Port of Tauranga Half Year Results (Dec 2016)

u: \documents\word\pressreleases\2017\nzx notification - interim year result dec 2016.docx




23 February 2017



NZX
Wellington



Dear Sir/Madam

PORT OF TAURANGA LIMITED INTERIM RESULTS: 31 DECEMBER 2016

In accordance with the NZ Stock Exchange Listing Rules, please find attached the following
documentation for release to the market:

1 Press Release
2 Financial Statements
3 NZX Appendix 1 – Prescribed Disclosure
4 NZX Appendix 7 – Notice of Event Affecting Securities
5 Investor Presentation

Yours sincerely


Steve Gray
CHIEF FINANCIAL OFFICER

---

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


1
CONSOLIDATED INCOME STATEMENTS
For the six months ended 31 December 2016


(Unaudited)
Six Months
Ended

31 December
2016

Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2015
Group
NZ$000
(Audited)
Year
Ended
30 June
2016
Group
NZ$000



Revenue
125,328
121,927 245,026
Other income
0
999 495
Operating income 125,328
122,926 245,521



Contracted services for port operations
(26,544)
(25,596) (52,700)
Employee benefit expenses
(16,069)
(16,318) (32,101)
Direct fuel and power expenses
(3,306)
(3,586) (6,995)
Maintenance of property, plant and equipment
(4,423)
(5,643) (10,021)
Other expenses
(6,759)
(7,310) (13,961)
Operating expenses (57,101)
(58,453) (115,778)
Results from operating activities 68,227
64,473 129,743



Depreciation and amortisation
(12,140)
(11,791) (23,722)
Impairment of property, plant and equipment
0
0 (30)

(12,140)
(11,791) (23,752)



Operating profit before finance costs and taxation 56,087
52,682 105,991



Finance income
229
374 666
Finance expenses (refer note 6)
(8,362)
(8,916) (17,006)
Net finance costs (8,133)
(8,542) (16,340)



Share of profit from Equity Accounted Investees
7,894
7,043 13,437
Profit before income tax 55,848
51,183 103,088
Income tax expense
(13,990)
(12,619) (25,774)
Profit for the period 41,858
38,564 77,314



Attributable to:

Owners of the Parent Company
41,858
38,564 77,314
Profit for the period 41,858
38,564 77,314



Basic and diluted earnings per share attributable to
ordinary equity holders of the Parent Company (cents)
6.2*
5.7* 11.4*

*On 17 October 2016, the Parent Company completed a 5:1 share split.

These statements are to be read in conjunction with the notes on pages 6 to 11.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the six months ended 31 December 2016



(Unaudited)
Six Months
Ended
31 December
2016
Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2015
Group
NZ$000
(Audited)
Year
Ended
30 June
2016
Group
NZ$000


Profit for the period
41,858
38,564 77,314



Other comprehensive income

Items that are or may be reclassified to profit or
loss:


Cash flow hedge – changes in fair value
4,761
399 (9,198)
Cash flow hedge – reclassified to profit or
loss
1,142
(962) 2,126
Changes in cash flow hedges transferred to
property, plant and equipment, net of tax
708
(357) (452)
Share of net change in cash flow hedge
reserves of Equity Accounted Investees
243
(77) (395)

6,854
(997) (7,919)


Items that will never be reclassified to profit
or loss:


Impairment of property, plant and
equipment taken to revaluation reserve, net
of tax
0
0 (459)
Share of net change in revaluation reserves
of Equity Accounted Investees
621
0 (57)

621
0 (516)
Total other comprehensive income
7,475
(997) (8,435)
Total comprehensive income 49,333
37,567 68,879


Attributable to:

Owners of the Parent Company
49,333
37,567 68,879
Total comprehensive income 49,333
37,567 68,879

These statements are to be read in conjunction with the notes on pages 6 to 11.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


3
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the six months ended 31 December 2016




Share
Capital
Share
Based
Payment
Reserve


Hedging
Reserve


Revaluation
Reserve


Retained
Earnings



Total
Group Group Group Group Group Group
NZ$000 NZ$000 NZ$000 NZ$000 NZ$000 NZ$000

Balance at 30 June 2015 68,267 1,041 (6,454) 666,156 158,540 887,550

Profit for the period 0 0 0 0 38,564 38,564
Total other comprehensive income 0 0 (997) 0 0 (997)
Total comprehensive income 0 0 (997) 0 38,564 37,567

