2022 Nine Month Results

NZX AND MEDIA RELEASE
24 AUGUST 2022
UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS TO 30 JUNE 2022
Third quarter trading uplift at Napier Port
Napier Port (NZX.NPH) today reports an uplift in trading results for its third quarter compared to the first
half of the financial year and the same period last year.

HIGHLIGHTS
3rd Quarter to 30 June 2022
• Revenue for the third quarter rose 13.2% to $34.4 million from $30.4 million in the same period
last year
• Bulk cargo revenue increased $0.8 million, or 7.5%, to $11.4 million, as bulk volumes decreased
2% to 1 million tonnes
• Container services revenue rose 16.6% to $22.3 million from $19.1 million, as container
volumes increased 1.5% to 82,000 TEU
1

• The result from operating activities
2
increased 3.7% to $13.3 million from $12.8 million
• Underlying net profit after tax
3
increased 5.1% to $7 million from $6.7 million
• Te Whiti (6 Wharf) officially opened in July - revised construction cost estimate at bottom of
forecast range of $173-179 million
9 Months to 30 June 2022
• Revenue for the nine months rose 2.6% to $85.1 million from $83 million in the same period
last year
• Bulk cargo revenue decreased $0.2 million, or 0.7%, to $30.6 million driven by a 6.9%
decrease in log exports to 2.1 million tonnes
• Container services revenue rose 4.5% to $52.5 million from $50.2 million despite container
volumes decreasing 9.8% to 194,000 TEU
• The result from operating activities decreased 12.8% to $29.8 million from $34.1 million due to
additional staff numbers and high cost inflation
• Underlying net profit after tax decreased 17.7% to $14.2 million from $17.2 million

Earnings guidance and outlook

• No change to existing guidance for an underlying result from operating activities for the year to
30 September 2022 of between $38 million to $42 million
• 89 cruise ship visits booked for upcoming 2022/23 season
• Listed bond offer of up to $100 million being considered

1
Twenty-foot equivalent container unit
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 2021 Annual Consolidated Financial Statements and the Supplemental Selected
Financial Information.
3
Underlying net profit after tax is an alternative non-NZ GAAP measure that comprises reported net profit after tax adjusted for
certain non-recurring and unrealised fair value revaluation items to provide consistency and comparability of the financial
information over the periods presented. For further information please refer to the Supplemental Selected Financial Information.

FINANCIAL RESULTS

Third quarter revenue rose 13.2% to $34.4 million from $30.4 million in the same period last year.
Revenue for the nine months increased 2.6% to $85.1 million from $83 million last year.

Container services

Container services revenue for the quarter of $22.3 million rose 16.6% from $19.1 million in the same
period last year. For the nine months, container services revenue increased by 4.5% to $52.5 million
from $50.2 million due to improved average revenue per TEU, partially offset by lower container
volumes.

Average revenue per TEU for the nine months increased 15.9% to $270 from $233 in the same period
last year. This was driven by a number of factors, including increased infrastructure levies and other
cost recoveries and increased utilisation of depot and storage services.

Container volumes for the quarter increased 1.5% to 82,000 TEU due to higher other container
movements and containerised imports offsetting lower reefer exports.

For the nine months, container volumes decreased 9.8% to 194,000 TEU from 215,000 TEU in the same
period last year as volumes have been affected by shipping disruption, labour shortages and weather
events.

Bulk cargo

Bulk cargo revenue for the quarter of $11.4 million increased 7.5% from $10.6 million in the same period
last year. For the nine months, bulk cargo revenues decreased 0.7% to $30.6 million from $30.8 million
as volumes decreased 6.3% to 2.7 million tonnes from 2.9 million tonnes in the same period a year ago.

Log export volume for the quarter decreased by 5.1% and for the nine-month period decreased by 6.9%
to 2.1 million tonnes from 2.2 million tonnes as export conditions remained largely unchanged from the
first half of the financial year.

Average revenue per tonne for the nine months increased 6% to $11.31 from $10.67 in the same period
last year. This includes the new infrastructure levy on bulk volume, tariff increases and an initial
contribution from the debarking operation, partially offset by the one-off cost recovery revenue of $0.29
per tonne in the prior year.
Operating results
The result from operating activities for the third quarter rose 3.7% to $13.3 million from $12.8 million in
the prior year period. For the nine months, the result from operating activities decreased 12.8% to $29.8
million from $34.1 million due to higher revenue offset by increased operating expenses from additional
staff numbers and high cost inflation across all expense categories.

