Half Year 2022 Results

nt
CONDENSED
CONSOLIDATED
INTERIM FINANCIAL
STATEMENTS
For the six months ended 30 June 2022

1











Contents


Consolidated Income Statement 2

Consolidated Statement of Comprehensive Income 3

Consolidated Balance Sheet 4

Consolidated Statement of Changes in Equity 6

Consolidated Statement of Cash Flows 8

Notes to the Interim Financial Statements 9

Directory 19

2
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)
GROUPGROUP
30 June 2022
30 June 2021
(restated)
NOTE$000$000
CONTINUING OPERATIONS
INCOME
Revenue3,429,8311,684
TOTAL INCOME29,8311,684
EXPENSES
Energy and utility costs2,301-
Materials and contractor payments1,500542
Salaries, wages and benefits122,3431,394
Administration and other costs4,015582
TOTAL EXPENSES10,1592,518
EARNINGS BEFORE DEPRECIATION, FINANCE COSTS AND INCOME TAX19,672(834)
Depreciation and disposal costs88,285556
TOTAL DEPRECIATION AND DISPOSAL COSTS
8,285556
NET PROFIT / (LOSS) BEFORE FINANCE COSTS AND INCOME TAX11,387(1,390)
Finance income(71)(1)
Finance costs3,692-
NET FINANCE COSTS / (INCOME)3,621(1)
NET PROFIT / (LOSS) BEFORE INCOME TAX7,766(1,389)
Income tax2,139(191)
NET PROFIT / (LOSS) AFTER INCOME TAX FROM CONTINUING OPERATIONS5,627(1,198)
Net profit / (loss) after income tax from discontinued operations211,557(3,716)
NET PROFIT / (LOSS) AFTER INCOME TAX17,184(4,914)
ATTRIBUTABLE TO:
Owners of the Parent17,184(4,914)
EARNINGS PER SHARE FOR PROFIT ATTRIBUTABLE TO THE SHAREHOLDERSCENTSCENTS
Basic and diluted earnings per share from continuing operations1.5(0.4)
Basic and diluted earnings per share4.6(1.6)
THE ABOVE CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT IS TO BE READ IN CONJUNCTION WITH
THE ACCOMPANYING NOTES.
Consolidated Income Statement

3
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)
GROUPGROUP
30 June 2022
30 June 2021
(restated)
NOTE$000$000
NET PROFIT/(LOSS) AFTER INCOME TAX
17,184(4,914)
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to the Income Statement
Defined benefit plan and medical scheme actuarial gain
1265615,615
Deferred tax(184)(4,372)
Total items that will not be reclassified to the Income Statement
47211,243
Items that may be subsequently reclassified to the Income Statement
Movement in cash flow hedge reserve
11,0079,433
Deferred tax
(3,082)(2,641)
Total items that may be subsequently reclassified to the Income Statement7,9256,792
TOTAL OTHER COMPREHENSIVE INCOME, AFTER INCOME TAX8,39718,035
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, AFTER INCOME TAX
25,58113,121
ATTRIBUTABLE TO:
Owners of the Parent25,58113,121
THE ABOVE CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME IS TO BE READ IN
CONJUNCTION WITH THE ACCOMPANYING NOTES.
Consolidated Statement of Comprehensive
Income

4
AS AT 30 JUNE 2022 (UNAUDITED)
GROUPGROUP
30 June 202231 December 2021
NOTE$000$000
ASSETS
Cash and cash equivalents8,04616,069
Trade and other receivables1025,740139,847
Income tax receivable108684
Derivative financial instruments6,6505,263
Inventories1,2562,015
TOTAL CURRENT ASSETS41,800163,878
NON-CURRENT ASSETS
Inventories3,9193,719
Derivative financial instruments11,2994,875
Intangibles22,36227,059
Property, plant and equipment8867,842869,137
Investment property6,2006,200
Right-of-use assets616650
Deferred tax assets
13175,72082,059
TOTAL NON-CURRENT ASSETS1,087,958993,699
TOTAL ASSETS1,129,7581,157,577
LIABILITIES
CURRENT LIABILITIES
Trade and other payables1033,665155,167
Derivative financial instruments-
387
Lease liabilities959805
Employee benefits122,9079,937
Provisions1167,23487,088
TOTAL CURRENT LIABILITIES104,765253,384
NON-CURRENT LIABILITIES
Derivative financial instruments1,690
-
Borrowings7223,330199,698
Lease liabilities1,5681,600
Employee benefits127,8417,953
Provisions1163,76898,349
Deferred tax liabilities13204,392101,105
TOTAL NON-CURRENT LIABILITIES502,589408,705
TOTAL LIABILITIES607,354662,089
NET ASSETS522,404495,488
Consolidated Balance Sheet

5
AS AT 30 JUNE 2022 (UNAUDITED)
GROUPGROUP
30 June 202231 December 2021
NOTE$000$000
EQUITY
Contributed equity6314,504313,974
Revaluation reserve422,771422,771
Treasury stock6(1,462)(1,168)
Employee share entitlement reserve62,6851,586
Cash flow hedge reserve11,6333,708
Retained earnings(227,727)(245,383)
TOTAL EQUITY522,404495,488
For and on behalf of the Board:
J B MillerA M Molloy
Chair of the BoardChair of the Audit and Finance Committee
The Board of Directors of Channel Infrastructure Limited authorised these financial statements for issue on 24 August 2022.
THE ABOVE CONDENSED CONSOLIDATED INTERIM BALANCE SHEET IS TO BE READ IN CONJUNCTION WITH THE
ACCOMPANYING NOTES.
Consolidated Balance Sheet (continued)

6
AS AT 30 JUNE 2022 (UNAUDITED)
CONTRIBUTED
EQUITY
REVALUATION
RESERVE
TREASURY
STOCK
EMPLOYEE
SHARE
SCHEME
ENTITLEMENT
RESERVE
CASH FLOW
HEDGE
RESERVE
RETAINED
EARNINGS
TOTAL EQUITY
NOTE$000$000$000$000$000$000$000
AT 1 JANUARY 2021266,057-(896)7795,298292,692563,930
COMPREHENSIVE INCOME
Net loss after income tax-----(4,914)(4,914)
Other comprehensive income
Movement in cash flow hedge reserve----9,433-9,433
Defined benefit actuarial gain12-----15,61515,615
Deferred tax on other comprehensive income----(2,641)(4,372)(7,013)
TOTAL OTHER COMPREHENSIVE GAIN, AFTER INCOME TAX----6,79211,24318,035
TRANSACTIONS WITH OWNERS OF THE PARENT
Equity-settled share-based payments---478--478
Shares vested to employees--272(272)---
Treasury shares purchased276-(276)----
Unclaimed dividends written back-----(26)(26)
TOTAL TRANSACTIONS WITH OWNERS OF THE PARENT276-(4)206-(26)452
AT 30 JUNE 2021266,333-(900)98512,090298,995577,503
Consolidated Statement of Changes in Equity
THE ABOVE CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY IS TO BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.

7
AS AT 30 JUNE 2022 (UNAUDITED)
CONTRIBUTED
EQUITY
REVALUATION
RESERVE
TREASURY
STOCK
EMPLOYEE
SHARE
SCHEME
ENTITLEMENT
RESERVE
CASH FLOW
HEDGE
RESERVE
RETAINED
EARNINGS
TOTAL EQUITY
NOTE$000$000$000$000$000$000$000
AT 1 JANUARY 2022313,974422,771(1,168)1,5863,708(245,383)495,488
COMPREHENSIVE INCOME
Net profit after income tax-----17,18417,184
Other comprehensive income
Movement in cash flow hedge reserve----11,007-11,007
Defined benefit actuarial gain12-----656656
Deferred tax on other comprehensive income----(3,082)(184)(3,266)
TOTAL OTHER COMPREHENSIVE GAIN, AFTER INCOME TAX----7,9254728,397
TRANSACTIONS WITH OWNERS OF THE PARENT
Equity-settled share-based payments---1,335--1,335
Shares vested to employees--236(236)---
Treasury shares issued530-(530)----
TOTAL TRANSACTIONS WITH OWNERS OF THE PARENT530-(294)1,099--1,335
AT 30 JUNE 2022314,504422,771(1,462)2,68511,633(227,727)522,404
THE ABOVE CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY IS TO BE READ IN CONJUNCTION WITH THE ACCOMPANYING NOTES.
Consolidated Statement of Changes in Equity

