2020 Full Year Results

NZX AND MEDIA RELEASE
18 NOVEMBER 2020
FINANCIAL RESULTS FOR THE YEAR TO 30 SEPTEMBER 2020
Napier Port benefits from resilient regional cargo flows
HIGHLIGHTS
· Annual revenue rose 0.8% to $100.4 million from $99.6 million in the same period last year
• Container volumes were down 1.1% to 268,000 TEU and bulk cargo volumes were down
8.3% to 3.1 million tonnes due principally to COVID-19 disruptions
• Pro forma EBITDA
1
rose 1.3% to $41.0 million
• Result from operating activities
2
decreased 2% to $41.2 million
• Pro forma net profit after tax
1
rose by 4.2% to $20.4 million in line with IPO forecasts
• Audited net profit after tax rose from $6.8 million to $22.0 million
• Trade sentiment is buoyant, but the outlook remains uncertain due to the impact of COVID-19
and broader economic conditions
• No cruise ship visits expected in the FY2021 cruise season
• Board resolved to pay a final dividend of 5 cents per share
• Guidance for 2021 of underlying EBITDA of between $34 million and $38 million
Napier Port (NZX.NPH), the premier freight gateway for Hawke’s Bay and the lower North Island, today
reports resilient regional cargo flows have underpinned annual revenue and earnings, despite the
challenges of the COVID-19 pandemic.
It reports continued investment in its infrastructure - including its new multi-purpose 6 Wharf - reflecting
its confidence in the long-term economic prospects for its region and the service proposition it offers
regional cargo owners. However, due to the new economic realities the company faces in the wake of
the pandemic, Napier Port also notes that earnings for the new financial year are expected to be
reduced.
FINANCIAL RESULTS
Revenue for the year to 30 September 2020 rose 0.8% to $100.4 million from $99.6 million in the same
period a year ago. Napier Port’s total container trade was down just 1.1% to 268,000 twenty-foot
equivalent units (TEU) from 271,000 TEU, while bulk cargo volumes fell 8.3% to 3.1 million tonnes from
3.4 million tonnes, principally reflecting the impact of the pandemic lockdown on the log export trade.
Although the pandemic brought the cruise ship season to a premature end the port hosted 76 cruise
lines, up from 70 in the prior year. Revenues were also underpinned by increased revenues per trade
unit.
The result from operating activities of $41.2 million decreased by 2% from $42.0 million in the prior year.
Audited net profit after tax rose from $6.8 million to $22.0 million. The result for the prior year included
1
Pro forma EBITDA and pro forma net profit after tax are alternative non-NZ GAAP measures. For further
information please refer to the Supplemental Selected Financial Information released to the NZX today and
available on the company’s website.
2
Result from operating activities is an alternative non-NZ GAAP measure and represents core underlying operating
earnings. For further information please refer to Note 24 of the 2020 Annual Consolidated Financial Statements
and the Supplemental Selected Financial Information.

several one-off charges, including the costs related to the IPO and capital restructuring. Stripping out
these adjustments, pro forma net profit after tax rose to $20.4 million from $19.6 million in the prior year,
a figure above the guidance given at the time of the IPO.
Napier Port Chair Alasdair MacLeod said: “Napier Port’s first year of operation as a listed entity was
significantly more challenging than we anticipated at listing, as we navigated the uncharted territory of
COVID-19.
“Despite all the uncertainties associated with the pandemic, our management and people have worked
through these unique challenges with commitment and calm. This resilience operationally, backed up
by tight financial controls, has left Napier Port in a stronger position than we anticipated at the outset of
COVID-19. It has further cemented our position as the major freight gateway for our region and the
lower North Island.
“The recovery was so strong that the Board moved to repay the Government wage subsidy for which
we qualified and accepted in the early stages of the health crisis.
“Our confidence in the region and in the quality of our offering is such that through this period we have
forged ahead with the construction of our new wharf - 6 Wharf.
“This vital piece of infrastructure remains within budget, is scheduled to be completed by late 2022, and
when finished will give us the ability to handle bigger ships, more shipping lines, and the ever-increasing
volume of cargo generated by the region, or attracted to Napier Port by our superior service.”
Chief Executive Todd Dawson said: “In the face of the significant challenges we saw as a result of
COVID-19, we have continued to deliver on our strategic purpose to work for our region. We have done
this by maintaining and strengthening the global connections that are fundamental to linking Hawke’s
Bay and New Zealand’s central and lower North Island supply chains to the world.
“In any other year, Napier Port would treat this all as business as usual. What makes this year stand
out is that we achieved all of this, as well as an outstanding financial result, when - more than ever - the
health, safety and the economic wellbeing of our people and our region were at stake.”
DIVIDEND AND OUTLOOK
Mr MacLeod said the IPO has given Napier Port a sound balance sheet.
“We ended the financial year with net cash of $7.9 million, compared to $31.2 million at the same time
a year ago, and retained undrawn borrowing facilities of $180 million.
“While this is a stronger liquidity position than we envisaged at the time of the IPO, we now face a more
uncertain outlook. This uncertainty comes at a time when we are investing in a once-in-a-generation
upgrade to our core infrastructure.
“Sentiment amongst our customers remains upbeat and positive, particularly in the meat and forest
products sectors, however significant uncertainty remains for our cruise industry customers entering
into the new year. Neither Napier Port nor its customers are complacent about the risks to both the
global, national and regional economy as we look to the future.
“In addition to these uncertainties, there are secondary effects which have a direct bearing on the region
and cargo flows through Napier Port, including access to labour to harvest our region’s primary produce
and ongoing congestion in supply chains in the upper North Island.
“As we signalled earlier in the year, we do not expect a resumption of cruise ship visits this cruise
season and we are conscious of the uncertainty regarding the timing and eventual extent of this
industry’s revival. We continue to exercise a disciplined approach to operating and capital expenditure
and are pursuing efficiencies, however, several of the cost saving measures introduced in response to

COVID-19, including the already signalled deferrals of operational and capital expenditure, cannot be
sustained in the new financial year.
“Finally, the board believes Napier Port should configure itself for the long term not only in terms of
infrastructure, but also in terms of people and capability. All these factors translate into an expectation
for underlying EBITDA for the year to 30 September to range between $34 million and $38 million. “For
many of these reasons, the Board cancelled the interim dividend and Directors still believe protecting
Napier Port’s balance sheet remains a prudent stance.
“We have therefore declared a final dividend of 5 cents per share, up from the 2.5 cents per share paid
at the same time a year ago but less than forecast at the time of the IPO. The dividend has a record
date of 4 December and a payment date of 18 December.
“Napier Port is standing strong for our region. Over many years we have established a record of working
with our customers and our broader community of stakeholders to ensure an efficient, agile and resilient
supply chain for our region,” Mr MacLeod said.
“Our focus for the current year – despite the uncertainty – is to continue to build on this success. We
are looking forward to providing an update on our progress at our annual shareholders meeting in
December.”
Further detail on Napier Port’s financial performance for the year to 30 September 2020 is included in
the annual report and investor presentation released to the NZX today and available on the company’s
investor website at:https://www.napierport.co.nz/investor-centre/
ENDS
For more information:
InvestorsMedia
Kristen Lie Richard Inder
Chief Financial Officer The Project
DDI +64 6 833 4405 DD: 021 645643
E:kristenl@napierport.co.nz E:richard@theproject.co.nz
About Napier Port
Napier Port is New Zealand’s fourth largest port by container volume. We are the main gateway for exports
from Hawke’s Bay and the lower North Island 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. On the web:www.napierport.co.nz
Conference Call
Napier Port will hold a conference at 11.00am (NZT) (9.00am, AEDT) today. To attend to the conference
call participants must pre-register at the following link:
https://s1.c-conf.com/DiamondPass/10010358-by78Ft.html
Registrations can be taken right up to the commencement of the call.

---

STANDING STRONG
FOR OUR REGION
ANNUAL REPORT – TE PŪRONGO Ā-TAU / 2020

CONTENTS
HIGHLIGHTS 4
CHAIRMAN’S REPORT 6
CHIEF EXECUTIVE’S REPORT 8
CHIEF FINANCIAL OFFICER’S
MANAGEMENT DISCUSSION AND ANALYSIS 11
STRATEGY DELIVERS RESILIENCE
IN UNCERTAIN TIMES 14
STRATEGIC PRIORITIES PROGRESS
WELL DESPITE DISRUPTION 16
CUSTOMER CONNECTION 19
DATA AND TECHNOLOGY 23
NETWORKED INFRASTRUCTURE 27
6 WHARF ON TRACK 31
COLLABORATIVE PARTNERSHIPS 33
CULTURE OF CARE 37
OUR PEOPLE 39
ENVIRONMENTAL, SOCIAL AND GOVERNANCE 40
BOARD OF DIRECTORS 42
SENIOR MANAGEMENT 44
FINANCIAL STATEMENTS
AND OTHER DISCLOSURES 47
CORPORATE GOVERNANCE STATEMENT 48
OTHER DISCLOSURES 56
CONSOLIDATED INCOME STATEMENT 61
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME 62
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY 63
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION 64
CONSOLIDATED STATEMENT
OF CASH FLOWS 65
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS 67
TRADE AND FINANCIAL FIVE YEAR SUMMARY 90
INDEPENDENT AUDITOR’S REPORT 91
DIRECTORY 95
ANNUAL REPORT 2020– TE PŪRONGO Ā-TAU 2020 / 1

2 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

OUR STRATEGIC
LOCATION AND CARGO
HANDLING CAPACITY
MAKE US A KEY
CONNECTION IN THE
SUPPLY CHAIN, BUT
IT’S OUR PEOPLE, THE
SERVICE WE PROVIDE
AND OUR INNOVATIVE
SYSTEMS THAT ARE
THE FOUNDATIONS
OF OUR SUCCESS
ANNUAL REPORT 2020– TE PŪRONGO Ā-TAU 2020 / 3

HIGHLIGHTS
304
CHARTER
VESSEL CALLS
–
DOWN 3.2
%
2.4
MILLION
TONNES OF
LOG EXPORTS
–
DOWN 8.3
%
$
10
MILLION
FINAL DIVIDEND
–
5 CENTS
PER SHARE
49
THOUSAND
TEU HANDLED
THROUGH PORT PACK
–
DOWN 2.2
%
268
THOUSAND
TEU CONTAINERS
HANDLED
–
DOWN 1.1
%
$22
MILLION
NET PROFIT
–
UP 221
%
4 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

HIGHLIGHTS
293
CONTAINER
VESSEL CALLS
–
DOWN 3.3
%
5.0
MILLION
TONNES OF
CARGO HANDLED
–
DOWN 7.5
%
$
100
.4

MILLION
REVENUE
–
UP 0.8
%
3.1
MILLION
TONNES OF BULK
CARGO HANDLED
–
DOWN 8.3
%
76
CRUISE
SHIP CALLS
–
UP 8.6
%
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 5

CHAIRMAN’S REPORT
STANDING STRONG
FOR OUR REGION
HE WAKA EKE NOA – WE ARE ALL IN THIS TOGETHER / WE'VE GOT THIS
TĒNĀ KOUTOU E NGĀ
KAIWHAKARATO MONI,
Napier Port’s first year of operation as a listed entity was
significantly more challenging than we anticipated at listing,
as we navigated the uncharted territory of COVID-19.
Despite all the uncertainties associated with the pandemic,
our management and people have worked through these
unique challenges with commitment and calm. They, along
with all the others who kept the economy moving, deserve
our thanks.
This resilience operationally, backed up by tight financial
controls, has left Napier Port in a stronger position than
we anticipated at the outset of COVID-19. It has further
cemented our position as the major freight gateway
for our region and the lower North Island.
The recovery was so strong that the Board moved to repay
the Government wage subsidy for which we qualified
and accepted in the early stages of the health crisis.
On behalf of shareholders and the entire port team I want
to record our appreciation for the prompt Government
response to COVID-19 and the support it gave
to Napier Port, our region and the broader economy.
The wage subsidy gave us the confidence to retain all our
staff on full pay, even if they were not able to physically
attend at the port. Nevertheless, given the underlying
strength of the business and the strong recovery,
we believed that a refund was the right thing to do.
Our confidence in the region and in the quality of our
offering is such that through this period we have forged
ahead with the construction of our new wharf – 6 Wharf.
This vital piece of infrastructure is scheduled to be
completed by late 2022, and when finished will give us the
ability to handle bigger ships, more shipping lines, and the
ever-increasing volume of cargo generated by the region,
or attracted to Napier Port by our superior service.
FINANCIAL RESULTS
Despite this, the health crisis has not left us unscathed.
As signalled earlier this year, the 2020 financial year was
‘a year of two halves’, with the first largely in line with
forecasts given at the time of the IPO and the second seeing
significant disruptions due largely to COVID-19 lockdowns.
Notwithstanding the trading disruptions, Napier Port’s total
container trade was down just 1.1% to 268,000 twenty-
foot equivalent units (TEU), while bulk cargo volumes fell
8.3% to 3.1 million tonnes, principally reflecting the impact
of the lockdowns on the log export trade. Meanwhile,
the cruise ship season was brought to a premature end.
Revenue for the year to 30 September 2020 rose
to $100.4 million from $99.6 million in the same period
a year ago, due principally to resilient cargo flows and
increased tariffs. Net profit after tax rose from $6.8 million
to $22.0 million. The result for the prior year included
several one-off charges, including the costs related
to the IPO and capital restructuring.
Stripping out these adjustments, pro forma net profit after
tax rose to $20.4 million from $19.6 million in the prior year,
a figure ahead of the guidance we gave at the time of the IPO.
Given the disruption to the year we are very pleased with
the result. In no small measure it reflects belt tightening
across the port, including a reduction in the Director fee
pool, wage and salary increase deferrals and a broader
range of capital and other operational expenditures.
The response of our team to these changes, from
our Chief Executive Todd Dawson and the Senior
Management Team through to those on the front-line
moving cargo, has been inspiring.
Without exception, the team has worked hard to protect
the health and safety of our people and our region while
applying themselves assiduously to the task of keeping cargo
moving across our wharves. It is tangible proof of the value
in fostering what we call a ‘culture of care’ at Napier Port.
6 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

DIVIDEND AND OUTLOOK
The IPO has given Napier Port a sound balance sheet.
We ended the financial year with net cash of $7.9 million,
compared to $31.2 million at the same time a year ago,
and retained undrawn borrowing facilities of $180 million.
While this is a stronger liquidity position than we envisaged
at the time of the IPO, we now face a more uncertain outlook.
This uncertainty comes at a time when we are investing
in a once-in-a-generation upgrade to our core infrastructure.
Notwithstanding the resilient cargo flows we have seen
through the COVID-19 crisis, the longer-term impact
of the pandemic remains uncertain. Finally, as we signalled
earlier in the year, we do not expect a resumption of cruise
ship visits this cruise season and we are conscious of the
uncertainty regarding the timing and eventual extent
of this industry’s revival.
We continue to exercise a disciplined approach to
operating and capital expenditure and are pursuing
efficiencies. However, several of the cost saving measures
introduced in response to COVID-19, including the already
signalled deferrals of operational and capital expenditure,
cannot be sustained in the new financial year.
For many of these reasons, the Board cancelled the interim
dividend and Directors still believe protecting Napier Port’s
balance sheet remains a prudent stance. We have therefore
declared a final dividend of 5 cents per share, up from
the 2.5 cents per share paid at the same time a year ago
but less than forecast at the time of the IPO.
The dividend has a record date of 4 December
and a payment date of 18 December.
Napier Port is standing strong for our region. Over many years
we have established a record of working with our customers
and our broader community of stakeholders to ensure an
efficient, agile and resilient supply chain for our region.
Our focus for the current year – despite the uncertainty –
is to continue to build on this success. We are looking
forward to providing an update on our progress at our
annual shareholders meeting in December.
Finally, on behalf of the Board, shareholders, and our region,
I extend our thanks to the cargo owners who entrust their
cargo to Napier Port, and to the entire Napier Port team.
In the face of the uncertainty and an ongoing public health
challenge, you have delivered an outstanding result.
Ngā mihi nui,
ALASDAIR MACLEOD
Chairman
Amid a border lockdown that is
unprecedented in New Zealand’s history,
Napier Port’s significance as a ‘lifeline’
asset has been thrown into stark relief.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 7

CHIEF EXECUTIVE’S REPORT
A STRATEGY
THAT ENDURES
TĒNĀ KOUTOU
In our first year as a publicly listed company, Napier Port
can look back on 2020 with a real sense of pride and
achievement.
In the face of the significant challenges we saw as
a result of COVID-19, we have continued to deliver
on our strategic purpose to work for our region. We have
done this by maintaining and strengthening our global
connections that are fundamental to linking Hawke’s Bay
and New Zealand’s central and lower North Island supply
chains to the world.
In the 12 months to 30 September 2020 we hosted
293 container vessels and moved 268,000 TEU across
our wharves, a 1.1% reduction on the prior year. The fall
was mainly due to the COVID-19 lockdown when all trade
apart from essential cargo, ceased.
Some 304 bulk charter vessels visited during the
year onto which were loaded 2.4 million tonnes of logs
(down 8.3% on the prior year), 140k tonnes of other
exports (down 16.5%), and unloaded 616k tonnes of
imports (down 6.2%). Again COVID-19 trade disruptions,
particularly within forest products, were responsible
for the fall. We hosted 76 cruise lines and their
116,000 passengers and 55,000 crew.
In any other year, Napier Port would treat this as business
as usual. What makes this year stand out is that we achieved
all of this, as well as an outstanding financial result, when
– more than ever - the health, safety and the economic
wellbeing of our people and our region were at stake.
DRIVING GROWTH AND RESILIENCE
We see our success this year, foremost, as a result
of the dedication of our port’s people and the re-validation
of a strategy that puts our customers and our region’s
cargo owners, at the centre of our focus.
Our strategy focuses on five key areas: connecting with
customers, harnessing data and technology, developing
resilient and agile infrastructure, fostering collaborative
partnerships and recognising our people are the
foundation of our business success.
I am delighted to report significant progress on all areas
of the strategy this year.
Building deeper connections with our customers
(detailed on page 19 of this report) ensures we are
responsive to their changing needs. As our relationship
with our longstanding customer Winstone Pulp
International (WPI) demonstrates, these connections
lead to longer term and enduring relationships.
In early October, just after balance date, WPI and
Napier Port renewed our agreement for a further 10 years
with two further 5-year rights of renewal secured to export
WPI’s pulp and timber products from its mill in the central
North Island through Napier Port. A key decision factor for
WPI, in selecting Napier Port as its supply chain partner,
was the resilience we’ve shown, our passion for service
delivery with their business and the certainty it gives them
that Napier Port is a port with a clear plan for the future
of the central and lower North Island.
8 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

