ASM Presentation and the Chairman’s and CEO’s Address

NZX Statement

Annual Shareholders’ Meeting Presentation and the Chairman’s and CEO’s Address
The New Zealand Refining Company Limited provides a copy of the Presentation, and the
Chairman’s and CEO’s Address to the Annual Shareholders’ Meeting, being held today at 2:00pm
at Eden Park, South Level 4 Lounge, Auckland.


D.M. Jensen
Chief Financial Officer / Company Secretary

23 April 2018

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ANNUAL
MEETING
23 APRIL 2018

ANNUAL MEETING
SIMON ALLEN
CHAIRMAN

AGENDA
CHAIRMAN’S ADDRESS
CEO’S ADDRESS
RESOLUTIONS
GENERAL BUSINESS
•Approval of auditor’s fees and expenses
•Re-election/ election of Directors
•Increase in the Director’s fee pool

•This presentation contains forward looking statements concerning the financial condition, results and operations of The New Zealand Refining Company Limited (hereafter referred
to as “Refining NZ”).
•Forward looking statements are subject to the risks and uncertainties associated with the refining environment, including price and foreign currency fluctuations, production results,
demand for Refining NZ’s products or services and other conditions. Forward looking statements are based on management’s currentexpectations and assumptions and involve
known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from thoseexpressed or implied in these statements.
•Forward looking statements include among other things, statements concerning the potential exposure of Refining NZ to market risk and statements expressing management’s
expectations, beliefs, estimates, forecasts, projections and assumptions. Forward looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”,
“could”, “estimate”, “expect”, “goals”, “intend”, “may”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “seek”, “should”, “target”, “will” and similar terms and phrases.
•Readers should not place undue reliance on forward looking statements. Forwardlooking statements should be read in conjunction with Refining NZ’s financial statements released
with this presentation. This presentation is for information purposes only and does not constitute legal, financial, tax, financial product advice or investment advice or a
recommendation to acquire Refining NZ’s securities, and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an
investment decision, you should consider the appropriateness of the information having regard to their own objectives, financialsituation and needs and consult an NZX Firm or
solicitor, accountant or other professional adviser if necessary.
•In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement. RefiningNZ does
not guarantee future performance and past performance information is for illustrative purposes only. To the maximum extent permittedby law, the directors of Refining NZ,
Refining NZ and any of its related bodies corporate and affiliates, and their offices, partners, employees, agents, associates and advisers do not make any representation or warranty,
express or implied, as to accuracy, reliability or completeness of the information in this presentation, or likelihood of fulfilment of any forward-looking statement or any event
or results expressed or implied in any forward-looking statement, and disclaim all responsibility and liability for these forward-looking statements (including, without limitation,
liability for negligence).
•Except as required by law or regulation (including the NZX Main Board Listing Rules), Refining NZ undertakes no obligation toprovide any additional or updated information
whether as a result of new information, future events or results or otherwise.
•Forward looking figures in this presentation are unaudited and may include non-GAAP financial measures and information. Not all of the financial information (including any
non-GAAP information) will have been prepared in accordance with, nor is it intended to comply with: (i) the financial or other reporting requirements of any regulatory body;
or (ii) the accounting principles generally accepted in New Zealand or any other jurisdiction with IFRS. Some figures may be rounded and so actual calculation of the figures may
differ from the figures in this presentation. Non-GAAP financial information does not have a standardised meaning prescribed by GAAP and therefore may not be comparable
to similar financial information presented by other entities. Non-GAAP financial information in this presentation is not audited or reviewed.
•Each forward looking statement speaks only as of the date of this announcement, 23 April 2018.
DISCLAIMER

