Annual Shareholders’ Meeting – Presentation Materials

NZX Statement

Annual Shareholders’ Meeting – Presentation Materials
The New Zealand Refining Company Limited provides a copy of the Chairman’s Address, CEO’s
Address and Presentation to the Annual Shareholders’ Meeting, being held today at 2:00pm at
Eden Park, South Level 4 Lounge, Auckland.
The meeting can be viewed on-demand via the company’s website (www.refiningnz.com) from
Monday, 15
th
April 2019.


D.M. Jensen
Chief Financial Officer / Company Secretary

12 April 2019

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Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 5100 Email: corporate@refiningnz.com www.refiningnz.com

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 5100 Email: corporate@refiningnz.com www.refiningnz.com
Chairman’s address
It is a pleasure to welcome you all to the Company’s Annual Meeting of Shareholders.

The dominant theme of the Company’s performance in 2018 is the essential value that the strong and
reliable running of our refinery has for the future of our business, for our shareholders, customers and for
New Zealand’s energy future.

In 2018 we successfully completed the first planned total refinery shutdown in 14 years which is a credit to
the shutdown crew and to everyone at the refinery. This vital re-investment in our infrastructure sets us up
well for the years ahead and its successful completion has already contributed to the optimal running of
the refinery’s processing units as evidenced by the highest ever second half throughput at the refinery.

The Net Profit after Tax (NPAT) of $29.6 million, reported for the year ended 31 December 2018 down from
$78.5 million in 2017, reflects the impact of the shutdown in the first half of the year and the higher capital
spend this required. This was partially offset by healthy refining margins, a weaker exchange rate and a
strong operational performance in the second half of the year. However, we are conscious that the total
returns to our shareholders were unsatisfactory. Addressing this issue is of an immediate priority for your
board and management and is at the heart of the strategic review which we signalled in February. We are
very pleased with the progress made and will have more detail available for shareholders at our strategy
day in June.

Performance Highlights

Mike will go into more detail about the Company’s performance in his presentation. For now I will focus on
a number of the highlights.

The Gross Refining Margin averaged USD 6.31 for the year down from USD 8.02 per barrel the year prior or
USD 7.33 when normalised for the 2018 shutdown. This is at the top of its historical USD 4.00 to USD 6.00
per barrel range (prior to the Te Mahi Hou investment), reflecting global demand growth and our continued
progress in optimising the Refinery’s operations.

The planned maintenance shutdown was completed safely in June. A combination of complex major work,
emergent work and inclement weather meant that the shutdown took longer and therefore cost more than
was expected. The restart of the Hydrocracker following the shutdown was delayed by eight days due to a
manufacturing weld failure on a newly installed isolation valve on the Hydrocracking Unit and we are
continuing to follow this up with the supplier involved.

Despite these setbacks, in conjunction with the shutdown we were also able to successfully complete the
major refurbishing of the Refinery’s Hydrogen Manufacturing Unit. This investment underpins the
Refinery’s role in the fuels supply chain and presents the exciting possibility of developing further hydrogen
infrastructure, which we believe is critical to supporting a low carbon economy, and to New Zealand
continuing to meet its climate change obligations.
Health, and Safety

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 5100 Email: corporate@refiningnz.com www.refiningnz.com
As a high hazard facility we are extremely conscious of our health and safety performance. We hold
ourselves accountable for the health and safety of every individual at the refinery and are always looking to
lift our safety performance so that all of our people go home safely every day.

In 2018, we achieved a major milestone with the submission of our Safety Case to WorkSafe, a written
demonstration that our refinery has the ability and means to control major incident hazards effectively and
have engaged extensively with the community on this.

Our personal and process safety performance in 2018 was impacted during the shutdown but was much
improved in the second half of the year. We continue to look for ways to improve our health and safety
performance and Mike will go into more detail on this in his presentation.
Environment

We aim to deliver a world class environmental performance and as one of the larger industrial emitters of
carbon dioxide in New Zealand we are highly conscious of our responsibility to minimise the environmental
impact of our refining operations.

