2020 Nine Month Results

1




NZX AND MEDIA RELEASE
25 AUGUST 2020
UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS TO 30 JUNE 2020
NAPIER PORT THIRD QUARTER IMPACTED BY COVID-19 DISRUPTION
Trade gateway for Hawke’s Bay and the lower North Island sees third quarter and nine months
ended 30 June 2020 financial results down on the prior year due to lower container and bulk
cargo volumes across its wharves as the result of COVID-19 disruptions.
FY2020 pro forma net profit after tax expected to be approximately $20 million, assuming no
material change to trading conditions.
HIGHLIGHTS
3
rd
Quarter to 30 June 2020
• Revenue for the third quarter down 16.2% to $24.3 million from $29.0 million in the same period
last year
• Container volumes down 17.4% to 74,000 TEU, reflecting the impact of the COVID-19 Alert
Level 4 lockdown on ‘non-essential’ cargo and lower empty container imports
• Bulk cargo volume down 24.2% to 0.6 million tonnes, resulting from the cessation of log
harvesting during COVID-19 Alert Level 4
• Pro forma EBITDA
1
for the quarter down by 30.1% to $9.3 million from $13.3 million in the same
period last year
• Result from operating activities
1
down by 31.6% to $9.3 million from $13.7 million
• Pro forma net profit after tax
1
for the third quarter reduced by 43.7% to $4.2 million from $7.5
million in the same period last year
• Reported net profit after tax down by 17.2% to $5.9 million from $7.1 million
9 Months to 30 June 2020
• Revenue for the nine months down 1.4% to $76.6 million from $77.6 million in the same period
last year
• Container volume down 2.9% to 210,000 TEU
• Bulk cargo volume down 12.8% to 2.23 million tonnes
• Pro forma EBITDA down by 10.8% to $30.8 million from $34.5 million in the same period last
year
• Result from operating activities down 13.0% to $31.1 million
• Pro forma net profit after tax down 14.3% to $15.5 million from $18.1 million in the same period
last year
• Reported net profit after tax of $18.7 million, up from $16.3 million
Earnings Guidance and Outlook
• Trade outlook remains uncertain due to COVID-19 impact and broader economic conditions
and month-to-month cargo volatility

1
Pro forma EBITDA, result from operating activities, and pro forma NPAT are alternative non-NZ GAAP
measures. Refer to the Notes to the 2019 Annual Consolidated Financial Statements and the Supplemental
Selected Financial Information for further information.

2

• Expectation for FY2020 pro forma NPAT of approximately $20 million, assuming no material
change to trading conditions
• Unlikely to see cruise ship visits in the FY2021 cruise season
• No update to final dividend expectation which will be reviewed in November

TRADING RESULTS
Napier Port (NZX.NPH) today reports lower revenue and underlying earnings for the nine months to 30
June 2020 due to reductions in container and bulk cargo volumes as the result of COVID-19 disruptions.
Third quarter revenue was down by 16.2% to $24.3 million from $29.0 million in the same period last
year. Revenue for the nine months decreased 1.4% to $76.6 million from $77.6 million last year.
Container services
Container services revenue for the quarter of $17.3 million decreased 14.3% from $20.2 million in the
same period last year. For the nine months, container services revenue increased by 0.9% to $48.2
million from $47.8 million due to improved average revenue per TEU, offset by lower container volumes.
Average revenue per TEU for the nine months increased 3.9% to $230 from $222 in the same period
last year, assisted by tariffs introduced during 2019 to recover costs of infrastructure investments made
to extend capacity and support our growth.
Container volumes for the quarter decreased by 17.4% to 74K TEU reflecting COVID-19 disruptions
including the restrictions on ‘non-essential’ cargo, such as timber, wood pulp, wool, and paper products,
during Alert Level 4 and reduced empty container imports. For the nine months, container volumes
reduced by 2.9% to 210K TEU from 216K TEU in the same period last year.
Bulk cargo
Bulk cargo revenue for the quarter of $6.3 million decreased 20.3% from $7.9 million in the same period
last year. For the nine months, bulk cargo revenue was down by 9.0% to $22.3 million from $24.5 million
as volumes reduced by 12.8% to 2.2 million tonnes from 2.6 million tonnes in the same period a year
ago.
Log export volume reduced by 14.3% to 1.6 million tonnes from 1.9 million tonnes for the nine-month
period due to the cessation of log harvesting during Alert Level 4 and Chinese export market conditions.
Average revenue per tonne increased 4.4% to $10.02 from $9.60 in the same period last year.
Operating results
The result from operating activities for the third quarter was down by 31.6% to $9.3 million from $13.7
million. For the nine months the result from operating activities declined by 13.0% to $31.1 million from
$35.7 million due to lower revenue and operating expenses increasing in line with expectations to
support growth and build operational resilience. Operating expenses increased with higher employee
numbers, higher insurance costs, and listed company costs in the nine months compared to the same
period last year.
Pro forma EBITDA for the quarter reduced by 30.1% to $9.3 million from $13.3 million in the same
period last year. For the nine months, pro forma EBITDA reduced by 10.8% to $30.8 million from $34.5
million. Pro forma operating expenses in the quarter reduced 4.5% and increased 6.2% for the nine
months compared to the same periods last year.
Pro forma net profit after tax for the third quarter reduced by 43.7% to $4.2 million from $7.5 million in
the same period last year. For the nine months this reduced by 14.3% to $15.5 million from $18.1 million.
The reported statutory net profit after tax for the nine months of $18.7 million, up from $16.3 million in
the same period last year, includes the receipt of the government’s COVID-19 wage subsidy of $2.0
million (gross of tax effect) and a one-off non-cash deferred tax gain of $1.5 million related to the
deductibility of tax depreciation on buildings, both of which are excluded from the pro forma result. The
statutory net profit after tax also benefited from reduced finance costs of $3.0 million when compared
to the same period a year ago.

