4: Group Net Profit After Tax up 15.4%
Group Net Profit After Tax up 15.4% $120,000 $110,000 $100,577 $102,375 $100,000 $94,273 $83,441 $88,679 $90,000 $80,000 $70,000 $’000s $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2017 2018 2019 2020 restated 2021
Slide 5: Restatement of Prior Year Figures
Restatement of Prior Year Figures • Northport and PrimePort Timaru have historically accounted for their wharves, hardstanding and channel assets on a historical cost basis. • In the current year, the Group has aligned accounting policies which then required these Equity Accounted Investees (EAIs) t
Slide 6: Restatement of Prior Year Profit
Restatement of Prior Year Profit $91,000 $90,027 -$1,348 $90,000 $89,000 $88,679 $000s $88,000 $87,000 $86,000 $85,000 Prior Year 2020 Reported Profit Revaluation depreciation (Net of Tax*) 2020 restated * Additional depreciation expense recognised on EAIs’ revalued assets.
Slide 7: Ordinary Dividends maintained at 90% of Net Profit After Tax
Ordinary Dividends maintained at 90% of Net Profit After Tax 14 13.3 13.5 12.7 12.4 12 10 Cents per share 8 Ordinary 6 Special 4 2 0 2018 2019 2020 2021
Slide 8: Net Debt / Net Debt + Equity
Net Debt / Net Debt + Equity 40% 35% 28.6% 30% 27.5% 26.2% 25.5% 25% 20% 15% 10% 5% 0% 2018 2019 2020 2021
Slide 9: Total Trade up 3.8%
Total Trade up 3.8% 30,000 26,946 25,738 24,458 24,808 25,000 20,000 Tonnes 000s 15,000 10,000 5,000 0 2018 2019 2020 2021
Slide 10: Container Volumes down 4.1%
Container Volumes down 4.1% 1,400,000 1,300,000 1,233,177 1,251,741 1,182,147 1,200,831 1,200,000 1,100,000 1,000,000 900,000 800,000 TEUs 700,000 600,000 500,000 400,000 300,000 200,000 100,000 2018 2019 2020 2021
Slide 11: NZ's Largest Container Terminal
100,000 150,000 200,000 250,000 0 50,000 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 Auckland 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4 Lyttelton 14Q1 14Q2 14Q3 14Q4 15Q1 Napier 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 Otago 16Q4 17Q1 17Q2 17Q3 (container volumes by quarter – all ports) 17Q4 18Q1
Slide 12: NZ Trade & Container Market Share
NZ Trade & Container Market Share NZ Container Port Market Share 100.0% 80.0% 60.0% 42.3% 40.0% 24.9% 20.0% 14.5% 8.6% 6.4% 3.3% 0.0% Auckland Lyttelton Napier Otago Tauranga Wellington 2017 2018 2019 2020 Source. Ministry of Transport
Slide 13: Transhipped TEUs down 13.8%
Transhipped TEUs down 13.8% 400,000 349,343 350,000 337,183 303,284 301,062 300,000 TEU s 250,000 200,000 150,000 100,000 2018 2019 2020 2021
Slide 14: Bulk Cargo up 13.1%
Bulk Cargo up 13.1% Break Bulk Tonnage 14,000,000 12,000,000 10,000,000 8,000,000 Tonnes 6,000,000 4,000,000 2,000,000 0 2017 2018 2019 2020 2021 LOGS OIL PRODUCTS PROTEINS & FEEDS KIWIFRUIT OTHER WOOD PRODUCTS FERTILISERS STEEL GRAIN COAL ALL OTHER GOODS
Slide 15: Log Exports up 14.3%
Log Exports up 14.3% 8,000 7,063 7,000 6,276 6,339 6,000 5,544 5,000 JAS 000s 4,000 3,000 2,000 1,000 0 2018 2019 2020 2021
Slide 16: Forestry Outlook
Forestry Outlook • Recent correction in log price – lockdown likely to add to the uncertainty around price. At wharf gate market most (smaller forests, farm blocks etc) likely to be impacted. • Circa 65% Tauranga export volume from forest estate owners who manage a sustainable cut to generate fixed
Slide 17: Direct Kiwifruit Exports up 11.1%
Direct Kiwifruit Exports up 11.1% 1,750 1,629 1,473 1,465 1,500 1,303 1,250 1,000 M3 000s 750 500 250 0 2018 2019 2020 2021
Slide 18: Kiwifruit Outlook
Kiwifruit Outlook 1 Based on current licence release plan. 2 Gold 16,000 trays average per hectare mature orchard. 3 Green volumes forecast to drop 2 million TEUs/year over next 5 years so growth is M Trays coming from Gold crop. 4 Market side demand is strong. 5 Some growth pains supply side (infra