8



FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)
GROUPGROUP
30 June 202230 June 2021
NOTE$000$000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers99,572114,036
Payment for supplies and expenses(60,907)(57,369)
Payments to employees(46,332)(28,719)
CASH (USED BY) / GENERATED FROM OPERATIONS(7,667)27,948
Interest received11347
Interest paid(6,498)(4,808)
Net GST paid(1,352)(813)
Income tax received576-
NET CASH (OUTFLOW) / INFLOW FROM OPERATING ACTIVITIES(14,828)22,374
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment459-
Proceeds from sale of intangible assets 2,413-
Payments for property, plant and equipment(18,858)(20,811)
NET CASH OUTFLOW FROM INVESTING ACTIVITIES(15,986)(20,811)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of loans and borrowings
(75,000)
(10,000)
Proceeds from bond issuance
98,111
-
Lease payments
(320)(352)
NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES22,791(10,352)
NET DECREASE IN CASH AND CASH EQUIVALENTS(8,023)(8,789)
Cash and cash equivalents at the beginning of the period16,06943,289
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD8,04634,500
THE ABOVE CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS IS TO BE READ IN
CONJUNCTION WITH THE ACCOMPANYING NOTES.
Consolidated Statement of Cash Flows

Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)
9
Reporting entity
Channel Infrastructure NZ Limited (previously The New Zealand Refining Company Limited, trading as Refining
NZ) (hereinafter as ‘Parent’, ‘Company’, or ‘Channel Infrastructure’) is a profit-oriented company registered under
the Companies Act 1993 and an FMC Reporting Entity for the purposes of the Financial Markets Conduct Act
2013. Channel Infrastructure is listed, and its ordinary shares are quoted under the ticker CHI (previously NZR) on
the NZX Main Board Equity Market (‘NZX Main Board’) and its subordinated notes (ticker CHI010) and corporate
bonds (ticker CHI020) are quoted on the NZX Debt Market.
The condensed consolidated interim financial statements (hereinafter ‘financial statements’) for the six months
ended 30 June 2022 presented are those of Channel Infrastructure together with its subsidiaries (‘the Group’).
Subsidiaries are all entities over which the Group has control and includes Channel Terminal Services Limited,
Independent Petroleum Laboratory Limited, Maranga Ra Holdings Limited and CHI Future Developments Limited.
Basis of preparation
These financial statements as at and for the six months ended 30 June 2022 comply with the generally accepted
accounting practice in New Zealand (‘NZ GAAP’) and have been prepared in accordance with New Zealand
Equivalents to International Accounting Standard (‘NZ IAS‘) 34: Interim Financial Reporting and International
Accounting Standard (‘IAS‘) 34: Interim Financial Reporting and, consequently, do not include all the information
required to be disclosed in annual consolidated financial statements. These financial statements should be read
in conjunction with the annual consolidated financial statements for the year ended 31 December 2021.
Comparatives in the consolidated income statement have been restated due to the presentation of oil refining
activities as ‘discontinued operations’ (refer Note 2 for further information). The financial performance for the six
months to 30 June 2021 reflects the operations of Independent Petroleum Laboratory with revenue reported after
elimination of intercompany transactions with discontinued operations.
Accounting policies
The accounting policies used in the preparation of these financial statements are consistent with those used in
the previously published audited consolidated financial statements as at and for the year ended 31 December
2021. There were no new standards, interpretations and amendments effective from 1 January 2022 that would
have a material impact on the Group.
Use of judgements and estimates
The preparation of financial statements requires directors to make certain judgements, estimates and
assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income
and expenses.
The following areas involve judgements, estimates and assumptions that can significantly affect the amounts
recognised in the financial statements:
•Fair value and useful lives of property, plant and equipment – in 2021 the Group adopted the fair value
model as the measurement base for property, plant and equipment (refer to the 2021 financial statements
for further details). The Group reassessed the remaining useful lives of its infrastructure assets effective
from 1 January 2022 resulting in changes to remaining lives of certain assets (refer Note 8 for further
information).

Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)

10

• Recoverability of tax losses – in the six months ended 30 June 2022, the Group generated a tax loss of
c.$393.0 million, increasing the balance of total available losses (including losses from prior years) to c.$467
million at 30 June 2022. A deferred tax asset in respect of these unutilised tax losses has been recognised.

On the basis that at least 49% continuity of shareholding is maintained, or if there were to be a breach of
shareholder continuity, that the Company could satisfy the Business Continuity Test (dependent on ‘there
being no major’ or a ‘permitted major’ change in the business), Management and the Board believe that
future taxable profits will be available against which the losses can be offset and therefore the deferred tax
asset realised.

• Provisions – consistent with the 2021 financial statements, the Group continues to recognise several
provisions in relation to the conversion of the refinery into a dedicated fuels import terminal operation (refer
to Note 11 for further information).

• Discontinued operations – in March 2022 the Group ceased refining operations and commenced operations
as a dedicated fuels import terminal from 1 April 2022. This has resulted in the refining cash generating unit
being classified as ‘discontinued operations’.

The results from discontinued operations (as presented in Note 2) include processing fees, pipeline fees and
other refining income earned under the Processing Agreements, and Wiri land and terminal lease income to
31 March 2022, and the associated operating costs.

The results from continuing operations include import terminal fees earned under the Terminal Services
Agreements and Private Storage Agreements and Wiri land and terminal lease income from 1 April 2022, and
the associated operating costs, as well as the results of Independent Petroleum Laboratory for the six
months to 30 June 2022.


1 COVID-19

Pipeline throughputs in the six months ended 30 June 2022 were 1,132 million litres, comparable to the previous
corresponding period and 30% lower than the 2019 corresponding period (pre-COVID-19).

Although pipeline volumes during the period remained lower than pre-COVID-19 levels (predominately due to lower
demand for jet fuel from the Auckland International Airport), following the phased reopening of borders from
February 2022 jet fuel demand has recovered from c.30% to above 50% of pre-COVID-19 levels in July 2022.


2 Discontinued operations

Following the strategic review undertaken by the Company and the Final Investment Decision taken by the Board
to proceed with the conversion to an import terminal (as detailed in the 2021 consolidated financial statements),
the Group ceased refining operations in March 2022, and commenced operations as a dedicated fuels import
terminal from 1 April 2022.

The cessation of refining activities in March 2022 has resulted in refining operations being classified as
‘discontinued operations’, and are outlined in the below table:

Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)
11
The Consolidated Statement of Cash Flows includes the following amounts attributed to discontinued operations:
Total operating and capital costs associated with the refinery’s shutdown and decommissioning, and the import
terminal conversion are expected to be in the range of $200 to $220 million incurred over approximately four
years, and c.$50 to $60 million of demolition costs longer-term. The Company recognised provisions for operating
conversion costs in the 31 December 2021 financial statements – refer to Note 11 for further details of the
movement in these provisions.
GROUPGROUP
30 June 202230 June 2021
NOTE $000$000
DISCONTINUED OPERATIONS
INCOME
Revenue369,001113,746
TOTAL INCOME69,001113,746
EXPENSES
Purchase of process materials and utilities18,24035,555
Materials and contractor payments4,0827,674
Salaries, wages and benefits13,07314,739
Administration and other costs7,14713,439
TOTAL EXPENSES42,54271,407
EARNINGS BEFORE DEPRECIATION, CONVERSION COSTS, FINANCE COSTS AND
INCOME TAX
26,45942,339
Depreciation and disposal costs87,90741,225
Conversion costs11(1,659)-
TOTAL DEPRECIATION, DISPOSALS AND CONVERSION COSTS6,24841,225
NET PROFIT / (LOSS) BEFORE FINANCE COSTS AND INCOME TAX20,2111,114
Finance income(42)(46)
Finance costs114,3025,469
NET FINANCE COSTS4,2605,423
NET PROFIT / (LOSS) BEFORE INCOME TAX15,951(4,309)
Income Tax4,394(594)
NET PROFIT / (LOSS) AFTER INCOME TAX11,557(3,715)
30 June 202230 June 2021
$000$000
CASH FLOWS (USED IN) / FROM DISCONTINUED OPERATIONS
Net cash (used in) / from operating activities(26,602)1,631
Net cash (used in) investing activities-(19,969)
Net cash (used in) / from financing activities--
NET CASH FLOWS USED IN DISCONTINUED ACTIVITIES FOR THE PERIOD(26,602)(18,338)

Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)
12
3 Income
Import terminal and associated fees are recognised over time as services are delivered. An output method is
applied to measure progress of the services provided. The revenue is recognised in the amounts invoiced,
applying the practical expedient in NZ IFRS 15, reflecting actual volumes delivered, adjusted for minimum fee
(take-or-pay) when applicable.
Rental income from operating leases (including Wiri Oil terminal rental) is recognised on a straight-line basis in
accordance with the substance of the relevant agreements.
There is no significant judgement involved in the price determination and allocation. The Group does not have
contracts with customers where significant financing components, non-cash considerations or consideration
payable to customers, obligations for refunds or specific warranties would exist.
4 Segment information
Management reviews the Group’s performance of operating segments primarily based on revenue and adjusted
earnings before depreciation and amortisation, conversion costs, net finance costs and tax expense (‘Adjusted
EBITDA’). For a reconciliation between the Non-GAAP measure, Adjusted EBITDA, to the reported net profit/loss
after tax refer to Note 16. Assets and liabilities information, depreciation, finance income and costs and income
taxes are managed on a Group basis and are therefore not presented as part of the segment information.
Effective 1 April 2022, Management has identified one reportable segment, Infrastructure, which comprises the
dedicated fuels import terminal system (including jetty infrastructure at Marsden Point, storage tanks, and
Marsden Point to Auckland pipeline), Wiri land and terminal leases and the fuel testing laboratory.
Prior to 31 March 2022, the Group also identified Oil refining segment which was classified as discontinued
following the cessation of refining operations as outlined in Note 2.
GROUPGROUP
30 June 2022
30 June 2021
(restated)
NOTE$000$000
CONTINUING OPERATIONS
Import terminal revenue25,740-
Wiri land and terminal lease income1,632-
Laboratory and other revenue 2,4591,684
TOTAL REVENUE FROM CONTINUING OPERATIONS29,8311,684
DISCONTINUED OPERATIONS
Processing fees47,31269,602
Natural Gas recovery4,73711,822
Pipeline and terminalling fee revenue5,98720,204
Wiri land and terminal lease income1,6313,263
Other refining related income9,3348,855
TOTAL REVENUE FROM DISCONTINUED OPERATIONS269,001113,746
TOTAL REVENUE98,832115,430

Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)
13
Segment results
(*) prior to consolidation eliminations
(**) Adjusted EBITDA is adjusted earnings before depreciation, conversion costs, finance costs and income tax
5 Related parties
The Group entered into transactions with related parties, primarily processing and distribution revenues under the
Processing Agreements until 31 March 2022 and import terminal and related revenue under the Terminal Services
and Private Storage Agreements from 1 April 2022.
Details of related parties and the types of transactions entered into during the period ended 30 June 2022 are
consistent with those disclosed in the audited financial statements for the year ended 31 December 2021 (refer in
particular to Note 5 of the 2021 consolidated financial statements).
30 June 2022InfrastructureOil RefiningTotal
NOTE $000$000$000
CONTINUING OPERATIONS
External customer29,831-29,831
Inter-segment1,272-1,272
TOTAL REVENUE FROM CONTINUING OPERATIONS31,103-31,103
DISCONTINUED OPERATIONS
External customer14268,85969,001
Inter-segment---
TOTAL REVENUE FROM DISCONTINUED OPERATIONS14268,85969,001
TOTAL REVENUE*31,24568,859100,104
ADJUSTED EBITDA**1619,74329,33349,076
30 June 2021 (restated)InfrastructureOil RefiningTotal
NOTE $000$000$000
CONTINUING OPERATIONS
External customer1,684-1,684
Inter-segment2,066-2,066
TOTAL REVENUE FROM CONTINUING OPERATIONS3,750-3,750
DISCONTINUED OPERATIONS
External customer-113,746113,746
Inter-segment---
TOTAL REVENUE FROM DISCONTINUED OPERATIONS-113,746113,746
TOTAL REVENUE*3,750113,746117,496
ADJUSTED EBITDA**16(833)35,37434,541

Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)
14
6 Equity
The issued capital of the Company is represented by 372,725,917 ordinary shares (31 December 2021:
372,223,477) issued and fully paid, less 1,031,802 (2021: 1,175,163) treasury shares held by CRS Nominees
Limited. All ordinary shares rank equally with one vote attached to each ordinary share.
On 10 May 2022 the Company issued to the Chief Executive Officer (CEO) 232,991 share rights under the
Company’s Share Rights Plan. The Share Rights will convert on a 1:1 basis for nil cash consideration into fully paid
ordinary shares on the third anniversary of the award (unless extended to the fourth anniversary), subject to the
achievement of the outcomes sought from the material decisions made by the Board as part of the Strategic
Review process, to the reasonable satisfaction of the Board. Vesting is also subject to the CEO remaining
employed in her current role except in certain no-fault terminations provided the above performance condition is
satisfied. The shares will be issued (or transferred in accordance with the terms of the Channel Infrastructure
Share Rights Plan) in respect of vested Share Rights as soon as reasonably practicable after vesting.
On 13 April 2022, the Company issued 502,440 ordinary shares, at an issue price of $1.055 per share, pursuant to
the Employee Share Purchase Scheme. The shares are held on trust by CRS Nominees as Trustee until they are
withdrawn by the employees following a restricted period of three years.
The total cost of the shares and share rights under the share schemes (including the Share Rights Plan and
Employee Share Purchase Scheme) recognised in the six months to 30 June 2022 was $1.3 million (30 June 2021:
$0.1 million) with a corresponding increase in Share Scheme Entitlement Reserve, noting that the cost recognised
in 2022 is higher due to some employees being made redundant, which resulted in earlier recognition of the costs
associated with the share schemes.
7 Borrowings
In April 2022 Channel Infrastructure extended $120 million of its existing bank facilities out to December 2023.
In May 2022, Channel Infrastructure issued $100 million of unsecured, unsubordinated, fixed rate retail bonds for a
term of five years, maturing on 20 May 2027. The bonds are quoted on the NZDX. The net proceeds from the retail
bonds provided diversification of funding that aligns with an infrastructure business, and were applied towards
repaying a portion of Channel Infrastructure’s existing bank debt and to replace some of its bank facilities which
were subsequently cancelled.
As at 30 June 2022 the total available debt funding facilities amounted to $375 million (including the Company’s
$75 million subordinated notes and $100 million retail bonds on issue).
The table below outlines the maturity profile of the facilities as at 30 June 2022:

Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)
15
(*) The difference between the carrying value of the subordinated notes and retail bonds and their respective face
values is due to unamortised issue costs and accrued interest. While the expiry of the subordinated notes is on 1
March 2034, the first election date is in March 2024, when the Company may elect to either redeem the notes or to
offer new conditions to the noteholders.
The carrying amounts of bank borrowings approximate their fair value. The borrowings are unsecured. The Parent
borrows under a negative pledge arrangement which requires certain certificates and covenants. All these
requirements have been met and no breaches of these covenants are forecast for the next twelve months.
GROUPGROUP
30 June 202230 June 2021
$000$000
BORROWINGS
Non-current borrowings:
Revolving cash advances Mar-23-50,000
Revolving cash advances Jun-24-25,000
Revolving cash advances Mar-2525,00050,000
Revolving cash advances Dec-2325,000-
Subordinated notes *Mar-3474,72874,698
Retail bonds *May-2798,602-
Total non-current borrowings223,330199,698
TOTAL BORROWINGS223,330199,698
UNDRAWN FACILITIES
Revolving cash advancesMar-22-40,000
Revolving cash advances Dec-22-15,000
Revolving cash advances Mar-23-95,000
Revolving cash advances Dec-2380,000-
Revolving cash advances Jun-24-15,000
Revolving cash advances Mar-2570,00045,000
TOTAL UNDRAWN BORROWING FACILITIES150,000210,000
MATURITY
DATE

Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)

16

8 Property, plant and equipment, right-of-use assets and intangibles

During the six months ended 30 June 2022 the Group acquired property, plant and equipment with a cost of $18.4
million (31 December 2021: $35.1 million).

The remaining useful lives of the Group’s property, plant and equipment have been reviewed resulting in changes
to the remaining lives of certain import terminal system assets outlined below:



During the six months ended 30 June 2022 the Group has recognised c.$16 million of depreciation expense and
expects to recognise c.$32m (of which c.$8 million is included as part of the discontinued operations) in the 12
months to 31 December 2022, reflective of the impact of the changes of remaining useful lives.

9 Contractual commitments

Commitments are related to asset purchases and other on-going contractual commitments as at the reporting
date but not provided for in the financial statements. As at 30 June 2022 the contractual commitments amounted
to $13.3 million (31 December 2021: $21.5 million).


10 Trade and other receivables and payables

Significant reduction in trade and other receivables and payables results from there being no excise duty
receivable and payable at 30 June 2022 (31 December 2021: $114.2 million of excise duty receivable and
payable). Following the commencement of import terminal operations, the Marsden Point site is no longer a
Customs Controlled Area and therefore the Company ceased to collect (on behalf of its customers), and to pay
excise duty to New Zealand Customs Service.


11 Provisions

Provisions relate to the costs associated with the refinery decommissioning, demolition and restoration, and
workforce and other provisions – refer Note 15 of the 2021 consolidated financial statements for further details.

During the six months ended 30 June 2022 provisions have reduced by $54.4 million compared to 31 December
2021 due to the following:

- Reduction by c.$46 million due to utilisation of previously recognised provisions (including $25 million of
shut-down and decommissioning costs, and $21 million of workforce transition and other costs);
- Reduction by c.$11 million due to increase in discount rates (including $8 million relating to conversion
provisions and $3 million to other provisions) that now range from 3.3 to 4.2% (31 December 2021: 1.3 to
3.1%); and
- Increase in provisions by c.$3 million, which includes $1 million due to discount unwinding (with the
corresponding impact on financing costs of the discontinued operations).