3

Chair Alasdair MacLeod says: “These results cover the period that included the Level 4 COVID-19
lockdown, when all but the cargo the Government deemed ‘essential’ reduced sharply. With the gradual
lifting of restrictions, we have seen a recovery in cargo volumes flowing across our wharves, albeit not
to the levels we anticipated prior to the lockdown.
“These disruptions have weighed on our earnings for both the three-month and nine-month periods.
Meanwhile continued uncertainty about the medium-term impact of the pandemic and month-to-month
volatility in trade flows continue to pose challenges to accurately assessing the outlook for the future.
“Despite this uncertainty, Napier Port and the broader region is weathering the pandemic relatively well.
We expect the primary sector cargo that underpins our business and the prosperity of the region to
continue to flow across our wharves and, over the long-term, grow. We continue to invest to support
that long-term growth and our customers.”
Chief Executive Todd Dawson says: “As we signalled in May, the 2020 financial year is emerging as a
year of two halves, with the first largely in line with forecasts we set at the time of our 2019 initial public
offer and the second seeing the COVID-19 disruption to trading and the resulting softening in our
financial performance.
“Volumes of key trades since the end of the lockdown in April have been volatile, particularly log exports.
Major apple packers have reported strong harvests, but, due to the volatility in international markets,
our customers are taking longer to clear inventory than prior years. These dynamics have seen Napier
Port moving slightly lower volumes of apple and pear containers compared to the same period in the
prior year.
“Meat volumes have been steady, while import trades have been in line with last year despite the
economic uncertainty. Timber volumes have, meanwhile, been solid.
“Napier Port continues to build capability and capacity for the future. The 6 Wharf construction project
continues to progress in line with expectations. We are also pleased with progress we have made on
other strategic initiatives, including the commissioning of our third tug Kaweka and our second off port
container depot in Thames Street, Napier.
“In June we welcomed the Government’s in-principle support to help fund the development of an inland
port at Whakatu, which forms part of Napier Port’s future infrastructure masterplan. The Government
support potentially offers Napier Port the opportunity to bring forward this development in return for
favourable funding terms. The financing package is subject to the agreement of terms and Board
approval of a business case.
“All of these developments position the company well for the long-term. They help us to drive efficiencies
and provide capacity for the long-term growth in cargo we expect to flow from the region.”
BALANCE SHEET AND CAPITAL EXPENDITURE
Napier Port retains a strong balance sheet following its capital raising in the prior year. At 30 June 2020,
cash and cash equivalents stood at $18.0 million, down from the $31.2 million at the end of the last
financial year. In addition, we have undrawn bank facilities of $180 million to fund the 6 Wharf
development, the majority of which mature in 2024.
Our strategic investments are cementing our capability to continue growing our position as the preferred
gateway in the central and lower north island for cargo owners.
Over the nine-month period Napier Port has invested $30.9 million in capital assets with $14 million
2

spent on 6 Wharf construction. Other projects included the commissioning of Kaweka, the new off-port
container depot, and replacement wharf maintenance, maintenance dredging, paving works and mobile
plant.
EARNINGS GUIDANCE AND OUTLOOK
Napier Port now expects pro forma NPAT for the 12 months to 30 September 2020 to be approximately
$20 million, assuming no material change to trading conditions. This expectation benefits from our

2
$19 million including accounting capex accruals

4

COVID-19 response measures, including employee benefit and short-term operating expense deferrals,
and excludes pro forma adjustment items such as the COVID-19 wage subsidy.
“Beyond the end of the financial year the outlook is still subject to considerable uncertainty. Cruise ship
visits are unlikely to resume for the coming cruise season, which traditionally commences in October
and extends through summer. Meanwhile, it is still difficult to assess how the pandemic will affect
demand for key trades from export markets and imports to the region,” Mr Dawson said.
“As we noted at the half year Napier Port continues to engage with cargo owners to understand how
COVID-19 trading conditions are affecting them and the expected outlook for cargo volumes through
Napier Port. We expect to provide a further update when we release our results for the 2020 financial
year in November.”

