Napier Port Holdings Ltd · NZX:NPH
Napier Port — FY2024 Earnings Presentation
35 slides from Napier Port's earnings presentation, Nov 19, 2024
Slide 1: Investor Presentation
NAPIER PORT Te Herenga Waka o Ahuriri i Mobs. INVESTOR PRESENTATIO. | 19 NOVEMBER i od
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: Welcome and Introduction
WELCOME AND INTRODUCTION BLAIR O’KEEFFE, CHAIR Region and volumes recovering post-Cyclone Positive financial results achieving new milestones Fundamentals are strong – diverse and resilient cargo base, infrastructure and capability in place, and track record of operational delivery and resilience Co
Slide 5: FY2024 Overview
ewe =e FY2024 OVERVIEW °
Slide 6: Volume Growth Across All Trades
VOLUME GROWTH ACROSS ALL TRADES TRADE OVERVIEW FY2024 Variance Volume FY2024 FY2023 kT / TEU / calls % Total cargo (kT) 4,987 4,614 +373 +8.1 Containerised cargo (TEU) 230,000 222,000 +8,000 +3.4 Bulk cargo (kT) 3,472 3,184 +288 +9.0 - Logs exports (kT) 2,866 2,524 +342 +13.5 Cruise vessels (calls)
Slide 7: Strong Earnings Growth Driven by Volume Growth and Yield
STRONG EARNINGS GROWTH DRIVEN BY VOLUME GROWTH AND YIELD FINANCIAL RESULTS OVERVIEW FY2024 FY2023 Variance $M $M $M % Revenue 141.4 122.0 +19.4 +15.9 Result from operating activities 52.0 37.2 +14.8 +39.5 Net profit after tax – underlying¹ 20.7 10.7 +10.0 +94.6 Cash flow from operations – underlying
Slide 8: Infrastructure Capability and Operational Flexibility
INFRASTRUCTURE CAPABILITY AND OPERATIONAL FLEXIBILITY DRIVING A DYNAMIC PORT ENVIRONMENT FOR CUSTOMERS Responsive and adaptable 'whole of port’ planning ▪ Re-allocating land and wharves for different cargoes ▪ Redeploying assets and resources to meet customer demand Infrastructure investments underp
Slide 9: Strategies for Future Growth
STRATEGIES FOR FUTURE GROWTH Building back cargo ⚫ Volumes returning in key cargoes ⚫ Confidence in hort sector, Pan Pac Extending reach with supply chain solutions ⚫ Viewpoint supply chain ⚫ Increasing collaboration with Kiwirail Reshaping service delivery model ⚫ Increasing flexibility and custome
Slide 10: Sustainability Progress
SUSTAINABILITY PROGRESS PROGRESSING OUR STRATEGY & PLAN CONTINUES • Continuous progress on UN SDG-aligned strategy and 100-point action plan adopted in 2021: • 79% of initiatives ongoing and embedded in BAU • Diverse workstreams across People, Plant, Prosperity, Partnership pillars • Environmental M
Slide 11: Financial & Operating Performance
FINANCIAL & OPERATING PERFORMANCE
Slide 12: Revenue Growth Across All Key Areas
REVENUE GROWTH ACROSS ALL KEY AREAS SIGNIFICANT 15.9% TOTAL INCREASE • 15.9% year-on-year (YoY) increase in total revenue by $19.4m to a new high of $141.4m • Container services increased $8.2m (11.4%) to $79.5m • Bulk cargo revenue increased $7.4m (17.7%) to $49.2m • Cruise increased $3.7m (70.4%)
Slide 13: Container Services Revenue Growth
CONTAINER SERVICES REVENUE GROWTH 11.4% INCREASE ON RECOVERING VOLUME AND YIELD GAINS • Container services revenue increased $8.2m (11.4%) to $79.5m YoY • Total TEU volume increased 8,000 (+3.4%) • Strong rebound in refrigerated and chilled – Reefers up 9,000 TEU • Dry TEUs down 4,000 – pulp & timbe
Slide 14: Timber and Pulp Update
TIMBER AND PULP UPDATE WPI EXIT AND PAN PAC RECOVERY • WPI closure late FY2024 – exported 18k TEU of containerised timber and pulp in FY2024 • Increased supply of logs for export available • Pan Pac • Timber mill back at normal available capacity following return in 2H FY2024 • Pulp production build
Slide 15: Log Exports Driving Bulk Cargo Revenue Growth
LOG EXPORTS DRIVING BULK CARGO REVENUE GROWTH POSITIVE LOG SUPPLY-SIDE FACTORS • Bulk cargo revenue increased $7.4m (17.7%) to $49.2m YoY • Total volume increased by 0.29 million tonnes (+9%) to 3.47 million tonnes • Export log exports increased by 0.34 million tonnes (+13.5%) to 2.87 million tonnes
Slide 16: Bumper Cruise Season Positive for Region
BUMPER CRUISE SEASON POSITIVE FOR REGION CRUISE REVENUE NOW 6.4% OF TOTAL • Cruise revenue increased $3.7m (70.4%) to $9.1m YoY • Vessel visits increased from 64 to 89, with more than 138,000 passengers visiting the region • Currently 85 vessels booked for FY2025 season • On average – smaller vessel
Slide 17: Higher Operating Result Driven by Growth in Volume and Yield
HIGHER OPERATING RESULT DRIVEN BY GROWTH IN VOLUME AND YIELD • Result from operating activities up $14.7m (39.5%) to $52m • Overall increase driven by volume growth across all areas, strong yield management and operating leverage • Margin increase to 36.8% on cost focus and operating leverage RESULT
Slide 18: Net Profit Growth on Higher Operating Result
NET PROFIT GROWTH ON HIGHER OPERATING RESULT • Underlying NPAT¹ increased by $10.0m (94.6%) to $20.7m • Reported NPAT increased by $8.2m (49.7%) to $24.8m • Increase driven by operating result and net contribution of $8.9m from business interruption insurance claim • Partially offset by lower proper
