Napier Port Holdings Ltd · NZX:NPH
Napier Port — HY2025 Earnings Presentation
30 slides from Napier Port's earnings presentation, May 21, 2025
Slide 1: Half Year Investor Presentation - 21 May 2025
NAPIER” PORT Te Herenga Waka o Ahuriri HALF YEAR INVESTOR PRESENTATION - 21 MAY 2025
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation has been prepared by Napier Port Holdings Limited (together with Port of Napier Limited, "Napier Past performance: Any past performance information given in this presentation is given for illustrative purposes only Port"). This presentation is being
Slide 3: Presenting Today
PRESENTING TODAY BLAIR O'KEEFFE TODD DAWSON KRISTEN LIE CHAIR CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER 3
Slide 4: HY2025 Overview
HY2025 OVERVIEW BLAIR O’KEEFFE, CHAIR Robust earnings growth with strong container cargo recovery by key customers Fundamentals are strong – cargo diversity, infrastructure and capability, operating leverage, track record of delivery and resilience Confidence retained amidst continued volatility in
Slide 5: Container Volumes Step Up
CONTAINER VOLUMES STEP UP TRADE OVERVIEW FY2025 HALF YEAR Variance Volume HY2025 HY2024 kT / TEU / calls % Total cargo (kT) 2,450 2,527 -77 -3.0 Containerised cargo (TEU) 112,000 98,000 +14,000 +13.9 Bulk cargo (kT) 1,710 1,883 -173 -9.2 - Logs exports (kT) 1,355 1,552 -197 -12.7 Cruise vessels (cal
Slide 6: Strong Operating Leverage on Container Volume Growth
STRONG OPERATING LEVERAGE ON CONTAINER VOLUME GROWTH FINANCIAL RESULTS OVERVIEW FY2025 HALF YEAR HY2025 HY2024 Variance $M $M $M % Revenue 78.1 70.6 +7.5 +10.6 Result from operating activities 33.1 27.4 +5.7 +21.1 Net profit after tax – underlying¹ 14.8 11.1 +3.7 +33.4 Cash flow from operations – un
Slide 7: Future Ready: Strategic Projects
FUTURE READY: STRATEGIC PROJECTS GROWING CAPABILITY AND CAPTURING OPPORTUNITIES • Strategic pathway outlined to investors in March 2025 – available on NZX and in Napier Port's website investor centre • Viewpoint Supply Chain • Increasing cargo customer relationships and geographical reach to facilit
Slide 8: Revenue Growth Supported by Diversity of Trades
REVENUE GROWTH SUPPORTED BY DIVERSITY OF TRADES RECORD FIRST HALF REVENUE • 10.6% total revenue growth half year-on-half year (HoH) • Financial resilience in diversity of trades • Container services revenue increased $9.1m (+27.2%) to $42.7m • Bulk cargo revenue decreased $0.7m (-2.7%) to $25.5m • C
Slide 9: Container Revenue Up on Volumes and Yield
CONTAINER REVENUE UP ON VOLUMES AND YIELD SUPPORTED BY SIGNIFICANT UPLIFT IN OTHER CONTAINER SERVICES REVENUE • Container Services revenue increased $9.1m (+27.2%) to $42.7m HoH • Including $3.8m increase in other container services revenue; Port Pack and Depot operations • Total TEU volume increase
Slide 10: Bulk Cargo – Steady but Subdued Log Exports
BULK CARGO – STEADY BUT SUBDUED LOG EXPORTS • Bulk revenue decreased $0.7m (-2.7%) to $25.5m HoH • Volume decreased by 0.17 million tonnes (-9.2%) to 1.71 million tonnes HoH • Export logs decreased by 0.2 million tonnes (-12.7%) to 1.36 million tonnes HoH • Average revenue per tonne increased 7.1% t
Slide 11: Solid Cruise Season in Face of Industry Headwinds
SOLID CRUISE SEASON IN FACE OF INDUSTRY HEADWINDS CRUISE REVENUE 10.5% OF HALF YEAR REVENUE • Cruise revenue decreased $0.7m (-8.0%) to $8.2m HoH • Vessel visits decreased from 88 to 77 • Approx. 107,000 passengers visited the region • Smaller vessels on average • Average revenue per vessel increase
Slide 12: Opex Controlled on Higher Containers, Revenue
OPEX CONTROLLED ON HIGHER CONTAINERS, REVENUE SUPPORTING MARGIN AND OPERATING LEVERAGE • Total opex increased $1.7m (+4.0%) to $44.9m HoH, • -2.7% compared to 2H 2024 • Employee benefit expenses increased $1.2m (+5.5%) • Property and plant expenses decreased $0.6m (-7.5%) • Other operating expenses
Slide 13: Significantly Higher Operating Result
SIGNIFICANTLY HIGHER OPERATING RESULT YIELD, MARGIN AND MIX IMPROVEMENTS • Result from operating activities up $5.8m (+21.1%) to $33.1m • Operating margin of 42.4%, up from 38.8% HoH RESULT FROM OPERATING ACTIVITES OPERATING MARGIN $36 $35 $33.1m 44.0% $6.6 $34 $33.1 $30 42.0% $27.4m ($1.1) ($0.2) $
Slide 14: Net Profit Growth on Higher Operating Result
NET PROFIT GROWTH ON HIGHER OPERATING RESULT • Underlying NPAT¹ increased by $3.7m (+33.4%) to $14.8m • Excludes $7.5m insurance income (pre-tax) – Cyclone Gabrielle claim fully settled in 1H FY2025 • Reported NPAT increased by $5.8m (+40.8%) to $20.2m REPORTED NET PROFIT AFTER TAX $22 $5.8 $0.3 $0.