Our commitment to improving our energy performance is longstanding and has seen our CO2 intensity
reduce by around 20% since 2008, helped by the agreed reductions pathway under the Negotiated
Greenhouse Agreement (NGA) with the Crown and by the Te Mahi Hou project which dropped CO2
emissions by 120,000 tonnes per year – the emissions equivalent of taking 60,000 Toyota Corollas off the
road, or New Zealanders investing $4.6 billion in the Tesla 3.
The work we’ve undertaken to reduce our carbon emissions means that our refining business is well placed
to meet the challenge of climate change and in light of the Government’s regulatory agenda – to help New
Zealand meet its obligations under the Paris Agreement.

In the regulatory space the Company is close to agreeing the status of the refinery for when the Negotiated
Greenhouse Agreement we have with the Crown expires at the end of 2022. We are expecting this to be
formally confirmed by the Government later in the year. Separately, the early renewal of the refinery’s
resource consent ahead of their expiry in 2022 provides a platform to pursue a refreshed business strategy
based on improved performance and growth opportunities capable of significantly enhancing shareholder
value while also contributing to the Government’s green agenda.

This aligns with our belief that real and sustained value is created when the benefits are delivered across
multiple fronts: - financially, environmentally and socially.

Government Inquiry

In December, the Government commenced its Inquiry into the September 2017 pipeline outage. Its
purpose is to draw lessons from the outage to inform how the fuel industry and the Government could
improve the resilience of fuel supply to the Auckland region. The Refinery is actively working with the
Inquiry team.

While the Company has publicly welcomed the Inquiry, the Board wishes to emphasise the findings from
the Northland Regional Council investigation namely, that the rupture was beyond the control of Refining

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 5100 Email: corporate@refiningnz.com www.refiningnz.com
NZ and could not reasonably have been foreseen or provided against, and that Refining NZ took all
reasonable steps to prevent the rupture and adequately mitigated and remedied the environmental
effects.

The Board also notes that a considerable amount of management time and expertise is being expended to
ensure that the panel has all the information required to conduct a thorough and robust Inquiry. At the
same time we are also providing information to the Commerce Commission study into retail fuel markets.
Our expectation is that the Inquiry will arrive at constructive measures that will improve the resilience of
Auckland’s fuel supply and secure the confidence of government, our customers, business and the
travelling public.

Since the pipeline was originally commissioned in the mid 1980’s, Refining NZ has demonstrated its ability
to deliver high quality fuels reliably to NZ’s largest market; increasing the capacity on the pipeline, through
a substantial capital investment programme, by around 60% or 1.4 billion litres per annum. As a result, a
record 21 million barrels of fuel was able to be delivered through the pipeline in 2018 which is equivalent
of 101,000 tanker trucks between Marsden Point and Auckland city.

With regards to improving the resilience of fuel supply to Auckland, we remain willing and able to invest
and have made a number of recommendations to industry and Government.

Strategy

Over the past seven months, Refining NZ’s Management and Board have been focused on defining a
business strategy that will shape the future direction of the Company. It recognises the major contribution
of the Refinery to the national fuels supply chain and to Northland as well as the national economy. It also
acknowledges the challenges presented by the need to decarbonise the country’s energy infrastructure.

At the heart of our new strategy we are driving for a profitable core refining business: commercially
attractive, safe and reliable. The volatile nature of refining means that in the last 12 months shareholder
returns have not been as favourable as they have been over the medium term. The Board and
Management are highly aware of this and are looking to establish a more stable earnings base for our
shareholders. Our strategy will look to generate further value out of the core business, leveraging existing
assets and capabilities to lift the Refinery’s operational performance and improve shareholder returns. At
the same time we are exploring adjacent energy opportunities that will contribute to a sustainable refining
business for the medium and long term.

