POT Hub Port Role Intensifies – Interim Results

23 February 2018

Port of Tauranga Hub Port Role Intensifies
FINANCIAL RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017

Port of Tauranga continues to grow as an international hub port, resulting in increased trade volumes
and profits for the first half of the 2018 financial year.

Highlights
• Revenue for the six months to 31 December 2017 increased 12.8% to $141.4 million and net
profit rose 12.6% to $47.1 million.
• Total trade increased from 11.0 million tonnes to 12.5 million tonnes for the period, a 13.4%
increase.
• Container volumes grew 15.8% to 590,803 TEUs (twenty foot equivalent units).
• Transhipped TEUs increased by 47.6% in number.
• Imports increased 20.7% from 3.9 million tonnes to 4.7 million tonnes.
• Exports grew 9.4% from 7.1 million tonnes to 7.7 million tonnes, with a large increase in log
exports (up 12.5%).
• Interim dividend of 5.7 cents per share, up 14% on the previous period’s dividend.

Port of Tauranga today announced a half year Net Profit After Tax of $47.1 million, a 12.6% increase
on the same period last year, following strong growth in most cargoes.

Half year trade volumes grew 13.4% to 12.5 million tonnes, contributing to a 12.8% increase in revenue
to $141.4 million for the six months ending December 2017.

Transhipment volumes, where containers are transferred from one service to another, was up 47.6%
on the same period last year when measured by TEUs (twenty foot equivalent units).

Port of Tauranga Chair, David Pilkington, said the impressive results demonstrated the continued
consolidation of a “hub and spoke” port network in New Zealand.

“Tauranga serves as a hub for New Zealand shippers looking to quickly and efficiently move cargo to
and from North Asia, and South America via big ship services,” said Mr Pilkington.

“Tauranga is the only New Zealand port able to accommodate the larger container ships on these
international services.”

Port of Tauranga Chief Executive, Mark Cairns, said the transhipment figures showed just how much
New Zealand shippers had come to utilise Tauranga as an international cargo hub.

Growth had accelerated following the September 2016 completion of a major dredging project that was
the culmination of a $350 million expansion programme.

“We are delighted by the amount of transhipment occuring from other New Zealand ports, with
transhipment volumes having more than trebled for the six month period - the largest increases
occurring from the South Island ports and Napier,” said Mr Cairns.

2



Bulk cargoes are also increasing in volume. Mr Cairns said export growth had been driven by logs,
which were in high demand by China and attracting record prices.

Imported cargoes grew significantly, with strong growth in oil products, and grain and feed supplements
for the dairy industry.

MetroPort Auckland handled 8.4% more TEUs over the six months, compared with the previous
corresponding period. The number of trains between MetroPort and the Tauranga Container Terminal
has been increased from 78 to 86 per week to handle the growing volumes.

“We have the capacity to increase train frequency in future as we still have plenty of headroom on the
route between Auckland, Hamilton and Tauranga. KiwiRail’s work to build passing loops in recent years
has future-proofed our rail capacity,” said Mr Cairns.

Mr Cairns said the Company was now looking to the next phase of growth and scoping the people,
plant and processes required to maximise productivity within the Port’s existing footprint. Of its 190
hectares of land, the Port has approximately 40 hectares of land still available for cargo growth.

“We can handle up to three million TEUs annually without any further reclamation, which has been been
confirmed in the recent Ernst Young Port Future Study
1
” said Mr Cairns.

“We consider all evidence points to the trend to larger vessels continuing and even accelerating. Port
of Tauranga is the only port in New Zealand able to accommodate the big ships and their cargoes.”

The Company has consistently delivered on a strategy of sustainable long term value creation for
shareholders. We recognise that long term value creation necessitates ongoing efforts to enhance our
environmental performance as stewards of our natural environment and also recognition of our societal
responsibility in how we manage the relationships that we have with our employees, our suppliers and
the impacts of our business on the broader community in which we operate.

Cargo Trends
Log exports are buoyant on the back of strong demand from China and record prices for top quality
logs. Volumes increased 12.5% to 3.3 million tonnes for the six month period.

Other forestry-related exports increased slightly, rising 2.6% to 1.1 million tonnes.

Dairy product exports increased 2.8%, while meat exports rose 17.3% in volume. Steel exports
increased 40.9%.

In imports, grain and feed supplements for the dairy industry increased 34.7%. Bulk fertiliser imports
grew 3.1% in volume.

Imports of oil products increased 13.5% for the six month period. There were also increases in dry
chemicals, bulk liquids and cement.

Cars and other imported vehicles are a growing category for Port of Tauranga, with volumes increasing
significantly as compared with the first half of the 2017 financial year.

The total number of containers handled increased 15.8% to 590,803 TEUs.

