Container Volumes Continue to Grow

28 February 2020
Container Volumes Continue to Grow at
New Zealand’s International Hub Port
Profits hold steady and cargo growth still expected long-term

Port of Tauranga today announced stable profitability for the first six months of the 2020 financial year,
despite total cargo volumes dipping 4.2% to just under 13.3 million tonnes.

Group Net Profit After Tax was $48.3 million, which was 1.4% lower than the same period the previous
year. Adjusting for the impact of adopting new accounting standard NZ IFRS 16 for leases, which
reduced profit after tax for the period by $0.587 million, comparative earnings were 99.8% of the prior
corresponding period.

Container numbers increased 3.4% to 642,209 TEUs
1
for the six months to December 2019.
Transhipment, where cargo is transferred from one ship to another at Tauranga, increased 3.7%. This
trend continues to consolidate Port of Tauranga’s position as New Zealand’s international hub port.

Highlights and Challenges
For the six months to 31 December 2019:

• Group Net Profit After Tax of $48.3 million, a 1.4% decrease
• Total trade decreased 4.2% to 13.3 million tonnes
• Container volumes up 3.4% to 642,209 TEUs
• Transhipment increased 3.7%
• Subsidiary and Associate Company earnings increased 17.2%
• Log exports down 8.4% to 3.4 million tonnes
• Dairy exports up 6.3% to 1.2 million tonnes
• Imports decreased 6.7% to nearly 4.7 million tonnes
• Exports decreased 2.6% to 8.6 million tonnes
• Interim dividend of 6 cents, the same as the previous period’s dividend.

Port of Tauranga Limited Chair, David Pilkington, said the mid-year results represented another solid
financial performance from the Company as cargo volumes fluctuated.

“Total trade was down 4.2%, but we managed to increase revenue 1.2% to $154.8 million for the six
months,” said Mr Pilkington.

“The longer-term outlook remains for cargo growth, particularly in containerised cargo, so our next stage
of capacity expansion is already under way,” said Mr Pilkington.

Port of Tauranga has just taken delivery of its ninth container crane and will extend its container terminal
wharves by up to 220 metres by converting cargo storage land to the south of the existing berths.

Future stages of expansion will be driven by cargo volume growth and will primarily involve rail-mounted
electric stacking cranes and additional ship-to-shore cranes.

1
TEUs = twenty foot equivalent units, a standard measure of shipping containers

2



Port of Tauranga and Tainui Group Holdings plan to form a 50:50 joint venture to develop the Ruakura
Inland Port at Hamilton over the next few years. The joint venture will take a 50 year ground lease and
aims to open the inland port to coincide with the completion of the nearby Hamilton section of the
Waikato Expressway, currently scheduled for the end of 2021.

The 30 hectare Ruakura Inland Port is complemented by a 192 hectare logistics and industrial precinct.
The joint venture follows the signing last year of a rail services agreement enabling Port of Tauranga
cargo trains to call at the freight hub.

Port of Tauranga’s senior executives continue to work with the Ministry of Transport and other upper
North Island ports on a report to Cabinet due in May. The report will examine the recommendation by
the Upper North Island Supply Chain Working Group that Ports of Auckland’s cargoes be shifted to
Northport in Whangarei.

Port of Tauranga has the space and transport networks available to accommodate Auckland’s vehicle
imports and other bulk cargoes. The Port’s container terminal also has future capacity of up to 2.8 to
3.0 million TEUs with investment in stacking cranes and other technology.

Cargo trends
Despite the increase in containerised trade, global commodity cycles have seen exported cargo
decrease 2.6% to 8.6 million tonnes
2
. The volume of imported goods handled by Port of Tauranga
decreased 6.7% to nearly 4.7 million tonnes over the six month period.

Log exports were down 8.4% on the previous corresponding period, to 3.4 million tonnes, following a
period of lower international prices and demand. However, our relative market share has continued to
strengthen when compared with other New Zealand ports. Sawn timber exports decreased 3.3% in
volume, pulp and paper exports increased 8.4% in volume.

Dairy product exports increased 6.3% to 1.2 million tonnes for the six month period. Frozen meat
exports increased 10.8% in volume.

Imported fertilisers and dairy stock feed supplements decreased by 11.6% and 18.4% respectively.
Grain imports increased 15.2% in volume. Imported oil products decreased 8.1%.

Ship visits decreased by 7.4%, from 842 to 780 for the period.

Subsidiary and Associate Company performance
Earnings from Subsidiary and Associate Companies increased 17.2%, driven by strong performances
from Northport (up 9.7%) and PrimePort Timaru (up 29.2%). Quality Marshalling also performed solidly
and Coda Group returned to profitability in the second quarter.

Operational developments
In addition to the expansion of the container terminal, Port of Tauranga has acquired cargo storage
space at the Mount Maunganui wharves. The Port has acquired a cold store, previously occupied by
Fonterra. The 2.4 hectare warehouse will be converted into dry cargo storage suitable for vehicle
imports and other bulk cargoes.

As well as the new container crane, Port of Tauranga has taken delivery of the first of seven new
straddle carriers, three of which are hybrid models that are expected to be 30% to 40% more fuel
efficient than the current diesel-electric models.

2
Total exports for the six months ended 31 December 2018 were adjusted to 8.8 million tonnes following a change to the
measurement of kiwifruit exports due to increased containerisation

3



As the Port continues its efforts to become more fuel efficient and reduce carbon emissions, it has
added another three electric or hybrid vehicles to its light vehicle fleet. The Port sources biodiesel for
its other operational equipment.

Shipping air pollution will be reduced by new low sulphur fuel limits introduced internationally on 1
January 2020. Ships must use compliant exhaust gas cleaning systems or use low sulphur fuel, which
is now available at Port of Tauranga.

Appointment of new Commercial Manager
Port of Tauranga today announced the appointment of a new Commercial Manager. Blair Hamill, who
is currently Zespri International’s Chief Global Supply Officer, will join the Company in July after 20
years with the world’s largest marketer of kiwifruit.

Outlook
The full impact on trade from the coronavirus outbreak is yet to be determined. We are in constant
communication with our customers and the flow-on effect is likely to vary considerably by cargo.

Log exports have been hit hardest, as volumes were already impacted by lower international prices and
demand since the middle of 2019. Log inventories in China have surged due to the extended Chinese
New Year shutdown. There have been shipping cancellations and delays as a result and we expect this
to continue into March.

Port of Tauranga continues to be well positioned to weather market fluctuations, as its customers are
primarily large forest owners, who are less susceptible to commodity pricing volatility than smaller, at-
wharf-gate log exporters.

The trade outlook for the second half of the 2020 financial year remains uncertain and dependent on
the duration of the market shutdown in China and any slowdown in the other countries taking extreme
measures to manage the coronavirus risk.

Given the market uncertainty, we are reducing our full year profit guidance from $96 - $101 million to
$94 - $99 million.


For further details, contact:
Mark Cairns, Chief Executive
Port of Tauranga Limited
Ph: 07 572 8829
http://www.port-tauranga.co.nz/category/current-news/




About Port of Tauranga
Port of Tauranga, headquartered in the Bay of Plenty, is New Zealand’s largest port and international freight
gateway. It operates wharves in Tauranga, Mount Maunganui and Timaru, as well as MetroPort Auckland, a
rail-linked inland port in South Auckland and MetroPort Christchurch, an intermodal freight hub in Rolleston.
The Port of Tauranga Group includes: Quality Marshalling (100% ownership), a cargo services company; Coda
(50% ownership), a freight logistics group; Northport (50% ownership), the deep water commercial port in
Whangarei; PrimePort Timaru (50% ownership), the commercial port in Timaru; Timaru Container Terminal
(50.1% ownership), which leases and operates the terminal at Timaru; and PortConnect (50% ownership), an
online cargo management system. For more information, please visit www.port-tauranga.co.nz

---

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


1

CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2019


(Unaudited)
Six Months
Ended
31 December
2019

Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2018

Group
NZ$000
(Audited)
Year
Ended
30 June
2019
Group
NZ$000



Total operating revenue 154,774
152,996 313,263



Contracted services for port operations
(31,814)
(32,292) (63,775)
Employee benefit expenses
(20,170)
(18,939) (38,275)
Direct fuel and power expenses
(5,203)
(5,291) (10,752)
Maintenance of property, plant and equipment
(6,834)
(4,889) (11,979)
Other expenses
(7,678)
(7,680) (15,312)
Operating expenses (71,699)
(69,091) (140,093)
Results from operating activities 83,075
83,905 173,170



Depreciation and amortisation
(14,669)
(13,830) (27,585)
Impairment of property, plant and equipment
0
0 (499)

(14,669)
(13,830) (28,084)



Operating profit before finance costs, share
of profit from Equity Accounted Investees
and taxation
68,406
70,075 145,086



Finance income
132
185 417
Finance expenses (refer note 7)
(9,763)
(9,071) (18,594)
Net finance costs (9,631)
(8,886) (18,177)



Share of profit from Equity Accounted Investees
5,895
4,770 8,100
Profit before income tax 64,670
65,959 135,009
Income tax expense
(16,354)
(16,972) (34,432)
Profit for the period 48,316
48,987 100,577



Basic earnings per share (cents)
7.2
7.3 15.0
Diluted earnings per share (cents)
7.1
7.2 14.8

These statements are to be read in conjunction with the notes on pages 7 to 15.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


2
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2019



(Unaudited)
Six Months
Ended
31 December
2019
Group
NZ$000
(Unaudited)
Six Months
Ended

31 December
2018

Group
NZ$000
(Audited)
Year
Ended
30 June
2019
Group
NZ$000


Profit for the period
48,316
48,987 100,577



Other comprehensive income

Items that are or may be reclassified to
profit or loss:


Cash flow hedge – changes in fair value
210
(2,997) (8,942)
Cash flow hedge – reclassified to profit or
loss
851
737 1,629
Share of net change in cash flow hedge
reserves of Equity Accounted Investees
96
(79) (308)