ANNUAL MEETING
CHAIRMAN’S
ADDRESS
SIMON ALLEN

2017 A STRONG, BUT CHALLENGING YEAR
RAP LEAK
•No prosecution by NRC
•Remediation of leak site complete
HEALTH, SAFETY AND ENVIRONMENT
•Strong finish for personal safety
•Continuing with DuPont recommendations
•Safety case submitted
OPERATIONAL PERFORMANCE
•Outstanding plant reliability
•World-class unplanned downtime
•Good throughput despite RAP leak
BUSINESS ENVIRONMENT
•Historically high margins
•Strong free cash flow

SJOERD POST
CEO
ANNUAL MEETING

Revenue loss $8.3m, extra costs $6.0m,
insurance recovery $2.9m
Throughputs higher today than before
the incident
No prosecution -external expert studies concluded:
•Pipeline well run in lead-up to incident
•Incident due to external force
Resilience improvement:
•LIDAR trial
•33 kV at Wellsford pump station
•Feasibility study into improved truck loading
We expect a Q3 return to full pressure
post pig-run validation
Our systems, processes, and people were tested and proved resilient
PIPELINE INCIDENT

FY 16FY 17
Gross RefineryMargin (US$/barrel)6.478.01
Free cash flow (NZ$m)
[1]
47103
Net profit after tax–Group (NZ$m)4779
Personal
TRCF
[2]
0.510.89
LTIF
[2]
0.250.26
Process
Tier 1 (>US$25k)
[3]
10
Tier 2 (>US$2.5k)
[3]
04
Releases outside consent54
Throughput (million barrels)42.741.7
Operational availability96.9%98.0%
Brent price (US$/barrel)4454
Exchange rate (US$)0.700.71
[1] Free cash flow calculated as operatingcash flowminus actual capital expenditures
[2] Per 200,000 hours, rolling 12-month
[3] For a full definition please refer to Glossary in Appendix I See our Annual Report for further detail,
available at http://www.refiningnz.com/investor-centre.aspx
STRONG FINANCIAL PERFORMANCE
Despite tough operational and reputational challenges in the second half

* The Singapore Complex Margin is calculated using PlattsDubai crude and Singapore product prices, VLCC freight to
Singapore, and the International Energy Agency’s Dubai complex refinery yields adjusted for fuel & loss.
MARGINS CONTINUE AT TOP OF HISTORICAL AVERAGE
Growth strategy continues to pay off in a tough competitive environment
-4
-2
0
2
4
6
8
10
US$/BARREL
FreightProduct QualityPlant AvailabilityCrude Cost and Yield
REFINING NZ MARGIN
SINGAPORE COMPLEX MARGIN
*
8.01
4.27
3.73
6.47
3.22
3.25
UPLIFT 2017
VERSUS 2016
US$/BARREL
Freight0.37
Product quality
(0.11)
Plant availability0.52
Crude cost and yield0.27
1.05

Subsequent to balance date –Refining NZ’s business interruption claim has been accepted
See our Annual Report for further detail, available at http://www.refiningnz.com/investor-centre.aspx
EBITDA UP 32%
69.2
(6.8)
(1.6)
(8.3)
(6.0)
2.9
3.6
167.3
220.3
EXCHANGE
RATE
VOLUME
COST
SAVINGS
MARGIN
EBITDA
2016
EBITDA
2017
REVENUE
LOSS
REPAIR AND
REMEDIATION
COSTS
INSURANCE
RECOVERY
PIPELINE INCIDENT
(109.9)
(31.9)
78.5
DEPRECIATION
AND FINANCING
TAX
NPAT
2017
NZ$m

2017 GROWTH DELIVERY
33 US cents per barrel delivered*
Pipeline Stage II
Natural Gas
* Pending recertification of pipeline at 87 bar
JUNJULAUGSEPOCTNOVDEC
Post TeMahi HouOptimisation:
-Hydrogen recovery from BRU: compressor
-Hydrogen recovery from CCR: Advanced Process Control
Other short payback projects
Natural Gas
Pipeline capacity increase: Stages I and II
Jet fuel tank farm re-configuration
Sulphur solidification
Cumulative
6
2.5
15+
8.5 at full capacity
15+23+34+35+
1.51
GRM-ADD (US CENTS PER BARREL)