We have continued to build our capability this year,
making significant progress with extending our network
of infrastructure (page 27). The centrepiece of this
programme is the development of our new 350-metre
long 6 Wharf. As the cornerstone development of our
future container terminal this key project remains on
budget and on track for completion in 2022. 6 Wharf will
unlock future growth for Hawke’s Bay, and the central and
lower North Island, by providing a port infrastructure that
has greater capacity and capability for moving cargo.
As a result, customers across the North Island will have
access to a smooth, efficient, timely solution for moving
large volumes of cargo to, and from, global markets.
Our commitment to harnessing data and technology
(page 23) is driving real efficiency gains on port and
creating new income streams off port. Successful
developments this year have included: Sharewater,
for marine harbour planning and management; Port Pass,
which makes identity and site access management easy
and the launch of our new vehicle booking system,
Propel. These applications and others we have developed,
are delivering new value across our sites and with
our customers today.
Napier Port has continued to build and develop its
collaborative partnerships in order to ensure our region
keeps growing and we were delighted this year with the
government’s announcement and commitment to assist
with the acceleration of our planned Whakatū inland port
development. This support provides us with an exciting
opportunity to further engage with our customers
and communities in the development of efficient
infrastructure connections across Hawke’s Bay,
New Zealand and global supply chain networks. This comes
at a time when critical infrastructure development has never
before been seen as so important to the economic recovery
of New Zealand following a downturn. The Whakatū inland
port development will provide the critical infrastructure
required by our future generations to enable growth
and we are committed to working alongside the broad
range of stakeholders, especially the local community
of Whakatū, to ensure we progress this development
responsibly over time.
These partnerships are also at the heart of our
commitment to our people, planet and place. We have
included in this report an update on our progress and
plans towards our environmental, social and governance
(ESG) goals (pages 40 to 41), which are founded
on 14 of the UN’s 17 Sustainable Development Goals.
BUILDING CAPABILITY
The foundation of our strategy is built upon the value
of our people and building a resilient culture of care.
We have a diverse and skilled team and the safety
of our team and community has never before been so
important, with our continuing focus on implementing
a comprehensive health and safety programme over
the next three years, making excellent progress this year.
... continued next page
We see our success this year, foremost,
as a result of the dedication of our port's
people and the re-validation of a strategy
that puts our customers and our region’s
cargo owners at the centre of our focus.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 9

During the height of New Zealand’s COVID-19 lockdown
period our immediate focus went to ensuring our people
and community’s physical health and safety, and emotional
wellbeing, was being taken care of during a very testing
time (page 37). Today the Napier Port team remains
vigilant in its focus to protect our people, their whānau
and the wider community from the risks of COVID-19
entering via our port border.
We have managed to retain our people in the face of the
economic impacts of COVID-19 and have continued to
build on the capability and resilience within our team.
Notable additions this year have included new marine
services, legal services, finance and communications
team members. The coming year will see additions
as we build a domestic logistics services capability for
our customers, with the aim of strengthening our offerings
and providing more efficient linkages between our cargo
owner customers and the port.
OUTLOOK
The resilience and continuity of our cargo base and
our shipping line trade over the last year has been very
pleasing. Sentiment amongst our customers remains
upbeat and positive, particularly in the meat and forestry
products sectors, however significant uncertainty remains
for our cruise industry customers entering into the new
year. Neither Napier Port nor its customers are complacent
about the risks to both the global, national and regional
economy as we look to the future.
In addition to these uncertainties, there are secondary
effects which have a direct bearing on the region and
cargo flows through Napier Port. The pipfruit industry
remains dependent on Recognised Seasonal Employer
(RSE) workers, who for the most part remain unable
to travel to our region today. New Zealand’s import supply
chains continue to be disrupted by the pandemic and the
congestion issues being felt at New Zealand’s northern
most ports are likely to continue creating issues for the
foreseeable future as port infrastructure and road and rail
networks struggle to keep up with growth demands.
Napier Port will continue to engage with our customers
and broader stakeholders in assessing how these trends
will play out and we will maintain our focus on ensuring
our region remains connected and thriving.
Finally, I want to again echo Alasdair’s thanks to our
customers and our Napier Port team, and thank the
Board for their support of the management team over
this challenging period. Napier Port is performing very
well. We are looking forward to the future and to making
a difference for Hawke’s Bay’s and New Zealand’s
importers and exporters.
Ngā mihi nui,
TODD DAWSON
Chief Executive
10 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

CHIEF FINANCIAL OFFICER’S
MANAGEMENT
DISCUSSION
AND ANALYSIS
OVERVIEW
Napier Port has stood strong during a year of disruptions
and challenges for our customers, community and our
people, delivering results in most key financial metrics in-line
with the forecasts made at the time of our IPO during 2019.
Compared to the prior year, revenue grew by 0.8% and
while statutory net profit has increased by $15.2 million
to $22.0 million largely due to IPO and the capital
restructuring costs during 2019. The result from
operating activities was slightly weaker, decreasing
by 2.0% to $41.2 million.
At financial year-end Napier Port held $7.9 million
in cash and cash equivalents, in addition to $180 million
in undrawn credit facilities, after having spent $46 million
on the 6 Wharf construction project and other capital
projects during the year.
In conjunction with this annual report, Napier Port has
released Supplemental Trade Volume Data, Supplemental
Selected Financial Information and an Annual Results
Presentation that together provide further trade and
financial information, comparisons to Prospective Financial
Information (PFI) forecasts published in July 2019 as part
of the IPO process, and which form part of our 2020
reporting suite of information for investors. All documents
are available in the investor centre at:
www.napierport.co.nz/investor-centre/
REVENUE
Revenue of $100.4 million increased by 0.8% from the
prior year and surpassed the $100 million milestone for
the first time. This result was driven by improved average
revenues per unit across container services, bulk cargo,
and cruise services, which outweighed the effect of lower
container and bulk cargo trade volumes.
Container services revenue of $62.3 million was 1.9%
higher than the prior year.
Total annual container volumes reduced by 1.1%
to 268,000 TEU. Export containers reduced by 4.2%
to 128,000 TEU and import containers reduced by 1.4%
to 130,000 TEU.
Dry export cargo reduced by 8.6% to 69,000 TEU.
This reduction included cargo classified as
‘non-essential’ and thus ceased to enter Napier Port
during the COVID-19 Alert Level 4 lockdown, such
as wood pulp and timber, wool and paper products.
Canned food and other food volumes were also lower.
Reefer export cargo increased by 1.4% to 54,000 TEU.
Apples, meat and other chilled produce were categorised
as ‘essential cargo’ and therefore continued to ship
during the lockdown period. Containerised apple
and pear volumes reduced only marginally (1.0%) despite
the challenges seen in the sector due to COVID-19.
Containerised imports reduced by 1.4% to 130,000 TEU
due to small reductions in imports of dry goods and empty
containers.
Other container movements, including Discharge, Load,
Restows (‘DLR’s) and transhipped containers, increased
by 5,000 TEU, or 71%, to 11,000 TEU.
Container services’ average revenue per TEU increased
by 3% compared to the prior year due to a full year’s
impact of charges introduced to recover the cost of
infrastructure investments in prior years, growth in reefer
container services, and general tariff increases, offset
by lower container storage and depot services revenue.
Container vessel calls were down to 293 ships from
303 ships in the prior year. Shipping service schedule
disruptions arose due to COVID-19, congestion
in Australian ports, and weather events.
Bulk Cargo revenue of $31.3 million was 3.1% lower
than the prior year.
Bulk Cargo total volume of 3.1 million tonnes was 8.3%
less than the prior year. Log export volume reduced 8.3%
due to market disruptions in China in the second quarter
and the Alert Level 4 cessation of harvesting in the third
quarter. Bulk imports were lower than the prior year due
to lower demand for oil products during the lockdown
period and anticipated reductions in fertiliser volumes.
Charter vessel calls were 304 compared to 314 last year.
... continued next page
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 11

Bulk Cargo average revenue per tonne increased by 5.7%
compared to the prior year as a result of general tariff
increases and changes in cargo mix.
The 76 cruise vessel calls for the 2020 financial year were
6 more than 2019, albeit 11 fewer than originally forecast
as a result of seven cancellations due to COVID-19
and four lost to unfavourable weather. Cruise revenue
increased by 14.9% to $4.3 million.
COVID-19
As the effects of the COVID-19 pandemic became
apparent during the second quarter of the financial
year we identified a number of measures to prudently
protect our cashflow and balance sheet in light of our
commitments related to the construction of 6 Wharf
and our determination to look after our people.
Key measures identified for implementation in the period
through to the end of September 2021 included:
• Reduction of 20% in the director fee pool
1
for 6 months
• Deferral on renewal of wage and salary increases
for one year
• Specific cost reductions and deferrals across capital
and operational expenditure
• Receipt of the Government Wage subsidy (subsequently
received and then returned)
• Cancellation of the interim dividend in respect of the
2020 financial year.
These measures were expected to reduce and defer
cash spend during the 2020 and 2021 financial years.
Some of the savings accruing from these measures are
still being worked through and may impact the 2021
financial year, and many of the temporary measures
implemented in the 2020 year will conclude with normal
conditions resuming during 2021. Meanwhile, we continue
to maintain operating and capital expenditure discipline,
and the pursuit of efficiency opportunities.
The on-going effects of COVID-19 include month to
month trading volume volatility and elevated uncertainty
in respect of international markets and national economic
health, including the uncertainties within key sectors such
as pipfruit, and their challenge of attracting seasonal
labour, and cruise where the timing and eventual
magnitude of this industry’s revival is unknown. This leads
us to a cautious perspective but anchored in confidence
in the region’s products and prospects.
EXPENSES
For the financial year total operating expenses grew by
2.8% to $59.3 million compared to 2019, with employee
benefit expenses increasing 6.5%, maintenance expenses
decreasing 4.6%, and other operating expenses increasing
0.7%. Employee benefit expenses increased due to
anticipated increases in employee numbers, general
remuneration increases agreed before the year commenced,
offset by cancelled staff and executive incentives.
Maintenance expenses decreased primarily as a result
of lower fuel expenses. Other operating expenses
increased compared to 2019 due to another significant
increase in insurance costs, incremental listed company
costs, offset by lower site expenses from deferred activity.
The net result from operating activities of $41.2 million
decreased by 2% compared to the prior year. This result
decreased as a percentage of revenue from 42.1% to 41%.
Depreciation, amortisation and impairment expenses
increased by $0.8 million to $13.0 million as recent asset
additions commenced being depreciated and we recorded
an impairment of infrastructure assets that are necessarily
being removed as part of the 6 Wharf construction.
Other income and expenses were $0.7 million income
compared to $0.9 million expense in the prior year.
The prior year included the $0.9 million impairment of
the Group’s interest in the Longburn Intermodal Freight
Hub joint venture and the current year benefitted from
an investment property unrealised revaluation gain
of $1.0 million. The current year also saw, as a result
of COVID-19 uncertainties, the initial recognition of a
$0.2 million expected credit loss allowance in anticipation
of potential future trade debtor credit losses.
IPO transaction and related costs were a net income
of $0.3 million in the year compared to the $6.4 million
expense in the prior year as a result of estimates of
expenses in the prior year.
Net finance income of $0.1 million compared to $10.4
million of net finance costs in the prior year, principally
due to our net cash positive position in the current year
and the $3.6 million gross interest expense on borrowings
and $7.1 million of costs for closing out interest rate
swaps in the prior year.
Income tax expense increased by $2.1 million to
$7.3 million compared to the prior year due to higher
taxable profits. The effective tax rate was 25% for the year
due to the non-assessable investment property revaluation
gain and the reinstatement of tax depreciation on buildings
during the year which resulted in a tax benefit of
$0.7 million being recognised. This effective rate
is significantly less than the 43% in the prior year, which
was affected by non-deductible expenses related to the
IPO transaction and joint venture impairment expenses.
Reported net profit for the period attributable to the
shareholders of the Company of $22.0 million increased
significantly from $6.8 million in the prior year.
1 Consisting of a reduction of 10% paid to existing directors
and 10% from deferring the appointment of an additional director.
12 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

CAPITAL EXPENDITURE
Capital expenditure spend in the year of $46.0 million
included $25.6 million spent on 6 Wharf construction.
Other projects included the commissioning of a third tug,
Kaweka, the completion of development of our off-port
container depot site in Thames Street, Napier, wharf
maintenance activity, maintenance dredging, paving works
and replacements of mobile plant.
CASHFLOW
Cashflow from operating activities remained steady
at $29.3 million year on year, with higher tax payments
and working capital in the current year offsetting reduced
net finance costs and IPO transaction costs.
Final payments relating to the issuance of shares in the
IPO and the $5.0 million dividend paid in December 2019
resulted in a net financing activity cash outflow
of $6.6 million during the year.
After the spend on investing activities of $46.0 million
the net decrease in cash balances during the year was
$23.3 million. Napier Port ended the 2020 financial
year with no debt and $7.9 million in cash and cash
equivalents. In addition, at the balance date, Napier Port
had $180 million in undrawn credit facilities to continue
with our future capital investment programme,
and in particular, the 6 Wharf development.
Subsequent to balance date, as a result of the continued
investment activity in 6 Wharf, Napier Port has commenced
drawing on its bank facilities during October 2020.
BALANCE SHEET
At the end of the financial year the Group had total
assets of $385.4 million, including $7.9 million of cash
and cash equivalents and $377.4 million of property, plant
and equipment and other assets, which were funded
by $346.2 million of equity balances and $39.1 million
of current and non-current liabilities.
DIVIDEND
Subsequent to the balance sheet date, the Board
approved a fully imputed dividend of $10 million (5 cents
per share) payable on 18 December 2020 to those on the
share register at close of business on 4 December 2020.

KRISTEN LIE
Chief Financial Officer
Napier Port has stood strong during
a year of disruptions and challenges for
our customers, community and our people,
delivering results in most key financial
metrics in-line with the forecasts made
at the time of our IPO during 2019.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 13

CUSTOMER
CONNECTION
Better understanding what our customers
want and how we can help them achieve
their goals.
• Developing close, responsive
relationships with customers
• Delivering innovative logistics solutions
to customers
• Improving supply chain efficiencies
for customers
• Being responsive to the needs of customers
NETWORKED
INFRASTRUCTURE
Using connected network infrastructure
to ensure seamless supply chains across
our region and beyond.
• Connecting customers’ cargo to market
with a seamless infrastructure network
• Operating as an integrated and intelligent
network system
• Growing our reach across catchment areas
• Providing opportunities to develop
improved customer solutions
OUR FOUNDATION
CULTURE OF CARE
• Caring for our people, the local community and the environment
• Building a strong and resilient culture
STRATEGY DELIVERS
RESILIENCE IN
UNCERTAIN TIMES
Throughout 2020, our strategy remained relevant and kept us on course: building our capability to grow
customer solutions, strengthening partnerships and driving value. In these uncertain economic times,
we continued to steadfastly focus on partnering with our customers on smart solutions, and improving
efficiencies through innovative use of data and technology. This year we have seen significant progress
on key strategic projects and this is due to Napier Port’s people, whose depth of expertise, adaptability
and commitment has delivered results despite the disruption of COVID-19.
OUR PURPOSE

AT NAPIER PORT OUR PURPOSE IS VERY CLEAR:
TOGETHER, WE BUILD A THRIVING
REGION BY CONNECTING OUR CUSTOMERS,
PEOPLE AND COMMUNITY TO THE WORLD.
OUR STRATEGIC PILLARS
To achieve our purpose, Napier Port’s strategy is based on four pillars –
Customer Connection, Networked Infrastructure, Harnessing Data and
Technology and Collaborative Partnerships – all underpinned by our Culture
of Care. Each focus area has goals, which are then translated into team plans.
Everyone at Napier Port plays a critical role in helping achieve our purpose.
14 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

OUR FOUNDATION
STRATEGY DELIVERS
RESILIENCE IN
UNCERTAIN TIMES
Throughout 2020, our strategy remained relevant and kept us on course: building our capability to grow
customer solutions, strengthening partnerships and driving value. In these uncertain economic times,
we continued to steadfastly focus on partnering with our customers on smart solutions, and improving
efficiencies through innovative use of data and technology. This year we have seen significant progress
on key strategic projects and this is due to Napier Port’s people, whose depth of expertise, adaptability
and commitment has delivered results despite the disruption of COVID-19.
OUR PURPOSE

AT NAPIER PORT OUR PURPOSE IS VERY CLEAR:
TOGETHER, WE BUILD A THRIVING
REGION BY CONNECTING OUR CUSTOMERS,
PEOPLE AND COMMUNITY TO THE WORLD.
HARNESSING DATA
AND TECHNOLOGY
Collecting and harnessing data and using
technology to optimise our operations.
• Developing innovative technologies
that create efficiencies for customers
and Napier Port operations
• Capturing data from supply chains
and operations to deliver productivity
gains for customers and Napier Port
COLLABORATIVE
PARTNERSHIPS
Working with all stakeholders to help
drive growth in the region, to drive growth
for the port.
• Building a thriving region with others
• Supporting our local communities
• Working alongside others for the benefit
of people, place, planet
This drives everything we do and sets the scene for our strategy, which provides
a robust and comprehensive direction for the next ten years.
This purpose, together with the ten-year strategy we embarked on in 2018, has
proved itself more relevant than ever in these times of global economic uncertainty.
While carefully managing our way through the disruption caused by COVID-19
this year, we have continued to make progress on our strategic priorities:
building our capacity; growing customer solutions, partnerships and value;
and transforming business and regional outcomes.
ANNUAL REPORT 2020– TE PŪRONGO Ā-TAU 2020 / 15

STRATEGIC PRIORITIES
PROGRESS WELL
DESPITE DISRUPTION
CUSTOMER CONNECTION
Create value by gaining rich insights through deeper customer relationships.
PROJECTRESULTS
Streamlining of bulk cargo flows
to better accommodate an increase
in log volumes
An increase in bulk cargo through the existing on-port footprint
and improved safety practice through workflow efficiencies.
Propel Vehicle Booking
System improved
Propel, a new vehicle booking system developed by our innovation
team has replaced the previous application and delivered
significant savings in time and ease of use for customers when
placing vehicle bookings. What was a six-step process is now
reduced to just one step.
Significant cost savings were achieved with the system
developed in-house.
NETWORKED INFRASTRUCTURE
Support an evolving supply chain with a resilient and agile infrastructure network.
PROJECTRESULTS
Landside transport solutions
for containerised cargo customers
New landside transport services established:
• value generation and improved share across cargo owners
through smart matching of imported product in non-operating
reefer containers with reefer export cargo
• Manawatū Inland Port introduced as a point for empty container
pick-up and full export receival with CMA and trials with other
shipping lines.
Whakatū Freight Hub development
brought forward
Provincial Growth Fund support means we have the potential
to bring forward development of our inland freight hub as part
of government’s COVID-19 infrastructure investment programme.
The Freight Hub is envisaged to provide new regional cool-store
capacity, to provide transport efficiencies for customers
and improve sustainability outcomes.
Maintain port operations capability
during 6 Wharf construction
We have achieved an efficient transition of container operations
to a reduced footprint on Port, thanks to the development of the
Thames II off-port site, maintaining customer service performance
while 6 Wharf is under construction.
16 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