Underlying net profit after tax for the third quarter, after adjusting for unrealised fair value movements
on investment properties, increased by 5.1% to $7 million from $6.7 million in the same period last year.
For the nine months this decreased by 17.7% to $14.2 million from $17.2 million.

Reported net profit after tax for the third quarter decreased 10.9% to $7 million and for the nine months
decreased 13.3% from $18.4 million to $16 million.

Chair Alasdair MacLeod said: “We ended the third quarter in a stronger position than we ended the half
year. Napier Port continues to benefit from the strength of New Zealand’s primary sector economy, and
our customers and region have again demonstrated fortitude and an ability to persevere despite
challenging conditions. This can-do attitude, together with the commitment of Napier Port’s team to
deliver services and solutions to keep cargo moving, contributed to an improved third quarter.

“We have made exceptional progress putting in place the infrastructure that will underpin the prosperity
of the region and Napier Port for the long term. Te Whiti (6 Wharf) opening on 22 July, ahead of schedule
and within budget, is a highlight. This demonstrates the capability of Napier Port and its team. Te Whiti
(6 Wharf) is a statement of confidence in the region, its prospects of prosperity and lays a solid platform
for growth. Final costs are expected for our financial year end, and we now anticipate they will come in
at the bottom of our existing $173-179 million range,” Mr MacLeod said.

Chief Executive Todd Dawson said: “The uplift in third quarter trade volumes has flowed through into
the improved financial results for the quarter which are better than the same period last year. Results
for the nine months are softer than the prior year due to the particularly challenging trading conditions
in the first half of the year. For the nine-month period, we have seen lower volumes of export apples
and fresh and other chilled produce as a result of reduced overall production within customer operations
as a result of Covid, labour shortages and weather events earlier in the year.

“In the third quarter, container shipping conditions were largely unchanged from the first half, with
unpredictable schedules continuing to result in missed or delayed vessels, reduced overall shipping
capacity, and larger exchanges of cargo across fewer vessel calls.

“Bringing Te Whiti (6 Wharf) on-line during July, we are confident it will help to alleviate ongoing supply
chain disruption, being equipped to berth the larger vessels that call New Zealand; and the additional
capability means improved operational performance across all our wharves, boosting productivity for
cargo owners and efficiency for shipping lines,” Mr Dawson said.

“Operating costs remain a challenge in the current environment. We, like all businesses and consumers,
are seeing significant cost increases across the board. We have introduced revenue generating
recoveries for some of our bigger expense items such as insurance and fuel which are helping to offset
some of the cost increases.

“In the current year we have also seen increased repairs and maintenance expenditure across our plant
and equipment to maintain fleet integrity as part of our critical risk management programme and as a
result of earlier decisions taken to defer replacement capex.”

CAPITAL EXPENDITURE AND CAPITAL MANAGEMENT UPDATE

Over the nine-month period Napier Port has invested $61.5 million in capital assets, bringing its 6 Wharf
development project near to completion.

Napier Port ended June 2022 with drawn bank debt of $130 million and undrawn bank facilities of $50
million.

Napier Port expects its Net Debt to EBITDA ratio to peak in the near term above its target ceiling of 3.5x
following the completion of the 6 Wharf construction project and due to the lower earnings being
experienced during the current financial year, with the unchanged expectation that the ratio will be
managed to within its long-term target range of 2.0x to 3.0x over time.

Subsequent to the 30 June balance sheet date, Napier Port has extended the maturity of $55 million of
its facilities with ICBC New Zealand a further two years to September 2026.

Napier Port announces today that it is considering making an offer
4

of unsecured, unsubordinated, fixed
rate bonds which would be listed on the NZX Debt Market. Consideration is being given to an offer of
$75 million (with the ability to accept oversubscriptions of up to an additional $25 million at Napier Port’s
discretion) of bonds. The net proceeds of the offer would be used to repay a portion of Napier Port’s
existing bank debt and for general corporate purposes.