CLIMATE CHANGE
We are a player not a victim
$4.6 billion
60,000
=
TOYOTA COROLLA 2017 –2018
Small Car: Saloon
TESLA MODEL 3
TE MAHI HOU

ASIA NET CAPACITY ADDITIONS VS. OIL PRODUCT DEMAND GROWTH
STRONG MACRO CONTINUES
Capacity additions and retirements “locked in” to early 2020s with an IMO caveat
Net CDU capacity additions
Source: FACTS Global Energy (January 2018)
0
2017
200
400
600
800
1,000
1,200
2018201920202021202220232024
Refined products demand growth
(exc.Biofueland non-ref LPG)
kb/d

Capital spend NZ$85m
Hydrocracker shutdown 39 days
Financial impact NZ$30m
Intake 42.3mbbls
WE ARE WELL SET UP FOR THE 2018 SHUT
Simplified 2018 Shutdown plan for Analysts Pack
HCU+HVU2
BDU
SRU
CDU1+HVU1
CDU2
18191213141516171131123456789103019202122232425262728291878910111213141516176252627282930123452420212223
Total refineryshutdown
CRUDE DISTILLER
Mechanical/consequential shutdownShutting down/startup
HYDROCRACKER,
HIGH VACUUM
Hydrogen
Hydrogen
BUTANE DE-ASPHALTING
SULPHUR RECOVERY
CRUDE DISTILLER 1,
HIGH VACUUM
TRS
May-18Jun-18
8days
39days
14days
20-Apr-18

WE HAVE A STRONG GROWTH AGENDA
PIPELINE CAPACITY
Phase 3
2019
Further expansion*
* Subject to final Board approval
DREDGING
Resource consent hearing in
February 2018
Dredging 2019/ 2020 onwards*
SULPHUR FORMINGJET TANK FARM
RECONFIGURATION
SHORT PAYBACK PROJECTS
Hydrogen recovery
from BRU
Additional nitrogen storage
Tops to Benzene Removal Unit
VSD on C252
* Subject to final Board approval

2018 PROFIT AND BORROWINGS MATRIX
USD
Exchange Rate0.600.650.700.750.80
GRM
USD
217(5)(16)(25)
208228244259272
584126143
165182201218233
9475584330
128148165180195
131109897258
92114133150165
16814212110285
5580102121137
42 Production: (Barrels ('000's)
90 Non Processing Fee Revenue, $m
93 Depreciation, $m
8.00
9.00
5.00
6.00
7.00
USD EXCHANGE RATE
GRM
(USD)
42Production (‘000 barrels)
90Non Processing Fee Revenue ($m)
93Depreciation ($m)

ANNUAL MEETING
SIMON ALLEN
CHAIRMAN

RESOLUTIONS
ANNUAL MEETING

APPOINTMENT
OF AUDITOR
RESOLUTION

RESOLUTION 1
“That Directors be authorised to fix the fees and expenses of PricewaterhouseCoopers
as auditors to the Company for the financial year ending 31 December 2018.”
RESOLUTION 1
FORAGAINSTDISCRETIONARYTOTALABSTAIN
Proxies and
Postal votes
71,921,8471,104,392135,852,205208,878,444315,592

RE-ELECTION/
ELECTION
OF DIRECTORS
RESOLUTION

RESOLUTION 2(a)
“That Ms V C M Stoddart, who retires by rotation in accordance with clause 8.9
of the Constitution be re-elected as a Director of the Company.”
RESOLUTION 2(a)
FORAGAINSTDISCRETIONARYTOTALABSTAIN
Proxies and
Postal votes
71,792,9481,071,192135,969,452208,833,592360,444

RESOLUTION 2(b)
“That Mr M Tume, who retires by rotation in accordance with clause 8.9 of the
Constitution be re-elected as a Director of the Company.”
RESOLUTION 2(b)
FORAGAINSTDISCRETIONARYTOTALABSTAIN
Proxies and
Postal votes
70,879,9602,108,800135,858,690208,847,450346,586