Increase in share capital 310 0 0 0 0 310
Dividends paid during the period
(refer note 7)
0 0 0 0 (40,835) (40,835)
Equity settled share based payment 0 647 0 0 0 647
Total transactions with owners in
their capacity as owners
310 647 0 0 (40,835) (39,878)
Balance at 31 December 2015 68,577 1,688 (7,451) 666,156 156,269 885,239

Profit for the period 0 0 0 0 38,750 38,750
Total other comprehensive income 0 0 (6,922) (516) 0 (7,438)
Total comprehensive income 0 0 (6,922) (516) 38,750 31,312

Increase in share capital (315) 0 0 0 0 (315)
Dividends paid during the period 0 0 0 0 (31,307) (31,307)
Equity settled share based payment 0 755 0 0 0 755
Total transactions with owners in
their capacity as owners
(315) 755 0 0 (31,307) (30,867)
Balance at 30 June 2016 68,262 2,443 (14,373) 665,640 163,712 885,684

Profit for the period 0 0 0 0 41,858 41,858
Total other comprehensive income 0 0 6,854 621 0 7,475
Total comprehensive income 0 0 6,854 621 41,858 49,333

Increase in share capital 12 0 0 0 0 12
Dividends paid during the period
(refer note 7)
0 0 0 0 (74,864) (74,864)
Equity settled share based payment 0 937 0 0 0 937
Total transactions with owners in
their capacity as owners
12 937 0 0 (74,864) (73,915)
Balance at 31 December 2016 68,274 3,380 (7,519) 666,261 130,706 861,102

These statements are to be read in conjunction with the notes on pages 6 to 11.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


4
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at 31 December 2016



(Unaudited)
31 December
2016
Group
NZ$000
(Unaudited)
31 December
2015
Group
NZ$000
(Audited)
30 June
2016
Group
NZ$000



Assets

Property, plant and equipment (refer note 8)
1,158,380
1,100,501 1,127,386
Intangible assets
18,164
21,663 18,426
Investments in Equity Accounted Investees
125,542
120,869 123,290
Receivables
46
0 46
Total non current assets 1,302,132
1,243,033 1,269,148



Cash and cash equivalents
8,699
6,010 11,580
Receivables and prepayments
45,564
43,558 41,546
Inventories
58
363 93
Derivative financial instruments (refer note 12)
0
170 0
Total current assets 54,321
50,101 53,219
Total assets 1,356,453
1,293,134 1,322,367


Equity

Share capital
68,274
68,577 68,262
Share based payment reserve
3,380
1,688 2,443
Hedging reserve
(7,519)
(7,451) (14,373)
Revaluation reserve
666,261
666,156 665,640
Retained earnings
130,706
156,269 163,712
Total equity attributable to owners of the
Parent Company
861,102
885,239 885,684
Total equity 861,102
885,239 885,684



Liabilities

Loans and borrowings (refer note 9)
145,276
125,130 130,200
Derivative financial instruments (refer note 12)
8,955
8,901 17,063
Provisions
1,718
1,596 1,627
Deferred tax liabilities
57,268
58,736 55,408
Total non current liabilities 213,217
194,363 204,298



Loans and borrowings (refer note 9)
245,000
187,000 190,000
Deferred consideration
0
500 0
Derivative financial instruments (refer note 12)
381
542 1,438
Trade and other payables
31,767
20,049 30,107
Provisions
1,250
1,524 2,293
Provision for tax
3,736
3,917 8,547
Total current liabilities 282,134
213,532 232,385
Total liabilities 495,351
407,895 436,683
Total equity and liabilities 1,356,453
1,293,134 1,322,367
Net tangible assets per share (dollars per
share)
1.24*
1.27* 1.27*

*On 17 October 2016, the Parent Company completed a 5:1 share split.

These statements are to be read in conjunction with the notes on pages 6 to 11.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


5
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six months ended 31 December 2016



(Unaudited)
Six Months
Ended
31 December
2016
Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2015
Group
NZ$000
(Audited)
Year
Ended
30 June
2016
Group
NZ$000



Cash flows from operating activities

Cash inflows
124,506
122,440 249,008
Cash outflows
(81,410)
(90,598) (160,939)
Net cash inflow from operating activities 43,096
31,842 88,069



Cash flows from investing activities

Cash inflows
6,658
7,547 23,433
Cash outflows
(47,700)
(17,560) (60,730)
Net cash used in investing activities (41,042)
(10,013) (37,297)



Cash flows from financing activities

Cash inflows
70,112
7,098 15,379
Cash outflows
(75,047)
(40,835) (72,489)
Net cash used in financing activities (4,935)
(33,737) (57,110)