1,157
(2,339) (7,621)


Items that will never be reclassified to profit
or loss:


Asset revaluation, net of tax
0
0 72,129
Share of net change in revaluation reserves
of Equity Accounted Investees
543
288 448

543
288 72,577
Total other comprehensive income 1,700
(2,051) 64,956
Total comprehensive income 50,016
46,936 165,533

These statements are to be read in conjunction with the notes on pages 7 to 15.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


3
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2019


Share
Capital
Group
NZ$000
Share Based
Payment
Reserve
Group
NZ$000

Hedging
Reserve
Group
NZ$000

Revaluation
Reserve
Group
NZ$000

Retained
Earnings
Group
NZ$000


Total
Group
NZ$000

Balance at 30 June 2018 70,754 2,047 (9,354) 940,554 117,979 1,121,980

Adjustment on adoption of NZ IFRS
9
0 0 0 0 (274) (274)
Profit for the period 0 0 0 0 48,987 48,987
Total other comprehensive income 0 0 (2,339) 288 0 (2,051)
Total comprehensive income 0 0 (2,339) 288 48,987 46,936

Decrease in share capital (1,011) 0 0 0 0 (1,011)
Dividends paid during the period (refer
note 8)
0 0 0 0 (81,632) (81,632)
Equity settled share based payment
accrual
0 926 0 0 0 926
Total transactions with owners in
their capacity as owners
(1,011) 926 0 0 (81,632) (81,717)
Balance at 31 December 2018 69,743 2,973 (11,693) 940,842 85,060 1,086,925

Profit for the period 0 0 0 0 51,590 51,590
Total other comprehensive income 0 0 (5,282) 72,289 0 67,007
Total comprehensive income 0 0 (5,282) 72,289 51,590 118,597

Increase in share capital 14 0 0 0 0 14
Dividends paid during the period (refer
note 8)
0 0 0 0 (40,808) (40,808)
Equity settled share based payment
accrual
0 1,112 0 0 0 1,112
Revaluation surplus transferred to
retained earnings on asset disposal
0 0 0 0 45 45
Total transactions with owners in
their capacity as owners
14 1,112 0 0 (40,763) (39,637)
Balance at 30 June 2019 69,757 4,085 (16,975) 1,013,131 95,887 1,165,885

Profit for the period 0 0 0 0 48,316 48,316
Total other comprehensive income 0 0 1,157 543 0 1,700
Total comprehensive income 0 0 1,157 543 48,316 50,016

Increase in share capital 55 0 0 0 0 55
Dividends paid during the period (refer
note 8)
0 0 0 0 (83,676) (83,676)
Equity settled share based payment
accrual
0 832 0 0 0 832
Shares issued upon vesting of
management long term incentive plan
0 (1,103) 0 0 (141) (1,244)
Total transactions with owners in
their capacity as owners
55 (271) 0 0 (83,817) (84,033)
Balance at 31 December 2019 69,812 3,814 (15,818) 1,013,674 60,386 1,131,868

These statements are to be read in conjunction with the notes on pages 7 to 15.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


4
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2019



(Unaudited)
31 December
2019
Group
NZ$000
(Unaudited)
31 December
2018
Group
NZ$000
(Audited)
30 June
2019
Group
NZ$000



Assets

Property, plant and equipment (refer note 9)
1,567,172
1,454,581 1,531,211
Intangible assets
18,737
18,212 19,028
Investments in Equity Accounted Investees
133,169
133,720 132,731
Receivables
12
24 12
Total non current assets 1,719,090
1,606,537 1,682,982



Cash and cash equivalents
5,683
3,190 3,903
Receivables and prepayments
61,076
57,963 60,610
Inventories
855
528 1,366
Total current assets 67,614
61,681 65,879
Total assets 1,786,704
1,668,218 1,748,861


Equity

Share capital
69,812
69,743 69,757
Share based payment reserve
3,814
2,973 4,085
Hedging reserve
(15,818)
(11,693) (16,975)
Revaluation reserve
1,013,674
940,842 1,013,131
Retained earnings
60,386
85,060 95,887
Total equity 1,131,868
1,086,925 1,165,885



Liabilities

Loans and borrowings (refer note 10)
327,336
175,089 124,213
Derivative financial instruments
20,183
14,022 20,895
Provisions
1,828
1,836 1,783
Deferred tax liabilities
65,466
68,874 66,389
Lease liability
23,702
0 0
Total non current liabilities 438,515
259,821 213,280



Loans and borrowings (refer note 10)
175,000
280,000 322,000
Derivative financial instruments
431
946 1,138
Trade and other payables
33,891
33,770 33,688
Revenue received in advance
347
345 260
Provisions
1,386
1,531 2,178
Provision for tax
4,869
4,880 10,432
Lease liability (refer note 11)
397
0 0
Total current liabilities 216,321
321,472 369,696
Total liabilities 654,836
581,293 582,976
Total equity and liabilities 1,786,704
1,668,218 1,748,861
Net tangible assets per share (dollars per
share)
1.66
1.59 1.71

These statements are to be read in conjunction with the notes on pages 7 to 15.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


5
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2019



(Unaudited)
Six Months
Ended
31 December
2019
Group
NZ$000
(Unaudited)
Six Months
Ended
31 December
2018
Group
NZ$000
(Audited)
Year
Ended
30 June
2019
Group
NZ$000


Cash flows from operating activities

Receipts from customers
161,411
153,247 316,172
Interest received
132
184 415
Payments to suppliers and employees
(79,593)
(75,450) (151,448)
Taxes paid
(23,252)
(22,485) (34,680)
Interest paid
(8,888)
(8,495) (18,270)
Net cash inflow from operating activities 49,810
47,001 112,189


Cash flows from investing activities

Proceeds from sale of property, plant and
equipment
31
7 58
Finance lease payments received, including
interest
7
7 13
Repayment of advances from Equity Accounted
Investees
0
200 1,000
Dividends from Equity Accounted Investees
6,096
5,591 9,840
Purchase of property, plant and equipment
(25,172)
(22,291) (41,125)
Purchase of computer software assets
(347)
(115) (1,058)
Interest capitalised on property, plant and
equipment
(199)
(138) (274)
Total net cash used in investing activities (19,584)
(16,739) (31,546)


Cash flows from financing activities

Proceeds from borrowings
156,128
95,111 44,250
Repurchase of shares
(716)
(1,386) (1,386)
Repayment of borrowings
(100,000)
(45,001) (3,000)
Repayment of lease liability
(182)
0 0
Dividends paid
(83,676)
(81,632) (122,440)
Net cash used in financing activities (28,446)
(32,908) (82,576)



Net increase/(decrease) in cash held 1,780
(2,646) (1,933)
Add opening cash brought forward
3,903
5,836 5,836
Ending cash and cash equivalents 5,683
3,190 3,903

These statements are to be read in conjunction with the notes on pages 7 to 15.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


6
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
For the six months ended 31 December 2019



(Unaudited)
Six Months
Ended
31 December
2019
Group
NZ$000
(Unaudited)
Six Months
Ended

31 December
2018

Group
NZ$000
(Audited)
Year
Ended
30 June
2019
Group
NZ$000


RECONCILIATION OF PROFIT FOR THE
PERIOD TO CASH FLOWS FROM OPERATING
ACTIVITIES


Profit for the period 48,316
48,987 100,577



Adjustments for non cash and non operating
items


Depreciation and amortisation expense
14,669
13,830 27,585
Decrease in deferred taxation expense
(1,335)
(731) (1,017)
Share of surpluses retained by Equity Accounted
Investees
(5,895)
(4,770) (8,100)
Other
408
966 2,662

7,847
9,295 21,130


Less movements in working capital
(6,353)
(11,281) (9,518)
Net cash flows from operating activities 49,810
47,001 112,189

These statements are to be read in conjunction with the notes on pages 7 to 15.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


7
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2019


1 REPORTING ENTITY

Port of Tauranga Limited (the Parent Company) is a company incorporated and
domiciled in New Zealand, registered under the Companies Act 1993 and listed
on the New Zealand Stock Exchange (NZX). It is an FMC reporting entity for the
purposes of the Financial Markets Conduct Act 2013. The Parent Company,
which is designated as profit-oriented for financial reporting purposes, is an issuer
in terms of the Financial Reporting Act 2013.

The unaudited interim financial statements (the financial statements) for Port of
Tauranga Limited comprise the Port of Tauranga Limited, its Subsidiaries, and
the Group’s interest in Equity Accounted Investees (together referred to as the
Group).


2 BASIS OF PREPARATION

These financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (NZ GAAP) and New Zealand
International Accounting Standard (NZ IAS) 34 Interim Financial Reporting. They
do not include all information required for full annual financial statements and
should be read in conjunction with the annual financial statements and related
notes included in Port of Tauranga Limited’s Integrated Annual Report for the
year ended 30 June 2019.


3 SIGNIFICANT ACCOUNTING POLICIES

Other than as set out in note 11 in regard to NZ IFRS 16 adoption, the accounting
policies adopted are consistent with those followed in the preparation of the
Group’s annual financial statements for the year ended 30 June 2019.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


8
4 ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of the financial statements in conformity with NZ IAS 34 requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.

In preparing these financial statements, other than set out in note 11 in regard to
NZ IFRS 16, the significant judgements made by management in applying the
Group’s accounting policies and the key sources of estimation and uncertainty,
were the same as those applied to the Group’s consolidated financial statements
for the year ended 30 June 2019.


5 SEGMENT INFORMATION

The Group determines and presents operating segments based on the
information that is internally provided to the Chief Executive, who is the Group’s
Chief Operating Decision Maker (CODM), as defined by NZ IFRS 8 Operating
Segments.

The Group operates in three main reportable segments, being:

• Port Operations: This consists of providing and managing port services,
and cargo handling facilities through the Port of Tauranga Limited. Port
terminals and bulk operations have been aggregated together within the
Port Operations segment, due to the similarities in economic
characteristics, customers, nature of products and processes, and risks.

