2019 Full Year Results

Distribution Notice


Section 1: Issuer information
Name of issuer Napier Port Holdings Limited
Financial product name/description Ordinary Shares
NZX ticker code NPH
ISIN (If unknown, check on NZX
website)
NZNPHE000552
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year Special X
DRP applies No
Record date 02/12/2019
Ex-Date (one business day before the
Record Date)
29/11/2019
Payment date (and allotment date for
DRP)
20/12/2019
Total monies associated with the
distribution
$5,000,000
(200,000,000 ordinary shares @ 2.5 cents per share)
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.03472222
Total cash distribution $0.02500000
Excluded amount N/A – not a listed PIE
Supplementary distribution amount $0.00441200
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
100%
Imputation tax credits per financial
product
$0.00972222
Resident Withholding Tax per
financial product
$0.00173611

Section 4: Distribution re-investment plan – Not Applicable
DRP % discount (if any)

Start date and end date for
determining market price for DRP

Date strike price to be announced (if
not available at this time)

Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product

Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Kristen Lie, Chief Financial Officer
Contact person for this
announcement
Erin Harford-Wright, Senior Communications Advisor
Contact phone number DD: 06 833 4643 M: 027 870 4884
Contact email address erinh@napierport.co.nz
Date of release through MAP

19/11/2019

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Napier Port Holdings Limited
2019 Trade Volume Data
The below Trade Volume Data provides a summary of actual 2019 financial results
compared to the 2019 prospective financial information (PFI) contained in the Product
Disclosure Statement (PDS) and the document entitled "Napier Port’s Prospective Financial
Information, a reconciliation of non-NZ GAAP to NZ GAAP information and supplementary
financial information" (Supplementary Financial Information) dated 15 July 2019 and
published in connection with the initial public offer of Napier Port Holdings Limited (both of
which are available atwww.business.govt.nz/disclose (OFR126790)). Actual FY2019 data
has been prepared on a basis consistent with that described in PDS and Supplementary
Financial Information, except as where stated.
Napier Port Holdings Limited notes that in the preparation of this data it has reclassified
some export trade type sub-categories to more accurately reflect the container types being
used. The reclassifications, which differ to that presented in the PFI, are detailed in the
below container services trade volume data. The reclassifications have no impact on the PFI
revenue forecasts provided by Napier Port Holdings Limited in the Supplementary Financial
Information.
1.1 Container Services
Container Services
TEU (000s)
FY2019
Actual
FY2019
Forecast
FY2018
Actual
FY2017
Actual
FY2016
Actual
Exports
Wood pulp & timber 52 53 53 51 48
Canned food / other food 10 14 11 18 15
Other dry 14 13 14 15 12
Total dry 76 79 78 84 75
Apples & pears 26 24 24 22 23
Meat 16 13 15 17 11
Fresh & other chilled produce 12 12 10 10 11
Total reefer 54 49 49 50 45
Empty 4 4 4 8 8
Total exports 134 132 130 142 128
Imports
Dry 30 28 29 47 23
Reefer 4 3 4 2 3
Empty 99 97 96 91 97
Total imports 133 128 129 140 124
Other container movements
(‘DLRs’)
4 8 7 7 6
Total Container Services
volume
271 269 266 288 257

Vessels
Container ship calls 303 314 329 372 358
Reclassifications to export container TEU volumes have been incorporated in the above table as follows:
Export TEU Reclassifications
TEU (000s)
FY2020
Forecast
FY2019
Forecast
FY2018
Actual
FY2017
Actual
FY2016
Actual
Category changes
From Fresh & Other Chilled Produce to
Other Dry
22 3 32
From Meat to Other Dry
11 1 11
From Fresh & Other Chilled Produce to
Canned Food/Other Food
22 2 21
Total reefer to dry
^ 66 5 6 5
^Rounded to nearest thousand TEU
1.2 Bulk Cargo
Bulk Cargo
Kilotonnes
FY2019
Actual
FY2019
Forecast
FY2018
Actual
FY2017
Actual
FY2016
Actual
Log exports 2,581 2,500 2,208 1,630 1,208
Other exports 167 223 177 241 262
Imports 656 657 686 634 555
Total Bulk Cargo volume 3,404 3,380 3,071 2,506 2,025
Vessels
Charter vessel calls 314 298 298 262 240
1.3 Cruise Services
Cruise Services
FY2019
Actual
FY2019
Forecast
FY2018
Actual
FY2017
Actual
FY2016
Actual
Vessels
Cruise vessel calls 7070 575445

---

Napier Port Holdings Limited
Supplemental selected financial information (unaudited)
The below supplemental financial information provides a summary of actual 2019 financial
results compared to the 2019 prospective financial information (PFI) contained in the Product
Disclosure Statement (PDS) and the document entitled "Napier Port’s Prospective Financial
Information, a reconciliation of non-NZ GAAP to NZ GAAP information and supplementary
financial information" (Supplementary Financial Information) dated 15 July 2019 and
published in connection with the initial public offer of Napier Port Holdings Limited (and
available on the Offer Register atwww.business.govt.nz/disclose (OFR126790)). Actual
FY2019 data has been prepared on a basis consistent with that described in PDS and
Supplementary Financial Informationexcept where stated.
The historical financial information (FY2016-FY2018) is extracted from Port of Napier
Limited's audited financial statements or the Supplementary Financial Information.
Capitalised terms used but not defined in this document have the meanings given to them in
the PDS and the Supplementary Financial Information.
Notes:
1.
The selected financial information (excluding any financial information in the selected financial information table that is
identified as being pro forma financial information) is extracted from audited financial statements of Port of Napier for the
FY2016, FY2017, and FY2018 accounting periods. The prospective financial information for FY2019F is extracted from the
Supplementary Financial Information for the Group (and not the financial statements of Port of Napier). Some line items in
the selected financial information include adjustments applied by Napier Port (denoted ‘pro forma’). For an explanation of
pro forma adjustments, please refer to Section 7.9 (Reconciliation of Pro forma EBITDA to Statutory NPAT) and Part B of
the Supplementary Financial Information.
2.
Revenue relates to operating income as disclosed for the Historical Periods in the audited Financial Statements for Napier
Port.
3.
Underlying reported EBITDA is a non-NZ GAAP measure that includes pro forma adjustments. This measure includes
adjustments also used in Pro forma EBITDA but excludes pro forma costs not yet incurred as shown in the reconciliation of
Pro forma EBITDA to Statutory NPAT in section 1.2 below.
4.
Pro forma EBITDA is a non-NZ GAAP measure that includes pro forma adjustments as described in Section 7.9
(Reconciliation of Pro forma EBITDA to Statutory NPAT) of the PDS.
5.
Pro forma net profit after tax is a non-NZ GAAP measure. This measure reflects the pro forma adjustments reflected in pro
forma EBITDA, the impairment of the investment in the Longburn Intermodal Freight Hub joint venture and the overlay of
Napier Port’s capital structure following completion of the Offer as if it had been in place since 1 October 2018. The pro
forma operating tax expense has been adjusted to reflect the tax implications of the pro forma adjustments. A reconciliation
to statutory net profit after tax is included in section 1.4 below.
Selected financial information
(1)
NZ$000FY2016FY2017FY2018FY2019FY2019F
Fina ncial period
12 months
ending
30 Sept 16
12 months
ending
30 Sept 17
12 months
ending
30 Sept 18
12 months
ending
30 Sept 19
12 months
ending
30 Sept 19
Fina ncial performance:
Revenue
(2)
72,65386,67991,74999,61697,358
Underlying reported EBITDA
(3)
29,40536,91838,77741,79741,151
Pro forma EBITDA
(4)
27,78435,29737,15640,50039,665
Net profit after tax
11,47116,70617,5766,8485,594
Pro forma net profit after tax
(5)
19,84119,217
Balance sheet a nd cash flow items:
Dividends paid
7,87610,70010,00053,95753,958
Total assets
302,580329,083331,959371,116370,781
Cash and cash equivalents
459231-31,22420,069
Total liabilities
114,356123,978119,54735,63535,493
Total debt
79,70083,57180,599--
Net cash flows from operating activities
23,12525,18628,36429,33624,213
Pro forma net cash flows from operating activities
(6)
33,56130,640

6.
Pro forma cash flows from operating activities is a non-NZ GAAP measure that comprises net cash flows from operating
activities adjusted to remove offer costs in FY2019F and overlays Napier Port’s capital structure following completion of the
Offer as if it had been in place since 1 October 2018.
1.1 Description of Pro forma adjustments
In determining the use of pro forma adjustments, the Directors have considered only
those items that they believe are required to ensure consistency and comparability of
the financial information over the Historical Periods and the Prospective Periods.
The pro forma adjustments that Napier Port considers are appropriate are explained
below, and their nature are described in more detail in Part C of the Supplementary
Financial Information:
(i) removal of the one-off transaction costs relating to the Offer;
(ii) removal of other (income) expenses as these items relate to non-core operating
activities;
(iii) removal of share of the loss of equity accounted investee as the investment has
been fully written down to zero;
(iv) removal of the impairment of joint venture as it was a one-off event;
(v) adding an estimate of the incremental costs that will be incurred by Napier Port
as a publicly listed company. The FY2019 actual represents the FY2019
forecast less costs actually incurred in FY2019; and
(vi) removal of the impact of the pre-Offer debt capital in relation to FY2019F and
applying the post-Offer capital structure as if it were in place for all of FY2019F.
1.2 Reconciliation of Pro forma EBITDA to Statutory NPAT

1.3 Reconciliation of Underlying EBITDA to Result from Operating Activities
reported in the statutory Income Statement
1.4 Reconciliation of Pro forma NPAT
1.5 Reconciliation of Pro forma net cash flows from operating activities
Reconciliation of Underlying EBITDA to Result from Operating Activities reported in the statutory income statement
NZ$000FY2016FY2017FY2018FY2019FY2019F
Result from operating activities30,42337,35438,91141,98733,961
Adjustments:
Offer costs ----7,339
Impairments of property, plant and equipment(1,018)(436)(134)(190)(150)
Underlying reported EBITDA29,40536,91838,77741,79741,150
Reconciliation of Pro forma NPAT
NZ$000FY2016FY2017FY2018FY2019FY2019F
Statutory net profit a fter tax6,8485,594
Pro forma adjustments:
Offer costs 6,4047,339
Incremental listed company costs (1,297)(1,485)
Impairment of joint venture 852809
Listed company capital structure9,9409,769
Tax impact of pro forma adjustments(2,907)(2,810)
Pro forma NPAT19,84119,217
Reconciliation of Pro forma net cash flows from operating activities
NZ$000FY2016FY2017FY2018FY2019FY2019F
Statutory net cash flows from operating a ctivities29,33624,213
Pro forma adjustments
Offer costs 5,6437,339
Incremental listed company costs (1,393)(1,310)
Listed company capital structure2,8823,207
Tax impact of pro forma adjustments(2,907)(2,810)
Pro forma net cash flows from operating activities33,56130,640

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)

Results for announcement to the market
Name of issuer Napier Port Holdings Limited
Reporting Period 12 months to 30 September 2019
Previous Reporting Period 12 months to 30 September 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$99,616 8.6%
Total Revenue $99,616 8.6%
Net profit/(loss) from
continuing operations
$6,848 (61.0%)
Total net profit/(loss) $6,848 (61.0%)
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.02500000
Imputed amount per Quoted
Equity Security
$0.00972222
Record Date 02 December 2019
Dividend Payment Date 20 December 2019
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.67 N/A
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Napier Port Holdings Limited was listed on the NZX on 19
August 2019. The current year’s results include the expensing
of IPO and related costs.
Authority for this announcement
Name of person authorised
to make this announcement
Kristen Lie, Chief Financial Officer
Contact person for this
announcement
Erin Harford-Wright, Senior Communications Advisor
Contact phone number DD: 06 833 4643 M: 027 870 4884
Contact email address erinh@napierport.co.nz
Date of release through MAP 19 November 2019

Audited financial statements accompany this announcement.

---

NZX AND MEDIA RELEASE
19 November 2019
FINANCIAL RESULTS FOR THE YEAR TO 30 SEPTEMBER 2019
NAPIER PORT FY2019 SETS PLATFORM FOR GROWTH
HIGHLIGHTS
·FY2019 results ahead of Initial Public Offering (IPO) forecast
oRevenue 2.3% above forecast
oPro forma EBITDA
1
2.1% above forecast
oPro forma NPAT
1
3.2% above forecast
·Container and bulk cargo volumes ahead of forecast
oContainer volume up 1.9% on prior year to 271,000 TEU
oBulk cargo volumes up 10.9% on prior year to 3.4m tonnes
·Revenue of $99.6 million, up 8.6% on prior year
·Results from operating activities
2
, which excludes one-off items, rose by $3.1m or 7.9% from
$38.9 million in the prior year to $42.0 million
·Pro forma EBITDA of $40.5 million, up 9.0% on the prior year
·Final dividend of 2.5 cents per share declared
Napier Port (NZX.NPH) today announces its results for the year ended 30 September 2019 with
revenue and earnings ahead of the forecast prepared for the Initial Public Offering (IPO), as growth in
Hawke’s Bay exports lifted both container and bulk cargo volumes.
Revenue for FY2019 increased 8.6% from $91.7 million in the prior year to $99.6 million, and ahead of
the $97.4 million forecast when Napier Port launched its IPO in July. Strong revenue growth has been
experienced across all three service areas of Container Services, Bulk Cargo and Cruise Services.
Results from operating activities, which excludes one-off items such as the costs of the IPO and fair
value gains, rose by $3.1m or 7.9% from $38.9 million in the prior year to $42.0 million.
Pro forma EBITDA, including an estimate of a full year of incremental listed company costs, increased
9.0% from $37.2 million in the prior year to $40.5 million.
Pro forma NPAT of $19.8 million was 3.2% higher than forecast. The reported statutory lower net
profit result reflects the costs incurred during the IPO and the associated capital restructuring,
including the closing out of the interest swap hedging portfolio. It also reflects higher expenses as
Napier Port invests for growth and builds operational resilience.
1
Pro forma EBITDA and Pro forma NPAT are non-NZ GAAP measures referred to in the prospective financial
information contained in the IPO Product Disclosure Statement and Supplementary Financial Information.
Refer to the Supplemental Selected Financial Information for further information.
2
Results from operating activities is a non-NZ GAAP measure and represents core underlying operating
earnings. It excludes certain income and expenses. Refer to note 25 of the statutory financial statements and
the Supplemental Selected Financial Information for further information.

Chairman Alasdair MacLeod says Napier Port has had a transformative year, through listing on the
New Zealand Stock Exchange, recapitalising the balance sheet for capacity expansion and delivering
results demonstrating strong volume growth.
“We achieved these results while successfully completing our capital raising and sharemarket listing.
This move has seen us welcome more than 9,000 new investors to the Napier Port share register,
including 97% of our employees, and will allow us to extend our near 150-year record of connecting
Hawke’s Bay and the surrounding regions with the people and the markets of the world.”
“We are now well-placed to commence work on the centrepiece of our strategic investment
programme, the new multi-purpose wharf, ‘6 Wharf’ early next year. 6 Wharf will give us the capacity
we need to grow with the region and deliver our customers the efficient and networked supply chain
infrastructure they have come to expect from us,” Mr MacLeod says.
Napier Port Chief Executive Todd Dawson says in Napier Port’s first period as a listed company, the
company has delivered a strong financial performance with cargo volumes and revenue up on the
forecasts set at the time of the IPO.
“Another record apple crop drove an 8.6% increase in apple container volumes, and 1.9% for all
containers, on last year, with the pipfruit industry per hectare production well above the global
average and continuing to intensify. Meanwhile, despite a correction in export log prices in the last
quarter of the year, a record 2.6 million tonnes of logs were handled in the 2019 financial year; which
represents a doubling of log volume over the last three years,” Mr Dawson says.
“As forecast, a strong cruise season saw 22.8% growth in the number of visits in the 2018/2019 season,
with 70 ship calls. This is a major contributor to the regional economy, with Statistics New Zealand
estimating that cruise passengers spent $28.4 million in Hawke’s Bay in the year to June 2019.”
“Container services revenue rose 5.5% from $58.0 million to $61.2 million, while bulk cargo revenue
increased 11.4% from $29.0 million to $32.3 million. Cruise revenue increased from $2.6 million last
year to $3.7 million.”
“In addition to trade volume growth, average revenue per TEU increased by 3.4% in the year from
$218 to $226 per TEU, compared to the forecast of $221 per TEU. This includes tariff increases, income
from additional container services, and charges introduced to recover the costs of infrastructure
investments made to extend capacity and support growth.”
“Other container services – including our Port Pack and off-port depot services – performed ahead of
forecast, albeit down on the prior year due to the loss of a significant depot customer early in the year.
Our team provided exceptional container servicing turnarounds, assisting our container depot
customers to gain market share during the peak export season.”
Bulk cargo revenue growth of 11.4% was driven by the 16.9% year-on-year increase in log export
volumes.
“Operating expenses as a percentage of revenue increased during the year, from 57.6% to 57.9%. This
reflects a boost in staff numbers to build resilience and support growth, however these were higher
than forecast due to the higher cargo volume and higher employee and site entrance safety
improvement costs.”
CAPITAL INVESTMENT AND BALANCE SHEET
The IPO has recapitalised Napier Port’s balance sheet with $110 million of new proceeds raised used
to retire Napier Port’s debt and allow it to fund its strategic investment plan, including 6 Wharf.