Net (decrease)/increase in cash and cash
equivalents
(2,881)
(11,908) (6,338)
Add opening cash brought forward
11,580
17,918 17,918
Ending cash carried forward 8,699
6,010 11,580



RECONCILIATION OF PROFIT FOR THE
PERIOD TO CASH FLOWS FROM
OPERATING ACTIVITIES


Profit for the period 41,858
38,564 77,314



Adjustments for non cash and non
operating items


Depreciation and amortisation expense
12,140
11,791 23,722
Decrease in deferred taxation expense
(711)
(1,264) (1,845)
Share of surpluses retained by Equity
Accounted Investees
(7,894)
(7,043) (13,437)
Other
1,262
512 1,115

4,797
3,996 9,555


Add/(less) movements in working capital
(3,559)
(10,718) 1,200
Net cash flows from operating activities 43,096
31,842 88,069

These statements are to be read in conjunction with the notes on pages 6 to 11.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


6
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2016


1 REPORTING ENTITY

Port of Tauranga Limited (the “Parent Company”) is a company incorporated and
domiciled in New Zealand, registered under the Companies Act 1993 and listed
on the New Zealand Stock Exchange (“NZX”). It is an FMC reporting entity for
the purposes of the Financial Markets Conduct Act 2013. The Parent Company,
which is designated as profit-oriented for financial reporting purposes, is an issuer
in terms of the Financial Reporting Act 2013.

The unaudited interim financial statements (the “financial statements”) for Port of
Tauranga Limited comprise the Port of Tauranga Limited, its subsidiaries, and
the Group’s interest in Equity Accounted Investees (together referred to as the
“Group”).


2 BASIS OF PREPARATION

These financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZ GAAP”) and New Zealand
International Accounting Standard (“NZ IAS”) 34 Interim Financial Reporting.
They do not include all information required for full annual financial statements
and should be read in conjunction with the annual financial statements and
related notes included in Port of Tauranga Limited’s Annual Report for the year
ended 30 June 2016.


3 SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted are consistent with those followed in the
preparation of the Group’s annual financial statements for the year ended 30 June
2016.

The following new standard is not yet effective in preparing these financial
statements:

New Zealand International Financial Reporting Standards (“NZ IFRS”) 9
Financial Instruments

This standard was issued on 24 July 2014 and affects the classification and
measurement of financial assets and also widens the scope on impairment
judgements. The standard will be effective for annual periods beginning on or
after 1 January 2018, and will be applied retrospectively with some exemptions.
Early adoption is permitted.

This standard becomes mandatory for the Group’s 2019 consolidated financial
statements and could change the classification and measurement of financial
assets. Management is currently in the process of evaluating the potential effect
of the adoption of NZ IFRS 9.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


7

4 ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of the financial statements in conformity with NZ IAS 34 requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.

In preparing these financial statements, the significant judgements made by
management in applying the Group’s accounting policies and the key sources of
estimation and uncertainty, were the same as those applied to the Group’s
consolidated financial statements for the year ended 30 June 2016.


5 SEGMENT INFORMATION

The Group determines and presents operating segments based on the
information that is internally provided to the Chief Executive, who is the Group’s
Chief Operating Decision Maker (“CODM”), as defined by NZ IFRS 8 Operating
Segments.

The Group operates in three main reportable segments, being:

• Port Operations – consists of providing and managing port services, and
cargo handling facilities through the Port of Tauranga Limited and the
Timaru Container Terminal Limited. Port terminals and bulk operations
have been aggregated together within the Port Operations segment, due
to the similarities in economic characteristics, customers, nature of
products and processes, and risks.

• Property Services – consists of managing and maintaining the Port of
Tauranga Limited’s property assets.

• Marshalling Services – consists of the contracted terminal operations and
marshalling activities of Quality Marshalling (Mount Maunganui) Limited.

The three main business segments are managed separately as they provide
different services to customers and have their own operational and marketing
requirements.

The remaining activities of the Group are not allocated to individual business
segments.

The Group operates in one geographical area, that being New Zealand.

