Port of Tauranga Posts Strong First Half Performance

18 February 2019

Port of Tauranga Posts Strong First Half Performance
FINANCIAL RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2018

Port of Tauranga (NZX.POT), New Zealand’s largest port, today reported a strong start to the 2019
financial year, with increased cargo volumes contributing to a 4.0% increase in Group Net Profit After
Tax to $49.0 million.

Highlights
• Total trade increased 8.8% to nearly 13.6 million tonnes
• Container volumes grew 5.1% to 621,117 TEUs
• Group Net Profit After Tax increased 4.0%, to $49.0 million for the six months to 31 December
2018
• Transhipment growth continued, with volumes increasing 18.9% to 174,983 TEUs
• Imports increased 5.7% from 4.7 million tonnes to almost 5.0 million tonnes
• Exports increased 10.8% from 7.7 million tonnes to 8.6 million tonnes, with a significant increase
in log exports (up 11.7%)
• Interim dividend of 6 cents per share, up 5.3% on the previous period’s dividend.

Half year trade volumes at the country’s busiest cargo gateway grew by 8.8% overall.

Transhipment volumes, where containers are transferred from one service to another at Tauranga,
continue to rise as the Port solidifies its role as an international hub. It allows shippers from all over
New Zealand to access fast and frequent connections to North Asia and South America. Transhipments
made up more than a fifth of containers handled over the six month period.

Port of Tauranga Chair, David Pilkington, said the results were very pleasing.

“Group operating profit grew 4.0% in the first half of the financial year. Tauranga is working very well
as an international hub port for shippers looking to quickly and efficiently access large ship container
services.

“Tauranga is the only New Zealand port that can easily accommodate these big ships and we are very
pleased by the amount of transhipment occurring from other New Zealand locations as well as
Australia,” said Mr Pilkington.

Bulk cargo volumes also continued to grow, driven largely by the increase in log exports but also
increases in kiwifruit, meat and apple exports.

Port of Tauranga’s inland freight hub, MetroPort Auckland, handled a 3.8% increase in containers to
set a new record in cargo transferred by rail to and from Auckland during the seasonal peak between
October and December.

2



Port of Tauranga Chief Executive, Mark Cairns, said it was pleasing that KiwiRail had been able to gear
up quickly to transfer shipments diverted to Tauranga due to operational issues in Auckland.

He said Port of Tauranga was continually assessing the future needs of importers and exporters to
ensure we invest in a timely manner the meet the anticipated growth.

“It has been two and a half years since the successful completion of our expansion programme to
accommodate larger ships,” he said.

“All evidence points to a continuing trend to larger vessels. Our strategy to create long term value for
our shareholders is clearly working and we are now planning for the next stage of cargo growth,” said
Mr Cairns.

A ninth container crane has been ordered for delivery in 2020 and preparations are under way to extend
the container terminal quay by up to 385 metres by converting port-owned land south of the existing
770-metre quay. The Company is assessing options for increasing container storage and handling
capacity.

Reconfiguration of existing wharf space is under way on both sides of the harbour to ensure efficient
cargo handling.

“We also have the capacity to increase train frequency in future as required,” said Mr Cairns.

Rail is Port of Tauranga’s preferred mode of cargo transfer due to its environmental benefits and to
avoid contributing to road congestion, which is an ongoing concern for Tauranga residents due to the
massive population growth in the region.

“Long term value creation for our shareholders is only possible if we keep up our efforts to enhance our
environmental performance, our relationships with our employees, our suppliers and our community,”
said Mr Cairns.

In the six months to 31 January 2019, the Port’s use of rail avoided the equivalent of more than 300,000
truck movements.

Port of Tauranga has renewed its long-term operating agreement with Oji Fibre Solutions, New
Zealand’s major manufacturer of market kraft pulps, container board and packaging products. Oji has
committed to consolidating the majority of its import and export cargo volumes through Port of Tauranga
for the next decade.

Cargo trends
Log exports remain buoyant on the back of strong demand from China and record international prices.
Log volumes increased 11.7% to 3.7 million tonnes for the six month period, while sawn timber volumes
increased 9.0%.

Kiwifruit volumes increased 30.2% compared with the previous corresponding period, with the trend
continuing towards refrigerated containerisation of kiwifruit exports.