As advised with our half year results announcement, a decision on the final dividend will be made by
the Napier Port board in conjunction with the full financial year result and outlook in November 2020.
The board’s intent is to pay a final dividend in respect of the 2020 financial year result, in accordance
with our stated dividend policy, subject to developments and the economic outlook at that time.


For more information:
Investors Media
Kristen Lie Chris Lonergan
Chief Financial Officer External Communications Advisor
DDI +64 6 833 4405 DD: 027 255 0486
E: kristenl@napierport.co.nz E: chrisl@napierport.co.nz

Napier Port Chair Alasdair MacLeod, Chief Executive Todd Dawson and Chief Financial Officer Kristen
Lie will host a conference call at 11.00am (NZT) (9.00am, AEDT) today to discuss the results. The
presentation material to which Napier Port will refer during the call has this morning been released to
the NZX and posted on Napier Port’s investor centre: https://www.napierport.co.nz/investor-centre/
Pre-registration:
To attend the conference call participants must pre-register at the following link:
https://s1.c-conf.com/diamondpass/10009091-invite.html
Registrations can be taken right up to the commencement of the call.
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/

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NINE MONTH
FINANCIAL
STATEMENTS
FOR THE NINE MONTHS ENDED 30 JUNE 2020

CONTENTS
CONSOLIDATED INCOME STATEMENT 1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 3
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 4
CONSOLIDATED STATEMENT OF CASH FLOWS 5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 7
AUDIT REVIEW REPORT 11
DIRECTORY 13

The above income statement should be read in conjunction with the accompanying notes.
NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED
INCOME STATEMENT
FOR THE NINE MONTHS ENDED 30 JUNE 2020
30 June 30 June
2020 2019

Unaudited Unaudited
Notes $000 $000
Revenue 5 76,553 77,624
Employee benefit expenses 24,418 21,505
Maintenance expenses 6,464 6,582
Other operating expenses 14,592 13,802
Operating expenses 45,474 41,889
Result from operating activities 31,079 35,735
Depreciation, amortisation and impairment expenses 9,187 8,730
Other (income)/expenses 6 (1,679) 38
IPO transaction and related costs (201) -
Share of loss and impairment of investment in joint venture - 1,080
Profit before finance costs and tax 23,772 25,887
Net finance (income)/costs (151) 3,033
Profit before income tax 23,923 22,854
Income tax expense 7 5,210 6,590
Profit for the period attributable to the shareholders of the Company 18,713 16,264
EARNINGS PER SHARE:
Basic earnings per share 3 0.09 0.15
Diluted earnings per share 3 0.09 0.15
NINE MONTH FINANCIAL STATEMENTS 2020 / 1

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED 30 JUNE 2020
30 June 30 June
2020 2019

Unaudited Unaudited
$000 $000
Profit for the period attributable to the shareholders of the Company 18,713 16,264
Other comprehensive income
Items that will be reclassified to profit or loss:
Changes in fair value of cash flow hedges - (2,144)
Cash flow hedges transferred to profit or loss - 1,185
Deferred tax on changes in fair value of cash flow hedges - 268

Items that will not be reclassified to profit or loss:
Cash flow hedges transferred to property, plant and equipment (200) -
Deferred tax on changes in fair value of cash flow hedges 56 -
Deferred tax on revaluation of sea defences - 4,374
Total comprehensive income for the period attributable
to the shareholders of the Company 18,569 19,947
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
2 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE NINE MONTHS ENDED 30 JUNE 2020
Share

CapitalRevaluation ReserveHedging

ReserveShare-based

Payment ReserveRetained

EarningsTotal Equity
$000 $000 $000 $000 $000 $000
Balance at 1 October 2019 246,404 75,451 144 333 13,149 335,481
Profit for the period - - - - 18,713 18,713
Other comprehensive income - - (144) - - (144)
Total comprehensive income for the period - - (144) - 18,713 18,569
Dividends 11 - - - (5,000) (4,989)
Transaction costs arising on share issuance 101 - - - - 101
Share-based payments - - - 42 - 42
Fair Share loans to employees 40 - - - - 40
Total transactions with owners
in their capacity as owners 152 - - 42 (5,000) (4,806)
Total movement in equity 152 - (144) 42 13,713 13,763
Balance at 30 June 2020 (Unaudited) 246,556 75,451 - 375 26,862 349,244
Balance at 1 October 2018 21,000 71,077 (3,823) - 124,158 212,412
Profit for the period - - - - 16,264 16,264
Other comprehensive income - 4,374 (691) - - 3,683
Total comprehensive income for the period - 4,374 (691) - 16,264 19,947
Dividends - - - - (10,000) (10,000)
Total transactions with owners
in their capacity as owners - - - - (10,000) (10,000)
Total movement in equity - 4,374 (691) - 6,264 9,947
Balance at 30 June 2019 (Unaudited) 21,000 75,451 (4,514) - 130,422 222,359
The above statement of changes in equity should be read in conjunction with the accompanying notes.
NINE MONTH FINANCIAL STATEMENTS 2020 / 3