Slide 19: Direct Dairy Exports up 2.1%
Direct Dairy Exports up 2.1% 2,110 2,076 2,120 2,039 2,000 1,500 Tonnes 000’s 1,000 500 0 2018 2019 2020 2021
Slide 20: Dairy Outlook
Dairy Outlook • Global Dairy Trade (GDT) prices have come back from recent highs but still reasonably strong • Dairy volumes expected to be flat in FY22 • Potential product mix change over next few years
Slide 21: Upper North Island Port Congestion
Upper North Island Port Congestion
Slide 22: Continued Port Congestion
Continued Port Congestion • Global supply chains remain congested. • Vessels schedules remain suspended in New Zealand. • A return to schedule in New Zealand requires all carriers and ports to work agreed berth windows. • Currently only ~60% of shipping services can meet agreed berth windows. • Prio
Slide 23: Costs of Congestion
Costs of Congestion 106 fewer container vessels September 2020 to June 2021 vs PCP Tauranga Container Terminal Vessel Calls 80 1600 70 1400 Average exchange ctrs 60 1200 Vessel Visits 50 1000 40 800 30 600 20 400 10 200 0 0 Sep Oct Nov Dec Jan Feb Mar Apr May June Vessel Visits 19 /20 55 63 66 62 58
Slide 24: Costs of Congestion
Costs of Congestion 51% increase in average static volume since 1 October 2020
Slide 25: New Zealand Port Ship Rate
10 20 30 40 50 60 70 80 90 100 0 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 Auckland 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 Lyttelton 13Q2 13Q3 13Q4 14Q1 14Q2 Napier 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 Otago 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 Tauranga 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 New Zealand Port Ship Rate
Slide 26: Port Sector Labour Challenges
Port Sector Labour Challenges • Tight port sector Labour market pushing wage inflation. • Worsening labour shortage where we are competing for people against, in some cases, our own customers. • 95% of Port of Tauranga border facing ( Tier 1 ) people vaccinated. • Currently circa 45% (Tier 1) worker
Slide 27: MetroPort
MetroPort MetroPort Volumes 2017- 2021 350,000 300,000 250,000 200,000 TEUs 150,000 100,000 50,000 0 2017 2018 2019 2020 2021 Import Export Rail volume down 3%
Slide 28: Carrier Consolidation & Increasing Orderbook
Carrier Consolidation & Increasing Orderbook
Slide 29: Bigger Ships = Lower Carbon Supply Chain
Bigger Ships = Lower Carbon Supply Chain CO2e calculations are based on a 20’ 15 tonne container shipped on a typical container vessel size of 3,000-4,000 TEUs (via Auckland) and 8,000+ TEUs (via Tauranga)
Slide 30: Critical New Zealand Infrastructure
Critical New Zealand Infrastructure • Design completed 2019 and early contractor engagement 2020 • Shovel Ready declined August 2020 • Fast Track application declined April 2021 • Ongoing consultation - currently ~24 months behind schedule
Slide 31: Critical New Zealand Infrastructure
Critical New Zealand Infrastructure • Resource submitted May 2021. • Direct referral to Environment court request lodged - June 2021. • 220 metre extension required (2-year construction period). • Nearing capacity headroom current volume 1.25M TEU vs 1.45M capacity. • Average container growth 7.4% o
Slide 32: Full Buildout ~ 2.8M TEUs
Full Buildout ~ 2.8M TEUs
Slide 33: Terminal Automation
Terminal Automation • Progressing first stage of Terminal Automation. • Currently seeking proposals for Auto Stacking Cranes ( ASC ) from providers. • Expect vendor selection Q1 2022. • Well established technology used globally.