Napier Port will issue a separate NZX announcement today regarding the potential bond offer with more
details including how Napier Port shareholders can register their interest in the Shareholder Priority
Offer.

OUTLOOK

Mr Dawson said: “We are pleased with the performance of Napier Port for the quarter and the nine
months, given the number of challenges we faced in the first half. At every step Napier Port’s team has
risen to the challenges and maintained operations despite widespread Covid-related community illness,
unpredictable shipping schedules and weather and labour shortages impacting our customers’
operations.

“The softening global economy in the wake of the post-Covid lockdown demand surge and global
inflationary pressures will add to the challenges faced by exporters. There are signs that disrupted global
container shipping is beginning to settle, but in the near term we expect continued network disruption
and constrained shipping capacity, with shipping delays still evident across NZ ports.

“Despite the welcome improvement in third quarter trade volumes and results, our cargo customers
remain concerned by restrictions on the availability of labour, and in particular the ongoing difficulty with
securing Recognised Seasonal Employer (RSE) workers, despite the borders now being open. As we
have seen this financial year, the effect of our primary sector industries having insufficient labour results
in lost production, processing capacity and earnings throughout our economy. We support their call to
government to take positive action now to ensure another primary sector season is not compromised
by labour shortages.

“Despite these ongoing challenges global demand for our region’s premium food and fibre products
remains robust. We are looking forward to welcoming back cruise lines and their passengers to our
region, with the forthcoming resumption of cruise visits and 89 current bookings.

“We expect operating cost inflation to remain a challenge for the foreseeable future and continue to
focus on mitigating this where possible while continuing to develop our capability to meet our customers’
needs now and in the future.


4
Napier Port Holdings Limited is not currently seeking preliminary indications of interest. No money is being sought and no
bonds can be applied for or acquired. Any offer that is made will be in accordance with the Financial Markets Conduct Act 2013.

“Noting ongoing uncertainties, we continue to expect an underlying result from operating activities for
the year to 30 September 2022 of between $38 million to $42 million.”

ENDS

For more information:

Investors Media
Kristen Lie Jo-Ann Young
Chief Financial Officer Corporate Affairs Manager
DDI: +64 6 833 4405 DDI: +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 2022 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/10023485-jk84y2.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 2022

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
INDEPENDENT AUDITOR’S 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 2022
30 June 30 June
2022 2021
Unaudited Unaudited
Notes $000 $000
Revenue 5 85,133 83,005
Employee benefit expenses 30,027 26,974
Property and plant expenses 11,310 8,294
Other operating expenses 14,039 13,608
Operating expenses 55,376 48,876
Result from operating activities 29,757 34,129
Depreciation and amortisation expenses 9,886 9,895
Other (income)/ expenses 16 164
Fair value gain on investment property (1,800) (1,200)
Profit before finance costs and tax 21,655 25,270
Net finance costs 6 38 25
Profit before income tax 21,617 25,245
Income tax expense 7 5,623 6,804
Profit for the period attributable to the shareholders of the Company 15,994 18,441
EARNINGS PER SHARE:
Basic earnings per share 0.08 0.09
Diluted earnings per share 0.08 0.09
NINE MONTH FINANCIAL STATEMENTS 2022 / 1

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED 30 JUNE 2022
30 June 30 June
2022 2021
Unaudited Unaudited
Notes $000 $000
Profit for the period attributable to the shareholders of the Company 15,994 18,441
Other comprehensive income
Items that will be reclassified to profit or loss:
Changes in fair value of cash flow hedges 4,301 154
Cash flow hedges transferred to profit or loss (156) (105)
Deferred tax on changes in fair value of cash flow hedges (1,161) (14)

Items that will not be reclassified to profit or loss:
Changes in fair value of cash flow hedges (78) (185)
Cash flow hedges transferred to property, plant and equipment - 183
Deferred tax on changes in fair value of cash flow hedges 22 -
Revaluation of sea defences 8 29,988 -
Deferred tax on revaluation of sea defences (1,856) -
Other comprehensive income for the period, net of tax 31,060 33
Total comprehensive income for the period attributable
to the shareholders of the Company 47,054 18,474
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 2022
Share