Due to the significant shared cost base of the Port activities, operating costs,
measures of profitability, assets and liabilities are aggregated and are not
reported to the CODM at a segment level, but rather at a port level, as all business
decisions are made at a “whole port level”.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


8



Six Months Ended
31 December 2016
Port
Operations
Group
NZ$000
Property
Services
Group
NZ$000
Marshalling
Services
Group
NZ$000

Unallocated
(1)

Group
NZ$000


Group
NZ$000

Total segment revenue
(external)
110,602 12,390 2,336 0 125,328

Other income and
expenditure:

Share of profit from Equity
Accounted Investees
0 0 0 7,894 7,894
Interest income 0 0 1 228 229
Other income 0 0 0 0 0
Interest expense 0 0 0 (8,362) (8,362)
Depreciation and
amortisation expense
0 0 (378) (11,762) (12,140)
Other unallocated
expenditure
0 0 (931) (56,170) (57,101)
Income tax expense 0 0 (289) (13,701) (13,990)
Total other income and
expenditure
0 0 (1,597) (81,873) (83,470)
Total segment result 110,602 12,390 739 (81,873) 41,858

(1)
Operating costs are not allocated to individual business segments within the Parent Company.



Six Months Ended
31 December 2015
Port
Operations
Group
NZ$000
Property
Services
Group
NZ$000
Marshalling
Services
Group
NZ$000

Unallocated
(1)

Group
NZ$000


Group
NZ$000

Total segment revenue
(external)
102,779 12,370 6,778 0 121,927

Other income and
expenditure:

Share of profit from Equity
Accounted Investees
0 0 0 7,043 7,043
Interest income 0 0 0 374 374
Other income 0 0 203 796 999
Interest expense 0 0 0 (8,916) (8,916)
Depreciation and
amortisation expense
0 0 (1,084) (10,707) (11,791)
Other unallocated
expenditure
0 0 (4,952) (53,501) (58,453)
Income tax expense 0 0 (265) (12,354) (12,619)
Total other income and
expenditure
0 0 (6,098) (77,265) (83,363)
Total segment result 102,779 12,370 680 (77,265) 38,564

(1)
Operating costs are not allocated to individual business segments within the Parent Company.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


9

6 FINANCE EXPENSES


Six Months
Ended
31 December
2016
Group
NZ$000
Six Months
Ended
31 December
2015
Group
NZ$000



Interest expense on borrowings
9,309
9,030
Less:


Interest capitalised to property, plant
and equipment
(949)
(263)

8,360
8,767



Interest on deferred consideration
0
25
Ineffective portion of changes in fair
value of cash flow hedges
2
124
Total finance expenses 8,362
8,916


7 DIVIDENDS

The following dividends were paid by the Group:


Six Months
Ended
31 December
2016
Group
NZ$000
Six Months
Ended
31 December
2015
Group
NZ$000



Final dividend of 30 cents per share
(2015: 30.0 cents per share)
40,835
40,835
Special dividend of 25 cents per share
(2015: Nil)
34,029
0
Total dividends paid 74,864
40,835


8 PROPERTY, PLANT AND EQUIPMENT

Acquisitions and Disposals

During the six months ended 31 December 2016, the Group acquired assets with
a cost of $44.021 million (six months ended 31 December 2015: $16.627 million).

During the six months ended 31 December 2016, the Group disposed of assets
with a carrying value of $0.144 million (six months ended 31 December 2015:
$2.410 million).

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


10

9 LOANS AND BORROWINGS

Commercial Papers

At 31 December 2016 the Group had $245 million of commercial paper debt that
is classified within current liabilities (2015: $185 million). Due to this classification,
the Group’s current liabilities exceed the Group’s current assets. Despite this
fact, the Group does not have any liquidity or working capital concerns as a result
of the commercial paper debt being interchangeable with direct borrowings within
the standby revolving cash advance facility which is a term facility.

Standby Revolving Cash Advance Facility Agreement

The Parent Company has a $280 million (2015: $280 million) financing
arrangement with ANZ Bank New Zealand Limited, Bank of New Zealand Limited
and the Commonwealth Bank of Australia, New Zealand branch. The facility,
which is secured, provides for both direct borrowings and support for issuance of
commercial papers.

Revolving Cash Advance Facility

The Parent Company has a $30 million (2015: $30 million) revolving cash
advance facility with ANZ Bank New Zealand Limited, used for headroom
purposes. The facility expires 13 months after the date of notice given by the
Parent Company or ANZ Bank New Zealand Limited.


10 RELATED PARTY TRANSACTIONS AND BALANCES

Related party transactions and balances with related parties:

Six Months
Ended
31 December
2016
NZ$000
Six Months
Ended
31 December
2015
NZ$000


Transactions With Equity Accounted Investees

Services provided to Port of Tauranga Limited
239
4
Services provided by Port of Tauranga Limited
1,339
908
Accounts receivable by Port of Tauranga Limited
282
305
Accounts payable by Port of Tauranga Limited
67
0
Advances by Port of Tauranga Limited
6,919
7,519
Services provided to Quality Marshalling Limited
0
29
Services provided by Quality Marshalling Limited
1,863
1,756
Accounts receivable by Quality Marshalling Limited
459
397
Accounts payable by Quality Marshalling Limited
0
7

During the six months ended 31 December 2016 the Group entered into
transactions with companies in which Group Directors hold directorships. These
directorships have not resulted in the Group having a significant influence over
the operations, policies, or key decisions of these companies.

