Channel Infrastructure Nz Limited · NZX:CHI
Channel Infrastructure Nz — Refining NZ — Shareholder Meeting (June 2021)
34 slides from Channel Infrastructure Nz's shareholder meeting presentation, Jun 29, 2021
Slide 1: Annual General Meeting 2020 Annual Results Presentation
REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 REFI NI NG NZ 2020 ANNUAL RESULTS use PRESENTATION ANNUAL SHAREHOLDERS MEETING 29 June 2021
Slide 2: Disclaimer
REFINING NZ DISCLAIMER ANNUAL GENERAL MEETING | 29 JUNE 2021 • This presentation does not constitute an offer or invitation by The New Zealand Refining Company Limited (hereafter referred to as “Refining NZ”) or any of its subsidiaries (together “the Group”) or any other person to acquire any securi
Slide 3: Board of Directors Speakers
BOARD OF DIRECTORS REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 Speakers SIMON ALLEN NAOMI JAMES Independent Director Chief Executive Officer RICCARDO CAVALLO LINDIS JONES JAMES MILLAR LUCY NATION VANESSA STODDART PAUL ZEALAND Manager of Refining Chief Financial Officer Independent Director Vic
Slide 4: Agenda
AGENDA REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 AGENDA CHAIRMAN’S ADDRESS CEO’S ADDRESS RESOLUTIONS GENERAL BUSINESS 4
Slide 5: Chairman's Address
REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 CHAIRMAN’S ADDRESS SIMON ALLEN
Slide 6: FY20 Performance
FY20 PERFORMANCE REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 Refining NZ has safely navigated the most challenging business environment in its 60-year history and established the pathway to future value creation for shareholders Best safety performance on record P Effective operational respons
Slide 7: Strategic Review
Optimal business model to maximise “through the cycle” STRATEGIC REVIEW returns to shareholders REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 STRATEGIC REVIEW CONTEXT CASE FOR CHANGE STRATEGIC REVIEW OUTCOME Significant decline in GRM, exacerbated Structural oversupply in refining capacity Simpl
Slide 8: Import Terminal Investment Highlights
IMPORT TERMINAL INVESTMENT Critical infrastructure delivering strong, stable earnings HIGHLIGHTS 1 through long term customer agreements REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 Critical and highly efficient infrastructure Long–term customer contracts Projected stable earnings and dividends
Slide 9: CEO Address
REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 CEO ADDRESS NAOMI JAMES
Slide 10: 2020 Performance Highlights
2020 PERFORMANCE HIGHLIGHTS Safely navigated COVID-19 impacts and reset cost base REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 FY 19 FY 20 Personal TRCF [1] 0.27 0 PSafe operations Process Tier 1 [1] 0 0 Tier 2 [1] 0 0 Releases outside of consent 1 5 Throughput Mbbl 42.7 29.9 PDeliver to custom
Slide 11: Refining Margins
REFINING MARGINS Second lowest GRM on record REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 • Low Asian refining margins due to excess capacity exacerbated by COVID-19 demand impacts • Refining NZ uplift impacted by volatility in shipping costs, yield impacts of cyclic mode and “hot stand-by” • P
Slide 12: Refinery Simplification
REFINERY SIMPLIFICATION Refinery simplified to enable cash neutral operations at the Fee Floor in 2021 REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 • Asset maintenance strategy - • 18% reduction in primary crude campaign approach, predictive intake maintenance • Bitumen production ceased Proces
Slide 13: Import Terminal Overview
IMPORT TERMINAL OVERVIEW Safe, reliable and efficient fuel supply to Auckland and Northland markets (c.40% of total New Zealand market) REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 Import Terminal System (ITS) 2 jetties with multi-product capability Jetty Yellow shaded area is an illustrative C
Slide 14: Product Demand
PRODUCT DEMAND Jet demand expected to underpin long-term import terminal utilisation REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 • Petrol and diesel demand expected to begin to decline in the next decade with transition from internal combustion engines to electric vehicles • Jet fuel demand gr
Slide 15: Repurposing Opportunities: Marsden Point as an Energy Hub
