Port Of Tauranga Limited · NZX:POT
Port Of Tauranga — H1 FY2018 Earnings Presentation
40 slides from Port Of Tauranga's earnings presentation, Feb 23, 2018
Slide 1: Presentation to Analysts
PRESENTATION TO ANALYSTS 23 February 2018
Slide 2: Disclaimer
Disclaimer The information in this presentation is for information purposes and has been prepared by Port of Tauranga Limited with due care and attention. However, neither the Company, nor any of its Directors, officers, employees, contractors or agents, shall have any liability whatsoever to any pe
Slide 3: Highlights
Highlights • Group NPAT up 12.6% • Revenue up 12.8% • Total trade up 13.4% • Container volumes up 15.8% • Transhipment up 47.6% • Imports up 20.7% • Exports up 9.4% • Interim dividend up 14%
Slide 4: Highlights
Highlights • Hub port role intensifies, with strong growth in transhipment from other New Zealand ports and Australia • Log exports increase on back of record international prices and demand from China
Slide 5: Current Focus
Current Focus • Planning for the next stage of growth – maximising capacity within current footprint to handle up to three million TEUs • Enhancing environmental performance • Maintaining long-term customer relationships for sustainable growth • Exploring new and emerging cargo categories, eg cars
Slide 6: Group Net Profit After Tax up 12.6%
Group Net Profit After Tax up 12.6% $50,000 $47,113 $41,858 $40,000 $38,508 $30,000 $20,000 $10,000 $0 2015 2016 2017
Slide 7: Parent Net Profit After Tax up 14.4%
Parent Net Profit After Tax up 14.4% $50,000 $38,693 $40,000 $33,818 $30,562 $30,000 $20,000 $10,000 $0 2015 2016 2017
Slide 8: Interim Dividend up 14%
Interim Dividend up 14% 8 6 5.7 5.0 4.6 4 2 0 2015 2016 2017
Slide 9: Net Debt / Net Debt + Equity
Net Debt / Net Debt +Equity 6 months ended 31 December 2016 50% 45% 40% 35% 30.7% 31.2% 30% 25.7% 25% 20% 15% 10% 5% 0% 2015 2016 2017
Slide 10: Total Trade up 13.4%
Total Trade up 13.4% 14,000 12,467 12,000 10,991 10,150 10,000 8,000 6,000 4,000 2,000 0 2015 2016 2017
Slide 11: Container Volumes up 15.8%
Container Volumes up 15.8% 650,000 590,803 600,000 550,000 510,074 500,000 470,928 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 2015 2016 2017
Slide 12: Transhipped TEUs up 47.6%
Transhipped TEUs up 47.6% July 2016 to December 2017 30,000 25,000 20,000 15,000 10,000 5,000 0 July August September October November December FY2017 FY2018
Slide 13: Transhipped Containers by Region
Transhipped Containers by Region 45,000 July - Dec 16 July - Dec 17 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 TEUs Australia Pac Is Nth Asia Sth Asia New USA East USA West South UK Zealand Coast Coast America /Europe
Slide 14: New Zealand Transhipment
New Zealand Transhipment Volumes more than trebling NZ Transhipped TEU 6 months to 31 December 2017 FY2017 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Auckland Lyttelton Marsden Napier Nelson Port Timaru Wellington Point Chalmers
Slide 15: Exports – Logs up 12.5%
Exports – Logs up 12.5% 4,000 3,500 3,282 2,918 3,000 2,415 2,500 2,000 1,500 1,000 500 0 2015 2016 2017
Slide 16: Exports – Dairy up 2.8%
Exports – Dairy up 2.8% 1,200 1,122 1,153 1,083 1,100 1,000 900 800 700 600 500 400 300 200 100 0 2015 2016 2017
Slide 17: Imports – Fertiliser up 3.1%
Imports – Fertiliser up 3.1% 400 350 323 333 294 300 250 200 150 100 50 0 2015 2016 2017
