2023 ASM Presentation Materials

Annual Shareholders
Meeting 2023
27 April 2023

Housekeeping
Chris Bougen

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Chairman’s address
James Miller

5
Your Board -Strongand capable with the rightskill set
Anna Molloy
Independent Director
Andrew Holmes
Independent Director
James Miller
Chairman, Independent Director
Lucy Nation
Director
Vanessa Stoddart
Independent Director
Paul Zealand
Independent Director
Lindis Jones
Director

Agenda
•Chairman’s address
•CEO’s address
•Resolutions and voting
•General business

All 2022 key priorities delivered
Safe, reliable, and compliant refinery and terminal operations
On time and on budget delivery of terminal conversion project
Retain and build organisation capability through the transition
Actively manage the transition to CHI with investors and debt providers
Progress opportunities for growth, including repurposing of Marsden Point

New business model has delivered shareholder returns
$17m
From nine months
of terminal operations
First profit in
threeyears
Recommenced dividendsearlier than expected
Share price outperformed
[1]Based on a dividend declared and annualised, and share price as at31 December 2022 of $1.43 per share
[2]Average of Formosa Petrochemical Corporation, Idemitsu Kosan Co Ltd, SK Innovation Co and S-Oil Corporation
Final Dividend
5
CPSFully imputed
Special Dividend
2
CPSFully imputed
Dividend Yield
[1]
6.5%
Share price
52%
Compared to the NZX50G index
down 12%and previous refinery
companypeers
[2]
average TSR
down10%

Significant number of improvements to governance and leadership
•Corporate Governance Review undertaken in early 2022 to
align Board and governance processes with new business,
operations and strategy
•First and now second Sustainability Report released
by Channel Infrastructure, aligned with TCFD reporting
recommendations
•Short, medium and long-term climate targets set
and reported against
•Revised Health, Safety, Environment andOperations
(HSEO) board sub-committee introduced in March 2023

New CEO to deliver to company's strategic plan
•Board has approved a 3-year Strategic Plan ahead of planned
CEO transition
•CEO transition began in November 2022 following the successful
transition to Channel Infrastructure
•Rob Buchanan became CEO on 6 March 2023 and is working
hard with the Channel team to deliver on our Company
strategy.Rob’sleadership style and deep experience in energy
and the infrastructuresectormakes him an asset to our
business.

CEO’s address
Rob Buchanan

Strong safety and environmental record continues through transition
Strong safety
performancemaintained
Reduction in legacy
contamination
Significantly reduced
environmental impact
Supporting our people
through change
Zero Tier 1 or Tier 2 process
safetyincidents in 2022
throughrefinery closure
anddecommissioning
30%
reduction in legacy hydrocarbon
contamination over the past
6-years
98%
reduction in
Scope 1&2 emissions
(>1MT CO
2
p.a.)
97%
of those who left in 2022
found new opportunities within 6
months
Sustainability targets remain a priority
Just
transition
At least 90% of employees seeking new
employment find new roles, or have
been retrained, within 6 months
Net Zero
Net zero scope 1 and 2
emissions by 2030
Customer
scope 3
emissions
Our infrastructure utilised to support the
decarbonisation of transport sector and
facilitate scope 3 emissions reduction by 2030

Import terminal delivers improved financial profile
Conversion project
significantly de-risked
[1] Conversion project budget (opexand capex) of $200 to $220 million.
$163M
74% of conversion budget
[1]
spent orcommitted/
contracted to end Q1 2023
Strong cashflow and
balance sheet
Leverage
3.4
xEBITDA
97%
Debt fixed
or hedged
$1.39
Per share
up 5%
Sustainable financial performance
achieved during FY22
Revenue
94%
Underpinned by
fixed or
‘take or pay’ fees
88%
Subject to
indexation
EBITDA
$57M
EBITDA MARGIN
65%
Net Assets

Criteria for investment:
•above WACC return on
investment
•customer contracts that
provide revenue certainty
Target leverage of 3 to 4
times EBITDA
Shadow BBB+ rating
c.$300m target net debt
based on current
asset/earnings base
Dividend Policy of 60-70% of
normalisedFree Cash Flow
[1]
2023 guidance implies
indicative dividend
range of 9 to 11 cps,
with targeted 40:60 split
Long-term contracts
delivering strong
cash flow
Returns to shareholders
Deleveraging
Focused growth
Clear capital allocation framework to drive future returns for shareholders
[1] NormalisedFree Cash Flow is calculated as cash flow from operations less maintenance capex (excluding conversioncosts and growth capex).The dividend policy is 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 areavailable.