In the 2019 financial year, Napier Port invested $17.6 million in capital projects, including additional
refrigerated container capacity and deposit payments on a third tug, Kaweka, which arrived earlier
this month. It also commenced development of its depot services relocation to the off-port container
hub in Thames Street, Napier, and further invested in the detailed design and pre-construction phase
for the 6 Wharf development. Napier Port also invested in replacement paving works, wharf fender
replacements, and container handling equipment.
Napier Port ended the financial year with cash and cash equivalents of $31.2 million, higher than
estimated at the time of the IPO due to spend on a number of capital investment projects being
deferred into the 2020 financial year and working capital gains.
“Supported by these reserves and the new debt facilities we have secured, we believe Napier Port is
well-positioned to execute our development plans. In line with our forecast, the board has declared a
dividend of 2.5 cents per share,” Mr MacLeod says.
The dividend will be fully imputed. The record date for dividend entitlement is 2 December 2019 and
the payment date is scheduled for 20 December 2019.
OUTLOOK
Mr MacLeod says Napier Port’s focus for the new financial year continues to be building a thriving
region through connections with its customers, its people and its community. These efforts will include
the development of a sustainability strategy to respond to global challenges like climate change,
equality and ocean conservation.
“Napier Port remains confident we can deliver on the forecasts we have made for the 2020 financial
year. As we set out at the time of the IPO, we expect our financial results to be underpinned by
container volume growth, log export volumes in line with the results we achieved in the 2019 financial
year, and continued growth in cruise ship visits,” Mr MacLeod says.
Further detail on Napier Port’s financial performance is included in the Annual Report published today,
on the Napier Port websitewww.napierport.co.nz and on the NZX company announcements reporting
platform (www.nzx.com/companies/NPH/announcements).
ENDS
For more information:
Erin Harford-Wright
Senior Communications Advisor
DD: 06 833 4643 M: 027 870 4884
erinh@napierport.co.nz
About Napier Port
Napier Port is New Zealand’s fourth largest port by container volume. We are the main gateway for
Hawke’s Bay exports and operate a long-term regional infrastructure asset that supports the regional
economy. Our strategic purpose is to collaborate with the people and organisations that have a stake
in helping our region grow. View Napier Port’s investor centre:www.napierport.co.nz/investor-
centre/

Conference Call
Napier Port will hold a conference at 11.00am (NZT) today. Those who have not registered for the
call can dial the following numbers and quote the Conference ID number to the operator who will
connect you to the call. However, please allow time for registration for the call with the operator.
Conference ID: 10002510
Conference call numbers:
New Zealand 0800 453 055 Australia 1 800 870 643
Hong Kong 800 966 806 Canada/US 1 855 881 1339
China 4001 200 659 Singapore 800 1012 785
United Kingdom 0800 051 8245 Japan 005 3116 1281

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BUILDING FOR
THE FUTURE
ANNUAL REPORT – TE PŪRONGOĀ-TAU / 2019

CONTENTS
HIGHLIGHTS 2
CHAIRMAN’S REPORT 4
CHIEF EXECUTIVE’S REPORT 6
CHIEF FINANCIAL OFFICER’S
MANAGEMENT DISCUSSION AND ANALYSIS 9
SETTING OUR COURSE 12
STRATEGIC CHANGE 14
FUNDING
OUR FUTURE 17
CUSTOMER CONNECTION 19
NETWORKED INFRASTRUCTURE 23
BUILDING FOR THE FUTURE 27
HARNESSING DATA AND TECHNOLOGY 29
COLLABORATIVE PARTNERSHIPS 33
CULTURE OF CARE 37
OUR PEOPLE 41
ENVIRONMENTAL, SOCIAL AND GOVERNANCE 43
BOARD OF DIRECTORS 46
SENIOR MANAGEMENT 48
CORPORATE GOVERNANCE STATEMENT 52
OTHER DISCLOSURES 60
CONSOLIDATED INCOME STATEMENT 65
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME 66
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY 67
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION 68
CONSOLIDATED STATEMENT
OF CASH FLOWS 69
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS 71
TRADE AND FINANCIAL FIVE YEAR SUMMARY 98
INDEPENDENT AUDITOR’S REPORT 99
DIRECTORY 103
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 1

HIGHLIGHTS
687
SHIP
CALLS
2.6
MILLION
TONNES OF
LOG EXPORTS
–
U P 17
%
3.4
MILLION
TONNES OF BULK
CARGO HANDLED
–
UP 10.9
%
50
THOUSAND
TEU HANDLED
THROUGH PORT PACK
–
DOWN 2
%
271
THOUSAND
TEU CONTAINERS
HANDLED
–
UP 2
%
5.5
MILLION
TONNES OF
CARGO HANDLED
–
UP 7
%
2 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

HIGHLIGHTS
9,000
+

SHAREHOLDERS
$
5
MILLION
DIVIDEND
–
2.5 CENTS
PER SHARE
$
99
.6

MILLION
REVENUE
–
UP 8.6
%
$
28
MILLION
SPENT BY
115,000 CRUISE
PASSENGERS
IN HAWKE’S BAY*
* Statistics New Zealand
70
CRUISE
SHIP CALLS
–
UP 22.8
%
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 3

CHAIRMAN’S
REPORT
MĀ WHERO MĀ PANGO KA OTI AI TE MAHI
With red and black the work will be complete – referring to traditional kowhaiwhai (weaving inside
of meeting houses) which demonstrates that if everyone does their part, the work will be completed.
Tēnā koutou e ngā kaiwhakarato moni – greetings investors,
I want to begin our report on the 2019 financial year by
welcoming the more than 9,000 shareholders who own
a stake in Napier Port following our initial public offering
(IPO) and the listing of our shares on the New Zealand
Stock Exchange (NZX).
You have not only invested in a major regional
infrastructure asset, you have also bought into the passion,
talent and experience of a highly committed team. Perhaps
more importantly, you have expressed your confidence
in the future of Hawke’s Bay and the wider region.
As a board, we share your conviction.
For almost 150 years, Napier Port has been connecting
Hawke’s Bay and its surrounding regions with the people
and markets of the world. The IPO, capital raising
and sharemarket listing allows us to extend that record
and continue to deliver on our core purpose to build
a thriving region.
The IPO was the culmination of a two-year process
that raised $234 million. Of this, $110 million has been
retained by Napier Port and has been used to repay
debt and provide cash and debt facilities to fund –
among other things – the new multi-purpose wharf,
‘6 Wharf’, at the centre of our development plans.
The new wharf, on which construction will start early
next year, will give us the capacity we need to grow with
the region and deliver our customers the efficient and
networked supply chain infrastructure they have come
to expect from Napier Port.
As we began down the road towards the IPO, Napier
Port and our then ultimate owner, Hawke’s Bay Regional
Council (HBRC), identified the importance of bringing
our community along with the project as a core priority.
Together we engaged extensively with the region
over the 6 Wharf resource consent application.
We supported HBRC’s consultation on the capital
structure of Napier Port, its decision to proceed with
the IPO and its determination to give priority in the offer
to locals, employees and local iwi.
We commend HBRC for its courage, leadership
and commitment to making the capital raising a reality.
It has strengthened our direct links and alignment with
our community and given us the financial capacity
to invest in a way that will also benefit the broader region.
FINANCIAL RESULTS
The results for the 2019 financial year show we
have made a good start as a publicly listed company.
Revenue for the year to 30 September 2019 increased
8.6% from $91.7 million to $99.6 million in the same
period last year and ahead of the $97.4 million we
forecast when we launched the IPO.
Napier Port has benefited from continued growth
in container volumes, ahead of forecast, due in part
to a record export season for apples and increased meat
exports. Bulk cargo volumes, including log exports also
ahead of forecast, have surpassed previous records.
Net profit after tax fell from $17.6 million in the same
period a year ago to $6.8 million, but is ahead of the
$5.6 million we forecast. The lower net profit result
compared to last year largely reflects the costs incurred
during the IPO and our capital restructuring. It also
reflects higher expenses as we invest for growth
and build our operational resilience.
BALANCE SHEET AND DIVIDEND
The IPO has given us a strong balance sheet. Following
the debt repayment, we ended the year with cash and
cash equivalents of $31.2 million. This balance is higher
than our forecast of $20.1 million due to spend on
a number of capital investment projects being deferred
to the 2020 financial year.
Supported by these reserves and the new debt facilities
we have secured, we believe Napier Port is well-
positioned to execute our development plans. In line
with our forecast, the board has declared a dividend
of 2.5 cents per share. The record date for dividend
entitlement is 2 December 2019 and the payment date
is scheduled for 20 December 2019.
4 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

A CULTURE OF CARE
The past year has not been an easy one for our team.
The challenges of pressing ahead with the wharf
development, the capital raising and migrating
to a listed company environment have placed extra
demands on every member of the team.
While we continue to have an unwavering commitment
to health and safety, we acknowledge that this year
the sobering reality is that we have also experienced
a number of incidents and near misses, including two
serious harm injuries. The way our team has handled these
challenges is a testament to our people and what we call
our ‘Culture of Care’.
We have been able to strengthen this commitment with
the Fair Share plan, which was launched with the IPO
and gave our people the opportunity to buy shares in
Napier Port. Now 97% of Napier Port people have a direct
stake in the company. It is a figure that is no doubt the
envy of New Zealand businesses, not least because
it ensures almost the entire team is directly attuned
to what drives value for shareholders.
Todd, the senior management team, and the whole
Napier Port team have put in a mammoth effort and have
delivered an excellent result.
On behalf of the board I thank all our people for their
contribution during the year and their ongoing commitment
to the success of the company.
OUTLOOK
For the new financial year, our focus remains the same:
to continue to build a thriving region through connections
with our customers, our people and our community.
Notably, next year these efforts will include the
development of a sustainability strategy to respond
to global challenges like climate change, diversity
and equality, and ocean conservation.
Napier Port remains confident we can deliver on the
forecasts we have made for the 2020 financial year.
As we set out at the time of the IPO, we expect our
financial results to be underpinned by container volume
growth, log export volumes in line with the results we
achieved in the 2019 financial year and continued growth
in cruise ship visits.
We look forward to providing a further update to
shareholders at our annual meeting in December.
Ngā mihi nui,
ALASDAIR MACLEOD
Chairman
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 5

CHIEF
EXECUTIVE’S
REPORT
Tēnā koutou. Two years ago, I joined Napier Port as CEO,
and during this time we’ve made some fundamental steps
towards building a strong platform for the future of our
company and our region.
A PLATFORM FOR THE FUTURE
On behalf of our Napier Port team, I’d like to thank
our Chairman Alasdair MacLeod, our board and our
major shareholder, Hawke’s Bay Regional Council, for
demonstrating bold leadership and their confidence in
Napier Port over the last year. Together with our new
shareholders, we have set the foundations for our regional
economy to grow for many generations to come.
We worked extensively with our community and invested
in research into our marine environment and our regional
economy. In November 2018, we received our resource
consent for the construction of 6 Wharf – achieved
without any appeal, which is unheard of for port
infrastructure projects of this scale in New Zealand.
Following this, Council consulted Hawke’s Bay people on
how they wanted Napier Port to support funding our future
– receiving a mandate to float 45% of the company on the
NZX. In August, we listed Napier Port and successfully
attracted the investment required to build 6 Wharf
and meet the needs of our region.
Napier Port has served the Hawke’s Bay region for nearly
150 years. Changing the ownership structure of the port
is an intergenerational decision, and took political fortitude
and sound commercial judgement. However, it is just
a small step along the way in continuing to create a long
and exciting future story for Napier Port.
At Napier Port, our purpose has substance for our team
and gets to the heart of what we all want to achieve:
‘Together, we build a thriving region by connecting
our customers, people and community to the world’.
This drives everything we do at Napier Port and sets
the scene for our strategy with a robust and clear direction
for the next ten years.
FINANCIAL PERFORMANCE
In our first period as a listed company, we have delivered a
solid financial performance with cargo volumes and revenue
slightly up on the forecasts set at the time of the IPO.
Another record apple crop drove an 8.6% increase
in containerised apple exports, and a 1.9% in overall
containerised cargo, with the pipfruit industry per hectare
production well above the global average and continuing
to intensify. Meanwhile, despite a correction in export log
prices in the last quarter of the year, a record 2.6 million
tonnes of logs were handled in the 2019 financial year,
which represents a doubling of log volume over the last
three years.
As forecast, a strong cruise season saw 22.8% growth
in the number of visits in the 2018/2019 season, with
70 ship calls. This is a major contributor to the regional
economy with Statistics New Zealand estimating that
cruise passengers spent $28.4 million in Hawke’s Bay
in the year to June 2019.
Container services’ revenue rose 5.5% from $58.0 million
to $61.2 million, while bulk cargo revenue increased
11.4% from $29.0 million to $32.3 million. Cruise revenue
increased from $2.6 million last year to $3.7 million.
In addition to trade volume growth, average revenue per
TEU increased by 3.4% in the year from $218 per TEU
to $226 per TEU, compared to the forecast of $221 per
TEU. This includes tariff increases and charges introduced
to recover the costs of infrastructure investments made
to extend capacity and support growth.
In addition, other container services – including Port
Pack and off-port depot services – performed ahead
of forecast, albeit down on the prior year due to the
loss of a significant depot customer early in the year.
Our team provided exceptional container servicing
turnarounds, assisting our container depot customers
to gain market share during the peak export season.
6 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

Meanwhile, growth in bulk cargo revenue was driven
by a 10.9% increase in volume. Average revenue per tonne
was slightly ahead of the prior year and forecast.
Our result from operations in our statutory income
statement, which excludes one-off items such as the costs
associated with the IPO, rose by $3.1 million or 7.9% from
$38.9 million in the prior year to $42.0 million. Operating
expenses as a percentage of revenue increased during the
year, from 57.6% to 57.9%. This reflects a boost in staff
numbers to build resilience and support growth, however
these were higher than forecast due to the greater cargo
volume and higher employee and site entrance safety
improvement costs.
In addition to the one-off $6.4 million of expensed IPO
costs and $7.1 million for the repayment of interest rate
swaps, the bottom-line result also included a one-off $1.1
million non-cash expense for the write down in our joint
venture interest in the Manawatū Inland Port. Manawatū
Inland Port remains a strategic infrastructure asset for
Napier Port in the medium term. Overall, the net profit after
tax of $6.8 million was $1.3 million higher than the forecast.
STRATEGY FOR GROWTH
In planning for our future and bringing our strategy to life,
we are focused on four key areas – customer connection,
networked infrastructure, harnessing data and technology,
and collaborative partnerships.
Over the past five years, Napier Port has invested nearly
$100 million in our infrastructure and equipment to help
build operating capacity and ensure we are well-placed
to handle the region’s growing cargo base.
In the 2019 financial year, we invested $17.6 million in
capital projects, including additional refrigerated container
capacity and deposit payments on our third tug, Kaweka,
which arrived in November 2019.
We commenced development of our depot services
relocation to the off-port container hub in Napier,
and further investment in the detailed design and
pre-construction phase for the 6 Wharf development.
We also invested in replacement paving works, wharf
fender replacements and container handling equipment.
Aligned with this investment was the development
of a draft 30-year Master Plan to set a clear direction
for our asset development plans, ensuring we have the
right infrastructure at the right time for our customers.
With ongoing input from a range of stakeholders, the plan
considers future trade scenarios and changes in the local
and global shipping industry.
Our Master Plan will ensure we are building a port that
is resilient and responsive to our customers’ needs and
that we maximise existing assets that have stood the test
of time for future generations.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 7

Everyone from the sheep farmer docking lambs in Central
Hawke’s Bay to the orchardist growing apples in Pakowhai
is our customer. Our people are connecting with our
customers out on factory floors, driving forestry tracks
and in coolstores, working to understand what their
businesses need from us to make them successful.
Our Commercial team is focused on helping importers
take advantage of Napier Port’s position within the North
Island supply chain, helping to diversify our economy and
lowering the cost for the primary exports flowing through
Napier Port.
Every day, Napier Port uses smart technology to collect
data that helps our customers and our port to function.
We use that data and technology to provide our customers
with more information and to drive more value from
our operations.
As an example, in May we launched an Automated Load
List Reconciliation system that allows every shipping line
calling at Napier Port to validate their own cargo lists.
This has reduced planner administration by 60 hours
per week in our peak season. Maersk is now rolling the
system out to other ports in New Zealand, and potentially
the world. This is a great example of how Napier Port
is leading technology development across ports
in New Zealand for our customers.
Napier Port is an important player in the regional supply
chain, but it’s just one cog in the machine that keeps
our economy revving. We need to foster collaborative
partnerships with others to get things done. This includes
working with local government entities on how existing
industrial land should be managed and where future
industrial land could be located, and where investment
is needed in the rail and roading networks to support
growing cargo volumes.
We are working with log exporters to improve the flow
of logs to the port and ease congestion on our wharves.
This has included implementing a log allocation model and
partnering with industry on the development of a forest-to-
ship industry working group focusing on improving the log
export supply chain.
We are also working with mana whenua and community
groups on how we can strike the right balance for a
growing economy and have convened a Mana Whenua
Steering Komiti. The Komiti, representing 15 local
marae, hapū and mana whenua groups, is developing
a unique Marine Cultural Health Programme to support
environmental monitoring during our 6 Wharf construction
programme. We’re also working with local community and
industry fishing representatives through our Fishing Liaison
Group to monitor, measure and reduce any impact on fish
stocks or fishers from port activities.
VALUING OUR PEOPLE
Finally, Napier Port would not have achieved all it has over
the last financial year without the talented team who keep
our operations running 24/7, develop our port infrastructure,
navigate our customer cargo to safe waters and ensure
smart commercial decisions are made.
In particular, I would like to acknowledge the huge
contribution of General Manager – Container Operations,
Warren Young, who after 21 years of service, has
announced his retirement. Warren’s knowledge of the
business and ability to build relationships will be missed,
but the successful team he has built and his significant
legacy will live on at Napier Port.
Napier Port’s strategy sits on a foundation of our Culture
of Care – it guides how we look after our people, our
customers, our community and our shareholders.
I am proud of the dedication of our team to our region
and what we do at Napier Port. Our people have always
given more than 100%, but their true commitment to the
company was demonstrated when almost the whole team
bought shares in Napier Port. They are now more invested
than ever in the future of Napier Port and doing their part
to get the results we are all striving for.
We are committed to ensuring our people feel their safety
and wellbeing are valued by the company, and following a
number of serious incidents this year we have refreshed our
health and safety strategy to put more focus on critical risk
and assurance activities. We’ve also set a clear health and
safety standard for other companies working on our port,
with the establishment of our Licence to Operate contract.
LOOKING FORWARD
Now we have reflected on what’s been accomplished,
it is time to look forward to what the next year will bring.
In early 2020, we will commence construction on 6 Wharf.
It is a large project that will require careful planning,
environmental management and community engagement.
We are working to ensure we minimise impacts on the
marine environment, local traffic flows and neighbourhood
noise. The two-year project will further unlock our potential
to serve our customers and grow the region’s economy.
Also in the pipeline for 2020 are a number of new
strategic projects that will help deliver on our purpose: the
integration of 6 Wharf into our operations, the completion
of our second off-port site at Thames Street, and further
utilisation of our data and technology capability to benefit
our customers.
We will be continuing to build on our recently developed
Sustainability Framework to ensure we leave a positive
legacy for future generations. Over the next 18 months
we will develop a sustainability strategy incorporating
United Nations Sustainable Development Goals. This will
guide our local response to global issues, improve the
diversity of our workforce and enhance environmental
outcomes. I’m looking forward to the year ahead and
seeing what we can do together to ensure our beautiful
and productive region prospers.
Nakū noa, nā
TODD DAWSON
Chief Executive
8 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