COLLABORATIVE PARTNERSHIPS
Collaborate to look after people, planet and place to ensure our business and community thrives
PROJECTRESULTS
Sustainability strategy completed The Port’s first sustainability strategy has been developed
and implementation is underway.
A new Safety Management System
implemented to meet international
best practice standard ISO 45001
Six health & safety frameworks have been developed, consulted,
endorsed and implemented across the organisation.
CULTURE OF CARE
Resilient and agile culture of care
PROJECTRESULTS
People Plan implementationWe have implemented a new HR information system.
A talent and succession process was developed and implemented
to support people leaders.
A performance and engagement process was developed
and we identified a supporting system ready for implementation
in the 2021 financial year.
HARNESSING DATA & TECHNOLOGY
Leverage intelligent data to create new value.
PROJECTRESULTS
Commercialisation of Napier Port
digital apps
Our in-house innovation team have developed a number
of digital apps designed to create value through efficiencies
in our operations. Further value has been derived through
their commercialisation:
• Sharewater for marine harbour planning and management
• Port Pass makes identity and site access management easy.
While endorsed by Maritime NZ, Port Pass is not specific to ports
and can be used on any site that requires authentication and
identification of staff and visitors where site access is dependent
on a H&S induction
• A container inspection mobile app has been developed to enable
any exporter receiving empty containers to easily inspect
and record container quality for standards compliance
• A Product Damages mobile app can be used by any organisation
receiving, storing and packing product to photograph and report
product and packaging issues.
Port Activity Map (PAM) developed
and implemented
PAM provides a dynamic visual map of the Port site with all the
activity scheduled on site and their associated traffic management
plans. It also enables a forward view of future planned activity.
Integrated with ArcGIS (geographical information system) and our
H&S management system, PAM saves significant administrative
time reviewing site work alerts and mitigates potential safety risks
from activities being scheduled concurrently.
Introduction of electronic sequence
sheets automating the vessel
unload and load plan
The development and introduction of electronic sequence sheets
for use by operators in container handling machinery, reduces
container re-handling, saves administrative time and saves
an estimated 2.5t of paper records annually.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 17

18 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

CUSTOMER
CONNECTION
Customers and Napier Port worked closely together to adapt to COVID-19 lockdown restrictions
and keep cargo moving safely across our wharves. The resilience of our customers over the last year
has been extraordinary – agriculture, forestry and horticulture are the backbone of New Zealand
and are contributing to the country’s economic recovery, despite facing continued uncertainty.
We will continue to invest to support the long-term growth of our customers and remain firmly committed
to developing close, collaborative partnerships so we can maximise efficiencies in their supply chains,
offer innovative logistics solutions and be responsive to their needs.
By building strong relationships with customers we can provide the systems, infrastructure and services
they need to connect to global markets.
DEVELOPING INLAND SITES TO
DELIVER GREATER EFFICIENCIES FOR
CUSTOMERS AND THE ENVIRONMENT
MANAWATŪ INLAND PORT COMMERCIAL TRIAL
Napier Port is working hard to build the most efficient
supply chain between our customers and international
markets. The means focusing not only on the port
infrastructure our customers need, but the freight hubs,
warehousing, and manufacturing they rely on and the road,
rail and sea links that connect them all to the Port –
their gateway to the world.
The Manawatū Inland Port was developed in partnership
between Napier Port, Ports of Auckland and Hall’s
Group, to create further supply chain efficiencies
for our customers, and grow regional outcomes.
An exciting commercial trial we are leading at Manawatū
Inland Port is already delivering cost efficiencies and
greater shipping choice for regional importers and
exporters across the central North Island. By designating
the freight hub in Longburn a container point of
acceptance, customers throughout Taranaki, Whanganui
and Manawatū are able to take advantage of cost-effective
one-way landside moves and can now access additional
container shipping line services through Napier Port.
Designed to reduce time to clear imports and exports,
Manawatū Inland Port is set up as a one-stop hub with
an integrated transport system and offering a range of
services including MPI biosecurity inspection, cross-dock
facilities, dry storage, packing and unpacking facilities,
fumigation and container repairs.
Led by Napier Port in collaboration with the CMA CGM
Group, MSC, Hamburg Süd, and Maersk container
shipping lines, the trial at Manawatū aims to bring
Napier Port to its customers, creating greater value and
productivity for them, transport operators and shipping
lines alike. The solution benefits haulers who can better
utilise their assets by eliminating empty truck and rail
moves. Notably, this takes waste out of the supply
chain and reduces carbon emissions across the
transport network.
The trial has seen successful results to date – improved
supply chain efficiencies and decreased costs, with more
full containers travelling to and from the shipping lines
at Napier Port.
ANNUAL REPORT 2020– TE PŪRONGO Ā-TAU 2020 / 19

WHAKATŪ FREIGHT HUB
Inland ports and freight hubs are vital infrastructure
boosting capacity and capability to meet the future
regional growth that is expected within Hawke’s Bay
and across the wider North Island in the years ahead.
The Whakatū freight hub project is part of Napier Port’s
30 Year Master Plan, which provides a vision for how we
plan to shape the development of the Port over the next
30 years. This document was published as a draft plan
at the end of 2019 and is available on our website.
The Whakatū freight hub will be a 12 ha offsite port
at Whakatū, situated between Napier and Hastings
in the heart of the pipfruit industry of Hawke’s Bay
and with direct rail and road connections to Napier Port
and the central/lower North Island. The project is currently
a greenfield site, being utilised as an apple orchard under
a lease agreement; and is undeveloped from
an infrastructure perspective.
The freight hub development provides for:
• Future growth of Napier Port, which has limited on-port
expansion capacity
• Enablement of regional growth, in particular through the
direct connection to the Manawatū Inland Port and the
proposed Kiwirail Regional Rail Hub at Bunnythorpe
• Improved supply chain efficiencies for Napier Port
and our customers, local Hawke’s Bay businesses
and lower North Island region businesses
• Increased imports and distribution locally and regionally
providing further employment and business creation
opportunities in Hawke’s Bay
• An improvement in New Zealand and Hawke’s Bay
supply chain sustainability, including environmental
benefits through the reduction of emissions and greater
use of rail.
In June we submitted to the Crown for $20 million
investment towards bringing forward phase one of the
freight hub development and to support COVID-19
recovery through shovel ready projects. The application
was approved in principle.
While the detail still needs to be worked through, we
are engaging with the Whakatū community about our
plans and we are looking forward to helping accelerate
economic growth in the region and additional employment
opportunities for the Hawke’s Bay community.
ELIMINATING WASTE IN THE SUPPLY CHAIN
HELPS OVATION DELIVER GLOBALLY
Ovation New Zealand Limited is an integrated lamb
sourcing, processing and global exporting business
of high-quality lamb that is fully New Zealand privately
owned and operated. Ovation’s stretch extends well
across the upper, central and lower North Island with
its head office based in Hawke’s Bay.
Through supply chain improvements, Napier Port
strengthened its long-term partnership with Ovation this
year, by providing more flexible and highly efficient land
side transport solutions together with a greater choice of
shipping services connecting them to international markets.
As a result, we welcomed an increase in Ovation’s
lower North Island export cargo from its Feilding plant
through our transport links at Manawatū. By removing
transportation waste from their supply chain, we have
supported Ovation to cut down on CO2 emissions,
provided access to additional container shipping line
services and reduced unnecessary movement of trucks
from plant to port. The result is an efficient, cost-effective
supply chain for Ovation and additional future cargo
volumes flowing through the wharves at Napier Port.
REGIONAL RESILIENCE KEEPS PRIMARY
SECTOR EXPORTS ON TRACK
As the lower North Island’s gateway to world markets,
Napier Port is connected into primary sector businesses
across the region and this close customer connection
proved invaluable during the COVID-19 lockdown.
Together primary sector customers and Napier Port
adapted to the restrictions and kept cargo flowing safely
through the port.
Apples, meat and other chilled produce were categorised
as ‘essential cargo’ and therefore continued to ship during
the lockdown period; however, timber, wood pulp, wool, and
paper products were deemed ‘non-essential’ cargo during
the lockdown period and reduced empty container imports.
Despite the disruptions, 2020 was a successful crop
for apple exporters, with 26,000 TEU of Hawke’s Bay
apples crossing Napier Port’s wharves on their way to
world markets. This is virtually the same quantity as last
year’s record season, despite the challenges seen due
to COVID-19 including physical distancing and the
difficulties recruiting labour, which is a great outcome.
20 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

Log export volumes in the first half of
the year were impacted due to market
disruptions in China and the Alert Level 4
lockdown which saw the cessation of harvesting.
Since then however, log volumes have seen a good
recovery. While overall volumes were down on the prior
year, they were well ahead of the fourth quarter in the prior
year with a total log export volume of 2,365,000 tonnes
this year.
As the backbone of New Zealand, the agriculture,
forestry and horticulture sectors are playing a significant
role in bolstering regional and national economic response
and recovery and Napier Port will continue to invest
to support that long-term growth and our customers.
CELEBRATING CUSTOMERS’ SUCCESS
New Zealand is driven by the success of the primary
sector and when the sector is growing and succeeding,
our port and our economy are too. Napier Port is
especially passionate about supporting our primary
producers. We have been proud sponsors of the
Napier Port Primary Sector Awards for the last
four years, recognising talent in the industry
and celebrating innovation.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 21

22 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

DATA A N D
TECHNOLOGY
Our innovation team is focused on capturing data to develop innovative technologies that deliver
productivity and efficiency gains for customers and our port operations. Our ability to integrate quickly
and easily, creating versatile apps as required is becoming a success factor and point of difference
for Napier Port. This year we implemented multiple digital applications developed by our in-house team,
that are providing efficiency gains and opening up new income streams off port.
Through development of creative and practical data
and technology solutions, our innovation team continues
to maintain and develop world class systems to support
better performance and better outcomes. We are
dedicated to building new and unique tools that benefit
customers, Port operations, and can also be used
by others in the wider port industry and beyond.
Through harnessing data and technology, we are
continuously improving the systems our people use,
as well as offering customers and suppliers a better
service and experience when putting cargo through
Napier Port.
Our ability to develop digital applications that
quickly and easily deliver efficiency gains on port
and further afield is a true point of difference for
Napier Port and one we are proud to have been able
to commercialise. As well as developing great things
in house, we are also looking to collaborate with others
who create great things too.
SHAREWATER – HARBOUR PLANNING
TECHNOLOGY DEVELOPED BY HARBOUR
PLANNING EXPERTS
Sharewater is a software application developed in-house
to plan and optimise vessel movements. Acting as a single
source of truth, Sharewater ensures that all teams are
aware of a vessel’s movement plan and their role in it.
This has enabled us to more efficiently deploy people,
plant and infrastructure and deliver more cohesive
operational performance.
Sharewater originated because we needed a Harbour
Management System that worked with both marine
and land-based teams, and accurately reflected port
operations – where planning is a process of managing
constant change and carefully balancing outcomes.
Unlike alternative harbour management systems,
Sharewater is customised for ports like ours. Built from
the ground up, Sharewater provides increased visibility
on berth activity, management of key marine resources
and makes it easier to maintain control of the complex
port environment. It provides a snapshot view of what
is happening any time, with any vessel.
As an application, Sharewater has been well proven
through development for and use at Napier Port and
can be adopted by any Port operation where complex
marine activity would benefit from having a single
system approach to planning and management.
Based on feedback from other Ports who tried it
and were impressed by Sharewater’s functionality,
we have taken it to market, with positive results so far.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 23

NAPIER PORT VESSEL
OPERATIONS GOES MOBILE
This year we digitised container vessel planning
processes - replacing printed plans with a mobile app
for crane operators, shipside heavy forklift operators
and stevedores. This means our operations can be more
dynamic and responsive, with the ability to extend the
window for accepting cargo from customers.
As well as providing greater flexibility for customers,
eliminating the print process has reduced Napier Port’s
paper consumption by 2.5 tonnes a year.
The app also captures data on crane and forklift
performance, which is analysed to identify further
efficiency opportunities.
PORT PASS – MARITIME NEW ZEALAND
ENDORSED IDENTITY CARD
Our in-house innovation team has developed,
and we have implemented our new secure identity
card and access system, called Port Pass.
We saw value in implementing a secure identification
system that met International Ship and Port Facility
Security and maritime legislation requirements, and was
a valid form of ID on its own, similar to a driver’s licence
or passport. We also wanted it to link to the Port’s safety
induction process and automated security system that
authorises safe and efficient access to our sites.
Port Pass is endorsed by Maritime New Zealand and
provides authorised, automated access to our Port for our
people, other port users, and all visitors. Currently, there
are 5,615 users representing 881 companies registered
for Port Pass.
Like Sharewater, Port Pass is a commercialised
application available to any port operator wanting the
benefit of authenticating people and a single system
approach to access.
24 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

A MARINE SIMULATOR FOR EFFICIENT,
SAFE TRAINING THAT REPLICATES
LOCAL CONDITIONS
Napier Port became the first New Zealand port to invest
in a SimFlex4 ship simulator system from FORCE
Technology in Denmark, to help train pilots and tug
masters in a safe, more controlled environment.
The simulator was originally commissioned as a training
resource as part of the 6 Wharf development project and
was fast-tracked due to COVID-19 border closures, which
prevented our marine teams from travelling internationally
for training.
The simulator enhances efficiency and safety by enabling
teams to practice more difficult manoeuvring strategies
that replicate real-world, local conditions.
Pilots and tug masters can train individually or together,
as the simulator consists of two simulator bridges linked
together. The main simulator can be used for commercial
ships such as container, bulker, tanker, cruise ships and
others but can also be used for ASD and VSP tugs.
PROPELLING EFFICIENCY
FOR TRANSPORT OPERATORS
BOOKING VEHICLES
Propel is Napier Port’s new Vehicle Booking System
which was developed in-house by our innovation team
to improve efficiency and the experience for transport
operators when booking a timeslot for pick-up and delivery
of containers at Napier Port.
Propel delivers a vehicle booking system that is intuitive
for all users. It is quick and easy to create, edit or cancel
a booking, and means the six steps it previously took
to book a container have been reduced to just one step.
Propel benefits both us and our customers and supply
chain partners. It allows us to better manage terminal
capacity and demand, ensures turnaround times are as
fast as possible and reduces the potential for congestion
during the peak export season.
Propel provides a compelling alternative to existing Port
vehicle booking systems in the Australasian market.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 25

26 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NETWORKED
INFRASTRUCTURE
Despite the challenges of 2020, we continued to make investments in our infrastructure network
to support the long-term growth of our customers and our region. The construction of 6 Wharf
will allow us to berth more and larger vessels and combined with the development of inland ports
and freight hubs, deliver even more efficient access to shipping line services
for customers connecting to world markets.
THAMES II: MAINTAINING CONTAINER
CAPACITY DURING 6 WHARF BUILD
With construction of 6 Wharf temporarily reducing on-port
terminal space, additional investments and planning have
been undertaken to ensure we continue to get customers’
cargo to market quickly during peak times.
An additional B-double truck as well as heavy plant
operators (HPOs) were sourced to maintain container
turnaround times during our peak season. The container
terminal layout was modified to optimise reefer placement
and accommodate the power plugs, generators
and technicians required. Terminal preparations
and container operations were changed to manage
for large and small exchanges.
In March, just days before New Zealand went into
lockdown, a second depot was opened in Pandora,
Napier. Thames II as we call it was developed to undertake
all container survey, pre-trip and wash services and
maximise efficiency of on-port operations. Napier Port
now has a total of 10 hectares used for empty container
storage and depot services.
ANNUAL REPORT 2020– TE PŪRONGO Ā-TAU 2020 / 27

Thames II has been built with efficiency and quick
turnaround times for customers in mind:
• The electrical substation is state of the art with a real-
time monitoring system which checks the electrical load
on the system and ensures the system is not overloaded.
• All five light towers are fitted with LED lighting,
saving energy.
• The container wash bay can take 36 containers at one
time and has been designed for efficient turnaround
with direct electrical and water connections at each bay.
It is also fitted with a demand driven diversion system
to help protect the environment and ensure that any
contaminated water from containers are sent to waste
while rainwater goes to the stormwater pipes.
USING GIS TO EFFICIENTLY
MANAGE OUR INFRASTRUCTURE
AND GROW SUSTAINABLY
To grow sustainably and in line with community
expectations, we need to make best use of our existing
land and infrastructure. Clever use of data and technology
helps us do this.
Several years ago, we started using GIS (Geographic
Information System) to gather, map, and assess data.
Using GIS, this year we have developed several digital
applications that are helping to more efficiently manage
our assets, land, environment, relationships, and safety:
• Tracking progress on 6 Wharf construction:
GIS enables us to effectively monitor progress on the
construction of 6 Wharf, especially in terms of managing
environmental impacts. On-site data collection allows
the team to quickly record field observations via their
cellphone or tablet for real-time analysis and identify
where action needs to be taken.
• Creating a safer, more efficient port:
Development of a Port Activity Map (PAM) cloud-based
application is nearly completed. PAM will help manage
dynamic on-site hazards and avoid conflicting workflows
by providing instant visibility of all site works through
mobile device, desktop computer or shared screens,
allowing potential safety risks to be quickly managed
and avoided and in doing so, supporting more
efficient operations.
28 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

MAINTAINING EXISTING
INFRASTRUCTURE
Napier Port’s wharves range in age from 14 to 85 years.
With age comes corrosion and deterioration, especially
given the aggressive marine environment. Proactive
maintenance and management are essential to prolonging
wharf life and ensuring structural integrity cost-effectively.
In 2017 we started a programme of work to inspect and
map the condition of each wharf using the Ports Australia
Wharf Condition Assessment Manual. The data gathered
during these inspections has been recorded in GIS
and this year, major repair works for Wharf 2 (North)
were completed.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 29