RESOLUTION 2(c)
“That Ms D C Boffabe elected as a Director of the Company.”
RESOLUTION 2(c)
FORAGAINSTDISCRETIONARYTOTALABSTAIN
Proxies and
Postal votes
72,134,162816,504135,888,690208,839,356354,680

RESOLUTION 2(d)
“That Mr L Jones be elected as a Director of the Company.”
RESOLUTION 2(d)
FORAGAINSTDISCRETIONARYTOTALABSTAIN
Proxies and
Postal votes
72,152,567768,451135,923,452208,844,470349,566

INCREASE IN THE
DIRECTOR’S
FEE POOL
RESOLUTION

RESOLUTION 3
“That the total amount of Director’s fees payable annually to all Directors taken
together be increased with effect from the commencement of the current financial
year by $50,000 from $850,000 to $900,000, such sum to be divided among
the Directors as the Directors deem appropriate.”
RESOLUTION 3
FORAGAINSTDISCRETIONARYTOTALABSTAIN
Proxies and
Postal votes
69,235,8623,824,424135,761,151208,821,437372,599

GENERAL
BUSINESS

•This presentation contains forward looking statements concerning the financial condition, results and operations of The New Zealand Refining Company Limited (hereafter referred
to as “Refining NZ”).
•Forward looking statements are subject to the risks and uncertainties associated with the refining environment, including price and foreign currency fluctuations, production results,
demand for Refining NZ’s products or services and other conditions. Forward looking statements are based on management’s currentexpectations and assumptions and involve
known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from thoseexpressed or implied in these statements.
•Forward looking statements include among other things, statements concerning the potential exposure of Refining NZ to market risk and statements expressing management’s
expectations, beliefs, estimates, forecasts, projections and assumptions. Forward looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”,
“could”, “estimate”, “expect”, “goals”, “intend”, “may”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “seek”, “should”, “target”, “will” and similar terms and phrases.
•Readers should not place undue reliance on forward looking statements. Forwardlooking statements should be read in conjunction with Refining NZ’s financial statements released
with this presentation. This presentation is for information purposes only and does not constitute legal, financial, tax, financial product advice or investment advice or a
recommendation to acquire Refining NZ’s securities, and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an
investment decision, you should consider the appropriateness of the information having regard to their own objectives, financialsituation and needs and consult an NZX Firm or
solicitor, accountant or other professional adviser if necessary.
•In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement. RefiningNZ does
not guarantee future performance and past performance information is for illustrative purposes only. To the maximum extent permittedby law, the directors of Refining NZ,
Refining NZ and any of its related bodies corporate and affiliates, and their offices, partners, employees, agents, associates and advisers do not make any representation or warranty,
express or implied, as to accuracy, reliability or completeness of the information in this presentation, or likelihood of fulfilment of any forward-looking statement or any event
or results expressed or implied in any forward-looking statement, and disclaim all responsibility and liability for these forward-looking statements (including, without limitation,
liability for negligence).
•Except as required by law or regulation (including the NZX Main Board Listing Rules), Refining NZ undertakes no obligation toprovide any additional or updated information
whether as a result of new information, future events or results or otherwise.
•Forward looking figures in this presentation are unaudited and may include non-GAAP financial measures and information. Not all of the financial information (including any
non-GAAP information) will have been prepared in accordance with, nor is it intended to comply with: (i) the financial or other reporting requirements of any regulatory body;
or (ii) the accounting principles generally accepted in New Zealand or any other jurisdiction with IFRS. Some figures may be rounded and so actual calculation of the figures may
differ from the figures in this presentation. Non-GAAP financial information does not have a standardised meaning prescribed by GAAP and therefore may not be comparable
to similar financial information presented by other entities. Non-GAAP financial information in this presentation is not audited or reviewed.
•Each forward looking statement speaks only as of the date of this announcement, 23 April 2018.
DISCLAIMER