Ship visits increased to 890 - 15.0% more than the previous corresponding period.


1
Ernst Young (June 2016). “Consultant’s Report to the Port Future Study”.

3


Subsidiary / Associate Companies
PrimePort Timaru had a strong first half on the back of bulk cargo growth, seeing a 36.1% increase in
net profit.

Northport’s trade volumes continue to grow.

Recently acquired contracts in new cargoes are starting to bear fruit for Quality Marshalling, with
earnings up 28.3% on the previous corresponding period.

Coda Group’s profit declined compared with the previous corresponding period largely due to lower
income from reduced empty container handling.

Outlook
Port of Tauranga is on track to handle in excess of 1.2 million TEUs in the year ending 30 June 2018.

Given the strong trading conditions, Port of Tauranga is raising its earnings guidance to between $92
million and $96 million for the 12 months to June 2018. This compares with the Net Profit After Tax of
$83.4 million for the year ended 30 June 2017.




For further details, contact:
Mark Cairns
Chief Executive
Port of Tauranga Limited
Ph: 07 572 8829
http://www.port-tauranga.co.nz/category/current-news/

---

2017
Interim
Report
Strength
together

1
Interim Report
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries
We are pleased to report a strong start to the
2017-2018 financial year, with growth in most cargo
categories, increased revenue and increased profits.
The Port of Tauranga Group achieved a 12.6%
increase in Net Profit After Tax as trade volumes
increased 13.4% to 12.5 million tonnes.
FINANCIAL RESULTS
Group Net Profit After Tax was $47.1 million for
the six months to 31 December 2017, up from
$41.9 million for the previous corresponding period.
Revenue for the six months increased 12.8% to
$141.4 million, compared with $125.3 million for
the previous corresponding period.
The Port of Tauranga Board has declared a fully
imputed interim dividend of 5.7 cents per share,
a 14% increase on the dividend in the previous
corresponding period.
CARGO TRENDS
Container volumes grew 15.8% to 590,803 TEUs
(twenty foot equivalent units).
Transhipment container volumes increased
significantly, with the number of TEUs being
transferred between services increasing 47.6%
for the six month period.
Imports increased 20.7% from 3.9 million tonnes to
4.7 million tonnes, with strong growth in oil products
and grain and feed supplements.
Exports grew 9.4% from 7.1 million tonnes to 7.7
million tonnes, with a large increase in log exports
(up 12.5%). Dairy product exports increased 2.8%.
Cars and other imported vehicles are a growing
category for Port of Tauranga, with a significant
increase in volumes as compared with the first half
of the 2017 financial year.
Ship visits increased to 890, 15.0% more than the
previous corresponding period.
OPERATIONAL DEVELOPMENTS
The results show Port of Tauranga’s increasing role
as New Zealand’s international hub port. As the only
port in the region able to accommodate the larger
container ships, Port of Tauranga saw transhipment
to and from other New Zealand ports more than
trebling from the previous corresponding period,
with the largest increases occurring from the South
Island ports and Napier.
Port of Tauranga’s hub status and cargo growth has
accelerated following the September 2016 completion
of a major dredging programme that was the
culmination of a $350 million expansion programme.
The Company is now looking to the next phase
of growth and scoping the people, plant and
processes required to maximise productivity within
the Port’s existing footprint. Of its 190 hectares of
land, the Port has approximately 40 hectares still
available for cargo growth.
Port of Tauranga can handle up to three million
TEUs annually without further reclamation, which
has been confirmed in the recent Ernst Young Port
Future Study
1
.
The number of trains between MetroPort Auckland
and Tauranga have increased from 78 to 86 per
week to handle the growing volumes, with further
capacity available as required. MetroPort Auckland
handled a further 8.4% growth in the first six
months of the financial year.
The Company has consistently delivered on a
strategy of sustainable long term value creation for
shareholders. We recognise that long term value
creation necessitates ongoing efforts to enhance
our environmental performance as stewards of
our natural environment and also recognition of
our societal responsibility in how we manage the
relationships that we have with our employees, our
suppliers, and the impacts of our business on the
broader community in which we operate.
SUBSIDIARY/ASSOCIATE COMPANIES
PrimePort Timaru had a strong first half on the back
of bulk cargo growth, seeing a 36.1% increase in
net profits.
Northport’s trade volumes continue to grow.
Recently acquired contracts in new cargoes
are starting to bear fruit for Quality Marshalling,
with earnings up 28.3% on the previous
corresponding period.
Coda Group’s profit declined compared with the
previous corresponding period largely due to lower
income from reduced empty container handling.
OUTLOOK
Port of Tauranga is on track to handle in excess of
1.2 million TEUs in the year ending 30 June 2018.
Given the strong first half trading conditions,
Port of Tauranga is increasing its earnings guidance
to between $92 million and $96 million for the
12 months to June 2018. This compares with the
Net Profit After Tax of $83.4 million for the year
ended 30 June 2017.
1
Ernst Young (June 2016) “Consultant’s Report to the Port
Future Study”
Mark Cairns
CHIEF EXECUTIVE
David Pilkington
CHAIR
Port of Tauranga, the harbour and its people
are bound together in work, play and life.
Our myriad connections have driven the
success of the Bay of Plenty and the benefits
are felt well beyond our region. Our combined
strength will propel the community and the
Company into an exciting future.