We are an essential player in the energy sector with a significant role to play in helping New Zealand meet
its climate change commitments and shaping the future of transport fuels. With New Zealand’s energy
future in mind, we are looking to build on the core critical infrastructure that we operate through the
judicious choice and implementation of economic new technologies.

As I referred to earlier, there will be more detail to share about our new strategy in June 2019.

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 5100 Email: corporate@refiningnz.com www.refiningnz.com
Subordinated notes issue

During 2018 the Board evaluated alternatives to optimise the capital structure of the business and this
work culminated in the issue on 14th December of $75 million of unsecured, subordinated notes for a term
of approximately 15 years. The notes provide greater financial flexibility by diversifying Refining NZ’s
funding sources. The net proceeds of the issue were used to repay a portion of the Company’s existing
bank debt.

Dividends

The Company’s Directors resolved to pay a fully imputed final dividend of 4.5 cents per share which was
paid on 21 March. With an interim dividend of 3 cents paid in September, the total dividend payment for
the 2018 year was 7.5 cents. This was in line with the company’s dividend policy of paying 80% of Free Cash
Flow, subject to the Board’s consideration of the Company’s medium-term asset investment programme,
20% targeted average gearing level and future circumstances. While this year’s dividend was lower than the
previous year, as I outlined earlier, the 14 year shutdown did impact the Company’s performance in 2018.
Our focus remains on building on the investments we have made and continuing to improve our operating
efficiency to lift the Company’s performance.

Board and management changes

In November James Miller was appointed as an Independent Director who brings a wealth of experience
and insight to the Refining NZ Board from the financial markets. You will have an opportunity to hear from
James a little later, when you will be asked to confirm James’ election to the Board. In February 2019, Mark
Tume resigned as a Director after eleven years on the Board. Mark has made a significant contribution to
the Refining NZ Board including two years as the chairman of the Audit, Risk and Finance Committee. He is
held in high esteem by fellow Directors for his professionalism, depth of experience and the commercial
acumen he brought to the Refining NZ Board table.

Thank you Mark for your significant contribution and I would like to welcome James to the Refining NZ
Board.

Following an extensive international search, the Board was pleased to announce the appointment of Mike
Fuge to the role of Chief Executive Officer in August of last year. Mike replaced Sjoerd Post who had held
the role since 2013. The Board is confident that Mike’s leadership and experience in the oil and gas, energy
and renewables sectors is extremely well placed to lead Refining NZ through the next phase of the
Company’s journey as we leverage the Refinery’s contribution to the low carbon initiatives arising out of
the Government’s commitment to zero carbon emissions by 2050.

Outlook

Looking ahead, a secure future for the refinery will be built on continuing to improve our operational
performance, which is a core strength for the business, continuing to manage our cost base, and realising
the opportunities to continue to transform our business in realistic, credible steps, into a sustainable, lower
carbon energy producer.

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 5100 Email: corporate@refiningnz.com www.refiningnz.com

CEO’s address
This is my first Annual Shareholder Meeting since I joined the Refinery as Chief Executive Officer last August
and I am pleased to have this opportunity to present to you today.

I’ve worked across New Zealand and around the world, but am proud to say that I am a fourth generation
Northlander. I count myself fortunate to have worked at the Refinery while I was studying engineering at
Canterbury University.

In the eight months since re-joining the company I’ve been extremely impressed and encouraged to find
the most striking qualities of our team at Marsden Point are their commitment to safety, pride in the
refinery and their deep capability, which is unique within New Zealand. The work that some of our process
engineers do, our operators, the fuels testing laboratory, the technology that our mechanical engineers
bring, is phenomenal. With that capability comes an understanding of the need to be consistently reliable
and to always look to improve on our performance.

Those qualities stand us in good stead for an energy future that will look different to what it is today.

The total refinery shutdown was the main event of the year.

This one in 14 year event was an enormous undertaking that required two years of planning and
marshalling resources from across the country, and around the world. At its peak there were 1,800 workers
on site, across multiple work fronts. Over 1,700 jobs were carried out safely and to a high quality, including
2,000 welds with less than a 1% failure rate. This is no mean feat and an absolute credit to all of our team
who have worked tirelessly to achieve this outcome.