CapitalRevaluation ReserveHedging

ReserveShare-based

Payment ReserveRetained

EarningsTotal Equity
$000 $000 $000 $000 $000 $000
Balance at 1 October 2021 245,850 70,308 714 525 37,450 354,847
Profit for the period - - - - 15,994 15,994
Other comprehensive income - 28,132 2,928 - - 31,060
Total comprehensive income for the period - 28,132 2,928 - 15,994 47,054
Dividends 28 - - - (14,931) (14,903)
Share-based payments - - - 155 - 155
Transfers from treasury stock
- employee recognition scheme 249 - - - - 249
Fair share loans - employee repayments 63 - - - - 63
Total transactions with owners
in their capacity as owners 340 - - 155 (14,931) (14,436)
Total movement in equity 340 28,132 2,928 155 1,063 32,618
Balance at 30 June 2022 (Unaudited) 246,190 98,440 3,642 680 38,513 387,465
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
The above statement of changes in equity should be read in conjunction with the accompanying notes.
NINE MONTH FINANCIAL STATEMENTS 2022 / 3

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 JUNE 2022
30 June 30 Sept
2022 2021
Unaudited Audited
$000 $000
EQUITY
Share capital 246,190 245,850
Reserves 102,762 71,547
Retained earnings 38,513 37,450
387,465 354,847
NON-CURRENT LIABILITIES
Loans and borrowings 129,380 77,065
Deferred tax liability 21,017 17,924
Lease liabilities 248 320
Derivative financial instruments 147 -
Provision for employee entitlements 493 465
151,285 95,774
CURRENT LIABILITIES
Taxation payable - 2,155
Lease liabilities 197 201
Derivative financial instruments 12 -
Trade and other payables 17,259 27,020
17,468 29,376
556,218 479,997
NON-CURRENT ASSETS
Property, plant and equipment 520,482 448,648
Intangible assets 1,083 1,145
Derivative financial instruments 3,990 528
Investment properties 12,200 10,400
537,755 460,721
CURRENT ASSETS
Cash and cash equivalents 2,044 1,403
Derivative financial instruments 1,216 464
Taxation receivable 845 -
Trade and other receivables 14,358 17,409
18,463 19,276
556,218 479,997
On behalf of the Board of Directors, who authorised the issue of the financial statements on 23 August 2022.

Chair Director
4 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NAPIER PORT HOLDINGS LIMITED
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE NINE MONTHS ENDED 30 JUNE 2022
30 June 30 June
2022 2021
Unaudited Unaudited
$000 $000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers 82,175 80,863
Net GST received 1,550 523

Cash was applied to:
Payments to suppliers and employees (50,091) (45,239)
Net finance costs paid (32) (25)
Income taxes paid (8,526) (9,715)
Net cash flows generated from operating activities 25,076 26,407
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Proceeds from sale of property, plant and equipment 143 43

Cash was applied to:
Acquisition of property, plant and equipment and intangible assets (61,494) (76,250)
Net cash flows used in investing activities (61,351) (76,207)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Net proceeds from loans and borrowings 52,000 60,000
Repayment of fair share loans by employees 91 71

Cash was applied to:
Repayment of lease liabilities (165) (158)
Dividends paid (14,931) (15,532)
Net cash flows generated from financing activities 36,995 44,381
Net increase/ (decrease) in cash and cash equivalents 720 (5,419)

Cash and cash equivalents at beginning of the period 1,403 7,936
Effect of exchange rate changes on foreign currency balances (79) -
Cash and cash equivalents at end of the period 2,044 2,517
NINE MONTH FINANCIAL STATEMENTS 2022 / 5