CHIEF FINANCIAL OFFICER’S
MANAGEMENT
DISCUSSION
AND ANALYSIS
OVERVIEW
Napier Port has had a transformative year, delivering
results in key financial metrics ahead of the forecasts
made at the time of our IPO. Revenue has grown by 8.6%
and while statutory net profit has decreased by 61.0% to
$6.8 million due to IPO and capital restructuring costs,
underlying operating performance, as represented by the
7.9% increase in the result from operating activities to
$42.0 million, has also grown to record levels.
Our balance sheet has been transformed by a net capital
injection of $110 million and by welcoming more than
9,000 new shareholders. At financial year-end, Napier Port
was debt-free and holding $31.2 million in cash and cash
equivalents in preparation for the commencement of the
6 Wharf construction project.
In conjunction with this annual report, Napier Port
has released Supplemental 2019 Trade Volume Data,
Supplemental Selected Financial Information with
comparisons to forecast financial information, and an
annual results presentation that together provide further
trade and financial information, comparisons to forecasts
published in July 2019 as part of the IPO process, and
form part of our 2019 reporting suite of information for
investors. All documents are available at the investor centre
at napierport.co.nz.
REVENUE
Revenue of $99.6 million increased by 8.6% from the
prior year and was driven by both growth in volumes and
average revenues per unit across container services, bulk
cargo, and cruise services. The revenue result was 2.3%
ahead of the $97.4 million forecast for the year.
Container services revenue of $61.2 million was 5.5%
higher than the prior year, and 2.8% higher than forecast.
Container services’ combined import and export trade
volume of 267,000 TEU was 3.2% higher than 2018
and 2.5% higher than the forecast for the year. Combined
with fewer discharge, load and restows (‘DLRs’ or ‘other
container movements’) the total container volume
of 271,000 TEU was1.9% ahead of the prior year and
0.7% ahead of forecast.
Higher export volumes were driven by a record export
season for apples, increased meat exports and decreased
canned food and other food exports. Missed vessel calls
due to weather events and shipping service changes
contributed to lower container vessel calls than forecast.
Container services’ average revenue per TEU increased
by 3.4% compared to the prior year as a result of growth
in revenue from container storage and reefer container
services, and charges introduced to recover the cost
of infrastructure investments.
Bulk cargo revenue of $32.3 million was 11.4% higher
than the prior year and 2.2% higher than forecast.
Bulk cargo total volume of 3.4 million tonnes was 10.9%
higher than the prior year and 0.7% higher than forecast
for the year. Log volume of 2.6 million tonnes grew by
16.9% compared to 2018 and was 3.2% higher than
forecast, despite a sharp correction in international
export log prices in the last quarter of the year.
Other exports were lower than forecast due to fewer
exports of bulk timber and lower tallow volumes,
among other smaller categories.
Bulk cargo average revenue per tonne increased by 0.5%
compared to the prior year and was 1.5% higher than
forecast due to a higher number of vessel calls.
The 70 cruise vessel calls for the 2019 financial year were
in line with forecasts and represented 22.8% growth in
calls compared to 2018. Cruise revenue increased by
46.1% to $3.7 million, which was 4.1% ahead of forecast.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 9

EXPENSES
Operating expenses grew by 9.1% to $57.6 million, with
employee benefit expenses increasing 11.8% and other
operating expenses increasing 10.7%. The increase in
employee benefit expenses was attributable to greater
staff numbers, pay rises, increased employee leave
costs, and additional costs associated with becoming a
listed entity such as $0.3 million of share-based payment
expense for the Fair Share employee share ownership
plan. Other operating expenses increased compared to
2018 due to consultancy costs relating to port master
planning, incremental listed company costs, seismic
testing and site entrance safety improvements.
Compared to forecast and allowing for classification
differences in reported results compared to forecasts,
operating expenses (excluding IPO transaction and
related costs) were $1.5 million higher than forecast with
employee benefit expenses comprising $1.1 million of this.
The result from operating activities increased by 7.9%
to $42.0 million, albeit representing a slight decrease
as a percentage of revenue from 42.4% to 42.1%.
Adjusting for classification changes in IPO costs in the
forecast income statement
1
, the result from operations
was $0.7 million or 1.8% higher than forecast.
Depreciation, amortisation and impairment expenses
increased by $1.2 million to $12.2 million, and were 4.2%
higher than forecast, as additional assets commenced
being depreciated and a review of residual values for
marine floating plant during the year resulted in an
increase in depreciation of $0.5 million compared to 2018.
IPO transaction and related costs of $6.4 million were
less than the forecast of $7.3 million because of the
eventual split of total IPO costs between the income
statement and equity. This resulted in a lower portion
of the total IPO costs being recognised in the income
statement.
The share of loss and impairment of investment in our joint
venture was $1.1 million, compared to $0.1 million in the
prior year, as the Group’s interest in the Manawatū Inland
Port joint venture was considered impaired and written
down during the year.
Net finance costs increased to $10.4 million compared to
$4.1 million in the prior year due to the costs associated
with the capital restructuring, particularly $7.1 million
of costs for closing out the interest rate swap portfolio,
which was $0.5 million higher than forecast.
Income tax expense decreased by $1.7 million compared
to the prior year due to lower profits. However, due to
non-deductible expenses related to the IPO transaction
and the joint venture impairment, the effective tax rate
was 43% during the year compared to the statutory
and prior year effective tax rate of 28%.
Net profit for the period attributable to the shareholders
of the company of $6.8 million was 61% lower than
the prior year result of $17.6 million but ahead of the
$5.6 million forecast.
CAPITAL EXPENDITURE
Capital expenditure of $17.6 million was $7.4 million less
than forecast, the majority of which is due to deferred
spend on work in progress projects and replacement
capital spend deferred and expected to be completed
during the 2020 financial year.
CASHFLOW
Cashflow from operating activities increased 3.4%
to $29.3 million from the prior year, and after deduction
of $5.6 million in IPO transaction costs. This resulted from
the improved operating result, lower net finance costs,
lower current income tax payments and an improved
working capital position.
As a result of the IPO capital raising and restructuring,
including the repayment of outstanding debt and interest
rate swaps and capital payments to the previous 100%
shareholder HBRIC, and after transaction and debt raising
costs, a net $19.5 million of financing cashflow was
received during the period.
After the application of operating cashflow to capital
expenditures and cash inflows from financing,
Napier Port ended the 2019 financial year with no debt
and $31.2 million in cash and cash equivalents ahead
of the $20.1 million forecast.
1
See Note 26.1, Comparison to Prospective Financial Statements,
within the Consolidated Financial Statements
10 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

LENDING FACILITIES
As part of the capital restructuring, we successfully
refinanced and increased our banking facilities to $180
million during the year. This provided the financial capacity
required to continue with our future capital investment
programme, and in particular, the 6 Wharf development.
We welcome ICBC (NZ) and ICBC (Asia), joining
Westpac, with whom we have a long-standing business
relationship, as our banking partners going forward.
The new facilities have maturities of four to five years
that extend well beyond the planned construction period
of 6 Wharf.
BALANCE SHEET
At the end of the financial year the Group had total
assets of $371 million, including $31.2 million of cash
and cash equivalents and $339.9 million of property,
plant and equipment and other assets, which were funded
by $335.5 million of equity balances and $35.6 million
of current and non-current liabilities.
Compared to the forecast, the property plant and
equipment balance is $9.1 million lower principally due to
the timing of expenditure on capital projects compared to
the forecast assumptions. Trade and other receivables are
$1.7 million lower than forecast due to the timing of revenue
and collections. As a result of these, the cash and cash
equivalents balance is $11.2 million higher than forecast.
DIVIDEND
In accordance with the forecast at the time of the IPO
the Board has, subsequent to the balance sheet date,
approved a fully imputed dividend of $5 million (2.5 cents
per share), payable on 20 December 2019 to those on the
share register at close of business on 2 December 2019.
LOOKING FORWARD
The Group is working towards commencing construction
for the 6 Wharf development and dredging project.
The proposed development is a material investment
for the Group and will result in a strategic asset for
Napier Port and the local economy.
From a capital and financing point of view, we are well-
positioned to fund this project and support the continued
growth of our region.
KRISTEN LIE
Chief Financial Officer
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 11

CUSTOMER
CONNECTION
We are committed to developing close
customer relationships that help us to identify
opportunities to deliver innovative logistics
solutions and integrate us into our customer
supply chains, with our business model
extending beyond the port gates. We’ll use
the insights gained from these connections
to inform our investment decisions, both
on and off the port.
Achievements:
• Handled record 70 cruise vessels
• Increased Commercial team capacity
• Commenced customer insight programme
• Implemented log yard allocation model
NETWORKED
INFRASTRUCTURE
We are working to connect our customers’
cargo to market with an established and
growing infrastructure network, operating
as an integrated and intelligent system.
We intend to enhance our reach across our
catchment area and provide opportunities
to develop further customer solutions,
including our Thames Street depots
and Whakatū land holding.
Achievements:
• Secured funding for 6 Wharf and signed
contract with HEB Construction
• Expanded marine fleet with third tug
• Launched draft 30-year Master Plan
• Completed Thames II depot to move
container wash and pre-trip services
off port
• Launched B-double truck trial to increase
efficiencies
OUR FOCUS
OUR FOUNDATION
CULTURE OF CARE
Support our strong and resilient culture which encourages care for our people, the local community and the
environment. This ‘Culture of Care’ is the foundation of our strategy and is pivotal to achieving our goals.
SETTING
OUR COURSE
Our strategy drives everything we do at Napier Port: how we manage our assets, how we provide
innovative solutions to our customers, and how we operate within our community and environment.
In 2018, we carried out a robust strategic process to set ourselves up for the challenges and opportunities Napier Port
could face over the next ten years. The last 12 months have been about setting the foundations for success: developing
and testing plans for our assets and our business and ensuring we can fund those plans. The next two years will see
us starting to deliver on key projects, such as 6 Wharf, and building our capabilities to achieve our vision for the future.
PURPOSE
TOGETHER, WE BUILD A THRIVING REGION BY CONNECTING
OUR CUSTOMERS, PEOPLE AND COMMUNITY TO THE WORLD.
12 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

OUR FOCUS
OUR FOUNDATION
HARNESSING DATA
AND TECHNOLOGY
We are focused on capturing data from
customer supply chains and operations to
deliver productivity gains for customers and
Napier Port, and on developing innovative
technologies that create efficiencies for our
customers and our port operations.
Achievements:
• Integrated Load List Reconciliation
• Automated twist lock location process
• Collaborated with WPI on damages
reporting mobile app
• Launched Reefer Care technician app suite
to improve data visibility
• Developed mobile app to synchronise
vessel plans across stevedores, crane
and heavy plant operators, and eliminate
paperwork
COLLABORATIVE
PARTNERSHIPS
We want to develop collaborative
partnerships with people and organisations,
particularly those within the Hawke’s Bay
region, with shared interests and aspirations
to support our efforts to build a thriving
region. We are committed to supporting
our local community and the environment.
Achievements:
• Established Mana Whenua Steering
Komiti and Fisheries Liaison Group
• Implemented minimum Safety Protocols
• Developed Licence to Operate with
tenants and contractors
• Partnered with local government
on regional planning forums
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 13

STRATEGIC CHANGE
At Napier Port, we understand our role in the region and within the national transport network.
We know that by supporting a thriving regional economy, and by actively growing regional outcomes,
our community, our country and our shareholders benefit.
A new Strategy and Innovation team has been established
to turbo-charge Napier Port’s ability to achieve that strategy.
New General Manager – Strategy and Innovation,
Andrea Manley, joined the port this year to drive strategic
projects forward – projects that will see us partner with
our customers on smart solutions, maximise the ocean
of data we collect every day and deliver technology
innovations that make our supply chain run efficiently.
Getting a deeper understanding of our customers’
needs is a key focus over the next year. Our Commercial
team is embarking on a customer insights programme
with surveys, interviews and more time spent ‘in’ our
customers’ businesses. Those insights will be fertile
ground for shared supply chain solutions – solutions
that cultivate tangible outcomes for our region.
Working together with our customers to develop supply
chain solutions is key to keeping our region connected
to the world. We are already innovating within our gates
– the next step is to go beyond that to make the supply
chain, from start to finish, as efficient as possible.
Image: HEB Construction CEO Derrick Adams and Napier Port CEO
Todd Dawson at the 6 Wharf site, after signing the construction contract.
14 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

DRIVING STRATEGY
AND INNOVATION
Andrea Manley comes to Napier Port with strong
experience in supply chain management, from leading
a supply chain to providing supply chain services. Her
experience in the mobile industry and in driving tech
solutions for supply chains means she’s ideally placed
to lead Napier Port’s new Strategy and Innovation team.
Andrea’s career started at New Zealand Aluminium
Smelters near Bluff and it has taken her all around
New Zealand and across the globe. Most recently,
she was Supply Chain Manager for Goodman Fielder,
which produces a range of brands including Ernest
Adams, MeadowFresh, Yoplait, Molenberg, and Vogels.
She’s also spent time at logistics company Kotahi,
Vodafone, Montana Wines, Alcatel-Lucent
and GlaxoSmithKline, as well as tech start-ups
Onezone and Supplynet.
At Napier Port, she will lead Napier Port’s strategic
programme – ensuring the delivery of strategic projects
that will ready Napier Port for the future. Those projects
include Napier Port preparing for the operation of
6 Wharf, exploring off-site opportunities such as the future
of land holdings in Whakatū, and the commercialisation
of Napier Port’s technology innovations.
Andrea is very clear about what she and her team need to do:
“The global port industry is changing rapidly and
Napier Port is uniquely placed – it’s large enough to have
the economies of scale to invest in innovation that can
be industry-leading but small enough that it’s still
nimble and able to adapt quickly. It’s our job to create
an environment where we can see the opportunities
and have the capability to take advantage of them.”
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 15

16 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

FUNDING
OUR FUTURE
Over the last two decades, Napier Port has experienced
steady growth, incrementally building our capability
alongside the increasingly productive primary sector
of the region we serve.
In 2015, it became clear that Napier Port was reaching capacity
for the number and size of ships it could accommodate,
constraining our customers’ ability to get their products to market.
It was evident that ensuring the region’s importers and exporters
retained access to competitive shipping options would require
significant infrastructure investment.
At that time, Napier Port was 100% owned by Hawke’s Bay
Regional Council (HBRC) on behalf of the region’s people,
who valued local ownership of the port.
After extensive consultation, Council voted to sell 45% of its
stake in the company through an Initial Public Offering (IPO)
on the NZX, to raise the funds needed to secure the future
of the port and the region’s economy.
Council wanted to ensure the best local participation
possible, so made priority share offers to local residents,
eligible iwi entities and Napier Port employees, together
with offering shares to the open market through broker firm
and institutional offers.
In July 2019, the priority offer opened and was over-
subscribed, with nearly 8,000 local residents and ratepayers
investing in Napier Port – two-thirds of whom had never
invested in shares of any kind before. Several iwi entities
invested and 97% of Napier Port’s employees took up shares,
many with the assistance of a Fair Share employee share loan
aimed at encouraging employee participation and engagement.
The successful capital raising was a vote of confidence in the
future of Napier Port and a demonstration of the important role
we play in the region.
On 20 August, Napier Port listed on the NZX. As just the
second company to list in an IPO in 2019 and among the largest
in recent years, the listing was much anticipated and attracted
strong interest.
The share float raised $234 million for the region, including
$108 million earmarked for a future fund to enable Council
to reinvest on behalf of ratepayers.
Being a listed company has set the platform for Napier Port’s future
growth, including paving the way for the construction of 6 Wharf.
As a listed company, Napier Port now has many new stakeholders,
as well as many existing stakeholders who are more invested than
ever in the future of the port.
While the number of people invested in our future has increased,
the direction remains the same. We will continue to deliver a strong
strategy to support our region’s economy to thrive; and in doing so,
all our customers, our shareholders, our team and our community
will prosper too.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 17

Image: Napier Port’s General Manager – Commercial ,David Kriel, on the orchard
with Bostock New Zealand’s John Bostock. As an organic grower, Bostock utilises
baleage to control weeds and retain soil moisture on orchards across Hawke’s Bay.
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CUSTOMER
CONNECTION
Customer Connection is all about strengthening our ties with the growers, manufacturers, retailers
and tourism businesses who keep our port and our region humming. That means getting to know their
business inside out – to understand what matters to them, what drives their business, and how every
element of their supply chain works.
Part of that is developing closer customer relationships
that help us identify innovative solutions. Our business
model extends beyond the gate and integrates with our
customers’ supply chains. Armed with deep and rich
insights into our customers and their logistics, we are
focused on working alongside them to deliver greater
efficiencies and value for their business.
SUPPORTING BOSTOCK
TO SUCCEED GLOBALLY
Napier Port is playing a key role in Bostock New Zealand’s
bid to become a global leader in the organic produce
trade. Already the largest organic apple producer
in New Zealand and a pioneer in sustainable growing
practices, Bostock is well-placed to take advantage of
growing global demand for organic produce, specifically
organic onions. Demand for organic onions is huge around
the world, particularly in Europe where limited domestic
production increases demand for New Zealand products.
Earlier this year, Bostock’s first export of organic onions,
also a New Zealand first, arrived in Europe after departing
Napier Port. The Bostock team was in Europe at the time
and able to take delivery of the same high-quality product
that left New Zealand’s shores six weeks prior. Napier Port
is an integral link in Bostock’s customer supply chains
and committed to supporting their innovative onion
and organic produce export goals.
RECORD APPLE EXPORT SEASON
New Zealand apple orchards are seeing record yields
well above the global average, and as the country’s main
pipfruit producing region, Hawke’s Bay is continuing to set
record harvest volumes. Napier Port works hard to deliver
a fast and efficient export gateway for these high-value,
perishable products. This season, Napier Port surpassed
total apple export numbers from last year, handling over
25,977 TEU compared to last season’s total volume
of 23,627 TEU.
Napier Port has close and collaborative relationships
with our apple growing partners in the region, and strong
strategic plans in place to support the industry’s forecast
growth. With approximately one million apple trees
expected to have been planted in New Zealand in 2019,
and at least two-thirds of those plantings in Hawke’s Bay,
apple harvest volumes are set to grow in the future.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 19