REMAINING USEFUL LIFES
Buildings2-30 years
Jetties14-45 years
Tanks20-45 years
Other Assets1-80 years
Marsden Point to Auckland Pipeline and other assets5-45 years

Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)

17


12 Employee benefits

Employee benefits comprise defined benefit pension and medical plan, wages, salaries, annual leave, and long-
service leave and retirement bonuses. The decrease in employee liabilities at 30 June is principally due to the
lower annual leave liability of the reduced workforce.

Defined benefit pension and medical plan liabilities reduced during the six months ended 30 June 2022 due to a
higher discount rate – 4.1% at 30 June 2022 compared to 2.8% at 31 December 2021. Other actuarial
assumptions used in the 30 June 2022 valuation were largely consistent with those adopted as at 31 December
2021.

The total amount recognised in the Income Statement and Other Comprehensive Income is as follows:




13 Deferred tax

The deferred tax asset in the consolidated balance sheet of $176 million includes $131 million associated in
respect of accumulated tax losses of $467 million. The increase in tax losses in 2022 reflects the crystallisation of
the tax losses associated with the write-off of refining assets after the cessation of refining operations.

The deferred tax liability is predominantly associated with property, plant and equipment which, for accounting
purposes is held at fair value, while for tax purposes at historical cost.

14 Contingencies

Apart from contingencies disclosed in Notes 15 and 24 to the 2021 financial statements, the Group had no
contingent liabilities as at 30 June 2022.

15 Events after balance date

There were no significant events after balance date.

16 Non-GAAP disclosures

Channel Infrastructure’s standard profit measure prepared under New Zealand Generally Accepted Accounting
Practice (NZ GAAP) is net profit/(loss) after tax. Channel Infrastructure has used non-GAAP measures when
discussing financial performance in these financial statements. The Directors and the Management believe that
these measures provide useful information as they are used internally to evaluate segmental and total Group
performance, to establish operating and capital budgets as well as being used for bank covenant purposes.
GROUPGROUP
30 June 202230 June 2021
NOTE$000$000
Service cost(721)(884)
Net interest cost(46)(34)
Settlement gain786,762
Contributions tax(328)1,574
(1,017)7,418
Actuarial gains8,0985,495
Actual return on plan assets (lower) / greater than discount rate(7,468)5,038
Contributions tax265,082
65615,615
TOTAL RECOGNISED IN OTHER COMPREHENSIVE INCOME WITH
CONTRIBUTIONS TAX
PLAN (EXPENSE) / INCOME IN INCOME STATEMENT

Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)

18


Non-GAAP profit measures are not prepared in accordance with NZ IFRS (New Zealand equivalents to
International Financial Reporting Standards) and are not uniformly defined, therefore the non-GAAP profit
measures included in this report are not comparable with those used by other companies. They should not be
used in isolation or as a substitute for GAAP profit measures as reported by Channel Infrastructure in accordance
with NZ IFRS. Terms are defined as follows:

Reported EBITDA: Reported earnings before depreciation and disposal costs, finance costs and income
tax.

Adjusted EBITDA Reported EBITDA adjusted for other non-cash expenses and used for bank covenant
purposes.

The below reconciliation is for the results of both continuing and discontinued operations:





GROUPGROUP
30 June 202230 June 2021
NOTE$000$000
Reported net profit / (loss) after tax for the period (GAAP)
17,184(4,914)
Add back:
Income tax6,533(785)
Net finance costs7,8815,422
Conversion costs(1,659)-
Depreciation and disposal costs
16,19241,781
Reported EBITDA46,13141,504
Add back non-cash expenses:
Defined benefit pension fund (including settlement)
1,017(7,418)
Non-cash share rights cost
1,335115
Other non-cash expenses
593340
Adjusted EBITDA49,07634,541

Corporate Directory

19



Registered Office Chairman
Marsden Point S C Allen (Independent Director) (resigned effective 1 July 2022)
Ruakaka J B Miller (Independent Director) (since 1 July 2022)

Mailing Address Independent Directors
Private Bag 9024 A Holmes (appointed on 4 April 2022)
Whangarei 0148 A M Molloy (appointed on 4 April 2022)
Telephone: +64 9 432 5100 V C M Stoddart
P A Zealand
Website
www.channelnz.com Non-Independent Directors
J Bourke (ceased on 10 May 2022)
Share Register N L Jones
Computershare Investor Services Limited L Nation
Private Bag 92119
Auckland 1142 Chief Executive Officer
Telephone: +64 9 488 8777 N M James
enquiry@computershare.co.nz
General Counsel & Company Secretary
Bankers C D Bougen
ANZ Bank New Zealand Limited
Bank of New Zealand



Auditor
Ernst & Young


Managing your shareholding online
To change your address, update your payment instructions and to view your registered details including transactions,
please visit: www.computershare.co.nz/investorcentre
Please assist our registrar by quoting your CSN or shareholder number.

---

Financial Results
For the six months ended 30 June 2022
25 August 2022

2
• This presentation contains forward looking statements concerning the
financial condition, results and operations of Channel Infrastructure NZ Limited
(hereafter referred to as “CHI”).
• Forward looking statements are subject to the risks and uncertainties
associated with the fuels supply environment, including price and foreign
currency fluctuations, regulatory changes, environmental factors, production
results, demand for CHI’s products or services and other conditions. Forward
looking statements are based on management’s current expectations and
assumptions and involve known and unknown risks and uncertainties that
could cause actual results, performance or events to differ materially from
those expressed or implied in these statements.
• Forward looking statements include among other things, statements
concerning the potential exposure of CHI to market risk and statements
expressing management’s expectations, beliefs, estimates, forecasts,
projections and assumptions. Forward looking statements are identified by the
use ofterms and phrases such as “anticipate”, “believe”, “could”, “estimate”,
“expect”, “goals”, “intend”, “may”, “objectives”, “outlook”, “plan”, “probably”,
“project”, “risks”, “seek”, “should”, “target”, “will” and similar terms and phrases.
• Readers should not place undue reliance on forward looking statements.
Forward looking statements should be read in conjunction with CHI’s financial
statements released with this presentation. This presentation is for information
purposes only and does not constitute legal, financial, tax, financial product
advice or investment advice or a recommendation to acquire CHI’s securities
and has been prepared without taking into accountthe objectives, financial
situation or needs of individuals. Before making an investment decision, you
should consider the appropriateness of the information having regard to your
own objectives, financial situation and needs and consult an NZX Firm or
solicitor, accountant or otherprofessional adviser if necessary.
• In light ofthese risks, results could differ materially from those stated, implied
or inferred from the forward-looking statements contained in this
announcement. CHI does not guarantee future performance and past
performance information is for illustrative purposes only. To the maximum
extent permitted by law, the directors of CHI, CHI and any of its related bodies
corporate and affiliates, and their officers, partners, employees, agents,
associates and advisers do not make any representation or warranty, express
or implied, as to accuracy, reliability or completeness of the information in this
presentation, or likelihood of fulfilment of any forward-looking statement or any
event or results expressed or implied in any forward-looking statement, and
disclaim all responsibility and liability for these forward-looking statements
(including, without limitation, liability for negligence).
• Except as required by law or regulation (including the NZX Listing Rules), CHI
undertakes no obligation to provide any additional or updated information
whether as a result of new information, future events or results or otherwise.
• Forward looking figures in this presentation are unaudited and may include
non-GAAP financial measures and information. Not all ofthe financial
information (including any non-GAAP information) will have been prepared in
accordance with, nor is it intended to comply with: (i) the financial or other
reporting requirements of any regulatory body; or (ii) the accounting principles
generally accepted in New Zealand or any other jurisdiction with IFRS. Some
figures may be rounded, and so actual calculation of the figures may differ
from the figures in this presentation. Non-GAAP financial information does not
have a standardisedmeaning prescribed by GAAP and therefore may not be
comparable to similar financial information presented by other entities. Non-
GAAP financial information in this presentation is not audited or reviewed.
• Each forward-looking statement speaks only as of the date of this
announcement, 25 August 2022.
Important Information

Highlights and
Operating Update
Naomi James
Chief Executive Officer

Completed safe transition from refinery to terminal operations
First quarter of terminal operations successfully completed with 19 import shipments discharged
Conversion project remains on-plan and to budget
Successful retail bond issuecompleted andbank refinancing underway
Tracking in line with FY22 guidance and FY23 EBITDA now expected at top end of guidance
Strong EBITDA and cash flow supports return to dividends in March 2023
4
Successful delivery on strategy
4

