2021 Nine Month Results

NZX AND MEDIA RELEASE
25 AUGUST 2021
UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS TO 30 JUNE 2021
Log exports lead growth at Napier Port
Napier Port (NZX.NPH) today reports improved revenue and earnings for the third quarter and for the
nine months ended 30 June 2021, as the resilience and diversity of its trade portfolio continues to
mitigate the effect of container shipping disruptions caused by the ongoing effects of the COVID-19
pandemic.
Revenue growth has been driven by increases in bulk cargo volumes, in particular, strong log exports.

HIGHLIGHTS
Third Quarter to 30 June 2021
• Revenue for the third quarter rose 25.3% to $30.4 million from $24.3 million in the same
period last year
• Bulk cargo revenue increased $4.3 million, or 67.4%, to $10.6 million driven by a 75.6%
increase in log exports to 0.82 million tonnes
• Container services revenue rose 10.5% to $19.1 million from $17.3 million, as container
volumes increased 8.3% to 80,000 TEU
• The result from operating activities
1
increased 37.4% to $12.8 million from $9.3 million
• Underlying net profit after tax
2
increased 55.5% to $6.7 million from $4.3 million
• Reported net profit after tax increased 33.7% to $7.9 million
Nine Months to 30 June 2021
• Revenue for the nine months rose 8.4% to $83.0 million from $76.6 million in the same period
last year
• Bulk cargo revenue increased $8.5 million, or 38.1%, to $30.8 million driven by a 36.1%
increase in log exports to 2.24 million tonnes
• Container services revenue rose 4.1% to $50.2 million from $48.2 million, as container
volumes increased 2.8% to 215,000 TEU
• Nil cruise revenue in the current year compared to $4.2 million last year
• The result from operating activities increased 9.8% to $34.1 million from $31.1 million due to
higher revenue, offset by increased insurance costs and higher staff costs in support of growth
initiatives
• Underlying net profit after tax increased 11.7% to $17.2 million from $15.4 million
• Reported net profit after tax increased 0.7% to $18.4 million

Earnings guidance and outlook

• The impact of the current COVID-19 Alert Level 4 lockdown will depend on how the situation
develops. Napier Port is as an essential business and remains open to support the flow of
cargo

1
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.
2
Underlying net profit after tax is an alternative non-NZ GAAP measure that comprises reported net profit after tax adjusted for
non-recurring and abnormal items to ensure consistency and comparability of the financial information over the periods presented.
For further information please refer to the Supplemental Selected Financial Information.

• No change to existing guidance for an underlying result from operating activities for the year to
30 September 2021 of between $39 million to $42 million
• We are unlikely to see cruise ship visits in the 2021/22 cruise season


FINANCIAL RESULTS

Third quarter revenue rose 25.3% to $30.4 million from $24.3 million in the same period last year.
Revenue for the nine months increased 8.4% to $83.0 million from $76.6 million last year.

Container services

Container services revenue for the quarter of $19.1 million rose 10.5% from $17.3 million in the same
period last year. For the nine months, container services revenue increased by 4.1% to $50.2 million
from $48.2 million due to improved average revenue per twenty-foot equivalent unit (TEU), and higher
container volumes.

Average revenue per TEU for the nine months increased 1.2% to $233 from $230 in the same period
last year, as full and reefer containers dwelling on port for longer periods – due to shipping schedule
disruptions – offset fewer container vessel calls.

Container volumes for the quarter increased 8.3% to 80K TEU due to increased volumes of wood pulp
and timber exported and empty containers that were repositioned to Napier Port later than the prior year.

However, volumes continued to be disrupted by unreliable shipping schedules and shipping capacity
constraints. Meanwhile, volumes in the prior comparative quarter were also depressed by the COVID-
19 Alert Level 4 lockdown when non-essential cargo ceased to enter Napier Port.

For the nine months, container volumes increased 2.8% to 215K TEU from 210K TEU in the same
period last year, primarily due to increased transhipment activity related to the supply chain disruptions.
These volumes were underpinned by meat, fresh and other fresh and chilled produce trades offsetting
slightly weaker exports of pip fruit.