ACCELERATING LOG EXPORTS
Hawke’s Bay is a key player in New Zealand’s forestry
industry and has made strong gains across its log harvest
volumes in recent years. This year saw our forestry
customers export a record 2.6 million tonnes through
Napier Port, a 16.9% increase from the 2.2 million tonnes
exported in 2018. This represents a doubling of volume
over the last three years, and forestry harvests throughout
New Zealand are expected to further increase over the
next five years.
Napier Port works alongside our log exporters throughout
the year, and new initiatives such as the implementation
of a log allocation model and establishment of a forest
to ship industry working group have proven positive
for our forestry customers and stakeholders.
GROWING DEMAND FOR CRUISE
Napier is regularly voted one of the best ports of call
in New Zealand by cruise ship passengers, and demand
for the city as a destination is continuing to grow.
Napier Port welcomed 70 cruise ships and over 115,000
cruise passengers in the 2018/2019 season, with ship
calls forecast to increase to approximately 87 for the
2019/2020 season.
Napier Port makes a real point of working closely with
our cruise partners, including cruise lines, Hawke’s Bay
Tourism, the Napier i-SITE Visitor Centre, tour operators
and local businesses, so that together we can offer
a high-quality, end-to-end experience for those visiting
our region via cruise ship.
DELIVERING VALUE FOR IMPORTERS
Napier Port has been working collaboratively with
importers such as Big Save Furniture, local business
associations and local government to attract other
importers. As a result, our import customers have
reduced their costs by taking advantage of the shipping
lines’ desire to bring full containers into Napier Port
(rather than the empty containers required to supply
the region’s export demand).
MEET OUR COMMERCIAL TEAM
Our Commercial team represents the voice of our
customers at Napier Port. They are passionate advocates
for nurturing engagement and collaboration as they work
with customers to help achieve their goals.
Napier Port is making good on our commitment to
customer connection through investment in our customer-
facing Commercial team over the last year, with the
addition of new Business Development Manager Dominic
Sutherland and Commercial Coordinator Amba Foster-
Miles. Joining General Manager – Commercial David Kriel
and Business Development Manager Andrew Palairet,
the team brings a wealth of knowledge and skills to the
table and are well-positioned to deliver a rich customer
service and foster deeper customer relationships.
MANAWATŪ INLAND PORT
In partnership with Ports of Auckland and Hall’s Group,
Napier Port has developed a 1.9-hectare container
yard and 2,170 square metre warehousing facility at the
Manawatū Inland Port. Located in the logistics epicentre
of the lower North Island, the model of the Manawatū
Inland Port has been designed to reduce time to clear
imports and exports at Ports of Auckland and Napier Port.
With a range of services available including Ministry
for Primary Industries inspection, cross-dock facilities,
dry storage, packing and unpacking facilities, fumigation
and container repair, this one-stop shop will create greater
efficiencies for our customers and also help to alleviate
congestion at busy seaports.
PRIORITISING OPPORTUNITIES
THROUGH INSIGHTS
Open channels of communication and opportunities
for sharing feedback are crucial to the success of
any close relationship. Napier Port aims to develop
our partnerships and gain insights from customers by
soliciting their input and views through a variety of ways,
including online surveys, in-depth interviews, and ongoing
customer engagement. These customer insights provide
an important benchmark for identifying improvements
and prioritising opportunities.
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NETWORKED
INFRASTRUCTURE
Napier Port is working hard to build a seamless supply chain between our customers and international
markets. That means examining not only the port infrastructure our customers need, but the freight hubs,
the coolstores, the factories, and the road, rail and sea links that connect them together.
PLANNING FOR GROWTH
This year, Napier Port developed a comprehensive Master
Plan that provides a blueprint for how we invest and
develop infrastructure such as buildings, equipment, roads
and rail over the next 30 years.
The preliminary plan was developed in line with
international best practice and considers a range of future
trade scenarios, changes in the shipping industry, and
the needs of our customers and community. We engaged
with a wide range of stakeholders, from cargo owners and
shipping lines, to transport firms and KiwiRail, alongside
our people, local councils and our port neighbours.
The Master Plan sets out a number of options for
addressing growth in a sustainable way. The process
confirmed the need for a sixth wharf, inland freight hubs
and a new tug to support growth; however, whether we
pursue other options will depend on actual trade volumes.
The options we do go forward with will be pursued
in line with our sustainability strategy and four objectives
of the Master Plan:
OPTIMISE
Maximise productivity with the existing land
and infrastructure we have.
GROW CAPACITY
Even with greater efficiencies, additional port
capacity will be needed to service cargo growth.
PARTNER
Work with key stakeholders to achieve
our objectives.
PRESERVE
Ensure we protect and improve
our environment as we grow.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 23

EXPANDING THE MARINE FLEET
Napier Port’s marine fleet grew significantly this year with
the purchase of a third tug. The Azimuth Tractor Drive
(ATD) Tug 2412 Twin Fin was purchased from Dutch
company Damen Shipyards Group in March and sailed
into Napier Port in early November. Just 24 metres in
length but with 72 tonnes of bollard pull, the tug will
deliver the right combination of power and compactness.
In consultation with local iwi, the tug was named Kaweka
after the mountain range that surrounds the harbour west of
Napier Port. This boost to our fleet will improve our ability to
service vessels (including larger vessels), reduce congestion
and delays, improve berth availability and maintain full marine
services if one of our other two tugs is out of service.
AGILE INLAND HUBS
The added capacity of our inland hubs in the Thames
Street industrial zone is providing flexibility as space on-
port is reconfigured to allow for the construction of
6 Wharf. From 2020, container wash and pre-trip services
will be relocated to our empty container depots at
Thames Street – Thames Street I and Thames Street II.
Six container towers have been installed at Thames Street
II, and will provide power to 144 refrigerated containers,
ready for our export customers to use.
A 12.3-hectare land holding in Whakatu provides a number
of options for sustainable development. Over the next
few years, Napier Port will explore these options in detail
and develop a preferred strategy for the future of this site.
PUTTING WHEELS IN MOTION
The first truck capable of carrying four 20-foot or two
40-foot containers took to the road between Napier Port
and our Thames Street depots in August this year.
A New Zealand first, the 29-metre-long, five-axle B-train
was developed for Napier Port by partners Trackaxle
and TERNZ Transport Research.
The vehicle is part of a trial that, if successful, could
generate major productivity improvements, reduce the
number of trucks on the road and lessen road noise
for those living along our transport routes.
RAIL CONNECTIONS
Napier Port recognises the environmental and community
benefits of rail-based distribution, particularly for those
living near the port and our transport corridors, as we
grow. We are working with KiwiRail and our customers to
explore mutually beneficial ways to use more rail where it
is commercially viable and can deliver strong connections
for our customers. Rail-based distribution also has a
potential role to play as we develop our off-site depots.
The recent $1 billion boost from Government to KiwiRail,
which will see further investment in rolling stock and a
range of rail projects, provides opportunities to improve
rail’s economic viability and reliability for our customers,
and to make the supply chain more efficient
and sustainable.
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ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 25

BUILDING
FOR THE
FUTURE
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BUILDING
FOR THE
FUTURE
Napier Port is working hard to bring 6 Wharf into operation
by the end of 2022. A major construction project, the sixth
wharf will cater for the increase in vessels calling at Napier
Port, the forecast growth in cargo, and the larger ships
expected to call here.
6 Wharf will be a multi-purpose 350-metre wharf along
the northern face of our existing container terminal.
With funding for the project secured, we have engaged
HEB Construction as the lead contractor and begun
preparing the site for development.
Over the last three years, Napier Port has been dedicated
to ensuring the project has minimal environmental impact
and is committed to managing against any potential
adverse effects throughout construction and dredging.
We invested in a large body of scientific research on
Hawke’s Bay’s marine environment to ensure the project
was the best it could be for the environment. Throughout
the project, we’re also working with key stakeholders
and following comprehensive and best practice
management plans to protect the environment.
BUILDING OUR CAPABILITY
General Manager – Infrastructure Services Michel de Vos
and Capability and Cruise Manager Bruce Lochhead are
working hard to ensure 6 Wharf is delivered successfully
and will build capacity at Napier Port.
Michel de Vos has spent the last five years leading the
team who designed the wharf structure and dredging
programme. He oversaw the development of the
project’s environmental protections and community
engagement, two key factors in our successful application
for resource consent.
Bruce Lochhead is working on integrating the operation
of 6 Wharf into Napier Port’s current container terminal
and marine processes to ensure we have the right
elements in place to maximise the benefits for our region.
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HARNESSING
DATA A N D
TECHNOLOGY
Aligned with the rapid pace of technological innovation, Napier Port is operating in an increasingly
data-driven environment. Information represents a significant opportunity for adding new value
to our business, as well as our customers’ businesses. With the access to and use of big data growing,
a key focus of our strategy is to capture, store, connect and analyse data to create efficiencies
for our operations and deliver greater value for our customers.
Napier Port’s IT infrastructure has been implemented
to enable agility and enhance our capability to identify,
test and ultimately invest in innovations. Our culture
encourages people to innovate, develop their own
skills and reach out across the world to connect with
like-minded partners. With this foundation we have
developed a number of leading technologies that
benefit our customers.
AUTOMATION IN ACTION
Over the past two years, Napier Port has collaborated with
shipping lines to improve load list reconciliation through
automation. Previously, the reconciliation process saw
Napier Port and shipping line planners manually comparing
data until both container lists matched.
Since May, all shipping lines calling at Napier Port have
been added to the Automated Load List Reconciliation
system. This allows shipping lines themselves to validate
vessel loading is the same as the bookings made by cargo
customers. The new system has reduced our ship planning
administration by 60 hours per week in the peak season.
Maersk is now rolling this system out to other ports in
New Zealand, with further plans to roll out internationally.
OPTIMISING OUR SYSTEMS
Napier Port is continually exploring opportunities to
optimise our systems and enable future automation across
the business. Earlier this year, Napier Port developed a
software solution that automatically assesses the position
of a container on the ship and identifies visually on screen
whether a container requires a twist lock. Twist locks are
used to hold specific containers in place on a container
vessel, depending on their position. This new automation
process removes all manual administrative input that
previously determined the containers that required twist
locks, saving 30 minutes for every vessel.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 29

COLLABORATING TO DEVELOP
INTELLIGENT DATA SOLUTIONS
Napier Port is focused on getting our customers’ products
to market in pristine condition and is investing in solutions
that do just that. In collaboration with exporter Winstone
Pulp International (WPI), we developed an app that
allows our people to photograph and report product
and packaging issues using their mobile device, with the
data immediately integrated into WPI’s system. The new
mobile app means WPI can trace where any damage
occurs in their supply chain and proactively work to
reduce it. The application automates the reporting
so WPI receives consistent and accurate data, eliminating
the former two-hour manual administrative process.
This bespoke digital solution provides WPI with greater
quality control oversight and ultimately improves their
operational efficiencies.
IMPROVING EFFICIENCIES
Napier Port has been focused on improving the
operational efficiencies around our refrigerated container
(reefer) exports, which are high-value cargo to global
shipping lines. We have developed a suite of reefer
care mobile apps that improve the visibility of data and
automate several manual processes for our Reefer Care
technicians, including container preparations (pre-trip),
shipside plugging and unplugging; receiving and delivery
plugging and unplugging, reefer monitoring, and reefer
charting. These innovations have increased productivity
across our reefer services and reduced the workload
of our people.
AUTOMATION ALLOWS GREATER
FLEXIBILITY FOR CUSTOMERS
Napier Port will soon launch an in-cab application for
crane operators, shipside heavy forklift operators and
stevedores that automates the processes for container
vessel exchanges. This improvement will extend the
container acceptance window for our customers and
allow planning to be more dynamic and responsive to their
needs. In addition to providing greater flexibility for our
customers, the new process will eliminate paper-based
processes altogether and reduce Napier Port’s paper
consumption by 2.5 tonnes a year.
RESOURCING FOR A DIGITAL FUTURE
The Information Technology (IT) team is growing
in alignment with our strategic focus of harnessing
data and technology. Recent changes have seen the
introduction of a new Software and Data Manager
role, and the transition of two outsourced roles –
IT Infrastructure Manager and Senior Developer –
to Napier Port people. With such an emphasis placed
on innovation, we are proactively integrating data
and data-driven solutions across the business.
REAL-TIME DATA
We’re understanding more about our marine environment
than ever before, thanks to new technologies deployed in
the harbour. Through our solar-powered monitoring buoys
and gauges, we’re collecting real-time data on water
clarity, temperature, currents, tides, and wave height.
This information gives us a strong picture of the health
of the harbour and the mauri (life force) of Pania Reef,
and allows us to respond quickly to changing conditions
in the harbour.
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PETER FRIZZELL
This year marks 50 years since Napier Port’s hydrographer,
Peter Frizzell, began working in the marine environment
surrounding the port. Pete’s role is critical to ensuring
Napier Port can operate and grow – mapping the shifting
sea floor and vital shipping channel, planning dredging
campaigns, collecting data about weather, tides and the
clarity of Hawke Bay’s water. Pete generously shares
his vast knowledge with the Infrastructure team to help
protect the environment and plan infrastructure projects,
as well as heading out weekly in our survey boat to maintain
monitoring bouys.
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COLLABORATIVE
PARTNERSHIPS
Collaboration is at the heart of everything we do – every day we work with our customers,
business partners, regional agencies and our community to build a thriving region. By working
together, we can add value to the community and the environment we operate in sustainably.
PARTNERING ON SOLUTIONS
Napier Port is focused on building partnerships with like-
minded organisations to provide innovative solutions to our
customers, including supply chain infrastructure.
In line with our focus on collaborative partnerships, we are
searching out innovative ways to fund, deliver and manage
future infrastructure projects. We have strategically
purchased 12.3 hectares of industrial land at Whakatū for
a future off-site facility and we are currently investigating
options, including collaborative partnerships with
suppliers, for its development over the next decade.
IN PARTNERSHIP WITH STAKEHOLDERS
As we grow, we are committed to taking others with us.
As part of the 6 Wharf project, we have established the
Mana Whenua Steering Komiti (pictured), which includes
15 representatives from different marae, hapū and
mana whenua entities. The Komiti will play a vital role
in protecting, monitoring and assessing the cultural
health of the marine environment, particularly Pania Reef,
during the 6 Wharf project. Together, we are developing
the Marine Cultural Health Programme, which, along
with our own environmental monitoring, will ensure our
planned dredging operations are not adversely affecting
Te Matau a Māui.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 33

We also work closely with the local fishing sector –
both commercial and recreational – who have a strong
interest in maintaining the health of the harbour and the
flora and fauna that live within it. To that end, we have
established the Fisheries Liaison Group (pictured, top left),
a committee of 12 commercial and recreational fishers,
divers and Napier Port representatives led by Environment
Court Commissioner Eileen von Dadelszen. The group
meets quarterly and has provided input into management
and monitoring plans to minimise potential risks to water
quality, fisheries and fishing stock as a result of disposal
and dredging.
BUILDING AN EFFICIENT SUPPLY CHAIN
Arterial routes, rural roads, rail lines, freight hubs,
coolstores and the port form a complex network of supply
chain infrastructure across our region and beyond.
To ensure the health of that network, the infrastructure
owners, transport operators, cargo owners and the
community must work together. Where there are pinch
points, a clear and cooperative vision for the future is vital
to ensure effective solutions secure investment and are
delivered in time to prevent congestion.
Napier Port is actively working with the New Zealand
Transport Agency, KiwiRail and Hawke’s Bay councils
to ensure the right infrastructure is in place to support
increasing cargo volumes. Napier Port is involved in a
number of processes to achieve this, such as:
• Participating in the Regional Land Transport Committee,
facilitated by Hawke’s Bay Regional Council, which
determines where across the transport network
investment is needed
• Collaborating with Napier City Council on the Napier
Transport Study, which, among other things, will
consider how to protect, maintain and enhance the link
from the Hawke’s Bay Expressway to Napier Port
• Contributing to the industry-led Forest to Ship supply
chain workshops to support growth in the forestry
industry and efficient linkages to the port
• Collaborating with councils on how existing industrial
land should be managed and where future industrial land
could be located, through the Joint Napier City Council
and Hastings District Council Regional Industrial
Land Review, the Ahuriri Estuary and Coastal Edge
Masterplan and the Napier District Plan Review.
STRENGTHENING SAFETY PROTOCOLS
Working with key stakeholders, we introduced a new
set of safety protocols with the aim of ensuring every
person who comes to our site goes home again safely.
Our new Individual Safety Protocols set out the safety
risks, expectations and requirements for our people, port
users and visitors, including our critical risks, personal
protective equipment requirements, drug and alcohol
policy, safety reporting responsibilities and emergency
evacuation information. Our new Company Safety
Protocols apply to all businesses operating at Napier Port,
including customers, contractors, tenants, marshalling
companies and stevedores. These include work permits,
traffic management plans, hazardous substance
management, communicating across port, reporting
responsibilities, and more.
We also worked with contractors to introduce a
pre-qualification process, which requires all potential
contractors to have completed the Site Safe qualification.
This provides an added assurance that all contractors
have essential health and safety requirements in place.
NEW LICENCE TO OPERATE
Napier Port is committed to creating a health and safety
culture to be proud of, but we can’t do this alone.
Businesses operating at the port need to share our
health and safety standards, and jointly commit to looking
after our people. This year, after thorough consultation,
we finalised a new Licence to Operate that sets out core
safety standards for businesses that operate on our site
but may not have a direct contractual relationship with
Napier Port, such as log marshalling and stevedoring
companies.
The Licence to Operate outlines a number of operator
obligations, including providing copies of risk registers,
hazardous substances registers and emergency response
plans. Marshalling company ISO was the first signatory
and the initiative will be progressively rolled out over the
next year to other businesses operating at Napier Port.
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CULTURE
OF CARE
At the heart of our business is a resilient and agile culture of care for our people,
our customers and our community.
DEVELOPING OUR PEOPLE
Our people are our greatest strength and we are
committed to accelerating our talent development.
This year saw a number of our people progress through
our Marine team structure, proving the value of our career
pathways. Two of our Launch Masters completed their
Tug Master training, while two of our mooring linesmen
completed their Skipper Restricted Limits tickets, enabling
them to become Launch Masters on our pilot launch.
We welcomed two new Marine Officers, who we will
develop to become marine pilots. We also introduced
the new position of Executive Pilot to better connect
our pilots with the wider business, oversee development
of the Pilot team, and to lead best practice in safety,
process and navigation.
Two of our former heavy plant operators progressed
through to become mobile harbour crane operators,
completing their training both on the job and in our state-
of-the-art crane simulator. A new trainee crane operator
was also appointed and is now in training.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 37