May 2022
Strong safety and environmental record continues
5
•Maintained strong safety performance through transition to import
terminal
•No Tier 1 or 2 process safety incidents
•Tworecordable personal safety incidents
•Revised safety case approved by WorkSafe
•Significant reduction in emissions and energy intensity
•98% reduction in scope 1 and 2 emissions in Q2 compared to
2019, with further reductions expected from Q3
•Energy requirements (electricity and gas) significantly
reduced –equivalent to c.3% reduction in New Zealand
electricity demand
•National Greenhouse Agreement concluded with NZ
Government
[1] Tier 1 Process Safety Event (API 754) –A tier 1 Process Safety Event (PSE) is an unplanned or uncontrolled release of any material, including non-toxic and non-flammable, from a process which results in one or more of the following: A LTI
and/or fatality; A fire or explosion resulting in greater than or equal to $25,000 of direct cost to the company; A release of material greater than the threshold quantities given in Table 1 of API 754 in any one-hour period; Anofficially declared
community evacuation or community shelter-in-place
[2] Tier 2 Process Safety Event (API 754) –A tier 2 Process Safety Event (PSE) is an unplanned or uncontrolled release of any material, including non-toxic and non-flammable, from a process which results in one or more of the following: A
recordable injury; A fire or explosion resulting in greater than or equal to $2,500 of direct cost to the company; A release of material greater than the threshold quantities given in Table 2 of API 754 in any one-hour period
[3] TRIF –Total Recordable Injury Frequency per 200,000 hours (rolling 12-monthly average)
[4] NZ Business Leaders Health & Safety Forum Benchmark (injuries per 200,000 hrs)
0
1
2
3
4
5
6
20182019202020212022 YTDCONCAWE
Benchmark 2020
Health & Safety Performance
Tier 2 [2]
Tier 1 [1]
TRIF [3]
Benchmark [4]
0
200
400
600
800
1,000
1,200
1,400
201920202021Q1 22Q2 22
CO
2
emissions (ktCO
2
)
Scope 1
Scope 2
98% reduction

May 2022
Jet capacity returning to New Zealand
6
Jet
•Jet demand at highest level since COVID hit
•Currently above 50% pre-COVID and continuing to
recover as borders open and aviation capacity returns
Diesel
•Diesel demand remained strong reflecting economic
activity
Petrol
•Petrol demand showed rapid recovery from lockdown
impacts albeit slightly below pre-COVID levels
(highpump prices)
Pipeline throughput (% of pre-COVID)
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
JetDieselPetrol

0ML
100ML
200ML
300ML
Pre-conversionPost-conversion
Terminal capacity (ML)
Shared
terminal
capacity
Private
storage
0%
20%
40%
60%
80%
100%
Pipeline Utilisation(%)
222
257
264
275
139
146
0
200
400
600
800
1,000
Pipeline and TLF volumes (ML)
PetrolDieselJet
May 2022
Increasing assetutilisationand storage capacity as demand recovers
7
•19 import shipments discharged at Marsden Point in Q2 2022
•Product delivered to the Auckland and NorthlandmarketsinQ2 2022
up9% on previous quarter
•Significant pipeline capacity available to meet recovering demand
•Terminal conversion delivering increased fuel storage capacity –
significant freight benefit for customers through terminal ullage
86% increase

May 2022
Conversion project continues to track to plan and budget
8
•Conversion project costs tracking to plan
•Key terminal facilities online from 1 April with additional
storage capacity to be added through to mid-2023
•Decommissioning work now 70% complete –refinery
effectively dismantled internally with shells and structures
remaining. Catalyst and heat exchangers removed for
recycling off-site
•Workforce transition substantially complete –refinery
Collective Agreement concluded
•Terminal upgrades ongoing, with the conversion of the
largest private storage tanks underway
•c.$84m
[1]
project to date spend to the end of July, with more
than halfof terminal conversion costs spent or
committed/contracted, reducinginflation risk
•Contingency levels remain appropriate
0
50
100
150
200
FY21FY22FY23 -
FY27
FY33+
$m
SpentCommittedRemaining
Conversion cost phasing
Terminal conversion: $200-220m
Private storage: $45-50m
Demolition: c.$50m
202320242025
Q1Q2Q3Q4
2022
Today
SHUTDOWN
DECOMMISSIONING
WORKFORCE TRANSITION
TERMINAL UPGRADE PROJECTS
Conversion timeline
[1] Includes private storage of c.$4m

Jarek Dobrowolski
Chief Financial Officer
Financial Update

Strong EBITDA margin of 66% delivered in the first quarter of terminal operations
Significantcash flows funded 2/3
rds
of conversion spend in H1
Net assets up 5% from $1.33 to $1.40 per share
Tax losses crystalised with $467 million of losses available as at30 June 2022
Successful bond issue, and bank refinancing well underway
Tracking in line with FY22 guidance and FY23 EBITDA now expected at top end of guidance
Strong cash flow increases confidence in return to dividends in March 2023
Terminal delivers strong cash flow
10

Import terminal delivers strong EBITDA
Debt Maturity Profile
11
•Strong revenue delivered by new Terminal Services
Agreements from Q2, with EBITDA marginof c.66%
•Terminal asset useful lives review resulted in lower ongoing
depreciation annual depreciation of c.$32m p.a.
[2]
(including Wiri asset depreciation of c.$6m until early 2025)
•100% of debt fixed providing funding cost certainty
Continuing operations
[1]
(infrastructure business)($m)
Revenue29.8
Operating costs(10.1)
EBITDA19.7
Depreciation(8.3)
Financing costs(3.6)
Net profit before tax7.8
[1] The results from continuing operations include import terminal fees earned under the Terminal Services Agreements and PrivateStorage Agreements and Wiri land and terminal lease
income from 1 April 2022, and the associated operating costs, as well as the results of Independent Petroleum Laboratory for the6-months to 30 June 2022.
[2] Based on current asset base, andexcluding any growth capex impacts on depreciation.

•Total electricity costs reduced significantly through transition from
refinery to terminal operations, but unit costs remain high:
•c.$114/MWh fully hedged cost of supply in H1 2022
•Transmission and distribution charges of c.$153/MWh for
terminal
•Labourcosts reflect c.70 import terminal staff and lab testing
employees
[1]
Revenue underpinned by contract protections
Debt Maturity Profile
12
•Take-or-Pay commitments underpin revenue while jet demand
continues to recover
•Over90% of total revenue underpinned by fixed / Take or Pay fees
•c.90% of revenue subject to PPI indexation from 2023
Revenue
(continuing operations)
($m)
Operating costs
(continuing operations)
($m)
Energy and utilitiesLabour costsSite operations and other
[1] Note, employees involved in refinery decommissioning and transition are included in conversion costs (refer to ‘Discontinuedoperations’ and Provisions notes in the financial statements)
Wiri lease
Laboratory testing
Terminal fees - fixed
Terminal fees - variable
Terminal - Take-or-Pay top up
Take-or-Pay
& fixed
revenue

Q1 Refinery financial performance
Debt Maturity Profile
13
•Revenue received under Processing Agreements which concluded
end March 2022:
•$47m processing fees
•$6mpipeline fees
•$16m sulphur, natural gas pass-through, carbon and other
revenue
•Q1 operating costs include $7m sulphur, natural gas pass-through
and carbon costs
•Conversion costs include ongoing conversion costs
[1]
offset by
impact of discount rate change on provisions
Discontinued operations
(refining business)
($m)
Revenue69.0
Operating costs(42.5)
EBITDA26.5
Depreciation(7.9)
Conversion costs
1.7
Financing costs
(incl. discount unwinding)
(4.3)
Net profit before tax16.0
[1] Note that conversion costs have been largely provided for in the financial year 2021, with ongoing income statement impacts from costs not eligible for recognition as a liability.
These costs are all within the overall conversion project budget of $200 to $220 million.

215
41
184
63
3
6
-
50
100
150
200
250
Net Debt
FY21
Net Debt
HY22
Operating
Cashflow
Capex
[2]
Conversion
costs
[1]
Net financing
Strong cash flows funded 2/3rds of conversion spend
14
Net debt movement
•c.$63m spent on the conversion in H1
•Strong cash flows generated from operations, funded 2/3
rds
of
conversion spend
•Net debt increased c.17% to $215m
•Netdebt expected to be below 4x EBITDA atend 2022
[1] Include operating and capital conversion costs (incl. private storage capex).
[2] Stay-in-business capex excludes growth and conversion capital expenditure.