Bulk cargo
Bulk cargo revenues for the quarter of $10.6 million increased 67.4% from $6.3 million in the same
period last year. For the nine months, bulk cargo revenues rose 38.1% to $30.8 million from $22.3 million
as volumes increased 29.7% to 2.9 million tonnes from 2.2 million tonnes in the same period a year ago.
Log export volume increased by 36.1% to 2.2 million tonnes from 1.6 million tonnes for the nine-month
period due to sustained strong log export market conditions. In the prior year period, bulk cargo volumes
were weakened by the cessation of forest harvesting during the COVID-19 Alert Level 4 lockdown
period.
Average revenue per tonne increased 6.5% to $10.67 from $10.02 in the same period last year. This
includes one-off cost recovery revenue of $0.29 per tonne and the remainder is as a result of log exports.
Operating results
The result from operating activities for the third quarter rose 37.4% to $12.8 million from $9.3 million.
For the nine months, the result from operating activities increased 9.8% to $34.1 million from $31.1
million due to 8.4% higher revenue, offset by a 7.5% increase in total operating expenses, the principal
components of which were increased insurance and employee benefit expenses.
Underlying net profit after tax for the third quarter, after adjusting for non-recurring reported net gains,
increased by 55.5% to $6.7 million from $4.3 million in the same period last year. For the nine months
this increased by 11.7% to $17.2 million from $15.4 million.

Reported net profit after tax for the nine months increased 0.7% from $18.3 million to $18.4 million. The
current year result benefited from a $1.2 million revaluation of investment property. The prior year
benefited from a one-off tax benefit of $1.5 million due to the reinstatement of tax depreciation on
commercial buildings and the $2 million receipt of the government’s COVID-19 wage subsidy (which
was subsequently repaid in the fourth quarter of the 2020 financial year).
Chair Alasdair MacLeod said: “Napier Port is benefiting from the strength of New Zealand’s primary
sector economy. In particular, our region is proving resilient and we are proud to play our part in
connecting our customers to the world.
“Our customers continue to face supply chain disruption in containerised trades due to changing
shipping schedules, difficulties securing shipping capacity and empty container supply, with increased
freight rates and shipping charges being widely felt.
“Our results in the third quarter and the nine-month period benefited from strong offshore demand for
New Zealand forest products and a resilient performance of our region’s other main exports. This has
offset supply chain pressures and the absence of cruise ship visits due to the pandemic.
“Our results also reflect the talent of our team and their commitment to our customers. Despite the
considerable challenges to containerised trade and the constraints on operational space due to the
construction of 6 Wharf, our people have kept cargo flowing across our wharves for the benefit of New
Zealand. We are grateful for their efforts.”
Chief Executive Todd Dawson said: “We are very pleased with the performance of Napier Port for the
year to date in what has been very challenging conditions. Missing container ship calls – 15 in the last
three months – and a lack of schedule integrity resulting in the flow-on disruption to supply chains is
now a feature of the New Zealand supply chain.
“We do not see signs of this supply chain disruption abating in the immediate future. The challenge
before Napier Port is to work with our customers to minimise the impact on their businesses by
leveraging the expertise of our team and strong relationships we have forged in recent years.
“I am very proud of the progress we have made on our strategic initiatives – particularly over the last
quarter, which is our traditional peak export season. The commitment of our team to understanding our
customers’ needs and their work to deliver high levels of service and solutions has been tremendous.
“The trade outlook for the remainder of this year is positive, with strong demand for our region’s forest
products. Meanwhile, apple volumes have only slightly decreased which reflects the industry’s hard
work in mitigating the effects of seasonal labour shortages and shipping challenges. We welcome the
government’s recent decision to allow increased numbers of seasonal workers from some Pacific
nations in time for next season’s harvest.
“We continue to invest in building our capability and capacity for the future, including the development
of our long-term infrastructure investment, 6 Wharf. Construction of this multi-generational asset
continues to be on time and on budget. We have recently celebrated the effective completion of the
piling part of the construction programme consisting of drilling and placing nearly 400 piles. We expect
the new wharf to go live in late 2022, and detailed operational planning for its use is well under way.”

BALANCE SHEET AND CAPITAL EXPENDITURE

Over the nine-month period Napier Port has invested $76.3 million in capital assets, further progressing
its strategic infrastructure development programme, led by the 6 Wharf development project.
Napier Port ended June 2021 with drawn bank debt of $60.0 million, having commenced drawing on our
banking facilities earlier in the current financial year to fund the 6 Wharf development. In addition, we
have undrawn bank facilities of $120 million.

EARNINGS GUIDANCE AND OUTLOOK

Mr Dawson said the challenges to container-based supply chains from regional and global shipping
disruptions are continuing to overhang the free flow of cargo.