No related party debts have been written off or forgiven during the period.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


11
Controlling Entity

Quayside Securities Limited owns 54.14% (as at 31 December 2015: 54.14%)
of the issued ordinary shares in Port of Tauranga Limited.

Quayside Securities Limited is beneficially owned by Bay of Plenty Regional
Council, the Ultimate Controlling Party. Transactions with the Ultimate
Controlling Party during the period include services provided to Port of Tauranga
Limited $11,852 (six months ended 31 December 2015: $7,717).

Transactions with Key Management Personnel

The Group does not provide any non cash benefits to Directors and executive
officers in addition to their Directors’ fees or salaries.

Six Months
Ended
31 December
2016
Group
NZ$000
Six Months
Ended
31 December
2015
Group
NZ$000



Short term employee benefits

Directors’ fees
330
241
Executive salaries
1,654
1,561


11 COMMITMENTS


Six Months
Ended
31 December
2016
Group
NZ$000
Six Months
Ended
31 December
2015
Group
NZ$000



Capital commitments

Estimated capital commitments for the
Group contracted for at the reporting
date but not provided for
9,127
45,986

Capital commitments at 31 December 2016 relate to the purchase of plant and
machinery, and the construction of two sheds.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


12

12 FINANCIAL INSTRUMENTS

The fair value of financial instruments traded in active markets is based on quoted
market prices at the reporting date.

The fair value of financial instruments that are not traded in active markets (for
example over-the-counter derivatives) are determined by using market accepted
valuation techniques incorporating observable market data about conditions
existing at each reporting date.

The fair value of interest rate swaps is calculated as the present value of the
estimated future cash flows. The fair value of forward exchange contracts is
determined using quoted forward exchange rates at the reporting date.

Derivative financial instruments are categorised as Level 2 in the fair value
measurement hierarchy.


13 SUBSEQUENT EVENTS

There have been no subsequent events.

---

EXCEL\APPENDIX 7\Appendix 7 - Feb 15
Appendix 7 of Listing Rules.
Number of pages including this one
(Please provide any other relevant
NZX Listing Rule 7.12.2. For rights, Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapital
If ticked, stateFull
non-renouncable
changeCallDividend
/
whether:
Interim
/
YearSpecial
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this event
If more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Payment
Amount per security
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Credits
issue state strike priceWithholding Tax(Give details)
Timing
(Refer Appendix 8 in the Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlementsAlso, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of record date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
Reprinted May 2006Page 1 of 1
Retained earnings
$34,029,061.50
In dollars and cents
NZD
$
Date Payable
Enter N/A if not
applicable
24 March 2017
$0.008823
NZPOTE0001S4
$0.0034720.019444
10 March 201724 March 2017
EMAIL: announce@nzx.com
S G GRAY
PORT OF TAURANGA LIMITED
23
$0.05
Notice of event affecting securities
07 572 889907 572 8800
DIRECTORS RESOLUTION
022017
ORDINARY SHARES

---

Presentation toAnalysts
23 February 2017

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 o
r agents,
shall have any liability whatsoever to any person, for any loss or damage re
sulting
from the use or reliance on this presentation.
• The information contained in this presentation is not intended to be reli
ed upon as
advice to investors and does not take into account the investment objectiv
es,
financial situation or needs of any particular investor.
• Past performance is not indicative of future performance and no guarante
eoffuture
returns is implied or given.
• The information contained in this presentation should be considered in c
onjunction
with the Company’s latest audited financial statements which are availab
le in the
investor section of our website.