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 NINE MONTHS ENDED 30 JUNE 2022
Reconciliation of profit for the period to cash flows from operating activities
30 June 30 June
2022 2021
Unaudited Unaudited
$000 $000
Profit for the period 15,994 18,441
Adjust for non-cash items:
Fair value gain on investment property (1,800) (1,200)
Depreciation and amortisation 9,839 9,895
Assets written off 47 -
Net (gain)/ loss on disposal of property, plant and equipment 15 63
Share-based payments 155 99
Other non-cash items 1 101
Deferred tax 369 (289)
8,626 8,669
Other adjustments:
Decrease in current tax (3,000) (2,623)
Increase in non-current provision 28 43
(2,972) (2,580)
Movements in working capital:
Increase in trade and other receivables (1,889) (1,722)
Increase in trade and other payables 5,317 3,599
3,428 1,877
Net cash flows generated from operating activities 25,076 26,407
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 2022
1 REPORTING ENTITY
The interim financial statements presented are those of Napier Port Holdings Limited and its subsidiaries
(together “the Group”). Napier Port Holdings Limited is incorporated under the Companies Act 1993 and domiciled
in New Zealand. Napier Port Holdings Limited’s shares are publicly traded on the New Zealand Stock Exchange (NZX).
2 BASIS OF PREPARATION
The interim financial statements have been prepared in accordance with the Financial Markets Conduct Act 2013.
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 2021.
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 2021.
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 2021.
NINE MONTH FINANCIAL STATEMENTS 2022 / 7

5 REVENUE AND SEGMENT REPORTING
30 June 30 June
2022 2021
Unaudited Unaudited
$000 $000
Disaggregation of revenue
Container services 52,464 50,200
Bulk cargo 30,581 30,803
Cruise 12 -
Sundry income 253 233
Port operations 83,310 81,235
Property operations 1,823 1,770
Operating income 85,133 83,005
ACCOUNTING POLICIES:
Port operations
Port operations represents a series of services including 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 period the Group had three
customers which comprised 17%, 12% and 11% of total revenue respectively (2021: two customers comprising
19% and 11% of total revenue respectively).
6 NET FINANCE COSTS
30 June 30 June
2022 2021
Unaudited Unaudited
$000 $000
Interest income (7) (16)
Finance income (7) (16)
Interest expense on borrowings 4,021 578
Lease imputed interest 20 29
Less: Interest capitalised to property, plant & equipment (3,996) (566)
Finance expenses 45 41
Net finance costs 38 25
8 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

7 INCOME TAX
30 June 30 June
2022 2021
Unaudited Unaudited
$000 $000
Reconciliation between income tax expense and tax expense calculated
at the statutory income tax rate
Profit before income tax 21,617 25,245
Income tax at 28% 6,053 7,068

Adjustment to prior year tax 1 27
Tax effect of non-deductible items 73 45
Tax effect of non-assessable items (504) (336)
Income tax expense 5,623 6,804
The income tax expense is represented by:
Current income tax for the period 4,827 7,377
Adjustment for current tax of prior periods 427 (266)
Current income tax expense 5,254 7,111
Deferred income tax expense for the period 795 (600)
Adjustment for deferred tax of prior periods (426) 293
Deferred income tax expense 369 (307)
Income tax expense 5,623 6,804
8 SEA DEFENCES VALUATION
Sea Defence assets were revalued to fair value as at 31 March 2022 by AECOM New Zealand Ltd. The valuation has been
prepared on an optimised depreciated replacement cost basis and in accordance with the NZ Infrastructure Asset Valuation
and Depreciation Guidelines published by the NAMS group of IPWEA. The valuation increased the carrying amount of Sea
Defences by $29,990,000, resulting in a net book value for Sea Defences of $110,860,000 as at 31 March 2022.
Significant Estimates
The valuation of sea defences is subject to assumptions and judgements which materially affect the resulting valuation.
Such factors include replacement quantities and unit values, the condition and performance of assets, estimated total
and remaining effective lives of 70 to 161 years and 5 to 80 years, respectively, and estimated residual values of 20%
of replacement cost. Other inputs incorporated into the valuation process include an allowance for project on-costs
of 5-6%. An increase in the remaining useful life, the residual value assumption, or in replacement quantities and unit values
for sea defence assets will result in an increase in the valuation and vice versa.
9 RELATED PARTY TRANSACTIONS AND BALANCES
30 June 30 June
2022 2021
Unaudited Unaudited
Related Party $000 $000
Hawke’s Bay Regional Council Rates, levies, consents and services 10 4
Council services 238 -
Cost recoveries (8) (8)
Lease income (16) (16)
Amount owed to related party 238 1

Hawke’s Bay Regional Investment Company Dividends 8,250 8,580
Cost recoveries (53) (47)

Longburn Intermodal Freight Hub Limited Sale of plant 120 -
NINE MONTH FINANCIAL STATEMENTS 2022 / 9