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2020
30 June 30 Sept
2020 2019

Unaudited Audited
$000 $000
EQUITY
Share capital 246,556 246,404
Reserves 75,826 75,928
Retained earnings 26,862 13,149
349,244 335,481
NON-CURRENT LIABILITIES
Deferred tax liability 16,614 18,436
Lease liabilities 575 734
Provision for employee entitlements 477 436
17,666 19,606
CURRENT LIABILITIES
Taxation payable 2,553 3,358
Lease liabilities 210 200
Trade and other payables 16,529 12,471
19,292 16,029
386,202 371,116
NON-CURRENT ASSETS
Property, plant and equipment 344,637 317,185
Intangible assets 1,193 1,110
Investment properties 8,200 8,200
354,030 326,495
CURRENT ASSETS
Cash and cash equivalents 17,955 31,224
Trade and other receivables 14,217 13,197
Derivative financial instruments - 200
32,172 44,621
386,202 371,116
On behalf of the Board of Directors, who authorised the issue of the financial statements on 24 August 2020.
Chairman Director

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

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE NINE MONTHS ENDED 30 JUNE 2020
30 June 30 June
2020 2019

Unaudited Unaudited
$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers 75,093 74,161
Receipt of wage subsidy 2,036 -
Net GST received 27 278

Cash was applied to:
Payments to suppliers and employees (46,042) (43,831)
IPO transaction and related costs (478) -
Net finance costs received/(paid) 151 (3,024)
Income taxes paid (7,781) (4,405)
Net cash flows generated from operating activities 23,006 23,179
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Proceeds from sale of property, plant and equipment 58 25

Cash was applied to:
Acquisition of property, plant and equipment and intangible assets (30,936) (11,404)
Net cash flows used in investing activities (30,878) (11,379)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Repayment of Fair Share loans by employees 51 -

Cash was applied to:
Repayment of loans and borrowings - (500)
Repayment of lease liabilities (149) (141)
Transaction costs arising on share issuance (299) -
Dividends paid (5,000) (10,000)
Net cash flows used in financing activities (5,397) (10,641)
Net (decrease)/increase in cash and cash equivalents (13,269) 1,159
Cash and cash equivalents at beginning of the period 31,224 (109)
Cash and cash equivalents at end of the period 17,955 1,050
NINE MONTH FINANCIAL STATEMENTS 2020 / 5

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CASH FLOWS (CONTINUED)
FOR THE NINE MONTHS ENDED 30 JUNE 2020
Reconciliation of profit for the period to cash flows from operating activities
30 June 30 June
2020 2019