BUILDING LEADERSHIP
AND TALENT
Port Pack Manager Dylan Turnbull
(pictured, top left) graduated from the
Chartered Institute of Transport and Logistics’
Leaders for the Future programme in October,
the fifth member of our team to complete this
training. A four-month course, it is designed to
lift and develop leadership capability for emerging
logistics leaders.
We strengthened capacity in our Marine team, welcoming
two new Tug Masters, two Launch Masters, and two
Tug Engineers. We also introduced new positions.
Our Pou Tikanga role was established to strengthen
our environmental monitoring capacity, build iwi and hapū
relationships around the 6 Wharf project, and lead the
development of our cultural capability. A new Innovation
and Supply Chain Manager role brings additional
capability to enabling strategic aspirations.
CELEBRATING TE WIKI O TE REO MĀORI
Our people embraced Te Wiki o Te Reo Māori this year,
learning new kupu (words) and integrating te reo into their
work. Every team member received a pack of language
cards covering basic pronunciation, essential phrases,
and frequently used port-related words. Our people also
produced a series of short te reo videos, which were
shown on screens throughout the port.
The week was organised by a dedicated kāhui
(working group) of people from across our business
passionate about te reo. Following the success
of Te Wiki o Te Reo Māori, the kāhui is now working
on a more comprehensive long-term strategy for building
te reo and Te Ao Māori capability at Napier Port.
In recognition of our commitment to building iwi and hapū
relationships, and to growing our cultural understanding,
we have also introduced a te reo name for Napier Port:
Te Herenga Waka o Ahuriri. ‘Te Herenga Waka’
means a place of arrival, or a place to moor your waka,
while Ahuriri is the Māori name for Napier.
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SERIOUS INCIDENTS
Napier Port experienced a number of major safety
incidents this year. Two incidents in our Port Pack
operation resulted in a crush injury to a finger, and a
serious foot injury. A marine collision involving a
Napier Port tug did not result in any injuries but did
cause damage to the tug and had the potential to be
more serious.
We are supporting all those involved in these incidents,
along with their families and workmates. We are doing
everything we can to learn from these incidents and
keep our people safe. We have already introduced new
procedures and practices for our marine operations,
developed a new training programme, and reduced risk by
reconfiguring elements of the tug wheelhouse and lighting.
In Port Pack, we are in the process of installing physical
barriers to protect our people from machines and are
assessing how engineered controls could be installed
in other areas.
These incidents have given us cause to reflect closely
on our health and safety plan. This review has reaffirmed
our plan to achieve best practice health and safety
management frameworks and to continue the strong
work we have achieved in developing our safety culture.
However, we have committed to accelerating that plan
by providing additional resourcing in the health and safety
space to enable us to achieve our goals within
a shorter timeframe.
UNDERSTANDING CRITICAL RISK
This year brought a sustained focus on critical risk for
Napier Port. A thorough analysis of each of our top eight
critical risks was completed, using a robust methodology
for risk assessment and mitigation. Detailed risk
management plans will be completed in the coming year.
INTRODUCING PORT PASS
We have been working hard to streamline induction and
access at Napier Port. Building on the online health and
safety induction introduced last year, we have rolled out
a new ID and access system called Port Pass. Supported
by a modern, high-tech infrastructure system, Port Pass
is helping Napier Port manage safe, secure and efficient
access to the port.
The new Port Pass ID represents an innovative step
forward for Napier Port. It is an industry-leading identity
card that meets maritime legislation requirements and is
also a valid form of ID on its own. The system is future-
proofed and can be used at other ports around the
country. It also has its own stand-alone branding,
creating the potential to become a multi-regional
port identity card.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 39

A SAFER ENTRANCE
This year saw us collaborate to improve the safety of
Napier Port’s Western Gate – a high-traffic area where
container trucks interact with smaller vehicles, cyclists,
pedestrians and trains. In partnership with NZTA, Napier
City Council and KiwiRail, who hold interests in the land,
road and rail around the Western Gate, the road and
port entrance were reconfigured and traffic lights and rail
barrier arms installed. Since their installation, there have
been no safety incidents around the gate.
CAMPAIGNING FOR SAFETY
This year, we ran an educational campaign for log truck
drivers, setting out standards for safer stacking of logs
on trucks and trailers. The campaign saw the introduction
of a Napier Port Safety Alert, which has been issued
industry-wide to transport operators, skid site operators
and log exporter groups.
In collaboration with WorkSafe New Zealand and the
New Zealand Police Commercial Vehicle Safety Team,
log truck inspection and safety days were run onsite
to reinforce log load safety regulations and ensure trucks
were compliant. We have seen a marked improvement
in the safe loading of log trucks since the introduction
of the campaign in July.
CARING FOR HEALTH AND WELLBEING
Keeping our team in top shape is a priority for
Napier Port. This year saw the continuation of our
comprehensive health and wellbeing programme,
which includes providing an onsite health clinic, healthy
food options, flu vaccinations, cardiovascular checks,
MoleMaps, and prostate cancer tests.
Napier Port runs a health monitoring programme for those
in roles that put them at risk of certain health conditions,
with annual checks by our onsite nurse ensuring we catch
any warning signs early. Occupational health risks such
as noise, dust and vibration have been independently
assessed and the results have informed a management
plan, which is being implemented progressively.
This year saw a wellness programme designed specifically
for those in operational roles affected by the peak produce
export season. This focused on practical topics including
sun safety, nutrition, hydration, and fatigue, and included
engaging activations such smoothie bikes, which saw our
people take up the challenge of making a nutitional meal
via pedal power. We also offered our ‘Warrant of Fitness’
programme for a second year, offering basic health checks
to all staff.
We marked Pink Shirt Day for the third time this year,
taking a stand against bullying. Our people embraced
the message, dressing in pink and delivering random
acts of kindness for their colleagues.
MANAGING FATIGUE
Fatigue is a serious issue for any company engaged
with shift work, and Napier Port is no different. We take
a proactive approach to managing fatigue amongst
our people, and this year developed a Fatigue Risk
Management System. The development process was
driven by our operational staff, who experience fatigue
and its consequences first hand.
40 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

OUR PEOPLE
271
TOTAL
PERMANENT
STAFF*
31
PEOPLE HAVE
WORKED AT THE PORT
FOR 20
+
YEARS
1,005
SAFETY
OBSERVATIONS
MADE
18
%
OF
STAFF ARE
FEMALE
82
%
OF
STAFF ARE
MALE
41
%
NEW STAFF
IN THE 2019
FINANCIAL YEAR
3,794
HEALTH & SAFETY
INDUCTIONS
COMPLETED
33
%
OF STAFF
ARE UNDER
40 YEARS
218
PLACES ON
HEALTH AND SAFETY
COURSES
97
%
OF PORT
STAFF NOW
SHAREHOLDERS
* at 30 September 2019
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 41

42 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

ENVIRONMENTAL,
SOCIAL AND
GOVERNANCE
Napier Port is committed to collaborating with others to ensure our people, planet and place thrive.
At Napier Port, we want to leave a positive legacy for future generations. This year, we completed a Sustainability Framework,
focused on what we can achieve locally to respond to global challenges like climate change, gender equality, and ocean
conservation. The framework will guide the development of a sustainability strategy for Napier Port over the next 18 months.
The framework focuses on four interconnected themes:
PEOPLE
MANAAKITANGA
We are focused on the
safety, wellbeing/hauora and
development of our people
and our community.
PLANET
KAITIAKITANGA
We are focused
on protecting/tiaki
and enhancing the
environment/taiao
in which we operate.
PROSPERITY
ŌHANGA ORA
We are focused on sustainable
business growth and supporting
the prosperity of our region.
PARTNERSHIPS
RANGAPŪ
We are focused on
authentic partnerships
with our community,
stakeholders and mana
whenua hapū.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 43

The themes of our Sustainability Framework are aligned
to the United Nations Sustainable Development Goals,
a set of 17 goals that aim to address urgent environmental,
political and economic challenges facing our world.
Napier Port has identified 14 goals that we could make
a meaningful contribution to at a local level, and we will
work with our team and our stakeholders to confirm
these goals and the actions we will take to facilitate
sustainable growth for our customers and our region
in the years ahead.
The Sustainability Framework gives a strong foundation
on which to build a more detailed strategy, as well
as providing a robust structure for our existing ESG
programme. Initiatives that have delivered real gains
in the past year include:
PROTECTING PENGUINS
This year, we opened New Zealand’s first on-port
sanctuary for penguins. Napier Port has a colony of kororā
(little blue penguins) living on and around the port, with
a number of nests in the area earmarked for 6 Wharf.
We are committed to protecting the kororā throughout
the construction period and beyond, and have established
a 750-square metre sanctuary with the goal of growing
the kororā population. Trained handlers will move penguins
still nesting in the 6 Wharf area to the sanctuary before
construction begins with the goal of ensuring we protect
and enhance Hawke’s Bay’s kororā population during
and beyond the project.
The sanctuary is a predator-controlled environment
designed in collaboration with Dr John Cockrem,
a renowned penguin expert based at Massey University.
Designed to mimic an ideal natural breeding ground, it
includes native plantings, buried nesting burrows, and a
ramp directly into the harbour. Nesting boxes, which have
been shown to have greater breeding success rates than
natural burrows, were built and painted by Napier Central
School pupils, mana whenua hapū, and Napier Port families.
With nesting season now underway, the penguins
are settling into their new burrows and will be closely
monitored by our Environment team. The colony will
become part of a long-term Massey University research
study, contributing to the international body of knowledge
on kororā and helping to better protect the nationally
at-risk species in future.
ENERGY-EFFICIENT SOLUTIONS
After a successful trial at Napier Port’s Thames Street II
depot, the first LED light tower was erected on-port this
year. This is the first step in a staged roll-out that will see
all our light towers converted to LED in the future. The
LED technology is specifically designed for demanding
operating environments like ports, and comes with a fully-
automated service which brings both cost savings and
safety improvements. Consuming just 580 watts,
LED lighting requires less than half the energy of
traditional HID lighting while producing 60% more light,
and requires little maintenance.
SUPPORTING OUR COMMUNITY
Napier Port is proud to give back to the community around
us. This year, we continued our support of the Napier Port
Ocean Swim, the Napier Port Harbour to Hills triathlon,
and the Napier Port Family Fishing Classic. We also
supplied a safety waka for the Atea-a-Rangi Trust,
and equipment for the Ocean Beach Kiwi Surf Life
Saving Club and The Old Customhouse museum.
We also supported our local industry through sponsorship
of the Napier Port Hawke’s Bay Primary Sector Awards,
the Export Awards, the Young Farmer of the Year Contest,
and the New Zealand Maritime Pilots Association
Conference, all of which were held in Hawke’s Bay.
RESTORING OUR WETLANDS
Napier Port is proud to have been part of developing
a new wetland at Waitangi Regional Park, providing a
sanctuary for native fish and birdlife. Our people have
been part of the project from the early stages, with
Infrastructure and Environment team members lending
their skills and expertise to make the project a success.
The project was a partnership between Hawke’s Bay
Regional Council, Te Wai Mauri Trust and
Ngāti Kahungunu representatives, with the design
and build taking two years. The completed wetland
is around 15 hectares, and has transformed an empty
space into a haven of biodiversity.
44 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

CARBON EMISSIONS
This year, our total carbon emissions were 8,428 tonnes
or 0.03107 T/CO2e per TEU, down from 8,716 tonnes
in 2018. This decrease is primarily due to a change in
the emissions factors set down by the New Zealand
Government, which dictate how carbon emissions
are calculated. Using the emissions factors
required prior to the change shows an increase
to 8,937 tonnes.
REDUCING WASTE
As part of our journey towards
sustainability, we are committed to
finding ways to reduce, reuse, recycle
and repurpose our waste. Through
a long-running partnership with
local firm BioRich, 4,621 tonnes
of waste bark from our log yard was
repurposed into mulch, to be used
on orchards, gardens, and planting
projects around our region. We also
work with local construction firms
to repurpose their waste concrete
into safety barriers, preventing
it from going to landfill.
This year, we sent 296 tonnes
of waste to landfill, and recycled
20 tonnes. This is a 72% reduction in
our overall waste since last year, thanks
primarily to a concentrated effort to
reduce the volume of stony bark that goes
to landfill. But we’re not stopping there –
as our sustainability work progresses, we will
be exploring more innovative ideas for reducing
waste and lessening our impact on the environment.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 45

BOARD OF DIRECTORS
ALASDAIR MACLEOD
Independent Director and Chair
HND (Civil), MBA, MInstD
Alasdair joined the Napier Port board
in 2014 and was appointed Chair
in December 2014. Originally a
civil engineer, Alasdair has a broad
range of experience across the
energy, infrastructure, technology
and primary sectors. As a Partner
at Deloitte for 12 years, Alasdair
led the teams that developed New
Zealand’s Aquaculture Strategy,
Horticulture Strategy and Red Meat
Sector Strategy. Alasdair is chair
of technology businesses Optimal
Workshop Ltd and Silverstripe
Limited, and the independent
member of the Board Appointments
Committee for IHC New Zealand.
Alasdair is Chair of the Hawke’s Bay
chapter of ExportNZ (a division of
BusinessNZ) and was involved in
authoring the Hawke’s Bay Regional
Economic Strategy – Matariki.
STEPHEN MOIR
Independent Director
Stephen was appointed as a director of
Napier Port on 19 December 2016 and
chairs the Audit and Risk Committee.
Stephen brings an extensive
background in institutional banking
and financial markets, having held
senior roles at Westpac Institutional
Bank, Credit Suisse (Singapore)
and Citibank (Singapore, Thailand
and Australia).
Stephen is a director of The
Guardians of the New Zealand
Superannuation Fund and a director
of the Todd Family Office. He was
previously a non-executive director
on the BNZ board, and chaired both
BNZ Life Insurance Ltd and BNZ
Insurance Services Ltd, as well as
the advisory board to the Victoria
University Chair of Business in Asia.
Stephen was previously a member of
the NZ Markets Disciplinary Tribunal.
JOHN HARVEY
Independent Director
BCom, FCA, CFInstD
John joined the Napier Port board
on 7 February 2019. John has a
background in financial services,
including NZX listings, acquisitions,
mergers and financial reporting,
with over 35 years’ professional
experience as a Chartered
Accountant. He was a partner
at PricewaterhouseCoopers for
23 years, including eight years as
Auckland Managing Partner.
John is a Chartered Fellow of
the Institute of Directors in New
Zealand and is currently a director
of Heartland Bank, Investore
Property, Stride Property Group and
Kathmandu Holdings. He previously
served on the board of Port Otago
for nine years, and has been a
director of Ballance Agri-Nutrients
and APN News and Media.
WENDIE HARVEY
Independent Director
LLB, MInstD
Wendie joined the Napier Port board
on 16 December 2013, and has over
25 years’ experience as a lawyer,
executive manager and business
consultant.
Wendie is currently a director of
Hawke’s Bay Airport, Hawke’s
Bay Construction Limited (Chair),
Centralines Limited, ETCO
(Electrical Training Company Limited)
and Aurora Energy Limited. Wendie
also serves on the Eastern Institute
of Technology Council, the Board of
Fire and Emergency New Zealand,
and as a Commissioner on the New
Zealand Gambling Commission. She
has previously served on the board
of Quality Roading Services (Wairoa)
Limited, Hohepa Homes National
Trust Board and the Hawke’s Bay
Rescue Helicopter Trust.
Resigned 3 October 2019.
VINCENT TREMAINE
Independent Director
BBus, FCPA, FAICD, GAIST
Vincent joined the Napier Port board
on 7 February 2019. Vincent has
broad experience in the port sector,
having served for 16 years as CEO
of Flinders Ports Holdings, which
owns seven South Australian ports,
the Adelaide Container Terminal and
Flinders Logistics.
Vincent is currently Chair of Riverland
Holdings and a director of South
Australia’s Statewide Super. He has
served as Chair of Ports Australia
and the South Australian Chamber
of Commerce and Industry, and as
a director of Australia’s National
Heavy Vehicle Regulator. Vincent
also worked for Toll Ports and
Resources, managing the ports of
Geelong and Hastings in Victoria.
HON RICK BARKER
Director
MPP
Rick joined the Napier Port board
on 27 June 2019. Rick serves as the
Deputy Chair of the Hawke’s Bay
Regional Council, having
been elected as a councillor for
Hastings in October 2013. He was
previously a Member of Parliament
for 18 years, serving six years as
a Cabinet Minister and also acting
as Assistant Speaker of the House
during his tenure.
Rick is currently working on behalf
of the Minister for Treaty of Waitangi
Negotiations to settle historic
grievances against the Crown.
Rick completed a Master’s Degree
in Public Policy in 2012.
46 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

DIANA PUKETAPU
Independent Director
FCA, CMInstD
Diana joined the Napier Port board
on 13 December 2017, and has
a background in commercial, iwi
and sports governance. Diana is
a director of Ngāti Porou Holding
Company, Tāmaki Redevelopment
Company, Manawanui Support
Limited, the New Zealand Olympic
Committee and NZ Cricket. She
has previously served as a director
of Auckland Council Investments
Limited and the World Masters
Games 2017, and was formerly
the Chief Financial Officer of
Ngāti Whātua Ōrākei Corporate.
Diana is a Fellow of Chartered
Accountants Australia New Zealand
and a Chartered Member of the
Institute of Directors in New Zealand.
BLAIR O’KEEFFE
Director
BBS (Hons), MInstD
Blair was appointed as a director
of Napier Port on 27 June 2019.
Blair is a professional company
director, with governance experience
in local and central government,
and NZX-listed companies.
He is currently a director of NZX-
listed Z Energy. He is also the former
Chair of Crown entity Maritime
New Zealand and was Chief
Executive of CentrePort for seven
years. He is currently Chief Executive
of the Hawke’s Bay Regional
Investment Company (HBRIC),
Chair of the Hawke’s Bay Rescue
Helicopter Trust and a director of
Central Air Ambulance Limited.
From top left: Alasdair MacLeod, Stephen Moir,
John Harvey, Wendie Harvey, Vincent Tremaine,
Rick Barker, Diana Puketapu, Blair O’Keeffe
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 47

SENIOR MANAGEMENT
From top left: Todd Dawson, Kristen Lie, David Kriel, Viv Bull, Adam Harvey,
Warren Young, Andrea Manley, Michel de Vos, Bruce Lochhead
TODD DAWSON
Chief Executive
BSC, PGDipBus, MInstD, PMP
Todd joined Napier Port as Chief Executive Officer in
January 2018, bringing broad commercial experience
across the transport and logistics sectors. Prior to Napier
Port, Todd led strategic partnerships and new ventures
at Kotahi Logistics, working on the introduction of big
ships to New Zealand and intermodal freight hub joint
ventures. He has over 20 years’ experience behind him,
having worked on international projects including the
transformation of UK supermarket Sainsbury’s supply
chain. He has previously held senior roles at IBM,
Toll New Zealand and Mainfreight.
Todd holds a Bachelor of Science and a Postgraduate
Diploma of Business in Operations Management from the
University of Auckland. He is a member of the Institute
of Directors in New Zealand and is Chair of Napier Port’s
intermodal joint venture Manawatū Inland Port and director
of Total Advantage Group in Auckland.
48 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

