Channel Infrastructure Nz Limited · NZX:CHI
Channel Infrastructure Nz — Merger or Acquisition (July 2021)
16 slides from Channel Infrastructure Nz's merger presentation, July 2021
Slide 1: Marsden Point Terminal Proposal
Marsden Point Terminal Proposal Investor Presentation July 2021
Slide 2: Disclaimer & Important Information
Disclaimer & Important Information Information: This presentation has been prepared solely for information purposes to provide a general No representation or warranty: To the maximum extent permitted by law, neither Refining NZ, nor any of overview of The New Zealand Refining Company Limited’s (Refi
Slide 3: Introduction
Introduction Refining NZ proposes to convert the Marsden Point site to a Agenda fuel import terminal, changing its name to Channel • Strategic Review Infrastructure • Terminal Proposal Presenting today • Investment Highlights • Comparison to Simplified Refinery • Shareholder approval • Questions Sim
Slide 4: Strategic Review
Strategic Review Optimal business model to maximise “through the cycle” returns to shareholders Strategic review context Case for change Strategic review outcome Significant decline in GRM, exacerbated Structural oversupply in refining capacity Simplify refining operations to maintain cash by COVID-
Slide 5: Marsden Point Terminal Proposal
Marsden Point Terminal Proposal 177 hectares of land 35 year resource consent Deep harbour and jetty access Large electricity and gas connections Proximity to NZ’s largest population base Note: The TLF and Wiri Terminal end-delivery points do not form part of the Import 5 Terminal System (ITS) asset
Slide 6: Critical infrastructure delivering more stable earnings through long term customer agreements
Investment Highlights Critical infrastructure delivering more stable earnings through long term customer agreements Ownership of critical and highly efficient infrastructure Long term customer contracts Projected stable earnings, cash flow and dividends Supporting decarbonisation of New Zeal
Slide 7: Ownership of critical and highly efficient infrastructure
Investment Highlights Ownership of critical and highly efficient infrastructure • Primarily supplying Auckland and Northland fuel requirements, which make up 40% of New Zealand fuel demand • On current forecasts, the RAP will meet Auckland’s future fuel demand • RAP supplies all of the jet fuel dist
Slide 8: Long term customer contracts
Investment Highlights Long term customer contracts • 10-year initial term with 2 x 5-year options to renew (at customer option) • Combination of fixed and throughput-based fees for shared terminal capacity: • Incentivises customer utilisation of infrastructure • Fixed fees expected to largely cover
Slide 9: Projected stable earnings, cash flow and dividends
Investment Highlights Projected stable earnings, cash flow and dividends Commentary Example EBITDA calculations • Revenue from shared terminal capacity, IPL laboratory testing services, • Assuming revenue of: Wiri terminal lease (until 2025) and any Private Storage services (to be priced on a value
Slide 10: Supporting decarbonisation of New Zealand's economy
Investment Highlights Supporting decarbonisation of New Zealand’s economy • Significant contribution to New Zealand’s decarbonisation: • circa 98% reduction in Scope 1 and 2 CO2 emissions5 of over 1 million tonnes per annum • Approximately 85% reduction in required electricity supply and no natural
Slide 11: Focussed growth strategy – Marsden Point as an energy hub
Investment Highlights Focussed growth strategy – Marsden Point as an energy hub Flexibly developing • Strategic fuel storage6 Marsden Point as an • Growth in electricity energy hub for the • Other imports north of New Zealand • Transition to future fuels – biofuels, SAF and hydrogen imports, product
Slide 12: Fundamental change in business risk profile and an expected near-term return to dividends
Comparison to Simplified Refinery Fundamental change in business risk profile and an expected near-term return to dividends CHANNEL INFRASTRUCTURE WOULD PROVIDE: • Relatively stable earnings with a fixed fee component, take-or-pay protection and lower operating Significantly lower earnings volatil
Slide 13: Now is the right time to make this change
Shareholder Approval Now is the right time to make this change In the opinion of Independent Adviser, Grant Samuel: • “Maintaining the Simplified Refinery until 2035 would be a sub-optimal outcome for Refining NZ and its shareholders” • “The transition to an Import Terminal is fair to the Non-Custom
Slide 14: Independent Directors unanimously recommend shareholders vote 'yes'
Shareholder Approval The Independent Directors Resolution 1: Change in nature of business and major transaction unanimously recommend that • A special resolution that requires the approval of 75% of the votes cast shareholders vote ‘yes’: • All shareholders are entitled to vote Resolution 2: Provisi
Slide 15: Questions
Questions <#>
Slide 16: Marsden Point Terminal Proposal
Marsden Point Terminal Proposal Investor Presentation July 2021
Channel Infrastructure NZ — Merger or Acquisition (July 2021) on 6ix