Stronger demand expected for Channel’s infrastructure over the long term
•Long-term utilisationof Channel's
infrastructure underpinned by aviation
fuel demand
•Increasing volumes of renewable fuels
expected over time
•Combined with our renewed financial
profile, this expected demand provides a
strong platform for us to consider new
growth opportunities for the company
* All details and assumptions of this outlook supplied by Hale and Twomey can be found in Channel’s Sustainability report, pages34-36.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2017201820192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050
HistoricalOutlook
Marsden Point Throughput (Million Litres)
H&T - JetH&T - diesel, incl. biofuelsH&T - PetrolIndicative renewables portion

•NZ Government fuel resilience measures
announced:
•Government procurement of 70ML strategic
diesel reserve
•Minimum onshore fuel stockholding
obligation for fuel wholesalers
•Channel well placed to support our customers
and the Government with implementation of NZ’s
fuel security policy.
Government fuel security measures to support supply chain resilience

New business model and demand outlook positions us well for growth
29
•Largest fuel terminal in NZ with scale benefits
•Sustainable financial profile
•Highly strategic assets adjacent to a natural
deep-water port and pipeline to Auckland
•Significant unutilisedtank capacity (over 400ML)
and 177ha of land available at Marsden Point
•Strong, capable team, with proven execution capability
•Opportunity to leverage our financial profile and
capability to provide terminal services beyond
Marsden Point
•Fuel supply chain able to decarboniseover time
through renewable fuels
•Now considering how we can play a part in
NZ’s broader decarbonization efforts
c.40%
Tank
capacity
c.35%
Jetty
capacity
c.75%
Pipeline
capacity
Current Terminal Capacity Utilisation

Our long-term growth opportunities will support NZ’s decarbonisation
FUTURE
Jet fuel
Diesel
Petrol
Sustainable aviation fuel
Renewable gasoline
Renewable diesel
Hydrogen
Renewable electricity
Electricity Storage
Firming
TODAY
Jet fuel
Diesel
Petrol
Marine fuel
Expanding the
Marsden Point terminal
•NZ Government
70mL domestic
diesel reserve
•Minimum domestic
stockholding obligation
•Biofuel imports
•Other products
Long-term
renewable
electricity supply
Growth in other
terminal
infrastructure
beyond
Marsden Point
Sustainable
aviation fuel
Hydrogen

1
9
2023 guidance upgraded in November 2022
5
EBITDA
$82-86M
Refer to FY22 NZX announcement, investor presentation, and Annual Report for full details, available at www.channelnz.com
Indicative Normalised
Free Cash Flow
$56-60M
Indicative dividend range
9-11 cps

2
0
2023 priorities
Safe, reliable, and cost-efficient terminal operation and maintenance
On-budget and on-time completion of the remaining conversion project works
Work with Customers and Government to improve supply chain resilience
Deliver on near-term growth opportunities (strategic diesel reserve, DSO, electricity)
Deliver increasing returns to shareholders through dividends in an inflationary environment

Resolutions and Voting
James Miller

Resolution 1:
That Directors be authorised to fix the fees and
expenses of EY as auditors to the Company for the year
ending 31 December 2023.

Resolution 2:
That the total amount of Directors’ fees that may be payable
annually to all Directors in aggregate be increased with effect from
the commencement of the current financial year by 3% from
$900,000 to $927,000, such sum to be divided among the Directors
as the Directors deem appropriate

2
4
Proposing a fee pool increase for Director Fees
•Director fee pool limit last increased in 2018
•No change sought througha significant period of
business transformation and workload
•Following transition to the new operating model,
a review of director fees has been undertaken
•Proposing a 3% fee pool increase from $900,000
to $927,000 to allow for:
oadditional remuneration ofa reconstituted
Health, Safety, Environment and Operations
(HSEO) board sub-committee
omaintain level of headroom in pool to pay
additionalfees as appropriate tomanage
anyboard succession changes and pay
directors for ad hoc committees for special
projects
•Theproposed increase is modest relative to
inflation of c.7%
0
225,000
450,000
675,000
900,000
1,125,000
201720182019202020212022
Total Director Fees
Total Fees PaidTotal Fees Pool