• Property Services: This consists of managing and maintaining the Port
of Tauranga Limited’s property assets.

• Marshalling Services: This consists of the contracted terminal operations
and marshalling activities of Quality Marshalling (Mount Maunganui)
Limited.

The three main business segments are managed separately as they provide
different services to customers and have their own operational and marketing
requirements.

The remaining activities of the Group are not allocated to individual business
segments.

The Group operates in one geographical area, that being New Zealand.

Due to the significant shared cost base of the Port activities, operating costs,
measures of profitability, assets and liabilities are aggregated and are not
reported to the CODM at a segment level, but rather at a port level, as all business
decisions are made at a “whole port level”.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


9
5 SEGMENT INFORMATION (CONTINUED)



Six Months Ended
31 December 2019
Port
Operations
Group
NZ$000
Property
Services
Group
NZ$000
Marshalling
Services
Group
NZ$000

Unallocated
(1)

Group
NZ$000
Inter
Segment
Group
NZ$000


Group
NZ$000

Revenue (external) 137,402 15,030 2,342 0 0 154,774
Inter segment revenue 0 48 6,374 0 (6,422) 0
Total segment revenue 137,402 15,078 8,716 0 (6,422) 154,774

Other income and
expenditure:

Share of profit from
Equity Accounted
Investees
0 0 0 5,895 0 5,895
Interest income 0 0 0 132 0 132
Interest expense 0 0 0 (9,699) 0 (9,699)
Depreciation and
amortisation expense
0 0 (453) (14,216) 0 (14,669)
Other unallocated
expenditure
0 0 (6,416) (71,769) 6,422 (71,763)
Income tax expense 0 0 (517) (15,837) 0 (16,354)
Total other income and
expenditure
0 0 (7,386) (105,494) 6,422 (106,458)
Total segment result 137,402 15,078 1,330 (105,494) 0 48,316

(1)
Operating costs are not allocated to individual business segments within the Parent Company.



Six Months Ended
31 December 2018
Port
Operations
Group
NZ$000
Property
Services
Group
NZ$000
Marshalling
Services
Group
NZ$000

Unallocated
(1)

Group
NZ$000
Inter
Segment
Group
NZ$000


Group
NZ$000

Revenue (external) 136,330 14,277 2,389 0 0 152,996
Inter segment revenue 0 32 6,115 0 (6,147) 0
Total segment revenue 136,330 14,309 8,504 0 (6,147) 152,996

Other income and
expenditure:

Share of profit from
Equity Accounted
Investees
0 0 0 4,770 0 4,770
Interest income 0 0 0 185 0 185
Interest expense 0 0 0 (9,005) 0 (9,005)
Depreciation and
amortisation expense
0 0 (442) (13,388) 0 (13,830)
Other unallocated
expenditure
0 0 (6,266) (69,038) 6,147 (69,157)
Income tax expense 0 0 (503) (16,469) 0 (16,972)
Total other income and
expenditure
0 0 (7,211) (102,945) 6,147 (104,009)
Total segment result 136,330 14,309 1,293 (102,945) 0 48,987

(1)
Operating costs are not allocated to individual business segments within the Parent Company.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


10
6 OPERATING REVENUE

Six Months
Ended
31 December
2019
Group
NZ$000
Six Months
Ended
31 December
2018
Group
NZ$000


Port services revenue
137,402
136,330
Rental revenue
15,030
14,277
Marshalling services revenue
2,342
2,389
Total operating revenue 154,774
152,996


7 FINANCE EXPENSES


Six Months
Ended
31 December
2019
Group
NZ$000
Six Months
Ended
31 December
2018
Group
NZ$000



Interest expense on borrowings
9,898
9,143
Less:


Interest capitalised to property, plant and
equipment
(199)
(138)

9,699
9,005



Ineffective portion of changes in fair value of
cash flow hedges
13
2
Amortisation of interest rate collar premium
43
43
Fair value movement on currency derivative
8
21
Total finance expenses 9,763
9,071


8 DIVIDENDS

The following dividends were paid by the Group:


Six Months
Ended
31 December
2019
Group
NZ$000
Six Months
Ended
31 December
2018
Group
NZ$000



Final dividend of 7.3 cents per share (2018: 7.0
cents per share)
49,661
47,618
Special dividend of 5.0 cents per share (2018:
5.0 cents per share)
34,015
34,014
Total dividends paid 83,676
81,632

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


11

9 PROPERTY, PLANT AND EQUIPMENT

Acquisitions and Disposals

During the six months ended 31 December 2019, the Group acquired assets with
a cost of $25.606 million (six months ended 31 December 2018: $21.713 million).


10 LOANS AND BORROWINGS

31 December
2019
Carrying Value
Group
NZ$000
31 December
2018
Carrying Value
Group
NZ$000


Commercial papers
170,000
180,000
Standby revolving cash advance facility
252,000
150,000
Fixed rate bonds
75,000
125,000
Multi option facility
5,000
0
Advances from employees
336
89
Total loans and borrowings 502,336
455,089



Current
175,000
280,000
Non current
327,336
175,089
Total loans and borrowings 502,336
455,089

As at 31 December 2019 the Group had $170 million of commercial paper debt
that is classified within current liabilities (2018: $180 million). Due to this
classification, the Group’s current liabilities exceed the Group’s current assets.
Despite this fact, the Group does not have any liquidity or working capital
concerns as a result of the commercial paper debt being interchangeable with
direct borrowings within the $480 million ($2018: $430 million) standby revolving
cash advance facility which is a term facility.


11 LEASES

NZ IFRS 16 Leases replaces NZ IAS 17 Leases and removes the classification
of leases as either operating leases or finance leases, for the lessee, and
consequently all leases (other than short term or low value leases), are
recognised on the balance sheet. This has resulted in the Group recognising
right-of-use assets and related lease liabilities on the statement of financial
position. As a result, payments for leases previously classified as operating
leases, which include leases of land and buildings, and vehicles, have been
reclassified from operating expenses to depreciation and interest expense.
Lessor accounting is substantially unchanged from accounting under NZ IAS 17.

The Group has adopted NZ IFRS 16 retrospectively from 1 July 2019 but has not
restated comparatives for previous periods. The reclassifications and the
adjustments arising from the new standard are therefore recognised in the
opening balance sheet on 1 July 2019. The Group has also adopted an
exemption for short term and low value leases.

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


12

11 LEASES (CONTINUED)

The lease liabilities were measured at the present value of the remaining lease
payments. Lease payments are discounted at the Group’s incremental borrowing
rate as at 1 July 2019. The weighted average incremental borrowing rate applied
to lease liabilities at 1 July 2019 was 4.0%. The right-of-use assets were
measured at the amount equal to the corresponding lease liability, with no change
in net assets.

The judgements and estimates made when adopting NZ IFRS 16 include:

- incremental borrowing rate, being the rate that the Group have to pay to
borrow the funds necessary to obtain an asset of a similar value with similar
terms and conditions; and

- lease terms, including any right of renewal where it is reasonably certain they
will be exercised.

The impact of adoption of NZ IFRS 16 on the Group’s statement of financial
position is summarised in the table below:

Six Months
Ended
31 December
2019
NZ$000



1 July 2019
NZ$000


Right-of-use assets
23,895
24,238
Lease liability
(24,099)
(24,238)

When compared to the accounting policies in the prior comparative period, the
adoption of NZ IFRS 16 on the Groups income statement for the six months
ended 31 December 2019 is summarised in the table below:


Pre
NZ IFRS 16
NZ$000

Adjustments
NZ$000
Post
NZ IFRS 16
NZ$000


Other expenses 8,330 (652) 7,678
Depreciation and amortisation 14,297 372 14,669
Finance expenses 9,279 484 9,783
Income tax expense 16,411 (57) 16,354

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


13

12 RELATED PARTY TRANSACTIONS AND BALANCES

Related party transactions and balances with related parties:

Six Months
Ended
31 December
2019
NZ$000
Six Months
Ended
31 December
2018
NZ$000


Transactions with Equity Accounted Investees

Services provided to Port of Tauranga Limited
265
234
Services provided by Port of Tauranga Limited
2,904
1,391
Accounts receivable by Port of Tauranga Limited
373
224
Accounts payable by Port of Tauranga Limited
65
9
Advances by Port of Tauranga Limited
5,319
6,119
Services provided by Quality Marshalling (Mount
Maunganui) Limited
1,919
1,920
Services provided to Quality Marshalling (Mount
Maunganui) Limited
14
0
Accounts receivable by Quality Marshalling (Mount
Maunganui) Limited
419
393
Accounts payable by Quality Marshalling (Mount
Maunganui) Limited
2
0

During the six months ended 31 December 2019, the Group entered into
transactions with companies in which Group Directors hold directorships. These
directorships have not resulted in the Group having significant influence or control
over the operations, policies, or key decisions of these companies.

No related party debts have been written off or forgiven during the period.

Controlling Entity

Quayside Securities Limited owns 54.14% (as at 31 December 2018: 54.14%)
of the issued ordinary shares in Port of Tauranga Limited.

Quayside Securities Limited is beneficially owned by Bay of Plenty Regional
Council, the Ultimate Controlling Party. Transactions with the Ultimate
Controlling Party during the period include services provided to Port of Tauranga
Limited $17,970 (six months ended 31 December 2018: $15,611).

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


14

12 RELATED PARTY TRANSACTIONS AND BALANCES
(CONTINUED)

Transactions with Key Management Personnel

The Group does not provide any non cash benefits to Directors in addition to their
Directors’ fees.

Six Months
Ended
31 December
2019
Group
NZ$000
Six Months
Ended
31 December
2018
Group
NZ$000



Directors

Directors’ fees recognised during the period
382
367


Executive Officers

Salaries and short term employee benefits
recognised during the period
1,708
1,845
Share based payments recognised during the
period
257
286


13 COMMITMENTS


Six Months
Ended
31 December
2019
Group
NZ$000
Six Months
Ended
31 December
2018
Group
NZ$000



Capital commitments

Estimated capital commitments for the Group
contracted for at the reporting date but not
provided for
3,270
14,598

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
INTERIM REPORT


15

14 FINANCIAL INSTRUMENTS

The fair value of financial instruments traded in active markets is based on quoted
market prices at the reporting date.

