Slides
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ANNUAL SHAREHOLDERS MEETING 2024
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2 BLAIR O’KEEFFE CHAIR
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3 This presentation has been prepared by Napier Port Holdings Limited (together with Port of Napier Limited, "Napier Port"). This presentation is being provided to you on the basis that you are, and you represent and warrant that you are, a person to whom the provision of the information in this presentation is permitted by the applicable laws and regulations of the jurisdiction in which you are situated without the need for registration, lodgement or approval of a formal disclosure document or any other filing or formality in accordance with the laws of that foreign jurisdiction. Information only; No reliance: This presentation is for information purposes only and you should not rely on this presentation. This presentation does not purport to contain all of the information that you may require or be complete. The historical information in this presentation is, or is based upon, information that has been released to NZX Limited ("NZX"). This presentation should be read in conjunction with Napier Port's other periodic and continuous disclosure announcements, which are available at www.nzx.com. The information in this presentation does not constitute a personal recommendation or service or take into account the particular needs of any recipient. The information in this presentation should be considered in the context of the circumstances prevailing at the date and time of the presentation and is subject to change without notice. No person is under any obligation to update this presentation nor to provide you with further information about Napier Port. This presentation does not constitute or form part of an offer to sell, or a solicitation of an offer to buy, any shares, securiti es or financial products in any jurisdiction. This presentation has not been and will not be filed with or approved by any regulatory authority in New Zealand or any other jurisdiction. Investment risk: An investment in securities in Napier Port is subject to investment and other known and unknown risks, some of which are beyond the control of Napier Port. Napier Port does not guarantee any particular rate of return or the performance of Napier Port. 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Any financial information provided in this presentation is for illustrative purposes only and is not represented as being indicative of Napier Port's views on its future financial condition and/or performance. Investors should be aware that certain financial data included in this presentation are 'non-GAAP financial measures'. Investors are cautioned not to place undue reliance on any non-GAAP financial measures included in this presentation, they do not have a standardised meaning prescribed by New Zealand Generally Accepted Accounting Standards and, therefore, may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with New Zealand Generally Accepted Accounting Standards. Past performance: Any past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not), a promise, representation, warranty or guarantee as to the past, present or the future performance of Napier Port. Future performance: This presentation contains "forward-looking statements", which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or similar expressions or the negative thereof. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of Napier Port that could cause the actual results, performance or achievements of Napier Port to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. No assurances can be given that the forward-looking statements referred to in this presentation will be realised. Given these uncertainties, you are cautioned not to rely on such forward-looking statements. Confidentiality and copyright: This presentation is strictly confidential and is intended for the exclusive benefit of the person to which it is presented. This presentation should not be copied, reproduced or redistributed without the prior written consent of Napier Port. Distribution of this presentation may be restricted or prohibited by law. 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4 DIRECTORS VINCENT TREMAINE JOHN HARVEY STEPHEN MOIR DEBBIE BIRCH DAN DRUZIANICKYLIE CLEGG
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AGENDA General Business and Questions Ordinary Resolutions Chief Executive’s address Chief Financial Officer's address Chair’s address Questions on Presentations, Annual Report, Financial Statements Close of Meeting
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2024 HIGHLIGHTS • Volumes and results rebounding post-Cyclone Gabrielle • Strong growth in revenue and operating earnings • $141.4 million revenue, up 15.9% from previous year • Fully imputed final dividend of $12 million or 6 cps declared (total dividend of $18 million or 9 cps) • Net profit after tax of $24.8 million, up 49.7% from previous year • No incidents of serious harm during the year • Confidence in volume bounce back and track record of delivery and resilience
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7 TODD DAWSON CHIEF EXECUTIVE
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STRONG ANNUAL RESULT Infrastructure investments underpin capability Responsive and adaptable ‘whole of port’ planning Volume and earnings growth across all trades
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9 STRATEGIES FOR FUTURE GROWTH BEING ADAPTABLE, CUSTOMER FOCUSED, CREATING VALUE, WELLBEING Reshaping service delivery model Maintaining cost discipline and building returns Extending reach with supply chain solutions Building back volumes in existing cargo base