Unaudited Unaudited
$000 $000
Profit for the period 18,713 16,264
Adjust for non-cash items:
Depreciation and amortisation 9,187 8,730
Net loss on sale of property, plant and equipment 18 38
Share of loss and impairment from investment in joint venture - 1,080
Share-based payments 42 -
Other non-cash items 339 10
Deferred tax (1,766) (1,078)
7,820 8,780
Other adjustments:
(Decrease)/increase in current tax (805) 3,262
Increase in non-current provision 41 4
(764) 3,266
Movements in working capital:
Increase in trade and other receivables (1,459) (3,464)
Decrease in trade and other payables (1,304) (1,667)
(2,763) (5,131)
Net cash flows generated from operating activities 23,006 23,179
The above statement of cash flows should be read in conjunction with the accompanying notes.
6 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NAPIER PORT HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED 30 JUNE 2020
1 REPORTING ENTITY
The interim 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 interim financial statements have been prepared
in accordance with the Companies Act 1993.
STATEMENT OF COMPLIANCE
The interim financial statements have been prepared in
accordance with New Zealand equivalents to International
Accounting Standard 34, Interim Financial Reporting
(NZ IAS 34), and International Accounting Standard 34,
Interim Financial Reporting. The Group is a for-profit entity
for NZ GAAP purposes. These interim financial statements
do not include all the information normally included in
an annual financial report. Accordingly, these should be
read in conjunction with the Group’s annual financial
statements for the year ended 30 September 2019.
BASIS OF MEASUREMENT
The interim 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. They are presented in New Zealand
Dollars (NZD) and all values are rounded to the nearest
thousand dollars ($’000), unless otherwise stated.
3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted are consistent with
those followed in the preparation of the Group’s
consolidated financial statements for the year ended
30 September 2019.
The weighted average number of shares on issue for
the calculation of basic and diluted earnings per share
for the nine months ended 30 June 2019 has been
retrospectively restated to 110,000,000 shares (previously
21,000,000 shares) following the initial public offering
(IPO) in August 2019. As a result basic earnings per
share for the nine months ended 30 June 2019 has been
restated to $0.15 per share (previously $0.77 per share).
4 UNCERTAINTIES, ESTIMATES
AND JUDGEMENTS
The preparation of the financial statements in conformity
with NZ IAS 34 requires management to make
judgements, estimates and assumptions that affect
the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
In preparing these financial statements, the significant
judgements made by management in applying the Group’s
accounting policies and the key sources of estimation
and uncertainty, are consistent with those applied to the
Group’s consolidated financial statements for the year
ended 30 September 2019 other than the impact of the
COVID-19 pandemic as described below.
As at the balance sheet date and as at the date of
authorisation of these financial statements, the Group
was operating in conditions affected by the COVID-19
virus global pandemic. The potential economic and
public health consequences of this pandemic increase
uncertainties regarding the Group’s future trading results,
including those arising from the pandemic’s potential
impact on our direct and indirect cargo customers.
Risks that the Group is exposed to include financial risk,
including credit risk and market risks, and the carrying
value of assets, as further described in the Group’s annual
financial report. The revised economic situation at 30
June 2020 has required additional consideration of the
expected credit loss in relation to accounts receivable,
of impairment, and of the fair value of investment property.
These additional considerations have resulted in an
increase in the expected credit loss allowance (Note 6)
but has not resulted in significant changes to the recorded
amounts of other assets or liabilities.
NINE MONTH FINANCIAL STATEMENTS 2020 / 7

5 REVENUE AND SEGMENT REPORTING
30 June 30 June
2020 2019

Unaudited Unaudited
$000 $000
Disaggregation of revenue
Port operations 74,975 76,157
Property operations 1,578 1,467
Operating income 76,553 77,624
ACCOUNTING POLICIES:
Operating segments
The Group determines its operating segments based on internal information that is regularly reported to the Chief
Executive, who is the Group’s Chief Operating Decision Maker (CODM).
The Group operates in one reportable segment being Port Services. This consists of providing and managing port
services and cargo handling infrastructure through Napier Port. Within the Port Services reportable segment the
following operating segments have been identified: marine services, general cargo services, container services,
port pack services and depot services. These have been aggregated on the basis of similarities in economic
characteristics, customers, nature of services and risks.
The Group operates in one geographic area, that being New Zealand. During the period the Group had a single
customer which comprised 11% of total revenue.
6 OTHER (INCOME)/EXPENSES
30 June 30 June
2020 2019

Unaudited Unaudited
$000 $000
Included within other (income)/expenses are:
Loss on sale of assets 18 38
Expected credit loss allowance 339 -
Receipt of wage subsidy from the New Zealand Ministry of Social Development (2,036) -
Other (income)/expenses (1,679) 38
In light of the COVID-19 impact on credit risks at the reporting date, the Group has recognised an expected credit loss
allowance of $339,000 in respect of its trade receivable balance at 30 June 2020. To measure the expected credit loss
allowance amount, historical loss rates are adjusted to reflect forward-looking information. Trade receivables are grouped
in accordance with their shared credit risk characteristics and global credit rating historical industry information applied
to estimate future default and loss percentage rates. There have been no specific trade receivable balances written-off
during the period.
8 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

7 INCOME TAX
30 June 30 June
2020 2019

Unaudited Unaudited
$000 $000
Reconciliation between income tax expense and tax expense calculated
at the statutory income tax rate
Profit before income tax 23,923 22,854
Income tax at 28% 6,698 6,399
Adjustment to prior year tax 17 161
Tax effect of non-assessable items (596) (84)
Tax effect of non-deductible items 599 114
Reinstatement of tax depreciation on buildings (1,508) -
Income tax expense 5,210 6,590
The income tax expense is represented by:
Current tax on profits for the period 6,954 7,589
Adjustments for current tax of prior periods 22 79
Current income tax expense 6,976 7,668
Deferred income tax expense for the period (1,761) (1,160)
Adjustments for deferred tax of prior periods (5) 82
Deferred income tax expense (1,766) (1,078)
Income tax expense 5,210 6,590
On 26 March 2020 the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Bill was enacted which
reinstated the ability for companies to claim depreciation on buildings that have an estimated useful life of 50 years
or more from the 2020-21 income tax year. The reinstatement of tax depreciation on buildings required the Group to
reinstate the tax base of its buildings. The Group has also removed the effect of the initial recognition exemption on those
buildings acquired post May 2010. This net change has resulted in a decrease in the deferred tax liability of $1,508,000
and a corresponding income tax benefit in the current period.
NINE MONTH FINANCIAL STATEMENTS 2020 / 9