The immediate benefit of the 2018 shutdown has been the reliable running of the Refinery’s processing for
the remainder of the year, and which saw refinery throughput for the second half of 2018 at its highest
ever. That strong operational performance is a core strength for the business and has allowed the Company
to capitalise on healthy refining margins.

The rich learnings from the 2018 Shutdown are already being applied to our planning for the 2020
turnaround and as a result we expect to have fewer complex jobs. Overall the turnaround will be smaller,
with around half the number of people and under half the number of jobs carried out in the 2018
Shutdown.

Lifting our health and safety performance.

As Simon mentioned, health and safely will always be a key focus for everyone at the Company and we
recognise the need to continue to lift our health and safety performance. In 2018 we had eight Total
Recordable Cases, five of which occurred during the planned maintenance shutdown. Our performance
improved in the second half of the year and this has continued into the first quarter of 2019 with no
recordable cases since November.

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 5100 Email: corporate@refiningnz.com www.refiningnz.com

While our performance compares well in a New Zealand manufacturing context, we will always strive to be
better and deliver a world-class health and safety performance outcomes for our people.

Addressing our performance is the focus of our 2019 health and safety action plan, central to which is E Tu
Tangata - a programme of safety culture initiatives. The launch and subsequent rollout of the programme is
being led by our line management and supported by the Health and Safety team. We expect that E Tu
Tangata - backed up by a sustained programme of on-the-ground safety observations across the refinery
will make inroads into improving safety performance across our employee and contractor workforce.

We continue to implement the recommendations from the DuPont review of our safety management
system and in the 2018 shutdown we rolled out two of its recommendations - a streamlined permit to work
system and an isolation system (log out tag out). The next DuPont safety audit in 2020 will provide a further
opportunity to build on the progress we have made to date.
We are committed to delivering through improved operations and competitiveness.

Our strong operational performance has continued in January and February with record hydrocracker
throughput and excellent plant uptime allowing us to exploit an improvement in refiners’ margins and to
continue to provide support to key industries that drive New Zealand’s economic growth.

We remain focused on improving the quality, reliability and competitiveness of our refining operations.
Attractive, short pay back, margin enhancing projects continue to reap benefits and these reflect the value
for the business and our shareholders of our ongoing investment in leveraging efficiencies.

The Refinery to Auckland Pipeline or RAP as it’s commonly referred to, underwent a capacity upgrade
during 2017 and 2018, to help meet growing Auckland demand. This saw the Refinery achieve a new annual
throughput record on the pipeline which Simon commented on earlier. The first two phases of this three-
phase upgrade have been completed and following a review of phase three, we are now exploring the use
of a drag reducing agent as an alternative de-bottlenecking option. This has the potential to increase
pipeline throughput by a further 15% at a lower capital investment. Investment in the capacity of the RAP
ensures that this vital supply route continues to keep pace with both the population growth in Auckland
and growth in tourist numbers.

In terms of improving resilience we have already committed to an investment of $1 million on emergency
jet tankering facilities that will make a significant contribution to the security of jet fuel supply should
normal supply be disrupted. We are also looking at the active deployment of Lidar surveillance technology
on the pipeline.

Dredging Consent

In December, the Environment Court confirmed the resource consents issued for the Refinery’s crude
shipping dredging project. This strategically important project has been de-risked considerably by a set of
revised conditions that all parties consider to be effective and workable. Improving the economics of up to
half of all crude delivered to the Refinery is expected to grow our gross refining margin in excess of USD 30
cents per barrel and is expected to help us to remain competitive with imported fuel from Asia Pacific

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 5100 Email: corporate@refiningnz.com www.refiningnz.com
refiners. To put this into context, this level of growth in the gross refining margin could be expected to lift
processing fee revenue by between $12 million to $14 million per annum.