10 COMMITMENTS AND CONTINGENCIES
CAPITAL EXPENDITURE COMMITMENTS
At balance date there were commitments in respect of contracts for capital expenditure totalling $12,365,000
(30 September 2021: $37,930,000).
CONTINGENT LIABILITIES
There were no material contingent liabilities at balance date.
11 EVENTS SUBSEQUENT TO BALANCE DATE
There were no material events subsequent to balance date.
10 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

A member firm of Ernst & Young Global Limited



INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE SHAREHOLDERS OF NAPIER PORT HOLDINGS LIMITED’S INTERIM FINANCIAL
STATEMENTS FOR THE NINE MONTHS ENDED 30 JUNE 2022

The Auditor-General is the auditor of Napier Port Holdings Limited (the “Company”) and its subsidiaries
(the “Group”). The Auditor-General has appointed me, Stuart Mutch, using the staff and resources of
Ernst & Young, to carry out the review of the consolidated interim financial statements (“interim
financial statements”) of the Group on his behalf.
Conclusion
We have reviewed the interim financial statements of the Group on pages 1 to 10, which comprise the
consolidated statement of financial position as at 30 June 2022, and the consolidated income
statement, consolidated statement of comprehensive income, consolidated statement of changes in
equity and consolidated statement of cash flows for the nine months ended on that date, and the
notes, including a summary of significant accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the interim
financial statements of the Group do not present fairly, in all material respects, the financial position of
the Group as at 30 June 2022, and its financial performance and cash flows for the nine months
ended on that date, in accordance with New Zealand Equivalent to International Accounting Standard
34: Interim Financial Reporting and International Accounting Standard 34: Interim Financial Reporting.
Basis for conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial
Statements Performed by the Independent Auditor of the Entity (‘NZ SRE 2410 (Revised)’). Our
responsibilities are further described in the Auditor’s Responsibilities for the Review of the Interim
Financial Statements section of our report.

We are independent of the Group in accordance with the independence requirements of the Auditor-
General’s Auditing Standards, which incorporate the independence requirements of Professional and
Ethical Standard 1 International Code of Ethics for Assurance Practitioners issued by the New Zealand
Auditing and Assurance Standards Board.

Other than in our capacity as auditor, we have no relationship with, or interests, in the Group.
Directors’ responsibilities for the interim financial statements
The Directors are responsible, on behalf of the Group, for the preparation and fair presentation of
these interim financial statements in accordance with New Zealand Equivalent to International
Accounting Standard 34: Interim Financial Reporting and International Accounting Standard 34:
Interim Financial Reporting and for such internal control as the Directors determine is necessary to
enable the preparation and fair presentation of the interim financial statements that are free from
material misstatement, whether due to fraud or error.
The Directors are also responsible for the publication of the interim financial statements, whether in
printed or electronic form.
NINE MONTH FINANCIAL STATEMENTS 2022 / 11

A member firm of Ernst & Young Global Limited


Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements, taken as a whole, are not prepared, in all
material respects, in accordance with New Zealand Equivalent to International Accounting Standard
34: Interim Financial Reporting and International Accounting Standard 34: Interim Financial Reporting.
A review of the interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review
procedures. The procedures performed in a review are substantially less than those performed in an
audit conducted in accordance with International Standards on Auditing (New Zealand) and
consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion on these
interim financial statements.



Stuart Mutch
Ernst & Young
On behalf of the Auditor-General
Wellington, New Zealand
23 August 2022


12 / NAPIER PORT – TE HERENGA WAKA O AHURIRI

NINE MONTH FINANCIAL STATEMENTS 2022 / 13
DIRECTORY
DIRECTORS
Alasdair MacLeod (Chair)
Stephen Moir
Diana Puketapu
John Harvey
Vincent Tremaine
Rick Barker
Blair O’Keeffe
Dan Druzianic
Kylie Clegg
SENIOR MANAGEMENT TEAM
Todd Dawson – Chief Executive
Kristen Lie – Chief Financial Officer
David Kriel – General Manager Commercial
Viv Bull – General Manager People and Culture
Adam Harvey – General Manager Marine and Cargo
Andrea Manley – General Manager Strategy and Supply Chain
Michel de Vos – General Manager Assets and Infrastructure
Jo-Ann Young – Corporate Affairs Manager
REGISTERED OFFICE
Breakwater Road
PO Box 947
Napier 4140
New Zealand
Phone: +64 6 833 4400
Fax: +64 6 833 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 2022 Financial year end
November 2022 Annual results announcement
15 December 2022* Final dividend payment
16 December 2022 Annual meeting
31 March 2023 2023 half year balance date
May 2023 2023 half year results announcement
August 2023 2023 third quarter results announcement
* Subject to board approval