30 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

6 WHARF ON TRACK
6 Wharf remains Napier Port’s most significant investment project in our 150 year history.
Construction of 6 Wharf underpinned our listing as a public company, funding our building
for the future. The 350-metre wharf, when opened, will unlock future growth opportunities
for Hawke’s Bay, and the wider central and lower North Island, through providing greater
efficiency, capability and capacity in our customers’ supply chains.
Building a new 350-metre long wharf is at the heart of our
investment programme designed to maintain a seamless
service for our customers and deliver their cargo to market
efficiently as their businesses and ours grow.
The multi-purpose wharf will significantly improve our
operating efficiency by reducing secondary vessel
movements. It also gives us the ability to handle larger
container and cruise ships and boosts our resilience in the
event of a significant earthquake.
Despite a halt to construction during the Alert Level 4
lockdown, we are on track to complete 6 Wharf in 2022.
As at 30 September 2020:
• 86 of 400 concrete piles that will support the wharf have
been completed. Piling for the wharf deck is on track
to be completed by the end of 2021.
• Dredging of approximately 171,000m
3
of around
1.3 million has been completed.
• Over 150 Kororā/Little Blue Penguins have been
microchipped during their relocation from the revetment
wall where the wharf is being built and out of harm’s way
to their new purpose-built sanctuary.
• Nine marine mammal observations have been made by
trained observers. Construction and dredging stopped
when they were spotted within the observation zone.
• The construction project has recorded zero
lost-time injuries.
• Water clarity has remained within expected levels
(as measured in real-time by turbidity buoys).
This is helping us to ensure we protect Pānia Reef
and fisheries.
• There have been no regulatory environmental breaches
and noise has remained within construction limits.
• HEB Construction has employed 60 local people
to work on the project and Napier Port has employed
four full-time people who are dedicated to helping us
complete the project on time and on budget.
• We have contracted around 10 mana whenua to provide
expertise in Te Ao Māori.
• Fourteen meetings and one wananga (workshops) have
been held with our mana whenua steering komiti and
one hui a hapū to produce New Zealand’s first marine
cultural health programme.
• Working in partnership with LegaSea Hawke’s Bay
(a non-profit organisation for the health of the marine
environment) and other members of our Fisheries Liaison
Group, we secured resource consents to develop two
artificial reefs using limestone rock from the revetment
sea wall being dismantled as we build 6 Wharf.
ANNUAL REPORT 2020– TE PŪRONGO Ā-TAU 2020 / 31

32 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

COLLABORATIVE
PARTNERSHIPS
One of the greatest global lessons during the year has been the importance of working
collaboratively with others to create positive outcomes for people. People are the foundation
of Napier Port's success and by working with others, we sustainably add value to our customers,
business partners, external agencies, communities and the environment we operate in.
TSUNAMI EVACUATION EXERCISE –
MULTI-AGENCY COOPERATION
In September, Napier Port undertook our first earthquake
drill and tsunami evacuation simulation.
In an exercise involving all port users, tenants and security
teams; customers; Hawke’s Bay Civil Defence Emergency
Management Group, St John New Zealand, Salvation
Army, Red Cross, Maritime New Zealand, New Zealand
Customs Service, Fire and Emergency New Zealand,
New Zealand Police and Napier City Council we managed
to get more than 500 people evacuated and up Napier’s
Bluff Hill in under 25 minutes.

Given the number of people involved, COVID-19 Alert
Level 2 restrictions, and a very steep hill climb, it was
a challenging but hugely successful drill. The exercise
was a vital step in testing and improving Napier Port’s
emergency planning.
The lessons learned from the exercise will help
Napier Port, and others, improve plans to better
respond to natural disasters and strengthen the port
community’s safety culture.
ANNUAL REPORT 2020– TE PŪRONGO Ā-TAU 2020 / 33

PARTNERING FOR HEALTHY
REEFS AND OCEANS
Last year, our Mana Whenua Steering Komiti was
established, comprising of 15 representatives from
different marae, hapū and mana whenua entities together
with Napier Port. Together, our goal is to protect, monitor
and assess the cultural health of the marine environment,
particularly Pānia Reef, during the 6 Wharf project.
The Komiti has undertaken 14 meetings, four wānanga
(workshops) and one hui a hapū to produce New Zealand’s
first Marine Cultural Health Programme (MCHP).
The MCHP has been founded on three key pillars,
each informed by the conditions of the resource consent
for the 6 Wharf project:
• assessing and reporting on the state of the marine
environment from a mātauranga Māori perspective
• ensuring the cultural health of the marine environment
is surveyed and monitored throughout the project,
with specific reference to Pānia Reef
• Napier Port works in partnership with mana whenua
in creating the programme.
The Komiti have developed a cultural monitoring
framework, which now underpins an extensive monitoring
programme. This monitoring ensures the 6 Wharf dredging
operations are not adversely affecting the Ahuriri
marine environment.
Napier Port is also working with a Fisheries Liaison Group
to ensure robust processes are in place to manage water
quality and fisheries during dredging and disposal.
We continue to work closely with recreational and
commercial fishers, who share our commitment
to maintaining the health of the harbour and the flora
that live within it.
INVESTING IN OUR COMMUNITY
Napier Port believes in nurturing and growing the
community we are a part of by sharing our time
and resources. As well, we offer sponsorships that help
to create a healthier economy, society and environment.
Our partnerships are strategically focused; from Wairoa
in the north to Manawatū in the south and Whanganui
in the west.
We are particularly focused on partnering with Iwi or hapū
groups on environmental or social projects in Te Matau
a Māui or mana whenua within Te Whanganui-a-Orotū.
We are also strong supporters of community groups
in Hawke’s Bay undertaking activities on or near the
water, particularly with a safety focus; and initiatives
that celebrate Hawke’s Bay maritime history.
Some of our community partners include:
• Napier Port Hawke’s Bay Primary Sector Awards
This annual gala event recognises the outstanding
commitment of our region’s primary producers
and the rural professionals who support them.
Connecting Hawke’s Bay’s world-class food and fibre
to global customers, we are proud to be Principal
Sponsor of these Awards celebrating innovation,
leadership, and most importantly, community.
• Te Matau a Māui Voyaging Trust
The Trust cares for Te Matau a Māui, a waka hourua
(traditional double-hulled voyaging waka), permanently
berthed in the Ahuriri Harbour, not far from the Port.
The Trust works with families, cultural groups and young
people, taking them on sea voyages with Te Matau
a Māui and teaching a kaupapa of water safety,
local history, teamwork and responsibility.
• Napier Port Harbour to Hills Triathlon
We are proud to be the principal sponsor of this event,
consisting of a 2km ocean swim with Napier Port
as backdrop, a 95km bike ride featuring views over
Cape Kidnappers and stunning hinterland scenery
around the Tuki Tuki Valley and ending with a 21km
run taking competitors past many of Napier’s most
well-known attractions.
• Napier Port Ocean Swim
This annual event brings the community together over
a love of the ocean – with support from Surf Life
Saving New Zealand, Sport Hawke’s Bay and TriHB.
The event has a race for everyone, including races
for kids, Art Deco-themed dashes, 1km classic swims
and paddle board races.
• MTG Hawke's Bay
A museum, theatre and art gallery that brings our
region’s history to life through collections and exhibits.
We are proud naming sponsors of the Napier Port
Education Suite.
• Business Hawke’s Bay
Making sure that Hawke’s Bay has the right climate
for businesses to thrive and grow is the mission of this
business-led development agency, Business Hawke’s
Bay. Our sponsorship provides opportunities to help
local businesses grow and develop.
• Napier Port Family Fishing Classic
This annual event celebrates healthy oceans and
is a great day out for families. Working with the
harbourmaster and coastguard it's an opportunity
to highlight safe boating and the importance of always
wearing life jackets.
34 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 35

36 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

CULTURE
OF CARE
Our people are our greatest strength which is why the foundation of our purpose and our business
strategy is our Culture of Care – we are in this together. The depth of talent, resilience and commitment
right across the port came to the fore during COVID-19 with our people prioritising the safety
and wellbeing of each other, our whānau and our community. At the same time, under extraordinary
circumstances, our teams kept customers’ cargo flowing safely, constantly adapting to changing,
uncertain conditions; we continued to progress an ambitious health and safety roadmap
and our people leaders actively led wellbeing initiatives across the port.
TE KĀHUI O TE HERENGA
WAKA O AHURIRI
Te Kāhui o te Herenga Waka O Ahuriri (Napier Port
working group) was established this year to support
Te Ao Māori kaupapa within Te Herenga Waka o Ahuriri.
It is made up of representatives from across the port who
are committed to the purpose of kaupapa. In partnership
with the Te Herenga Waka o Ahuriri’s Board and senior
management team, the purpose of the Kāhui is to create,
support, promote and drive the kaupapa, and to review
and implement the Māori culture strategic plan.
Te Mahere Rautaki o Ngā Kaupapa o Te Ao Māori
(Te Ao Māori strategic plan) is underway. The Mahere
was created by the Kāhui, setting out a vision, principles,
goals and the actions required to achieve them.
During the year, the Kāhui led celebration of Māori
Language Week/Te Wiki o Te Reo Māori, building on
the initiatives put in place last year. Te reo signs were
installed around the port and te reo classes were once
again offered through te reo provider, Culture Flow.
The Kāhui added more cards to the Akoranga Putu Kāri
(te reo learning pack) that everyone at Napier Port has
and teams were encouraged to use te reo on the phone,
in emails and be able to explain Napier Port’s te reo name
– Te Herenga Waka o Ahuriri. ‘Te Herenga Waka’ means
a place of arrival, or a place to moor your waka, while
Ahuriri is the Māori name for Napier.
PROMOTING A BEST PRACTICE
APPROACH TO HEALTH AND SAFETY
Napier Port’s priority is to make sure everyone who comes
to Napier Port goes home safely every day. 2020 has seen
a renewed approach to the management of health and
safety, embarking on a three-year implementation journey.
A Safety Road Map was introduced, focusing on three
strategic projects including a:
• Safety Management System to align to best practice
standard for Occupational Health and Safety practice
(ISO45001). This year has seen Napier Port implement
over fifty percent of the requirements for the ISO45001
management system.
• Critical Risk Control Management programme focusing
on the management and control of critical safety risks, and
• Replacement health and safety information management
system (SAI360). The new information system provides
useful work tools for our people and helps streamline
reporting, compliance and provides structured
assurance for health and safety aspects.
When fully implemented, Napier Port will be better
positioned to take on a more proactive approach to
the management of health and safety and critical risk
enhancing our overall safety risk management maturity.
We continue to reinforce a health and safety culture
by supporting a “Just Culture” philosophy where health
and safety is supported and promoted through worker
participation, ensuring adequate resources are allocated
to health and safety initiatives and providing training
and information about specific health and safety risks.
CASE STUDY: SAI360
Our new health and safety IT system: SAI360 (SAI)
replaced the Vault system and is a big step forward
for managing health and safety at Napier Port. SAI helps
identify risk before it becomes an incident or accident.
It ensures consistent reporting across teams and
in real-time so we can spot trends and make
improvements; and is transparent with performance
so we know how we are tracking.
A cross-functional team of 25 people all across
Napier Port collaborated to design how we will use SAI,
identifying on-port locations for the system to reference,
developing and testing the system, and training our teams.
This initial roll out is the start of a longer journey to
continuously improve health and safety at Napier Port.
Over the next 12 months we will expand the use of SAI
for risk assessment tools, managing training, permits,
site work alerts and contractors.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 37

WORKFORCE LEADS IMPROVEMENTS
IN FATIGUE MANAGEMENT
Fatigue management is usually undertaken on an individual
basis, but this year Napier Port saw an opportunity to
take a deep dive approach and explore ways to raise
awareness of fatigue and deal with it proactively through
a risk management lens.
Our approach was similar to the Kāhui group, setting up
a collaborative, port-wide, cross-functional group who
became the driving force behind the initiative, as opposed
to being senior management led. The Fatigue Working
Group consisted of those who wanted to be involved
and also those most likely to be impacted by fatigue,
due to the nature of their work.
As a result of the diverse cross-section of people involved,
teams started to understand different department’s
issues and how they could support each other to solve
them. Increased knowledge led to champions, who have
effectively promoted fatigue awareness within their work
groups. We are fostering a culture where teams are more
comfortable raising fatigue as an issue as well as factoring
it into our planning regarding rostering and resourcing.
The working group has developed a Fatigue Risk
Management System (FRMS) for Napier Port that
is operations-driven, drawing on actual knowledge
and experience and complementing this with leading
edge, research-based thinking.
GROUND-BREAKING CEREMONY AND
BLESSING CEREMONY FOR WORKERS
In February, a ground-breaking and blessing ceremony
for workers on Napier Port’s 6 Wharf construction site was
held. A karakia was performed at the 6 Wharf construction
site, along the northern end of the port’s container
terminal, for the hundreds of people who will be working
on the project until the end of 2022, when the wharf
is expected to receive its first ship.
INVESTMENT IN LEADERSHIP AND TALENT
DISPLAYED DURING COVID-19
During COVID-19, Napier Port reaped the benefits of its
long-term approach to investing in people and building
leadership and talent port-wide. Across the wharves,
people leaders came to the fore to look after everyone’s
physical health and safety, to protect people’s emotional
wellbeing and to continue safely moving cargo through
Napier Port for our customers.
The depth of skill in our workforce meant we were able
to rapidly respond to the changing circumstances,
implementing and modifying protocols such as sanitisation
and physical distancing of people at any time, eliminating
cross over of shifts, keeping customers and port users
aware of our measures and where practical, enabling
people to work remotely.
Communication was key and during lockdown, Care and
Connect was launched, a text messaging tool to regularly
check in with teams, both on and off port. The app allowed
us to get a picture of how our people were coping and it
enabled leaders across the wharves to provide targeted
support. Care and Connect was supported with a private
Facebook group, Port People, to help keep everyone
interacting. Information could be rapidly shared with
a large number of people and Port People enabled teams
to stay connected on a social level as well.
Napier Port has an active wellbeing programme and
regardless of the challenges presented during lockdown,
we were able to continue rolling out initiatives to support
people, including:
• Webinars relating to managing psychosocial risk
• Working from home self-assessments covering
health and safety risks, and
• Education around the importance of sleep
and how to improve it.
38 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

6
ISO45001 HEALTH &
SAFETY FRAMEWORKS
INTRODUCED
OUR PEOPLE
284
TOTAL
PERMANENT
EMPLOYEES*
33
PEOPLE HAVE
WORKED AT THE PORT
FOR 20
+
YEARS
5.27
LOST TIME INJURY
FREQUENCY RATE PER
200,000 HOURS WORKED
18
CRITICAL RISK BOW
TIES DEVELOPED
16
%
OF
EMPLOYEES
ARE FEMALE
84
%
OF
EMPLOYEES
ARE MALE
5,097
HEALTH & SAFETY
INDUCTIONS
COMPLETED
32
%
OF EMPLOYEES
ARE UNDER
40 YEARS
783
PLACES ON
HEALTH AND SAFETY
COURSES
* at 30 September 2020
ANNUAL REPORT 2020– TE PŪRONGO Ā-TAU 2020 / 39

ENVIRONMENTAL,
SOCIAL AND
GOVERNANCE
At Napier Port, we are committed to collaborating with others to ensure our people,
place and planet thrive - caring for our people, the local community and the environment.
Our Sustainability Framework is aligned to the United Nations Sustainable
Development Goals (SDGs), reflecting the most urgent global environmental,
political and economic challenges. From the 17 SDGs the framework identifies
the 14 goals that we can make a meaningful contribution to as a business.
Using our framework, this year we began developing a sustainability strategy
and have made progress on a number of our focus areas. More information
about the individual SDGs can be found here: www.sdgs.un.org/goals
ENVIRONMENTAL
MANAGEMENT
SYSTEM (EMS)
Napier Port is following the
principles and aspiring to future
certification in ISO 14001:2015
or other recognised standard, with
a target to become externally
EMS accredited.
HEALTHY REEFS AND OCEANS
CULTURAL AND MONITORING
PROGRAM
We are developing a program in
partnership with research institutions
and Māori to enhance and protect
the biodiversity, health and mauri (life
force) of Pania Reef and the oceans.
Monitoring will include water quality,
coastal and marine flora and fauna,
including seawall ecology.
CORPORATE SUSTAINABILITY
AND ENVIRONMENTAL,
SOCIAL AND GOVERNANCE
(ESG) REPORTING
Napier Port is committed to
sustainability reporting and in the
short-term is working to complement
its existing ESG reporting with
implementing the recommendations
of the Task Force on Climate-related
Financial Disclosures (TCFD), and
towards full GRI reporting in the
medium term.
EQUALITY, DIVERSITY
AND INCLUSION ROADMAP
An Equality, Diversity & Inclusion
Roadmap is in progress. It defines
initiatives to build a workplace
that fosters a sense of belonging
and pride in Napier Port, with
consideration to empathetic
leadership, flexible working
arrangements, cross-division
learning, opportunities for under-
represented groups to participate
and diverse teams driving innovation.
INTEGRATED CULTURE
FRAMEWORK
We are working towards finalising
an Integrated Culture Framework,
to achieve sustainable value, cultural
diversity and authentic leadership
throughout our business.
40 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

SUSTAINABILITY STRATEGY
IMPLEMENTATION PLAN
Following on from the Sustainability
Framework, we began developing
a sustainability strategy which
has highlighted areas for further
consideration. This has not halted
our progress in many areas
and a Sustainability Strategy
Implementation Plan is currently
underway to advance our future
sustainability reporting, collecting
baseline information, setting KPIs,
establishing a Sustainability Working
Group and champions to lead
implementation of the strategy.
CLEAN SHIPPING
INCENTIVE PROGRAMS
We are currently gathering data
to investigate implementation of
clean shipping incentive programs to
reduce vessel emissions, underwater
noise, slow steaming and impacts
on environmental initiatives.
WATER QUALITY
IMPROVEMENT PROGRAM
A Water Quality Improvement
Program is being developed to
improve water quality monitoring,
stormwater treatment options, with a
focus on high risk areas first; such as
reducing generation of contaminated
stormwater, e.g. pooled water
in log yards. The program will be
aligned to our Healthy Reefs
and Oceans focus area.
EMISSIONS INVENTORY
AND PLAN
An Emissions Inventory and Plan
will be completed in conjunction
with its planned TCFD reporting.
This will lead to ongoing monitoring
and reporting for emissions, and to
inform the development of reduction
targets and mitigation actions.
CLIMATE CHANGE STRATEGY
Napier Port has committed to Zero
Emissions by 2050 and establishing
intermediate targets in the short-
term. A Climate Change Strategy will
take account of the risk assessment
results, define future targets, and
develop mitigation and infrastructure
adaption actions.
‘WHOLE OF PORT’ CLIMATE
CHANGE RISK ASSESSMENT
Napier Port will complete a ‘Whole
of Port’ Climate Change Risk
Assessment in conjunction with
its planned TCFD reporting.
ANNUAL REPORT 2020– TE PŪRONGO Ā-TAU 2020 / 41