The fair value of financial instruments that are not traded in active markets (for
example over-the-counter derivatives) are determined by using market accepted
valuation techniques incorporating observable market data about conditions
existing at each reporting date.

The fair value of interest rate swaps is calculated as the present value of the
estimated future cash flows. The fair value of forward exchange contracts is
determined using quoted forward exchange rates at the reporting date.

Derivative financial instruments are categorised as Level 2 in the fair value
measurement hierarchy.


15 SUBSEQUENT EVENTS

An interim dividend of 6.0 cents per share has been declared subsequent to
reporting date.

---

28 February 2020
Presentation
to Analysts

Disclaimer
TheinformationinthispresentationisforinformationpurposesandhasbeenpreparedbyPortof
TaurangaLimitedwithduecareandattention. However,neithertheCompany,noranyofitsDirectors,
officers,employees,contractorsoragents,shallhaveanyliabilitywhatsoevertoanyperson,forany
lossof damageresultingfromtheuseorrelianceonthispresentation.
Theinformationcontainedin thispresentationis notintendedtoberelieduponasadvicetoinvestors
anddoesnottakeintoaccounttheinvestmentobjectives,financialsituationorneedsofanyparticular
investor.
Pastperformanceis notindicativeoffutureperformanceandnoguaranteeoffuturereturnsis implied
orgiven.
Theinformationcontainedinthispresentationshouldbeconsideredinconjunctionwiththe
Company’slatestauditedfinancialstatementswhichareavailableintheinvestorsectionofour
website.

Highlights
•Container volumes up 3.4%
•Transhipment up 3.7%
•Revenue up 1.0%
•Subsidiary & Associate Earnings up 17.2%
•Profit stable despite fall in trade volumes and higher maintenance costs
•Intention to form joint venture with Tainui to develop Ruakura Inland Port
•Upper North Island Port Study

Group Net Profit After Tax down 1.4%
$47,113
$48,987
$48,316
$0
$10,000
$20,000
$30,000
$40,000
$50,000
201720182019
IFRS16 has reduced 2019 Group NPAT by $0.587 million

Interim Dividend
5.7
6.06.0
0
2
4
6
8
201720182019
cents

Net Debt / Net Debt + Equity
31.2%
29.4%
30.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
201720182019
6 months ended 31 December 2019

Total Trade down 4.2%
12,467
13,831
13,260
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
201720182019
000s tonnes

Container Volumes up 3.4%
590,803
621,117
642,209
100,000
200,000
300,000
400,000
500,000
600,000
700,000
201720182019
TEUs

Transhipments up 3.7%
147,197
174,983
181,299
0
50,000
100,000
150,000
200,000
201720182019
TEUs

Exports – Logs down 8.4%
3,282
3,666
3,358
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
201720182019
000s tonnes

Log Vessels loading earlier this week

Exports – Kiwifruit down 8.6%
572
744
680
0
100
200
300
400
500
600
700
800
201720182019
000s tonnes

Exports – Dairy up 6.3%
1,153
1,154
1,227
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
201720182019
000s tonnes

Imports – Fertiliserdown 11.6%
333
331
293
0
50
100
150
200
250
300
350
400
201720182019
000s tonnes

Imports – Grain & Dairy Feed
Supplements Down 9.9%
726
638
575
0
100
200
300
400
500
600
700
800
201720182019
000s tonnes

Subsidiaries & Associate Companies

Subsidiaries & Associates
Net Profit After Tax up 17.2%
$7,908
$6,237
$7,310
$0
$2,000
$4,000
$6,000
$8,000
$10,000
201720182019
$000s

Northport
Earnings up 9.7%
Trade down 3.1% on last year
Containers up 24% to 7,138 TEUs

Coda Group
Tapper Transport / Priority Logistics / MetroPack / MetroBox / Dairy Transport Logistics
Earnings up $0.232 million on last year
Trading profitably last 3 months

PrimePort Timaru
Earnings up 29.2%
Major refurbishment of wharves
Planning to build new bulk berth

TimaruContainer Terminal
Container Volumes up 1.1%
NPAT down 33.9%

Quality Marshalling
NPAT up 2.9%
Good performance across all areas of the company

Cars

New Crane

Ruakura
Inland Port JV
• Joint venture with Tainui Group Holdings
• 50 year ground lease to establish inland
port
• Operational early 2022

Ruakura Inland Port JV

Purchase of Fonterra Coldstore

WinstoneWallboards
relocating to Tauranga

Upper North Island Supply Chain Study

Full Build Out ~3M TEUs

Licence to Operate in our Community

Our environment
•Short-term target 5%
reduction of Scope 1
carbon emissions per
cargo tonne during FY21
•Targeting net zero
emissions by 2050

Electric Cars - Hybrid Straddles

Climate Change –Sea Level
4.56
4.45
1.81
1.914
2.198
2.238
2.328
2.488
2.0412
2.478
2.618
3.058
3.398
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Sulphur Point WharfMount WharvesMHWSSLR 1951/2018 -
2070
RCP2.6 -2070RCP4.5 - 2070RCP8.5 - 2070RCP8.5 H - 2070SLR 1951/2018 -
2130
RCP2.6 - 2130RCP4.5 - 2130RCP8.5 - 2130RCP8.5 H - 2130
MHWS - FUTURE WATER LEVELS

Parent Capital Expenditure 2018-2022
$60,166
$16,788
$40,635
$35,000
$65,000
$100,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
201720182019202020212022
$000

Trade Outlook 2020

Outlook 2020
•Expect to handle about 1.240 million TEUs
•Revised FY20 earnings guidance reduced to be
between $94-$99 million due to effect of Corona
virus

THANK YOU

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Port of Tauranga Limited
Reporting Period 6 months to 31 December 2019
Previous Reporting Period 6 months to 31 December 2018
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$154,774 1.2%
Total Revenue $154,774 1.2%
Net profit/(loss) from
continuing operations
$48,316 (1.4%)
Total net profit/(loss) $48,316 (1.4%)
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.06000000
Imputed amount per Quoted
Equity Security
$0.02333333
Record Date 06/03/2020
Dividend Payment Date 20/03/2020
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.66 $1.59
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood

Authority for this announcement
Name of person

authorised
to make this announcement
Steven Gray, Chief Financial Officer
Contact person for this
announcement
Steven Gray, Chief Financial Officer
Contact phone number 027 245 7473
Contact email address steveg@port-tauranga.co.nz
Date of release through MAP

28/08/2020

Audited financial statements accompany this announcement.

---

Distribution Notice

Updated as at 18 December 2019



Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer Port of Tauranga Limited
Financial product name/description Ordinary shares
NZX ticker code POT
ISIN (If unknown, check on NZX
website)
NZPOTE0003S0
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 06/03/2020
Ex-Date (one business day before the
Record Date)
05/03/2020
Payment date (and allotment date for
DRP)
20/03/2020
Total monies associated with the
distribution
1

$40,811,014.32
Source of distribution (for example,
retained earnings)
Operating free cash flow
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.08333333
Gross taxable amount
3
$0.08333333
Total cash distribution
4
$0.06000000
Excluded amount (applicable to listed
PIEs)
Not applicable
Supplementary distribution amount $0.01058824
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

100%
Imputation tax credits per financial
product
$0.02333333
Resident Withholding Tax per
financial product
$0.00416667
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
%
Start date and end date for
determining market price for DRP
[dd/mm/yyyy] [dd/mm/yyyy]
Date strike price to be announced (if
not available at this time)
[dd/mm/yyyy]
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
[dd/mm/yyyy]
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Steven Gray, Chief Financial Officer
Contact person for this
announcement
Steven Gray, Chief Financial Officer
Contact phone number 027 245 7473
Contact email address steveg@port-tauranga.co.nz
Date of release through MAP

28/02/2020





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

---

u: \documents\word\pressreleases\nzx letter - interim result dec 2019.docx




28 February 2020



NZX
Wellington



Dear Sir/Madam

PORT OF TAURANGA LIMITED INTERIM RESULTS: 31 DECEMBER 2019

In accordance with the NZ Stock Exchange Listing Rules, please find attached the following
documentation for release to the market:

1 Press Release
2 Interim Financial Statements for six months ended 31 December 2019
3 Investor Presentation
4 NZX Results Announcement
5 NZX Distribution Notice
6 Market Update

Yours sincerely


Steve Gray
CHIEF FINANCIAL OFFICER

---

Our place, our future
MARKET UPDATE | FEBRUARY 2020
Scroll down to
view the report

Port of Tauranga is New Zealand’s
largest, fastest-growing and most
efficient port.
It is the international freight gateway
for the country’s imports and exports
and the only New Zealand port able to
accommodate the largest container
vessels to visit. We handle 30% of
all New Zealand cargo, 35% of New
Zealand exports and 37% of all shipping
containers.
We provide our customers with highly
effective supply chains through our
investment in other ports, inland freight
hubs, cargo handling expertise and
logistics services.
We have the people and expertise
required to deliver excellent service to
our customers, sustainable benefits
to the community and strong financial
returns to our shareholders. Port of
Tauranga is the economic anchor of the
Bay of Plenty economy, creating jobs and
wealth for the Tauranga community, the
broader region and beyond.
Our approach is grounded in the
principle of guardianship – of our
environment, our people, our community
and our future.
Port of Tauranga is New Zealand’s Port
for the Future.
Facilitating the
most efficient and
sustainable trade
to and from
New Zealand
Table of Contents
Our highlights and challenges 2
Report from the
Chair and Chief Executive 3
Port of Tauranga sponsors project
to protect native fauna 7
New container crane arrives
at Port of Tauranga 8
Consolidated Interim Financial Statements 9
Consolidated Income Statement 10
Consolidated Statement
of Comprehensive Income 10
Consolidated Statement
of Changes in Equity 11
Consolidated Statement
of Financial Position 12
Consolidated Statement of Cash Flows 13
Notes to the Consolidated
Interim Financial Statements 14
Independent Review Report 19
Company Directory 20
/1
Port of Tauranga – Interim Report 2019