“The re-emergence of COVID-19 into New Zealand’s community is an unwelcome development and a
situation that is evolving daily. The impact on Napier Port will depend on how this situation develops,
the government’s response, and the effect these factors have on the businesses of our cargo customers.
Napier Port’s focus will remain on keeping its people and community safe and maintaining our ability to
operate to support our economy. As a result of the current lockdown, we expect to see some reduced
cargo volume due to non-essential businesses ceasing or limiting their operations, however at this time
we are unable to estimate the impact of this.

“We continue to expect an underlying result from operating activities for the year to 30 September
2021 of between $39 million to $42 million.

“Looking forward, we have seen some early market signals suggesting Chinese log market prices may
be moderating. In addition, log exporters continue to experience higher shipping costs which is
negatively affecting the economics of this trade and which both have an influence on the volume of
exported logs from New Zealand,” Mr Dawson said.
“As expected, cruise ship visits are unlikely to resume for the coming cruise season, which traditionally
commences in October and extends through the summer.

ENDS

For more information:

Investors Media
Kristen Lie Jo-Ann Young
Chief Financial Officer Communications Manager
DDI +64 6 833 4405 C: +64 6 833 4521
E: kristenl@napierport.co.nz E: jo-anny@napierport.co.nz

Further detail on Napier Port’s financial performance for the nine months to 30 June 2021 is included in
the financial statements and supplemental selected financial information released to the NZX today and
available on the company’s investor centre at: https://www.napierport.co.nz/investor-centre/

Conference Call
Napier Port Chair Alasdair MacLeod, Chief Executive Todd Dawson and Chief Financial Officer Kristen
Lie will host a conference call at 11.00am (NZT) (9.00am, AEST) today to discuss the results. The
presentation material to which Napier Port will refer during the call has this morning been released to the
NZX and posted on Napier Port’s investor centre.

To attend the conference call participants must pre-register at the following link:
https://s1.c-conf.com/DiamondPass/10015815-aj93nd.html
Registrations can be taken right up to the commencement of the call.

About Napier Port
Napier Port is New Zealand’s fourth largest port by container volume. We are the gateway for Hawke’s
Bay and lower North Island’s exports and operate a long-term regional infrastructure asset that supports
the regional economy. Our strategic purpose is to collaborate with the people and organisations that have
a stake in helping our region grow.

---

NINE MONTH
FINANCIAL
STATEMENTS
FOR THE NINE MONTHS ENDED 30 JUNE 2021

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

The above income statement should be read in conjunction with the accompanying notes.
NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED
INCOME STATEMENT
FOR THE NINE MONTHS ENDED 30 JUNE 2021
30 June 30 June
2021 2020

Unaudited Unaudited
Notes $000 $000
Restated
Revenue 6 83,005 76,553
Employee benefit expenses 26,974 25,313
Property and plant expenses 8,294 7,847
Other operating expenses 13,608 12,314
Operating expenses 48,876 45,474
Result from operating activities 34,129 31,079
Depreciation, amortisation and impairment expenses 7 9,895 9,738
Other (income)/expenses 8 (1,036) (1,679)
IPO transaction and related costs - (201)
Profit before finance costs and tax 25,270 23,221
Net finance costs/(income) 25 (151)
Profit before income tax 25,245 23,372
Income tax expense 9 6,804 5,056
Profit for the period attributable to the shareholders of the Company 18,441 18,316
EARNINGS PER SHARE:
Basic earnings per share 0.09 0.09
Diluted earnings per share 0.09 0.09
NINE MONTH FINANCIAL STATEMENTS 2021 / 1

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED 30 JUNE 2021
30 June 30 June
2021 2020

Unaudited Unaudited
Notes $000 $000
Restated
Profit for the period attributable to the shareholders of the Company 18,441 18,316
Other comprehensive income
Items that will be reclassified to profit or loss:
Changes in fair value of cash flow hedges 154 -
Cash flow hedges transferred to profit or loss (105) -
Deferred tax on changes in fair value of cash flow hedges (14) -

Items that will not be reclassified to profit or loss:
Changes in fair value of cash flow hedges (185) -
Cash flow hedges transferred to property, plant and equipment 183 (200)
Deferred tax on changes in fair value of cash flow hedges - 56
Impairment of sea defences 5 - (5,782)
Deferred tax on impairment of sea defences 5 - 703
Total comprehensive income for the period attributable
to the shareholders of the Company 18,474 13,093
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
2 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE NINE MONTHS ENDED 30 JUNE 2021
Share

