Results Presentation – 23 August 2018

Petroleum Refiners Marsden Point, Private Bag 9024, Whangarei, New Zealand.
Telephone +64-9-432 8311, Website www.refiningnz.com


ANALYST PRESENTATION

23 AUGUST 2018


The attached presentation is discussed via webcast conference at 9.15 am NZT on Thursday, 23
rd
of August 2018.




D.M. Jensen
Chief Financial Officer / Company Secretary

---

1
Refining NZ
Analyst Briefing
23 August 2018

2
DISCLAIMER
•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 August 2018.

3
AGENDA
2018 PERFORMANCE
THE FUTURE

4
FIRST HALF NUMBERS DOMINATED BY THE SHUTDOWN
3 cps interim dividend
HY 17HY18
Gross RefineryMargin (US$/barrel)7.705.65
Free cash flow (NZ$m)
[1]
EBITDA
39
105
(75)
50
Net profit after tax–Group (NZ$m)35.2(2.8)
Personal
TRCF
[2]
0.940.75
LTIF
[2]
0.130.47
Process
Tier 1 (>US$25k)
[3]
02
Tier 2 (>US$2.5k)
[3]
22
Releases outside consent21
Throughput (million barrels)20.117.9
Operational availability96.2%83.3%
Brent price (US$/barrel)$52$71
Exchange rate (US$)0.710.73
[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 Half Year Report for further detail, available at http://www.refiningnz.com/investor-centre.aspx

5
SHUTDOWN COMPLETED
Major re-life
•1,700 work packs
•2,000 welds
•1,300 additional people on site (at peak)
•1,100 tonnes of scaffolding
Complex brownfield retrofits
•Hydrogen Manufacturing Unit
•Mid-section replacement –High Vacuum Unit
But...
•Brownfield, emergent work and weather challenges (13 days delay, $22m capital
spend)
•Original Equipment Manufacturer valve failure (8+ days delay)

6
UNDERLYING MARKET FUNDAMENTALS STRONG
Refining margin adjusted for shutdown at US$8.25 per barrel
* The Singapore Complex Margin is calculated using PlattsDubai crude and Singapore product prices, VLCC freight to
Singapore, and the International Energy Agency’s Dubai complex refinery yields adjusted for fuel & loss.
UPLIFT
US$/BARREL
HY17HY18
Δ
Freight1.59 2.16 0.57
Product quality1.04 0.94 (0.10)
Plant availability(0.27)(2.60)(2.33)
Crude cost and yield2.23 1.91 (0.32)
-
TOTAL4.59 2.42 (2.17)

7
IMPACT OF SHUTDOWN DOMINATES
See our Half Year Report for further detail, available at http://www.refiningnz.com/investor-centre.aspx
NZ$m

8
0.600.650.700.75
H2FY
102(4)(10)
5.005.28
270281290298
3021136
6.005.85
250259266276
49393022
7.006.41
230240250257
69574738
8.006.97
210222233242
89756353
9.007.54
190204216226
NPAT41 Producti on, Mbbl
99 Non Proces s i ng Fee Revenue, $m
Borrowi ngs97 Depreci ati on, $m
USD/NZD
GRM (USD/bbl)
2018 REVISED PROFIT MATRIX
CAPEX NZDM *)
20182019
Retain13950/55
Was139-14480
Grow1820/25
Was205
* Subject to final Board approval

9
AGENDA
2018 PERFORMANCE
THE FUTURE

10
STRONG MACRO CONTINUES
With IMO and Chinese export caveats
-600
-400
-200
0
200
400
600
800
1,000
1,200
2013201420152016201720182019202020212022
kb/d
Incremental CDU Capacity *Incremental Refinery Product Demand
Source: FACTS Global Energy (July 2018)

11
SURPLUS CAPACITY TRENDING DOWN TO THE “GOLDEN AGE”
With IMO and Chinese export caveats
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2001200220032004200520062007200820092010201120122013201420152016201720182019202020212022202320242025
mmb/d
Golden Age
Source: FACTS Global Energy (July 2018)

12
IMO STEP CHANGE IN BUNKER FUEL DEMAND FROM 2020
•Sulphur decrease from 3.5% to 0.5%
•Expected impact
•Price volatility in 2020 -2023
•Lift in diesel demand and price
•Depressed HSFO demand and price
•Scrubber sales increasing
•Large refineries installing conversion capacity
Diesel
HSFO
Source: FACTS Global Energy (July 2018)

13
PIPELINE CAPACITY
ON SCHEDULE
DREDGING CONSENT
GRANTED
SULPHUR FORMING
REPHASED
JET IMPORT FACILITY
DELIVERED
SHORT PAYBACK
PROJECTS DELIVERED
GROWTH AGENDA
•Hydrogen optimisation
(6 USc/bbl)
•Additional nitrogen
storage (0.5 USc/bbl)
•Variable speed drive on a key
compressor
(0.5 USc/bbl)
•Resource consent
challenged August 2018
•Dredging 2019/2021
onwards*
•Studying tankage
conversion
•2019 completion
•2019 completion
* Subject to final Board approval

14
0
1
1
2
2
3
CO
2
Nearterm
BIO-FUELS
ENERGY SAVINGS
Mid-to long-term
CLIMATE CHANGE PRESENTS AN OPPORTUNITY
TE MAHI HOU
BIO-FUELS
HYDROGEN

15
CLIMATE CHANGE PRESENTS AN OPPORTUNITY
TeMahi Hou
$4.6 billion
spent on
Tesla Model 3s
60,000
Toyota Corollas
TOYOTA COROLLA 2017 –2018
Small Car: Saloon
TESLA MODEL 3
TE MAHI HOU
$365 million
120,000
tonnes/year
CO
2
reduction
=
=
Note: based on NZTA mileage and CO2 emission statistics and price of current Tesla model 3 model available in NZ

16
KEY TAKE-OUTS
•Shutdown completed
•Current margin and forex environment favourable
•Next shutdown in 2020
•Short payback projects agenda continues
•Climate change presents an opportunity
•Assets integral to a brownfield biofuels and H2 future re-lifed

17
Refining NZ
Analyst Briefing
23 August 2018

18
APPENDIX I
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.