Container volumes up
3.4%
to 642,209 TEUs
1
Log exports down
8.4%
to 3.4 million tonnes

Dairy exports up
6.3%
to 1.2 million tonnes

Interim dividend of
6 cents
per share
Our highlights and challenges
For the six months ended 31 December 2019
Group Net Profit After Tax
decreased
1.4%
to $48.3 million
Transhipment
increased
3.7%

Total trade down
4.2%
to 13.3 million tonnes
Increase in Subsidiary and
Associate Company earnings
17.2%
1
TEU = twenty foot equivalent units, a standard measure of shipping containers.
/2
Port of Tauranga – Interim Report 2019

Report from the
Chair and Chief Executive
Mark Cairns
Chief Executive
David Pilkington
Chair
Port of Tauranga maintained stable
profitability for the first six months of
the 2020 financial year, despite total
cargo volumes dipping 4.2% to just
under 13.3 million tonnes.
Group Net Profit After Tax was $48.3
million, which was 1.4% lower than the
same period the previous year. Adjusting
for the impact of new accounting standard
NZ IFRS 16 for leases, which reduced profit
after tax for the period by $0.587 million,
comparative earnings were 99.8% of the
prior corresonding period.
Container numbers increased 3.4%
to 642,209 TEUs for the six months to
December 2019. Transhipment, where
cargo is transferred from one ship to
another at Tauranga, increased 3.7%.
This trend continues to consolidate Port
of Tauranga’s position as New Zealand’s
international hub port.
Financial results
Revenue increased 1.0% to $154.8 million
for the six months ended December
2019. This was offset by a significant
increase in tug and crane maintenance
spending. Capital expenditure was
$25.6 million over the six months,
up $3.9 million on the previous period.
The Port of Tauranga Board has declared
a fully imputed interim dividend of
6.0 cents per share, the same as the
corresponding period last year.
Revenue increased
1.0% to $154.8 million
for the six months ended
December 2019.
/3
Port of Tauranga – Interim Report 2019

Cargo trends
Container volumes continued to
rise, up 3.4% on the previous period.
Transhipment also continued to grow,
increasing 3.7%.
Despite the increase in containerised
trade, global commodity cycles have
seen exported cargo decrease 2.6%
to 8.6 million tonnes
1
.
Imported goods handled by Port of
Tauranga decreased 6.7% to nearly 4.7
million tonnes over the six month period.
Log exports were down 8.4% on the
previous corresponding period, to 3.4
million tonnes, following a period of
lower international prices and demand.
However, our relative market share has
continued to strengthen when compared
with other New Zealand ports.
Sawn timber exports decreased 3.3%
in volume. However, pulp and paper
exports increased 8.4% in volume.
Dairy product exports increased 6.3%
to 1.2 million tonnes for the six month
period. Frozen meat exports increased
10.8% in volume.
Imported fertilisers and dairy feed
supplements decreased by 11.6% and
18.4% respectively. Grain imports
increased 15.2% in volume. Imported
oil products decreased 8.1%.
Ship visits decreased by 7.4%, from
842 to 780 for the period.
Subsidiary and Associate
Company performance
Subsidiary and Associate Company
earnings increased 17.2% over the
period, driven by strong performances
from Northport and PrimePort Timaru,
with increases of 9.7% and 29.2%
respectively. Northport has purchased
a second harbour mobile crane to further
expand its cargo handling capability.
Quality Marshalling, which is 100%
owned by Port of Tauranga, also
performed solidly in the first half of the
financial year. Its earnings were 2.9%
higher than the same period last year.
Coda Group improved its performance,
with the last three months showing
profitable results. However, earnings
from Timaru Container Terminal
decreased by 33.9% following shipping
line service changes.
Partnerships provide for
Port ’s future
Port of Tauranga and Tainui Group
Holdings plan to form a 50:50 joint
venture to develop the Ruakura Inland
Port at Hamilton over the next few years.
The joint venture will take a 50 year
ground lease and aims to open the inland
port to coincide with the completion
of the nearby Hamilton section of the
Waikato Expressway by early 2022.
The 30 hectare Ruakura Inland Port
is complemented by a 192 hectare
logistics and industrial precinct.
The joint venture follows the signing
last year of a rail services agreement
enabling Port of Tauranga cargo trains
to call at the freight hub.
Subsidiary and Associate
Company earnings
increased 17.2% over the
period, driven by strong
performances from
Northport and PrimePort
Timaru.
1
Total exports for the six months ended 31 December 2018 were adjusted to 8.8 million tonnes following a change
to the measurement of kiwifruit exports due to increased containerisation.
/4
Port of Tauranga – Interim Report 2019

Investing for the next stage
of cargo growth
Our ninth container crane was delivered
in mid-February by our long-term
partners Liebherr. We are removing a
storage shed at the container terminal
and the space will be converted into
further container ground slots.
Our next significant capital expenditure
will be extending the container terminal
quay to the south. Port-owned land
adjacent to the existing berths will be
converted from cargo storage to a fourth
container vessel berth, extending
the 770 metre quay by up to 220 metres.
We will soon lodge a resource consent
application and hope to have construction
completed in about two years.
Altogether, Port of Tauranga owns
190 hectares of land on both sides
of Tauranga Harbour, with about 40
hectares still available for development.
Future stages of expansion will be
driven by cargo volume growth and
will primarily involve fully electric
rail-mounted stacking cranes and
additional ship-to-shore cranes.
Meanwhile, Port of Tauranga has
acquired a former cold store, previously
occupied by Fonterra, at the north
end of the Mount Maunganui wharves.
The 2.4 hectare warehouse will be
converted into dry storage suitable for
vehicle imports and other bulk cargoes.
Fonterra will relocate its cold storage
operations to existing facilities at the
Tauranga Container Terminal.
Port farewells senior managers
In the next few months, two senior
executives will retire from Port of
Tauranga. Award-winning Chief
Financial Officer, Steve Gray, will leave
in June, and Corporate Services
Manager, Sara Lunam, departs in March.
They leave with our gratitude and
appreciation for the strong and lasting
contribution they have made to the
Company over many years.
Simon Kebbell will become Chief
Financial Officer from July. Simon is
currently Port of Tauranga’s Finance
and IT Manager, and Company
Secretary. Simon joined the Company
in 2003 after holding management
positions with both Ernst & Young and
PricewaterhouseCoopers in Singapore.
Blair Hamill has been appointed as
Port of Tauranga’s new Commercial
Manager. Blair, who is currently Zespri
International’s Chief Global Supply
Officer, joins the Company in July
after 20 years with the world’s largest
marketer of kiwifruit.
Reducing carbon emissions
Measuring, understanding and reducing
our carbon emissions is a big focus for
the Port of Tauranga team.
We have gained certification of our
carbon emissions through the Certified
Emissions Measurement and Reduction
Scheme (CEMARS). We are now working
towards a short-term target of a 5%
reduction in Scope 1 emissions per
cargo tonne, with the goal of achieving
net-zero emissions by 2050.
We have established an “inset fund”
to invest in meaningful sustainability
initiatives within the business (rather
than buying external carbon offsets).
We have used this fund to subsidise the
purchase of more expensive battery-
hybrid straddle carriers. Three of
these new models are being added to
the container terminal fleet over the
next few months. They will give us fuel
savings of 30 to 40% compared with our
current diesel-electric models.
Our next stage of expansion will utilise
electric automated stacking cranes,
avoiding increased diesel consumption
from increased cargo volumes.
We have added another three electric or
hybrid vehicles to our light vehicle fleet.
For other operational vehicles, we source
biodiesel from our suppliers Z Energy.
Our ninth container
crane was delivered
in mid-February
by our long-term
partners Liebherr.
/5
Port of Tauranga – Interim Report 2019

Low sulphur fuel to improve
air quality
Shipping air pollution will be reduced by
new low sulphur fuel limits introduced
internationally on 1 January 2020.
The sulphur limit was reduced from 3.5%
to 0.5% by mass for marine fuels under
Annex VI of the International Convention
for the Prevention of Pollution from
Ships (MARPOL). It aims to reduce
carbon emissions and improve air quality
around ports by requiring ships to switch
to the lower sulphur fuel or be fitted with
compliant exhaust gas cleaning systems.
Following supportive submissions from
Port of Tauranga and other New Zealand
ports, the Government announced
in December that it would accede to
the convention in late 2021, meaning
domestic cargo ships will also be required
to meet the standards from early 2022.
Upper North Island Supply Chain
Working Group presents views
A Government-appointed working
group has recommended that Ports
of Auckland’s cargoes be shifted to
Northport in Whangarei.
Cabinet has requested the Ministry of
Transport look closely at the proposal
to reconfigure the Upper North Island
supply chain.
Port of Tauranga’s senior executives are
now working with the Ministry, as well
as counterparts at the other Upper North
Island ports, to ensure a comprehensive
report is presented to Cabinet in May.
Port of Tauranga has the space and
transport networks available to
immediately accommodate Auckland’s
vehicle imports and other bulk cargoes.
The rail network between Tauranga and
Auckland still has plenty of capacity,
with the ability to double the current
number of trains per day. Already, about
half of all our cargo is transported by rail
and about 95% of our Auckland-related
containers are transferred this way.
Based on the analysis of international
experts, we believe container throughput
could reach 2.8 to 3.0 million TEUs in future
through land reconfiguration, stacking
cranes and other technology. Reclamation
is not required and most of the cargo
growth would be accommodated on rail
to and from the port.
There is also the opportunity to factor
in the current and future freight handling
capacity of inland freight hubs in the
Waikato region, such as the Ruakura
Inland Port in Hamilton. Port of Tauranga
is establishing a joint venture with Tainui
Group Holdings to develop the inland
port over the next two years.
Looking ahead
Fletcher Building plans to build a $400
million plasterboard manufacturing and
distribution facility in Tauranga over the
next three years. The Winstone Wallboards
operation will use Port of Tauranga for the
delivery of raw materials.
The full impact on trade from the
coronavirus outbreak is yet to be
determined. We are in constant
communication with our customers
and the flow-on effect is likely to vary
considerably by cargo.
Log exports have been hit hardest, as
volumes were already impacted by lower
international prices and demand since
the middle of 2019. Log inventories in
China have surged due to the extended
Chinese New Year shutdown. There
have been shipping cancellations and
delays as a result and we expect this to
continue into March. Port of Tauranga
continues to be well positioned to
weather market fluctuations, as our
customers are primarily large forest
owners, who are less susceptible
to commodity pricing volatility than
smaller, at-wharf-gate log exporters.
The trade outlook for the second half
of the 2020 financial year remains
uncertain and dependent on the duration
of the market shutdown in China and
any slowdown in the other countries
taking extreme measures to reduce
coronavirus risk.
Given the market uncertainty we are
reducing our full year profit guidance
from $96-$101 million to $94-$99 million.
David Pilkington
CHAIR

