Napier Port Holdings Ltd · NZX:NPH
Napier Port — Investor Day (March 2025)
39 slides from Napier Port's investor day presentation, Mar 6, 2025
Slide 1: Institutional Investor Briefing 6 March 2025
6 MARCH 2025 INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 1
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Napier Port Holdings Limited No liability: Napier Port, its shareholders, their respective advisers and Future performance: This presentation contains “forward-looking (together with Port of Napier Limited, "Napier Port"). This p
Slide 3: Strategy
INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 3
Slide 4: Our Strategy
Our Strategy INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 FUTURE READY: FOUNDATIONS, CAPABILITY, TRANSFORMATION 4
Slide 5: Strategic Advantages
Strategic Advantages • Premium cargo base that is diverse, defensible and resilient • Ease of access on the main international shipping route • Connected to road, rail and shipping • Strong social license • Innovative and invested culture • Strong regional tourism • Fully consented to enable expansi
Slide 6: Strong track record of delivery
Strong track record of delivery Foundation Setting Capability Building 0-3 Years 4-6 Years Strategy has built foundations and capability: Strategy Creation 6W/Te Whiti Wharf port expansion completed • Operational flexibility • Added value for and agility (‘Whole of cargo customers IPO Viewpoint Supp
Slide 7: Future Ready: Foundations, Capability, Transformation
INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 FUTURE READY: FOUNDATIONS, CAPABILITY, TRANSFORMATION 7
Slide 8: Capturing Opportunities
Capturing Opportunities • Growing cargo volumes • Balance sheet capacity available • Increasing yield through product to support growth and business mix, pricing for capital returns, development and providing value • Transformation - scalable, • Long-term horizon positive for efficient, resilient to
Slide 9: Customers & Cargo
INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 9
Slide 10: Driving Regional Trade and Global Connectivity
JAPAN TOKYO SHANGHAI Driving Regional CHINA NINGBO HONG KONG Trade and Global TO SOUTH EAST ASIA, INDIA, MIDDLE EAST, AFRICA AND EUROPE Connectivity SINGAPORE TO NORTH, CENTRAL AND SOUTH AMERICA Trade Positioning Global Connectivity and Supply Chains • Extensive trade links • Diversified trade
Slide 11: Containerised Cargo
Containerised Cargo Market Strength & Trade: • High demand cargo • Expanding food & fibre industry • Customer-centric & flexible approach Food & Fibre Fundamentals Expanding Trade & Infrastructure Readiness Networks • Sustained industry growth & Transshipments Supporting Balanced Trade • Infrastru
Slide 12: Viewpoint Supply Chain
Viewpoint Supply Chain Integrated Supply Expanding Cargo Strategic Infrastructure Chain Solutions Volumes & Market Reach & Regional Connectivity • Comprehensive landside logistics • Sustained growth since inception • KiwiRail partnership: utilising rail • Seamless end-to-end connectivity • Stren
Slide 13: Bulk Cargo
Bulk Cargo Contestable Wood Volume 0.7 Million Tonnes Log Export Growth 0.6 • NZ’s 2nd largest log export port & key finishing port 0.5 0.4 • Visible plantings and strong supply profile 0.3 • High proportion of forestry estate sourced wood (c50%) 0.2 • High demand: Strong log debarking throughput 0
Slide 14: Cruise Industry
Cruise Industry Short-Term Challenges • Australasian downturn: Geopolitical, biosecurity & cost pressures • Industry planning cycle: 2-Year cycle driving short-term fluctuations Long-Term Growth & Confidence • Fleet expansion: Larger ships supporting future itineraries Future Opportunities • Globa
Slide 15: Assets and Infrastructure & Sustainability
INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 15
Slide 16: Napier Port's asset management approach
Napier Port's asset management approach Engineering integrates engineering, strategic, and economic considerations to deliver resilient, sustainable, ASSET MANAGEMENT long-term infrastructure Strategy and enduring shareholder value. Economics INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 ASSETS AND
Slide 17: Discussion Points
Discussion Points • How do we create enduring value through the management of our asset portfolio - Asset Management • What are we investing in and why • What benefits do we expect to realise from these investments • When do we expect investment to occur • How do we integrate Sustainability and Env
Slide 18: Together We Build A Thriving Region By Connecting You To The World
OUR PURPOSE Together We Build A Thriving Region By Connecting You To The World OUR STRATEGIC GOALS Customer Harnessing Data Networked Collaborative Connection And Technology Infrastructure Partnerships OUR ORGANISATIONAL Aligning what we do in asset management with our strategic focus areas ensures
Slide 19: Our approach to creating enduring value: Asset Management
Our approach to What is Asset Management - “A systematic approach taken by creating enduring value: organisations to realise the maximum Asset Management value from its asset portfolio” NAPIER PORTS ASSET MANAGEMENT GOALS 1 Asset management plans adapt to changing demands, maximising the use of e
Slide 20: What are we investing in?