Other produce exports also grew substantially, with volumes of frozen meat increasing 17.3% and
apples increasing 64.9% compared with the same period last year.

Dairy product exports remained steady, with the volumes the same as the first half of the last financial
year.

3


Imported oil products, fertilisers, chemicals and bulk liquids remained steady or decreased slightly. Salt
and grain imports increased 15.5% and 7.3% respectively.

Ship visits decreased 5.4% to 842 in the six month period but their average length continues to increase.

Subsidiary/Associate Companies
Quality Marshalling, which is 100% owned by Port of Tauranga, continues to perform well with a
refreshed portfolio of cargo and service contracts. Its earnings increased 36.4% compared with the
previous corresponding period.

Our Associate Companies’ earnings declined compared with the previous six month period.

Industry environment
Mr Pilkington said Port of Tauranga was pleased the Government have preserved the opt-out provisions
of Multi Employer Collective Agreements (MECA) in proposed employment legislation.

“However, we are concerned about the potential impacts of the recommendations from the Fair Pay
Agreement Working Group and we will be watching developments closely,” he said.

Mr Pilkington said that the likely outcome of the Government’s Upper North Island Supply Chain Study
was unclear at this stage.

“We have had brief contact with the working group to date and we await their report with interest,” he
said.

Outlook
Port of Tauranga is on track to deliver a strong result for the full financial year, subject to any significant
change in the global trading environment and the usual cyclical fluctuations in commodity cargo
volumes.

We expect our earnings to be at the upper end of the previous guidance of $96 to $101 million given at
our Annual Meeting in October.


For further details, please contact:
Mark Cairns, Chief Executive David Pilkington, Chair
Port of Tauranga Limited Port of Tauranga Limited
Mob: 021 978 887 Mob: 021 609 635


About Port of Tauranga:
Port of Tauranga, headquartered in the Bay of Plenty, is New Zealand’s largest port and international freight
gateway. It operates wharves in 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 cargo services company; Coda
(50% ownership), a freight logistics group; Northport (50% ownership), the deep water commercial port in
Whangarei; PrimePort Timaru (50% ownership), the commercial port in Timaru; Timaru Container Terminal
(50.1% ownership), which leases and operates the terminal at Timaru; and PortConnect (50% ownership), an
online cargo management system. For more information, please visit www.port-tauranga.co.nz

---

INTERIM REPORT 2018
NEW ZEALAND’S
CARGO GATEWAY
TO THE WORLD

1
Interim Report
For the six months ended 31 December 2018 : Port of Tauranga Limited and Subsidiaries
Port of Tauranga Limited’s growth continues with a
strong start to the 2018-2019 financial year.
New Zealand’s major international hub port saw
strong cargo growth, with cargo volumes growing
8.8% to nearly 13.6 million tonnes for the six month
period.
FINANCIAL RESULTS
The Group’s Net Profit After Tax increased 4.0% to
$49.0 million.
The Port of Tauranga Board has declared a fully
imputed interim dividend of 6 cents per share,
a 5.3% increase on the dividend in the previous
corresponding period.
CARGO TRENDS
The volume of imported goods increased 5.7% to
almost 5.0 million tonnes, while exported cargo
increased 10.8% to 8.6 million tonnes for the six
month period.
Growth was driven by increased log and sawn
timber exports. Log exports grew 11.7% to 3.7
million tonnes for the six month period, while sawn
timber volumes increased 9.0%.
Container volumes increased 5.1% to 621,117
TEUs
1
. Transhipment volumes continue to increase,
growing 18.9% compared with the previous
corresponding period to 174,983 TEUs. The number
of containers transferred to and from Auckland by
rail grew 3.8%.
Kiwifruit volumes handled at Port of Tauranga
increased 30.2% compared with the previous
corresponding period, with the trend towards
greater containerisation of kiwifruit exports
continuing.
Other produce exports also grew substantially,
with volumes of frozen meat increasing 17.3% and
apples increasing 64.9% compared with the same
period last year.
Dairy product exports remained steady, with
volumes the same as the first half of the last
financial year.
Imported oil products, fertilisers, chemicals and
bulk liquids remained steady. Salt and grain imports
increased 15.5% and 7.3% respectively.
Ship visits decreased 5.4% to 842 in the six month
period but their average length continues to grow.
OPERATIONAL AND OTHER DEVELOPMENTS
Container services have been diverted to Tauranga
due to congestion at Auckland and we expect this
to continue for the remainder of the financial year.
Port of Tauranga has commenced planning for the
next stage of cargo growth. Preparations are under
way to extend the container terminal’s 770 metre
quay by up to 385 metres. A ninth container crane
has been ordered for delivery in 2020.
Port of Tauranga and Oji Fibre Solutions have
agreed a 10 year extension to our long-term
operating agreement. Oji Fibre Solutions is New
Zealand’s major manufacturer of market kraft
pulps, container board and packaging products.
The company has committed to consolidating the
majority of its import and export cargo volumes
through Port of Tauranga for the next decade.
SUBSIDIARY AND ASSOCIATE COMPANIES
Quality Marshalling, which is 100% owned by
Port of Tauranga, continues to perform well with a
refreshed portfolio of cargo and service contracts.
Its earnings increased 36.4% compared with the
previous corresponding period.
Our Associate Companies’ earnings declined
compared to the previous six month period.
OUTLOOK
Port of Tauranga is on track to deliver a strong result
for the full financial year, subject to any significant
change in the global trading environment and the
usual cyclical fluctuations in commodity cargo
volumes.
We expect our earnings to be at the upper end of
the previous guidance of $96 to $101 million given
at our Annual Meeting in October.
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.
1
TEUs = twenty foot equivalent units – a standard
measure of shipping containers