ANNUAL
MEETING
23 APRIL 2018

Glossary
•LTIF -Lost time injury frequency (rolling 12 month per 200,000 hours)
•TRCF -Total recordable case frequency (rolling 12 month per 200,000 hours)
•Tier 1 Process Safety Event (API 754) -A tier 1 Process Safety Event (PSE) is an unplanned or uncontrolled release of any material, including non-toxic and non-flammable, from a
process which results in one or more of the following: A LTI and/or fatality; A fire or explosion resulting in greater than or equal to $25,000 of direct cost to the company; A release of
material greater than the threshold quantities given in Table 1 of API 754 in any one-hour period; A officially declared community evacuation or community shelter-in-place.
•Tier 2 Process Safety Event (API 754) -A tier 2 Process Safety Event (PSE) is an unplanned or uncontrolled release of any material, including non-toxic and non-flammable, from a
process which results in one or more of the following: A recordable injury; A fire or explosion resulting in greater than or equal to $2,500 of direct cost to the company; A release of
material greater than the threshold quantities given in Table 2 of API 754 in any one-hour period.
APPENDIX I

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Annual Meeting of Shareholders - Chairman’s address

It is a pleasure to welcome you all to the Company’s Annual Meeting of shareholders.
2017 was a strong year for the refinery, both operationally and financially, despite the challenge of the leak
last September on the Refinery to Auckland fuel pipeline. The Company has welcomed the finding of the
Northland Regional Council that the refinery had no causative role in the rupture. After reviewing the external
expert reports and having witnessed first-hand our containment and recovery processes, the Council decided
not to prosecute and at the same time commended Refining NZ for its response.
2017 Performance
Our performance was marked by outstanding plant reliability, healthy refining margins, strong cash generation
from operations, and a culture of teamwork, all of which allowed the Company to post a Net Profit after Tax
(NPAT) of $78.5m (2016: $47m) for the year ended 31 December 2017.
In the circumstances this is a remarkable achievement that speak volumes for our talented team of over 500
staff and contractors.
Shareholder Day
At our Annual Meeting last year, the Board made a commitment to hold a Shareholder Day and on 25th
January 2018 we were delighted to welcome over 350 shareholders to Marsden Point. Those of our
shareholders who attended the event had the opportunity to meet some of the team first-hand; to hear about
the work they do and their priorities for the year, as well as their experience of the pipeline incident.
Shareholders left impressed with the dedication of our people and our workplace culture.
Performance Highlights
Sjoerd will go into more detail about the Company’s performance in his presentation. For now, there are a
number of highlights worth noting about our 2017 performance.
Refining margins remained in a range of USD 7 per barrel to USD 11 per barrel for much of the year, with the
Company GRM averaging USD 8.02 per barrel (2016: USD 6.47 per barrel) at the top of its historical range,
supported by global demand growth.
As one of the few high hazard industrial sites in the country we are highly conscious of our health and safety.
We hold ourselves accountable for the health and safety of every individual on our site and are always looking
to improve our performance. While our Health and Safety performance in 2017 was impacted by a small
number of injuries early in the year we finished strongly having gone the last three months of the year without
a recordable case.