KRISTEN LIE
Chief Financial Officer
BBS, CA, CFA, CMInstD
Kristen joined Napier Port as Chief Financial Officer
in September 2015. Kristen has more than 20 years’
financial experience and strong commercial and strategic
planning skills. Kristen returned to Hawke’s Bay after some
18 years working across London, Moscow and Oslo. His
previous roles have been with the London-based office
of listed shopping centre group Westfield, London-based
property investment company Grosvenor, as well as Ernst
& Young and PricewaterhouseCoopers.
Kristen holds a Bachelor of Business Studies from Massey
University and is a Chartered Accountant, a Chartered
Financial Analyst, and a Chartered Member of the Institute
of Directors in New Zealand.
DAVID KRIEL
General Manager – Commercial
MSc, FCILT
David joined Napier Port as General Manager –
Commercial in 2018. David has a background in transport
and logistics and worked with Lodestar and Oji Fibre
Solutions from 2005 to 2018.
David is a Fellow of the Chartered Institute of Transport
and Logistics. He is a member of the East Asian Society
for Transport Studies and the Humanitarian Logistics
Association. David sits on the board of Business
Hawke’s Bay as the Napier Port representative.
VIV BULL
General Manager – Culture and Community
MSc (Hons)
Viv joined Napier Port in 2011 and leads our human
resources, health and safety, and communications
functions. Her career has included senior management
roles with the Department of Corrections, KPMG and the
State Services Commission.
Viv is Deputy Chair of the Hawke’s Bay Chamber of
Commerce and is an independent member of the audit
and risk committee of the Heretaunga Tamatea Settlement
Trust. She holds a Master of Science in Psychology from
the University of Canterbury.
ADAM HARVEY
General Manager – Marine and Cargo Operations
BA, BCA
Adam joined Napier Port in 2010 and is responsible for
including the log operation, logistics and planning, security
and shipping operations. He has a background in human
resources and prior to his current position, was Napier
Port’s Container Terminal Manager.
Adam holds a Bachelor of Commerce in Management
and Economics and a Bachelor of Arts in Geography and
Psychology, both from the University of Otago. He sits on
the executive of the Port Industry Association.
WARREN YOUNG
General Manager – Container Operations
CA
Warren joined Napier Port in 1998, and is responsible for
Napier Port’s container terminal, the Port Pack operation,
our empty depot network and Plant Services. Warren
has previously served as Napier Port’s Finance Manager
and as manager of Port Pack. Prior to joining Napier Port,
Warren was Chief Financial Officer at Montana Wines.
Warren is a Chartered Accountant, and a member of
Chartered Accountants Australia and New Zealand.
ANDREA MANLEY
General Manager – Strategy and Innovation
BSc/BCom, MZIMR I & II, DipBA
Andrea joined Napier Port in 2019. She is responsible for
leading strategic planning and performance, identifying
growth opportunities, implementing new strategic
initiatives and developing digital solutions. Andrea has
previously worked with Kotahi Logistics, Goodman Fielder,
Alcatel-Lucent, Brightstar, Vodafone and IBM.
Andrea holds a Bachelor of Science in Statistics,
Management Science and Operations Research from
the University of Auckland and a Diploma in Business
Administration from Henley Management College. She is
a Non-Executive Director of Pacificomm, a member of the
University of Auckland Strategic Supply Chain Programme
Advisory Group and a founding member of the Auckland
Women in Supply Chain Network.
MICHEL DE VOS
General Manager – Infrastructure Services
BEng (Nav Arc), GDip (Maritime and Logistics
Management)
Michel joined Napier Port in April 2014. Michel
is responsible for the maintenance, planning and
construction of all port infrastructure, as well as
overseeing our environmental management programme.
Michel has a background in marine engineering, having
held roles with Queensland’s Gladstone Ports Corporation
and Fremantle Ports in Perth, as well as working with
multi-national dredging and maritime construction firms
on projects throughout Asia.
BRUCE LOCHHEAD
Capability and Cruise Manager
BA (Econ)
Bruce is responsible for the development of our cruise
operation and will oversee the future integration of major
infrastructure investments. Bruce has more than 30 years’
experience in the shipping sector and prior to joining
Napier Port in 2005, worked across the globe for
P&O Nedlloyd.
Bruce holds a Bachelor of Arts in Economics from Massey
University and sits on the board of the New Zealand
Cruise Association.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 49

50 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

FINANCIAL
STATEMENTS
AND OTHER
DISCLOSURES
CORPORATE GOVERNANCE STATEMENT 52
OTHER DISCLOSURES 60
CONSOLIDATED INCOME STATEMENT 65
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME 66
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY 67
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION 68
CONSOLIDATED STATEMENT
OF CASH FLOWS 69
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS 71
FINANCIAL SUMMARY 98
AUDITOR’S REPORT 99
DIRECTORY 103
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 51

NAPIER PORT HOLDINGS LIMITED
CORPORATE
GOVERNANCE STATEMENT
The Board of Napier Port Holdings Limited (the
Company) and its subsidiaries (collectively the Group)
are responsible for the corporate governance of the
Group. Corporate governance describes how a company
looks after the interests of its shareholders and other
stakeholders.
The Board is committed to maintaining best practice
governance policies and behaviours. This Corporate
Governance Statement sets out the corporate governance
policies, practices, and processes of the Group as at
18 November 2019 and has been approved by the Board.
The Group’s policies, practices and processes are
reviewed against the best practice principles included
in the NZX Corporate Governance Code 2019 (NZX
Code). The Board’s view is that the Group’s corporate
governance policies, practices and processes generally
follow the recommendations of the NZX Code. This
Corporate Governance Statement includes disclosure
of the extent to which the Group has followed each
of the recommendations in the NZX Code.
Further information about the Group’s corporate
governance framework is available on the Group’s Investor
Centre (www.napierport.co.nz).
PRINCIPLE 1 –
CODE OF ETHICAL BEHAVIOUR
“Directors should set high standards of ethical behaviour,
model this behaviour and hold management accountable
for these standards being followed throughout the
organisation”.
CODE OF ETHICS
Recommendation 1.1: The Board should document
minimum standards of ethical behaviour to which the
issuer’s Directors and employees are expected to adhere
(a code of ethics).
The Board and management are committed to ensuring
the Group adheres to best practice governance principles
and maintains the highest ethical standards. The Group’s
code of ethics sets out the manner in which directors and
employees should conduct themselves. The code of ethics
incorporates the requirements set out in recommendation
1.1 of the Code and forms part of the induction process
for all new employees.
The Board recognises good governance is not merely a
matter of achieving legislative compliance but ensuring
that exemplary standards and behaviour are maintained.
This involves the establishment and maintenance
of a culture at a Board and senior management level
and throughout the Group to ensure that directors
and employees deal fairly with others, with transpare
ncy, and protect the interests of shareholders and look
after the rights of stakeholders.
SHARE TRADING POLICY
Recommendation 1.2: An issuer should have a financial
product dealing policy which applies to employees and
directors.
The Group has adopted a Share Trading Policy which sets
out the responsibilities of all directors, officers, employees,
personal services contractors, and secondees of Napier
Port Holdings Limited and its subsidiaries for trading
in the Company’s securities within a listed company
environment. The Share Trading Policy is available on
the Group’s website. This policy is separate from, and
in addition to, the legal prohibitions on insider trading
in New Zealand, and does not replace legal obligations.
Insider trading is prohibited at all times. Directors and
employees who possess material information must not
trade in securities, advise or encourage another person
to trade or hold the Company’s securities, advise or
encourage a person to advise or encourage another
person to trade or hold the Company’s securities,
or directly or indirectly disclose or pass on the material
information to anyone else, knowing that the other person
will or is likely to use that information to trade in the
Company’s securities.
Restricted persons including the Directors, Chief
Executive Officer, Senior Management Team, Trusts and
Companies controlled by these persons, and anyone else
notified by the Chief Financial Officer, have additional
trading restrictions. Restricted persons are prohibited
from trading in securities during specific “black-out”
periods, from 30 days prior to the Group’s half-year and
year-end balance dates to the first trading day after the
release of the respective periods results to the NZX,
30 days prior to the release of a product disclosure
statement for a general public offer, or such other period
as determined by the Board.
During any other period restricted persons who do not
possess material information may trade the Company’s
securities subject to notification and consent requirements.
Restricted persons may not trade until this written consent
has been received.
52 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

PRINCIPLE 2 –
BOARD COMPOSITION
AND PERFORMANCE
“To ensure an effective Board, there should be a balance
of independence, skills, knowledge, experience and
perspectives”.
BOARD CHARTER
Recommendation 2.1: The Board of an issuer should
operate under a written charter which sets out the roles
and responsibilities of the Board. The Board charter
should clearly distinguish and disclose the respective
roles and responsibilities of the Board and Management.
The Board has adopted a formal Board Charter which
sets out the respective roles, responsibilities, composition
and structure of the Board, and this is available on the
Group’s website.
The Board is ultimately responsible for setting the
strategic direction of the Group, oversight of the
management of the Group and direction of its business
strategy, with the ultimate aim being to operate the
Group as a successful business, while respecting the
rights of other stakeholders. This includes establishing
the strategies and financial objectives with the Senior
Management Team, monitoring the performance of the
Senior Management Team, monitoring compliance and risk
management, and ensuring the Group has the appropriate
controls and policies in place.
The Board delegates the day-to-day affairs and
management responsibilities of the Group to the Chief
Executive Officer and Senior Management Team to deliver
the strategic direction and goals determined by the Board.
NOMINATION AND APPOINTMENT OF DIRECTORS
Recommendation 2.2 and 2.3: Every issuer should
have a procedure for the nomination and appointment
of Directors to the Board. An issuer should enter into
written agreements with each newly appointed Director
establishing the terms of their appointment.
The Board have delegated to the Remuneration and
Nomination Committee the responsibility to make
recommendations to the Board in respect of Board and
committee composition and, when required, identify
individuals believed to be qualified to become Board
members. Procedures for the appointment and removal of
directors are set out in the Remuneration and Nomination
Committee Charter. To be eligible for selection the
candidates must demonstrate appropriate qualities and
experience, and the Committee must be satisfied that a
candidate will commit the time needed to be fully effective
in their role. The Committee will ensure proper checks as
to the proposed Director’s character, experience, education,
criminal record and bankruptcy history are conducted
and key information about the proposed Director is
provided to shareholders to assist their decision as
to whether or not to elect or re-elect the Director.
The whole Board will have the opportunity to consider
candidates for appointment to the Board. Directors may
be appointed by the Board to fill vacancies or director
nominations may be made by shareholders for election at
the Annual Meeting of Shareholders. Directors appointed
by the Board must stand for re-election at the next Annual
Meeting of Shareholders. The NZX Listing Rules and the
Group’s constitution requires that all directors stand for
re-election at the Annual Meeting of Shareholders within
three years of last being elected. The Group enters into
a written agreement with each newly appointed director
establishing the terms of their appointment.
DIRECTORS
Recommendation 2.4: Every issuer should disclose
information about each Director in its annual report or
on its website, including a profile of experience, length
of service, independence and ownership interests and
Director attendance at Board meetings.
The Board currently comprises seven directors; an
independent Chair, four directors who are independent,
and two other non-executive directors. A profile of
experience for each director, including length of service,
is available on the Group’s website and included in the
Annual Report. Director’s ownership interests are included
in the Other Disclosures section of the Annual Report
on page 62.
ATTENDANCE AT BOARD
AND COMMITTEE MEETINGS
For the year ended 30 September 2019
1
Board
Audit and Risk
Management Committee
Remuneration and
Nomination Committee
Health and Safety
Committee
Number of meetings held12442
Alasdair MacLeod124
2
42
Wendie Harvey
3
104
2
42
Diana Puketapu12432
Stephen Moir124-2
Vincent Tremaine
4
921
2
2
John Harvey
4
822
2
2
Blair O’Keeffe
5
4--1
Hon Rick Barker
5
3--1
Chinthaka Abeywickrama
6
21--
1. The board and committee meeting attendance above include meetings
of the board and committees of Port of Napier Limited prior to the
incorporation of Napier Port Holdings Limited on 12 June 2019.
2. Non-committee members also in attendance.
3. Wendie Harvey resigned as Director of Port of Napier Limited and
Napier Port Holdings Limited on 3 October 2019.
4. Vincent Tremaine and John Harvey were appointed as Directors of Port
of Napier Limited on 7 February 2019.
5. Blair O’Keeffe and Hon. Rick Barker were appointed as Directors of Port
of Napier Limited and Napier Port Holdings Limited on 27 June 2019.
6. Chinthaka Abeywickrama resigned as Director of Port of Napier Limited
on 23 November 2018
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 53

DIVERSITY
Recommendation 2.5: An issuer should have a written
diversity policy which includes requirements for the
Board or a relevant committee of the Board to set
measurable objectives for achieving diversity (which,
at a minimum, should address gender diversity) and
to assess annually both the objectives and the entity’s
progress in achieving them. The issuer should disclose
the policy or a summary of it.
The Group has a diversity policy which defines the
approach of the Group towards diversity and inclusion.
It also identifies the responsibilities of the Board, the
Senior Management Team and all of the Group’s
employees. The diversity policy is available on the website.
The Group recognises the value of a diverse and skilled
workforce and is committed to embedding diversity and
inclusion into employment practices and all aspects of
the Group’s operations. The Board, Senior Management
Team, Managers and Supervisors, and Human Resources
will collectively and individually treat all employees equally.
The Group will foster an environment which encourages
a variety of different viewpoints and backgrounds.
The Board has not reviewed its progress against its
Diversity and Inclusion Policy as at the date of this Annual
Report as the Diversity and Inclusion Policy was adopted
by the Group when Napier Port Holdings Limited was
listed on 20 August 2019. The diversity of the Board,
Senior Management Team and the Group’s employees
will be reviewed annually against agreed metrics by the
Board. Where necessary and appropriate, initiatives will
be implemented to improve diversity.
The following is a breakdown of the gender composition
of the Group at the balance date:
2019*2018*
FemaleMaleFemaleMale
No. %No.%No.%No.%
Directors225675233467
Senior
Management Team
225675114686
Permanent employees461721783381620184
Total501822982411621184
* as at 30 September
DIRECTOR TRAINING
Recommendation 2.6: Directors should undertake
appropriate training to remain current on how to best
perform their duties as Directors of the issuer.
The Board seeks to ensure that any new Directors are
appropriately introduced to the Senior Management
Team and the Group’s business, that all Directors are
acquainted with relevant industry knowledge, and receive
appropriate company documents to enable them
to perform their role as a Director.
Directors will receive induction training upon appointment, and
are expected to maintain appropriate levels of financial, legal
and industry understanding throughout their appointment.
BOARD EVALUATION
Recommendation 2.7: The Board should have
a procedure to regularly assess Director, Board
and Committee performance.
The Board undertakes a biennial performance evaluation
of itself that discusses and assesses the performance of
each Director and the Chair, compares the performance
of the Board as a whole with the requirements of the
Board Charter, reviews the performance of the Board’s
Committees, and effects any improvements to the
respective Charters deemed necessary or appropriate.
The performance evaluation is conducted in the manner
the Board deems appropriate. The last Board evaluation
was completed in November 2018.
Recommendation 2.8 and 2.9: A majority of the
Board should be independent directors. An issuer
should have an independent Chair of the Board. If the
Chair is not independent, the Chair and CEO should
be different people.
The Board currently comprises seven directors, five
of whom have been determined to be “Independent
Directors” by the Board under the NZX Listing Rules. The
Chair of the Board is an Independent Director and is not
the Chair of the Audit and Risk Management Committee.
PRINCIPLE 3 –
BOARD COMMITTEES
“The Board should use committees where this will
enhance its effectiveness in key areas, while still retaining
Board responsibility”.
AUDIT AND RISK MANAGEMENT COMMITTEE
Recommendation 3.1: An issuer’s audit committee
should operate under a written charter. Membership on
the audit committee should be majority independent
and comprise solely of non-executive directors of the
issuer. The chair of the audit committee should be an
independent director and not the chair of the Board.
The Audit and Risk Management Committee operates
under a written charter, which is available on the Group’s
website. The Committee is required to have a majority of
independent non-executive directors, at least two must
have an accounting or financial background, and the
Committee is required to meet at least two times per year.
The Chair of the Committee is an Independent Director
who is not the Chair of the Board. The Audit and Risk
Management Committee currently comprises Stephen
Moir (Chair), Diana Puketapu, Vincent Tremaine and
John Harvey. All directors may attend the Committee
meetings at their discretion.
The Audit and Risk Management Committee’s purpose
is to assist the Board in fulfilling its responsibilities
to discharge its financial reporting and regulatory
responsibilities, ensure the ability and independence
of the external auditor to carry out its statutory audit
role, ensure an effective internal audit and internal
control system is maintained, and ensure an appropriate
framework is maintained for the management of strategic
and operational risk.
54 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