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
2018
Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2017
Group
NZ$000
(Audited)
Year
Ended
30 June
2018
Group
NZ$000
Total operating revenue152,996
141,431283,726
Contracted services for port operations
(33,063)
(29,316)(58,797)
Employee benefit expenses
(18,939)
(18,596)(37,780)
Direct fuel and power expenses
(4,614)
(4,251)(9,230)
Maintenance of property, plant and equipment
(4,118)
(4,380)(9,346)
Other expenses
(8,357)
(7,767)(14,478)
Operating expenses(69,091)
(64,310)(129,631)
Results from operating activities83,905
77,121154,095
Depreciation and amortisation
(13,830)
(12,940)(25,269)
Reversal of previous revaluation deficit
0
0446
(13,830)
(12,940)(24,823)
Operating profit before finance costs and taxation70,075
64,181129,272
Finance income
185
194391
Finance expenses (refer note 6)
(9,071)
(9,330)(18,418)
Net finance costs(8,886)
(9,136)(18,027)
Share of profit from Equity Accounted Investees
4,770
7,90815,141
Profit before income tax65,959
62,953126,386
Income tax expense
(16,972)
(15,840)(32,113)
Profit for the period 48,987
47,11394,273
Basic earnings per share (cents)
7.3
7.014.0
Diluted earnings per share (cents)
7.2
6.913.9
Consolidated Income Statement
For the six months ended 31 December 2018 : Port of Tauranga Limited and Subsidiaries
(Unaudited)
Six Months
Ended
31 December
2018
Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2017
Group
NZ$000
(Audited)
Year
Ended
30 June
2018
Group
NZ$000
Profit for the period48,987
47,11394,273
Other comprehensive income
Items that are or may be reclassified to profit or
loss:
Cash flow hedge – changes in fair value
(2,997)
(1,638)(3,520)
Cash flow hedge – reclassified to profit or loss
737
1,0792,226
Share of net change in cash flow hedge reserves
of Equity Accounted Investees
(79)
(46)(71)
(2,339)
(605)(1,365)
Items that will never be reclassified to profit or
loss:
Asset revaluation, net of tax
0
0209,778
Share of net change in revaluation reserves of
Equity Accounted Investees
288
5511,711
288
551211,489
Total other comprehensive income(2,051)
(54)210,124
Total comprehensive income46,936
47,059304,397
Consolidated Statement of Comprehensive Income
For the six months ended 31 December 2018 : 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 201768,2763,868(7,989)729,065138,723931,943
Profit for the period000047,11347,113
Total other comprehensive income
00(605)5510(54)
Total comprehensive income
00(605)55147,11347,059
Increase in share capital1470000147
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
Profit for the period000047,16047,160
Total other comprehensive income
00(760)210,9380210,178
Total comprehensive income
00(760)210,93847,160257,338
Decrease in share capital(1,607)0000(1,607)
Dividends paid during the period
0000(38,792)(38,792)
Equity settled share based payment
01,4170001,417
Total transactions with owners in
their capacity as owners
(1,607)1,41700(38,792)(38,982)
Balance at 30 June 2018
70,7542,047(9,354)940,554117,9791,121,980
Adjustment on adoption of NZ
IFRS 9
0000(274)(274)
Profit for the period000048,98748,987
Total other comprehensive income
00(2,339)2880(2,051)
Total comprehensive income
00(2,339)28848,98746,936
Decrease in share capital(1,011)0000(1,011)
Dividends paid during the period
(refer note 7)
0000(81,632)(81,632)
Equity settled share based payment
accrual
0926000926
Total transactions with owners in
their capacity as owners
(1,011)92600(81,632)(81,717)
Balance at 31 December 2018
69,7432,973(11,693)940,84285,0601,086,925
Consolidated Statement of Changes in Equity
For the six months ended 31 December 2018 : Port of Tauranga Limited and Subsidiaries
(Unaudited)
31 December
2018
Group
NZ$000
(Unaudited)
31 December
2017
Group
NZ$000
(Audited)
30 June
2018
Group
NZ$000
Assets