In 2017 we continued with implementing the recommendations of the 2015 DuPont review of our safety
management systems. A subsequent DuPont review in 2017 found that the Company had made significant
progress, further strengthening our process safety culture across the refinery. We also recently submitted a
Safety Case to the regulator, WorkSafe, outlining the hazards associated with our refining operation and the
robust safety management systems we have in place to continue to run our refinery safely.
A good environmental performance in 2017 was marred only by the RAP leak, and as I have already noted the
Company’s response has been acknowledged by the Regional Council. Remediation at the leak site is now
complete and has been carried out to a very high standard.
An outstanding operational performance was underpinned by a world-class unplanned downtime of 0.60%
(2016: 0.85%). This allowed the Company to capitalise on healthy refining margins and to generate a
significant lift in operating revenue to $411.6m, up 16% on the previous year (2016: $353.6m). Our ability to
maintain borrowings within the target average gearing ratio of 20% prepares us well for the major planned
maintenance Shutdown in 2018.
Strategy
The Company maintains its aspiration to be the manufacturing and supply partner of choice for New Zealand.
To achieve that aspiration we are continuing to pursue a series of smaller growth initiatives that will both grow
revenue and contribute to the ongoing competitiveness of our Refinery.
We have also continued to invest in the Refinery to Auckland pipeline, increasing capacity by around 10% over
the last year.
Dividend policy
At the Board meeting in February the Directors approved a new dividend policy for the Company. Refining NZ’s
dividend policy is to pay 80% of Free Cash Flow (FCF) as ordinary dividends subject to the Board’s due
consideration of the Company’s medium-term asset investment programme, 20% targeted gearing level and
future circumstances including the profitability, growth opportunities, and the financial and taxation position
of Refining NZ. FCF is the Net Cash from Operating Activities less normalised stay-in-business capital.
Dividend payments are expected to be split into an interim dividend paid in September and a final dividend
paid in March. It is the intention of the Board to attach imputation credits to dividends to the extent that they
are available.
Shareholder Returns
The Company’s Directors resolved to pay a fully imputed final dividend of 12 cents per share which was paid
on 22 March 2018. With an interim dividend of six cents paid in September, the total dividend payment for
the year was 18 cents.

BP Shareholding
In March 2017 as part of a global portfolio review, BP sold shares in the Company amounting to 11.09% of
Refining NZ’s issued share capital. BP remains a significant shareholder with an equity stake of 10.1%, while
the processing arrangements with BP remain in place.
Board and Management changes
In June 2017, Matthew Elliott resigned as a Director and was replaced by Deborah Boffa. As Deborah is
nominated for election at this meeting a short biography is included in the Notice of Meeting. In March 2018,
Mike Bennetts resigned and was replaced by Lindis Jones. A short biography of Lindis is included in the Notice
of Meeting. Thank you to Matthew and Mike for their respective contributions to the Refining NZ Board.
At the Board meeting in February, Sjoerd Post advised the Directors of his decision to resign from his role as
CEO and his intention to remain in the role until the end of July 2018. The Board appreciates the leadership
provided by Sjoerd and the outstanding contribution over the length of his tenure, building a culture that is
now strongly evident in the performance and resilience of the business. His leadership during the rupture on
the Refinery to Auckland fuel pipeline has been widely recognised as a crucial factor in the rapid resolution of
that crisis.
The Board is pleased that Sjoerd will remain in the business for the next few months to see through the
succession process and critical work programmes, including the 2018 planned maintenance shutdown and the
government inquiry into the pipeline incident.
Future Outlook
The Company has achieved a strong result through continued operational reliability, ability to capitalise on
healthy margins, quality fuel production and a well-developed culture of team work amongst our staff and
contractors, all under trying circumstances. Continuing to play to these core strengths sets us up for a
successful 2018 shutdown. At the same time, pursuing a series of attractive growth initiatives will ensure we
keep pace with the demand for quality fuel products driven by Auckland growth and will underpin the
competitiveness of our refinery and the ongoing sustainability of our refining business.