BOARD OF DIRECTORS
ALASDAIR MACLEOD
Independent Director and Chair
HND (Civil), MBA, CMInstD
Alasdair joined the Napier Port
Board in 2014 and was appointed
Chair in December 2014. Originally
a civil engineer, Alasdair has a broad
range of experience across the
energy, infrastructure, technology
and primary sectors. As a Partner
at Deloitte for 12 years, Alasdair
led the teams that developed
New Zealand’s Aquaculture Strategy,
Horticulture Strategy and Red Meat
Sector Strategy. Alasdair is chair
of technology businesses Optimal
Workshop Ltd and SilverStripe
Limited, and the independent
member of the Board Appointments
Committee for IHC New Zealand.
Alasdair was until recently Chair
of the Hawke’s Bay chapter of
ExportNZ (a division of BusinessNZ),
and was involved in authoring the
Hawke’s Bay Regional Economic
Strategy – Matariki.
STEPHEN MOIR
Independent Director
Stephen was appointed as a director
of Napier Port on 19 December
2016 and chairs the Audit and Risk
Committee. Stephen brings an
extensive background in institutional
banking and financial markets,
having held senior roles at Westpac
Institutional Bank, Credit Suisse
(Singapore) and Citibank (Singapore,
Thailand and Australia).
Stephen is a director of The
Guardians of the New Zealand
Superannuation Fund and a director
of the Todd Family Office. He was
previously a non-executive director
on the BNZ board, and chaired both
BNZ Life Insurance Ltd and BNZ
Insurance Services Ltd, as well as
the advisory board to the Victoria
University Chair of Business in Asia.
Stephen was previously a member of
the NZ Markets Disciplinary Tribunal.
JOHN HARVEY
Independent Director
BCom, FCA, CFInstD
John joined the Napier Port Board
on 7 February 2019. John has a
background in financial services,
including NZX listings, acquisitions,
mergers and financial reporting,
with over 35 years’ professional
experience as a Chartered
Accountant. He was a Partner
at PricewaterhouseCoopers
for 23 years, including eight years
as Auckland Managing Partner.
John is a Chartered Fellow
of the Institute of Directors in
New Zealand and is currently
a director of Heartland Bank,
Investore Property, Stride Property
Group and Kathmandu Holdings.
He previously served on the board
of Port Otago for nine years,
and has been a director of Ballance
Agri-Nutrients and APN News
and Media.
VINCENT TREMAINE AM
Independent Director
BBus, FCPA, FAICD, GAIST
Vincent joined the Napier Port Board
on 7 February 2019. Vincent has
broad experience in the port sector,
having served for 16 years as CEO
of Flinders Ports Holdings, which
owns seven South Australian ports,
the Adelaide Container Terminal
and Flinders Logistics.
Vincent is currently Chair of Riverland
Holdings, Chair of SouthernLaunch.
Space and a director of South
Australia’s Statewide Super. He has
served as Chair of Ports Australia
and the South Australian Chamber
of Commerce and Industry, and as a
director of Australia’s National Heavy
Vehicle Regulator. Vincent also
worked for Toll Ports and Resources,
managing the ports of Geelong
and Hastings in Victoria. In 2020,
Vincent was awarded Membership
of the Order of Australia (AM) for
“significant service to shipping
infrastructure and freight transport”.
HON RICK BARKER
Director
MPP
Rick joined the Napier Port board
on 27 June 2019. Rick serves as
the Deputy Chair of the Hawke’s
Bay Regional Council, elected as a
Councillor for Hastings in October
2013. He was previously a Member
of Parliament for 18 years, serving six
years as a Cabinet Minister, a term
as Senior Government Whip, and
also elected as Assistant Speaker
of the House during his tenure.
Rick is currently working on behalf
of the Minister for Treaty of Waitangi
Negotiations to settle historic
grievances against the Crown.
Rick also does independent
consulting on a range of issues.
Rick completed a Master’s Degree
in Public Policy in 2012.
42 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

BOARD OF DIRECTORS
DIANA PUKETAPU
Independent Director
FCA, CMInstD
Diana joined the Napier Port Board
on 13 December 2017, and has
a background in commercial, iwi
and sports governance. Diana is
a director of Ngāti Porou Holding
Company, Tāmaki Redevelopment
Company, Manawanui Support
Limited, New Zealand Olympic
Committee, and NZ Cricket.
She has previously served as
a director of Auckland Council
Investments Limited and the World
Masters Games 2017, and was
formerly the Chief Financial Officer
of Ngāti Whātua Ōrākei Corporate.
Diana is a Fellow Chartered
Accountant and a Chartered Member
of the Institute of Directors.
BLAIR O’KEEFFE
Director
BBS (Hons), MInstD
Blair was appointed as a director
of Napier Port on 27 June 2019.
Blair is a professional company
director, with governance experience
in local and central government,
and NZX-listed companies. He is
currently a director of NZX-listed
Z Energy, Central Air Ambulance
Limited, Central Economic
Development Agency, and Chair
of Hawke’s Bay Rescue Helicopter
Trust. He has significant port and
maritime experience as former
Chair of Crown entity Maritime
New Zealand, and as longstanding
CEO of a New Zealand
port company.
From top left: Alasdair MacLeod, Stephen Moir,
Diana Puketapu, John Harvey, Vincent Tremaine,
Rick Barker, Blair O’Keeffe
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 43

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

KRISTEN LIE
Chief Financial Officer
BBS, CA, CFA, CMInstD
Kristen joined Napier Port as Chief Financial Officer
in September 2015. Kristen has more than 25 years’
financial experience and strong commercial and strategic
planning skills. Kristen returned to Hawke’s Bay after some
18 years working across London, Moscow and Oslo.
His previous roles have been with the London-based
office of listed shopping centre group Westfield, London-
based property investment company Grosvenor, as well
as Ernst & Young and PricewaterhouseCoopers.
Kristen holds a Bachelor of Business Studies from Massey
University and is a Chartered Accountant, a Chartered
Financial Analyst, and a Chartered Member of the Institute
of Directors in New Zealand.
DAVID KRIEL
General Manager – Commercial
MSc, FCILT
David joined Napier Port as General Manager –
Commercial in 2018. David has an extensive background
in transport and logistics and worked with Lodestar
and Oji Fibre Solutions from 2005 to 2018.
David is a Fellow of the Chartered Institute of Logistics
and Transport. He is a member of the East Asian Society
for Transport Studies and the Humanitarian Logistics
Association. David sits on the board of Business
Hawke’s Bay as the Napier Port representative.
VIV BULL
General Manager – Culture and Community
MSc (Hons)
Viv joined Napier Port in 2011 and leads our human
resources, health and safety, and communications
functions. Her career has included senior management
roles with the Department of Corrections, KPMG
and the State Services Commission.
Viv is an independent member of the audit and risk
committee of the Heretaunga Tamatea Settlement
Trust. She holds a Master of Science in Organisational
Psychology from the University of Canterbury.
ADAM HARVEY
General Manager – Marine and Cargo Operations
BA, BCA
Adam joined Napier Port in 2010 and is responsible
for log operations, logistics and planning, security
and shipping operations. He has a background
in human resources and prior to his current position,
was Napier Port’s Container Terminal Manager.
Adam holds a Bachelor of Commerce in Management
and Economics and a Bachelor of Arts in Geography
and Psychology, both from the University of Otago. He is
the current Chairperson of the Port Industry Association.
KIA ZIA
General Manager – Container Operations
BCom, BEng
Kia joined Napier Port in March 2020, and is responsible
for Napier Port’s container terminal, empty depot services
and crane and plant services. Kia brings a strong
background in logistics and supply chain management
to the role, coming from a role as Head of Engineering
and Supply Chain Development – ANZ at Kraft Heinz.
Kia has previously worked with Toyota Motor Corporation,
McKinsey & Company and General Motors.
Kia holds a Bachelor of Commerce in Finance and
Economics as well as a Bachelor of Engineering, majoring
in Mechanical and Manufacturing, both from the University
of Melbourne.
ANDREA MANLEY
General Manager – Strategy and Innovation
BSc/BCom, MZIMR I & II, DipBA
Andrea joined Napier Port in 2019. She is responsible
for leading strategic planning and performance, identifying
growth opportunities, implementing new strategic
initiatives and developing digital solutions. Andrea has
previously worked with Kotahi Logistics, Goodman Fielder,
Alcatel-Lucent, Brightstar, Vodafone and IBM.
Andrea holds a Bachelor of Science in Statistics,
Management Science and Operations Research from
the University of Auckland and a Diploma in Business
Administration from Henley Management College.
She is a Non-Executive Director of Pacificomm,
a member of the University of Auckland Strategic
Supply Chain Programme Advisory Group and a founding
member of the Auckland Women in Supply Chain Network.
MICHEL DE VOS
General Manager – Infrastructure Services
BEng (Nav Arc), GDip (Maritime and Logistics
Management)
Michel joined Napier Port in April 2014.
Michel is responsible for the maintenance, planning
and construction of all port infrastructure, as well as
overseeing our environmental sustainability management
programme and is Project Director for 6 Wharf.
Michel has a background in marine engineering, having
held roles with Queensland’s Gladstone Ports Corporation
and Fremantle Ports in Perth, as well as working with
multi-national dredging and maritime construction firms
on projects throughout Asia.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 45

46 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

FINANCIAL STATEMENTS
AND OTHER DISCLOSURES
CORPORATE GOVERNANCE STATEMENT 48
OTHER DISCLOSURES 56
CONSOLIDATED INCOME STATEMENT 61
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME 62
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY 63
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION 64
CONSOLIDATED STATEMENT
OF CASH FLOWS 65
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS 67
TRADE AND FINANCIAL FIVE YEAR SUMMARY 90
INDEPENDENT AUDITOR’S REPORT 91
DIRECTORY 95
ANNUAL REPORT 2020– TE PŪRONGO Ā-TAU 2020 / 47

NAPIER PORT HOLDINGS LIMITED
CORPORATE
GOVERNANCE STATEMENT
The Board of Napier Port Holdings Limited
(the Company) and its subsidiaries (collectively the
Group) are responsible for the corporate governance
of the Group. Corporate governance describes how
a company looks after the interests of its shareholders
and other stakeholders.
The Board is committed to maintaining best practice
governance policies and behaviours. This Corporate
Governance Statement sets out the corporate governance
policies, practices, and processes of the Group as at
17 November 2020 and has been approved by the Board.
The Group’s policies, practices and processes are
reviewed against the best practice principles included
in the NZX Corporate Governance Code (NZX
Code). The Board’s view is that the Group’s corporate
governance policies, practices and processes generally
follow the recommendations of the NZX Code.
This Corporate Governance Statement includes
disclosure of the extent to which the Group has followed
each of the recommendations in the NZX Code.
Further information about the Group’s corporate
governance framework is available on the Group’s Investor
Centre (www.napierport.co.nz).
PRINCIPLE 1 –
CODE OF ETHICAL BEHAVIOUR
“Directors should set high standards of ethical behaviour,
model this behaviour and hold management accountable
for these standards being followed throughout
the organisation”.
CODE OF ETHICS
Recommendation 1.1: The Board should document
minimum standards of ethical behaviour to which the
issuer’s Directors and employees are expected to adhere
(a code of ethics).
The Board and management are committed to ensuring
the Group adheres to best practice governance principles
and maintains the highest ethical standards. The Group’s
code of ethics sets out the manner in which directors and
employees should conduct themselves. The code of ethics
incorporates the requirements set out in recommendation
1.1 of the Code and forms part of the induction process
for all new employees.
The Board recognises good governance is not merely
a matter of achieving legislative compliance but ensuring
that exemplary standards and behaviour are maintained.
This involves the establishment and maintenance
of a culture at a Board and senior management level
and throughout the Group to ensure that directors
and employees deal fairly with others, with transparency,
and protect the interests of shareholders and look after
the rights of stakeholders.
SHARE TRADING POLICY
Recommendation 1.2: An issuer should have a financial
product dealing policy which applies to employees
and directors.
The Group has adopted a Share Trading Policy which
sets out the responsibilities of all directors, officers,
employees, personal services contractors, and secondees
of Napier Port Holdings Limited and its subsidiaries
for trading in the Company’s securities within a listed
company environment. The Share Trading Policy is
available on the Group’s website. This policy is separate
from, and in addition to, the legal prohibitions on insider
trading in New Zealand, and does not replace
legal obligations.
Insider trading is prohibited at all times. Directors and
employees who possess material information must not
trade in securities, advise or encourage another person
to trade or hold the Company’s securities, advise
or encourage a person to advise or encourage another
person to trade or hold the Company’s securities,
or directly or indirectly disclose or pass on the material
information to anyone else, knowing that the other person
will or is likely to use that information to trade in the
Company’s securities.
Restricted persons including the Directors, Chief
Executive Officer, Senior Management Team, Trusts
and Companies controlled by these persons, and anyone
else notified by the Chief Financial Officer, have additional
trading restrictions. Restricted persons are prohibited
from trading in securities during specific “black-out”
periods, from 30 days prior to the Group’s interim and
year-end balance dates to the first trading day after the
release of the respective periods results to the NZX,
30 days prior to the release of a product disclosure
statement for a general public offer, or such other period
as determined by the Board.
During any other period restricted persons who do not
possess material information may trade the Company’s
securities subject to notification and consent requirements.
Restricted persons may not trade until this written consent
has been received.
48 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

PRINCIPLE 2 –
BOARD COMPOSITION
AND PERFORMANCE
“To ensure an effective Board, there should be a balance
of independence, skills, knowledge, experience
and perspectives”.
BOARD CHARTER
Recommendation 2.1: The Board of an issuer should
operate under a written charter which sets out the roles
and responsibilities of the Board. The Board charter
should clearly distinguish and disclose the respective
roles and responsibilities of the Board and Management.
The Board has adopted a formal Board Charter which
sets out the respective roles, responsibilities, composition
and structure of the Board, and this is available on the
Group’s website.
The Board is ultimately responsible for setting the
strategic direction of the Group, oversight of the
management of the Group and direction of its business
strategy, with the ultimate aim being to operate the
Group as a successful business, while respecting the
rights of other stakeholders. This includes establishing
the strategies and financial objectives with the Senior
Management Team, monitoring the performance of the
Senior Management Team, monitoring compliance and risk
management, and ensuring the Group has the appropriate
controls and policies in place.
The Board delegates the day-to-day affairs and
management responsibilities of the Group to the Chief
Executive Officer and Senior Management Team to deliver
the strategic direction and goals determined by the Board.
NOMINATION AND APPOINTMENT OF DIRECTORS
Recommendation 2.2 and 2.3: Every issuer should
have a procedure for the nomination and appointment
of Directors to the Board. An issuer should enter into
written agreements with each newly appointed Director
establishing the terms of their appointment.
The Board have delegated to the Remuneration
and Nomination Committee the responsibility to make
recommendations to the Board in respect of Board
and committee composition and, when required, identify
individuals believed to be qualified to become Board
members. Procedures for the appointment and removal
of directors are set out in the Remuneration and
Nomination Committee Charter. To be eligible for
selection the candidates must demonstrate appropriate
qualities and experience, and the Committee must be
satisfied that a candidate will commit the time needed
to be fully effective in their role. The Committee will ensure
proper checks as to the proposed Director’s character,
experience, education, criminal record and bankruptcy
history are conducted and key information about the
proposed Director is provided to shareholders to assist
their decision as to whether or not to elect or re-elect
the Director.
The whole Board will have the opportunity to consider
candidates for appointment to the Board. Directors may
be appointed by the Board to fill vacancies or director
nominations may be made by shareholders for election at
the Annual Meeting of Shareholders. Directors appointed
by the Board must stand for re-election at the next Annual
Meeting of Shareholders. The NZX Listing Rules and the
Group’s constitution requires that all directors stand for
re-election at the Annual Meeting of Shareholders within
three years of last being elected. The Group enters into
a written agreement with each newly appointed director
establishing the terms of their appointment.
DIRECTORS
Recommendation 2.4: Every issuer should disclose
information about each Director in its annual report
or on its website, including a profile of experience,
length of service, independence and ownership interests
and Director attendance at Board meetings.
The Board currently comprises seven directors;
an independent Chair, four directors who are independent,
and two other non-executive directors. A profile of
experience for each director, including length of service,
is available on the Group’s website and included in the
Annual Report. Director’s ownership interests are included
in the Other Disclosures section of the Annual Report
on page 56.
ATTENDANCE AT BOARD
AND COMMITTEE MEETINGS
For the year ended 30 September 2020
Board
Audit and Risk
Management Committee
Remuneration and
Nomination Committee
Health and Safety
Committee
Number of meetings held81023
Alasdair MacLeod810
1
23
Wendie Harvey
2
----
Diana Puketapu81023
Stephen Moir81023
Vincent Tremaine 81023
John Harvey 810-3
Blair O’Keeffe77
1
23
Hon Rick Barker 86
1
-3
1. Non-committee members also in attendance.
2. Wendie Harvey resigned as Director of Port of Napier Limited
and Napier Port Holdings Limited on 3 October 2019.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 49