Property, plant and equipment (refer note 8)
1,454,581
1,224,4921,446,270
Intangible assets
18,212
17,77318,521
Investments in Equity Accounted Investees
133,720
130,213134,331
Receivables
24
3025
Total non current assets1,606,537
1,372,5081,599,147
Cash and cash equivalents
3,190
10,6575,836
Receivables and prepayments
57,963
47,42851,646
Inventories
528
355402
Total current assets61,681
58,44057,884
Total assets1,668,218
1,430,9481,657,031
Equity
Share capital
69,743
72,36170,754
Share based payment reserve
2,973
6302,047
Hedging reserve
(11,693)
(8,594)(9,354)
Revaluation reserve
940,842
729,616940,554
Retained earnings
85,060
109,611117,979
Total equity1,086,925
903,6241,121,980
Liabilities
Loans and borrowings (refer note 9)
175,089
125,000130,021
Derivative financial instruments
14,022
10,48811,787
Provisions
1,836
2,1651,746
Deferred tax liabilities
68,874
55,10870,484
Total non current liabilities259,821
192,761214,038
Loans and borrowings (refer note 9)
280,000
295,285275,335
Derivative financial instruments
946
2270
Accounts payable and accruals
33,770
30,90232,656
Revenue received in advance
345
244279
Provisions
1,531
2,1973,080
Provision for tax
4,880
5,7089,663
Total current liabilities321,472
334,563321,013
Total liabilities581,293
527,324535,051
Total equity and liabilities1,668,218
1,430,9481,657,031
Net tangible assets per share (dollars per share)1.59
1.321.64
Consolidated Statement of Financial Position
As at 31 December 2018 : 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
2018
Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2017
Group
NZ$000
(Audited)
Year
Ended
30 June
2018
Group
NZ$000
Cash flows from operating activities
Receipts from customers
153,247
142,964284,379
Interest received
184
192388
Payments to suppliers and employees
(75,450)
(68,980)(135,078)
Taxes paid
(22,485)
(19,636)(32,030)
Interest paid
(8,495)
(8,907)(18,228)
Net cash inflow from operating activities47,001
45,63399,431
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
7
07
Finance lease payments received, including interest
7
713
Repayment of advances from Equity Accounted
Investees
200
0350
Dividends from Equity Accounted Investees
5,591
5,78310,033
Purchase of property, plant and equipment
(22,291)
(9,625)(17,399)
Purchase of computer software assets
(115)
0(137)
Interest capitalised on property, plant and equipment
(138)
(186)(175)
Total net cash used in investing activities(16,739)
(4,021)(7,308)
Cash flows from financing activities
Proceeds from borrowings
95,111
40,08630,167
Repurchase of shares
(1,386)
0(1,614)
Repayment of borrowings
(45,001)
0(5,007)
Dividends paid
(81,632)
(76,225)(115,017)
Net cash used in financing activities(32,908)
(36,139)(91,471)
Net (decrease)/increase in cash held(2,646)5,473652
Add opening cash brought forward
5,836
5,1845,184
Ending cash and cash equivalents3,190
10,6575,836
Consolidated Statement of Cash Flows
For the six months ended 31 December 2018 : Port of Tauranga Limited and Subsidiaries
Consolidated Statement of Cash Flows (continued)
For the six months ended 31 December 2018 : Port of Tauranga Limited and Subsidiaries
(Unaudited)
Six Months
Ended
31 December
2018
Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2017
Group
NZ$000
(Audited)
Year
Ended
30 June
2018
Group
NZ$000
RECONCILIATION OF PROFIT FOR THE PERIOD
TO CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period48,987
47,11394,273
Adjustments for non cash and non operating items
Depreciation and amortisation expense
13,830
12,94025,269
Decrease in deferred taxation expense
(731)
(870)(1,175)
Share of surpluses retained by Equity Accounted
Investees
(4,770)
(7,908)(15,141)
Other
966
7371,295
9,295
4,89910,248
Less movements in working capital
(11,281)
(6,379)(5,090)
Net cash flows from operating activities47,001
45,63399,431