Underlying Group Surplus After Taxation up 8.5%
$38,564
$38,508
$41,858
$0
$10,000$20,000$30,000$40,000$50,000
2014
2015
2016
6 months ended 31 December 2016
$000s

Underlying Parent Surplus After Taxation up 10.7%
$30,562
$31,119
$33,818
$0
$10,000$20,000$30,000$40,000$50,000
2014
2015
2016
6 months ended 31 December 2016
$000s

Interim Dividend up 8.7%
4.4
4.6
5.0
02468
2014
2015
2016
Cents
Per Share
2014 and 2015 adjusted for 5:1 s
hare split in October 2016

Net Debt / Net Debt +Equity
25.7%
25.7%
30.7%
0%5%
10%15%20%25%30%35%40%45%50%
2014
2015
2016
6 months ended 31 December 2016

5:1 Share Split
Liquidity up 65% since share split

Cargo Throughput up 8.3%
10,037
10,150
10,991
0
2,0004,0006,0008,000
10,00012,000
2014
2015
2016
6 months ended 31 December 2016
000s
Tonnes

New Zealand’s Largest Port
0
2000400060008000
100001200014000160001800020000
Tauranga
Whangarei
Auckland
Lyttelton
New
Plymouth
Napier
Wellington
Bluff
Gisborne
Dunedin
Timaru
Nelson
Picton
Greymouth
NZ Various
Taharoa
Westport
Thousands of Tonnes
Import and Export Cargo by Port for
Year to 31 December 2016
Export
Import
Source: Statistics New

Container Throughput up 8.3%
426,512
470,928
510,074
100,000150,000200,000250,000300,000350,000400,000450,000500,000550,000
2014
2015
2016
6 months ended 31 December 2016
TEUs

Tranship Container Throughput up 1.9%
71,921
74,180
75,583
0
10,00020,00030,00040,00050,00060,00070,00080,00090,000
100,000
2014
2015
2016
6 months ended 31 December 2016
TEUs

NZ’s Largest Container Terminal
0
20,00040,00060,00080,000
100,000120,000140,000160,000180,000200,000
09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q
4
Container
 
Volume
 
All
 
Ports
 
Auckland
Lyttelton
Napier
Otago
Tauranga
Wellington

NZ’s Most Productive Container Terminal
64% higher productivity than average of Australian Ports
0
102030405060708090
100
09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q
4
NZ
 
Port
 
Ship
 
Rate
 
Auckland
Lyttelton
Napier
Otago
Tauranga
Wellington

World Class Productivity
ANL Barega
– 127 moves/hour Vessel Rate

Log Throughput up 20.8 %
6 months ended 31 December 2016
000s
JASM

Dairy Exports up 3.6%
842
1,083
1,122
0
100200300400500600700800900
1,0001,1001,200
2014
2015
2016
6 months ended 31 December 2016
000s
Tonnes

Fertiliser Imports up 9.9%
325
294
323
0
50
100150200250300350400
2014
2015
2016
6 months ended 31 December 2016
000s
Tonnes

Grain & Dairy Feed Supplements
Down 12.5%
704
616
539
0
100200300400500600700800
2014
2015
2016
6 months ended 31 December 2016
000s
Tonnes

Associates / Subsidiaries

Quality Marshalling
• NPAT $0.739M v $0.680M in prior corresponding period• Timaru Container Terminal operations going well• Rail siding volumes in Tauranga improved

Strong result due to increasedtrade volumes

PrimePort
• NPAT $0.876 million v $0.955 million in 2015• Strong log volumes• Implementing asset management programme

Timaru Container Terminal
• NPAT $0.196 million v $0.351 million in 2015 • 39,552 TEUs for six months to 31 December 2016• Expect 80,000 TEU for FY17• Rolleston volumes starting to increase

Coda
(Tapper Transport / Priority Logistics / MetroPack / MetroBox /
Dairy Transport Logistics)
Profit up 17.7% on pcp

Highlights

Log Volumes up 20.8% on pcp

Container Volumes up 8.3% on pcp
(on target to exceed one million TEUs in FY17)

MetroPort Auckland - 20% Growth

Dredging Completed to 14.5m
(ahead of time and under budget)

Aotea Maersk - 9,500 TEUs
LOA:
300m
Beam:
42.9m (17 containers)
Draught:
13.5m

New Oji Fibre Solutions Warehouse
(2.2 hectares)

Two New Cranes and
Thirteen New Straddles
will be delivered ahead of schedule in August
Two New Cranes and
Thirteen New Straddles

Royal Caribbean
Ovation of the Seas
Maiden call December 2016
348m LOA, 49m beam, 16 decks, 4,500 passengers, 1,300 crew

Outlook 2017

Log Exports by Quarter

Log Pricing
Average monthly prices recorded by AgriHQ hasshown the export market has performed much betterthan usual. The below graph illustrates the A-gradeexport log price over the past two years comparedwith the rolling five-year average. The average valueof $128/tonne for A-grade logs at wharfgate inFebruary 2017 was the highest since AgriHQ recordsfor that grade began in late 2008. The various K-grades haven’t been this high since the early-mid1990’s. At these price levels, there is still incentive forsuppliers to increase the volume of logs kept withinthe local market, underpinning export prices.