Slide 34: Subsidiaries & Associates Net Profit After Tax up 46.0%
Subsidiaries & Associates Net Profit After Tax up 46.0% $20,000 $18,581 $16,391 $15,000 $12,728 $11,885 000s $10,000 $5,000 $0 2018 2019 2020 restated 2021
Slide 35: • Trade volumes up 18.3% to 3.547 million tonnes. • Earnings up 8.9% to
• Trade volumes up 18.3% to 3.547 million tonnes. • Earnings up 8.9% to $8.746 million (result includes revaluation depreciation expense net of tax of $0.766 million). • $26.646 million increase to the Group’s share of revaluation reserve on alignment of policy. • Container volumes up 9.2% to 13,451
Slide 36: • Trade volumes increased 17.6% to 1.827 million tonnes. • Earnings up 23.0% to
• Trade volumes increased 17.6% to 1.827 million tonnes. • Earnings up 23.0% to $2.848 million (result includes revaluation depreciation expense net of tax of $0.582 million). • $12.161 million increase to the Group’s share of revaluation reserve alignment of policy.
Slide 37: • Container volumes up 16.2% to 93,891 TEUs. • NPAT of $1.523 million up
• Container volumes up 16.2% to 93,891 TEUs. • NPAT of $1.523 million up from $0.492 million in prior year. • Acquired Kotahi’s 49.9% shareholding in October 2020, in exchange for volume-based rebate – 100% subsidiary. • Loss of $0.741 million at Group level on derecognition as an EAI.
Slide 38: • NPAT up 38.4% to $3.500 million. • Continued strong performance seen across all
• NPAT up 38.4% to $3.500 million. • Continued strong performance seen across all areas of the company. • Took over management of Timaru Container Terminal from 1 November 2020.
Slide 39: Recorded a profit of $1.869 million vs loss of -$0.729 million in the prior
• Recorded a profit of $1.869 million vs loss of -$0.729 million in the prior year. • Included in profit are $1.649 million of one of items including the sale of their investment in TNX. Underlying profit $0.220 million. • Deena Clarkson appointed Chief Executive effective from 30 August 2021.
Slide 40: Ruakura Inland Port
Ruakura Inland Port Progress July 2021
Slide 41: Parent Capital Expenditure 2018-2023
Parent Capital Expenditure 2018-2023 $100,000 $80,000 $23,000 $60,000 $60,000 $000s $50,000 $40,073 $38,228 $40,000 $23,796 $20,000 $16,788 $0 2018 2019 2020 2021 2022F 2023F Terminal Southern Berth Extension
Slide 42: A New Upper North Island Port Study
A New Upper North Island Port Study • The Minister for Transport has announced a new freight strategy report. • A new location to replace Ports of Auckland expected by 2023.
Slide 43: Outlook 2022
Outlook 2022 • Port congestion is expected to continue. • Labour shortages becoming a problem for the sector. • Expect to handle about 1.225 million TEUs. • Log volume forecast circa 6.4M JAS FY22. • Earnings guidance to be provided in October at AGM
Slide 44: Our Purpose and Vision, Our Values
Our Purpose Our and Vision Values Portof Tauranga’s purpose, OURPURPOSE ~ Rospest Mana Whenua ‘Our values define our fundamental beliofs and dictate ‘our behaviour as individuals and asan organisation. Vision and valves have been Connecting Now Zealand and Wo warecogi androepoct reviewed in 2021. We
Slide 45: Thank You
THANK YOU