DIVERSITY
Recommendation 2.5: An issuer should have a written
diversity policy which includes requirements for the Board
or a relevant committee of the Board to set measurable
objectives for achieving diversity (which, at a minimum,
should address gender diversity) and to assess annually
both the objectives and the entity’s progress in achieving
them. The issuer should disclose the policy or a summary
of it.
The Group has a diversity policy which defines the
approach of the Group towards diversity and inclusion.
It also identifies the responsibilities of the Board, the
Senior Management Team and all of the Group’s
employees. The diversity policy is available on the website.
The Group recognises the value of a diverse and skilled
workforce and is committed to embedding diversity and
inclusion into employment practices and all aspects of the
Group’s operations. The Board, Senior Management Team,
Managers and Supervisors, and Human Resources will
collectively and individually treat all employees equally.
The Group will foster an environment which encourages
a variety of different viewpoints and backgrounds.
The diversity of the Board, Senior Management Team
and the Group’s employees will be reviewed annually
against agreed metrics by the Board. A diversity working
group has been established to develop a five year Equity,
Diversity and Inclusion (EDI) strategy and determine which
initiatives will be implemented to improve diversity.
The following is a breakdown of the gender composition
of the Group at the balance date:
2020*2019*
FemaleMaleFemaleMale
No. %No.%No.%No.%
Directors114686225675
Senior Management
Team
225675225675
Permanent employees431623384461721783
Total461624584501822982
* as at 30 September
DIRECTOR TRAINING
Recommendation 2.6: Directors should undertake
appropriate training to remain current on how to best
perform their duties as Directors of the issuer.
The Board seeks to ensure that any new Directors are
appropriately introduced to the Senior Management
Team and the Group’s business, that all Directors are
acquainted with relevant industry knowledge, and receive
appropriate company documents to enable them to
perform their role as a Director.
Directors will receive induction training upon appointment,
and are expected to maintain appropriate levels of
financial, legal and industry understanding throughout
their appointment.
BOARD EVALUATION
Recommendation 2.7: The Board should have
a procedure to regularly assess Director, Board
and Committee performance.
The Board undertakes a biennial performance evaluation
of itself that discusses and assesses the performance
of each Director and the Chair, compares the performance
of the Board as a whole with the requirements of the
Board Charter, reviews the performance of the Board’s
Committees, and effects any improvements to the
respective Charters deemed necessary or appropriate.
The performance evaluation is conducted in the manner
the Board deems appropriate. The last Board evaluation
was completed in November 2020.
Recommendation 2.8 and 2.9: A majority of the Board
should be independent directors. An issuer should
have an independent Chair of the Board. If the Chair
is not independent, the Chair and CEO should be
different people.
The Board currently comprises seven directors, five
of whom have been determined to be “Independent
Directors” by the Board under the NZX Listing Rules.
The Chair of the Board is an Independent Director
and is not the Chair of the Audit and Risk
Management Committee.
PRINCIPLE 3 –
BOARD COMMITTEES
“The Board should use committees where this will
enhance its effectiveness in key areas, while still retaining
Board responsibility”.
AUDIT AND RISK MANAGEMENT COMMITTEE
Recommendation 3.1: An issuer’s audit committee
should operate under a written charter. Membership on
the audit committee should be majority independent
and comprise solely of non-executive directors of the
issuer. The chair of the audit committee should be an
independent director and not be the chair of the Board.
The Audit and Risk Management Committee operates
under a written charter, which is available on the Group’s
website. The Committee is required to have a majority of
independent non-executive directors, at least two must
have an accounting or financial background, and the
Committee is required to meet at least two times per year.
The Chair of the Committee is an Independent Director
who is not the Chair of the Board. The Audit and Risk
Management Committee currently comprises
Stephen Moir (Chair), Diana Puketapu, Vincent Tremaine
and John Harvey. All directors may attend the Committee
meetings at their discretion.
The Audit and Risk Management Committee’s purpose
is to assist the Board in fulfilling its responsibilities
to discharge its financial reporting and regulatory
responsibilities, ensure the ability and independence
of the external auditor to carry out its statutory audit
role, ensure an effective internal audit and internal
control system is maintained, and ensure an appropriate
framework is maintained for the management of strategic
and operational risk.
50 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

Recommendation 3.2: Employees should only attend
audit committee meetings at the invitation of the
audit committee.
The Chief Executive Officer, Chief Financial Officer
and any other employees the Audit and Risk Management
Committee considers necessary to provide appropriate
information and explanations may attend the Committee
on invitation. The Group’s external auditor also attends
meetings at the Committee’s invitation.
REMUNERATION AND NOMINATION COMMITTEE
Recommendation 3.3 and 3.4: An issuer should have
a remuneration committee (which operates under a
written charter) unless this is carried out by the whole
board. At least a majority of the remuneration committee
should be independent directors. Management should
only attend remuneration committee meetings at the
invitation of the remuneration committee. An issuer should
establish a nomination committee to recommend director
appointments to the Board (unless this is carried out by
the whole board), which should operate under a written
charter. At least a majority of the nomination committee
should be independent directors.
The Remuneration and Nomination Committee operates
under a written charter, which is available on the Group’s
website. The Committee consists of at least three
members of the Board, the majority of the committee
which are required to be Independent Directors.
The Committee is required to meet at least two times
per year. The Chair of the Committee is an Independent
Director. The Remuneration and Nomination Committee
currently comprises Alasdair MacLeod (Chair),
Diana Puketapu, Stephen Moir, Vincent Tremaine,
Blair O’Keeffe. All directors of the Board may attend
the Committee meetings at their discretion. The Chief
Executive will act as secretary to the Committee and other
members of management may attend the Committee
meetings on invitation.
The primary responsibilities of the Committee include,
nominating and appointing directors to the Board,
remuneration of directors, remuneration and evaluation of
the Chief Executive Officer, review of the Chief Executive
Officer’s remuneration recommendations for the Senior
Management Team, review of the overall Group’s salary
and incentive policies, and succession planning.
HEALTH AND SAFETY COMMITTEE
Recommendation 3.5: An issuer should consider
whether it is appropriate to have any other board
committees as standing board committees.
All committees should operate under written charters.
An issuer should identify the members of each of its
committees, and periodically report member attendance.
Health and safety is a strong priority of the Napier Port
Board of Directors and health and safety performance
is actively reviewed at every board meeting. The Group
also has a Health and Safety Committee whose purpose
is to assist the Board in fulfilling its responsibilities in
respect of the health, safety and wellness requirements
within the Health and Safety at Work Act 2015 and
regulatory framework. The Health and Safety Committee
operates under a written charter, which is available on
the Group’s website. The Health and Safety Committee
operates in the context of the vision that every person
goes home safely every day, a culture of care, and
strategic objectives relating to people, place and planet.
The Committee consists of all members of the Board,
and is required to meet at least three times per year.
The Chair of the Committee is not the Chair of the Board.
The current Chair of the Committee is Vincent Tremaine.
The Committee may on invitation have in attendance
members of management including the General Manager
Culture and Community, and other persons including
senior health and safety staff, that it considers necessary
to provide necessary information and explanations.
The Chief Executive Officer and the General Manager
Culture and Community are responsible for drawing to
the Committee’s immediate attention any material matter
that relates to notifiable events and significant near
misses or incidents.
TAKEOVER POLICY
Recommendation 3.6: The Board should establish
appropriate protocols that set out the procedure to be
followed if there is a takeover offer for the issuer including
any communication between insiders and the bidder.
The Board should disclose the scope of independent
advisory reports to shareholders. These protocols
should include the option of establishing an independent
takeover committee, and the likely composition and
implementation of an independent takeover committee.
Given the Group’s shareholding structure, with the
Hawke’s Bay Regional Council (Council) indirectly
controlling approximately 55% of the shares of the Group,
the Board considers it highly unlikely that a third-party
would make a takeover approach or proposal without
the support of Council. Notwithstanding this, the Board
consider it prudent to have protocols in place and has
established formalised takeover response protocols
to assist the Group to prepare for, and respond to any
unsolicited approaches or proposals it may receive in
relation to a takeover. These protocols would help to
inform the Board of their roles and responsibilities with
respect to any approach or proposal, assist the Board
and its advisers in developing and executing a response
strategy, and act as a basic guide on the process
for any takeover offer.
In the event of a takeover offer, a Takeover Response
Committee, would be convened comprising independent
directors, management and appropriate financial, legal
and strategic advisers.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 51

PRINCIPLE 4 –
REPORTING AND DISCLOSURE
“The Board should demand integrity in financial
and non-financial reporting, and in the timeliness
and balance of corporate disclosures”.
CONTINUOUS DISCLOSURE
Recommendation 4.1: An issuer’s board should have
a written continuous disclosure policy.
As a company listed on the NZX Stock Exchange, the
Company is committed to keeping the market informed
of all material information relating to the Group and
its shares. In doing so, the Group will comply with its
obligations in relation to continuous disclosure of material
information under the NZX Listing Rules. The Group has
a Continuous Disclosure Policy, which is available on the
Group’s website.
CHARTERS AND POLICIES
Recommendation 4.2: An issuer should make its code
of ethics, board and committee charters and the policies
recommended in the NZX Code, together with any other
key governance documents, available on its website.
Information about the Group’s corporate governance
framework (including Code of Ethics, Board and
Committee Charters, and other key governance policies)
are available to view on the Group’s website.
FINANCIAL AND NON-FINANCIAL REPORTING
Recommendation 4.3: Financial reporting should be
balanced, clear and objective. An issuer should provide
non-financial disclosure at least annually, including
considering environmental, economic and social
sustainability factors and practices. It should explain
how operational or non-financial targets are measured.
Non-financial reporting should be informative, include
forward looking assessments, and align with key
strategies and metrics monitored by the Board.
FINANCIAL REPORTING
The Audit and Risk Management Committee oversees
the quality and integrity of financial reporting ensuring
the financial reporting is balanced, clear and objective.
The Audit and Risk Management Committee’s
responsibility for the annual and interim financial
statements includes, reviewing the quality and
acceptability of accounting policies and practices,
reporting disclosures and changes thereto, reviewing
areas involving significant judgement, estimation
or uncertainty, overseeing compliance with financial
reporting standards, appropriate laws and regulations,
assessing the overall performance of financial
management, and approving all financial reporting
to shareholders and other stakeholders.
NON-FINANCIAL REPORTING
The Group is committed to collaborating with others
to ensure our people, planet and place thrive. Caring for
our people, the local community and the environment
is core to our Culture of Care, which is the foundation
of our purpose and our business strategy.
In 2019, the Group completed a Sustainability Framework
focused on what the Group can achieve locally to respond
to global challenges like climate change, gender equality,
and ocean conservation. Our Sustainability Framework
is aligned to the United Nations Sustainable Development
Goals (SDGs), reflecting the most urgent global
environmental, political and economic challenges.
Our framework identifies 14 of the SDG goals that we
can make a meaningful contribution to as a business.
This framework is guiding the development of our
sustainability strategy.
The Group has a strategy implementation plan underway
and is developing work programmes to further advance
in the focus areas within the strategy and reporting
metrics going forward.
This Annual Report includes reporting on our strategy
and various sustainability initiatives undertaken by the
Group during the current year.
PRINCIPLE 5 –
REMUNERATION
“The remuneration of directors and executives should
be transparent, fair and reasonable.”
DIRECTORS’ REMUNERATION
Recommendation 5.1: An issuer should recommend
director remuneration to shareholders for approval in a
transparent manner. Actual director remuneration should
be clearly disclosed in the issuer’s annual report.
The Remuneration and Nomination Committee is
responsible to biennially review Director remuneration to
determine whether Director remuneration is appropriate.
This review is required to consider benchmarking data
from similar listed companies.
In respect of both their roles as directors of Napier Port
Holdings Limited and Port of Napier Limited, fees in
aggregate for all Directors are a maximum of $655,000
per annum.
Under Listing Rule 2.11.3, if the total number of Directors
subsequently increases, the Directors are permitted
(without seeking shareholder approval) to increase the
total remuneration by the amount necessary to enable
the Group to pay the additional Director or Directors
remuneration not exceeding the average amount then
being paid to each of the existing Directors (other than
the Chair).
Actual remuneration of Directors is included in the Other
Disclosures section of the Annual Report on page 58.
52 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

REMUNERATION POLICY
Recommendation 5.2: An issuer should have
a remuneration policy for remuneration of directors
and officers, which outlines the relative weightings
of remuneration components and relevant
performance criteria.
The Group has adopted a Remuneration Policy which sets
out the remuneration principles that apply to the Directors,
Chief Executive Officer and Senior Management team.
The policy requires that remuneration decisions are fair
and reasonable and based on merit, where appropriate.
The Group will not discriminate on the grounds of gender,
race, religion or belief, disability, age, sexual orientation
or gender identity. Remuneration will be set at levels that
recognise an individual’s market value (i.e. level of skills
and experience, the demand for skill and performance
in the role, and the commercial environment).
DIRECTORS
The Group’s policy is that all remuneration of Directors
will be paid in cash, they will not receive any performance-
based remuneration or retirement benefits. All Directors
(excluding the Chair) will be paid a base fee and
additional fees will be payable to the Chairs of the Audit
and Risk Management, Remuneration and Nomination,
and Health and Safety Committees and the Chair
a Chair's fee, all as recommended by the Remuneration
and Nomination Committee and approved
by Shareholders from time to time.
CHIEF EXECUTIVE OFFICER (CEO)
AND SENIOR MANAGEMENT TEAM
Determination of remuneration for the CEO and Senior
Management team is subject to a fair and thorough
process. Remuneration will be determined by the scale
and complexity of the relevant employee’s role.
A remuneration review is undertaken by the
Remuneration and Nomination Committee annually.
Under the Group’s remuneration framework, individual
performance and market relativity are key considerations,
balanced by the context in which the Group operates.
Remuneration of the CEO and Senior Management team,
include a mix of fixed and variable components.
A summary of the current provisions is as follows:
• Fixed remuneration – this includes the relevant
employee’s base salary and cash allowances and any
direct non-cash benefits (e.g. Kiwisaver contributions,
health insurance and annual leave);
• Other variable remuneration – Some Senior
Management team positions, including the CEO, are
eligible for additional remuneration from Long-Term
Incentive (LTI) and Short-Term Incentive (STI) plans.
Eligibility is determined by the Board of Directors
and the CEO. The terms and conditions of any STI
or LTI plan are identified in the individual employment
agreement of the Senior Management team member
to whom it applies.
The remuneration policy is reviewed by the Board annually.

CHIEF EXECUTIVE OFFICER (CEO) REMUNERATION
Recommendation 5.3: An issuer should disclose the
remuneration arrangements in place for the CEO in its
annual report. This should include disclosure of the base
salary, short-term incentives and long-term incentives and
the performance criteria used to determine performance-
based payments.
The remuneration of the CEO for the year ended
30 September 2020 is included in the Other Disclosures
section of the Annual Report on page 58.
The STI is based on the achievement of both financial
and non-financial objectives with an actual opportunity
in the range of 0 – 30% of the CEO’s base salary.
Strategic objectives are set each year by the
Remuneration Committee (and approved by the Board)
and closely align to Napier Port’s strategic goals.
The financial objective is to meet or exceed the normalised
net profit after tax target. The Board retains complete
discretion over paying an STI and may determine, despite
the actual performance against objectives, that a reduced
STI or no STI will be paid in any given year.
The LTI grants share rights to the CEO that will vest at the
completion of a three year vesting period. The proportion
of share rights that will actually vest depends on the
CEO’s continuous employment during the vesting period,
the achievement of certain EBITDA targets over the
prospective financial information period (2 years),
and total shareholder return (TSR) hurdles over the
vesting period.
The TSR hurdles over the vesting period are as follows:
Napier Port’s TSR
Percentage of the
relevant share rights that vest
Is not positive0%
Less than or equal to the NZX 50
Peer Group median TSR
0%
Greater than the NZX 50 Peer Group
median TSR
50%
Exceeds the NZX 50 Peer Group median
TSR, but does not exceed the 75th
percentile of the NZX 50 Peer Group
50% -
100%
(pro-rata)
Equal to or greater than the 75th percentile
TSR of the NZX 50 Peer Group
100%
Any vesting shares under the LTI are eligible for additional
dividend shares based on any cash dividends paid by the
Group during the vesting period.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 53

PRINCIPLE 6 –
RISK MANAGEMENT
“Directors should have a sound understanding of the
material risks faced by the issuer and how to manage
them. The Board should regularly verify that the issuer
has appropriate processes that identify and manage
potential and material risks”.
RISK MANAGEMENT
Recommendation 6.1: An issuer should have a risk
management framework for its business and the issuer’s
board should receive and review regular reports.
An issuer should report the material risks facing
the business and how these are being managed.
The Board and Senior Management Team are committed
to managing risk to protect our people, the environment,
financial business risks, company assets and our
reputation. The Audit and Risk Management Committee is
responsible for ensuring that management is implementing
the Group’s risk management framework and policies.
The Group has a comprehensive risk management system
in place which is used to identify and manage business
risks. The system identifies the key risks facing the
Group and the status of initiatives employed to reduce
them. Management report to the Board periodically, on
the effectiveness of the Group’s management of these
material risks. As part of risk management the Group
also has a comprehensive treasury policy that sets out
procedures to minimise financial market risk. The Group
maintains insurance policies that it considers adequate
to meet insurable risks.
HEALTH AND SAFETY
Recommendation 6.2: An issuer should disclose how it
manages its health and safety risks and should report on
its health and safety risks, performance and management.
The Group aims to ensure that everyone working at
Napier Port returns safely to their families every day.
To ensure a safe and healthy work environment, the Group
has developed, and seeks to continuously improve a
health and safety management system that is managing
safety performance and promotes a safety culture.
Managing safety performance is achieved by:
• Setting health and safety objectives and performance
criteria for all work areas, tracking performance
through lead and lag indicators, identifying trends
and implementing appropriate responses;
• Ensuring the health and safety framework is reviewed
at least annually;
• Actively encouraging accurate and timely reporting of all
accidents, incidents, near misses and unsafe conditions;
• Ensuring all serious accidents, incidents, near misses
are investigated and root cause analyses conducted;
• Ensuring risk assessments are conducted, controls
are identified and implemented based on those
assessments and where necessary updated where
risks or controls may have changed;
• In the event of an injury ensuring the Group takes an
active role in employee’s safe and early return to work;
• Ensuring the Group meets its obligations under the
Health and Safety at Work Act 2015, associated
regulations, codes of practice and standards and
guidelines regulating worker health and safety.
Promoting a health and safety culture is achieved by:
• Supporting a “Just Culture” philosophy where health
and safety is supported and promoted through enabling
worker participation, ensuring adequate resources are
allocated to health and safety initiatives and providing
training and information about specific health and safety
risks; and
• Promoting continuous improvement and good practice
in health and safety.
To promote a best practice approach to health and safety
the Group has introduced a safety implementation road
map consisting of three strategic projects. The road
map includes:
• A Safety Management System to align to best practice
standard for Occupational Health and Safety practice
(ISO45001);
• A Critical Risk Control Management program focusing
on the management and control of the port critical risks;
• A replacement health and safety information
management system (SAI360) to support streamlined
reporting, compliance, and structured assurance activity.
Every Director, Senior Manager, Middle Manager, Team
Leader/Supervisor and worker is expected to share in this
commitment to the Health and Safety Policy by following
the duties and responsibilities specified in the Napier Port
Health and Safety Duties and Responsibilities Policy.
PRINCIPLE 7 –
AUDITORS
“The Board should ensure the quality and independence
of the external audit process”.
EXTERNAL AUDIT
Recommendation 7.1 and 7.2: The Board should
establish a framework for the issuer’s relationship with
its external auditors. This should include procedures
prescribed in the NZX Code. The external auditor should
attend the issuer’s annual meeting to answer questions
from shareholders in relation to the audit.
The Audit and Risk Management Committee is
responsible for the oversight of the Group’s external audit
arrangements. These arrangements include procedures
for the matters described in Recommendation 7.1 of the
NZX Code.
54 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