Slide 18: Imports – Grain & Dairy Feed Supplements up 34.7%
Imports – Grain & Dairy Feed Supplements up 34.7% 800 726 700 616 600 539 500 400 300 200 100 0 2015 2016 2017
Slide 19: New Kiwifruit Store
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Slide 20: Subsidiaries & Associate Companies
Subsidiaries & Associate Companies
Slide 21: Subsidiaries & Associates Net Profit After Tax
Subsidiaries & Associates Net Profit After Tax $10,000 $7,894 $7,908 $7,043 $5,000 $0 $000s 2015 2016 2017
Slide 22: Northport
Northport Continued trade growth Released “Vision for Growth” discussion document Container volumes increasing
Slide 23: Coda Group
Coda Group Tapper Transport / Priority Logistics / MetroPack / MetroBox / Dairy Transport Logistics Profit down 23.5% after loss of large customer at empty container depot Building 22,000m2 warehouse at Rolleston for Westland Milk
Slide 24: PrimePort Timaru
PrimePort Timaru Earnings up 36% on strong bulk trades Development of new oil terminal
Slide 25: Timaru Container Terminal
Timaru Container Terminal NPAT down due to prior period adjustment in pcp Expect nearly 90,000 TEU for FY18 (vs 85,000 TEU in FY17)
Slide 26: Quality Marshalling
Quality Marshalling NPAT up 28% Secured Tauranga Terminal Workshop Contract – August 2017
Slide 27: Outlook 2018
Outlook 2018 PORT OF TAURANGA NEW ZEALANI
Slide 28: Outlook 2018
Outlook 2018 • Expect to handle more than 1.2 million TEUs • Revised FY18 earnings guidance to between $92 million and $96 million
Slide 29: Log Exports
BD): NEW ZEALAND’S Port for the Fidwee YY) Log Exports Monthly Log Exports - All NZ “ Bs Thousand 88 o JFMAMJJASOND Syrave SM 2017 "2016 Source: GTIS
Slide 30: Record Log Prices
Record Log Prices A-grade export price 140 130 120 110 100 9 + JFMAMJJASOND 5 yr ave ==" 2016 ——— 2017 —H2018 Source: AgniHQ NZ$/t at-wharf-gate PORT OF TAURANGA NEW ZEALANI
Slide 31: Q317 Record Volumes for POT
Q317 Record Volumes for POT 1.09 > Log Export Vol. By Port (m? ,000) Prev. Ques m3 2017 Gisborne Napler Source: Elaborat Courtesy of Champion Freight Prchalmers Tauranga ‘wellington ‘whangaral Other
Slide 32: MetroPort Auckland
MetroPort Auckland Volumes up 8.4% Train programme increased from 78 to 86 trains per week Headroom still available on Auckland-Hamilton- Tauranga route
Slide 33: Cars
Cars
Slide 34: Parent Capital Expenditure 2015-2019
Parent Capital Expenditure 2015-2019 $80,000 $65,269 $58,863 $60,000 $54,327 $50,000 $40,000 $30,000 $20,000 $0 2015 2016 2017 2018F 2019F
Slide 35: Royal Caribbean Ovation of the Seas
Royal Caribbean Ovation of the Seas (called 3 times )
Slide 36: Environment
Environment • Investing in energy-efficient equipment (e.g. electric vehicles, LED lighting) • Utilising technology for dust suppression • Renovating stormwater infrastructure • New Environmental Manager appointed • Biosecurity initiatives in partnership with MPI, KVH and other primary producers
Slide 37: Community
Community • Sponsorship portfolio under review • Partnership approach to community initiatives • Significant Dividends returned to Bay of Plenty Regional Council via Quayside Holdings ($200 million Regional Infrastructure Fund)
Slide 38: TARA
TARA a Port NEW ZEALAND’S
Slide 39: Investor Day
Investor Day Looking to hold later this year
Slide 40: Thank You
NEW ZEALAND'S Porth fidure >>> q 7