Resolution 2:
That the total amount of Directors’ fees that may be payable annually to all
Directors in aggregate be increased with effect from the commencement
of the current financial year by 3% from $900,000 to $927,000, such sum to
be divided among the Directors as the Directors deem appropriate

General
Business

This concludes the 2023 Annual
Shareholders’ Meeting.
Thank you for attending.

---

Channel Infrastructure NZ Limited
Annual Meeting of Shareholders
Thursday 27th April 2023 at 2.00pm
Chairman James Miller’s address
Welcome ladies and gentlemen to Channel Infrastructure’s Annual Shareholders Meeting. My
name is James Miller, I am the Chairman of the Board. I am pleased to confirm that we have
a quorum of shareholders and therefore I declare the 2023 Annual Shareholders’ Meeting
open.

On behalf of your directors, the CEO and all of our people at Channel Infrastructure, I extend
a warm welcome to you either here with us at SkyCity or online. We do value the opportunity
for the Board and Management to meet shareholders in person so I'm delighted to be moving
back to a hybrid format for today’s meeting.

Joining us here in person today are my fellow Channel Infrastructure directors: Anna Molloy,
Andrew Holmes, Lucy Nation, Vanessa Stoddart, and Paul Zealand. Lindis Jones is joining
us online, as he needed to be in Australia for operational reasons.

As you will remember from last year’s Annual Meeting, with the transition to Channel
Infrastructure and an import terminal business, we recognised the need for a different skill set
on the board going forward, and so webegan a board refresh.

At the same time, we saw our former Chair, Simon Allen announce his intention to step down,
and he subsequently finished as Channel Chair on 1 July. I want to take a moment to
acknowledge Simon for his 8-years of service leading the company through a significant period
of change for the business. At last year’s ASM, we also saw John Bourke step down, and we
welcomed Anna Molloy and Andy Holmes to our Board.

I’m confident we have a strong and capable Board who have the right skill set, to support our
management team to drive our strategy forward – providing the infrastructure to support New
Zealand's decarbonisation and lowering our cost of capital. We will continue our focus on
planned Board succession and renewal, to maintain a strong independent Board with the right
skills to take the business into its exciting future.

Today’s resolutions include no director’s nominations as there is no retirement by rotation this
year.

We are also joined by our new CEO, Rob Buchanan, and members of our Management Team,
as well as representatives of our external auditors (Ernst & Young), legal advisors
(MinterEllisonRuddWatts) and share registrar (Computershare ).

Moving on to today’s agenda. Ahead of the formal resolutions, I will talk to our 2022
achievements, our focus on delivering a sustainable business model and on driving future
returns for you and importantly our CEO transition. I will then welcome our new CEO Rob
Buchanan who will talk to the 2022 operating performance, focus for this year, and future
growth opportunities. Online voting is now open and shareholders attending online may cast
their vote at any time, until I close the voting later in the meeting.

Two years ago, you voted overwhelmingly in favour of a transition to an import terminal, with
a commitment from us that this would be the best way to deliver sustainable returns. 2022 has

provided you the proof that this was the right decision, and I am proud that the team have
delivered all that was promised to you.

Channel Infrastructure has had an incredible year with the transformation of the business, the
financial results we have delivered and the sustainable business model we now have in
place. We have delivered against all of the 2022 priorities.
We safely completed the shut-down of the refinery operations and transitioned to an import
terminal on 1 April last year.

The conversion project – which includes the decommissioning of the refinery, as well as the
transitioning of our workforce continues to track to plan and to budget and is now significantly
de-risked. A large proportion of the work is complete and the budget is locked in. The
commissioning of contracted new private storage is also progressing well, with c.45 million
litres of additional private storage capacity due to be commissioned in the third quarter of this
year.

We have successfully supported our workforce through significant change, with the extensive
programme of workforce transition support, and I’m proud to say that 97 per cent of those who
left the business in 2022 have been supported into their next opportunity. Alongside this work
we have been successful in retaining key talent and also developing talent through a
significant period of change.