Net assets up 5% from $1.33 to $1.40 per share
Debt Maturity Profile
15
31 December 2021
($m)
30 June 2022
($m)
Cash168
Receivables and inventory14834
Current assets16442
Property, plant and equipment869868
Intangibles & other non-currents4244
Deferred tax assets82176
Total assets1,1571,130
Trade and other payables15634
Employee benefits & other104
Provisions8767
Current liabilities253105
Borrowings200223
Employee benefits & other1012
Provisions9864
Deferred tax liabilities101204
Total liabilities662608
Net assets495522
Net working capital
•Reduction in trade receivables and payables –excise duty is no
longer collected (and paid on behalf of customers) following the
commencement of import terminal operations
Conversion costs
•Provisions for conversion reduce –predominantly $46m spent
as workforce transition, shutdown and decommissioning are
completed in H1, and c.$8m reduction in conversion provisions
due to higher discount rate
•Employee benefits also reduced in line with reduced workforce
Tax losses crystalised
•Tax losses crystalised, with c.$467m available at30 June 2022
•Deferred tax liability reflects impact of revaluation of import
terminal assets –a non-cash adjustment that will amortiseover
the life of the assets
Return on assets
•Net assets increased mainly due to net profit for H1 2022 –up
5% from $1.33 to $1.40 per share

-
25
-
25
80
70
100
75
2022202320242025202620272034
Drawn bank facilitiesUndrawn bank facilitiesBonds / subordinated notes
•Existing debt facilities of $375m sufficient to fund conversion
costs, with $160m of liquidity headroom available and no
significant near-term maturities
•Execution of refinancing strategy to diversify funding sources
and improve funding competitiveness:
•Successful $100m unsecured retail bonds issued in May
2022
•Bank refinancing well progressed and focused on aligning
with infrastructure business profile and maintaining bank
facilities of c.$210m
•Net financing costs ($7.9m
[1]
) predominantly made up of bank
interest cost and line fees($4.2m), subordinated notes coupon
of 5.1% and retailbonds coupon of 5.8%
•100% of drawn debt is fixed, providing funding cost certainty
and protection in high interest rate environment
•Weighted average debt maturity (WADM) of 4.7 years
[2]
Execution of debt refinancing strategy well progressed
Debt maturity profile as at 30 June 2022
16
[1] Financing costs are included in continuing and discontinued operations
[2] WADM calculated on the assumption that the subordinated notes are paid at their maturity in March 2034 (noting that at the
first election date in March 2024 the Company may elect to either redeem the notes or to offer new conditions to the noteholders).

Strategy Update and
Outlook
Naomi James
Chief Executive Officer

18
A long-term sustainable operating model with strong aspirations for growth
OUR VISION
OUR STRATEGIC PRIORITIES
Safe, reliable, low
cost operations
High performance
culture
Competitive cost
of capital
Realise
infrastructure
value
Support lower
carbon fuels
transition
Grow and
diversify
Strong safety
systems and
culture
Continuous
improvement
Asset
management
Strong
performance
management
Change-ready
Future focused
More reliable
dividend payout
Diversify access to
capital markets
Leverage the
balance sheet
Realise value of
existing
infrastructure
through import
terminal conversion
Leverage existing
infrastructure
Marsden Point
energy hub
Strategic storage
Repurposing
Marsden Point site
Supply chain
optimisation
Leverage existing capabilitiesTransform to deliver valuePosition for future growth
New Zealand’s leading fuel infrastructure company

Good progress made towards carbon targets
Just transition
At least 90% of employees
seeking new employment
find new roles, or have been
retrained, within 6-months
•Extensive program of workforce transition
support now largely complete
•Greater than 90% of staff who have left in Q2
2022 have found their next opportunity.
Net Zero
Net zero scope 1 and 2
emissions by 2030
•98% reduction in 2019 emissions following
refinery closure (over 1 million tonnesCO2 p.a.)
•85%reduction in electricity consumption and no
natural gas requirements​ -reducing thermal
generation demand
Customer
scope 3
emissions
Our infrastructure is utilised
to support the
decarbonisationof transport
sector and facilitate scope 3
emissions reduction by
2030
•Discussions underway with customers on
infrastructure to support biofuels mandate
•Hydrogen study progressing with FFI; SAF
feasibility progressing with Air New Zealand
TARGET
PROGRESS TO DATE
19

Potential for faster than expected recovery in jet
20
•Auckland jet fuel demand driven by number of flights and
distanceto destination
•More than 75% of New Zealand international flights
depart fromAuckland
[1]
•Strong growth in jet fuel recovery as borders reopened from
February 2022
•70% increase in international flights at AIAL
[2]
•Near 60% increase in Auckland jet fuel demand since
February 2022
•Air NZ load factors in June at 88% –indicating strong
demand
•Potential for stronger than expected recovery in jet-fuel-
subject to aviation capacity
•Forecast to be updated in H2 2022
[1] Auckland International AirportLimited (AIAL)
[2] June 2022 vs. February 2022
[3] Forecasts are based on Hale & Twomey’s forecast, issued in January 2021.
[3]

•Significant capacity available atMarsden Point
•Near-term opportunities:
•Domestic stockholding policy –estimated
50–70ML of additional dieselstorage required in NZ
•Terminal consolidation & optimization–industry
changes, biofuels salesmandate
•Other products (marine fuels, bitumen)
•Potential for Channel operating model to be leveraged
across other shared infrastructure
•Recent clearance application to Commerce
Commission highlights need for investment and open
access for Auckland Fuel Infrastructure
Near-term opportunities exist to grow our terminal footprint
21
c.30%
Tank
capacity
c.35%
Jetty
capacity
c.65%
Pipeline
capacity
Current Terminal Capacity Utilisation

•Electricity remains a material cost
•Currently electricity around ¼of operating costs
•Electricity transmission and distribution costs in
Northland a key impediment to renewable growth
•Forward electricity prices significantly higher than
cost of new generation
•RFI process commenced seeking proposals for long-term
supply
•Lower “all-in” cost of electricity
•Long-term offtake agreement
•Renewable electricity development
•Maranga Ra solar project is a unique, ready-now, solar
project
•35GWhper annum (2019 design, opportunity to
scaleup with improved panel technology)
•Fully-consented project on land owned by Channel
•Existing transmission & distribution capacity
•Capacity to supply terminal and export to the grid
•Meridian solar and battery project on adjacent land
Electricity RFI process commenced to reset electricity costs
22

Performancein line with FY22 guidance
Previous guidanceH1 Update
Q1 Processing Fee revenue expected
to exceed the Fee Floor by c.$5 to $10m
$47m earned
Import terminal fees to commence from
1 April with Take-or-Pay commitments
of c$75m in FY22
$25m received in Q2
FY22 Operating costs (excluding
conversion costs) expected to be c.$70m
$53mfor H1,
including $10m in
continuing operations
Borrowings will increase over the year
and are expected to average around
$220-230m in FY22
$215mat30 June
2022
Financing costs expected to be c.$14m$6.8m
[1]
for H1,
expected slightly
higher in H2
Additional guidance
Full year accounting depreciation of c.$32m
[1] Based on current financing arrangements, hedged positions and current 90-day bank bill rate.
Excludes non-cash financing costs (i.e.provision discount unwinding).
23

Strong Cash Flow in H1 increases confidence in return to dividends for FY22
•Board has reconfirmed dividend policy pay-out of 60-70% of Free Cash Flow (being adjusted net cash generated from operations less
maintenance capex)
•First opportunity for dividendin March 2023 after FY22 results provided net debt is below 4.5x EBITDA
•Net debt expected to be below 4x EBITDA at year end
•Indicatively, Free Cash Flow (excluding growth capex and conversion costs) from terminal in May and June of c.$9m would equate
toFY22 dividend of c.6cps at the mid-point of the dividend pay-out range
The Board reserves the right to adjust the payout ratio or expected timing for the recommencement of dividends should the timing,costs or revenue associated with the conversion (including new services such as
Private Storage Services) or the import terminal business change. The dividend policy will be subject to the Board’s due consideration of the Company’s medium term asset investment programme; a sustainable
financial structure for Channel Infrastructure, recognisingthe targeted investment grade rating; and the risks from short and medium term economic and market conditions and estimated financial performance.
It is the intention of the Board to attach imputation credits to dividends to the extent that they are available. Subject to Net Debt to 12-month rolling normalized EBITDA (beingEBITDA excluding one-off conversion
costs)reducing to below 4.5x times at the time of dividend payment and following the dividend distribution.
24