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 2018.
3 SIGNIFICANT ACCOUNTING POLICIES
Other than as set out below in regard to NZ IFRS 9 adoption, 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 2018.
The following new standard has been adopted and applied in preparing these financial statements:
• NZ IFRS 9 Financial Instruments
This standard was adopted with effect from 1 July 2018. 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.
There has been no material quantative impact on the financial statements and all existing
hedges will remain effective.
The following new standard is not yet effective in preparing these financial statements:
• 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 has assessed that the net effect of the
adoption of NZ IFRS 16 will not be material. The Group intends to adopt this standard from
1 July 2019.
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2018 : 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 2018.
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. 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 2018 : Port of Tauranga Limited and Subsidiaries

1011
5 SEGMENT INFORMATION (CONTINUED)
Six Months Ended
31 December 2018
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)136,33014,2772,38900152,996
Inter segment revenue0326,1150(6,147)0
Total segment
revenue
136,33014,3098,5040(6,147)152,996
Other income
and expenditure:
Share of profit
from Equity
Accounted
Investees
0004,77004,770
Interest income0001850185
Interest expense000(9,005)0(9,005)
Depreciation
and amortisation
expense
00(442)(13,388)0(13,830)
Other unallocated
expenditure
00(6,266)(69,038)6,147(69,157)
Income tax
expense
00(503)(16,469)0(16,972)
Total other income
and expenditure
00(7,211)(102,945)6,147(104,009)
Total segment result136,33014,3091,293(102,945)048,987
(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 2018 : Port of Tauranga Limited and Subsidiaries
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 2018 : Port of Tauranga Limited and Subsidiaries