Our refinancing programme was successfully completed. The refinancing of our bank debt
increased the lender group from 2 to 5 banks and, together with the successful $100 million
dollar bond issue, this shows a strong support from the capital markets for our new business
model. This has diversified our funding sources, extended tenor and lowers our cost of capital
to align with that of an infrastructure business. And our new business model is already
delivering growth with additional private storage revenue contracted.

We have delivered the first profit in over three years and this, along with strong cash flow, has
meant a return to dividends for shareholders within one year of conversion (earlier than the 1-
2 years we had anticipated at the time of the shareholder vote).

By now our shareholders would have received a fully imputed dividend of 7 cents per share –
comprising a 5 cent ordinary dividend and a 2 cent special dividend. This represented an
annualised dividend yield of some 6.5% for the first nine months of terminal operations.

Our improved financial and risk profile has been reflected in our share price - in a year when
the market declined 12% and our previous refinery peers delivered a total shareholder return
of negative 10%, it was extremely pleasing that our new business model and delivery of
strategic initiatives resulted in a 52% share price increase in 2022, following the 71% increase
we experienced in 2021 and saw us return to the NZX50 in March this year.

Over the past year, Channel Infrastructure has made a number of changes to its Board and
governance processes to align with its new business, operations and strategy. We have also
committed to climate disclosure and reporting, and made significant improvements in our
climate change governance through 2022.

We chose to make our first act as Channel Infrastructure the publication of the company’s first
Sustainability Report, which was aligned with the recommendations of the Taskforce on
Climate-related Financial Disclosures and was published more than a year ahead of
mandatory reporting . We have an on-going commitment to climate action, and to ensure a
long-term sustainable future for our business.

A few weeks ago we published an updated Governance Statement, which reflects a revised
Health, Safety, Environment and Operations board sub-committee. This new structure allows
our directors with specialist expertise in these areas to increase their time and focus on the
continued improvement of health, safety and environmental risks at Channel.

In November last year we announced a change in CEO. As with all of the change we have
navigated over recent years, this too was carefully planned for, with the Board approving a 3-
year Business Plan ahead of Naomi’s departure, and Naomi and Rob working together for 2
months, to ensure a smooth and seamless handover.

Naomi James, our previous CEO, finished with Channel at the end of March. Naomi's
leadership during the most difficult time in the company’s history was nothing short of first
class. I join the entire Board in thanking Naomi. Naomi joined us at a time of immense
uncertainty for the business and leaves us with a long-term sustainable business model in
place, a range of exciting growth opportunities ahead, and a talented and committed team at
Marsden Point.

Rob joined the team at the end of January, and took over as CEO from the 6
th
of March this
year. Rob has deep experience in the energy and infrastructure sector and, along with the
team at Marsden Point, will continue to execute, and deliver on, Channel Infrastructure’s
strategy and plan to drive the business forward.

---

Channel Infrastructure NZ Limited
Annual Meeting of Shareholders
Thursday 27th April 2023 at 2.00pm
CEO Rob Buchanan’s address
Welcome everyone. I am delighted to be joining Channel at this important time and it’s great
to be here for my first ASM as the new CEO. Also joining us here today is Jarek Dobrowolski
our CFO, Jack Stewart, our GM Operations, Caz Jackson, our Chief People Officer, Peter Van
Cingel, Business Development Manager, and Phil Jones, GM – Projects, and you have
already been introduced to Chris Bougen, our General Counsel and Company
Secretary. Steve Levell, who heads up our IPL team is not with us today, but that rounds out
our Management team.

Since joining at the end of January 2023, I have been impressed with the clear vision and the
highly capable team, who are working hard to deliver on our plans for the future. The business
is in great shape, and it’s a real tribute to our former CEO, Naomi James, and the wider team
at Channel Infrastructure, who have worked hard to transform the company during an
extremely challenging period of time.

Let me start my address by talking about the year that was, and then jump straight into
opportunities for your company.

As a high-hazard business, Channel has always had a firm focus on health, safety, protecting
the environment, and of course supporting our people through the change that has impacted
them. This was even more important through the period of the refinery closure and intensive
decommissioning that was undertaken in the first half of 2022.