Mark Cairns
CHIEF EXECUTIVE
Port of Tauranga has
the space and transport
networks available to
immediately accommodate
Auckland’s vehicle imports
and other bulk cargoes.
/6
Port of Tauranga – Interim Report 2019

The Pāpaka project is supported by
Port of Tauranga and local iwi Ngāi
Te Rangi and Ngāti Ranginui. A $5,000
donation will help school pupils
research and protect the creatures
that live in Tauranga Moana with an
emphasis on protecting the native
Pāpaka o Rangataua.
Maungatapu School Principal,
Tane Bennett, believes that if the
pāpaka are healthy, so are the people.
“The pāpaka are iconic to the tangata
whenua of this community. It is part
of their identity and important for the
children to learn about,” says Tane.
The fund will help the school
provide science and technology
resources to solve real life scenarios
such as identifying and managing
invasive species.
“Our first learning project will be to
design and build traps to try and catch
an Asian paddle crab,” says Tane.
Port of Tauranga
sponsors project
to protect
native fauna
Maungatapu Primary School
pupils will get a helping
hand to protect native crabs
in Tauranga Harbour thanks
to Port of Tauranga.
L to R: Maungatapu School Principal Tane Bennett, science teacher Chris Dixon, pupil
Amorangi Walker, Ngai Te Rangi’s Pia Bennett, Ngati Ranginui’s Carlton Bidais, pupil Pia Kuka
and Port of Tauranga’s Property & Infrastructure Manager Dan Kneebone.
/7
Port of Tauranga – Interim Report 2019

The Super Post-Panamax class ship-
to-shore crane will be assembled over
the next two months before being
commissioned in April. It is the Port’s
ninth crane and its biggest. It can
service ships up to 49 metres or
19 containers wide, compared with
the 18 container reach of our other
large cranes.
The crane arrived on a special purpose
delivery ship from crane manufacturer
Liebherr’s factory in Ireland.
New container
crane arrives at
Port of Tauranga
Port of Tauranga’s
newest container
crane has arrived.
Port of Tauranga – Interim Report 2019
/8

Consolidated
Interim Financial
Statements
Contents
Consolidated Income Statement 10
Consolidated Statement of Comprehensive Income 10
Consolidated Statement of Changes in Equity 11
Consolidated Statement of Financial Position 12
Consolidated Statement of Cash Flows 13
Notes to the Consolidated Interim Financial Statements 14
Company Directory 19
For the six months ended 31 December 2019
Port of Tauranga Limited and Subsidiaries
/9
Port of Tauranga – Interim Report 2019

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Consolidated Income Statement
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
(Unaudited)
Six Months Ended
31 Dec 2019
Group
NZ$000
(Unaudited)
Six Months Ended
31 Dec 2018
Group
NZ$000
(Audited)
Year Ended
30 Jun 2019
Group
NZ$000
Total operating revenue154,774152,996313,263
Contracted services for port operations
(31,814)(32,292)(63,775)
Employee benefit expenses
(20,170)(18,939)(38,275)
Direct fuel and power expenses
(5,203)(5, 291)(10,752)
Maintenance of property, plant and equipment
(6,834)(4,889)(11, 97 9)
Other expenses
( 7,6 78)( 7, 6 8 0)(15,312)
Operating expenses(71,699)(69,0 91)(140,093)
Results from operating activities83,07583,905173,170
Depreciation and amortisation
(14,669)(13,830)(27,585)
Impairment of property, plant and equipment
00(499)
(14,669)(13,830)(28,084)
Operating profit before finance costs, share of profit
from Equity Accounted Investees and taxation
68,40670,075145,086
Finance income
132185417
Finance expenses (refer note 7)
(9,763)(9,071)(18,594)
Net finance costs(9,631)(8,886)(18 ,17 7 )
Share of profit from Equity Accounted Investees
5,8954,7708 ,10 0
Profit before income tax64,67065,959135,009
Income tax expense
(16,354)(16,972)(34,432)
Profit for the period 48,31648,987100,577
Basic earnings per share (cents)
7. 27.315.0
Diluted earnings per share (cents)
7.17.214.8
These statements are to be read in conjunction with the notes on pages 14 to 18.
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Consolidated Statement of Comprehensive Income
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
(Unaudited)
Six Months Ended
31 Dec 2019
Group
NZ$000
(Unaudited)
Six Months Ended
31 Dec 2018
Group
NZ$000
(Audited)
Year Ended
30 Jun 2019
Group
NZ$000
Profit for the period
48,31648,987100,577
Other comprehensive income
Items that are or may be reclassified to profit or loss:
Cash flow hedge – changes in fair value
210(2,997)(8,942)
Cash flow hedge – reclassified to profit or loss
8517371,629
Share of net change in cash flow hedge reserves
of Equity Accounted Investees
96(79)(308)
1,157(2,339)(7,621)
Items that will never be reclassified to profit or loss:
Asset revaluation, net of tax
0072 ,12 9
Share of net change in revaluation reserves of Equity
Accounted Investees
543288448
54328872,577
Total other comprehensive income1,700(2,051)64,956
Total comprehensive income50,01646,936165,533
/10
Port of Tauranga – Interim Report 2019

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Consolidated Statement of Changes in Equity
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
Share
Capital
Group
NZ$000
Share Based
Payment Reserve
Group
NZ$000
Hedging
Reserve
Group
NZ$000
Revaluation
Reserve
Group
NZ$000
Retained
Earnings
Group
NZ$000
Total
Group
NZ$000
Balance at 30 June 201870,7542,047(9,354)940,554117, 97 91,121,980
Adjustment on adoption of NZ IFRS 90000(274)(274)
Profit for the period
000048,98748,987
Total other comprehensive income
00(2,339)2880(2,051)
Total comprehensive income00(2,339)28848,98746,936
Decrease in share capital
(1, 011)0000(1, 011)
Dividends paid during the period (refer note 8)
0000(81,632)(81,632)
Equity settled share based payment accrual
0926000926
Total transactions with owners in their capacity as owners(1, 011)92600(81,632)(81,717)
Balance at 31 December 201869,7432,973(11,693)940,84285,0601,086,925
Profit for the period
000051,59051,590
Total other comprehensive income
00(5,282)72,28906 7, 0 0 7
Total comprehensive income00(5,282)72,28951,590118 , 5 97
Increase in share capital
14000014
Dividends paid during the period (refer note 8)
0000(40,808)(40,808)
Equity settled share based payment accrual
01,1120001,112
Revaluation surplus transferred to retained earnings on asset disposal
00004545
Total transactions with owners in their capacity as owners141,11200(40,763)(39,637)
Balance at 30 June 201969,7574,085(16,975)1,013,13195,8871,165,885
Profit for the period
000048,31648,316
Total other comprehensive income
001,15754301,700
Total comprehensive income001,15754348,31650,016
Increase in share capital
55000055
Dividends paid during the period (refer note 8)
0000(83,676)(83,676)
Equity settled share based payment accrual
0832000832
Shares issued upon vesting of management long term incentive plan
0(1,10 3)00(141)(1,244)
Total transactions with owners in their capacity as owners55(271)00(83,817)(84,033)
Balance at 31 December 201969,8123,814(15,818)1,013,67460,3861,131,868
These statements are to be read in conjunction with the notes on pages 14 to 18.
/11
Port of Tauranga – Interim Report 2019

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Consolidated Statement of Financial Position
AS AT 31 DECEMBER 2019
(Unaudited)
31 Dec 2019
Group
NZ$000
(Unaudited)
31 Dec 2018
Group
NZ$000
(Audited)
30 Jun 2019
Group
NZ$000
Assets
Property, plant and equipment (refer note 9)
1, 5 6 7,1721,454,5811,531,211
Intangible assets
18,73718,21219,028
Investments in Equity Accounted Investees
133,169133,720132,731
Receivables
122412
Total non current assets1,719,0901,606,5371,682,982
Cash and cash equivalents
5,6833,19 03,903
Receivables and prepayments
61,0765 7, 9 6 360,610
Inventories
8555281,366
Total current assets6 7,61461,68165,879
Total assets1,786,7041,668,2181,74 8,8 61
Equity
Share capital
69,8126 9,74 369,757
Share based payment reserve
3,8142,9734,085
Hedging reserve
(15,818)(11,6 9 3)(16,975)
Revaluation reserve
1,013,674940,8421,013,131
Retained earnings
60,38685,06095,887
Total equity1,131,8681,086,9251,16 5, 8 8 5
Liabilities
Loans and borrowings (refer note 10)
327,336175,089124,213
Derivative financial instruments
20,18314,02220,895
Provisions
1,8281,8361,783
Deferred tax liabilities
65,4666 8,87466,389
Lease liability
23,70200
Total non current liabilities438,515259,821213,280
Loans and borrowings (refer note 10)
175,000280,000322,000
Derivative financial instruments
4319461,13 8
Trade and other payables
33,89133,77033,688
Revenue received in advance
347345260
Provisions
1,3861,5312 ,178
Provision for tax
4,8694,88010,432
Lease liability (refer note 11)
39700
Total current liabilities216,321321,472369,696
Total liabilities654,836581,293582,976
Total equity and liabilities1,786,7041,668,2181,74 8,8 61
Net tangible assets per share (dollars per share)1.661.591.71
These statements are to be read in conjunction with the notes on pages 14 to 18.
/12
Port of Tauranga – Interim Report 2019