Subject to any requirements of the Auditor General,
the Audit and Risk Management Committee is responsible
for recommending the appointment and removal of the
independent auditor. The Committee is also responsible
for reviewing the independence of the external auditors
and the appropriateness of any non-audit services
they undertake, having direct communication with,
and unrestricted access to, the independent auditor,
and ensuring that the key audit partner (as defined
in the NZX Listing Rules) is rotated every five years.
Napier Port has an External Auditor Relationship
Framework Policy which complements the Audit and
Risk Management Committee Charter by outlining
requirements in relation to the provision of services to
Napier Port by any external auditor on behalf of the Auditor
General. The purpose of this framework is to ensure that
the independence of Napier Port’s external auditor is not
impaired, or put in a position where it could reasonably be
perceived to be impaired, such that Napier Port’s external
financial reporting is viewed as highly reliable and credible.
The auditor of the Group is the Auditor General.
The Auditor General may approve external audit firms
to undertake the external audit of the Group. The Group’s
external auditor is EY. The total fees paid to EY in their
capacity as auditor are disclosed in the Annual Report
on page 69.
The group invites EY to attend the Annual Meeting of
Shareholders and the audit partner is available to answer
shareholder questions about the conduct of their audit
and the preparation and content of the auditor’s report.
INTERNAL AUDIT
Recommendation 7.3: Internal audit functions should
be disclosed.
The Audit and Risk Management Committee
is responsible for ensuring an effective internal audit
programme and internal control system is maintained.
These responsibilities include reviewing the objectives
and scope of the internal audit programme, ensuring these
are aligned with Napier Port’s overall risk management
framework, and reviewing significant matters reported
by the internal audit programme and how management
is responding to them.
The Group engages external providers to undertake
internal audits.
PRINCIPLE 8 –
SHAREHOLDER RIGHTS AND RELATIONS
“The Board should respect the rights of shareholders
and foster constructive relationships with shareholders
that encourage them to engage with the issuer”.
SHAREHOLDER INFORMATION
Recommendation 8.1: An issuer should have a website
where investors and interested stakeholders can access
financial and operational information and key corporate
governance information about the issuer.
The Group is committed to providing shareholders with
all information necessary to assess the Group’s direction
and performance.
This is done through a range of communication methods,
including continuous disclosure to NZX, interim and
annual reports and the Annual Shareholders’ Meeting.
The Group’s website provides company and financial
information, information about its directors, and copies
of its governance documents for shareholders and other
interested stakeholders to access at any time.
Recommendation 8.2: An issuer should allow investors
the ability to easily communicate with the issuer, including
providing the option to receive communications from the
issuer electronically.
Shareholders have the option of receiving their
communications electronically, including by email.
The Group is committed to open dialogue with
shareholders and welcomes investor enquiries.
Recommendation 8.3 and 8.4: Quoted equity security
holders should have the right to vote on major decisions
which may change the nature of the issuer in which they
are invested. If seeking additional equity capital, issuers
of quoted equity securities should offer further equity
securities to existing equity security holders of the same
class on a pro rata basis, and on no less favourable terms,
before equity securities are offered to other investors.
In accordance with the Companies Act 1993, the
Company’s constitution, the NZX Listing Rules, and other
applicable laws, the Group refers any significant matters
to Shareholders for approval at a Shareholders’ meeting.
Recommendation 8.5: The Board should ensure that
the notices of annual or special meetings of quoted
equity security holders is posted on the issuer’s website
as soon as possible and at least 20 working days prior
to the meeting.
The Group posts any Notices of Shareholder Meetings
as soon as possible and seeks, where possible,
to provide these at least 20 working days prior
to the Shareholders’ meeting.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 55

NAPIER PORT HOLDINGS LIMITED
OTHER DISCLOSURES
PRINCIPAL ACTIVITIES
The other disclosure information below has been prepared for Napier Port Holdings Limited and its subsidiaries
(the Group). The Group’s principal activities remain the commercial operation of Napier Port. There has been
no significant change in the nature of the Group’s business during the year.
DIRECTORS’ INTERESTS
The Company is required to maintain an Interests Register in which particulars of certain transactions and matters involving
the Directors must be recorded. The matters set out below were recorded in the Interest Register of the Company during
the financial year. The Directors of the Company have declared interests in the following identified entities
as at 30 September 2020:
DirectorInterestEntity
Alasdair MacLeodChairOptimal Workshop Limited
Chair / ShareholderSilverstripe Limited
ChairHold Fast Investments Limited
MemberIHC – Board Appointments Committee
DirectorSilverstripe Trustee Limited
TrusteeBig Brothers Big Sisters Hawke’s Bay
Diana PuketapuDirectorManawanui Support Limited
DirectorNgati Porou Holding Company Limited and subsidiaries
DirectorTamaki Redevelopment Company Limited and subsidiaries
DirectorNew Zealand Cricket
DirectorNew Zealand Olympic Committee
Stephen MoirDirectorThe Guardians of NZ Superannuation Fund
DirectorTodd Family Office Limited
DirectorIJAP Limited
Vincent Tremaine ChairRiverland Water Holdings Pty Limited
DirectorStatewide Superannuation Pty Limited
ChairSouthernLaunch.Space Pty Limited
DirectorGreen Industries SA
John Harvey DirectorHeartland Bank Limited
DirectorInvestore Property Limited
DirectorStride Property Limited
DirectorStride Investment Management Services Limited
DirectorKathmandu Holdings Limited
Blair O’Keeffe Contracted AdvisorHawke’s Bay Regional Investment Company Limited
Contracted AdvisorHawke’s Bay Regional Council
ChairHawke’s Bay Rescue Helicopter Trust
DirectorCentral Air Ambulance Rescue Limited
DirectorCentral Economic Development Agency Limited
DirectorZ Energy Limited
Hon Rick Barker Deputy Chair / CouncillorHawke’s Bay Regional Council
ChairWest Coast District Health Board
DirectorHawke’s Bay Regional Investment Company Limited

At 30 September 2020 no Directors, or entities related to them, had interests in shares in the Company.
56 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

DIRECTORS’ INSURANCE
All directors are beneficiaries of a company indemnity and directors’ liability insurance provided by the company
in relation to any personal liabilities and associated costs incurred while acting in their capacity as a director of the
company, other than arising from criminal liability, where precluded by statute, or from a breach of a director’s fiduciary
duty to the company.
REMUNERATION
EMPLOYEE REMUNERATION
The number of employees and former employees of the Group who, during the year, received total annual remuneration
greater than $100,000 are shown below:
Remuneration rangeNumber of
employees
2020
$100,000 - $109,99930
$110,000 - $119,99932
$120,000 - $129,99923
$130,000 - $139,99918
$140,000 - $149,99919
$150,000 - $159,9994
$160,000 - $169,9994
$170,000 - $179,9994
$180,000 - $189,9994
$190,000 - $199,9991
$210,000 - $219,9991
$230,000 - $239,9991
$270,000 - $279,9992
$280,000 - $289,9991
$290,000 - $299,9991
$310,000 - $319,9993
$320,000 - $329,9991
$380,000 - $389,9991
$400,000 - $409,9991
$440,000 - $449,9991
$730,000 - $739,9991
153
The annual remuneration of employees includes salary, redundancy, performance incentive payments on achievement of
targets, employer’s contribution to superannuation, fair value of share-based payment awards and other sundry benefits
received in their capacity as employees.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 57

DIRECTORS’ REMUNERATION
Directors received the following fees and remuneration during the year
1
:
2020
$000
Alasdair MacLeod (Chairman)129
Stephen Moir 77
Vincent Tremaine 77
Diana Puketapu 67
John Harvey 67
Blair O’Keeffe 67
Hon Rick Barker 67
Total551
1. The directors’ remuneration above includes fees and remuneration paid for Napier Port Holdings Limited. Directors fees have been set for the Chair
of the Board ($135,000 per annum), Directors other than the Chair ($70,000 per annum), and Committee Chairs (additional $10,000 per annum).
Directors’ remuneration was reduced by 10% for 6 months as part of the Group’s COVID-19 response measures.
CHIEF EXECUTIVE OFFICER’S (CEO’S) REMUNERATION
The CEO received the following remuneration and other benefits paid during the year
1
:
2020
$000
Base salary524
Other benefits
2
21
Short Term Incentive (STI)
3
164
Long Term Incentive (LTI)
4
26
735
1. The CEO’s base salary, other benefits and short-term incentive are based on the amounts paid during the year. The Long Term Incentive is based
on the fair value of the award recognised in the income statement.
2. Other benefits comprise superannuation and life insurance benefits.
3. The STI target is based on the achievement of objectives set annually and performance assessed by the Board in respect of the 2019 financial year.
4. In August 2019 the CEO was granted 62,307 share rights under the Executive LTI plan. These share rights have a three year vesting period and entitle
the CEO to the receipt of one Napier Port Holdings Limited ordinary share per share right at nil cost, plus additional shares to the value of any dividends
which would have been paid on the underlying shares during the vesting period. Vesting is subject to the CEO remaining employed by the Group during
the vesting period, the achievement of certain EBITDA targets over the prospective financial information period (2 years), and total shareholder return
(TSR) hurdles over the vesting period. The proportion of share rights that will actually vest depends on the Group’s TSR performance ranking relative to
the NZX50 index. To the extent that performance hurdles are not met or the CEO leaves employment of the Group prior to vesting, the share rights will
be forfeited. The above amount reflects the current period’s proportion of the total fair value of the award calculated, which is recognised on a straight-
line basis over the three-year vesting period. Further information on the Executive LTI plan is available in the document titled “Other Material Information”
forming part of the Company’s IPO documents available on the Disclose Register operated by the New Zealand Companies Office.
58 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

SHAREHOLDER INFORMATION
The ordinary shares of Napier Port Holdings Limited are listed on the NZX. The information in the disclosures below
has been taken from the Company’s registers as at 30 September 2020.
TWENTY LARGEST SHAREHOLDERS AT 30 SEPTEMBER 2020
HolderNumber of
Shares Held
% of Issued
Equity
Hawke’s Bay Regional Investment Company Limited110,000,00055.0
National Nominees New Zealand Limited
1
11,594,4715.80
HSBC Nominees (New Zealand) Limited
1
4,577,4602.29
Tea Custodians Limited
1
4,139,4692.07
BNP Paribas Nominees NZ Limited
1
3,787,2781.89
JB Were (NZ) Nominees Limited3,703,7641.85
Citibank Nominees (NZ) Limited
1
3,196,7711.60
JP Morgan Chase Bank
1
2,708,5141.35
Forsyth Barr Custodians Limited2,628,0271.31
Custodial Services Limited <4 A/C>2,547,9211.27
New Zealand Depository Nominee2,052,6441.03
Accident Compensation Corporation
1
2,033,7471.02
HSBC Nominees (New Zealand) Limited
1
1,989,8370.99
Custodial Services Limited <3 A/C>1,939,6890.97
PT Booster Investments Nominees Limited1,837,9260.92
Tatau Tatau Commercial Limited Partnership1,442,3070.72
Private Nominees Limited
1
1,193,3070.60
FNZ Custodians Limited1,132,5060.57
Premier Nominees Limited
1
1,104,3950.55
New Zealand Permanent Trustees Limited
1
985,0000.49
Total164,595,03382.29
1. Shareholdings held in New Zealand Central Securities Depository Limited (NZCSD). The total holding at 30 September 2020 in NZCSD
was 38,913,743.
DISTRIBUTION OF ORDINARY SHARES
HolderNumber of
Holders
Number of
Shares Held
% of Issued
Equity
1 – 5,0008,30515,811,1687.90
5,001 – 10,0006244,653,3012.33
10,001 – 100,0002986,578,9603.29
100,001 and over29172,956,57186.48
Total9,256200,000,000100.00
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 59

GEOGRAPHIC DISTRIBUTION
HolderNumber of
Holders
Number of
Shares Held
% of Issued
Equity
New Zealand9,222199,575,10699.79
Australia20317,8640.16
Other14107,0300.05
Total9,256200,000,000100.00
SUBSTANTIAL SECURITY HOLDERS
The following information is given in accordance with sub-part 5 of Part 5 of the Financial Markets Conduct Act 2013.
According to notices received, the following persons were substantial product holders in the Company
as at 30 September 2020.
HolderNumber of
Shares Held
Date of
substantial
product
holder
notice
% of
Issued
Equity
Hawke’s Bay Regional Investment Company Limited110,000,00020 August
2019
55%
SUBSIDIARY COMPANY DIRECTORS
All directors of Napier Port Holdings Limited are also directors of Port of Napier Limited (the subsidiary of the Company).
DONATIONS
During the year the Company made donations of $nil (2019: $nil) and subsidiaries made donations amounting
to $nil (2019: $nil).
WAIVERS FROM NZX LISTING RULES
Napier Port Holdings Limited has not obtained or relied on any waivers from NZX Listing Rules in the financial year ended
30 September 2020.
AUDIT FEES AND OTHER SERVICES
Under Section 19 of the Port Companies Act 1988, the Auditor-General is the auditor of the Company. The Auditor-
General has appointed Ernst & Young to undertake the audit on its behalf, pursuant to Section 15 of the Public Act 2001.
Fees paid to the auditors are disclosed in the financial statements in note 5.
CREDIT RATING
Napier Port Holdings Limited does not have a credit rating at the date of this Annual Report.
EXERCISE OF NZX DISCIPLINARY POWERS
NZX did not exercise any of its powers under Listing Rule 9.9.3 in relation to the Company in the financial year ended
30 September 2020.
60 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

The above income statement should be read in conjunction with the accompanying notes.
NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2020
2020 2019
Notes $000 $000
Revenue 4 100,427 99,616
Employee benefit expenses 31,373 29,454
Maintenance expenses 8,652 9,073
Other operating expenses 5 19,236 19,102
Operating expenses 59,261 57,629
Result from operating activities 24 41,166 41,987
Depreciation, amortisation and impairment expenses 16,17 12,983 12,171
Other (income) and expenses 5 (704) 945
IPO transaction and related costs (285) 6,404
Profit before finance costs and tax 29,172 22,467
Net finance (income)/costs 6 (149) 10,437
Profit before income tax 29,321 12,030
Income tax expense 7 7,309 5,182
Profit for the period attributable to the shareholders of the Company 22,012 6,848
EARNINGS PER SHARE:
Basic earnings per share 9 0.11 0.06
Diluted earnings per share 9 0.11 0.06
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 61

The above statement of comprehensive income should be read in conjunction with the accompanying notes.
NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2020
2020 2019
Notes $000 $000
Profit for the period attributable to the shareholders of the Company 22,012 6,848
Other comprehensive income
Items that will be reclassified to profit or loss:
Changes in fair value of cash flow hedges (110) (2,835)
Cash flow hedges transferred to profit or loss - 8,345
Deferred tax on changes in fair value of cash flow hedges 8 31 (1,543)

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 8 56 -
Impairment of sea defences (5,782) -
Deferred tax on impairment of sea defences 8 703 4,374
Total comprehensive income for the period attributable
to the shareholders of the Company 16,710 15,189
62 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

The above statement of changes in equity should be read in conjunction with the accompanying notes.
NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2020
Share

CapitalRevaluation ReserveHedging

ReserveShare-based

Payment ReserveRetained

EarningsTotal Equity
Notes $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 - - - - 22,012 22,012
Other comprehensive income - (5,079) (223) - - (5,302)
Total comprehensive income for the period - (5,079) (223) - 22,012 16,710
Business reorganisation 21 - - - - (348) (348)
Dividends 10 11 - - - (5,000) (4,989)
Transaction costs arising on share issuance 11 (720) - - - - (720)
Fair share loans to employees 11 55 - - - - 55
Share-based payments 20 - - - 56 - 56
Transfer from revaluation reserve - (64) - - 64 -
Total transactions with owners
in their capacity as owners (654) (64) - 56 (5,284) (5,946)
Total movement in equity (654) (5,143) (223) 56 16,728 10,764
Balance at 30 September 2020 245,750 70,308 (79) 389 29,877 346,245
Balance at 1 October 2018 21,000 71,077 (3,823) - 124,158 212,412
Profit for the period - - - - 6,848 6,848
Other comprehensive income - 4,374 3,967 - - 8,341
Total comprehensive income for the period - 4,374 3,967 - 6,848 15,189
Business reorganisation 21 - - - - (63,900) (63,900)
Dividends (pre initial public offering) 10 - - - - (53,957) (53,957)
Issue of ordinary shares 11 234,000 - - - - 234,000
Transaction costs arising on share issuance 11 (7,045) - - - - (7,045)
Acquisition of treasury shares 11 (323) - - - - (323)
Fair share loans to employees 11 (1,228) - - - - (1,228)
Share-based payments 20 - - - 333 - 333
Total transactions with owners
in their capacity as owners 225,404 - - 333 (117,857) 107,880
Total movement in equity 225,404 4,374 3,967 333 (111,009) 123,069
Balance at 30 September 2019 246,404 75,451 144 333 13,149 335,481
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 63

The above statement of financial position should be read in conjunction with the accompanying notes.
NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2020
2020 2019
Notes $000 $000
EQUITY
Share capital 11 245,750 246,404
Reserves 11 70,618 75,928
Retained earnings 29,877 13,149
346,245 335,481

NON-CURRENT LIABILITIES
Deferred tax liability 8 16,681 18,436
Lease liabilities 19 521 734
Derivative financial instruments 23 111 -
Provision for employee entitlements 13 447 436
17,760 19,606

CURRENT LIABILITIES
Taxation payable 4,161 3,358
Lease liabilities 19 213 200
Trade and other payables 12 17,000 12,471
21,374 16,029
385,379 371,116
NON-CURRENT ASSETS
Property, plant and equipment 17 351,177 317,185
Intangible assets 16 1,377 1,110
Investment properties 18 9,200 8,200
361,754 326,495
CURRENT ASSETS
Cash and cash equivalents 7,936 31,224
Derivative financial instruments 23 - 200
Trade and other receivables 15 15,689 13,197
23,625 44,621
385,379 371,116
On behalf of the Board of Directors, who authorised the issue of these financial statements on the 17th November 2020.

