Slide 1: Refining NZ HY 2021 Results Presentation
REFINING NZ HY 2021 RESULTS PRESENTATION REFINING NZ 2021 INTERIM RESULTS BRIEFING 1
Slide 2: Disclaimer
REFINING NZ HY 2021 RESULTS DISCLAIMER PRESENTATION • This presentation contains forward looking statements concerning the financial condition, results and operations of The New Zealand Refining Company Limited (hereafter referred to as “Refining NZ”). • Forward looking statements are subject to the
Slide 3: HY 21 Performance
REFINING NZ HY 2021 RESULTS PRESENTATION HY 21 PERFORMANCE STRATEGIC REVIEW UPDATE
Slide 4: Performance Summary vs Plan
REFINING NZ HY 2021 RESULTS PERFORMANCE SUMMARY VS PLAN PRESENTATION Refining NZ has maintained cash neutral operations at the Fee Floor, and received a shareholder mandate to proceed with an import terminal conversion Create the time to negotiate with customers Safe, reliable and compliant operatio
Slide 5: HY2021 Performance Highlights
REFINING NZ HY 2021 RESULTS HY2021 PERFORMANCE HIGHLIGHTS Safely delivered cash neutral operations at the Fee Floor PRESENTATION HY 21 HY 20 Personal TRCF [1] 0 0.31 PSafe operations Process Tier 1 [1] 2 0 Tier 2 [1] 0 0 Releases outside of consent 9 1 Refinery Throughput Mbbl 13.1 15.4 PDeliver to
Slide 6: Safe Operations
REFINING NZ HY 2021 RESULTS SAFE OPERATIONS A record performance with no recordable incidents in over 19 months PRESENTATION TOTAL RECORDABLE CASES[1] Other TRC (medical treatment, restricted work cases) LHS Number Lost time injuries LHS #/200k hours • 19 months of operations with no recordable inci
Slide 7: Deliver to Customer Plan
REFINING NZ HY 2021 RESULTS DELIVER TO CUSTOMER PLAN Simplified refinery model implemented from beginning of the year PRESENTATION HY 21 HY 20 Change • Simplified refinery model implemented from January 2021, with Refinery capacity reduced by circa 18%[1] Refinery Throughput Mbbl 13.1 15.4 2.3▼ 15%
Slide 8: Refining Margins
REFINING NZ Weak refining margins due to excess capacity exacerbated by HY 2021 RESULTS REFINING MARGINS PRESENTATION COVID-19 demand impacts HY 20 HY 21 Change US$/BARREL Singapore Complex Margin (1.60) (2.09) (0.49) (SCM)1 Freight 1.61 1.74 0.13 Product quality 0.76 0.74 (0.02) Plant availability
Slide 9: HY2021 Financial Snapshot
REFINING NZ HY 2021 RESULTS HY2021 FINANCIAL SNAPSHOT PRESENTATION Maintained cash break-even operations at the Fee Floor HY 21 HY 20 Change • Fee Floor in operation since 1H20, protecting against the full extent of margin and demand Revenue - Refinery [1] NZ$M 90.3 96.5 ▼ 6% decline Revenue - Infra
Slide 10: HY21 v HY20 EBITDA Comparison
REFINING NZ HY21 v HY20 EBITDA COMPARISON HY 2021 RESULTS A significant improvement in EBITDA through refinery simplification PRESENTATION HY 21 HY 20 Processing Fee NZ$M 70.0 70.0 Refinery Throughput Mbbl 13.1 15.4 GRM US$/bbl 3.19 1.82 RAP Throughput Mbbl 7.1 7.5 NZ$M Pipeline Fee 14.9 16.3 NZ$M T
Slide 11: Strategic Review Update
REFINING NZ HY 2021 RESULTS PRESENTATION HY 21 PERFORMANCE STRATEGIC REVIEW UPDATE
Slide 12: Strategic Review Highlights 1H21
REFINING NZ HY 2021 RESULTS STRATEGIC REVIEW HIGHLIGHTS 1H21 Significant progress made to deliver Strategic Review outcomes PRESENTATION In-principle agreement with bp and Z Energy on commercial terms P Shareholder approval for the Import Terminal Conversion with 99% vote in favour (including Mobil)
Slide 13: Timeline for Strategic Review
REFINING NZ TIMELINE FOR STRATEGIC REVIEW Clear timeline to final decision and for transition HY 2021 RESULTS PRESENTATION Strategic Review Simplified Refinery Import terminal Final Investment Decision Import terminal Phase 1 implementation assessment/planning (FID) / Binding customer commencement (
Slide 14: Repurposing Opportunities
Initial opportunity assessment undertaken, with options REFINING NZ HY 2021 RESULTS REPURPOSING OPPORTUNITIES identified for further consideration1 PRESENTATION Horizon 3 New market / technology Horizon 2 Investment / market Green hydrogen development required Biofuels terminal services Horizon 1 Su
Slide 15: Refining NZ 2021 Interim Results Briefing
REFINING NZ HY 2021 RESULTS PRESENTATION REFINING NZ 2021 INTERIM RESULTS BRIEFING 15
Slide 16: Appendix 1 Glossary
REFINING NZ HY 2021 RESULTS PRESENTATION APPENDIX 1 GLOSSARY • LTIF – Lost time injury frequency (rolling 12 month per 200,000 hours) • TRCF – Total recordable case frequency (rolling 12 month per 200,000 hours) • Tier 1 Process Safety Event (API 754) – A tier 1 Process Safety Event (PSE) is an unpl
Slide 17: Appendix 2 Non-GAAP Measures
REFINING NZ 2020 ANNUAL RESULTS PRESENTATION APPENDIX 2 NON-GAAP MEASURES Refining NZ’s standard profit measure prepared under New Zealand Generally Accepted Accounting Practice (NZ GAAP) is net profit/(loss) after tax. Refining NZ has used non-GAAP measures when discussing financial performance in
Slide 18: Refining NZ 2021 Interim Results Briefing
REFINING NZ 2020 ANNUAL RESULTS PRESENTATION REFINING NZ 2021 INTERIM RESULTS BRIEFING 18