(Unaudited)
Six Months Ended
31 Dec 2019
Group
NZ$000
(Unaudited)
Six Months Ended
31 Dec 2018
Group
NZ$000
(Audited)
Year Ended
30 Jun 2019
Group
NZ$000
RECONCILIATION OF PROFIT FOR THE PERIOD
TO CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period48,31648,987100,577
Adjustments for non cash and non operating items
Depreciation and amortisation expense
14,66913,83027,585
Decrease in deferred taxation expense
(1,335)(731)(1,017)
Share of surpluses retained by Equity Accounted
Investees
(5,895)(4,770)(8 ,10 0)
Other
4089662,662
7, 8 479,29521,13 0
Less movements in working capital
(6,353)(11, 2 81)(9,518)
Net cash flows from operating activities49,81047, 0 01112 ,18 9
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Consolidated Statement of Cash Flows
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
(Unaudited)
Six Months Ended
31 Dec 2019
Group
NZ$000
(Unaudited)
Six Months Ended
31 Dec 2018
Group
NZ$000
(Audited)
Year Ended
30 Jun 2019
Group
NZ$000
Cash flows from operating activities
Receipts from customers
161,411153,247316 ,172
Interest received
132184415
Payments to suppliers and employees
(79,593)(75,450)(151,448)
Taxes paid
(23,252)(22,485)(34,680)
Interest paid
(8,888)(8,495)(18,270)
Net cash inflow from operating activities49,81047, 0 01112 ,18 9
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
31758
Finance lease payments received, including interest
7713
Repayment of advances from Equity Accounted Investees
02001,000
Dividends from Equity Accounted Investees
6,0965,5919,840
Purchase of property, plant and equipment
(25,172)(22,291)(41,12 5)
Purchase of computer software assets
(347)(115)(1,058)
Interest capitalised on property, plant and equipment
(199)(138)(274)
Total net cash used in investing activities(19,584)(16,739)(31,546)
Cash flows from financing activities
Proceeds from borrowings
156,1289 5 ,11144,250
Repurchase of shares
(716)(1,386)(1,386)
Repayment of borrowings
(100,000)(4 5,0 01)(3,000)
Repayment of lease liability
(182)00
Dividends paid
(83,676)(81,632)(122,440)
Net cash used in financing activities(28,446)(32,908)(82,576)
Net increase/(decrease) in cash held1,780(2,646)(1,933)
Add opening cash brought forward
3,9035,8365,836
Ending cash and cash equivalents5,6833,19 03,903
These statements are to be read in conjunction with the notes on pages 14 to 18.
/13
Port of Tauranga – Interim Report 2019

1 REPORTING ENTITY
Port of Tauranga Limited (the Parent Company) is a company incorporated and domiciled in New
Zealand, registered under the Companies Act 1993 and listed on the New Zealand Stock Exchange
(NZX). It is an FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013. The
Parent Company, which is designated as profit-oriented for financial reporting purposes, is an issuer in
terms of the Financial Reporting Act 2013.
The unaudited interim financial statements (the financial statements) for Port of Tauranga Limited
comprise the Port of Tauranga Limited, its Subsidiaries, and the Group’s interest in Equity Accounted
Investees (together referred to as the Group).
2 BASIS OF PREPARATION
These financial statements have been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (NZ GAAP) and New Zealand International Accounting Standard (NZ IAS) 34
Interim Financial Reporting. They do not include all information required for full annual financial
statements and should be read in conjunction with the annual financial statements and related notes
included in Port of Tauranga Limited’s Integrated Annual Report for the year ended 30 June 2019.
3 SIGNIFICANT ACCOUNTING POLICIES
Other than as set out in note 11 in regard to NZ IFRS 16 adoption, the accounting policies adopted are
consistent with those followed in the preparation of the Group’s annual financial statements for the year
ended 30 June 2019.
4 ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the financial statements in conformity with NZ IAS 34 requires management
to make judgements, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates.
In preparing these financial statements, other than set out in note 11 in regard to NZ IFRS 16, the
significant judgements made by management in applying the Group’s accounting policies and the key
sources of estimation and uncertainty, were the same as those applied to the Group’s consolidated
financial statements for the year ended 30 June 2019.
5 SEGMENT INFORMATION
The Group determines and presents operating segments based on the information that is internally
provided to the Chief Executive, who is the Group’s Chief Operating Decision Maker (CODM), as
defined by NZ IFRS 8 Operating Segments.
The Group operates in three main reportable segments, being:
• Port Operations: This consists of providing and managing port services, and cargo handling
facilities through the Port of Tauranga Limited. Port terminals and bulk operations have been
aggregated together within the Port Operations segment, due to the similarities in economic
characteristics, customers, nature of products and processes, and risks.
• Property Services: This consists of managing and maintaining the Port of Tauranga Limited’s
property assets.
• Marshalling Services: This consists of the contracted terminal operations and marshalling
activities of Quality Marshalling (Mount Maunganui) Limited.
The three main business segments are managed separately as they provide different services
to customers and have their own operational and marketing requirements.
The remaining activities of the Group are not allocated to individual business segments.
The Group operates in one geographical area, that being New Zealand.
Due to the significant shared cost base of the Port activities, operating costs, measures of profitability,
assets and liabilities are aggregated and are not reported to the CODM at a segment level, but rather
at a port level, as all business decisions are made at a “whole port level”.
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
/14
Port of Tauranga – Interim Report 2019

5 SEGMENT INFORMATION (CONTINUED)
SIX MONTHS ENDED 31 DECEMBER 2019
Port Operations
Group
NZ$000
Property Services
Group
NZ$000
Marshalling Services
Group
NZ$000
Unallocated
(1)
Group
NZ$000
Inter Segment
Group
NZ$000
Group
NZ$000
Revenue (external)
13 7, 4 0 215,0302,34200154,774
Inter segment revenue
0486,3740(6,422)0
Total segment revenue137,4 0 215,0788,7160(6,422)154,774
Other income and expenditure:
Share of profit from Equity Accounted Investees
0005,89505,895
Interest income
0001320132
Interest expense
000(9,699)0(9,699)
Depreciation and amortisation expense
00(453)(14,216)0(14,669)
Other unallocated expenditure
00(6,416)(71,769)6,422(71,763)
Income tax expense
00(517)(15,837)0(16,354)
Total other income and expenditure
00( 7, 3 8 6)(105,494)6,422(106,458)
Total segment result137,4 0 215,0781,330(105,494)048,316
(1)
Operating costs are not allocated to individual business segments within the Parent Company.
SIX MONTHS ENDED 31 DECEMBER 2018
Port Operations
Group
NZ$000
Property Services
Group
NZ$000
Marshalling Services
Group
NZ$000
Unallocated
(1)
Group
NZ$000
Inter Segment
Group
NZ$000
Group
NZ$000
Revenue (external)
136,33014,2772,38900152,996
Inter segment revenue
0326 ,1150(6 ,147 )0
Total segment revenue136,33014,3098,5040(6,147)152,996
Other income and expenditure:
Share of profit from Equity Accounted Investees
0004,77004,770
Interest income
0001850185
Interest expense
000(9,005)0(9,005)
Depreciation and amortisation expense
00(442)(13,388)0(13,830)
Other unallocated expenditure
00(6,266)(69,038)6 ,147(6 9,157 )
Income tax expense
00(503)(16,469)0(16,972)
Total other income and expenditure
00( 7, 2 11)(102,945)6 ,147(104,009)
Total segment result136,33014,3091,293(102,945)048,987
(1)
Operating costs are not allocated to individual business segments within the Parent Company.
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
/15
Port of Tauranga – Interim Report 2019

6 OPERATING REVENUE
Six Months Ended
31 Dec 2019
Group
NZ$000
Six Months Ended
31 Dec 2018
Group
NZ$000
Port services revenue
137,4 0 2136,330
Rental revenue
15,03014,277
Marshalling services revenue
2,3422,389
Total operating revenue154,774152,996
7 FINANCE EXPENSES
Six Months Ended
31 Dec 2019
Group
NZ$000
Six Months Ended
31 Dec 2018
Group
NZ$000
Interest expense on borrowings
9,8989,14 3
Less:
Interest capitalised to property, plant and equipment
(199)(138)
9,6999,005
Ineffective portion of changes in fair value of cash flow hedges
132
Amortisation of interest rate collar premium
4343
Fair value movement on currency derivative
821
Total finance expenses9,7639,071
8 DIVIDENDS
The following dividends were paid by the Group:
Six Months Ended
31 Dec 2019
Group
NZ$000
Six Months Ended
31 Dec 2018
Group
NZ$000
Final dividend of 7.3 cents per share
(2018: 7.0 cents per share)
49,66147, 618
Special dividend of 5.0 cents per share
(2018: 5.0 cents per share)
34,01534,014
Total dividends paid83,67681,632
9 PROPERTY, PLANT AND EQUIPMENT
Acquisitions and Disposals
During the six months ended 31 December 2019, the Group acquired assets with a cost of
$25.606 million (six months ended 31 December 2018: $21.713 million).
10 LOANS AND BORROWINGS
31 Dec 2019
Carrying Value
Group
NZ$000
31 Dec 2018
Carrying Value
Group
NZ$000
Commercial papers
170,000180,000
Standby revolving cash advance facility
252,000150,000
Fixed rate bonds
75,000125,000
Multi option facility
5,0000
Advances from employees
33689
Total loans and borrowings502,336455,089
Current
175,000280,000
Non current
327,336175,089
Total loans and borrowings502,336455,089
As at 31 December 2019 the Group had $170 million of commercial paper debt that is classified within
current liabilities (2018: $180 million). Due to this classification, the Group’s current liabilities exceed
the Group’s current assets. Despite this fact, the Group does not have any liquidity or working capital
concerns as a result of the commercial paper debt being interchangeable with direct borrowings within
the $480 million ($2018: $430 million) standby revolving cash advance facility which is a term facility.
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
/16
Port of Tauranga – Interim Report 2019