Slide 19: Capital Expenditure
CAPITAL EXPENDITURE MOBILE PLANT FLEET RENEWAL CONTINUING • Capital expenditure of $15.3m1 • $7.5m site asset management – 3 Wharf fendering, maintenance dredging, breakwater works, eastern beach protection • $2.2m mobile plant – eco-reachstacker, plant major maintenance, other port mobile plant • $
Slide 20: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY FY2024 FY2023 Var $M $M $M Operating cash flows 53.9 37.2 +16.7 Investing cash flows (13.0) (14.0) +1.0 Dividends (13.1) (12.8) -0.3 Other financing cash flows (6.5) (7.2) +0.7 Increase / (reduction) in cash and cash equivalents 0.8 (0.8) (Increase) / reduction in total gross
Slide 21: Capital Management
CAPITAL MANAGEMENT SOUND FUNDING POSITION WITH POSITIVE INTEREST RATE PROFILE • Debt to EBITDA of 1.80x at 30 September 2024 • 2.12x excluding BI insurance claim • Down from 2.98x at end FY2023, and 2.16x at end HY2024 • Long-term target range of 2.0x – 3.0x • Weighted average term to debt maturity
Slide 22: Sustainability & Emissions Reporting
SUSTAINABILITY & EMISSIONS REPORTING REDUCING RELATIVE EMISSION INTENSITY • Total emissions (audited) increased 0.3% • Scope 1 increased 8.1% • Higher fuel usage on higher generator hours with rebound of reefer container volume • Lower fuel usage by forklifts on higher container volumes due to new e
Slide 23: Conclusions
CONCLUSIONS LOOKING FORWARD TO FY2025 Robust regional recovery with trade volumes by key customers returning Number of new financial milestones achieved in FY2024 Dynamic operational response and infrastructure capability cornerstone WPI closure a setback for community, NPH and NZ Napier Port divers
Slide 24: Outlook
OUTLOOK EARNINGS GROWTH LEVERAGED TO ONGOING VOLUME RECOVERY Fundamentals of 'food and fibre' remain strong Positive indicators: log exports, horticultural plantings & investments, cruise momentum Global and trade markets remain subdued – inflation and macro conditions easing Strategic initiatives s
Slide 25: FY2024 Dividend
FY2024 DIVIDEND Final dividend of 6.0 cps declared Fully imputed Record date: 6 December 2024 Payment date: 18 December 2024 Total dividends declared in respect of FY2024, of 9.0 cps, fully imputed (FY2023: 5.25 cps) 25
Slide 26: Questions
QUESTIONS tne A
Slide 27: Appendices
APPENDICES The following appended financial information provides a summary of financial information for the year ended 30 September 2024 (FY2024) compared to the corresponding period in 2023 (FY2023). Reconciliations provided are extracted from and should be read in conjunction with the Supplemental
Slide 28: Revenue
REVENUE NZ$000 FY2024 FY2023 Container services 79,479 71,323 Bulk cargo 49,165 41,761 Cruise 9,065 5,321 Sundry revenue 565 995 Revenue from port operations 138,274 119,400 Revenue from property operations 3,077 2,551 Total operating income 141,351 121,951 28
Slide 29: Operating Expenses
OPERATING EXPENSES Employee benefit expenses NZ$000 FY2024 FY2023 Wages & salaries 42,186 40,591 Other employee benefit expenses 3,285 2,922 Total employee benefit expenses 45,470 43,513 Property and plant expenses NZ$000 FY2024 FY2023 Plant expenses 5,411 5,724 Site expenses 2,653 2,365 Fuel & powe
Slide 30: Operating Expenses
OPERATING EXPENSES Other operating expenses NZ$000 FY2024 FY2023 Administration expenses 7,490 7,648 Occupancy expenses 10,185 8,680 Contract services 9,464 7,654 Other staff expenses 1,581 1,658 Total other operating expenses 28,720 25,639 30
Slide 31: Capital Expenditure
CAPITAL EXPENDITURE NZ$000 FY2024 FY2023 Development capex Mooring plant and equipment - 351 Other development capex 2,160 3,372 Total development capex 2,160 3,722 Replacement capex 12,585 8,224 Compliance and other capex 563 389 Total capex including capitalised finance costs 15,308 12,335 Movemen
Slide 32: Reconciliation of Underlying Net Profit After Tax
RECONCILIATION OF UNDERLYING NET PROFIT AFTER TAX¹ NZ$000 FY2024 FY2023 Reported net profit after tax 24,830 16,587 Adjustments: Fair value movements on investment properties (129) (1,225) Cyclone Gabrielle related expenses 304 708 Cyclone Gabrielle business interruption insurance income (9,250) (7,
Slide 33: Reconciliation of Underlying Net Cash Flows from Operating Activities
RECONCILIATION OF UNDERLYING NET CASH FLOWS FROM OPERATING ACTIVITIES¹ NZ$000 FY2024 FY2023 Reported net cash flows from operating activities 53,917 37,241 Adjustments Cyclone Gabrielle related expenses 304 708 Cyclone Gabrielle business interruption insurance income (9,605) (3,395) Tax impact of ad
Slide 34: 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 interest costs capitalised during construction • The payment
Slide 35: 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