POT Investor Presentation

Presentation to Analysts
27 August 2021

Disclaimer
The information in this presentation is for information purposes and has been prepared
by Port of Tauranga Limited with due care and attention. However, neither the
Company, nor any of its Directors, officers, employees, contractors or agents, shall have
any liability whatsoever to any person, for any loss of damage resulting from the use or
reliance on this presentation.
The information contained in this presentation is not intended to be relied upon as
advice to investors and does not take into account the investment objectives, financial
situation or needs of any particular investor.
Past performance is not indicative of future performance and no guarantee of future
returns is implied or given.
The information contained in this presentation should be considered in conjunction
with the Company’s latest audited financial statements which are available in the
investor section of our website.

Highlights and Challenges
For the year ended 30 June 2021

Group Net Profit After Tax up 15.4%
$83,441
$94,273
$100,577
$88,679
$102,375
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
2017201820192020 restated2021
$
’
0
0
0
s

Restatement of Prior Year Figures
•Northport and PrimePort Timaru have historically accounted for their wharves,
hardstanding and channel assets on a historical cost basis.
•In the current year, the Group has aligned accounting policies which then
required these Equity Accounted Investees (EAIs) to revalue their wharves,
hardstanding and channel assets.
•Revaluations have resulted in an increase in asset values of $38.807 million, of
which $32.952 million was assessed as relating to prior years.
•Restatement to the accounts was required as the prior year movements were
greater than auditors materiality limit.

Restatement of Prior Year Profit
* Additional depreciation expense recognised on EAIs’ revalued assets.
$90,027
$88,679
-$1,348
$85,000
$86,000
$87,000
$88,000
$89,000
$90,000
$91,000
Prior Year 2020 Reported ProfitRevaluation depreciation (Net of Tax*)2020 restated
$
0
0
0
s

Ordinary Dividends maintained at 90% of
Net Profit After Tax
12.7
13.3
12.4
13.5
0
2
4
6
8
10
12
14
2018201920202021
Ordinary
Special
C
e
n
t
s
p
e
r
s
h
a
r
e

Net Debt / Net Debt + Equity
26.2%
27.5%
28.6%
25.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2018201920202021

Total Trade up 3.8%
24,458
26,946
24,808
25,738
0
5,000
10,000
15,000
20,000
25,000
30,000
2018201920202021
T
o
n
n
e
s
0
0
0
s

Container Volumes down 4.1%
1,182,147
1,233,177
1,251,741
1,200,831
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
1,400,000
2018201920202021
T
E
U
s

Source. Ministry of Transport
NZ’s Largest Container Terminal
(container volumes by quarter – all ports)
0
50,000
100,000
150,000
200,000
250,000
0
9
Q
1
0
9
Q
2
0
9
Q
3
0
9
Q
4
1
0
Q
1
1
0
Q
2
1
0
Q
3
1
0
Q
4
1
1
Q
1
1
1
Q
2
1
1
Q
3
1
1
Q
4
1
2
Q
1
1
2
Q
2
1
2
Q
3
1
2
Q
4
1
3
Q
1
1
3
Q
2
1
3
Q
3
1
3
Q
4
1
4
Q
1
1
4
Q
2
1
4
Q
3
1
4
Q
4
1
5
Q
1
1
5
Q
2
1
5
Q
3
1
5
Q
4
1
6
Q
1
1
6
Q
2
1
6
Q
3
1
6
Q
4
1
7
Q
1
1
7
Q
2
1
7
Q
3
1
7
Q
4
1
8
Q
1
1
8
Q
2
1
8
Q
3
1
8
Q
4
1
9
Q
1
1
9
Q
2
1
9
Q
3
1
9
Q
4
2
0
Q
1
2
0
Q
2
2
0
Q
3
2
0
Q
4
2
1
Q
1
AucklandLytteltonNapierOtagoTaurangaWellington

Source. Ministry of Transport
NZ Trade & Container Market Share
24.9%
14.5%
8.6%
6.4%
42.3%
3.3%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
AucklandLytteltonNapierOtagoTaurangaWellington
NZ Container Port Market Share
2017201820192020

Transhipped TEUs down 13.8%
303,284
337,183
349,343
301,062
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2018201920202021
T
E
U
s