CapitalRevaluation ReserveHedging

ReserveShare-based

Payment ReserveRetained

EarningsTotal Equity
$000 $000 $000 $000 $000 $000
Balance at 1 October 2020 245,750 70,308 (79) 389 29,877 346,245
Profit for the period - - - - 18,441 18,441
Other comprehensive income - - 33 - - 33
Total comprehensive income for the period - - 33 - 18,441 18,474
Dividends 32 - - - (15,591) (15,559)
Share-based payments - - - 99 - 99
Fair share loans - employee repayments 39 - - - - 39
Total transactions with owners
in their capacity as owners 71 - - 99 (15,591) (15,421)
Total movement in equity 71 - 33 99 2,850 3,053
Balance at 30 June 2021 (Unaudited) 245,821 70,308 (46) 488 32,727 349,298
Balance at 1 October 2019 246,404 75,451 144 333 13,149 335,481
Profit for the period - restated - - - - 18,316 18,316
Other comprehensive income - restated - (5,079) (144) - - (5,223)
Total comprehensive income for the period - (5,079) (144) - 18,316 13,093
Dividends 11 - - - (5,000) (4,989)
Transaction costs arising on share issuance 101 - - - - 101
Share-based payments - - - 42 - 42
Fair share loans - employee repayments 40 - - - - 40
Transfer from revaluation reserve - restated - (64) - - 64 -
Total transactions with owners
in their capacity as owners 152 (64) - 42 (4,936) (4,806)
Total movement in equity 152 (5,143) (144) 42 13,380 8,287
Balance at 30 June 2020 (Unaudited) 246,556 70,308 - 375 26,529 343,768
The above statement of changes in equity should be read in conjunction with the accompanying notes.
NINE MONTH FINANCIAL STATEMENTS 2021 / 3

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2021
30 June 30 Sept
2021 2020

Unaudited Audited
$000 $000
EQUITY
Share capital 245,821 245,750
Reserves 70,750 70,618
Retained earnings 32,727 29,877
349,298 346,245
NON-CURRENT LIABILITIES
Loans and borrowings 58,718 -
Deferred tax liability 16,406 16,681
Lease liabilities 359 521
Derivative financial instruments 37 111
Provision for employee entitlements 490 447
76,010 17,760
CURRENT LIABILITIES
Taxation payable 1,538 4,161
Lease liabilities 217 213
Derivative financial instruments 126 -
Trade and other payables 23,862 17,000
25,743 21,374
451,051 385,379
NON-CURRENT ASSETS
Property, plant and equipment 420,223 351,177
Intangible assets 1,281 1,377
Investment properties 10,400 9,200
431,904 361,754
CURRENT ASSETS
Cash and cash equivalents 2,517 7,936
Derivative financial instruments 99 -
Trade and other receivables 16,531 15,689
19,147 23,625
451,051 385,379
On behalf of the Board of Directors, who authorised the issue of the financial statements on 24 August 2021.
Chairman Director

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

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE NINE MONTHS ENDED 30 JUNE 2021
30 June 30 June
2021 2020

Unaudited Unaudited
$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers 80,863 75,093
Receipt of wage subsidy - 2,036
Net GST received 523 27

Cash was applied to:
Payments to suppliers and employees (45,239) (46,042)
IPO transaction and related costs - (478)
Net finance costs (paid)/received (25) 151
Income taxes paid (9,715) (7,781)
Net cash flows generated from operating activities 26,407 23,006
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Proceeds from sale of property, plant and equipment 43 58

Cash was applied to:
Acquisition of property, plant and equipment and intangible assets (76,250) (30,936)
Net cash flows used in investing activities (76,207) (30,878)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Proceeds from loans and borrowings 60,000 -
Repayment of fair share loans by employees 71 51

Cash was applied to:
Repayment of lease liabilities (158) (149)
Transaction costs arising on share issuance - (299)
Dividends paid (15,532) (5,000)
Net cash flows generated from/(used in) financing activities 44,381 (5,397)
Net decrease in cash and cash equivalents (5,419) (13,269)
Cash and cash equivalents at beginning of the period 7,936 31,224
Cash and cash equivalents at end of the period 2,517 17,955
NINE MONTH FINANCIAL STATEMENTS 2021 / 5

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CASH FLOWS (CONTINUED)
FOR THE NINE MONTHS ENDED 30 JUNE 2021
Reconciliation of profit for the period to cash flows from operating activities
30 June 30 June
2021 2020

