POT Launches Wholesale Bond

C:\Users\carol\AppData\Local\Temp\M-F1610.tmp\NZX Notice - Bond Offer.docx
16 November 2021
PORT OF TAURANGA LIMITED LAUNCHES BOND OFFER TO INSTITUTIONAL
INVESTORS IN NEW ZEALAND
Port of Tauranga Limited (POT) has launched a NZ$100,000,000 seven-year new issue with
final maturity in November 2028. The Notes will be issued to institutional investors in New
Zealand.
Issuer:Port of Tauranga Limited
Instrument:Fixed Rate Notes
Issuer Rating:A- (stable) by S&P Global
Expected Issue Rating:A- (stable) by S&P Global
Launch Date:Tuesday, 16 November 2021
Closing Date:Thursday, 18 November 2021, 11.00 am or earlier at the Issuer’s
discretion
Settle / Issue Date:Wednesday, 24 November 2021
Maturity Date:Friday, 24 November 2028
Issue Amount:NZ$100,000,000 of seven-year Notes
Indicative Issue Margin:0.75-0.85% per annum
Listing:The Notes will not be listed on any exchange
A copy of the investor presentation relating to this launch isattached.
Simon Kebbell
CHIEF FINANCIAL OFFICER
Attachment: Investor Presentation

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16 November 2021
Port of Tauranga Limited
Wholesale Bond Issue

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.

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
$’000s

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
Cents per share

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

Source Ministry of Transport FIGS & STATS NZ
20Q1-20Q4
•Largest and most efficient New Zealand port
•Lowest carbon emission international supply
chain
•32% of all New Zealand cargo
•36% of all New Zealand exports
•42% of all shipping containers
New Zealand’s Port for the Future
PortExportImportTotal Tonnes (000)
Tauranga14996564920644
Whangarei291843147232
Auckland132550816406
Napier40936024695
Lyttelton291417094623
New Plymouth353010694599
Wellington203714233460
Gisborne315703157
Bluff134114722813
Dunedin20283962424
Timaru7899871777
Nelson1417951512
Picton6910691
Total412352285264087

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
Tonnes
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
JAS 000s

Lockdown, April 2020

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
M3 000s

Kiwifruit Outlook
1Based on current licence release plan.
2Gold 16,000 trays average per hectare
mature orchard.
3Market side demand is strong.
4Some growth pains supply side
(infrastructure and labour).
M Trays

Direct Dairy Exports up 2.1%
2,039
2,110
2,076
2,120
0
500
1,000
1,500
2,000
2018201920202021
Tonnes 000’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
09Q109Q209Q309Q410Q110Q210Q310Q411Q111Q211Q311Q412Q112Q212Q312Q413Q113Q213Q313Q414Q114Q214Q314Q415Q115Q215Q315Q416Q116Q216Q316Q417Q117Q217Q317Q418Q118Q218Q318Q419Q119Q219Q319Q420Q120Q220Q320Q421Q1
AucklandLytteltonNapierOtagoTaurangaWellington

Successful Execution of Hub Strategy

Australia
•Melbourne14.0m LW
•Sydney13.8m LW
•Brisbane14.0m LW
•Perth14.5m LW
New Zealand
•Auckland11.4m LW
•Tauranga13.2m LW
(consented to 14.5m)
•Napier10.6m LW
•Centreport10.2m LW
•Lyttelton10.6m LW
•Otago12.3m LW
Port of Tauranga Limited
DEEP SPACE
Larger vessels, with their lower operating
costs and greater fuel efficiency, will
enhance New Zealand’s global
competitiveness.

Source. Ministry of Transport
NZ Trade & Container Market Share
24.9%
14.5%
8.6%
6.4%
42.3%
3.3%
0%
20%
40%
60%
80%
100%
AucklandLytteltonNapierOtagoTaurangaWellington
NZ Container Port Market Share
2017201820192020

Bigger Ships = Lower Carbon Supply Chain
20% fewer emissions
29% fewer emissions

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
000s

•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.

Northport – Vision for Growth

•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.

•Train capacity
increased to 107 TEUs
per train
•Current capacity ~90
trains (9,630 TEUs) per
week
•Fourth largest
container terminal by
volume (294,481 TEUs)
2021.
MetroPort Auckland

MetroPort
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
20172018201920202021
TEUs
MetroPort Volumes 2017- 2021
ImportExport

Changing Land Use & Supply Chains

Ruakura Inland Port
New 50 year joint venture established
Inland Port opening mid-2022

Ruakura Inland Port
Progress July
2021

Critical New Zealand Infrastructure
•Design completed 2019 and early contractor engagement 2020
•Shovel Ready declined August 2020
•Fast Track application declined April 2021
•Successfully requested direct referral to Environment Court – awaiting court date.

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.

Full Buildout ~ 2.8M TEUs

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
$000s
Terminal Southern Berth Extension

Counterparty
Amount of Debt
Drawn
$ Million
Committed
Facilities
$ Million
Bond100100
Commercial Papers2200
Drawn Standby
Facilities
160485
Total480585
Current Debt Facilities

Counterparty
Committed
Facilities
$ Million
Bonds200
Commercial Papers0
Standby Facilities385
Total585
Lengthening of Debt Profile
Refinancing of Debt Facilities In-progress

Outlook 2022
•Port congestion and supply chain
disruption expected to continue
•Labour shortages a growing problem
for the sector
•Covid-19 precautions continue to
impact efficiency and costs.

First Quarter FY22
•6.9% increase in total trade
•8.1% increase in containers
•6.7% increase in direct dairy exports
•7.1% increase in direct kiwifruit exports
•2.4% increase in log exports
•Earnings guidance range $103-110 million.

Key Terms of the Bond Offer
Issuer:Port of Tauranga Limited
Instrument:Fixed Rate Notes, Wholesale
Status:Obligations to Noteholders will constitute unsubordinated obligations of the Issuer ranking pari passu amongst themselves
and with all other unsubordinated indebtedness of the Issuer, other than indebtedness preferred by law.
Security:The Notes are secured. The security is held by Bank of New Zealand as security trustee for the Noteholders and other
secured parties. The security comprises a general security agreement, and mortgages over certain real property.
Purpose:General business purposes
Credit Ratings:Issuer: ‘A-’ (stable), S&P Global
Expected Issue Rating: [‘A-’], S&P Global
Issue Amount:NZ$100,000,000
Tenor:7 years
Re-Offer Margin:MMS+[75-85] bps
Important Dates:Open: Tuesday, 16 November 2021
Close: Thursday, 18 November 2021, 11:00am
Issue: Wednesday, 24 November 2021
Maturity: Friday, 24 November 2028

THANK YOU