REPURPOSING OPPORTUNITIES Marsden Point as an Energy Hub REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 Horizon 3 New market / technology Horizon 2 Hydrogen imports, Investment / market production & storage development required Waste to energy Bio-fuel imports, blending Horizon 1 and production,
Slide 16: Commercial Arrangements
Stable earnings supported by take-or-pay agreements and COMMERCIAL ARRANGEMENTS relatively fixed operating and capital costs REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 • Non-binding, in principle agreements with bp and Z Energy. Negotiations continuing with Mobil. • Proposed commercial terms
Slide 17: Timeline to Conversion
TIMELINE TO CONVERSION Conversion target date by mid-2022 REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 Complete customer negotiations Shareholder & lender approvals and funding Completion of FEED and detailed planning Final investment decision targeted by end Q3, which would enable conversion b
Slide 18: A Planned Transition
A PLANNED TRANSITION REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 18
Slide 19: Simon Allen, Chairman
REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 SIMON ALLEN CHAIRMAN
Slide 20: Resolutions
REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 RESOLUTIONS ANNUAL MEETING
Slide 21: Election and Re-election of Directors
REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 RESOLUTIONS 1 - 3 ELECTION AND RE-ELECTION OF DIRECTORS
Slide 22: Resolution 1
RESOLUTION 1 REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 “That Mr Lindis Jones, who retires by rotation in accordance with clause 8.9 of the Constitution, be re-elected as a Director of the Company.”
Slide 23: Resolution 1 Voting Results
RESOLUTION 1 REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 RESOLUTION 1 FOR AGAINST DISCRETIONARY TOTAL ABSTAIN Proxies and 177,016,094 1,561,759 1,927,760 180,505,613 1,173,814 Postal votes
Slide 24: Resolution 2
RESOLUTION 2 REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 “That Ms Vanessa Stoddart, who retires by rotation in accordance with clause 8.9 of the Constitution, be re-elected as a Director of the Company.”
Slide 25: Resolution 2 Voting Results
RESOLUTION 2 REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 RESOLUTION 2 FOR AGAINST DISCRETIONARY TOTAL ABSTAIN Proxies and 177,696,156 829,307 1,993,810 180,519,273 1,160,154 Postal votes
Slide 26: Resolution 3
RESOLUTION 3 REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 “That Ms Lucy Nation, who retires by rotation in accordance with clause 8.8 of the Constitution, be elected as a Director of the Company.”
Slide 27: Resolution 3 Voting Results
RESOLUTION 3 REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 RESOLUTION 3 FOR AGAINST DISCRETIONARY TOTAL ABSTAIN Proxies and 177,507,728 988,272 1,993,810 180,489,810 1,189,617 Postal votes
Slide 28: Auditor Fees and Expenses
REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 RESOLUTION 4 AUDITOR FEES AND EXPENSES
Slide 29: Resolution 4
RESOLUTION 4 REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 “That Directors be authorised to fix the fees and expenses of Ernst & Young as auditor to the Company for the financial year ending 31 December 2021.”
Slide 30: Resolution 4 Voting Results
RESOLUTION 4 REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 RESOLUTION 4 FOR AGAINST DISCRETIONARY TOTAL ABSTAIN Proxies and 178,353,451 248,817 1,921,810 180,524,078 1,155,349 Postal votes
Slide 31: General Business
REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 GENERAL BUSINESS
Slide 32: Our Shareholders Are Key Stakeholders
REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 OUR SHAREHOLDERS ARE KEY STAKEHOLDERS We welcome your further feedback on our Strategic Review Please email us at corporate@refiningnz.com
Slide 33: Appendix 1: Glossary
REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 APPENDIX 1 Glossary LTIF - Lost time injury frequency (rolling 12 month per 200,000 hours) Gross Refining Margin (excluding Fee Floor/Margin Cap) / Singapore Complex Margin - The Gross Refining Margin is calculated in USD as the difference between th
Slide 34: Annual General Meeting 2020 Annual Results Presentation
REFINING NZ ANNUAL GENERAL MEETING | 29 JUNE 2021 REFI NI NG NZ 2020 ANNUAL RESULTS use PRESENTATION ANNUAL SHAREHOLDERS MEETING 29 June 2021