1213
6 FINANCE EXPENSES
Six Months
Ended
31 December
2018
Group
NZ$000
Six Months
Ended
31 December
2017
Group
NZ$000
Interest expense on borrowings
9,143
9,478
Less:
Interest capitalised to property, plant and equipment
(138)
(186)
9,005
9,292
Ineffective portion of changes in fair value of cash flow hedges
2
15
Amortisation of interest rate collar premium
43
23
Total finance expenses9,071
9,330
7 DIVIDENDS
The following dividends were paid by the Group:
Six Months
Ended
31 December
2018
Group
NZ$000
Six Months
Ended
31 December
2017
Group
NZ$000
Final dividend of 7.0 cents per share (2017: 6.2 cents per
share)
47,618
42,196
Special dividend of 5.0 cents per share (2017: 5.0 cents per
share)
34,014
34,029
Total dividends paid
81,632
76,225
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2018 : Port of Tauranga Limited and Subsidiaries
8 PROPERTY, PLANT AND EQUIPMENT
Acquisitions and Disposals
During the six months ended 31 December 2018, the Group acquired assets with a cost of $21.713
million (six months ended 31 December 2017: $9.740 million).
9 LOANS AND BORROWINGS
31 December
2018
Carrying Value
Group
NZ$000
31 December
2017
Carrying Value
Group
NZ$000
Commercial papers
180,000
245,000
Standby revolving cash advance facility
150,000
50,000
Fixed rate bonds
125,000
125,000
Advances from employees
89
285
Total loans and borrowings455,089
420,285
Current
280,000
295,285
Non current
175,089
125,000
Total loans and borrowings455,089
420,285
Commercial Papers
As at 31 December 2018 the Group had $280 million of loans and borrowings that are classified
within current liabilities (2017: $295 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 Group having $280 million (2017: $280 million) of
undrawn committed term debt facilities. The current portion of the Group’s debt facilities will be
refinanced in the current year.
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2018 : 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
2018
NZ$000
Six Months
Ended
31 December
2017
NZ$000
Transactions with Equity Accounted Investees
Services provided to Port of Tauranga Limited
234
240
Services provided by Port of Tauranga Limited
1,391
1,551
Accounts receivable by Port of Tauranga Limited
224
174
Accounts payable by Port of Tauranga Limited
9
0
Advances by Port of Tauranga Limited
6,119
6,669
Services provided by Quality Marshalling Limited
1,920
2,191
Accounts receivable by Quality Marshalling Limited
393
456
During the six months ended 31 December 2018, 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 2017: 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 $15,611 (six months ended 31 December 2017:
$10,048).
Transactions with Key Management Personnel
The Group does not provide any non cash benefits to Directors in addition to their Directors’ fees.
Six Months
Ended
31 December
2018
Group
NZ$000
Six Months
Ended
31 December
2017
Group
NZ$000
Directors
Directors’ fees recognised during the period
367
353
Executive Officers
Salaries and short term employee benefits recognised during
the period
1,845
2,120*
Share based payments (cash and equity settled) recognised
during the period
286
313
*Includes back dated holiday pay.
11 COMMITMENTS
Six Months
Ended
31 December
2018
Group
NZ$000
Six Months
Ended
31 December
2017
Group
NZ$000
Capital commitments
Estimated capital commitments for the Group contracted for at
the reporting date but not provided for
14,598
0
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.
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2018 : Port of Tauranga Limited and Subsidiaries
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2018 : 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 – 15
do not:
i. Present, in all material respects the Group’s
financial position as at 31 December 2018
and its financial performance and cash flows
for the 6 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 2018;
— The consolidated statements of comprehensive
income, changes in equity and cash flows for
the 6 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 has also provided other services to the
Group in relation to a treasury health check advisory
engagement. 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 interim consolidated
financial statements that are 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
18 February 2019
DIRECTORS
D A Pilkington, Chair
A M Andrew
K R Ellis
J C Hoare
A R Lawrence
D W Leeder
Sir Robert McLeod
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
WAV24790

NEW ZEALAND’S
www.port-tauranga.co.nz

---

PORT OF TAURANGA LIMITED

Results for announcement to the market

Reporting Period 6 months to 31 December 2018
Previous Reporting
Period
6 months to 31 December 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
NZ$152,996 +8.2%
Profit (loss) from ordinary
activities after tax
attributable to security
holder.
NZ$48,957 +4.0%
Net profit (loss)
attributable to security
holders.
NZ$48,957 +4.0%

Interim/Final Dividend Amount per security Imputed amount per
security
Interim NZ$0.06 $0.023333

Record Date 8 March 2019
Dividend Payment Date 22 March 2019

Comments:

---

APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10.details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issue
r
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumberDate
Nature of event
BonusIf ticked,Rights Issue
Tick as appropriateIssuestate whether:Taxable/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
/
whether:
Interim
/
YearSpecialDRP Applies
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 eventIf 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
Amount per securityPayment
(does not include any excluded income
Excluded income per security
(only applicable to listed PIEs)
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
NZSX 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
Imputation Credit
issue state strike priceWithholdin
g Tax(Give details)
Foreign
FDP Credits
Withholdin
g Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting RightsSecurity Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
8 March 201922 March 2019
$$0.004167$0.023333
$
NZD$0.010588
$40,808,496.30
Date Payable
22 March 2019
Enter N/A if not
applicable
NZPOTE0003S0
In dollars and cents
Retained profits
$0.06
07 572 889907 572 880018 022019
ORDINARY SHARES
EMAIL: announce@nzx.com
Notice of event affecting securities
PORT OF TAURANGA LIMITED
S G GRAYDIRECTORS RESOLUTION