napierport.co.nz

Napier Port

Napier Port

---

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 2022 (9M2022) compared to the corresponding period in 2021
(9M2021).
Except where information is denoted as being extracted directly from audited financial statements, the
supplemental selected financial information is unaudited.
Selected financial information
1


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 Limited (‘Napier
Port’) for 9M2022. 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 interest,
taxes, 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 certain non-
recurring and unrealised fair value movements as described in section 1.1 below. A reconciliation to reported net profit after tax is
included in section 1.2 below.

NZ$000
3Q2022
3Q2021
9M2022
9M2021
Financial period
3 months
ending
30 Jun 22
3 months
ending
30 Jun 21
9 months
ending
30 Jun 22
9 months
ending
30 Jun 21
Financial performance:
Revenue
(2)
34,421
30,420
85,133
83,005
Result from operating activities
(3)
13,316
12,836
29,757
34,129
Net profit after tax
7,010
7,867
15,994
18,441
Underlying net profit after tax
(4)
7,010
6,667
14,194
17,241
Balance sheet and cash flow items:
Dividends paid
5,600
5,600
15,000
15,600
Total assets
556,218
451,051
556,218
451,051
Cash and cash equivalents
2,044
2,517
2,044
2,517
Total liabilities
168,753
101,753
168,753
101,753
Total debt
129,380
58,718
129,380
58,718
Net cash flows from operating activities
12,120
11,844
25,076
26,407

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 adjustment that Napier Port considers appropriate is the removal of unrealised fair value
movements on investment properties as these are non-core activity.

1.2 Reconciliation of underlying net profit after tax


NZ$000
3Q2022
3Q2021
9M2022
9M2021
Reported net profit after tax
7,010
7,867
15,994
18,441
Adjustments:
Fair value movements on investment properties
-
(1,200)
(1,800)
(1,200)
Underlying net profit after tax
7,010
6,667
14,194
17,241

---

Napier Port Holdings Limited
2022 Third Quarter Trade Volume Data
The below trade volume data provides a summary of third quarter (Q3 FY2022) and nine
months ended 30 June 2022 (9 Months FY2022) results compared to the prior periods.

1.1 Container Services
Container Services
TEU (000s)^
Q3
FY2022
Actual
Q3
FY2021
Actual
9 Months
FY2022
Actual
9 Months
FY2021
Actual
Exports



Wood pulp & timber 11 11 34 37

Canned food / other food & beverage 2 2 6 6

Other dry 2 2 7 8

Total dry 16 16 47 51


Apples & pears 12 14 16 19

Meat 4 4 12 14

Fresh & other chilled produce 3 4 10 12

Total reefer 20 23 37 45


Empty 2 1 6 3

Total exports 37 39 90 99

Imports



Dry 8 7 23 22

Reefer 1 1 3 3

Empty 30 30 67 78

Total imports 39 38 93 103


Other container movements (‘DLRs
and Tranships’)
6 3 12 14

Total Container Services volume 82 80 194 215

Vessels



Container ship calls 54 58 156 191

^Rounded to nearest thousand TEU

1.2 Bulk Cargo
Bulk Cargo
Kilotonnes
Q3
FY2022
Actual
Q3
FY2021
Actual
9 Months
FY2022
Actual
9 Months
FY2021
Actual

Log exports 774 816 2,090 2,244

Other exports 54 45 135 144

Imports 168 155 479 499

Total Bulk Cargo volume 996 1,016 2,703 2,886

Vessels

Charter vessel calls 81 89 236 256


1.3 Cruise Services
Cruise Services

Q3
FY2022
Actual
Q3
FY2021
Actual
9 Months
FY2022
Actual
9 Months
FY2021
Actual
Vessels



Cruise vessel calls - - 1 -