Unaudited Unaudited
$000 $000
Restated
Profit for the period 18,441 18,316
Adjust for non-cash items:
Fair value gain (1,200) -
Depreciation and amortisation 9,895 9,187
Impairment of assets - 551
Net loss on sale of property, plant and equipment 63 18
Share-based payments 99 42
Other non-cash items 101 339
Deferred tax (289) (1,920)
8,669 8,217
Other adjustments:
Decrease in current tax (2,623) (805)
Increase in non-current provision 43 41
(2,580) (764)
Movements in working capital:
Increase in trade and other receivables (1,722) (1,459)
Increase/(decrease) in trade and other payables 3,599 (1,304)
1,877 (2,763)
Net cash flows generated from operating activities 26,407 23,006
The above statement of cash flows should be read in conjunction with the accompanying notes.
6 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NAPIER PORT HOLDINGS LIMITED
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED 30 JUNE 2021
1 REPORTING ENTITY
The interim financial statements presented are those
of Napier Port Holdings Limited and its subsidiaries
(together “the Group”). Napier Port Holdings Limited
is incorporated under the Companies Act 1993
and domiciled in New Zealand. Napier Port Holdings
Limited’s shares are publicly traded on the New Zealand
Stock Exchange (NZX).
2 BASIS OF PREPARATION
STATEMENT OF COMPLIANCE
The interim financial statements have been prepared
in accordance with New Zealand equivalents to
International Accounting Standard 34, Interim Financial
Reporting (NZ IAS 34), and International Accounting
Standard 34, Interim Financial Reporting. The Group
is a for-profit entity for NZ GAAP purposes. These
interim financial statements do not include all the
information normally included in an annual financial report.
Accordingly, these should be read in conjunction with
the Group’s annual financial statements for the year ended
30 September 2020.
BASIS OF MEASUREMENT
The interim financial statements have been prepared
on a historical cost basis, except for sea defences,
investment properties and derivative financial instruments,
which are measured at fair value. They are presented
in New Zealand Dollars (NZD) and all values are
rounded to the nearest thousand dollars ($’000), unless
otherwise stated.
3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted are consistent
with those followed in the preparation of the Group’s
consolidated financial statements for the year ended
30 September 2020.
4 UNCERTAINTIES, ESTIMATES
AND JUDGEMENTS
The preparation of the financial statements in conformity
with NZ IAS 34 requires management to make judgements,
estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ
from these estimates.
In preparing these financial statements, the significant
judgements made by management in applying the Group’s
accounting policies and the key sources of estimation
and uncertainty, are consistent with those applied to
the Group’s consolidated financial statements for the year
ended 30 September 2020.
5 RESTATEMENT OF PRIOR
PERIOD COMPARATIVES
OPERATING EXPENSE RECLASSIFICATION
The Group has changed the classification of operating
expenses within the consolidated income statement
to provide more relevant information for users.
Maintenance expenses have been replaced by property
and plant expenses. Employee benefit expenses, property
and plant expenses, and other operating expenses for
the nine months ended 30 June 2020 have been
restated on a comparable basis resulting in $2.3 million
of previously disclosed other operating expenses being
reclassified to property and plant expenses, and
$0.9 million being reclassified to employee benefit
expenses for the nine months ended 30 June 2020.
IMPAIRMENT OF PROPERTY, PLANT
AND EQUIPMENT ASSETS
In the consolidated financial statements for the
full year ended 30 September 2020 the Group
impaired certain property, plant and equipment assets
that will be disposed of as part of the construction
of 6 Wharf. For the current reporting period, prior period
comparatives for the nine months ended 30 June 2020
have therefore been restated to reflect this impairment.
The restated comparatives incorporate the impairment
of property, plant and equipment assets in the amount
of $6.3 million. Of this amount, the impairment of site
assets of $0.6 million has been included in depreciation,
amortisation and impairment expenses, and the associated
tax benefit of $0.2 million in income tax expense, within
the consolidated income statement. The impairment
of sea defence assets of $5.8 million, with the
associated tax effect of $0.7 million, has been included
in the revaluation reserve within equity and included
in the statement of comprehensive income. There is
no restatement required to the consolidated financial
statements for the full year ended 30 September 2020.
NINE MONTH FINANCIAL STATEMENTS 2021 / 7