($m)
Terminal and other revenue
[1]
116 –120
Operating costs
[2]
36 –40
Normalised EBITDA
[3]
76 –84
Depreciation32
Financing costs
[4]
15 –18
Income tax payableNil
Tracking towards top end of FY23 EBITDA guidance range
Indicative FY23 Financial metrics
(in nominal terms, includes contracted private storage)
•Terminal fees to be indexed from 1 January 2023 based on 12-
months PPI to 30 September 2022, pro-rated for 9 months
•9 months PPI to June 2022 of 6.6% implies additional
c.$7m in revenue
•Contracted private storage expected at $9m annualized
revenue (pre-PPI adjustment) by mid-2023
•Key component of opexis electricity costs
•Continuing to work with Northpowerand Transpowerto
reset electricity transmission and distribution costs
•1/3
rd
of 2023 supply hedged at average $175/MWh
•Terminal capital expenditure
[5]
expected to be in the range of $5-
12 million per annum over the initial contract term (including
private storage)
•Opportunity to reduce bank funding costs through refinancing
underway
[1] Revenue includes terminal fees, private storage fees, revenue from Wiri terminal lease (expiring
in 2025) and revenue from laboratory testing services (IPL)
[2] Operating costs exclude one-off conversion costs
[3] Normalised EBITDA excludes one-off conversion costs
[4] Based on current financing arrangements, hedged positions and current 90-day bank bill rate
[5] Import terminal capital expenditure over the initial 10-year contract term, excluding growth and
one-off conversion capital expenditure
25

Criteria for investment:
•above WACC return on
investment
•customer contracts that
provide revenue certainty
Target leverage of 3-4
times EBITDA
Shadow BBB+ rating
Circa $300m target net
debt based on current
asset/earnings base
Dividend Policy of 60-70%
of free cash
flow(excludes growth
capex)
Return to dividends
expected from 2023
Long-term contracts
delivering strong cash
flow
Returns to shareholders
Deleveraging
Focused growth
26
Capital guidance framework released at Investor Day

[1] Normalised EBITDA and Free Cash Flows exclude one-off conversion costs and growth capex
[2] Importterminal capital expenditure range over the initial 10-year contract term, excluding growth and one-off conversion capital expenditure
[3] Based on current financing arrangements, hedged positions and current 90-day bank bill rate
[4]TheBoard has reconfirmed a dividend policy pay-out of 60-70% of Free Cash Flow (being adjusted net cash generated from operations less maintenance capex).The Board reserves the right to adjust the
payoutratio or expected timing for the recommencement of dividends should the timing, costs or revenue associated with the conversion (including new services such as Private Storage Services) or the
import terminalbusiness change. The dividend policy will be subject to the Board’s due consideration of the Company’s medium term asset investmentprogramme; a sustainable financial structure for
Channel Infrastructure,recognisingthe targeted investment grade rating; and the risks from short and medium term economic and market conditions and estimated financial performance. It is the intention
of the Board to attach imputationcredits to dividends to the extent that they are available.Subjectto Net Debt to 12-month rolling normalized EBITDA (beingEBITDA excluding one-off conversion
costs)reducing to below 4.5x times at the time ofdividend payment and following the dividend distribution.
FY23 Financial Metrics ($m)
NormalisedEBITDA
[1]
NormalisedFCF
[1]
Less: capital expenditure
[2]
Less: financing costs
[3]
7684
125
1815
4664
Leaving $15m to $20m available
for deleveraging and growth
Indicative dividend range
$30-40m
(equivalent of 8 to 11cps)
[4]
27
Strong free cashflow enabling returns to shareholders and growth

2
8
Continued focus on driving shareholder value
Increasing fuel demand as COVID restrictions ease and aviation capacity returns
Reset of cost of capital well progressed
Conversion costs and FY22 guidance on track
Confidence in return to dividends from March 2023
Tracking to top end of FY23 EBITDAguidancerange
Range of growth opportunities available to grow earnings in short and medium term
28

Q&A

---

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Channel Infrastructure NZ Limited
Reporting Period 6 months to 30 June 2022
Previous Reporting Period 6 months to 30 June 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$29,831 1,671%
Total Revenue $98,832 (14%)
Net profit/(loss) from
continuing operations
$5,627 570%
Total net profit/(loss) $17,184 450%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay dividends.
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.34 $1.73
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to attached NZX announcement commentary
Authority for this announcement
Name of person

authorised
to make this announcement
Chris Bougen, Company Secretary
Contact person for this
announcement
Laura Malcolm
Contact phone number +64 (0)21 0236 3297
Contact email address communications@refiningnz.com
Date of release through MAP

25/08/2022

Unaudited financial statements accompany this announcement.

---

channelnz.com


NZX RELEASE

25 August 2022

Strong Cash Flow in H1 increases confidence in return to Dividends for FY22
Channel Infrastructure (CHI), New Zealand’s largest fuel infrastructure business based at Marsden Point in
Northland, has today released its financial results for the six-months ended 30 June 2022 (H1 2022).
The financial results reflect discontinued operations of the refinery for the three-months ended 31 March 2022
(Q1 2022) and the continued operations of the import terminal for the three-months to 30 June 2022.

Operational Highlights
• Completed refinery shutdown safely and to plan, despite the challenges of COVID in the community
• First quarter of terminal operations successfully completed with 19 import shipments discharged
• Jet demand at highest level since 2019; demand is currently above 50% of pre-COVID levels and
continuing to recover as borders open and aviation capacity returns
• Conversion project tracking to plan and budget, with decommissioning of the plant 70% complete
and the highest-risk phase of the project over
Financial Highlights
• Strong EBITDA margin from continuing operations of c.66%, demonstrating improved financial
performance under the new operating model
• Significant cash flows funded two-thirds of conversion spend in H1 2022
• Net assets up 5% from $1.33 to $1.40 per share
• Successful retail bond issue completed in May 2022, and bank refinancing well underway to reset
cost of capital
• Performance tracking in line with FY22 guidance, and FY23 EBITDA now expected to be at the top
end of guidance
• Strong cash flow increases confidence in return to dividends in March 2023

Commenting, CEO Naomi James said: “These financial results reflect the transition to Channel Infrastructure
on 1 April, and the stable earnings and cashflows that come with our long-term customer contracts.
Performance is in line with FY22 guidance and FY23 EBITDA is now expected to be at the top of the guidance
range. Our strong cash flow increases our confidence we will return to dividends in March 2023.”

“We have successfully completed our first quarter of import terminal operations and, following the opening up
of New Zealand’s borders, we have seen jet fuel demand rapidly recover to over 50% of pre-COVID levels.
The most complex and risky part of the conversion project with the transition from refinery to terminal
operations is now behind us, and the project remains on-plan and to budget.”

“Work is progressing on a number of growth opportunities, alongside our partners, to support New Zealand’s
fuel security and decarbonisation, by using our highly strategic assets to deliver long-term shareholder value.
With significant underutilised capacity at our site, we are well positioned for the future.”

channelnz.com


Strong EBITDA and cash flow supports return to dividends for FY22
Revenue from continuing operations was $29.8 million reflecting the first three-months of terminal operations.
On 1 April, the long-term Terminal Services Agreements with customers bp, Mobil and Z Energy commenced,
with fixed and minimum fee components, which allows time for a recovery in jet fuel demand from COVID
impacts. The strength these contracts provide is reflected in the fact that over 90% of total revenue from
continuing operations was fixed or underpinned by “take-or-pay” fees. Import terminal operating costs were
$10.1 million reflecting energy and utilities (23%), labour (23%) and site operations, and other (54%).
The strong EBITDA margin of c.66% and operating cash flow generation
1
of c.$41 million allowed Channel to
fund two-thirds of conversion spend in H1 2022.
Continuing operations ($m) H1 2022
Revenue 29.8
EBITDA 19.7
Net Profit Before Income Tax 7.8
Net Debt 215.3
Net Assets 522.4

Refining operations ceased in March 2022, and in the last three-months of operation generated revenue of
$69.0 million, and an EBITDA of $26.5 million.
Net Debt increased from $183.6 million as at 31 December 2021 to $215.3 million as at 30 June 2022 as the
refinery’s shutdown, decommissioning, and workforce transition were completed, with $63 million spent in H1
2022. Net assets increased by 5% (from $495.5 million as at 31 December 2021 to $522.4 million as at 30
June 2022) to $1.40 per share.
Successful first quarter of terminal operations with jet fuel recovering to above 50% of pre-COVID
levels
Channel discharged 19 import shipments in Q2 2022 and a total of c.593 million litres was delivered to the
Auckland market through the Marsden Point to Auckland Pipeline, with the balance of c.85 million litres
delivered to Northland via the Truck Loading Facility adjacent to the Terminal.
Diesel demand remained strong in H1, reflecting wider economic activity, and petrol demand showed a rapid
recovery from lockdown impacts, albeit remained slightly below pre-COVID levels due to high pump prices.
Petrol demand has now recovered to pre-COVID levels. As expected, jet fuel demand has recovered with the
reopening of the borders and aviation capacity returning and is now at the highest level since 2019 – currently
at above 50% of pre-COVID levels. Airline capacity constraints are currently limiting the rate of recovery of
aviation. Nonetheless, the potential exists for jet demand to recover faster than previously expected with all
border restrictions lifted.

