Channel Infrastructure Nz Limited · NZX:CHI
Channel Infrastructure Nz — Shareholder Meeting (April 2023)
27 slides from Channel Infrastructure Nz's shareholder meeting presentation, Apr 27, 2023
Slide 1: Annual Shareholders Meeting 2023
Annual Shareholders Meeting 2023 27 April 2023
Slide 2: Housekeeping
Infrastructure NZ Housekeeping Chris Bougen
Slide 3: Participate in Virtual Meetings
Participate in Virtual Meetings Shareholder & Proxyholder Q&A Participation Written Questions: Questions may be submitted ahead of the meeting. If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at anytime. Type your question into the
Slide 4: Chairman's address
Chairman’s address James Miller
Slide 5: Your Board - Strong and capable with the right skill set
Your Board - Strong and capable with the right skill set James Miller Anna Molloy Andrew Holmes Chairman, Independent Director Independent Director Independent Director Lucy Nation Vanessa Stoddart Paul Zealand Lindis Jones Director Independent Director Independent Director Director 5
Slide 6: Agenda
Agenda • Chairman’s address • CEO’s address • Resolutions and voting • General business
Slide 7: All 2022 key priorities delivered
All 2022 key priorities delivered Safe, reliable, and compliant refinery and terminal operations On time and on budget delivery of terminal conversion project Retain and build organisation capability through the transition Actively manage the transition to CHI with investors and debt providers Progr
Slide 8: New business model has delivered shareholder returns
New business model has delivered shareholder returns First profit in Recommenced dividends earlier than expected Share price outperformed three years Final Dividend Special Dividend Dividend Yield[1] Share price $17m 5 2 6.5% 52% From nine months of terminal operations CPS Fully imputed CPS Fully im
Slide 9: Significant number of improvements to governance and leadership
Significant number of improvements to governance and leadership • Corporate Governance Review undertaken in early 2022 to align Board and governance processes with new business, operations and strategy • First and now second Sustainability Report released by Channel Infrastructure, aligned with TCFD
Slide 10: New CEO to deliver to company's strategic plan
New CEO to deliver to company's strategic plan • Board has approved a 3-year Strategic Plan ahead of planned CEO transition • CEO transition began in November 2022 following the successful transition to Channel Infrastructure • Rob Buchanan became CEO on 6 March 2023 and is working hard with the Cha
Slide 11: CEO's address
SZ Channel CEO's address Rob Buchanan
Slide 12: Strong safety and environmental record continues through transition
Strong safety and environmental record continues through transition Strong safety Reduction in legacy Significantly reduced Supporting our people performance maintained contamination environmental impact through change Zero Tier 1 or Tier 2 process 30% 98% 97% safety incidents in 2022 reduction in l
Slide 13: Import terminal delivers improved financial profile
Import terminal delivers improved financial profile Sustainable financial performance Strong cashflow and Conversion project achieved during FY22 balance sheet significantly de-risked Revenue Leverage Net Assets 94% 3.4 Underpinned by x EBITDA fixed or ‘take or pay’ fees $1.39 $163M EBITDA EBITDA MA
Slide 14: Clear capital allocation framework to drive future returns for shareholders
Clear capital allocation framework to drive future returns for shareholders Long-term contracts delivering strong cash flow Returns to shareholders Dividend Policy of 60-70% of Deleveraging normalised Free Cash Flow [1] Focused growth Target leverage of 3 to 4 times EBITDA 2023 guidance implies indi
Slide 15: Stronger demand expected for Channel's infrastructure over the long term
Stronger demand expected for Channel’s infrastructure over the long term Marsden Point Throughput (Million Litres) 4,000 • Long-term utilisation of Channel's infrastructure underpinned by aviation 3,500 fuel demand 3,000 • Increasing volumes of renewable fuels expected over time 2,500 • Combined wit
Slide 16: Government fuel security measures to support supply chain resilience
Government fuel security measures to support supply chain resilience • NZ Government fuel resilience measures announced: • Government procurement of 70ML strategic diesel reserve • Minimum onshore fuel stockholding obligation for fuel wholesalers • Channel well placed to support our customers and th
Slide 17: New business model and demand outlook positions us well for growth
New business model and demand outlook positions us well for growth • Largest fuel terminal in NZ with scale benefits • Sustainable financial profile • Highly strategic assets adjacent to a natural deep-water port and pipeline to Auckland • Significant unutilised tank capacity (over 400ML) and 177ha
Slide 18: Our long-term growth opportunities will support NZ's decarbonisation
Our long-term growth opportunities will support NZ’s decarbonisation Expanding the Hydrogen Growth in other Marsden Point terminal Sustainable • NZ Government 70mL domestic terminal infrastructure aviation fuel FUTURE beyond diesel reserve Long-term Marsden Point Jet fuel • Minimum domestic renewabl
Slide 19: 2023 guidance upgraded in November 2022
2023 guidance upgraded in November 2022 EBITDA Indicative Normalised Indicative dividend range Free Cash Flow $82-86M $56-60M 9-11 cps Refer to FY22 NZX announcement, investor presentation, and Annual Report for full details, available at www.channelnz.com 51 9
Slide 20: 2023 priorities
2023 priorities Safe, reliable, and cost-efficient terminal operation and maintenance On-budget and on-time completion of the remaining conversion project works Work with Customers and Government to improve supply chain resilience Deliver on near-term growth opportunities (strategic diesel reserve,
Slide 21: Resolutions and Voting
Resolutions and Voting James Miller
Slide 22: Resolution 1: Fix fees and expenses of EY as auditors
Resolution 1: That Directors be authorised to fix the fees and expenses of EY as auditors to the Company for the year ending 31 December 2023.
Slide 23: Resolution 2: Increase in Directors' fees pool
Resolution 2: That the total amount of Directors’ fees that may be payable annually to all Directors in aggregate be increased with effect from the commencement of the current financial year by 3% from $900,000 to $927,000, such sum to be divided among the Directors as the Directors deem appropriate
Slide 24: Proposing a fee pool increase for Director Fees
Proposing a fee pool increase for Director Fees • Director fee pool limit last increased in 2018 Total Director Fees • No change sought through a significant period of 1,125,000 business transformation and workload • Following transition to the new operating model, 900,000 a review of director fees
Slide 25: Resolution 2: Increase in Directors' fees pool
Resolution 2: That the total amount of Directors’ fees that may be payable annually to all Directors in aggregate be increased with effect from the commencement of the current financial year by 3% from $900,000 to $927,000, such sum to be divided among the Directors as the Directors deem appropriate
Slide 26: General Business
of A/ A) Channel Infrastructure NZ General Business
Slide 27: This concludes the 2023 Annual Shareholders' Meeting
This concludes the 2023 Annual Shareholders’ Meeting. Thank you for attending.
Channel Infrastructure NZ — Shareholder Meeting (April 2023) on 6ix