Recommendation 3.2: Employees should only attend
audit committee meetings at the invitation of the audit
committee.
The Chief Executive Officer, Chief Financial Officer and
any other employees the Audit and Risk Management
Committee considers necessary to provide appropriate
information and explanations may attend the Committee
on invitation. The Group’s external auditor also attends
meetings at the Committee’s invitation.
REMUNERATION AND NOMINATION COMMITTEE
Recommendation 3.3 and 3.4: An issuer should have a
remuneration committee (which operates under a written
charter) unless this is carried out by the whole board. At
least a majority of the remuneration committee should
be independent directors. Management should only
attend remuneration committee meetings at the invitation
of the remuneration committee. An issuer should
establish a nomination committee to recommend director
appointments to the Board (unless this is carried out by
the whole board), which should operate under a written
charter. At least a majority of the nomination committee
should be independent directors.
The Remuneration and Nomination Committee operates
under a written charter, which is available on the Group’s
website. The Committee consists of at least three
members of the Board, the majority of the committee
which are required to be Independent Directors. The
Committee is required to meet at least two times per
year. The Chair of the Committee is an Independent
Director. The Remuneration and Nomination Committee
currently comprises Alasdair MacLeod (Chair), Diana
Puketapu, Stephen Moir, Vincent Tremaine, Blair O’Keeffe.
All directors of the Board may attend the Committee
meetings at their discretion. The Chief Executive will act
as secretary to the Committee and other members of
management may attend the Committee on invitation.
The primary responsibilities of the Committee include,
nominating and appointing directors to the Board,
remuneration of directors, remuneration and evaluation of
the Chief Executive Officer, review of the Chief Executive
Officer’s remuneration recommendations for the Senior
Management Team, review of the overall Group’s salary
and incentive policies, and succession planning.
HEALTH AND SAFETY COMMITTEE
Recommendation 3.5: An issuer should consider
whether it is appropriate to have any other board
committees as standing board committees. All
committees should operate under written charters.
An issuer should identify the members of each of its
committees, and periodically report member attendance.
Health and safety is a strong priority for the Napier Port
Board of Directors and health and safety performance is
actively reviewed at every board meeting. The Group also
has a Health and Safety Committee whose purpose is to
assist the Board in fulfilling its responsibilities in respect
of the health, safety and wellness requirements within
the Health and Safety at Work Act 2015 and regulatory
framework. The Health and Safety Committee operates
under a written charter, which is available on the Group’s
website. The Health and Safety Committee operates in
the context of the vision that every person goes home
safely every day, a culture of care, and strategic objectives
relating to people, place and planet.
The Committee consists of all members of the Board,
and is required to meet at least four times per year.
The Chair of the Committee is not the Chair of the Board.
The current Chair of the Committee is Vincent Tremaine.
The Committee may on invitation have in attendance
members of management including the General Manager
Culture and Community, and other persons including
senior health and safety staff, that it considers necessary
to provide necessary information and explanations.
The Chief Executive Officer and the General Manager
Culture and Community are responsible for drawing
to the Committee’s immediate attention any material
matter that relates to notifiable events and significant
near misses or incidents.
TAKEOVER POLICY
Recommendation 3.6: The Board should establish
appropriate protocols that set out the procedure to be
followed if there is a takeover offer for the issuer including
any communication between insiders and the bidder.
The Board should disclose the scope of independent
advisory reports to shareholders. These protocols should
include the option of establishing an independent
takeover committee, and the likely composition and
implementation of an independent takeover committee.
Given the Group’s shareholding structure, with the
Hawke’s Bay Regional Council (Council), indirectly
controlling approximately 55% of the shares of the Group,
the Board considers it highly unlikely that a third-party
would make a takeover approach or proposal without
the support of Council. Notwithstanding this, the Board
consider it prudent to have protocols in place and has
established formalised takeover response protocols
to assist the Group to prepare for, and respond to any
unsolicited approaches or proposals it may receive in
relation to a takeover. These protocols would help to
inform the Board of their roles and responsibilities with
respect to any approach or proposal, assist the Board
and its advisers in developing and executing a response
strategy, and act as a basic guide on the process
for any takeover offer.
In the event of a takeover offer, a Takeover Response
Committee, would be convened comprising independent
directors, management and appropriate financial, legal
and strategic advisers.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 55

PRINCIPLE 4 –
REPORTING AND DISCLOSURE
“The Board should demand integrity in financial and non-
financial reporting, and in the timeliness and balance of
corporate disclosures”.
CONTINUOUS DISCLOSURE
Recommendation 4.1: An issuer’s board should have
a written continuous disclosure policy.
As a company listed on the NZX Stock Exchange, the
Company is committed to keeping the market informed
of all material information relating to the Group and
its shares. In doing so, the Group will comply with its
obligations in relation to continuous disclosure of material
information under the NZX Listing Rules. The Group has
a Continuous Disclosure Policy, which is available on the
Group’s website.
CHARTERS AND POLICIES
Recommendation 4.2: An issuer should make its code
of ethics, board and committee charters and the policies
recommended in the NZX Code, together with any other
key governance documents, available on its website.
Information about the Group’s corporate governance
framework (including Code of Ethics, Board and
Committee Charters, and other key governance policies)
are available to view on the Group’s website.
FINANCIAL AND NON-FINANCIAL REPORTING
Recommendation 4.3: Financial reporting should be
balanced, clear and objective. An issuer should provide
non-financial disclosure at least annually, including
considering environmental, economic and social
sustainability factors and practices. It should explain
how operational or non-financial targets are measured.
Non-financial reporting should be informative, include
forward looking assessments, and align with key
strategies and metrics monitored by the Board.
FINANCIAL REPORTING
The Audit and Risk Management Committee oversees
the quality and integrity of financial reporting ensuring
the financial reporting is balanced, clear and objective.
The Audit and Risk Management Committee’s
responsibility for the annual and interim financial
statements includes, reviewing the quality and
acceptability of accounting policies and practices,
reporting disclosures and changes thereto, reviewing
areas involving significant judgement, estimation or
uncertainty, overseeing compliance with financial reporting
standards, appropriate laws and regulations, assessing
the overall performance of financial management,
and approving all financial reporting to shareholders
and other stakeholders.
NON-FINANCIAL REPORTING
The Group is committed to implementing a comprehensive
environmental, social and governance (ESG) framework. The
Group has begun preparatory work and are working towards
developing our strategy during the 2020 financial year.
PRINCIPLE 5 –
REMUNERATION
“The remuneration of directors and executives should be
transparent, fair and reasonable”.
DIRECTORS’ REMUNERATION
Recommendation 5.1: An issuer should recommend
director remuneration to shareholders for approval in
a transparent manner. Actual director remuneration
should be clearly disclosed in the issuer’s annual report.
The Remuneration and Nomination Committee is
responsible to biennially review Director’s remuneration
to determine whether Director remuneration is appropriate.
This review is required to consider benchmarking data
from similar listed companies.
In conjunction with Napier Port Holdings Limited listing
on the NZX, with effect from 1 September 2019, and
in respect of both their roles as directors of Napier Port
Holdings Limited and Port of Napier Limited, fees in
aggregate for all Directors are $655,000 per annum.
Under Listing Rule 2.11.3, if the total number of Directors
subsequently increases, the Directors are permitted
(without seeking shareholder approval) to increase the total
remuneration by the amount necessary to enable the Group
to pay the additional Director or Directors remuneration not
exceeding the average amount then being paid to each
of the existing Directors (other than the Chair).
Actual remuneration of Directors is included in the Other
Disclosures section of the Annual Report on page 62.
REMUNERATION POLICY
Recommendation 5.2: An issuer should have a remuneration
policy for remuneration of directors and officers, which
outlines the relative weightings of remuneration components
and relevant performance criteria.
The Group has adopted a Remuneration Policy which sets
out the remuneration principles that apply to the Directors,
Chief Executive Officer and Senior Management team.
The policy requires that remuneration decisions are fair
and reasonable and based on merit, where appropriate.
The Group will not discriminate on the grounds of gender,
race, religion or belief, disability, age, sexual orientation
or gender identity. Remuneration will be set at levels that
recognise an individual’s market value (i.e. level of skills
and experience, the demand for skill and performance
in the role, and the commercial environment).
56 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

DIRECTORS
The Group’s policy is that all remuneration of Directors will
be paid in cash, they will not receive any performance-
based remuneration or retirement benefits. All Directors
(excluding the Chair) will be paid a base fee and additional
fees will be payable to the Chairs of the Audit and Risk
Management, Remuneration and Nomination, and Health
and Safety Committees and the Chair a Chairs’ fee, all
as recommended by the Remuneration and Nomination
Committee and approved by Shareholders from time to
time. Included in the aggregate fee sum approved by
Shareholders is an additional sum available for application
by the Board to respond to extra work undertaken by
directors outside of their base fee work.
CHIEF EXECUTIVE OFFICER (CEO)
AND SENIOR MANAGEMENT TEAM
Determination of remuneration for the CEO and Senior
Management team is subject to a fair and thorough
process. Remuneration will be determined by the scale
and complexity of the relevant employee’s role. An annual
remuneration review is undertaken by the Remuneration
and Nomination Committee annually.
Under the Group’s remuneration framework, individual
performance and market relativity are key considerations,
balanced by the context in the which the Group operates.
Remuneration of the CEO and Senior Management
team, include a mix of fixed and variable components.
A summary of the current provisions is as follows:
– Fixed remuneration – this includes the relevant
employee’s base salary and cash allowances and any
direct non-cash benefits (e.g. Kiwisaver contributions,
health insurance and annual leave);
– Other variable remuneration – Some Senior
Management team positions, including the CEO, are
eligible for additional remuneration from Long Term
Incentive (LTI) and Short Term Incentive (STI) plans.
Eligibility is determined by the Board of Directors
and the CEO. The terms and conditions of any STI
or LTI plan are identified in the individual employment
agreements of the Senior Management team member
to whom it applies.
The remuneration policy is reviewed by the Board annually.
CHIEF EXECUTIVE OFFICER (CEO) REMUNERATION
Recommendation 5.3: An issuer should disclose the
remuneration arrangements in place for the CEO in its
annual report. This should include disclosure of the base
salary, short-term incentives and long-term incentives and
the performance criteria used to determine performance-
based payments.
The remuneration of the CEO for the year ended
30 September 2019 is included in the Other Disclosures
section of the Annual Report on page 62.
The remuneration of the CEO includes a mix of fixed and
variable components. Fixed remuneration includes a base
salary, life insurance and superannuation contributions.
Variable components include a Short Term Incentive
(STI) linked to objectives set annually and performance
assessed by the Board and Long Term Incentive (LTI).
The LTI grants share rights to the CEO that will vest
at the completion of a three year vesting period. The
proportion of share rights that will actually vest depends
on the CEO’s continuous employment during the vesting
period, the achievement of certain EBITDA targets over
the prospective financial information period (2 years), and
total shareholder return (TSR) hurdles over the vesting
period (including Group’s TSR performance relative
to the NZX50 index).
PRINCIPLE 6 –
RISK MANAGEMENT
“Directors should have a risk management framework for
its business and the Board’s should receive and review
regular reports. An issuer should report the material risks
facing the business and how these are being managed”.
RISK MANAGEMENT
Recommendation 6.1: An issuer should have a risk
management framework for its business and the issuer’s
board should receive and review regular reports.
An issuer should report the material risks facing the
business and how these are being managed.
The Board and Senior Management Team are committed
to managing risk to protect our people, the environment,
financial business risks, company assets and our
reputation. The Audit and Risk Management Committee is
responsible for ensuring that management is implementing
the Group’s risk management framework and policies.
The Group has a comprehensive risk management system
in place which is used to identify and manage business
risks. The system identifies the key risks facing the
Group and the status of initiatives employed to reduce
them. Management report to the Board periodically, on
the effectiveness of the Group’s management of these
material risks. As part of risk management the Group
also has a comprehensive treasury policy that sets out
procedures to minimise financial market risk. The Group
maintains insurance policies that it considers adequate
to meet insurable risks.
HEALTH AND SAFETY
Recommendation 6.2: An issuer should disclose how it
manages its health and safety risks and should report on
its health and safety risks, performance and management.
The Group aims to be the safest port environment
in New Zealand and ensuring that everyone working
at Napier Port returns safely to their families every day.
To ensure a safe and healthy work environment,
the Group has developed and maintains a health
and safety management system that will manage safety
performance and promote a safety culture.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 57

Managing safety performance will be achieved by:
– Setting health and safety objectives and performance
criteria for all work areas, tracking performance
through lead and lag indicators, identifying trends
and implementing appropriate responses;
– Ensuring our health and safety framework is reviewed
at least annually;
– Actively encouraging accurate and timely reporting of all
accidents, incidents, near misses and unsafe conditions;
– Ensuring all reported accidents, incidents, near misses
are investigated and root cause analyses conducted;
– Ensuring risk assessments are conducted, controls
are identified and implemented based on those
assessments and where necessary updated where risks
or controls may have changed;
– In the event of an injury ensuring the Group takes an
active role in employee’s safe and early return to work;
– Ensuring the company meets its obligations under
the Health and Safety at Work Act 2015, associated
regulations, codes of practice and standards and
guidelines regulating worker health and safety.
Promoting a safety culture by:
– Supporting a “Just Culture” philosophy where health
and safety is supported and promoted through enabling
worker participation, ensuring adequate resources are
allocated to health and safety initiatives and providing
training and information about specific health and safety
risks; and
– Promoting continuous improvement and good practice
in health and safety.
Every Director or Officer, Senior Manager, Middle
Manager, Team Leader/Supervisor and worker is expected
to share in this commitment to this policy by following the
duties and responsibilities specified in the Napier Port
Health and Safety Duties and Responsibilities Policy.
PRINCIPLE 7 –
AUDITORS
“The Board should ensure the quality and independence
of the external audit process”.
EXTERNAL AUDIT
Recommendation 7.1 and 7.2: The Board should
establish a framework for the issuer’s relationship with
its external auditors. This should include procedures
prescribed in the NZX Code. The external auditor should
attend the issuer’s annual meeting to answer questions
from shareholders in relation to the audit.
The Audit and Risk Management Committee is responsible
for the oversight of the Group’s external audit arrangements.
These arrangements include procedures for the matters
described in Recommendation 7.1 of the NZX Code.
Subject to any requirements of the Auditor General, the
Audit and Risk Management Committee is responsible
for, recommending the appointment and removal of the
independent auditor. The Committee is also responsible
for reviewing the independence of the external auditors
and the appropriateness of any non-audit services
they undertake, having direct communication with, and
unrestricted access to, the independent auditor, and
ensuring that the key audit partner (as defined in the
NZX Listing Rules) is rotated every five years.
The auditor of the Group is the Auditor General.
The Auditor General may approve external audit firms
to undertake the external audit of the Group. The Group’s
external auditor is EY. The total fees paid to EY in their
capacity as auditor are disclosed in the Annual Report
on page 74.
The group invites EY to attend the Annual Meeting of
Shareholders and the audit partner is available to answer
shareholder questions about the conduct of their audit
and the preparation and content of the auditor’s report.
INTERNAL AUDIT
Recommendation 7.3: Internal audit functions should
be disclosed.
The Audit and Risk Management Committee is
responsible for ensuring an effective internal audit
programme and internal control system is maintained.
These responsibilities include reviewing the objectives
and scope of the internal audit programme, ensuring these
are aligned with Napier Port’s overall risk management
framework, and reviewing significant matters reported
by the internal audit programme and how management
is responding to them.
The Group engages external providers to undertake
internal audits.
PRINCIPLE 8 –
SHAREHOLDER RIGHTS AND RELATIONS
“The Board should respect the rights of shareholders
and foster constructive relationships with shareholders
that encourage them to engage with the issuer”.
SHAREHOLDER INFORMATION
Recommendation 8.1: An issuer should have a website
where investors and interested stakeholders can access
financial and operational information and key corporate
governance information about the issuer.
The Group is committed to providing shareholders with
all information necessary to assess the Group’s direction
and performance.
This is done through a range of communication methods,
including continuous disclosure to NZX, half-year and
annual reports and the Annual Shareholders’ Meeting.
The Group’s website provides company and financial
information, information about its directors, and copies
of its governance documents for shareholders and other
interested stakeholders to access at any time.
58 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

Recommendation 8.2: An issuer should allow investors
the ability to easily communicate with the issuer, including
providing the option to receive communications from the
issuer electronically.
Shareholders have the option of receiving their
communications electronically, including by email.
The Group is committed to open dialogue with
shareholders and welcomes investor enquiries.
Recommendation 8.3 and 8.4: Quoted equity security
holders should have the right to vote on major decisions
which may change the nature of the issuer in which they
are invested. If seeking additional equity capital, issuers
of quoted equity securities should offer further equity
securities to existing equity security holders of the same
class on a pro rata basis, and on no less favourable terms,
before equity securities are offered to other investors.
In accordance with the Companies Act 1993, the
Company’s constitution, the NZX Listing Rules, and other
applicable laws, the Group refers any significant matters
to Shareholders for approval at a Shareholders’ meeting.
Recommendation 8.5: The Board should ensure that the
notices of annual or special meetings of quoted equity
security holders is posted on the issuer’s website as
soon as possible and at least 20 working days prior
to the meeting.
The Group posts any Notices of Shareholder Meetings
as soon as possible and seeks, where possible,
to provide these at least 20 working days prior
to the Shareholders’ meeting.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 59

NAPIER PORT HOLDINGS LIMITED
OTHER DISCLOSURES
PRINCIPAL ACTIVITIES
The other disclosure information below has been prepared for Napier Port Holdings Limited and its subsidiaries
(the Group). Napier Port Holdings Limited (the Company) was incorporated on 12 June 2019 and is the parent company
of Port of Napier Limited. The disclosures have been prepared on the basis that the entities were combined from the
beginning of the earliest period presented. The Group’s principal activities remain the commercial operation of Napier Port.
There has been no significant change in the nature of the Group’s business during the year.
DIRECTORS’ INTERESTS
The Company is required to maintain an Interests Register in which particulars of certain transactions and matters
involving the Directors must be recorded. The matters set out below were recorded in the Interest Register of the
Company during the financial year. The Directors of the Company have declared interests in the following identified
entities as at 30 September 2019:
DirectorInterestEntity
Alasdair MacLeodChairOptimal Workshop Limited
Chair / ShareholderSilverstripe Limited
ChairHold Fast Investments Limited
MemberIHC – Board Appointments Committee
DirectorSilverstripe Trustee Limited
TrusteeBig Brothers Big Sisters Hawke’s Bay
Wendie Harvey
(resigned 3 October 2019)
ChairHawke’s Bay Airport Construction Limited
Director / ShareholderExcellence in Business Solutions Limited
DirectorCentralines Limited
DirectorThe Electrical Training Company Limited
DirectorHawke’s Bay Airport Limited
DirectorAurora Energy Limited
CommissionerNew Zealand Gambling Commission
Council MemberEastern Institute of Technology
Board MemberFire and Emergency New Zealand
Diana PuketapuDirectorManawanui Support Limited
DirectorNgati Porou Holding Company Limited and subsidiaries
DirectorTamaki Redevelopment Company Limited and subsidiaries
DirectorNew Zealand Cricket
DirectorNew Zealand Olympic Committee
Stephen MoirDirectorThe Guardians of NZ Superannuation Fund
DirectorTodd Family Office Limited
DirectorIJAP Limited
Vincent Tremaine ChairRiverland Water Holdings Pty Limited
Director / MemberStatewide Superannuation Pty Limited
DirectorSouthernLaunch.Space Pty Limited –Advisory Board
John Harvey DirectorHeartland Bank Limited
DirectorInvestore Property Limited
DirectorStride Property Limited
DirectorStride Investment Management Services Limited
DirectorKathmandu Holdings Limited
Blair O’Keeffe Chief Executive OfficerHawke’s Bay Regional Investment Company
ChairHawke’s Bay Rescue Helicopter Trust
DirectorCentral Air Ambulance Rescue Limited
DirectorCentral Economic Development Agency Limited
DirectorZ Energy Limited
Hon Rick BarkerDeputy Chair / CouncillorHawke’s Bay Regional Council
At 30 September 2019 no Directors, or entities related to them, had interests in shares in the Company.
60 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