Significant progress on carbon targets
In April, Channel Infrastructure published its first Sustainability Report, which provided a summary of its
sustainability performance to date and outlined the Company’s ambitious targets for the future. During H1
2022, we have made significant progress towards these targets.

channelnz.com
The extensive workforce transition program continued throughout the period with significant workforce
changes occurring after the refinery shut-down in March. Channel Infrastructure set an ambitious target for at
least 90% of employees seeking new employment securing a job or retraining within six-months of leaving the
Company. This is on-track with greater than 90% of staff who have left in Q2 2022 having found their next
opportunity, and only five still looking for their next opportunity.
Channel Infrastructure is targeting Net Zero scope 1 and 2 emissions by 2030. The shut-down of the refinery
saw a 98% reduction in 2019 emissions (over one million tonnes of CO
2
per annum). The business has also
seen an 85% reduction in electricity consumption and now has no natural gas requirements – reducing thermal
generation demand and supporting New Zealand’s wider efforts to decarbonise. CO
2
emissions fell to c.27
ktCO
2
in Q2 2022 compared to 222 ktCO
2
in Q1 2022 with further reductions expected in H2 2022.
Our environmental remediation work remains a priority, with ongoing environmental management at Marsden
Point continuing to remediate legacy groundwater hydrocarbons; the flush out and decontamination and
cleaning of plant and equipment ready for demolition and recycling and removal of materials is ongoing, and
included in the decommissioning and terminal plans and budgets.
Conversion project remains on-plan and to budget
Channel Infrastructure successfully commenced operation of New Zealand’s largest fuel import terminal at
Marsden Point on 1 April 2022, following the safe shutdown of the refinery in March. Two months of intensive
site works was completed after closure to permanently decommission the refinery assets. The process of plant
decommissioning is now approximately 70% complete, and the plant has been dismantled internally with only
the shells and structures remaining. The highest-risk phase of the project is now behind us.
Over the next nine-months decommissioning works will continue to ensure the main refinery process plant and
remaining tankage facilities are in a safe state for at least 10-years. Concurrently, Channel will continue
terminal upgrades to provide additional jet fuel storage, to improve tanker unloading capacity and to upgrade
its fire-fighting and secondary containment systems.
Conversion costs are tracking to plan, with project spend to the end of July of $84 million
2
. Of the total budget,
more than half has already been spent or committed, reducing the risk of inflation on project costs.
Focused on Growth Opportunities
Channel Infrastructure’s highly-strategic assets opens up many growth opportunities with the significant
industry change, and New Zealand’s decarbonisation ambitions.
As previously announced, work is underway to convert a number of tanks to increase storage capacity for
customers, with further opportunities for additional tank conversions should they be required to meet fuel
storage requirements. With increased fuel storage at Marsden Point, we have the opportunity to support New
Zealand’s fuel security now, and as the Government looks to implement its expected fuel stockholding policy.
This week, Marsden Point received the largest refined product ship to ever visit New Zealand. As the largest
fuels import terminal in the country, Channel Infrastructure is the only location in New Zealand capable of
receiving product tankers of this size, offering customers significant freight savings, and our significant tankage
capacity enables the storage and distribution of the fuels on board, to where customers need it most.
Conversations continue with customers on meeting their requirements to support the importation of BioFuels
ready for the incoming BioFuels Mandate policy, and the study with Fortescue Future Industries (FFI)
investigating the commercial feasibility of green hydrogen production is nearing completion.
Channel Infrastructure recently opened a Request for Information process to secure long-term low-cost
electricity supply, which will be an important opportunity to reduce electricity costs which make up one-quarter
of terminal operating costs. The Maranga Ra onsite solar project provides a unique opportunity to establish
renewable capacity, at significantly lower-cost than the market is currently delivering. With resource consents

channelnz.com
already in place at Marsden Point, and available transmission capacity, the project can be developed much
faster than most other solar projects being proposed.
Focus on diversifying funding sources and aligning cost of funds with an infrastructure business
Net debt increased to $215.3 million as the conversion activities were delivered in H1 2022, and debt is
expected to peak around the end of 2023. Existing debt facilities of $375 million are sufficient to fund the
remaining conversion costs, with c.$160 million of liquidity headroom available at 30 June and no significant
near-term maturities.
Channel Infrastructure is focused on diversifying its funding sources and improving funding competitiveness,
with the objective of lowering its cost of debt, consistent with an infrastructure business. In May, $100 million
of unsecured retail bonds were issued. Bank refinancing is well progressed to align with the infrastructure
business profile. The currently drawn bank debt is fixed, providing funding cost certainty and protection in the
increasing interest rate environment.
Performance in line with FY22 guidance and FY23 EBITDA tracking towards top end of guidance
range
Looking forward performance is tracking in line with FY22 guidance, Channel Infrastructure will continue to
benefit from the stable earnings that the import terminal operating model provides. Import terminal fees
commenced from 1 April and are expected to contribute c.$75 million for the 9-months of the terminal
operation. Total operating costs
3
are expected to be c.70 million for 2022, with $53 million spent to the end of
June (including $43 million on discontinued operations, and $10 million on continued operations). As the
conversion project progresses, we expect borrowings to increase, and average to c.$220 - $230million.
Looking beyond 2022, Channel Infrastructure is now expecting FY23 normalised EBITDA, from continuing
operations, to be at the top end of its guidance range of $76 - $84 million. Channel Infrastructure will benefit
from the Producer Price Index (PPI) indexation from 1 January 2023 as all fees earned under terminal services
agreements and private storage agreements (making up c.90% of total revenue) will be subject to indexation
based on 12 monthly inflation to 30 September 2022, pro-rated for nine-months. PPI for the nine months ended
30 June 2022 was 6.6%, which implies an additional c.$7 million of revenue. Electricity remains a key cost to
the business, and therefore, management remains focused on work to reduce electricity costs, to maximise
earnings from the business.

Strong cash flows increase confidence in return to dividends in March 2023
The Board confirms its dividend policy pay-out of 60-70% of Free Cash Flow (being adjusted net cash
generated from operations less maintenance capex)
4
which supports achieving target Net Debt of 3x to 4x
EBITDA, consistent with an investment grade rating. The first opportunity for a dividend will be in March 2023
after the FY22 financial results, provided net debt is below 4.5x EBITDA.
The Company expects net debt to be below 4x EBITDA at year end, and, indicatively, Free Cash Flow
(excluding growth capex and conversion costs) from the terminal in May and June of c.$9 million would equate
to a FY22 dividend of c.6cps at the mid-point of the dividend pay-out range.

Conference Call
Channel Infrastructure’s Chief Executive Officer, Naomi James, and Chief Financial Officer, Jarek Dobrowolski
will give a presentation on the company's financial and operational performance for H1 2022 via a webcast
commencing on Thursday 25 August 2022 at 11:30am NZT.
Participants need to pre-register for the conference by navigating to Link

channelnz.com
Footnotes
1. Operating cash flow from operations excluding one-off conversion costs.
2. Includes private storage of c.$4 million. Overall conversion project budget includes $200-220 million
of conversion costs and $45-50 million for private storage over approximately four years, as well as
$50-60 million of demolition costs longer-term.
3. Operating costs associated with continuing and discontinued operations, excluding one-off
conversion costs.
4. The Board reserves the right to adjust the payout ratio or expected timing for the recommencement
of dividends should the timing, costs or revenue associated with the conversion (including new
services such as Private Storage Services) or the import terminal business change. The dividend
policy will be subject to the Board’s due consideration of the Company’s medium term asset
investment programme; a sustainable financial structure for Channel Infrastructure, recognising the
targeted investment grade rating; and the risks from short and medium term economic and market
conditions and estimated financial performance. It is the intention of the Board to attach imputation
credits to dividends to the extent that they are available.

- ENDS -

Authorised by:
Chris Bougen
General Counsel and Company Secretary
Contact details
Investor Relations contact:
Anna Bonney
investorrelations@channelnz.com

Media contact:
Laura Malcolm
communications@channelnz.com
+64 21 02363 297

About Channel Infrastructure NZ
Channel Infrastructure is New Zealand’s leading fuel infrastructure company.
Channel Infrastructure owns critical infrastructure, supplying the Northland and Auckland markets, which make
up 40% of New Zealand’s liquid fuel demand and all of the jet fuel to Auckland International Airport. Utilising
the deep-water harbour and jetty infrastructure at Marsden Point, as well as 280-million litres of storage tanks
and the 170-kilometre pipeline from Marsden Point to Auckland, we receive, store, test and distribute fuel
owned by our customers. Channel Infrastructure’s wholly-owned subsidiary, Independent Petroleum
Laboratory Limited, provides fuel quality testing services at Marsden Point and around New Zealand.
Channel Infrastructure is well positioned to support New Zealand’s changing future fuel needs, with growth
opportunities at the Marsden Point site including additional fuel storage to support fuel security, renewable
electricity supply through the Maranga Ra solar project, and work underway with customers and partners on
biofuel and hydrogen opportunities.
For more information on Channel Infrastructure, please visit: www.channelnz.com