Simon Allen
Chairman

---

CEO’s Address 23 April 2018

 Thank you Simon, it's a real pleasure for me to present our 2017 results.
Before I start I would like to express a word of thanks to the general public for their understanding and
the support that we received during the pipeline crisis.
We are proud of how we carried out the pipeline repair and how we kept within estimates of how long
such a disruption would take, as outlined in prior resilience studies carried out by MBIE, amongst
others.
At the same time I would like to say again that we are fully appreciative of the effects of such disruption
to our customers and the travelling public –whether it be business travel, special holidays or
honeymoons - and we will certainly continue to play our part in helping to provide a resilient supply
chain to New Zealand.
 If we turn to the pipeline incident, its net impact was NZ$8.2 mln NPAT- including recovery from
environmental insurance.
Remediation is complete and we are pursuing a number of resilience improvement initiatives. As Simon
indicated, regional council has decided not to prosecute us with external expert studies concluding this
was an incident due to external force and the pipeline was well run in the lead-up to the incident.
With stage 2 of the pipeline growth project completed, we are now, despite still running at lower
pressure, putting more barrels through than before the incident.
 Turning then to our overall performance. Our GRM improved by US$1.54/bbl with US$.48/bbl as a
result of improved refining conditions in Singapore. Our uplift over that margin improved by $1.05/bbl -
a strong endorsement of our growth strategies including the building of TMH.
You see that 1.50 times 40+ million barrels of 60+ extra gross margin go straight to our free cash flow:
proof that we are a cash engine with little incremental cost incurred to earn that margin.
We had a difficult start to the year with our personal safety performance but had a much better second
half that has carried on into the current year - very much best in class in New Zealand but with scope for
improvement if we benchmark ourselves internationally.
I am pleased to say that we didn't have a major incident but we had a number of minor process safety
incidents, a reminder that we need to continue to work this space.

A final word on our environmental performance. After a number of years of investment, I am pleased to
say that after some heavy rainfalls over the past months we no longer rely on our second or third
barrier of containment of oil waste but capture it at source.
 Turning to the unit gross margin, I will not go into the detail of this slide, suffice it to say that with our
recent growth initiatives including TMH we are now consistently earning 1-2 $’s above our historic
average margin.
 As a consequence our EBBITDA walk is dominated by the gross margin contribution as you would expect
and we would highlight the strong cost performance as well with 3.6 $ million spent less in 2017 than
the prior year, mainly as a result of good electricity hedging.

 We delivered well on our growth agenda in 2017 with a US$.33/bbl improvement, mainly driven by
usage of extra natural gas with the installation of an extra pump at Wellsford by Vector. This effectively
doubled our natural gas use allowing us to use less of our own product. I already mentioned the extra
pump at Kumeu on the RAP as another highlight.
 Looking forward, firstly a reminder that we see ourselves as part of the solution on a pathway to 2050
carbon neutrality for the country. The TMH project was for example in terms of NZR reduction in CO2
emissions equivalent to taking 60,000 Corollas off the road or the NZ public buying $4.8 billion worth of
Tesla’s model 3.

 Demand for petroleum products in Asia Pacific is expected to continue to outpace capacity growth and
we are therefore cautiously optimistic about margins. It is unknown how the 2020 IMO bunker fuel spec
change for shipping will play out, we continue to watch the space and develop future options for
different price scenarios.
 We are well prepared for the 2018 shutdown which has started and expect an income impact of $30
million, the equivalent of a hydrocracker shutdown. This is the major event of our year, its size is a once
in every 15 years occurrence. For example, if you have not been able to get hold of scaffold recently, it
is because we have 2,000 tonnes of it on site.
 We continue with a strong growth agenda in 2018 including small optimisation projects, working on
pipeline capacity, jet import and sulphur prilling.
 Which leaves us with this profit matrix for the year with end of year borrowings and net income for
each exchange rate and unit gross margin combination.

 And before I close it would be remiss not to reflect this is my final AGM. I would like to say three thank
yous. Firstly to the Board who have always been supportive of our long term strategy and aspiration of
global HSE performance and operational excellence and pursuit of growth. An equally big thank you to
Denise and Greg who have been a terrific support in general and in these external presentations in
particular. Finally, of course and most importantly to all Refining NZ staff and contractors who carry the
company so obviously in their heart, so often demonstrated with their “beyond the call of duty”
response, for example during the pipeline rupture. It has been big learning for me and a real privilege to
have been spending time with this formidable team. Thank you.


Sjoerd Post
CEO