Bulk Cargo up 13.1%
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
20172018201920202021
T
o
n
n
e
s
Break Bulk Tonnage
LOGSOIL PRODUCTSPROTEINS & FEEDS
KIWIFRUITOTHER WOOD PRODUCTSFERTILISERS
STEELGRAINCOAL
ALL OTHER GOODS

Log Exports up 14.3%
6,276
7,063
5,544
6,339
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2018201920202021
J
A
S
0
0
0
s

•Recent correction in log price – lockdown likely to
add to the uncertainty around price. At wharf gate
market most(smaller forests, farm blocks etc)likely
to be impacted.
•Circa 65% Tauranga export volume from forest estate
owners who manage a sustainable cut to generate
fixed income as such less price sensitive.
•No NZ logs to India continues with Australia supplying
bulk as they remain locked out of China.
Forestry Outlook

Direct Kiwifruit Exports up 11.1%
1,303
1,473
1,465
1,629
0
250
500
750
1,000
1,250
1,500
1,750
2018201920202021
M
3
0
0
0
s

Kiwifruit Outlook
1Based on current licence release plan.
2Gold 16,000 trays average per hectare
mature orchard.
3Green volumes forecast to drop 2 million
TEUs/year over next 5 years so growth is
coming from Gold crop.
4Market side demand is strong.
5Some growth pains supply side
(infrastructure and labour).
M
T
r
a
y
s

Direct Dairy Exports up 2.1%
2,039
2,110
2,076
2,120
0
500
1,000
1,500
2,000
2018201920202021
T
o
n
n
e
s
0
0
0
’
s

•Global Dairy Trade (GDT) prices have
come back from recent highs but still
reasonably strong
•Dairy volumes expected to be flat in FY22
•Potential product mix change over next
few years
Dairy Outlook

Upper North
Island
Port
Congestion

Continued Port Congestion
•Global supply chains remain congested.
•Vessels schedules remain suspended in
New Zealand.
•A return to schedule in New Zealand
requires all carriers and ports to work
agreed berth windows.
•Currently only ~60% of shipping services
can meet agreed berth windows.
•Priority given to services on window.
.com

Costs of Congestion
106 fewer container vessels September 2020 to June 2021 vs PCP
SepOctNovDecJanFebMarAprMayJune
Vessel Visits 19 /20
55636662585455696759
Vessel Visits 20 /21
49574453494349495752
Average Exchange 19/20
1064114610381115105110851102872999991
Average Exchange 20/21
1139130313881350124612881354123413081131
0
200
400
600
800
1000
1200
1400
1600
0
10
20
30
40
50
60
70
80
A
v
e
r
a
g
e
e
x
c
h
a
n
g
e
c
t
r
s
V
e
s
s
e
l
V
i
s
i
t
s
Tauranga Container Terminal Vessel Calls
Vessel Visits 19 /20Vessel Visits 20 /21Average Exchange 19/20Average Exchange 20/21

Costs of Congestion
51% increase in average static volume since 1 October 2020

Source – FIGS, Ministry of Transport
0
10
20
30
40
50
60
70
80
90
100
0
9
Q
1
0
9
Q
2
0
9
Q
3
0
9
Q
4
1
0
Q
1
1
0
Q
2
1
0
Q
3
1
0
Q
4
1
1
Q
1
1
1
Q
2
1
1
Q
3
1
1
Q
4
1
2
Q
1
1
2
Q
2
1
2
Q
3
1
2
Q
4
1
3
Q
1
1
3
Q
2
1
3
Q
3
1
3
Q
4
1
4
Q
1
1
4
Q
2
1
4
Q
3
1
4
Q
4
1
5
Q
1
1
5
Q
2
1
5
Q
3
1
5
Q
4
1
6
Q
1
1
6
Q
2
1
6
Q
3
1
6
Q
4
1
7
Q
1
1
7
Q
2
1
7
Q
3
1
7
Q
4
1
8
Q
1
1
8
Q
2
1
8
Q
3
1
8
Q
4
1
9
Q
1
1
9
Q
2
1
9
Q
3
1
9
Q
4
2
0
Q
1
2
0
Q
2
2
0
Q
3
2
0
Q
4
2
1
Q
1
AucklandLytteltonNapierOtagoTaurangaWellington
New Zealand Port Ship Rate

Port Sector Labour Challenges
•Tight port sector Labour market pushing wage inflation.
•Worsening labour shortage where we are competing
for people against, in some cases, our own customers.
•95% of Port of Tauranga border facing ( Tier 1 ) people
vaccinated.
•Currently circa 45% (Tier 1) workers vaccinated across
all companies on port, forecast 90-95% will get
vaccination by deadline.
•From 30 September, all Tier 1 roles must be vaccinated.