11 LEASES
NZ IFRS 16 Leases replaces NZ IAS 17 Leases and removes the classification of leases as either
operating leases or finance leases, for the lessee, and consequently all leases (other than short term
or low value leases), are recognised on the balance sheet. This has resulted in the Group recognising
right-of-use assets and related lease liabilities on the statement of financial position. As a result,
payments for leases previously classified as operating leases, which include leases of land and
buildings, and vehicles, have been reclassified from operating expenses to depreciation and interest
expense. Lessor accounting is substantially unchanged from accounting under NZ IAS 17.
The Group has adopted NZ IFRS 16 retrospectively from 1 July 2019 but has not restated
comparatives for previous periods. The reclassifications and the adjustments arising from the new
standard are therefore recognised in the opening balance sheet on 1 July 2019. The Group has also
adopted an exemption for short term and low value leases.
The lease liabilities were measured at the present value of the remaining lease payments. Lease
payments are discounted at the Group’s incremental borrowing rate as at 1 July 2019. The weighted
average incremental borrowing rate applied to lease liabilities at 1 July 2019 was 4.0%. The right-of-
use assets were measured at the amount equal to the corresponding lease liability, with no change in
net assets.
The judgements and estimates made when adopting NZ IFRS 16 include:
– incremental borrowing rate, being the rate that the Group have to pay to borrow the funds
necessary to obtain an asset of a similar value with similar terms and conditions; and
– lease terms, including any right of renewal where it is reasonably certain they will be exercised.
The impact of adoption of NZ IFRS 16 on the Group’s statement of financial position is summarised in
the table below:
Six Months Ended
31 Dec 2019
Group
NZ$000
1 July 2019
NZ$000
Right-of-use assets
23,89524,238
Lease liability
(24,099)(24,238)
When compared to the accounting policies in the prior comparative period, the adoption of NZ IFRS
16 on the Groups income statement for the six months ended 31 December 2019 is summarised in the
table below:
Pre
NZ IFRS 16
NZ$000
Adjustments
NZ$000
Post
NZ IFRS 16
NZ$000
Other expenses
8,330(652)7, 6 7 8
Depreciation and amortisation
14,29737214,669
Finance expenses
9,2794849,783
Income tax expense
16 ,411(57)16,354
12 RELATED PARTY TRANSACTIONS AND BALANCES
Related party transactions and balances with related parties:
Six Months Ended
31 Dec 2019
Group
NZ$000
Six Months Ended
31 Dec 2018
Group
NZ$000
Transactions with Equity Accounted Investees
Services provided to Port of Tauranga Limited
265234
Services provided by Port of Tauranga Limited
2,9041,391
Accounts receivable by Port of Tauranga Limited
373224
Accounts payable by Port of Tauranga Limited
659
Advances by Port of Tauranga Limited
5,3196 ,119
Services provided by Quality Marshalling
(Mount Maunganui) Limited
1,9191,920
Services provided to Quality Marshalling
(Mount Maunganui) Limited
140
Accounts receivable by Quality Marshalling
(Mount Maunganui) Limited
419393
Accounts payable by Quality Marshalling
(Mount Maunganui) Limited
20
During the six months ended 31 December 2019, the Group entered into transactions with companies
in which Group Directors hold directorships. These directorships have not resulted in the Group having
significant influence or control over the operations, policies, or key decisions of these companies.
No related party debts have been written off or forgiven during the period.
Controlling Entity
Quayside Securities Limited owns 54.14% (as at 31 December 2018: 54.14%) of the issued ordinary
shares in Port of Tauranga Limited.
Quayside Securities Limited is beneficially owned by Bay of Plenty Regional Council, the Ultimate
Controlling Party. Transactions with the Ultimate Controlling Party during the period include services
provided to Port of Tauranga Limited $17,970 (six months ended 31 December 2018: $15,611).
Transactions with Key Management Personnel
The Group does not provide any non cash benefits to Directors in addition to their Directors’ fees.
Six Months Ended
31 Dec 2019
Group
NZ$000
Six Months Ended
31 Dec 2018
Group
NZ$000
Directors
Directors’ fees recognised during the period
382367
Executive Officers
Salaries and short term employee benefits recognised during
the period
1,7081,845
Share based payments recognised during the period
257286
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
/17
Port of Tauranga – Interim Report 2019

13 COMMITMENTS
Six Months Ended
31 Dec 2019
Group
NZ$000
Six Months Ended
31 Dec 2018
Group
NZ$000
Capital commitments
Estimated capital commitments for the Group contracted for
at the reporting date but not provided for
3,27014,598
14 FINANCIAL INSTRUMENTS
The fair value of financial instruments traded in active markets is based on quoted market prices at the
reporting date.
The fair value of financial instruments that are not traded in active markets (for example over-the-
counter derivatives) are determined by using market accepted valuation techniques incorporating
observable market data about conditions existing at each reporting date.
The fair value of interest rate swaps is calculated as the present value of the estimated future cash
flows. The fair value of forward exchange contracts is determined using quoted forward exchange
rates at the reporting date.
Derivative financial instruments are categorised as Level 2 in the fair value measurement hierarchy.
15 SUBSEQUENT EVENTS
An interim dividend of 6.0 cents per share has been declared subsequent to reporting date.
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
/18
Port of Tauranga – Interim Report 2019

Independent Review Report
To the Shareholders of Port of Tauranga Limited
Report on the interim consolidated financial statements
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim
consolidated financial statements on pages 10 to 18 do not:
i. Present, in all material respects the Group’s financial position as at 31 December 2019 and its financial
performance and cash flows for the 6 month period ended on that date in compliance with NZ IAS 34
Interim Financial Reporting.
We have completed a review of the accompanying interim consolidated financial statements
which comprise:
— The consolidated statement of financial position as at 31 December 2019;
— The consolidated income statement, statement of comprehensive income, changes in equity and
cash flows for the 6 month period then ended; and
— Notes, including a summary of significant accounting policies and other explanatory information.
Basis for conclusion
A review of interim consolidated financial statements in accordance with NZ SRE 2410 Review of Financial
Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance
engagement. The auditor performs procedures, consisting of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures.
As the auditor of Port of Tauranga Limited, NZ SRE 2410 requires that we comply with the ethical
requirements relevant to the audit of the annual financial statements.
Other than in our capacity as auditor we have no relationship with, or interests in, the Group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that
we might state to the shareholders those matters we are required to state to them in the Independent
Review Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the shareholders as a body for our review work, this report, or any of the
opinions we have formed.
Responsibilities of the Directors for the interim consolidated financial statements
The Directors, on behalf of the Group, are responsible for:
— The preparation and fair presentation of the interim consolidated financial statements in accordance with
NZ IAS 34 Interim Financial Reporting;
— Implementing necessary internal control to enable the preparation of an interim consolidated financial
statements that is free from material misstatement, whether due to fraud or error; and
— Assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or
to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the interim consolidated financial
statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. We
conducted our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that the interim financial statements are not prepared, in
all material respects, in accordance with NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand). Accordingly we do not express an audit
opinion on these interim consolidated financial statements.
This description forms part of our Independent Review Report.

Brent Manning
KPMG
On behalf of the Auditor-General
Tauranga, New Zealand
27 February 2020
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Port of Tauranga – Interim Report 2019

DIRECTORS
D A Pilkington
Chair
A M Andrew
K R Ellis
J C Hoare
A R Lawrence
D W Leeder
Sir Robert McLeod
EXECUTIVE
M C Cairns
Chief Executive
S G Gray
Chief Financial Officer
D A Kneebone
Property & Infrastructure Manager
S M Lunam
Corporate Services Manager
L E Sampson
Chief Operating Officer
S R Kebbell
Company Secretary
REGISTERED OFFICE
Salisbury Avenue
Mount Maunganui
Private Bag 12504
Tauranga Mail Centre
Tauranga 3143
New Zealand
Telephone 07 572 8899
Facsimile 07 572 8800
Email marketing@port-tauranga.co.nz
Website www.port-tauranga.co.nz
AUDITORS
KPMG
Tauranga
(On behalf of the Auditor-General)
SOLICITORS
Holland Beckett Law
Tauranga
BANKERS
ANZ National Bank Limited
Bank of New Zealand
Commonwealth Bank of Australia
MUFG Bank, Limited (formerly known as
The Bank of Tokyo-Mitsubishi UFJ Limited)
CREDIT RATING AGENCY
Standard & Poor’s (S&P)
Australia
Port of Tauranga Limited’s rating: A–/Stable/A–2
SHARE REGISTRY
For enquiries about share transactions, change of address
or dividend payments contact:
Link Market Services Limited
PO Box 91976
Victoria Street West
Auckland 1142
Telephone 09 375 5998
Facsimile 09 375 5990
Email enquiries@linkmarketservices.co.nz
Website www.linkmarketservices.co.nz
Copies of the Annual and Interim Reports are available
from our website.
FINANCIAL CALENDAR
20 March 2020 Interim dividend payment
30 June 2020 Financial year end
28 August 2020 Annual results announcement
October 2020 Final dividend payment
30 October 2020 Annual Meeting
26 February 2021 Half year results announced
Company Directory
PORT OF TAURANGA LIMITED
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Port of Tauranga – Interim Report 2019