These statements are to be read in conjunction with the notes on pages 8 to 15.These statements are to be read in conjunction with the notes on pages 8 to 15.
23
(Unaudited)
Six Months
Ended
31 December
2017
Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2016
Group
NZ$000
(Audited)
Year
Ended
30 June
2017
Group
NZ$000
Total operating revenue141,431
125,328255,882
Contracted services for port operations
(28,170)
(26,544)(54,985)
Employee benefit expenses
(18,596)
(16,069)(33,958)
Direct fuel and power expenses
(4,251)
(3,306)(7,175)
Maintenance of property, plant and equipment
(5,526)
(4,423)(8,759)
Other expenses
(7,767)
(6,759)(12,615)
Operating expenses(64,310)
(57,101)(117,492)
Results from operating activities77,121
68,227138,390
Depreciation and amortisation
(12,940)
(12,140)(24,460)
Reversal of previous revaluation deficit
0
0193
(12,940)
(12,140)(24,267)
Operating profit before finance costs and taxation64,181
56,087114,123
Finance income
194
229434
Finance expenses (refer note 6)
(9,330)
(8,362)(17,205)
Net finance costs(9,136)
(8,133)(16,771)
Share of profit from Equity Accounted Investees
7,908
7,89413,995
Profit before income tax62,953
55,848111,347
Income tax expense
(15,840)
(13,990)(27,906)
Profit for the period 47,113
41,85883,441
Attributable to:
Owners of the Parent Company
47,113
41,85883,441
Profit for the period47,113
41,85883,441
Basic earnings per share (cents)
7.0
6.212.4
Diluted earnings per share (cents)
6.9
6.212.3
Consolidated Income Statement
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries
(Unaudited)
Six Months
Ended
31 December
2017
Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2016
Group
NZ$000
(Audited)
Year
Ended
30 June
2017
Group
NZ$000
Profit for the period47,113
41,85883,441
Other comprehensive income
Items that are or may be reclassified to
profit or loss:
Cash flow hedge – changes in fair value
(1,638)
4,7612,956
Cash flow hedge – reclassified to profit or loss
1,079
1,1422,538
Changes in cash flow hedges transferred to
property, plant and equipment, net of tax
0
708708
Share of net change in cash flow hedge reserves
of Equity Accounted Investees
(46)
243182
(605)
6,8546,384
Items that will never be reclassified to profit
or loss:
Asset revaluation, net of tax
0
063,267
Share of net change in revaluation reserves of
Equity Accounted Investees
551
621621
551
62163,888
Total other comprehensive income(54)
7,47570,272
Total comprehensive income47,059
49,333153,713
Attributable to:
Owners of the Parent Company
47,059
49,333153,713
Total comprehensive income
47,059
49,333153,713
Consolidated Statement of Comprehensive Income
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries

These statements are to be read in conjunction with the notes on pages 8 to 15.These statements are to be read in conjunction with the notes on pages 8 to 15.
45
Share
Capital
Group
NZ$000
Share
Based
Payment
Reserve
Group
NZ$000
Hedging
Reserve
Group
NZ$000
Revaluation
Reserve
Group
NZ$000
Retained
Earnings
Group
NZ$000
Total
Group
NZ$000
Balance at 30 June 201668,2622,443(14,373)665,640163,712885,684
Profit for the period
000041,85841,858
Total other comprehensive income
006,85462107,475
Total comprehensive income
006,85462141,85849,333
Increase in share capital
12000012
Dividends paid during the period
(refer note 7)
0000(74,864)(74,864)
Equity settled share based payment
0937000937
Total transactions with owners in
their capacity as owners
1293700(74,864)(73,915)
Balance at 31 December 2016
68,2743,380(7,519)666,261130,706861,102
Profit for the period
000041,58341,583
Total other comprehensive income
00(470)63,267062,797
Total comprehensive income
00(470)63,26741,583104,380
Increase in share capital
200002
Dividends paid during the period
0000(34,029)(34,029)
Equity settled share based payment
0488000488
Revaluation surplus transferred to
retained earnings on asset disposal
000(463)4630
Total transactions with owners in
their capacity as owners
24880(463)(33,566)(33,539)
Balance at 30 June 2017
68,2763,868(7,989)729,065138,723931,943
Profit for the period
000047,11347,113
Total other comprehensive income
00(605)5510(54)
Total comprehensive income
00(605)55147,11347,059
Increase in share capital
1470000147
Shares, previously subject to a call
option, issued
3,938(3,938)0000
Dividends paid during the period
(refer note 7)
0000(76,225)(76,225)
Equity settled share based payment
0700000700
Total transactions with owners in
their capacity as owners
4,085(3,238)00(76,225)(75,378)
Balance at 31 December 2017
72,361630(8,594)729,616109,611903,624
Consolidated Statement of Changes in Equity
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries
(Unaudited)
31 December
2017
Group
NZ$000
(Unaudited)
31 December
2016
Group
NZ$000
(Audited)
30 June
2017
Group
NZ$000
Assets
Property, plant and equipment (refer note 8)
1,224,492
1,158,3801,227,223
Intangible assets
17,773
18,16418,019
Investments in Equity Accounted Investees
130,213
125,542127,583
Receivables
30
4636
Total non current assets1,372,508
1,302,1321,372,861
Cash and cash equivalents
10,657
8,6995,184
Receivables and prepayments
47,428
45,56444,513
Inventories
355
5842
Total current assets58,440
54,32149,739
Total assets1,430,948
1,356,4531,422,600
Equity
Share capital
72,361
68,27468,276
Share based payment reserve
630
3,3803,868
Hedging reserve
(8,594)
(7,519)(7,989)
Revaluation reserve
729,616
666,261729,065
Retained earnings
109,611
130,706138,723
Total equity attributable to owners
of the Parent Company
903,624
861,102931,943
Total equity903,624
861,102931,943
Liabilities
Loans and borrowings (refer to note 9)
125,000
145,276125,223
Derivative financial instruments
10,488
8,9558,887
Provisions
2,165
1,7181,888
Deferred tax liabilities
55,108
57,26856,426
Total non current liabilities192,761
213,217192,424
Loans and borrowings (refer note 9)
295,285
245,000255,140
Derivative financial instruments
227
3811,013
Trade and other payables
30,902
31,76731,027
Revenue received in advance
244
0316
Provisions
2,197
1,2502,334
Provision for tax
5,708
3,7368,403
Total current liabilities334,563
282,134298,233
Total liabilities527,324
495,351490,657
Total equity and liabilities1,430,948
1,356,4531,422,600
Net tangible assets per share (dollars per share)1.32
1.241.36
Consolidated Statement of Financial Position
As at 31 December 2017 : Port of Tauranga Limited and Subsidiaries

These statements are to be read in conjunction with the notes on pages 8 to 15.These statements are to be read in conjunction with the notes on pages 8 to 15.
67
(Unaudited)
Six Months
Ended
31 December
2017
Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2016
Group
NZ$000
(Audited)
Year
Ended
30 June
2017
Group
NZ$000
Cash flows from operating activities
Receipts from customers
142,964
124,315262,215
Interest received
192
191368
Payments to suppliers and employees
(68,980)
(53,676)(117,640)
Taxes paid
(19,636)
(19,512)(29,444)
Interest paid
(8,907)
(8,222)(17,314)
Net cash inflow from operating activities45,633
43,09698,185
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
0
144146
Finance lease payments received, including interest
7
713
Repayment of advances from Equity Accounted
Investees
0
0250
Dividends from Equity Accounted Investees
5,783
6,50710,507
Purchase of property, plant and equipment
(9,625)
(46,436)(65,269)
Purchase of computer software assets
0
(315)(116)
Interest capitalised on property, plant and equipment
(186)
(949)(1,225)
Total net cash used in investing activities(4,021)
(41,042)(55,694)
Cash flows from financing activities
Proceeds from borrowings
40,086
70,11260,189
Payments to close out of foreign exchange derivatives
0
(183)(183)
Dividends paid
(76,225)
(74,864)(108,893)
Net cash used in financing activities(36,139)
(4,935)(48,887)
Net increase/(decrease) in cash held5,473
(2,881)(6,396)
Add opening cash brought forward
5,184
11,58011,580
Ending cash carried forward10,657
8,6995,184
Consolidated Statement of Cash Flows
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries
Consolidated Statement of Cash Flows (continued)
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries
(Unaudited)
Six Months
Ended
31 December
2017
Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2016
Group
NZ$000
(Audited)
Year
Ended
30 June
2017
Group
NZ$000
RECONCILIATION OF PROFIT FOR THE PERIOD
TO CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period47,113
41,85883,441
Adjustments for non cash and non operating items
Depreciation and amortisation expense
12,940
12,14024,460
Decrease in deferred taxation expense
(870)
(711)(1,394)
Share of surpluses retained by Equity Accounted
Investees
(7,908)
(7,894)(13,995)
Other
737
1,2621,848
4,899
4,79710,919
(Less)/add movements in working capital
(6,379)
(3,559)3,825
Net cash flows from operating activities45,633
43,09698,185