6 REVENUE AND SEGMENT REPORTING
30 June 30 June
2021 2020

Unaudited Unaudited
$000 $000
Disaggregation of revenue
Port operations 81,235 74,975
Property operations 1,770 1,578
Operating income 83,005 76,553
ACCOUNTING POLICIES:
Operating segments
The Group determines its operating segments based on internal information that is regularly reported
to the Chief Executive, who is the Group’s Chief Operating Decision Maker (CODM).
The Group operates in one reportable segment being Port Services. This consists of providing and managing
port services and cargo handling infrastructure through Napier Port. Within the Port Services reportable segment
the following operating segments have been identified: marine services, general cargo services, container services,
port pack services and depot services. These have been aggregated on the basis of similarities in economic
characteristics, customers, nature of services and risks.
The Group operates in one geographic area, that being New Zealand. During the period the Group had
two customers which comprise 19% of total revenue (2020: 18%) and 11% of total revenue respectively.
7 DEPRECIATION, AMORTISATION AND IMPAIRMENT EXPENSES
30 June 30 June
2021 2020

Unaudited Unaudited
$000 $000
Restated
Depreciation and amortisation 9,895 9,187
Impairment of property, plant and equipment - 551
Depreciation, amortisation and impairment expenses 9,895 9,738
8 OTHER (INCOME)/EXPENSES
30 June 30 June
2021 2020

Unaudited Unaudited
$000 $000
Included within other (income)/expenses are:
Loss on sale of assets 63 18
Expected credit loss allowance 101 339
Fair value gain on investment property (1,200) -
Receipt of wage subsidy from the New Zealand Ministry of Social Development - (2,036)
Other (income)/expenses (1,036) (1,679)
As a result of COVID-19, the Group qualified for and received the COVID-19 related wage subsidy from the New Zealand
Ministry of Social Development during the nine months ended 30 June 2020. Subsequently, during the three months
ended 30 September 2020, the Group repaid the wage subsidy received in full.
8 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

9 INCOME TAX
30 June 30 June
2021 2020

Unaudited Unaudited
$000 $000
Restated
Reconciliation between income tax expense and tax expense calculated
at the statutory income tax rate
Profit before income tax 25,245 23,372
Income tax at 28% 7,068 6,544
Adjustment to prior year tax 27 17
Tax effect of non-assessable items (336) (596)
Tax effect of non-deductible items 45 599
Reinstatement of tax depreciation on buildings - (1,508)
Income tax expense 6,804 5,056
The income tax expense is represented by:
Current tax on profits for the period 7,377 6,954
Adjustments for current tax of prior periods (266) 22
Current income tax expense 7,111 6,976
Deferred income tax expense for the period (600) (1,915)
Adjustments for deferred tax of prior periods 293 (5)
Deferred income tax expense (307) (1,920)
Income tax expense 6,804 5,056
NINE MONTH FINANCIAL STATEMENTS 2021 / 9

10 RELATED PARTY TRANSACTIONS AND BALANCES
30 June 30 June
2021 2020

Unaudited Unaudited
Related Party $000 $000
Hawke’s Bay Regional Council Rates, levies and consents 4 44
Subvention payment - 7
Lease income (16) (19)
Cost recoveries (8) (9)
Accounts receivable by the Group - 9
Accounts payable by the Group 1 2
Hawke’s Bay Regional Investment Company Dividends 8,580 2,750
Subvention payment - 217
Cost recoveries (47) (38)
Accounts receivable by the Group - 38
K. Ali-Dawson Communications consultancy 4 -
K. Ali-Dawson is a close family member of a member of key management personnel and has provided communications
consultancy services to the Group during the period on an arms-length basis.
11 COMMITMENTS AND CONTINGENCIES
CAPITAL EXPENDITURE COMMITMENTS
At balance date there were commitments in respect of contracts for capital expenditure totalling $60,907,000
(2020: $131,971,000).
CONTINGENT LIABILITIES
There were no material contingent liabilities at balance date.
12 SUBSEQUENT EVENTS AND POTENTIAL COVID-19 PANDEMIC IMPACTS
As at the date of authorisation of these financial statements, the Group was operating in conditions affected by
the COVID-19 virus global pandemic. On 17 August 2021 New Zealand was placed into an Alert Level 4 lockdown
due to a COVID-19 outbreak. The potential economic and public health consequences of this pandemic increase
uncertainties regarding the Group’s trading results, including those arising from the pandemic’s potential impact
on our direct and indirect cargo customers.
10 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NINE MONTH FINANCIAL STATEMENTS 2021 / 11