8 RELATED PARTY TRANSACTIONS AND BALANCES
30 June
2020

Unaudited
Related Party $000
Hawke’s Bay Regional Council Rates, levies and consents 44
Subvention payment 7
Lease income (19)
Cost recoveries (9)
Accounts receivable by Port of Napier 9
Accounts payable by Port of Napier 2
Hawke’s Bay Regional Investment Company Dividends 2,750
Subvention payment 217
Cost recoveries (38)
Accounts receivable by Port of Napier 38
9 COMMITMENTS & CONTINGENCIES
CAPITAL EXPENDITURE COMMITMENTS
At balance date there were commitments in respect of contracts for capital expenditure totalling $131,971,000
(2019: $8,853,000).
CONTINGENT LIABILITIES
There were no material contingent liabilities at balance date (2019: Nil).
10 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

A member firm of Ernst & Young Global Limited



Review Report to the Shareholders of Napier Port Holdings Limited
We have reviewed the consolidated interim financial statements of Napier Port Holdings Limited (the
“Company”) and its subsidiaries (the “Group”) on pages 1 to 10, which comprise the consolidated
statement of financial position of the Group as at 30 June 2020, and the consolidated income
statement, consolidated statement of comprehensive income, consolidated statement of changes in
equity and consolidated statement of cash flows of the Group for the nine months ended on that
date, and a summary of significant accounting policies and other explanatory information.

This report is made solely to the Company's shareholders, as a body. Our review has been
undertaken so that we might state to the Company's shareholders those matters we are required to
state to them in a 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 Company and the Company's
shareholders as a body, for our review work, for this report, or for our findings.
Directors’ Responsibilities
The directors are responsible for the preparation and fair presentation of consolidated interim
financial statements which comply with New Zealand Equivalent to International Accounting
Standard 34 Interim Financial Reporting and International Accounting Standard 34: Interim
Financial Reporting and for such internal control as the directors determine is necessary to enable
the preparation and fair presentation of the interim financial statements that are free from material
misstatement, whether due to fraud or error.

Reviewer’s Responsibilities
Our responsibility is to express a conclusion on the consolidated interim financial statements based
on our review. We conducted our review in accordance with New Zealand Standard on Review
Engagements 2410 Review of Financial Statements Performed by the Independent Auditor of the
Entity (“NZ SRE 2410”). NZ SRE 2410 requires us to conclude whether anything has come to our
attention that causes us to believe that the consolidated financial statements, taken as a whole, are
not prepared in all material respects in accordance with New Zealand Equivalent to International
Accounting Standard 34 Interim Financial Reporting and International Accounting Standard 34:
Interim Financial Reporting.

The Auditor-General is the auditor of Napier Port Holdings Limited and its subsidiaries. Simon
Brotherton, appointed by the Auditor-General, performs the annual audit of the Group using the
staff and resources of Ernst & Young. As a result, and in compliance with NZ SRE 2410, Ernst &
Young is required to comply with the independence requirements of the Auditor-General, which
incorporate the independence requirements of the External Reporting Board.
Basis of Statement
A review of consolidated interim financial statements in accordance with NZ SRE 2410 is a limited
assurance engagement. The auditor performs procedures, primarily consisting of making enquiries,
primarily of persons responsible for financial and accounting matters, and applying analytical and
other review procedures.

NINE MONTH FINANCIAL STATEMENTS 2020 / 11

A member firm of Ernst & Young Global Limited



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 the consolidated interim financial statements.
In addition to the audit and this review we have provided quality assurance over risk assessment
processes to the Group and a limited assurance engagement, which are compatible with those
independence requirements. Other than the audit, this review and these engagements, we have no
relationship with or interests in the Group.
Conclusion
Based on our review nothing has come to our attention that causes us to believe that the
accompanying consolidated interim financial statements, set out on pages 1 to 10, do not present
fairly, in all material respects, the financial position of the Group as at 30 June 2020 and its
financial performance and cash flows for the nine months period ended on that date in accordance
with New Zealand Equivalent to International Accounting Standard 34: Interim Financial Reporting
and International Accounting Standard 34: Interim Financial Reporting.
Our review was completed on 24 August 2020 and our findings are expressed as at that date.