89
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 2017.
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 2017.
The following new standard is not yet effective in preparing these financial statements:
• NZ IFRS 9 Financial Instruments
This standard becomes mandatory for the Group’s 2019 consolidated financial statements.
The main changes under NZ IFRS 9 are:
• new financial assets classification requirements for determining whether an asset is
measured at fair value or amortised cost;
• a new impairment model for financial assets based on expected losses, which may
result in the earlier recognition of impairment losses; and
• revised hedge accounting requirements to better reflect the management of risks.
The Parent Company is currently in the process of evaluating the potential effect of the
adoption of NZ IFRS 9, however it is expected that the impact will not be material.
• NZ IFRS 16 Leases
This standard becomes mandatory for the Group’s 2020 consolidated financial statements.
NZ IFRS 16 requires a lessee to recognise a lease liability reflecting future lease payments
and a “right-of-use asset” for virtually all lease contracts. Included is an optional exemption
for certain short-term leases and leases of low value assets, however this exemption can
only be applied by lessees. The Parent Company is currently in the process of evaluating the
potential effect of the adoption of NZ IFRS 16, however it is expected that the impact will not
be material.
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries
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 2017.
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: This 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: This consists of managing and maintaining the Port of Tauranga Limited’s
property assets.
• Marshalling Services: This 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”.
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries

1011
5 SEGMENT INFORMATION (CONTINUED)
Six Months Ended
31 December 2017
Port
Operations
Group
NZ$000
Property
Services
Group
NZ$000
Marshalling
Services
Group
NZ$000
Unallocated
(1)
Group
NZ$000
Inter
Segment
Group
NZ$000
Group
NZ$000
Revenue (external)125,47413,3122,64500141,431
Inter segment revenue8244,3060(4,338)0
Total segment
revenue
125,48213,3366,9510(4,338)141,431
Other income
and expenditure:
Share of profit
from Equity
Accounted
Investees
0007,90807,908
Interest income0001940194
Interest expense000(9,292)0(9,292)
Depreciation
and amortisation
expense
00(408)(12,532)0(12,940)
Other unallocated
expenditure
00(5,226)(63,460)4,338(64,348)
Income tax
expense
00(369)(15,471)0(15,840)
Total other income
and expenditure
00(6,003)(92,653)4,338(94,318)
Total segment result125,48213,336948(92,653)047,113
(1)
Operating costs are not allocated to individual business segments within the Parent Company.
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries
5 SEGMENT INFORMATION (CONTINUED)
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
Inter
Segment
Group
NZ$000
Group
NZ$000
Revenue (external)110,60212,3902,33600125,328
Inter segment revenue7102,1940(2,211)0
Total segment
revenue
110,60912,4004,5300(2,211)125,328
Other income
and expenditure:
Share of profit
from Equity
Accounted
Investees
0007,89407,894
Interest income0012280229
Other income000000
Interest expense000(8,360)0(8,360)
Depreciation
and amortisation
expense
00(378)(11,762)0(12,140)
Other unallocated
expenditure
00(3,125)(56,189)2,211(57,103)
Income tax
expense
00(289)(13,701)0(13,990)
Total other income
and expenditure
00(3,791)(81,890)2,211(83,470)
Total segment result110,60912,400739(81,890)041,858
(1)
Operating costs are not allocated to individual business segments within the Parent Company.
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries

1213
6 FINANCE EXPENSES
Six Months
Ended
31 December
2017
Group
NZ$000
Six Months
Ended
31 December
2016
Group
NZ$000
Interest expense on borrowings
9,478
9,309
Less:
Interest capitalised to property, plant and equipment
(186)
(949)
9,292
8,360
Ineffective portion of changes in fair value of cash flow hedges
15
2
Amortisation of interest rate collar premium
23
0
Total finance expenses9,330
8,362
7 DIVIDENDS
The following dividends were paid by the Group:
Six Months
Ended
31 December
2017
Group
NZ$000
Six Months
Ended
31 December
2016
Group
NZ$000
Final dividend of 6.2 cents per share
(2016: 6.0 cents per share)
42,196
40,835
Special dividend of 5.0 cents per share
(2016: 5.0 cents per share)
34,029
34,029
Total dividends paid
76,225
74,864
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries
8 PROPERTY, PLANT AND EQUIPMENT
Acquisitions and Disposals
During the six months ended 31 December 2017, the Group acquired assets with a cost of
$9.740 million (six months ended 31 December 2016: $44.021 million).
9 LOANS AND BORROWINGS
31 December
2017
Carrying Value
Group
NZ$000
31 December
2016
Carrying Value
Group
NZ$000
Commercial papers
245,000
245,000
Standby revolving cash advance facility
50,000
20,000
Fixed rate bonds
125,000
125,000
Advances from employees
285
276
Total loans and borrowings420,285
390,276
Current
295,285
245,000
Non current
125,000
145,276
Total loans and borrowings420,285
390,276
Commercial Papers
At 31 December 2017 the Group had $245 million of commercial paper debt that is classified within
current liabilities (2016: $245 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 $380 million (2016: $330 million) standby revolving cash advance facility of
which $280 million (2016: $330 million) is a term facility.
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries

1415
10 RELATED PARTY TRANSACTIONS AND BALANCES
Related party transactions and balances with related parties:
Six Months
Ended
31 December
2017
NZ$000
Six Months
Ended
31 December
2016
NZ$000
Transactions with Equity Accounted Investees
Services provided to Port of Tauranga Limited
240
239
Services provided by Port of Tauranga Limited
1,551
1,339
Accounts receivable by Port of Tauranga Limited
174
282
Accounts payable by Port of Tauranga Limited
0
67
Advances by Port of Tauranga Limited
6,669
6,919
Services provided by Quality Marshalling Limited
2,191
1,863
Accounts receivable by Quality Marshalling Limited
456
459
During the six months ended 31 December 2017, 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.
Controlling Entity
Quayside Securities Limited owns 54.14% (as at 31 December 2016: 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 $10,048 (six months ended 31 December 2016: $11,852).
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
2017
Group
NZ$000
Six Months
Ended
31 December
2016
Group
NZ$000
Directors
Directors’ fees
353
330
Executive Officers
Executive salaries and short term employee benefits
2,120*
1,654
Long term incentives
313
137
*Includes back dated holiday pay.
11 COMMITMENTS
Six Months
Ended
31 December
2017
Group
NZ$000
Six Months
Ended
31 December
2016
Group
NZ$000
Capital commitments
Estimated capital commitments for the Group contracted for
at the reporting date but not provided for
0
9,127
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
Refinancing of Standby Revolving Cash Advance Facility
On 1 January 2018, the Parent Company partially refinanced its $380 million financing arrangement
with ANZ Bank New Zealand Limited, Bank of New Zealand Limited, Commonwealth Bank of
Australia New Zealand branch and The Bank of Tokyo-Mitsubishi UFJ Limited, Auckland branch.
The Parent Company decreased the size of its tranche 1 facility, which was maturing on 31 March
2018, from $100 million to $50 million and extended the maturity date of this tranche to 30 June
2019. The Parent Company also added a new $50 million tranche to the Standby Revolving Cash
Advance Facility, tranche 6, maturing 30 June 2019.
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2017 : Port of Tauranga Limited and Subsidiaries