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10 SUSTAINABILITY PROGRESS STRATEGY AND ACTION PLAN CONTINUES Diverse workstreams across People, Plant, Prosperity, Partnership pillars Emissions up 0.3% on cargo tonnage increase of 8.1% 79% of the 100-point action plan initiatives underway Continuous progress on UN SDG-aligned strategy 4th climate change report and 3yrs certification
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11 KRISTEN LIE CHIEF FINANCIAL OFFICER
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12 Log exports 69% Woodpulp 5% Apples & pears 6% Timber 4% Meat 4% Fresh produce 3% Other 9% Logs Woodpulp Apples & pears Timber Meat Fresh produce Other VOLUME GROWTH ACROSS ALL TRADES 89 CRUISE VESSELS 4.9 TOTAL CARGO HANDLED FY24 EXPORT CARGO BY WEIGHT MILLION TONNES 2.8 OF LOG EXPORTS MILLION TONNES +8.1% 230 CONTAINERS THOUSAND TEU +3.4% +13.5% TEU = Twenty-foot container equivalent unit +25
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13 FY23 REVENUE Container services $79.5m Bulk cargo $49.2m Cruise $9.1m Other $3.6m FY24 REVENUE +$7.4m +$3.7m REVENUE GROWTH ACROSS ALL KEY AREAS $141.4 MILLION TOTAL REVENUE 15.9%YEAR-ON-YEAR REVENUE GROWTH +$8.2m
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14 37.2 16.6 52.0 24.8 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 Result from Operating Activities NPAT (reported) Millions FY2023 FY2024 HIGHER OPERATING RESULT AND NET PROFIT ON VOLUME AND YIELD GROWTH
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15 CAPITAL MANAGEMENT • Continued robust operating cashflow of $53.9m (+$16.7m) • Total drawn debt reduced by $20.5m to $109.5m • additional undrawn bank facilities of $70.5m available • Debt to EBITDA ratio of 1.80x – down from 2.98x in the prior year • Final dividend payout increased to $12m (+$4.9m), and total dividends for FY2024 increased to $18m (+$7.5m) – fully imputed SOUND FINANCIAL POSITION
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16 TODD DAWSON CHIEF EXECUTIVE
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LOOKING AHEAD FY2025 Infrastructure and capability in place and supporting growth Guidance for FY2025 for underlying result from operating activities between $55m and $59m FY2025 trading to date in-line with expectations Fundamentals of ‘food and fibre’ remain strong Earnings growth momentum set to continue Higher levels of capital expenditure in near term – fleet renewals and asset management works Strong position to continue to grow dividends
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18 DREDGE INVESTMENT ANNOUNCEMENT • Collaborative joint venture with Port Otago to own and operate a new TSHD dredge vessel • Supporting future strategic relevance and securing deep-sea capability for international shipping • Enables gradual and continuous deepening of berths & channel from existing 12.5 metres to consented 14.5 metres • Long-term cost effective and flexible solution • Builds on earlier collaborations with Port Otago and utilises their expertise in dredging LIMITED PARTNERSHIP AGREEMENT WITH PORT OTAGO
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QUESTIONS ON PRESENTATIONS
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ORDINARY BUSINESS
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21 VOTING INSTRUCTIONS
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22 RESOLUTION 1 To elect Debbie Birch as a director of the company
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23 RESOLUTION 1 To elect Debbie Birch as a director of the company For Open Against Abstain Proxies 156,414,812 (98.42%) 923,269 (0.58%) 1,580,017 (0.99%) 27,310
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24 RESOLUTION 2 To re-elect Vincent Tremaine as a director of the company
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25 RESOLUTION 2 To re-elect Vincent Tremaine as a director of the company For Open Against Abstain Proxies 156,517,311 (98.48%) 923,269 (0.58%) 1,486,585 (0.94%) 18,243
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26 RESOLUTION 3 To re-elect Blair O’Keeffe as a director of the company
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27 RESOLUTION 3 To re-elect Blair O’Keeffe as a director of the company For Open Against Abstain Proxies 156,509,477 (98.48%) 921,269 (0.58%) 1,495,759 (0.94%) 18,903
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28 RESOLUTION 4 To authorise that the director fees be set as a total annual fee pool of $795,000 (plus GST if any), being an increase of $140,000 from $655,000, with the annual fee pool to apply from the 2025 financial year, and be divided among the directors as the Board determines, and as more particularly described in Explanatory Note 2.
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29 RESOLUTION 4 For Open Against Abstain Proxies 46,066,064 (94.32%) 866,550 (1.77%) 1,908,464 (3.91%) 37,300 To authorise that the Director fees be set as a total annual fee pool of $795,000 (plus GST if any), being an increase of $140,000 from $655,000, with the annual fee pool to apply from the 2025 financial year and be divided among the directors as the Board determines, and as more particularly described in Explanatory Note 2.
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30 RESOLUTION 5 To authorise directors to fix the Auditors remuneration for the ensuing year
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31 RESOLUTION 5 For Open Against Abstain Proxies 156,525,135 (98.49%) 920,318 (0.58%) 1,482,002 (0.93%) 17,953 To authorise directors to fix the Auditors remuneration for the ensuing year
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VOTING
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GENERAL BUSINESS
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MEETING CLOSED