A date for dredging to commence has yet to be confirmed and is dependent on the successful completion
of monitoring activity on the harbour, which starts this month with turbidity meters installed at critical
points in the harbour, and a final investment decision by the Board expected in Q2, Q3 this year.

While this is a significant project with material benefits for the Company, in the meantime, we believe
there is more that we can do to improve the operational performance and competitiveness of our core
business, while improving returns to our shareholders. This will continue to be a critical element of our
strategy moving forward.

We continue to deliver advances in environmental performance.

This includes the reduction in sulphur per unit of fuel production as well as the carbon intensity of our
refining operation which has already improved by 20% since 2008.

We are reviewing a number of options and working with our customers and the Ministry of Transport to
meet the requirements of the International Maritime Organisation’s MARPOL regulations which come into
effect in 2020 and aim to reduce the sulphur content of fuel oil used in shipping from 3.5% to 0.5%. Options
include producing low sulphur fuel oil, installing new technology that will increase our bitumen production
and altering our crude diet to include more low sulphur crudes, including cost competitive crude imports
from the US. Our expertise and technology in this space means we are well placed to meet the challenges
and opportunities of this market-disrupting regulatory change. Once these solutions are implemented,
sulphur dioxide emissions on the coastline and at Auckland and other New Zealand ports will be
significantly lowered.

The Company’s energy performance is also seeing the benefit of our partnership with EECA, New Zealand’s
Energy Efficiency and Conservation Authority, which continues to make inroads into improving our energy
intensity and hence, reducing our carbon emissions.
Looking forward

New Zealand’s energy future will require a mix of conventional fuels as well as fuel alternatives such as
hydrogen and biofuels to meet the demands of a low carbon economy. While New Zealand’s light vehicle
fleet will continue to see the increased penetration of electric vehicles, heavy trucking and aviation remain
difficult to decarbonise and to our knowledge have no viable low carbon alternatives to diesel and jet fuel.
On that basis we are confident that the demand for these essential fuels will continue to be met by refinery
production for the foreseeable future and we are actively investigating greener options for these critical
transport sectors.

Globally, diesel and jet fuel demand are expected to grow significantly in 2019/2020, due to IMO 2020
marine fuel oil sulphur spec changes. At the same time the level of new refining capacity coming on stream
is unable to meet the unprecedented demand growth for both these fuels. Demand growth for both fuels
in Asia is forecast to outstrip supply through to at least 2025.

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 5100 Email: corporate@refiningnz.com www.refiningnz.com
At the local level, ongoing jet fuel demand growth will be driven by increased visitor numbers to Auckland
airport which are forecast to increase to 40 million by 2044 – triple the number in 2013 - and flight
numbers which are expected to hit around 260,000 by 2044 – around double the number five years ago.

The MARPOL regulations are expected to have a beneficial impact on diesel demand as shippers look for a
lower carbon alternative to high sulphur fuel oil. Given the bias of our refining operations with diesel
making up a third of our 2018 production, we expect to see a corresponding uplift in diesel margins.

Gasoline will be impacted by the increased penetration of electric vehicles over the next 30 years. We
anticipate the impact will largely be felt by imports ahead of Marsden Point production which currently
accounts for around half of New Zealand’s demand.

Over the mid to long term, we expect refining margins to be supported by the continued demand for diesel
and jet fuel, with the caveat that refining margins are inherently volatile. This is borne out by the dip in
global refining margins in the first two months of 2019 on the back of gasoline margins as low as negative
USD 2 per barrel followed by the strengthening of the Gasoline margin to almost USD 6 per barrel.

A brighter energy future begins with a profitable refining business

As Simon referred to in his address we have been working through a new business strategy at the heart of
which we are driving for a profitable core refining business: commercially attractive, safe and reliable.

A key contributor to our expected ongoing profitability is the careful management of the refinery’s cost
base.