16
Independent Review Report
To the shareholders of Port of Tauranga Limited
REPORT ON THE INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
CONCLUSION
Based on our review, nothing has come to our
attention that causes us to believe that the interim
consolidated financial statements on pages 2 to 15
do not:
i. Present, in all material respects the Group’s
financial position as at 31 December 2017 and its
financial performance and cash flows for the six
month period ended on that date in compliance
with NZ IAS 34 Interim Financial Reporting.
We have completed a review of the accompanying
interim consolidated financial statements which
comprise:
— The consolidated statement of financial position
as at 31 December 2017;
— The consolidated statements of income,
comprehensive income, changes in equity
and cash flows for the six month period then
ended; and
— Notes, including a summary of significant
accounting policies and other explanatory
information.
BASIS FOR CONCLUSION
A review of interim consolidated financial
statements in accordance with NZ SRE 2410
Review of Financial Statements Performed by
the Independent Auditor of the Entity (“NZ SRE
2410”) is a limited assurance engagement. The
auditor performs procedures, consisting of making
enquiries, primarily of persons responsible for
financial and accounting matters, and applying
analytical and other review procedures.
As the auditor of Port of Tauranga Limited, NZ
SRE 2410 requires that we comply with the ethical
requirements relevant to the audit of the annual
financial statements.
Our firm also provided an agreed upon procedures
engagement to the Group in relation to a review of
the application of the Holiday Pay Act 2003. Subject
to certain restrictions, partners and employees of
our firm may also deal with the Group on normal
terms within the ordinary course of trading activities
of the business of the Group. These matters have
not impaired our independence as reviewer of the
Group. The firm has no other relationship with,
or interest in, the Group.
USE OF THIS INDEPENDENT REVIEW REPORT
This report is made solely to the shareholders as a
body. Our review work has been undertaken so that
we might state to the shareholders those matters
we are required to state to them in the Independent
Review Report and for no other purpose. To the
fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the
shareholders as a body for our review work, this
report, or any of the opinions we have formed.
RESPONSIBILITIES OF THE DIRECTORS FOR
THE INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
The Directors, on behalf of the Group, are
responsible for:
— The preparation and fair presentation of
the interim consolidated financial statements
in accordance with NZ IAS 34 Interim
Financial Reporting;
— Implementing necessary internal control
to enable the preparation of an interim
consolidated financial statements that is free
from material misstatement, whether due to
fraud or error; and
— Assessing the ability to continue as a going
concern. This includes disclosing, as applicable,
matters related to going concern and using the
going concern basis of accounting unless they
either intend to liquidate or to cease operations,
or have no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE
REVIEW OF THE INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
Our responsibility is to express a conclusion on the
interim financial statements based on our review.
We conducted our review in accordance with NZ SRE
2410. NZ SRE 2410 requires us to conclude whether
anything has come to our attention that causes us to
believe that the interim financial statements are not
prepared, in all material respects, in accordance with
NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially
less than those performed in an audit conducted
in accordance with International Standards on
Auditing (New Zealand). Accordingly we do
not express an audit opinion on these interim
consolidated financial statements.
This description forms part of our Independent
Review Report.
Glenn Keaney
KPMG
On behalf of the Auditor-General
Tauranga, New Zealand
22 February 2018
DIRECTORS
D A Pilkington, Chair
A W Baylis (retired 19 December 2017)
K R Ellis
J C Hoare
A R Lawrence
D W Leeder
R A McLeod (appointed 31 October 2017)
M J Smith (retired 31 October 2017)
EXECUTIVE
M C Cairns, Chief Executive
S G Gray, Chief Financial Officer
D A Kneebone, Property & Infrastructure Manager
S M Lunam, Corporate Services Manager
L E Sampson, Commercial Manager
REGISTERED OFFICE
Salisbury Avenue
Mount Maunganui
Private Bag 12504
Tauranga Mail Centre
Tauranga 3143
New Zealand
Telephone 07 572 8899
Facsimile 07 572 8800
Email marketing@port-tauranga.co.nz
Website www.port-tauranga.co.nz
SHARE REGISTRY
For enquiries about share transactions, change of address
or dividend payments, contact:
Link Market Services Limited
PO Box 91976
Victoria Street West
Auckland 1142
New Zealand
Telephone 09 375 5998
Facsimile 09 375 5990
Email enquiries@linkmarketservices.co.nz
Website www.linkmarketservices.co.nz
Copies of the Annual and Interim Reports are available from our website.
Company Directory
Port of Tauranga Limited

NEW ZEALAND’S
www.port-tauranga.co.nz

---

u:\documents\word\forms\2018\prescribed disclosure under appendix 1 - feb 2018.docx

PORT OF TAURANGA LIMITED

Results for announcement to the market

Reporting Period 6 months to 31 December 2017
Previous Reporting
Period
6 months to 31 December 2016

Amount (000s) Percentage change
Revenue from ordinary
activities
NZ$141,431 +12.8%
Profit (loss) from ordinary
activities after tax
attributable to security
holder.
NZ$47,113 +12.6%
Net profit (loss)
attributable to security
holders.
NZ$47,113 +12.6%

Interim/Final Dividend Amount per security Imputed amount per
security
Interim NZ$0.057 $0.0221667

Record Date 9 March 2018
Dividend Payment Date 23 March 2018

Comments:

---

EXCEL\APPENDIX 7\Appendix 7 - Feb 18
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
Notice of event affecting securities
07 572 889907 572 8800
DIRECTORS RESOLUTION
022018
ORDINARY SHARES
EMAIL: announce@nzx.com
S G GRAY
PORT OF TAURANGA LIMITED
22
$0.057
NZPOTE0001S4
$0.00395830.0221667
9 March 201823 March 2018
$
Date Payable
Enter N/A if not
applicable
23 March 2018
$0.010058
Retained earnings
$38,793,130.11
In dollars and cents
NZD

---

PRESENTATION TO ANALYSTS23 February 2018

Disclaimer
The information in this present
ation is for information purpose
s and
has been prepared by Port of Tauranga Limited with due care and

attention. However, neither the Company, nor any of its Directo
rs,
officers, employees, contractors or agents, shall have any liab
ility
whatsoever to any person, for
any loss of damage resulting from
the
use or reliance on this presentation.The information contained in t
his presentation is not intended
to be
relied upon as advice to investo
rs and does not take into accou
nt the
investment objectives, financial situation or needs of any part
icular
investor.Past performance is not indicati
ve of future performance and no

guarantee of future returns is implied or given.The information contained in thi
s presentation should be consid
ered
in conjunction with the Company’s latest audited financial stat
ements
which are available in the investor section of our website.