What are we investing in? Two distinct investment categories drive our decision making Maintaining our Growing our Existing Capability Capability Marine Infrastructure Trailing Suction Hopper Dredge Buildings, Civil Structures, Utilities Cranes Mobile Plant & Equipment Mooring Systems Floating Plant
Slide 21: What benefits do we expect to realise from these investments?
What benefits do we expect to realise from these investments? Enhanced productivity Reduced and operational safety risk performance Lower carbon Increased shareholder emissions and and enterprise value environmental effects INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 ASSETS AND INFRASTRUCTURE
Slide 22: Maintaining our Existing Capability
Maintaining Corporate Support Activity our Existing Operations MA RG Capability Asset Management IN S Investment decision Support Functions making takes a value chain approach - embedding asset Primary Activity management practices within Vessel Pilotage & Mooring & Cargo Cargo Storage Navigation To
Slide 23: Growing our Capability
TSHD Mooring New Operating Cranes Dredge Systems Modes Growing our Capability Enhancing our strategic relevance within the supply chain INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 ASSETS AND INFRASTRUCTURE & SUSTAINABILITY 23
Slide 24: Why we're choosing to deploy capital in specific areas
Why we’re choosing to deploy capital in An end-to-end view of cargo flows specific areas informs our investment decision making Deepening our channel ensures our strategic relevance is maintained by being able to meet the emerging needs of global shipping - ownership allows us to achieve this at a
Slide 25: An indicative timeline for delivery
An indicative timeline for delivery 2025 2026 2027 2028 2029 2030 Corporate Support Activity Operations MA RG Asset Management IN S Support Functions Primary Activity Vessel Pilotage & Mooring & Cargo Cargo Storage Navigation Towing Berthage Marshalling & Processing MA G IN R Building, S Asset Class
Slide 26: Sustainability Strategy on a Page
SUSTAINABILITY STRATEGY ON A PAGE PEOPLE PLANET PROSPERITY PARTNERSHIP Manakitanga Kaitiakitanga Ohanga Ora Rangapu Safe, Secure and Well Business Resilience Equity, Diversity and Healthy Reefs and Better Customer Oceans Outcomes Good Neighbour inclusion OBJECTIVES STRATEGIC Climate Action and Ethic
Slide 27: A progressive approach to emissions reduction
A progressive approach to emissions reduction Reducing emissions alongside our asset replacement strategy Current Initiatives: Five Kalmar Eco Seven Battery Hybrid and/or electric Reachstackers Electric forklifts crane technology (total of eight) (due April/May) under evaluation INSTITUTIONAL INVEST
Slide 28: Napier Port Transformation
INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 28
Slide 29: Transforming Napier Port for the future
Transforming Napier Port for the future Napier Port Transformation (NPT) focuses on operating as a sustainable business for the long term - operationally, economically, environmentally and socially. This positions ourselves operationally for future growth and meets growing demands of cargo customers
Slide 30: Motivations for Transformation
Motivations for Transformation Future-proofing customer needs requires efficient use of space and improved vessel productivity Current operating model has longer- term constraints - high capital and labour intensity due to equipment use Mature, commercially available technology enables consideration
Slide 31: A Horizontal Transport Solution
A Horizontal Transport Solution: Battery electric autonomous trucks for horizontal container transport INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 NAPIER PORT TRANSFORMATION 31
Slide 32: NPT Project: What benefits do we expect to realise
NPT Project: What benefits do we expect to realise Improve container Expand container terminal operational terminal capacity efficiency Reduce Maintain high operating costs standards of service Phased Improve vessel and productivity Scalable INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 NAPIER PORT T
Slide 33: Progress Overview: Current Status of NPT
Progress Overview Current Status of NPT Progress to Date Research, modelling, and Site visits to Thailand and China Design validation underway Pre-contracting phase with Investment simulations underway, reviewing autonomous truck with horizontal container trials a preferred supplier and decision to
Slide 34: Autonomous Truck Operations
Autonomous Truck Operations PLAY VIDEO INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 NAPIER PORT TRANSFORMATION 34
Slide 35: Financial Overview
INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 35
Slide 36: Earnings
Earnings Current earnings guidance • FY2025 Underlying Result from Operations of $55-59 million • Currently tracking towards top of range FY20 to FY25 Result from Operations CAGR estimate of c. 7.6% Future earnings • Target to earn WACC level returns on invested capital in period 5-10 years post 6 W
Slide 37: Capital Management
Capital Management Forecast capital expenditure range • FY25-27 average c. $40 million p.a. • Includes provision for: • c. $80m replacement maintenance capital • Includes 2x cranes, mobile plant fleet replacements, wharf major maintenance • c. $40m capacity & growth • $11m dredge investment
Slide 38: Capital Management
Capital Management Cyclone Gabrielle material damage and business interruption insurance claim • Final total settlement of $24m – balance of $7.5m of income in FY2025 Investment property holding under review – hold, develop, or trade • Whakatu 12.3 ha, BV of $13.6m Risk Reserve Investment Fund
Slide 39: INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025
INSTITUTIONAL INVESTOR BRIEFING 6 MARCH 2025 39