Chartered Accountants
Auckland, New Zealand
12 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

DIRECTORY
DIRECTORS
Alasdair MacLeod (Chairman)
Stephen Moir
Diana Puketapu
John Harvey
Vincent Tremaine
Rick Barker
Blair O’Keeffe
SENIOR MANAGEMENT TEAM
Todd Dawson – Chief Executive
Kristen Lie – Chief Financial Officer
David Kriel – General Manager Commercial
Viv Bull – General Manager Culture and Community
Adam Harvey – General Manager Marine and Cargo
Andrea Manley – General Manager Strategy and Innovation
Kianoush Zia – General Manager Container Operations
Michel de Vos – General Manager Infrastructure Services
REGISTERED OFFICE
Breakwater Road
PO Box 947
Napier 4140
New Zealand
Phone: +64 6 833 4400
Fax: +64 6 033 4408
Email: info@napierport.co.nz
Facebook: Napier Port
LinkedIn: Napier Port
Twitter: @napierport
Website: napierport.co.nz
BANKERS
Westpac New Zealand Limited
16 Takutai Square
Auckland 1010
New Zealand
Industrial and Commercial Bank
of China (New Zealand) Limited
Level 11
188 Quay Street
Auckland Central 1010
New Zealand
Industrial and Commercial Bank
of China (Asia) Limited
26/F ICBC Tower
Garden Road
Central Hong Kong
SOLICITORS
Bell Gully
171 Featherston Street
Wellington
New Zealand
AUDITORS
Ernst & Young
PO Box 490
Wellington 6140
On behalf of the Auditor-General
SHARE REGISTRY
For enquiries about share transactions, dividend payments,
or to change your address, please get in touch with:
Link Market Services Limited
PO Box 91976
Victoria Street West
Auckland 1142
Phone: +64 9 375 5998
Fax: +64 9 375 5990
Email: napierport@linkmarketservices.co.nz
Copies of the annual report are available at napierport.co.nz.
FINANCIAL CALENDAR
30 September 2020 2020 financial year end
November 2020 2020 year end results announcement
December 2020 Annual meeting
31 March 2021 2021 half year end
May 2021 2021 half year results announcement
August 2021 2021 third quarter results announcement
NINE MONTH FINANCIAL STATEMENTS 2020 / 13

napierport.co.nz Napier Port Napier Port @napierport

---

Napier Port Holdings Limited
Supplemental selected financial information (unaudited)
The below supplemental financial information provides a summary of financial information for
the third quarter (3Q2020) and nine months (9M2020) ended 30 June 2020 compared to
corresponding periods in 2019 (3Q2019 and 9M2019) on a basis consistent with that
described in the 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 at www.business.govt.nz/disclose (OFR126790)).
The historical financial information is extracted from Napier Port Holdings Limited’s audited
financial statements (FY2019) and unaudited financial statements (9M2020).
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 and underlying reported EBITDA) is extracted from audited financial
statements of Napier Port Holdings Limited for FY2019 and unaudited financial statements for 9M2020. 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 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, the incremental
costs of operating as a listed company and the overlay of Napier Port’s capital structure following completion of the IPO 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 and the tax benefit associated with the reinstatement of tax depreciation on
buildings. A reconciliation to statutory net profit after tax is included in section 1.4 below.
Selected financial information
(1)
NZ$000
FY2019
3Q2019
3Q2020
9M2019
9M2020
Financial period
12 months
ending
30 Sept 19
3 months
ending
30 Jun 19
3 months
ending
30 Jun 20
9 months
ending
30 Jun 19
9 months
ending
30 Jun 20
Financial performance:
Revenue
(2)
99,616
28,966
24,269
77,624
76,553
Underlying reported EBITDA
(3)
41,797
13,656
9,343
35,735
31,079
Pro forma EBITDA
(4)
40,500
13,251
9,259
34,520
30,796
Net profit after tax
6,848
7,104
5,886
16,264
18,713
Pro forma net profit after tax
(5)
19,706
7,542
4,249
18,073
15,490
Balance sheet and cash flow items:
Dividends paid
53,957
6,043
-
10,000
5,000
Total assets
371,116
345,779
386,202
345,779
386,202
Cash and cash equivalents
31,224
1,050
17,955
1,050
17,955
Total liabilities
35,635
123,422
36,958
123,422
36,958
Total debt
-
80,000
-
80,000
-
Net cash flows from operating activities
29,336
11,839
9,580
23,179
23,006
Pro forma net cash flows from operating activities
(6)
33,561
10,937
8,045
23,934
21,745

6.
Pro forma cash flows from operating activities is a non-NZ GAAP measure that comprises net cash flows from operating
activities adjusted for offer costs, the incremental costs of operating as a listed company, receipt of the Covid-19 wages
subsidy, and overlays Napier Port’s capital structure following completion of the IPO 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 periods presented.
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, including the receipt of the government’s Covid-19 wage subsidy;
(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;
(vi) removal of the impact of the pre-IPO debt capital in relation to FY2019 and
applying the post-IPO capital structure as if it were in place for all of FY2019;
and
(vii) removal of the deferred tax benefit relating to the reinstatement of tax
depreciation on buildings.
1.2 Reconciliation of Pro forma EBITDA to Statutory NPAT