DIRECTORS’ INSURANCE
All directors are beneficiaries of a company indemnity and directors’ liability insurance provided by the Company in relation
to any personal liabilities and associated costs incurred while acting in their capacity as a director of the company, other
than arising from criminal liability, where precluded by statute, or from breach of a director’s fiduciary duty to the company.
REMUNERATION
EMPLOYEE REMUNERATION
The number of employees and former employees of the Group who, during the year, received total annual remuneration
greater than $100,000 are shown below:
Remuneration rangeNumber of
employees
2019
$100,000 - $109,99922
$110,000 - $119,99924
$120,000 - $129,99926
$130,000 - $139,99912
$140,000 - $149,9998
$150,000 - $159,9994
$160,000 - $169,9992
$180,000 - $189,9992
$190,000 - $199,9991
$220,000 - $229,9991
$230,000 - $239,999-
$240,000 - $249,999-
$250,000 - $259,9993
$260,000 - $269,9993
$270,000 - $279,9991
$280,000 - $289,9991
$290,000 - $299,9991
$300,000 - $309,9991
$340,000 - $349,9991
$350,000 - $359,9991
$540,000 - $549,999-
$660,000 - $669,9991
115
The annual remuneration of employees includes salary, redundancy, performance incentive payments on achievement
of targets, employer’s contribution to superannuation, fair value of share-based payment awards and other sundry benefits
received in their capacity as employees.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 61

DIRECTORS’ REMUNERATION
Directors received the following fees and remuneration during the year
1
:
2019
$000
Alasdair MacLeod (Chairman)103,979
Stephen Moir60,782
Wendie Harvey60,782
Diana Puketapu 57,198
John Harvey
2
42,156
Vincent Tremaine
2
42,156
Blair O’Keeffe
3
13,354
Hon Rick Barker
3
13,354
Chinthaka Abeywickrama
4
7,521
Total401,282
1. The directors’ remuneration above includes fees and remuneration paid for Port of Napier Limited and Napier Port Holdings Limited (from June 2019).
From 1 September 2019, Directors fees have been set for the Chair of the Board ($135,000 per annum), Directors other than the Chair ($70,000 per
annum), and Committee Chairs (additional $10,000 per annum).
2. John Harvey and Vincent Tremaine were appointed as Directors of Port of Napier Limited on 7 February 2019.
3. Blair O’Keeffe and Rick Barker were appointed as Directors of Port of Napier Limited and Napier Port Holdings Limited on 27 June 2019.
4. Chinthaka Abeywickrama resigned as Director of Port of Napier Limited on 23 November 2018.
CHIEF EXECUTIVE OFFICER’S (CEO’S) REMUNERATION
The CEO received the following remuneration and other benefits paid during the year
1
:
2019
$000
Base salary509
Other benefits
2
19
Short Term Incentive (STI)
3
132
Fair Share Loan
4
1
Long Term Incentive (LTI)
5
4
665
1. The CEO’s base salary, other benefits and short-term incentive are based on the amounts paid during the year. The Fair Share Loan and Long Term
Incentive are based on the fair value of the awards recognised in the income statement.
2 Other benefits comprise superannuation and life insurance benefits.
3 The STI target is based on the achievement of objectives set annually and performance assessed by the Board.
4 The CEO purchased 1,923 shares with an interest-free limited recourse loan under the Fair Share Plan in August 2019.
5 In August 2019 the CEO was granted 62,307 share rights under the Executive LTI plan. These share rights have a three year vesting period and entitle
the CEO to the receipt of one Napier Port Holdings Limited ordinary share per share right at nil cost, plus additional shares to the value of any dividends
which would have been paid on the underlying shares during the vesting period. Vesting is subject to the CEO remaining employed by the Group during
the vesting period, the achievement of certain EBITDA targets over the prospective financial information period (2 years), and total shareholder return
(TSR) hurdles over the vesting period. The proportion of share rights that will actually vest depends on the Group’s TSR performance ranking relative
to the NZX50 index. To the extent that performance hurdles are not met or the CEO leaves employment of the Group prior to vesting, the share rights
will be forfeited. The above amount reflects the current period’s proportion of the total fair value of the award calculated, which is recognised on a straight-
line basis over the three-year vesting period. Further information on the Executive LTI plan is available in the document titled “Other Material Information”
forming part of the Company’s IPO documents available on the Disclose Register operated by the New Zealand Companies Office.
62 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

SHAREHOLDER INFORMATION
The ordinary shares of Napier Port Holdings Limited are listed on the NZX. The information in the disclosures below
has been taken from the Company’s registers as at 30 September 2019.
TWENTY LARGEST SHAREHOLDERS AT 30 SEPTEMBER 2019
HolderNumber of
Shares Held
% of Issued
Equity
Hawke’s Bay Regional Investment Company Limited110,000,00055.0
National Nominees New Zealand Limited
1
14,001,0167.00
JB Were (NZ) Nominees Limited4,548,6622.27
HSBC Nominees (New Zealand) Limited
1
4,000,3512.00
Citibank Nominees (New Zealand) Limited
1
3,788,0251.89
Forsyth Barr Custodians Limited3,401,3531.70
JP Morgan Chase Bank
1
2,800,8731.40
BNP Paribas Nominees NZ Limited
1
2,783,8021.39
Accident Compensation Corporation
1
2,542,2221.27
Custodial Services Limited <4 A/C>2,228,3381.11
Custodial Services Limited <3 A/C>2,020,0191.01
TEA Custodians Limited
1
1,766,9160.88
FNZ Custodians Limited1,746,3550.87
PT Booster Investments Nominees Limited1,506,4260.75
Tatau Tatau Commercial Limited1,442,3070.72
Private Nominees Limited
1
1,211,6410.61
MMC Limited
1
1,036,5380.52
New Zealand Permanent Trustees Limited
1
968,2000.48
Custodial Services Limited <2 A/C>923,8960.46
Investment Custodial Services Limited 909,0950.45
Total163,626,03581.78
1. Shareholdings held in New Zealand Central Securities Depository Limited (NZCSD). The total holding at 30 September 2019 in NZCSD
was 39,624,580.
DISTRIBUTION OF ORDINARY SHARES
HolderNumber of
Holders
Number of
Shares Held
% of Issued
Equity
1 – 5,0008,39116,591,0568.30
5,001 – 10,0005263,883,2571.94
10,001 – 100,0002235,022,5472.51
100,001 and over33174,503,14087.25
Total9,173200,000,000100.00
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 63

GEOGRAPHIC DISTRIBUTION
HolderNumber of
Holders
Number of
Shares Held
% of Issued
Equity
New Zealand9,152198,985,26299.49
Australia16905,2380.45
Other5109,5000.06
Total9,173200,000,000100.00
SUBSTANTIAL SECURITY HOLDERS
The following information is given in accordance with sub-part 5 of Part 5 of the Financial Markets Conduct Act 2013.
According to notices received, the following persons were substantial product holders in the Company
as at 30 September 2019.
HolderNumber of
Shares Held
Date of
substantial
product
holder
notice
% of
Issued
Equity
Hawke’s Bay Regional Investment Company Limited110,000,00020 August
2019
55%
SUBSIDIARY COMPANY DIRECTORS
All directors of Napier Port Holdings Limited are also directors of Port of Napier Limited (the subsidiary of the Company).
DONATIONS
During the year the Company made donations of $nil (2018: $nil) and subsidiaries made donations amounting
to $nil (2018: $nil).
WAIVERS FROM NZX LISTING RULES
Napier Port Holdings Limited has not obtained or relied on any waivers from NZX Listing Rules in the financial year ended
30 September 2019.
AUDIT FEES AND OTHER SERVICES
Under Section 19 of the Port Companies Act 1988, the Auditor-General is the auditor of the Company. The Auditor-
General has appointed Ernst & Young to undertake the audit on its behalf, pursuant to Section 15 of the Public Act 2001.
Fees paid to the auditors are disclosed in the financial statements in note 5.
CREDIT RATING
Napier Port Holdings Limited does not have a credit rating at the date of this Annual Report.
EXERCISE OF NZX DISCIPLINARY POWERS
NZX did not exercise any of its powers under Listing Rule 9.9.3 in relation to the Company in the financial year ended
30 September 2019.
64 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

The above income statement should be read in conjunction with the accompanying notes
NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2019 2018
Notes $000 $000
Revenue 4 99,616 91,749
Employee benefit expenses 29,454 26,352
Maintenance expenses 9,073 9,236
Other operating expenses 5 19,102 17,250
Operating expenses 57,629 52,838
Results from operating activities 25 41,987 38,911
Depreciation, amortisation and impairment expenses 16,17 12,171 10,984
Other (income) and expenses 5 (135) (709)
IPO transaction and related costs 6,404 -
Share of loss and impairment of investment in joint venture 19 1,080 94
Profit before finance costs and tax 22,467 28,542
Net finance costs 6 10,437 4,107
Profit before income tax 12,030 24,435
Income tax expense 7 5,182 6,859
Profit for the period attributable to the shareholders of the Company 6,848 17,576
EARNINGS PER SHARE:
Basic earnings per share 9 0.06 0.16
Diluted earnings per share 9 0.06 0.16
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 65

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2019 2018
Notes $000 $000
Profit for the period attributable to the shareholders of the Company 6,848 17,576
Other comprehensive income
Items that will be reclassified to profit or loss:
Changes in fair value of cash flow hedges (2,835) (1,814)
Cash flow hedges transferred to profit or loss 8,345 1,440
Deferred tax on changes in fair value of cash flow hedges 8 (1,543) 105

Items that will not be reclassified to profit or loss:
Deferred tax on revaluation of sea defences 8 4,374 -
Total comprehensive income for the period attributable
to the shareholders of the Company 15,189 17,307
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
66 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Share

CapitalRevaluation ReserveHedging

ReserveShare-based

Payment ReserveRetained

EarningsTotal Equity
Notes $000 $000 $000 $000 $000 $000
Balance at 1 October 2018 21,000 71,077 (3,823) - 124,158 212,412
Profit for the period - - - - 6,848 6,848
Other comprehensive income - 4,374 3,967 - - 8,341
Total comprehensive income
for the period - 4,374 3,967 - 6,848 15,189
Business reorganisation 11 - - - - (63,900) (63,900)
Dividends (pre initial public offering) 10 - - - - (53,957) (53,957)
Issue of ordinary shares 11 234,000 - - - - 234,000
Transaction costs arising
on share issuance 11 (7,045) - - - - (7,045)
Acquisition of treasury shares 21,11 (323) - - - - (323)
Fair share loans to employees 21,11 (1,228) - - - - (1,228)
Share-based payments 21 - - - 333 - 333
Total transactions with owners
in their capacity as owners 225,404 - - 333 (117,857) 107,880
Total movement in equity 225,404 4,374 3,967 333 (111,009) 123,069
Balance at 30 September 2019 246,404 75,451 144 333 13,149 335,481
Balance at 1 October 2017 21,000 71,077 (3,554) - 116,582 205,105
Profit for the period - - - - 17,576 17,576
Other comprehensive income - - (269) - - (269)
Total comprehensive income
for the period - - (269) - 17,576 17,307
Dividends 10 - - - - (10,000) (10,000)
Total transactions with owners
in their capacity as owners - - - - (10,000) (10,000)
Total movement in equity - - (269) - 7,576 7,307
Balance at 30 September 2018 21,000 71,077 (3,823) - 124,158 212,412
The above statement of changes in equity should be read in conjunction with the accompanying notes.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 67

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2019
2019 2018
Notes $000 $000
EQUITY
Share capital 11 246,404 21,000
Reserves 11 75,928 67,254
Retained earnings 13,149 124,158
335,481 212,412
NON-CURRENT LIABILITIES
Loans and borrowings 14 - 80,491
Deferred tax liability 8 18,436 21,848
Lease liabilities 20 734 -
Derivative financial instruments 24 - 3,731
Provisions for employee entitlements 13 436 417
19,606 106,487
CURRENT LIABILITIES
Bank overdraft - 109
Taxation payable 3,358 2,003
Lease liabilities 20 200 -
Derivative financial instruments 24 - 1,579
Trade and other payables 12 12,471 9,369
16,029 13,060
371,116 331,959
NON-CURRENT ASSETS
Property, plant and equipment 17 317,185 309,612
Intangible assets 16 1,110 1,336
Investment in joint venture 19 - 850
Investment properties 18 8,200 7,970
326,495 319,768
CURRENT ASSETS
Cash and cash equivalents 31,224 -
Derivative financial instruments 24 200 -
Trade and other receivables 15 13,197 12,191
44,621 12,191
371,116 331,959
On behalf of the Board of Directors, who authorised the issue of these financial statements on the 18th November 2019.

Chairman Director
The above statement of financial position should be read in conjunction with the accompanying notes.
68 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2019 2018
$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers 99,132 90,705
Cash was applied to:
Payments to suppliers and employees (56,028) (50,602)
IPO transaction and related costs (5,643) -
Net finance costs paid (3,287) (4,348)
Income taxes paid (4,407) (6,820)
Net GST paid (431) (571)
Net cash flows generated from operating activities 29,336 28,364
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Proceeds from sale of property, plant and equipment 162 95
Cash was applied to:
Acquisition of property, plant and equipment and intangible assets (17,419) (15,589)
Investment in joint venture (230) (110)
Net cash flows used in investing activities (17,487) (15,604)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Proceeds from issue of ordinary shares 234,000 -
Cash was applied to:
Net repayment of loans and borrowings (80,500) (3,100)
Termination of interest rate swaps (7,141) -
Acquisition of treasury shares (323) -
Fair Share loans to employees to acquire shares (1,228) -
Transaction costs arising on share issuance (6,646) -
Borrowing establishment costs (632) -
IPO proceeds transferred to HBRIC as part consideration for shares of PONL (63,900) -
Dividends paid (53,957) (10,000)
Repayment of lease liabilities (189) -
Net cash flows generated from/ (used in) financing activities 19,484 (13,100)
Net increase/ (decrease) in cash and cash equivalents 31,333 (340)
Cash and cash equivalents at beginning of the year (109) 231
Cash and cash equivalents at end of the year 31,224 (109)
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 69

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Reconciliation of profit for the period to cash flows from operating activities
2019 2018
$000 $000
Profit for the period 6,848 17,576
Adjust for non-cash items:
Fair value gains (230) (685)
Depreciation and amortisation 11,981 10,849
Impairment of assets 190 135
Net loss/(gain) on sale of property, plant and equipment (15) (24)
Share of loss and impairment from investment in joint venture 1,080 94
Share-based payments 333 -
Other non-cash items 9 -
Deferred tax (581) 291
12,767 10,660
Other adjustments:
Termination of interest rate swaps included in financing activities 7,141 -
Increase/(decrease) in current tax 1,355 (252)
Increase in non-current provisions 19 47
8,515 (205)
Movements in working capital:
Increase in trade and other receivables (374) (300)
Increase in trade and other payables 1,580 633
1,206 333
Net cash flows generated from operating activities 29,336 28,364
The above statement of cash flows should be read in conjunction with the accompanying notes.
70 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NAPIER PORT HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1 REPORTING ENTITY
The financial statements presented are those of
Napier Port Holdings Limited and its subsidiaries
(together ‘the Group’). Napier Port Holdings Limited
is incorporated under the Companies Act 1993 and
domiciled in New Zealand. Napier Port Holdings Limited’s
shares are publicly traded on the New Zealand Stock
Exchange (NZX).
2 BASIS OF PREPARATION
The financial statements have been prepared in
accordance with the Companies Act 1993, Financial
Reporting Act 2013 and the Financial Markets Conduct
Act 2013.
STATEMENT OF COMPLIANCE WITH NZ IFRS
The financial statements have been prepared in
accordance with Generally Accepted Accounting Practice
in New Zealand (NZ GAAP). The Group is a for-profit
entity for NZ GAAP purposes. The financial statements
comply with New Zealand equivalents to International
Financial Reporting Standards (NZ IFRS), other Financial
Reporting Standards as applicable to the Group as a
for-profit entity, and International Financial Reporting
Standards (IFRS).
BASIS OF MEASUREMENT
The financial statements have been prepared on a
historical cost basis, except for sea defences, investment
properties and derivative financial instruments, which are
measured at fair value.
FUNCTIONAL AND PRESENTATION CURRENCY
The financial statements are presented in New Zealand
Dollars (NZD), which is the Group’s functional and
presentation currency and are rounded to the nearest
thousand dollars ($’000), unless otherwise stated.
USE OF JUDGEMENTS AND ESTIMATES
In applying the Group’s accounting policies, management
is required to make judgements, estimates and
assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities,
income and expenses. The estimates and judgements
are continually evaluated and are based on historical
experience and other factors, including expectations
of future events that may have a financial impact
on the entity and are believed to be reasonable
under the circumstances. Actual results may differ
from these estimates.
In particular, significant areas of estimation and critical
judgements in applying accounting policies that have
a significant effect on the amounts recognised in the
financial statements are as follows:
• Valuation of sea defences (note 17)
• Estimation of useful lives and residual values for
depreciation expense (note 17)
• Deferred taxes (note 8)
• The application of pooling of interests method to
transactions carried out under common control (note 3)
• The allocation of IPO transaction and related costs
between equity raising costs (deducted from equity)
and those expense (note 11).
Assessments of materiality require judgement and
includes consideration of relevant qualitative and
quantitative factors. Information that is considered material
and relevant to understanding these financial statements
is included within the notes accompanying the financial
statements.
3 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The principal accounting policies applied in the
preparation of these financial statements are set out
below or, where an accounting policy is directly related
to an individual note, within the accompanying notes
to the financial statements. These policies have been
consistently applied to the years presented unless
otherwise stated.
BASIS OF CONSOLIDATION
The consolidated financial statements comprise the
financial statements of the Group at 30 September 2019
and 30 September 2018.
Subsidiaries are those entities over which the Group has
control. Control is achieved when the Group is exposed,
or has rights, to variable returns from its investment in the
entity, and has the ability to affect those returns through its
power over the entity.
The financial statements of the subsidiaries are
prepared for the same reporting period as the Parent,
using consistent accounting policies. The effects of
intercompany transactions are eliminated in preparing the
consolidated financial statements.
ANNUAL REPORT 2019 – TE PŪRONGOĀ-TAU 2019 / 71