The team have done a superb job of delivering on an extremely complex transition - safely
and with great care for the protection of the environment around our site. With zero process
safety incidents throughout this time of intensive and hazardous work, it is a pleasing result
and goes to show the emphasis on safety that is a feature of Marsden Point.

Alongside the work that remains underway to decommission the refinery plant in a way that
minimises our impact on the environment, a huge focus for the business in recent years, has
been the remediation of known contamination on our site. It is pleasing that due to the
investment the business has made, we are seeing a notable decrease in the legacy
contamination of the groundwater beneath our site – the contamination plume has shrunk by
30 per cent over the past 6-years.

As part of our recently renewed resource consent, we will continue to operate our network of
groundwater remediation wells as long as required to remediate this historic contamination.

It is also a source of great pride for the business that throughout the transition, and with the
large step-down in staff numbers, 97% of those who left the business in 2022 were actively
supported into new roles, training, or opportunities within 6-months – exceeding our company
target of 90%.

As you will be familiar with Channel has three sustainability targets around supporting
employees seeking new employment, net zero scope 1& 2 emissions by 2030 and supporting
the decarbonisation of the wider transport sector. More detail around these can me found in
our sustainability report. These targets remain a priority for the business going forward.

Finally, I would note for shareholders that our assets came through Cyclone Gabrielle well,
with limited impacts to our site and the pipeline. This reflects the work done over the past few
years, and the efforts of the Marsden Point team, who prepared well ahead and managed
continuous operations throughout.

With the new business model comes a significantly improved financial profile, which we see
very clearly with the 2022 Financial results.

Our long-term customer contracts with our three customers, bp, Mobil and Z Energy, each
with an initial 10-year term, include take or pay commitments to support the debt funding of
conversion costs and provide revenue security. All fees are indexed to PPI which provides
us additional protection in the current inflationary environment and earnings upside with our
strong operating margins. The strength of these contracts was demonstrated in 2022, with
94% of our revenue underpinned by take or pay or fixed revenue commitments, and 88% of
our revenue indexed.

These contracts, together with the extensive debt hedging we have in place to manage interest
costs, deliver a high degree of certainty in our cash flows. These strong cash flows funded a
significant portion of conversion costs in 2022, with leverage at 3.4 times at the end of 2022.

In terms of the conversion project, we remain on track and to budget with the decommissioning
and workforce transition largely complete and the focus now on completing terminal upgrade
projects and embedding our new terminal systems and processes. As at the end of March
2023, we had spent or committed some 74% of the conversion budget – the project is now
significantly de-risked.

As a result, we have projected stable earnings, strong cash flows and a strong balance sheet.
With that we have now returned to dividends.

It was important to us that we are clear with investors how we intend to grow shareholder
value, which is why, last year, we released our capital allocation framework.

With the stability that comes from our long-term contracts we now return to dividends with a
dividend policy to pay out 60-70% of normalized free cash flow which leaves the other 30-40%
of cash flow available to allocate to deleveraging and growth. We continue to target net debt
to EBITDA of 3-4 times, consistent with a shadow investment grade BBB+ rating.

And finally, we have a number of growth opportunities available to us with the new business
model. Our key investment criteria will be an above WACC return on investment and customer
contracts that provide a good level of revenue certainty, as you have already seen us do with
the private storage growth contracted to date.

And if we get this right, that in turn generates more cash flow to fund dividends and growth,
driving long-term shareholder value.

In February this year, when we released our results, we also released a new long-term fuels
demand outlook completed by industry experts, Hale & Twomey.

We covered this in great detail in our results presentation and the Annual and Sustainability
reports which Shareholders will have access to. However, I will just spend a moment
summarizing the key findings and how they relate to Channel’s future.

Hale & Twomey’s outlook shows that petrol demand is peaking and then declining as
previously expected, as the light vehicle fleet electrifies. Diesel demand is expected to stay

stronger, and transition much more gradually particularly for agriculture, industry and heavy
transport.