NZ$000FY20193Q20193Q20209M20199M2020
Statutory net profit after tax6,8487,1045,88616,26418,713
add: Taxation expense5,1822,4002,2906,5905,210
add: Net interest expense10,4371,007(25)3,033(151)
add: Depreciation and amortisation11,9812,9013,1988,7309,187
EBITDA 34,448 13,412 11,349 34,617 32,959
Pro forma EBITDA adjustments:
Offer costs6,404---(201)
Other (income) expenses(135)63(2,006)38(1,679)
Share of loss of equity accounted investee228138132228132
Impairment of joint venture 85243(132)852(132)
Underlying reported EBITDA 41,797 13,656 9,343 35,735 31,079
Incremental listed company costs (not yet incurred)(1,297)(405)(84)(1,215)(283)
Pro forma EBITDA40,50013,2519,25934,52030,796

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

NZ$000
FY2019
3Q2019
3Q2020
9M2019
9M2020
Result from operating activities
41,987
13,656
9,343
35,735
31,079
Adjustments:
Impairments of property, plant and equipment
(190)
-
-
-
-
Underlying reported EBITDA
41,797
13,656
9,343
35,735
31,079
NZ$000
FY2019
3Q2019
3Q2020
9M2019
9M2020
Statutory net profit after tax
6,848
7,104
5,886
16,264
18,713
Pro forma adjustments:
Offer costs
6,404
-
-
-
(201)
Other (income) expenses
(135)
63
(2,006)
38
(1,679)
Incremental listed company costs
(1,297)
(405)
(84)
(1,215)
(283)
Impairment of joint venture
852
43
(132)
852
(132)
Listed company capital structure
9,940
896
n/a
2,522
n/a
Tax impact of pro forma adjustments
(2,907)
(159)
585
(388)
580
Tax benefit of reinstatement of tax depreciation on buildings
-
-
-
-
(1,508)
Pro forma NPAT
19,706
7,542
4,249
18,073
15,490
NZ$000
FY2019
3Q2019
3Q2020
9M2019
9M2020
Statutory net cash flows from operating activities
29,336
11,839
9,580
23,179
23,006
Pro forma adjustments
Offer costs
5,643
(831)
-
-
478
Incremental listed company costs
(1,393)
(501)
(84)
(1,215)
(283)
Listed company capital structure
2,882
581
n/a
2,358
n/a
Covid-19 wage subsidy
-
-
(2,036)
-
(2,036)
Tax impact of pro forma adjustments
(2,907)
(152)
585
(388)
580
Pro forma net cash flows from operating activities
33,561
10,937
8,045
23,934
21,745

---

Napier Port Holdings Limited
2020 Third-Quarter Trade Volume Data
The below trade volume data provides a summary of third quarter and nine months ended 30
June 2020 results compared to the prior period.
Napier Port Holdings Limited notes that in the preparation of this data it has reclassified
transhipped containers for FY2019 from exports and imports to ‘other container movements’
to more accurately reflect the activity associated with those containers.
1.1 Container Services
Container Services
TEU (000s)^
3Q
FY2020
Actual
3Q
FY2019
Actual
9 Months
FY2020
Actual
9 Months
FY2019
Actual
Exports



Wood pulp & timber 9 14 37 38

Canned food / other food & beverage 2 3 6 8

Other dry 3 4 9 11

Total dry 14 20 51 56


Apples & pears 16 17 20 21

Meat 4 4 13 13

Fresh & other chilled produce 4 4 11 11

Total reefer 24 25 44 45


Empty 1 1 3 3

Total exports 39 46 98 104

Imports



Dry 7 7 21 22

Reefer 1 1 3 2

Empty 26 35 79 81

Total imports 34 43 103 106


Other container movements (‘DLRs
and Tranships’)
2 2 9 5

Total Container Services volume 74 90 210 216

Vessels



Container ship calls 76 82 223 233


^Rounded to nearest thousand TEU

1.2 Bulk Cargo
Bulk Cargo
Kilotonnes
3Q
FY2020
Actual
3Q
FY2019
Actual
9 Months
FY2020
Actual
9 Months
FY2019
Actual

Log exports 465 677 1,648 1,924

Other exports 33 38 114 133

Imports 131 114 464 496

Total Bulk Cargo volume 628 828 2,226 2,552

Vessels

Charter vessel calls 70 74 223 241


1.3 Cruise Services
Cruise Services

3Q
FY2020
Actual
3Q
FY2019
Actual
9 Months
FY2020
Actual
9 Months
FY2019
Actual
Vessels


Cruise vessel calls - 4 76 70