Forestry Market Outlook
Central North Island Wood Availability
MPI Wood availability report 2014 - assumed average harvest age
of 28 years

New Hamburg Sud Service (7,500 TEUs)
(additional 26 calls per annum (peak season) commences 14 March
2017)
LOA:
300m
Beam:
42.9m (17 containers)
Draught:
13.5m

New Seatrade Service
(additional 35 calls per annum commencing February 2017)

Tasman Star Service
(additional 104 calls per annum - commenced February 2017)

THANK YOU

---

u:\documents\word\forms\2017\prescribed disclosure under appendix 1 - feb 2017.docx

PORT OF TAURANGA LIMITED

Results for announcement to the market

Reporting Period 6 months to 31 December 2016
Previous Reporting
Period
6 months to 31 December 2015

Amount (000s) Percentage change
Revenue from ordinary
activities
NZ$125,328 +2.8%
Profit (loss) from ordinary
activities after tax
attributable to security
holder.
NZ$41,858 +8.5%
Net profit (loss)
attributable to security
holders.
NZ$41,858 +8.5%

Interim/Final Dividend Amount per security Imputed amount per
security
Interim NZ$0.05 $0.019444

Record Date 10 March 2017
Dividend Payment Date 24 March 2017

Comments:

---

23 February 2017
Port of Tauranga On Track for One Million Containers (TEUs)
1


FINANCIAL RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2016
Half year net profit rises to $41.9 million from $38.6 million as the country’s premier freight gateway
benefits from rising cargo volumes and continues to set standards for port productivity


Highlights:
 Revenue for the six months to 31 December 2016 rises 2.8% to $125.3 million and net profit rises
8.5% to $41.9 million
 Total trade increases 8% from 10.1 million tonnes to 11.0 million tonnes for the period
 Container volumes rise 8% to 510,074 TEUs, reinforcing Port of Tauranga’s position as New
Zealand’s largest container terminal
 On track to handle more than one million TEUs in the 2017 financial year - a first for a New Zealand
port
 Imports increase by 7% in volume while exports increased 21% as log volumes recover
 Interim dividend of 5 cents per share - up 8.7%
2
on the prior year’s figure

New Zealand’s largest freight gateway Port of Tauranga today announced it is on track to become the
first port in the country to transport more than one million containers across its wharves in a single year.

It also announced a strong 8.5% improvement in Group half year net profit to $41.9 million from $38.6
million in the same period a year ago, as half year trade volumes grew 8% to 11.0 million tonnes and the
Port continued to set new national standards for port productivity.

Half year Group revenue increased 2.8% to $125.3 million.

The Port of Tauranga Board has declared an interim dividend of five cents per share - up 8.7% on the
prior year’s interim dividend
1
. The record date is 10 March and the payment date is 24 March 2017.

Chairman David Pilkington said: “Our results show the Port of Tauranga is continuing to reinforce its
position as the country’s premier freight gateway. We have lifted revenue and earnings and moved record
cargo volumes including more than 510,000 TEU containers.

“Exporters, importers and the shipping lines are increasingly recognising the benefits of our deep water
port and our efficient freight handling and stevedoring operations.

“In the 2017 financial year, we expect to become the first New Zealand port to handle more than one
million containers in a 12 month period. This achievement is the direct result of our now-completed five-
year $350 million infrastructure investment programme, which has extended the Port’s freight hinter-

1
Twenty foot equivalent units
2
Adjusted for 5:1 share split on 17 October 2016

2



land across the country, prepared the port for large ships and provided importers and exporters with
highly-efficient routes to the country’s most important markets.

“Our world-class infrastructure will benefit the New Zealand economy for years to come,” Mr Pilkington
said.

Chief Executive Mark Cairns said: “We are consolidating our position as the port of choice for
international shipping lines, with ship visits in the six-month period rising 4% to 774 from 741 in the
same period last year.

“Following the completion of our harbour dredging programme in September 2016, Maersk introduced
a large vessel service, with Tauranga as its only New Zealand call. The 9,500 TEU Aotea Maersk has
been a regular visitor since October.

“Meanwhile, Hamburg Sud last month announced it will introduce in March a big ship, peak season
weekly service, with Tauranga as its only New Zealand call. The largest cruise ship ever to visit the Bay
of Plenty - the 4,700 passenger, 1,600 crew Ovation of the Seas - also made its maiden voyage to
Tauranga on Boxing Day and has made a couple of further calls since.