12 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

DIRECTORY
DIRECTORS
Alasdair MacLeod (Chairman)
Stephen Moir
Diana Puketapu
John Harvey
Vincent Tremaine
Rick Barker
Blair O’Keeffe
SENIOR MANAGEMENT TEAM
Todd Dawson – Chief Executive
Kristen Lie – Chief Financial Officer
David Kriel – General Manager Commercial
Viv Bull – General Manager Culture and Community
Adam Harvey – General Manager Marine and Cargo
Andrea Manley – General Manager Strategy and Innovation
Kia Zia – General Manager Container Operations
Michel de Vos – General Manager Infrastructure Services
REGISTERED OFFICE
Breakwater Road
PO Box 947
Napier 4140
New Zealand
Phone: +64 6 833 4400
Fax: +64 6 033 4408
Email: info@napierport.co.nz
Facebook: Napier Port
LinkedIn: Napier Port
Website: napierport.co.nz
BANKERS
Westpac New Zealand Limited
16 Takutai Square
Auckland 1010
New Zealand
Industrial and Commercial Bank
of China (New Zealand) Limited
Level 11
188 Quay Street
Auckland Central 1010
New Zealand
Industrial and Commercial Bank
of China (Asia) Limited
26/F ICBC Tower
Garden Road
Central Hong Kong
SOLICITORS
Bell Gully
171 Featherston Street
Wellington
New Zealand
AUDITORS
Ernst & Young
PO Box 490
Wellington 6140
On behalf of the Auditor-General
SHARE REGISTRY
For enquiries about share transactions, dividend payments,
or to change your address, please get in touch with:
Link Market Services Limited
PO Box 91976
Victoria Street West
Auckland 1142
Phone: +64 9 375 5998
Fax: +64 9 375 5990
Email: napierport@linkmarketservices.co.nz
Copies of the annual report are available at napierport.co.nz.
FINANCIAL CALENDAR
30 September 2021 Financial year end
November 2021 Annual results announcement
17 December 2021* Final dividend payment
17 December 2021 Annual meeting
31 March 2022 2022 half year end
May 2022 2022 half year results announcement
August 2022
2022 third quarter results announcement
* Subject to board approval
NINE MONTH FINANCIAL STATEMENTS 2021 / 13

napierport.co.nz

Napier Port

Napier Port

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Napier Port Holdings Limited
Supplemental Selected Financial Information (unaudited)
The below supplemental selected financial information provides a summary of financial information for
the nine months ended 30 June 2021 (9M2021) compared to the corresponding period in 2020
(9M2020).
Except where information is denoted as being extracted directly from audited financial statements, the
supplemental selected financial information is unaudited.

Notes:
1.
The selected financial information (excluding any financial information in the selected financial information table that is identified as
being underlying financial information) is extracted from unaudited financial statements of Napier Port Holdings for 9M2021. Some
line items in the selected financial information include adjustments applied by Napier Port (denoted ‘underlying’). An explanation of
these adjustments is contained in section 1.1 below.
2.
Revenue relates to operating income as disclosed in the financial statements for Napier Port.
3.
Result from operating activities is a non-NZ GAAP measure and is as disclosed in the financial statements for Napier Port. The
measure is calculated as operating income less operating expenses. The measure excludes income and expenses related to
depreciation, amortisation, impairment, and retirement of operating and other assets, income and expenses arising from fair value
changes, non-recurring and abnormal, and joint-venture and other investment activity.
4.
Underlying net profit after tax is a non-NZ GAAP measure that comprises reported net profit after tax adjusted for Initial Public
Offering (IPO) costs, the receipt of the Covid-19 wage subsidy and the impairment of certain assets relating to the construction of 6
Wharf as described in section 1.1 below. Tax expense has been adjusted to reflect the tax implications of the adjustments and the tax
benefit associated with the reinstatement of tax depreciation on buildings. A reconciliation to reported net profit after tax is included
in section 1.2 below.
5.
Underlying cash flows from operating activities is a non-NZ GAAP measure that comprises net cash flows from operating activities
adjusted for cash IPO costs, receipt of the Covid-19 wage subsidy and the tax implications of these adjustments on the basis that cash
taxes would be paid in the corresponding reporting period. A reconciliation to reported net cash flows from operating activities is
included in section 1.3 below.
Selected financial information
(1)
NZ$000
3Q2021
3Q2020
9M2021
9M2020
Financial period
3 months
ending
30 Jun 21
3 months
ending
30 Jun 20
9 months
ending
30 Jun 21
9 months
ending
30 Jun 20
Financial performance:
Revenue
(2)
30,420
24,269
83,005
76,553
Result from operating activities
(3)
12,836
9,343
34,129
31,079
Net profit after tax
7,867
5,886
18,441
18,316
Underlying net profit after tax
(4)
6,667
4,288
17,241
15,437
Balance sheet and cash flow items:
Dividends paid
5,532
-
15,532
5,000
Total assets
451,051
379,869
451,051
379,869
Cash and cash equivalents
2,517
17,955
2,517
17,955
Total liabilities
101,753
36,958
101,753
36,958
Total debt
58,718
-
58,718
-
Net cash flows from operating activities
11,844
9,580
26,407
23,006
Underlying net cash flows from operating activities
(5)
11,844
7,960
26,407
21,895