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%

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

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

Group Net Profit After Tax up 12.6%
$47,113
$38,508
$41,858
$0
$10,000$20,000$30,000$40,000$50,000
2015
2016
2017

Parent Net Profit After Tax up 14.4%
$33,818
$30,562
$38,693
$0
$10,000$20,000$30,000$40,000$50,000
2015
2016
2017

Interim Dividend up 14%
4.6
5.0
5.7
02468
2015
2016
2017

Net Debt / Net Debt +Equity
25.7%
30.7%
31.2%
0%5%
10%15%20%25%30%35%40%45%50%
2015
2016
2017
6 months ended 31 December 2016

Total Trade up 13.4%
10,150
10,991
12,467
0
2,0004,0006,0008,000
10,00012,00014,000
2015
2016
2017

Container Volumes up 15.8%
470,928
510,074
590,803
100,000150,000200,000250,000300,000350,000400,000450,000500,000550,000600,000650,000
2015
2016
2017

Transhipped TEUs up 47.6%
0
5,000
10,00015,00020,00025,00030,000
July
August
September
October
November
December
July 2016 to December 2017
FY2017
FY2018

Transhipped Containers by Region
0
5,000
10,00015,00020,00025,00030,00035,00040,00045,000
Australia Pac Is Nth Asia Sth Asia New
Zealand
USA East
Coast
USA West
Coast
South
America
UK
/Europe
TEUs
July - Dec 16
July - Dec 17

New Zealand Transhipment
Volumes more than trebling
0
1,0002,0003,0004,0005,0006,0007,0008,0009,000
10,000
Auckland Lyttelton Marsden
Point
Napier Nelson Port
Chalmers
Timaru Wellington
NZ Transhipped TEU
6 months to 31 December 2017
FY2017

Exports – Logs up 12.5%
2,415
2,918
3,282
0
500
1,0001,5002,0002,5003,0003,5004,000
2015
2016
2017

Exports – Dairy up 2.8%
1,083
1,122
1,153
0
100200300400500600700800900
1,0001,1001,200
2015
2016
2017

Imports – Fertiliser up 3.1%
294
323
333
0
50
100150200250300350400
2015
2016
2017

Imports – Grain & Dairy Feed
Supplements up 34.7%
616
539
726
0
100200300400500600700800
2015
2016
2017

New Kiwifruit Store

Subsidiaries & Associate Companies

Subsidiaries & Associates
Net Profit After Tax
$7,908
$7,894
$7,043
$0
$5,000
$10,000
2015
2016
2017
$000s

Northport
Continued trade growth
Released “Vision for Growth” discussion document
Container volumes increasing

Coda Group
Tapper Transport / Priority Logistics / MetroPack / MetroBox /
Dairy Transport Logistics
Profit down 23.5% after loss of l
arge customer at empty contain
er depot
Building 22,000m
2
warehouse at Rolleston for Westland Milk

PrimePort Timaru
Earnings up 36% on strong bulk trades
Development of new oil 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)

Quality Marshalling
NPAT up 28%
Secured Tauranga Terminal Workshop Contract – August 2017

Outlook 2018

Outlook 2018
• Expect to handle more than 1.2 million TEUs• Revised FY18 earnings guidance to between $92
million and $96 million

Log Exports

Record Log Prices

Q317 Record Volumes for POT

MetroPort Auckland
Volumes up 8.4%
Train programme increased from 78 to 86 trains per week
Headroom still available on Auckland-Hamilton-
Tauranga route

Cars

Parent Capital Expenditure 2015-2019
$54,327
$58,863
$65,269
$30,000
$50,000
$0
$20,000$40,000$60,000$80,000
2015
2016
2017
2018F 2019F

Royal Caribbean
Ovation of the Seas
(called 3 times )

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

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)

Investor Day
Looking to hold later this year

THANK YOU

---

u: \documents\word\pressreleases\nzx letter - interim result dec 2017.docx




23 February 2018



NZX
Wellington



Dear Sir/Madam

PORT OF TAURANGA LIMITED INTERIM RESULTS: 31 DECEMBER 2017

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

1 Press Release
2 Interim Report
3 NZX Appendix 1 – Prescribed Disclosure
4 NZX Appendix 7 – Half Year Dividend
5 Investor Presentation

Yours sincerely


Steve Gray
CHIEF FINANCIAL OFFICER