“It is pleasing to see shipping lines take advantage of the possibilities created by the harbour dredging
programme to bring in larger vessels. The economies of scale that come with larger ships drive transport
efficiencies and ensure New Zealand exporters retain direct routes to international markets.

“With bigger ships calling at Tauranga, we are handling significantly larger volumes of cargo per
shipment. We continue to lead the way in setting productivity standards for the New Zealand port
industry and we strive to look at all aspects of the container terminal operations to ensure that we remain
cost-effective.”

Ministry of Transport (MOT) figures from the fourth quarter of the 2016 calendar year show a crane rate
for the quarter of 35.9 container transfers per hour, compared with the weighted national average of
33.7 moves per hour.

“Our ship service rate was 89.8 container exchanges per hour per ship, compared with the national
weighted average of 76.9. Such strong results, which rank Port of Tauranga in the top tier of
Australasia’s most productive ports, are not only good for our shareholders, they are also in the best
interests of the New Zealand freight industry,” Mr Cairns said.

During the half year period, Port of Tauranga invested $43.9 million in new infrastructure to further
increase storage capacity and productivity. The investments included final payments on the two new
gantry cranes commissioned, thirteen new straddle carriers and several property developments at the
container terminal.

A new purpose-built shed is nearing completion and will be used by Oji Fibre Solutions (formerly Carter
Holt Harvey) as a distribution hub, clearing the way for Oji’s former facility to be demolished and new
container slots established to further enhance container terminal efficiency.

Traffic from our inland hubs continues to grow, with the numbers of containers transferred by rail
between Tauranga and our MetroPort facility in Auckland increasing 20% compared with the first half
of the previous financial year.

3



Cargo trends
Export volumes increased 9% to 7.1 million tonnes and import volumes increased 7% to 3.9 million
tonnes. Overall, trade increased 8% to 11 million tonnes. Containers handled increased 8% to 510,074
TEUs. Trans-shipped containers (containers transferred between vessels at Tauranga) increased 2%
to 75,583 TEUs.

Log exports rebounded from the previous corresponding period, increasing 21% in volume to nearly
three million tonnes. Other forest products had mixed results, with pulp volumes up slightly (3%) to
291,000 tonnes but paper products were down 8% to 273,000 tonnes.

Dairy product exports increased 4% to 1,088,000 tonnes. Kiwifruit volumes increased 16% to just over
477,000 tonnes, a trend which is expected to continue for the next few years as the industry recovers
from the PSA virus.

Other produce varied in volumes, with frozen meat exports decreasing by 25%, apples increased by
6%, and onions decreased by 23%. Oil imports increased 10% in volume.

Fertiliser imports increased 10% and there was steady growth in other import categories, such as dry
chemicals (up 13%), bulk liquids (up 13%), cement (up 5%) and salt (up 14%). Food supplement imports
for the dairy industry decreased 10%, and grain volumes fell close to 20%.

Subsidiary/Associate Companies

Subsidiary and Associate profits were up slightly on last year to $8.04 million. In particular, Northport,
and Coda had strong performances.

Outlook
Port of Tauranga is well positioned for the remainder of the financial year and beyond. The arrival of
the Hamburg Sud service in March should provide a further boost to container volumes and ensure the
Company reaches the milestone of handling more than one million TEUs annually by the end of the
financial year in June.

Given the strong first half result, we expect earnings for the 12 months to 30 June 2017 to be at the
upper end of our previous guidance of $79 million to $83 million, provided there are no significant
changes to market conditions.

For more information, please contact:
Mark Cairns, Chief Executive David Pilkington, Chairman
Mob: 021 978 887 Mob: 021 609 635

http://www.port-tauranga.co.nz/Media-Room

Port of Tauranga is New Zealand’s largest port by volume of cargo and New Zealand’s international freight
gateway. It operates wharves at Tauranga, Mount Maunganui and Timaru, as well as MetroPort Auckland, a
rail-linked inland port in South Auckland and MetroPort Christchurch, an intermodal freight hub in Rolleston.
The Port of Tauranga Group includes: Quality Marshalling (100% ownership), a container handling company;
Coda (50% ownership), a freight logistics group; Northport (50% ownership), which operates a deep water
commercial port in Whangarei; PrimePort Timaru (50% ownership), which operates the commercial port in
Timaru; Timaru Container Terminal (50.1% ownership), which leases and operates the container terminal at
Timaru and PortConnect (50% ownership), which was set up to operate an online cargo management system,
connecting ports to their logistics companies. For more information about Port of Tauranga please visit www.port-
tauranga.co.nz.