1.1 Description of adjustments
In determining the use of adjustments, the Directors have considered only those items that they
believe are required to ensure consistency and comparability of the financial information over the
periods presented. The adjustments that Napier Port considers are appropriate are explained below:
(i) removal of the one-off transaction costs relating to the IPO;
(ii) removal of fair value movements as these are unrealised and non-core activity;
(iii) removal of the receipt of the government’s Covid-19 wage subsidy, which was
subsequently repaid in full;
(iv) removal of the impairment of joint venture as it was a one-off event;
(v) removal of the impairment of existing infrastructure assets arising as a result of the 6 Wharf
development. Certain existing seawall and paving assets are required to be removed in
order for the new 6 Wharf development assets to be constructed. The impairment expense
arising, recorded in the Income Statement, has been adjusted for given its unusual and
non-recurring nature; and
(vi) removal of the one-off deferred tax benefit relating to the reinstatement of tax depreciation
on commercial buildings.

1.2 Reconciliation of underlying net profit after tax


1.3 Reconciliation of underlying net cash flows from operating activities

NZ$000
3Q2021
3Q2020
9M2021
9M2020
Reported net profit after tax
7,867
5,886
18,441
18,316
Adjustments:
IPO transaction and related costs/ (reversals)
-
-
-
(201)
Fair value movements
(1,200)
-
(1,200)
-
Covid-19 wage subsidy
-
(2,036)
-
(2,036)
Impairment of joint venture
-
(132)
-
(132)
Impairment of infrastructure assets for 6 Wharf development
-
-
-
551
Tax impact of adjustments
-
570
-
447
Tax benefit of reinstatement of tax depreciation on buildings
-
-
-
(1,508)
Underlying net profit after tax
6,667
4,288
17,241
15,437
NZ$0003Q20213Q20209M20219M2020
Reported net cash flows from operating activities11,8449,58026,40723,006
Adjustments
IPO transaction and related costs---478
Covid-19 wage subsidy-(2,036)-(2,036)
Tax impact of adjustments-416-447
Underlying net cash flows from operating activities11,8447,96026,40721,895

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Napier Port Holdings Limited
2021 Third Quarter Trade Volume Data
The below trade volume data provides a summary of third quarter (Q3 FY2021) and nine
months ended 30 June 2021 (9 Months FY2021) results compared to the prior period.

1.1 Container Services
Container Services
TEU (000s)^
Q3
FY2021
Actual
Q3
FY2020
Actual
9 Months
FY2021
Actual
9 Months
FY2020
Actual
Exports



Wood pulp & timber 11 9 37 37

Canned food / other food & beverage 2 2 6 6

Other dry 2 3 8 9

Total dry 16 14 51 51


Apples & pears 14 16 19 20

Meat 4 4 14 13

Fresh & other chilled produce 4 4 12 11

Total reefer 23 24 45 44


Empty 1 1 3 3

Total exports 39 39 99 98

Imports



Dry 7 7 22 21

Reefer 1 1 3 3

Empty 30 26 78 79

Total imports 38 34 103 103


Other container movements (‘DLRs
and Tranships’)
3 2 14 9

Total Container Services volume 80 74 215 210

Vessels



Container ship calls 58 76 191 223



^Rounded to nearest thousand TEU

1.2 Bulk Cargo
Bulk Cargo
Kilotonnes
Q3
FY2021
Actual
Q3
FY2020
Actual
9 Months
FY2021
Actual
9 Months
FY2020
Actual

Log exports 816 465 2,244 1,648

Other exports 45 33 144 114

Imports 155 131 499 464

Total Bulk Cargo volume 1,016 628 2,886 2,226

Vessels

Charter vessel calls 89 70 256 223


1.3 Cruise Services
Cruise Services

Q3
FY2021
Actual
Q3
FY2020
Actual
9 Months
FY2021
Actual
9 Months
FY2020
Actual
Vessels


Cruise vessel calls - - - 76