MetroPort
Rail volume down 3%
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
20172018201920202021
T
E
U
s
MetroPort Volumes 2017- 2021
ImportExport

Carrier Consolidation & Increasing Orderbook

Bigger Ships = Lower Carbon Supply Chain
CO2e calculations are based on a 20’ 15 tonne container shipped on
a typical container vessel size of 3,000-4,000 TEUs (via Auckland) and
8,000+ TEUs (via Tauranga)

Critical New Zealand Infrastructure
•Design completed 2019 and early contractor engagement 2020
•Shovel Ready declined August 2020
•Fast Track application declined April 2021
•Ongoing consultation - currently ~24 months behind schedule

Critical New
Zealand
Infrastructure
•Resource submitted May 2021.
•Direct referral to Environment court request lodged
- June 2021.
•220 metre extension required (2-year construction
period).
•Nearing capacity headroom current volume 1.25M
TEU vs 1.45M capacity.
•Average container growth 7.4% over past 5 years.

Full Buildout ~ 2.8M TEUs

Terminal Automation
•Progressing first stage of Terminal
Automation.
•Currently seeking proposals for Auto
Stacking Cranes ( ASC ) from providers.
•Expect vendor selection Q1 2022.
•Well established technology used globally.

Subsidiaries & Associates
Net Profit After Tax up 46.0%
$16,391
$11,885
$12,728
$18,581
$0
$5,000
$10,000
$15,000
$20,000
201820192020 restated2021
0
0
0
s

•Trade volumes up 18.3% to 3.547
million tonnes.
•Earnings up 8.9% to $8.746 million
(result includes revaluation
depreciation expense net of tax of
$0.766 million).
•$26.646 million increase to the
Group’s share of revaluation
reserve on alignment of policy.
•Container volumes up 9.2% to
13,451 TEUs.
•6 Unscheduled container vessel
calls – saved Auckland’s Christmas.

•Trade volumes increased 17.6% to
1.827 million tonnes.
•Earnings up 23.0% to $2.848 million
(result includes revaluation
depreciation expense net of tax of
$0.582 million).
•$12.161 million increase to the Group’s
share of revaluation reserve alignment
of policy.

•Container volumes up 16.2% to 93,891
TEUs.
•NPAT of $1.523 million up from $0.492
million in prior year.
•Acquired Kotahi’s 49.9% shareholding
in October 2020, in exchange for
volume-based rebate – 100%
subsidiary.
•Loss of $0.741 million at Group level
on derecognition as an EAI.

•NPAT up 38.4% to $3.500 million.
•Continued strong performance seen across all areas of the company.
•Took over management of Timaru Container Terminal from 1 November 2020.

•Recorded a profit of $1.869 million vs loss of -$0.729 million in the prior year.
•Included in profit are $1.649 million of one of items including the sale of their
investment in TNX. Underlying profit $0.220 million.
•Deena Clarkson appointed Chief Executive effective from 30 August 2021.

Ruakura Inland Port
Progress July
2021

Parent Capital Expenditure 2018-2023
$16,788
$40,073
$38,228
$23,796
$60,000
$50,000
$23,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
20182019202020212022F2023F
$
0
0
0
s
Terminal Southern Berth Extension

A New Upper North Island Port Study
•The Minister for Transport has announced a new freight strategy report.
•A new location to replace Ports of Auckland expected by 2023.

Outlook 2022
•Port congestion is expected to continue.
•Labour shortages becoming a problem for
the sector.
•Expect to handle about 1.225 million TEUs.
•Log volume forecast circa 6.4M JAS FY22.
•Earnings guidance to be provided in October
at AGM

THANK YOU