Chairman Director
64 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
2020 2019
$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers 99,051 99,132
Cash was applied to:
Payments to suppliers and employees (61,336) (56,028)
IPO transaction and related costs (478) (5,643)
Net finance costs received/(paid) 149 (3,287)
Income taxes paid (7,471) (4,407)
Net GST paid (588) (431)
Net cash flows generated from operating activities 29,327 29,336
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Proceeds from sale of property, plant and equipment 56 162
Cash was applied to:
Acquisition of property, plant and equipment and intangible assets (45,988) (17,419)
Investment in joint venture (80) (230)
Net cash flows used in investing activities (46,012) (17,487)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Proceeds from issue of ordinary shares - 234,000
Repayment of fair share loans by employees 67 -

Cash was applied to:
Net repayment of loans and borrowings - (80,500)
Termination of interest rate swaps - (7,141)
Acquisition of treasury shares - (323)
Fair Share loans to employees to acquire shares - (1,228)
Transaction costs arising on share issuance (1,122) (6,646)
Borrowing establishment costs - (632)
IPO proceeds transferred to HBRIC as part consideration for shares of PONL (348) (63,900)
Dividends paid (5,000) (53,957)
Repayment of lease liabilities (200) (189)
Net cash flows generated (used in)/from financing activities (6,603) 19,484
Net (decrease)/increase in cash and cash equivalents (23,288) 31,333
Cash and cash equivalents at beginning of the year 31,224 (109)
Cash and cash equivalents at end of the year 7,936 31,224
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 65

The above statement of cash flows should be read in conjunction with the accompanying notes.
NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
Reconciliation of profit for the period to cash flows from operating activities
2020 2019
$000 $000
Profit for the period 22,012 6,848
Adjust for non-cash items:
Fair value gains (1,000) (230)
Depreciation and amortisation 12,432 11,981
Impairment of assets 551 190
Net loss/(gain) on sale of property, plant and equipment 19 (15)
Share of loss and impairment from investment in joint venture 80 1,080
Share-based payments 56 333
Other non-cash items 197 9
Deferred tax (965) (581)
11,370 12,767
Other adjustments:
Termination of interest rate swaps included in financing activities - 7,141
Increase in current tax 803 1,355
Increase in non-current provisions 11 19
814 8,515
Movements in working capital:
Increase in trade and other receivables (1,795) (374)
(Decrease)/increase in trade and other payables (3,074) 1,580
(4,869) 1,206
Net cash flows generated from operating activities 29,327 29,336
66 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NAPIER PORT HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1 REPORTING ENTITY
The financial statements presented are those
of Napier Port Holdings Limited and its subsidiaries
(together 'the Group'). Napier Port Holdings Limited
is incorporated under the Companies Act 1993 and
domiciled in New Zealand. Napier Port Holdings Limited's
shares are publicly traded on the New Zealand Stock
Exchange (NZX).
2 BASIS OF PREPARATION
The financial statements have been prepared in
accordance with the Financial Markets Conduct Act 2013.
STATEMENT OF COMPLIANCE
The financial statements have been prepared in
accordance with Generally Accepted Accounting Practice
in New Zealand (NZ GAAP). The Group is a for-profit
entity for NZ GAAP purposes. The financial statements
comply with New Zealand equivalents to International
Financial Reporting Standards (NZ IFRS), other Financial
Reporting Standards as applicable to the Group as
a for-profit entity, and International Financial Reporting
Standards (IFRS).
BASIS OF MEASUREMENT
The financial statements have been prepared
on a historical cost basis, except for sea defences,
investment properties and derivative financial instruments,
which are measured at fair value.
FUNCTIONAL AND PRESENTATION CURRENCY
The financial statements are presented in New Zealand
Dollars (NZD), which is the Group's functional and
presentation currency and are rounded to the nearest
thousand dollars ($'000), unless otherwise stated.
USE OF JUDGEMENTS AND ESTIMATES
In applying the Group's accounting policies, management
is required to make judgements, estimates and
assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities,
income and expenses. The estimates and judgements
are continually evaluated and are based on historical
experience and other factors, including expectations
of future events that may have a financial impact
on the entity and are believed to be reasonable under
the circumstances. Actual results may differ from
these estimates.
In particular, significant areas of estimation and critical
judgements in applying accounting policies that have
a significant effect on the amounts recognised in the
financial statements are as follows:
• Valuation of sea defences (note 17)
• Estimation of useful lives and residual values
for depreciation expense (note 17)
• Deferred taxes (note 8)
Assessments of materiality require judgement and includes
consideration of relevant qualitative and quantitative
factors. Information that is considered
material and relevant to understanding these financial
statements is included within the notes accompanying
the financial statements.
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 annual report.
The revised economic situation at 30 September 2020
has required additional consideration of the expected
credit loss in relation to accounts receivable and
impairment. These additional considerations have resulted
in an increase in the expected credit loss allowance
(Note 5 and Note 15) but has not resulted in significant
changes to the recorded amounts of other assets
or liabilities.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 67

3 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The principal accounting policies applied in the
preparation of these financial statements are set out
below or, where an accounting policy is directly related
to an individual note, within the accompanying notes
to the financial statements. These policies have been
consistently applied to the years presented unless
otherwise stated.
BASIS OF CONSOLIDATION
The consolidated financial statements comprise the
financial statements for the Group at 30 September 2020
and 30 September 2019.
Subsidiaries are those entities over which the Group has
control. Control is achieved when the Group is exposed,
or has rights, to variable returns from its investment in the
entity, and has the ability to affect those returns through
its power over the entity.
The financial statements of the subsidiaries are
prepared for the same reporting period as the Parent,
using consistent accounting policies. The effects of
intercompany transactions are eliminated in preparing
the consolidated financial statements.
ACQUISITION OF SUBSIDIARY SUBJECT
TO COMMON CONTROL
On 15 July 2019, Napier Port Holdings Limited (NPHL)
acquired 100% of the issued share capital of Port of Napier
Limited (PONL) from Hawke's Bay Regional Investment
Company Limited (HBRIC). This constituted a transaction
under common control as both entities were ultimately
controlled by the same party and as such the transaction was
not within the scope of NZ IFRS 3 Business Combinations.
The pooling of interests method was adopted to account for
the acquisition as a business combination carried out under
common control. Under this method, pre-transaction carrying
values were used. Cash paid to HBRIC in conjunction
with this reorganisation has been treated similar to a
dividend and deducted from retained earnings. The financial
statements have been prepared as if PONL and NPHL
were consolidated for all of the periods presented. Historical
pre-transaction information relates to PONL as NPHL was
only incorporated shortly before the transaction and had not
conducted any business prior to acquiring PONL.
OTHER TAXES
Revenue, expenses, assets and liabilities are recognised
net of the amount of GST, except receivables and
payables, which are stated with the amount of GST
included. The net amount of GST recoverable from,
or payable to, the IRD is included as part of receivables
or payables in the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows
on a basis net of the GST component of cash flows
arising from investing and financing activities, which is
recoverable from, or payable to, the IRD which is classified
as part of operating cash flows.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash at bank and
on hand, and bank deposits and other highly liquid
investments that are readily convertible to cash and have
a maturity of three months or less. Bank overdrafts that
are repayable on demand and form an integral part of the
Group's cash management are included as a component
of cash and cash equivalents for the purpose of the
Statement of Cash Flows.
PROVISIONS
Provisions are recognised when the Group has a present
legal or constructive obligation as a result of past events
and it is probable that an outflow of resources will be
required to settle the obligation and the amount can
be reliably estimated.
FOREIGN CURRENCY TRANSLATION
Transactions in foreign currencies are translated at the
New Zealand rate of exchange ruling at the date of
transaction. At balance date, foreign monetary assets
and liabilities are translated at the closing rate,
and exchange variations arising from these are included
in the Income Statement.
NEW STANDARDS ADOPTED
There have been no new accounting standards
adopted and applied by the Group in the year ended
30 September 2020.
COMPARATIVES
Certain immaterial adjustments have been made to prior
year comparatives to align with the current year disclosure.
68 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

4 REVENUE AND SEGMENT REPORTING
2020 2019
$000 $000
Disaggregation of revenue
Port operations 98,166 97,536
Property operations 2,261 2,080
Operating income 100,427 99,616
Rental income on investment properties within property operations was $59,000 during the year (2019: $57,000).
ACCOUNTING POLICIES:
Port operations
Port operations are a series of distinct performance obligations for the provision of marine, berthage and port
infrastructure services to the Group’s customers which are accounted for as a single performance obligation.
Revenue is recognised over-time using the percentage of completion method.
Revenue is measured based on the service price specified in the relevant tariffs or specific customer contract.
The contract price for the services performed reflects the value transferred to the customer.
Property operations
Investment property lease income is recognised on a straight-line basis over the period of the lease term.
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 year the Group had a single external
customer which comprised 11% of total revenue (2019: $11%).
5 OTHER INCOME AND EXPENSES
2020 2019
$000 $000
Included within other operating expenses are:
Auditor remuneration - audit fees 199 187
Auditor remuneration - non audit services 55 732
Directors' fees 584 449
Auditor remuneration - non audit services comprises fees to EY for interim reviews, limited assurance and risk
management assurance engagements.
2020 2019
Note $000 $000
Included within other income and expenses are:
Loss/(gain) on sale of property, plant and equipment 19 (15)
Asset retirement expenses - 110
Fair value gain on investment property (1,000) (230)
Share of loss and impairment of investment in joint venture 80 1,080
Expected credit loss allowance 15 197 -
Other (income) and expenses (704) 945
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 69

6 NET FINANCE COSTS
2020 2019
Note $000 $000
Interest income (217) (136)
Finance income (217) (136)
Interest expense on borrowings 18 3,616
Termination of interest rate swaps - 7,141
Lease imputed interest 19 50 61
Less: Interest capitalised to property, plant & equipment - (245)
Finance expenses 68 10,573
Net finance costs (149) 10,437
ACCOUNTING POLICIES:
Borrowing costs are expensed as incurred except when they are directly attributable to the acquisition of a qualifying
asset. When this is the case borrowing costs are capitalised during the period of time that is required to complete
the asset for its intended use or sale.
7 INCOME TAX EXPENSE
2020 2019
Note $000 $000
Reconciliation between income tax expense and tax expense calculated
at the statutory income tax rate:
Profit before income tax 29,321 12,030
Income tax at 28% 8,210 3,368

Adjustment to prior year tax 18 161
Tax effect of non-deductible items 37 1,717
Tax effect of non-assessable items (306) (64)
Reinstatement of tax depreciation on buildings (650) -
Income tax expense 7,309 5,182
The income tax expense is represented by:
Current tax on profits for the year 8,251 5,684
Adjustments for current tax of prior periods 23 79
Current income tax expense 8,274 5,763
Deferred income tax expense for the period 8 (960) (663)
Adjustments for deferred tax of prior periods (5) 82
Deferred income tax expense (965) (581)
Income tax expense 7,309 5,182
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 a portion of the tax base of its buildings. The Group has also removed the effect of a portion 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 $650,000 and a corresponding income tax benefit for the current period.
ACCOUNTING POLICIES:
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate adjusted for changes in deferred tax assets and liabilities attributable to temporary differences.
The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance
sheet date.
70 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

8 DEFERRED TAX LIABILITY
2020 2019
$000 $000
Balance 1 October (18,436) (21,848)
Adjustment to prior year provision 5 (82)
Deferred portion of current year tax expense 960 663
Amounts credited and charged direct to equity 790 2,831
Balance at 30 September (16,681) (18,436)
Deferred tax is represented by:
Deferred tax asset
Other 1,316 844
1,316 844
Deferred tax liability
Property, plant and equipment (8,592) (9,112)
Revaluation of sea defences (9,405) (10,168)
(17,997) (19,280)
Net deferred tax liability (16,681) (18,436)
Imputation credit account
Balance at 30 September 11,410 3,834
The above amounts represent the balance of the imputation account as at the end of the reporting period, adjusted for:
• Imputation credits that will arise from the payment of the amount of the provision for income tax;
• Imputation debits that will arise from the payment of dividends recognised as a liability at the reporting date.
ACCOUNTING POLICIES:
Deferred tax is provided for temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for where
the initial recognition of assets or liabilities does not affect neither accounting nor taxable profit.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available
against which the asset can be utilised and subsequently reduced to the extent that it is no longer probable that
the related tax benefit will be realised.
Deferred tax assets and liabilities are measured based on the tax consequences that follow from the manner of their
expected recovery or settlement, the determination of which requires the application of judgement and estimates.
Deferred tax liabilities are not recognised for fair value adjustments to land, including the estimated residual portion
of revalued sea defence assets and investment properties, as their value is deemed to be recoverable through eventual
sale. Whether the residual portion of revalued sea defence assets are non-depreciable and recoverable through
eventual sale is a significant judgment in the determination of deferred tax balances as is the estimation of this
non-depreciable amount.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 71

9 EARNINGS PER SHARE
2020 2019
Cents Cents
Basic earnings per share
Basic earnings per share 0.11 0.06
Diluted earnings per share
Diluted earnings per share 0.11 0.06
2020 2019
$000 $000
Reconciliation of earnings used in calculating earnings per share:
Basic and diluted earnings per share
Net profit attributable to the ordinary shareholders of the Company 22,012 6,848
2020 2019
Number Number
(000) (000)
Weighted average number of shares used as the denominator.
Weighted average number of ordinary shares (excluding treasury stock)
used as the denominator in calculating basic earnings per share 199,414 120,532
Adjustments for calculation of diluted earnings per share:
Executive Long-Term Incentive Plan share rights 145 19
Fair Share Plan 462 56
Weighted average number of ordinary shares and potential ordinary shares
used as the denominator in calculating diluted earnings per share 200,021 120,607
ACCOUNTING POLICIES:
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the shareholders of the Group by the
weighted average number of ordinary shares outstanding during the financial year, excluding treasury shares.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares, and the weighted average number of ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
10 DIVIDENDS
2020 2019
$000 $000
Special dividend paid - 43,957
Dividends paid 5,000 10,000
5,000 53,957
ACCOUNTING POLICIES:
Provision is made for dividends when they have been approved by the Board of Directors on or before the end
of the reporting period but not distributed at the end of the reporting period.
72 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

11 CAPITAL AND RESERVES
Share Capital
2020 Number

of Shares2020

Nominal Value2019 Number

of Shares2019

Nominal Value
(000) $000 (000) $000
Balance at 1 October 199,404 246,404 21,000 21,000
Business reorganisation - - 89,000 -
Issue of ordinary shares - - 90,000 234,000
Treasury shares - - (124) (323)
Fair Share plan 21 66 (472) (1,228)
199,425 246,470 199,404 253,449
Less: Transaction costs arising on issue of shares - (720) - (7,045)
Balance at 30 September 199,425 245,750 199,404 246,404
ACCOUNTING POLICIES:
All ordinary shares have no par value, equal voting rights and share equally in dividends and surplus on winding up.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from
the proceeds.

Treasury Shares
2020 Number

of Shares2020

Nominal Value2019 Number

of Shares2019

Nominal Value
(000) $000 (000) $000
Balance at 1 October 124 323 - -
Acquired in conjunction with initial public offering - - 124 323
Balance at 30 September 124 323 124 323
Fair Share Plan
2020 Number

of Shares2020

Nominal Value2019 Number

of Shares2019

Nominal Value
(000) $000 (000) $000
Balance at 1 October 472 1,228 - -
Balance in conjunction with initial public offering - - 472 1,228
Fair share loan repayments (21) (55) - -
Dividends paid - (11) - -
Balance at 30 September 451 1,162 472 1,228
Costs incurred in relation to equity raising
The Group has incurred total transaction costs of $435,000 (2019: $13,449,000) during the year related to the initial
public offering and listing of Napier Port Holdings Limited equity securities on the New Zealand Stock Exchange.
Management have applied judgement to allocate these transaction costs between incremental costs that are directly
attributable to issuing new shares and should be deducted from equity $816,000 (2019: $5,105,000), costs that relate
to the share market listing or are otherwise not incremental and directly attributable to issuing new shares which should
be recorded as an expense/(credit) in the income statement ($202,000) (2019: $4,749,000), and joint costs/(credit) that
relate to both share issuance and listing ($179,000) (2019: $3,595,000). The joint costs were required to be allocated
between equity and expense on a rational basis and Management have applied judgement in determining this allocation.
These judgements resulted in incremental costs of $720,000 included in Share Capital within Equity and a release
of $285,000 being recognised in the Income Statement.
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 73

ACCOUNTING POLICIES:
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in fair value of derivatives that are
designated and qualify as cash flow hedge instruments, related to hedged transactions that have not yet occurred.
Revaluation reserve
The revaluation reserve relates to the revaluation of the port sea defences.
Share-based payment reserve
The employee equity reserve is used to record the value of share-based payments.
Treasury shares
The Group's own equity instruments, which are reacquired for later use in share-based payment arrangements,
are deducted from share capital.
12 TRADE AND OTHER PAYABLES
2020 2019
$000 $000
Trade payables 10,615 4,738
GST payable - 169
Trade accruals 2,741 3,889
Employee entitlement accruals 3,644 3,675
17,000 12,471
ACCOUNTING POLICIES:
Trade and other payables are initially recorded at fair value and subsequently at amortised cost using the effective
interest method.
Liabilities for wages, salaries and performance payments, including annual leave, expected to be settled within
12 months of the reporting date are recognised in respect of employee services up to the reporting date.
They are measured at the amounts expected to be paid when the liabilities are settled.
13 PROVISIONS FOR EMPLOYEE ENTITLEMENTS
2020 2019
$000 $000
Balance at 1 October 436 417
Additional provision made 27 59
Amount utilised (16) (40)
Balance at 30 September - Non-current 447 436
ACCOUNTING POLICIES:
The liability for long service leave is recognised and measured at the present value of the expected future entitlements
to be made in respect of services provided by employees up to the reporting date. Consideration is given to the
expected future wage and salary levels, experience of employee departures and periods of service.
74 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

14 LOANS AND BORROWINGS
The note below provides information about the contractual terms of the Group’s interest bearing loans and borrowings:
Committed FacilitiesUndrawn

FacilitiesCarrying Value
2020 Coupon NZ$000 NZ$000 NZ$000
Bank facilities Floating 180,000 180,000 -
Total non-current 180,000 180,000 -
Committed FacilitiesUndrawn

FacilitiesCarrying Value
2019 Coupon NZ$000 NZ$000 NZ$000
Bank facilities Floating 180,000 180,000 -
Total non-current 180,000 180,000 -
The Group has entered into three facilities with Westpac New Zealand Limited, Industrial and Commercial Bank of China
(New Zealand) Limited (ICBC New Zealand) and Industrial and Commercial Bank of China (Asia) Limited (ICBC Asia)
which provide total available facilities of $180 million, to fund the completion of the 6 wharf expansion project and general
corporate purposes. Of the total facilities, $60 million matures July 2023 and $120 million matures September 2024.
Establishment fees paid on the new facilities have been included as a prepayment within trade and other receivables
until the facilities are drawn down.
The facility agreements require that certain covenants are met and will require the Group to maintain or better specified
Debt Coverage, Interest Coverage, Equity and Group Coverage ratios.
Security for the facilities with the banks is by way of negative pledge over the assets of the Group in respect of both
the sale of assets and other security interests.
ACCOUNTING POLICIES:
On initial recognition all borrowings are recognised at the fair value of consideration received less directly attributed
transaction costs. Borrowings are subsequently measured at amortised cost using the effective interest method.
Fees paid on the establishment of loan facilities are amortised over the term of the loan.
15 TRADE AND OTHER RECEIVABLES
2020 2019
$000 $000
Trade receivables 8,833 8,620
GST receivable 420 -
Prepayments 6,436 4,577
15,689 13,197
ANNUAL REPORT 2020 – TE PŪRONGO Ā-TAU 2020 / 75