Slide 15: Higher Level of Capital Expenditure in Near Term
HIGHER LEVEL OF CAPITAL EXPENDITURE IN NEAR TERM • Capital expenditure of $11.6m1 • $4.3m site – paving, breakwater reinstatement, maintenance dredging, other major maintenance • $3.7m plant – mobile plant (empty container handlers, truck and trailers, cranes) and floating plant major maintenance •
Slide 16: Cash Flow & Liquidity
CASH FLOW & LIQUIDITY HY2025 HY2024 Var $M $M $M Operating cash flows 34.6 25.3 +9.3 Investing cash flows (13.6) (7.4) -6.2 Dividends (12.0) (7.1) -4.9 Reduction in total gross debt (6.5) (9.0) +2.5 Other financing cash flows (2.8) (3.3) +0.5 Decrease in cash and cash equivalents (0.2) (1.5) • Growt
Slide 17: Capital Management
CAPITAL MANAGEMENT • Forecast capital expenditure across FY25 – FY27 average approx. $40 million p.a. (subject to changes and approvals) • c. $80m replacement maintenance capital • c. $40m capacity & growth • Risk reserve fund investments from April 2025 • Debt to EBITDA of 1.54x at 31 March • 1.79x
Slide 18: Emissions Reporting
EMISSIONS REPORTING HIGHER EMISSIONS ON HIGHER CONTAINER ACTIVITY • Total (unaudited) emissions for half year increased 8.2% HoH • Scope 1 increased 11.7% • Correlated to higher container volumes • Higher generator use for reefer containers • Scope 2 decreased 16.9% • 15.5% lower electricity usage,
Slide 19: Conclusion and Outlook
CONCLUSION AND OUTLOOK POSITIVE RESULTS SUPPORT INVESTMENTS IN FUTURE AND INCREASED SHAREHOLDER RETURNS Strong container services performance, record HY result Demonstrated diversified revenues and resilient cargo base, positive operating leverage supporting earnings growth Progressing strategic inv
Slide 20: HY2025 Interim and Special Dividend
HY2025 INTERIM AND SPECIAL DIVIDEND Declared interim dividend of 4.0 cps (2024: 3.0 cps) Additional (one-off) special dividend of 2.5 cps Fully imputed Record date: 13 June 2025 Payment date: 26 June 2025 20
Slide 21: Questions
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Slide 22: Appendices
APPENDICES The following appended financial information provides a summary of financial information for the half year period ended 31 March 2025 (HY2025) compared to the corresponding half year period in 2024 (HY2024). Reconciliations provided are extracted from and should be read in conjunction wit
Slide 23: Revenue
REVENUE NZ$000 HY2025 HY2024 Container services 42,741 33,594 Bulk cargo 25,482 26,193 Cruise 8,192 8,903 Sundry revenue 290 298 Revenue from port operations 76,705 68,988 Revenue from property operations 1,387 1,594 Total operating income 78,092 70,582 23
Slide 24: Operating Expenses
OPERATING EXPENSES Employee benefit expenses NZ$000 HY2025 HY2024 Wages & salaries 21,465 20,368 Other employee benefit expenses 1,709 1,591 Total employee benefit expenses 23,174 21,959 Property and plant expenses NZ$000 HY2025 HY2024 Plant expenses 2,546 2,763 Site expenses 1,313 1,434 Fuel & powe
Slide 25: Operating Expenses
OPERATING EXPENSES Other operating expenses NZ$000 HY2025 HY2024 Administration expenses 3,930 3,466 Occupancy expenses 5,233 5,014 Contract services 4,947 4,512 Other staff expenses 770 815 Total other operating expenses 14,880 13,807 25
Slide 26: Capital Expenditure
CAPITAL EXPENDITURE NZ$000 HY2025 HY2024 Development capex Dredge 2,069 - Terminal transformation 407 - Other development capex 187 1,713 Total development capex 2,663 1,713 Replacement capex 8,778 5,034 Compliance and other capex 197 226 Total capex including capitalised finance costs 11,638 6,972
Slide 27: Reconciliation of Underlying Net Profit After Tax
RECONCILIATION OF UNDERLYING NET PROFIT AFTER TAX¹ NZ$000 HY2025 HY2024 Reported net profit after tax 20,163 14,320 Adjustments: Fair value movements on investment properties - (129) Cyclone Gabrielle related expenses 40 108 Cyclone Gabrielle material damage and business interruption insurance incom
Slide 28: Reconciliation of Underlying Net Cash Flows from Operating Activities
RECONCILIATION OF UNDERLYING NET CASH FLOWS FROM OPERATING ACTIVITIES¹ NZ$000 HY2025 HY2024 Reported net cash flows from operating activities 34,643 25,292 Adjustments Cyclone Gabrielle related expenses 40 108 Cyclone Gabrielle material damage and business interruption insurance income (11,000) (2,8
Slide 29: Dividend Policy
DIVIDEND POLICY • The Board is targeting paying total dividends within a range of 70% to 90% of Free Cash Flow1 • Free Cash Flow1 is a non-NZ GAAP measure adopted by Napier Port. It excludes capital expenditure on development projects and the interest costs capitalised during construction • The paym
Slide 30: Further Information on Napier Port
FURTHER INFORMATION ON NAPIER PORT To learn more about Napier Port and what it does please refer to our website at www.napierport.co.nz See our website Investor Centre for: • Share price information • Links to NZX results and market announcements • Key calendar dates • Publications, including: - Ann