We’ve already stepped up our game with our maintenance programme trialling new technological solutions
and innovative methods during the 2018 shutdown. These new methods included robotic pipe welding on
the Hydrogen Manufacturing unit which required the welding of 320 new tube replacements, automated
painting of our largest crude tank, and drone inspections of the refinery’s flare structure. Each of these
solutions has improved safety on the job and lifted productivity while also reducing the time to complete
each job and lowering maintenance costs.

Over the next 12 months we will maintain a relentless focus on managing cost within the business. As we
reported last month, costs in January and February were well managed and within budget. This rigour has
continued throughout March as well.

We’ve pushed out the planned maintenance programme so that there is no planned maintenance
shutdown in 2019. At the same time we are developing a long term strategic capital and asset management
plan to reprioritise spend on capital projects, shutdown and maintenance schedules - all of which will
reduce overall maintenance capital costs.

A full long-term plan will be announced later in the year. As a first step, this will outline our capital spend
for the next five years, split out across safety critical projects, margin enhancing projects, projects that are
critical to maintaining ongoing operations, and growth projects that meet our long term strategic goals. The

Refining NZ
Port Marsden Highway, Ruakaka, Northland 0171, Private Bag 9024, Whangarei 0148, New Zealand
Telephone: +64 9 432 5100 Email: corporate@refiningnz.com www.refiningnz.com
objective will be to reduce our asset lifecycle cost through improved efficiency and increased use of
technology.

Over the next 12 months our priorities are to complete our 2019 tank maintenance programme, which will
allow us to get our dredging project underway, finish the refurbishment of our jetties, complete the
construction of a new, on-site sulphur plant, and renew the refinery’s resource consents which are due to
expire in 2022.

The Company’s profit matrix has been reissued for 2019. This reflects expert forecasts that support the
strengthening of global refining margins over the medium term. Included in the profit matrix are our plans
to bring forward minor, on-the-run planned maintenance. Also included are $10m of one-off costs relating
to the early renewal of the refinery’s resource consents, the costs associated with the Inquiry and retail fuel
market study, and seed funding for the development of new business opportunities.


There is an exciting future ahead for the refinery

The Refinery is a critical piece of energy infrastructure that we are confident will continue to have a role to
play in producing a mix of fuels, both conventional and alternatives to meet the demands of New Zealand’s
low carbon economy.

There is the potential to use our deep capability, our extensive engineering and refining expertise built up
over nearly 60 years to produce sustainable fuels.

We are New Zealand’s largest producer of Hydrogen and have spoken publicly about its potential for the
transport and energy sectors while scoping the possibilities for Marsden Point and for New Zealand. We are
discussing the potential of green Hydrogen with the Government and other parties and expect to have
more to say in the coming months.

The fundamentals of our business are strong. By continuing to improve our operational performance and
competitiveness, and through careful management of our cost base, and exploring attractive opportunities
to strengthen our fuels portfolio we believe there is a secure future for our refining business for many years
to come.


ENDS

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REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019

REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019
We are CLEAR about what we need to do
to provide value to our shareholders

REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019
To delight our customers
and sustain our community
and our environment ...
.... for the years ahead

REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019
ANNUAL MEETING
CHAIRMAN
SIMON ALLEN

REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019
GENERAL
BUSINESS
AGENDA
CHAIRMAN’S
ADDRESS
RESOLUTIONS
CEO’S ADDRESS

REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019
6
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 current expectations and assumptions
and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed 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 identifiedby 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 in the Annual Report. This presentation is for information purposes only and does not constitute legal, financial, tax, financial product advice orinvestment 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 your own objectives, financial situation 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 prescribedby 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, 12 April 2019.

REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019
SIMON ALLEN
CHAIRMAN’S ADDRESS

REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019
8
2018 YEAR IN REVIEW
Company is well positioned for the future
PLANNED SHUTDOWN
COMPLETE
First total refinery shutdown in 14 years
Complex engineering
Hydrogen manufacturing unit refurbished
OPERATIONAL
PERFORMANCE
NPAT $29.6 million
Record refinery throughput in 2H19
Record throughput on the pipeline
HEALTH, SAFETY AND
ENVIRONMENT
Strong finish for personal safety
Safety case submitted
Continued reduction in CO
2
intensity
STRATEGY REFRESH
Strategy day: June 2019
GOVERNMENT INQUIRIES
One off costs

REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019
Our new realistic strategy is to:
-retain profitable refining at the core
-harness natural resources
-leverage existing capabilities and assets
-confirm our role in NZ’s transition to a low carbon future
-remain committed to commercial return and shareholder
value
Strategic update in June
STRATEGIC
DIRECTION

REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019
10
2018 YEAR IN REVIEW
Company is well positioned for the future
CAPITAL STRUCTURE
$75million subordinated notes issue
DiversifiesRefining NZ funding sources
DIVIDENDS
Total dividend 7.5 cents per share
Reflects impact of planned
maintenance shutdown on
performance
In line with dividendpolicy
BOARD CHANGES
November 2018
Independent Director James Miller
appointed
February2019
Independent Director Mark Tume
resigns
MANAGEMENTCHANGE
August2018
CEOMike Fuge appointed

REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019
Mike Fuge
CEO
ANNUAL MEETING
CHIEF EXECUTIVE OFFICER
MIKE FUGE

REFINING NZ
ANNUAL GENERAL MEETING | 12 APRIL 2019
SHUTDOWN 2018
An enormous logistical undertaking successfully completed
Major re-life of key units
Complex brownfield
retrofits
Extended economic life:
-Hydrogen
Manufacturing Unit
-High Vacuum Unit
1,700 Jobs finished
to a high quality
Positions us well for
a low carbon future

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ANNUAL GENERAL MEETING | 12 APRIL 2019
TAKING A STAND FOR SAFETY –E Tū Tangata
-Safety culture initiative launched Jan 2019
-Engaging our people about best practice
workplace safety

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ANNUAL GENERAL MEETING | 12 APRIL 2019
14
JET FUEL IMPORT
FACILITY
2017/2018 Completed Projects
First tank conversion,import
line, filtering and dosing
2019/2020 Projects
Second tank conversion
DELIVERING VALUE
PIPELINE CAPACITY
Stages I and II delivered
Trialling drag reducing agent
(DRA) in Q3
DRA could increase pipeline
capacity by around 15%
PIPELINERESILIENCE
LIDAR
Mobile truck loading skids

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ANNUAL GENERAL MEETING | 12 APRIL 2019
15
DREDGING CONSENTED
A major milestone for this margin enhancing initiative
APPEAL TO THE ENVIRONMENT COURT
RESOLVED
Conditions agreed by all parties
12 months of baseline water quality monitoring
Reviewing phasing of tank maintenance to
accelerate dredging
Finalinvestment decision to be taken in 2019
Estimated cost $60-$70 million
Expected GRM uplift USc/bbl30+
PRODUCT / CRUDE COST
FREIGHT
PRODUCT
VALUATION
CRUDE OIL
CURRENT
VALUATION
CRUDE OIL
POST
DREDGING
VALUATION
GRM
increase
Current
GRM

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ANNUAL GENERAL MEETING | 12 APRIL 2019
16
Produce
0.5% sulphur
marine fuel oil
Increase bitumen
productionby
debottlenecking
existing plant
Expand our
crude diet
Improve logistics
of HighSulphur Fuel Oil
exports
MARPOL –OUR STRATEGIES INCLUDE

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ANNUAL GENERAL MEETING | 12 APRIL 2019
LOOKING AHEAD
Asian demand growth expected to outstrip capacity
additions (at least until 2025)
Global weakness in gasoline prices likely to continue in H1
2019 (caveat Chinese exports)
Jet fuel and diesel demand expected to grow. Supports
long term refining margins
RNZ expects margin benefit from MARPOL market
disruption
Source:

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ANNUAL GENERAL MEETING | 12 APRIL 2019
18
(34)
326
(46)
342
(56)
356
(65)
369
4
273
(10)
293
(23)
311
(34)
326
43
220
25
244
10
265
(3)
283
81
169
61
195
43
220
27
241
120
131
96
154
76
174
58
198
158
92
131
119
109
142
89
161
4.00
GRM
US$
5.00
6.00
7.00
8.00
9.00
US$ EXCHANGE RATE
0.600.650.700.75
44Production, Mbbl
101Non Processing Fee Revenue, $m
103Depreciation, $m
PLAN TO IMPROVE SHAREHOLDER RETURNS
Continued excellent
operational performance
Action asset management
-Cost control
-Aggregated programmes
-Productivity lift
-New tech & innovation
Growth projects
-Dredging
-Low sulphur fuel oil
-Bitumen
Diversified earningsvia new
boundaries:
-Green hydrogen
-Solar
Profit Matrix reissued for 2019

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ANNUAL GENERAL MEETING | 12 APRIL 2019
ANNUAL MEETING
CHAIRMAN
SIMON ALLEN

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ANNUAL GENERAL MEETING | 12 APRIL 2019
RESOLUTIONS
RESOLUTIONS
ANNUAL MEETING

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ANNUAL GENERAL MEETING | 12 APRIL 2019
APPOINTMENT
OF AUDITOR
RESOLUTION
APPOINTMENT
OF AUDITOR

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ANNUAL GENERAL MEETING | 12 APRIL 2019
“That Directors be authorised to fix the fees and expenses of PricewaterhouseCoopers as
auditors to the Company for the financial year ending 31 December 2019.”
RESOLUTION 1
FORAGAINSTDISCRETIONARYTOTALABSTAIN
Proxies and
Postal votes
84,094,2432,162,855134,419,475220,676,573336,508
RESOLUTION 1

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ANNUAL GENERAL MEETING | 12 APRIL 2019
RE-ELECTION/
ELECTION
OF DIRECTORS
RESOLUTION
RE-ELECTION/
ELECTION
OF DIRECTORS
RESOLUTION

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ANNUAL GENERAL MEETING | 12 APRIL 2019
“That Mr R.Cavallo, 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
85,220,698901,789134,540,072220,662,559350,522
RESOLUTION 2(a)

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ANNUAL GENERAL MEETING | 12 APRIL 2019
“That Mr P.A.Zealand, 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
84,856,2081,273,413134,528,905220,658,526354,555
RESOLUTION 2(b)

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ANNUAL GENERAL MEETING | 12 APRIL 2019
“That Mr J.B.Miller be elected as a Director of the Company.”
RESOLUTION 2(c)
FORAGAINSTDISCRETIONARYTOTALABSTAIN
Proxies and
Postal votes
84,848,0031,254,413134,549,305220,651,721361,360
RESOLUTION 2(c)

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ANNUAL GENERAL MEETING | 12 APRIL 2019
RESOLUTION
CHANGE TO THE
CONSTITUTION

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ANNUAL GENERAL MEETING | 12 APRIL 2019
“That the existing Constitution of the Company be revoked and a new Constitution in the form
tabled at the meeting and signed by the Chairperson for the purposes of identification be
adopted with effect from 1 July 2019 or such earlier date notified through NZX by the
Company.”
RESOLUTION 3
FORAGAINSTDISCRETIONARYTOTALABSTAIN
85,992,97370,953134,593,801220,657,727355,354
RESOLUTION 3

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ANNUAL GENERAL MEETING | 12 APRIL 2019
GENERAL
BUSINESS
GENERAL
BUSINESS

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ANNUAL GENERAL MEETING | 12 APRIL 2019
30
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 current expectations and assumptions
and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed 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 identifiedby 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 in the Annual Report. This presentation is for information purposes only and does not constitute legal, financial, tax, financial product advice orinvestment 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 your own objectives, financial situation 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 prescribedby 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, 12 April 2019.

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ANNUAL GENERAL MEETING | 12 APRIL 2019