---

u:\documents\word\pressreleases\nzx letter - interim result dec 2018.docx



18 February 2019



NZX
Wellington



Dear Sir/Madam

PORT OF TAURANGA LIMITED INTERIM RESULTS: 31 DECEMBER 2018

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

---

Presentation to Analysts18 February 2019

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 Directors,
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 prese
ntation.
The information contained in t
his presentation is not intended
to be relied upon as advice to investors
and does not take into account the investment objectives, finan
cial situation or needs of any particular
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 statements which are availab
le in the investor section of our
website.

Highlights
• Group NPAT up 4.0%• Parent NPAT up 10.5%• Total trade up 8.8%• Logs up 11.7%• Container volumes up 5.1%• Transhipment up 18.9%• Interim dividend up 5.3%

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,
water.

Group Net Profit After Tax up 4.0%
$41,858
$47,113
$48,987
$0
$10,000$20,000$30,000$40,000$50,000
2016
2017
2018

Parent Net Profit After Tax up 10.5%
$33,818
$38,693
$42,750
$0
$10,000$20,000$30,000$40,000$50,000
2016
2017
2018

Interim Dividend up 5.3%
5.0
5.7
6.0
02468
2016
2017
2018
cents

Net Debt / Net Debt +Equity
30.7%
31.2%
29.4%
0%5%
10%15%20%25%30%35%40%45%50%
2016
2017
2018
6 months ended 31 December 2018

Total Trade up 8.8%
10,991
12,467
13,573
0
2,0004,0006,0008,000
10,00012,00014,00016,000
2016
2017
2018
000s tonnes

Container Volumes up 5.1%
510,074
590,803
621,117
100,000200,000300,000400,000500,000600,000700,000
2016
2017
2018
TEUs

Transhipments up 17.9%
99,887
147,197
174,983
0
50,000
100,000150,000200,000
2016
2017
2018
TEUs

Exports – Logs up 11.7%
2,918
3,282
3,666
0
500
1,0001,5002,0002,5003,0003,5004,000
2016
2017
2018
000s tonnes

Exports – Kiwifruit up 29.9%
477
374
486
0
100200300400500600
2016
2017
2018
000s tonnes

Exports – Dairy
1,122
1,153
1,154
0
100200300400500600700800900
1,0001,1001,200
2016
2017
2018
000s tonnes

Imports – Fertiliser
323
333
331
0
50
100150200250300350400
2016
2017
2018
000s tonnes

Imports – Grain & Dairy Feed
Supplements Down 11.9%
539
726
638
0
100200300400500600700800
2016
2017
2018
000s tonnes

Subsidiaries & Associate Companies

Subsidiaries & Associates
Net Profit After Tax
$7,894
$7,908
$6,237
$0
$2,000$4,000$6,000$8,000
$10,000
2016
2017
2018
$000s

Northport
Trade down 5% on last year
Containers up 49% to 11,875 TEUs

Coda Group
Tapper Transport / Priority Logistics / MetroPack / MetroBox /
Dairy Transport Logistics
Profit down on last year due to
$2m of audit adjustments relati
ng to FY18

Rolleston Warehouse

PrimePort Timaru
Earnings down due to higher wharf maintenance costs

Timaru Container Terminal
NPAT down due to lower container volumes

Quality Marshalling
NPAT up 36%
Good performance across all areas of the company

Outlook 2019

Log Pricing: Shipping Costs

MetroPort Auckland
Volumes up 3.9%
Train programme increased from 86 to 94 trains
per week to handle peak volumes
Headroom still available on Auckland-Hamilton-Tauranga route

Cars

Parent Capital Expenditure 2015-2019
$48,700
$63,323
$60,166
$16,788
$45,000
$0
$20,000$40,000$60,000$80,000
2015
2016
2017
2018
2019F

Upper North Island Supply Chain Study

Outlook 2019
• Expect to handle about 1.3 million TEUs• Revised FY19 earnings guidance to be at the upper
end of $96 million and $101 million

THANK YOU