The point I wanted to draw to shareholders’ attention today, and which is also included here
on page 15 of our presentation, shows the expected growth in demand for jet fuel. Auckland
International Airport expect the recovery in passenger numbers to reach pre-COVID levels by
2025, and Hale & Twomey have said they expect jet fuel demand to have recovered by
2026. As we saw in the five years pre-COVID, jet fuel demand increased at a rate above
passenger growth due to the increase in long and ultra-long haul flights as well as premium
travel. Hale & Twomey expect these trends to continue to drive growing jet fuel demand.

Given the shift in the fuel mix in New Zealand, and our supply route for jet fuel to Auckland
International Airport, this new long term product demand outlook shows us that jet fuel will
underpin the long-term utilisation of Channel’s assets. Combined with our renewed financial
profile, this provides a strong platform for us to consider new growth opportunities.

The final point I’d like to draw your attention to is that, over time, the proportion of renewable
fuel throughput at our facilities is expected to increase. This is based on the increasing use
of biodiesel in industry, as well as the gradual uptake and transition to sustainable aviation
fuel. These drop in or second-generation fuels are able to utilise existing facilities including
our jetty, tanks, and pipeline to Auckland. This shift to increasing renewables has already
started, with New Zealand’s first shipment of sustainable aviation fuel passing through our
facilities in 2022.

The decision to shift our operations to an import terminal model was made following an
extensive and public 18-month strategic review, involving significant consultation across
Government, customers, local community as well as approval from you, our shareholders. As
part of this process the Government assessed New Zealand’s fuel security and resilience and
is considering measures to ensure a minimum level of fuel stocks are held in country to ensure
a resilient fuel supply chain.

New Zealand has always relied on imports for its fuel, but with the conversion from refinery to
import terminal last year, crude oil imports have been replaced by imported refined fuel
products which now come from a range of refineries across the Asia-Pacific region. At the
same time, and as a result of this transition, there are new and different resilience risks that
come from an import supply chain.

With that in mind, last year the New Zealand Government released its fuel security policy,
which has two parts. The first is Government procurement of 70ML strategic diesel reserve,
and the second is a new minimum onshore fuel stockholding obligation for fuel
wholesalers. Both of these represent opportunities for Channel’s business and allow us to
continue playing an important role in supporting our customers and the Government in respect
of New Zealand’s fuel security.

With the business now reset, our return to profit and dividends, and having passed the
milestone of one year of successfully operating as an import terminal on 1 April, our focus is
on pursuing the exciting future growth opportunities we have in front of us, which build on the
capabilities of our team and the assets we have at Marsden Point.

Channel Infrastructure owns highly strategic jetty, storage tanks, and pipeline infrastructure,
with significant opportunity for greater utilisation of our assets – we have over 400ML of
unutilised tank capacity and over 177ha of land.

We have world class people, who over the past two years have proven they can execute highly
complex projects with precision and safety at the fore. And we are constantly innovating by
adapting the latest in technical and innovation from abroad.

I’d like to show shareholders an exciting example of this, via a short time lapse video of a
recent conversion of one of our crude tanks to jet fuel storage. This project involved the
replacement of a floating roof with a geodesic roof, manufactured offshore and constructed
inside the tank at Marsden Point in a matter of weeks. This is a great example of the significant
repurposing potential of our facilities, in this case to support our customers in providing greater
NZ fuel security and resilience.

I wanted to give shareholders a picture of where our company could be positioned in the
future. Today, we are a critical part of New Zealand’s fuels supply chain, and we are taking
responsibility for our role in supporting New Zealand’s decarbonisation. That includes utilising
our assets to support our customers to bring down their scope three emissions with the shift
to lower carbon fuel options, and longer term, ensuring we are supporting the delivery of new
liquid fuel options that will help New Zealand overcome some of the decarbonisation
challenges that we face as a country.

We will also continue to support our customers and the Government with their requirements
for increased fuel storage and resiliency through the significant capacity we have at the
Marsden Point site.

Beyond this, our strategic position in the liquid fuels industry, strong financial profile and reset
cost of capital for the first time provides an opportunity for our company to play a much greater
role in providing liquid fuels infrastructure across New Zealand, leveraging our strong
operating capability as a terminal business. This includes for the first time considering
stepping out beyond Marsden Point where opportunities for growth present themselves.
Our longer-term growth initiatives are focused around further leveraging our highly strategic
site at Marsden Point to support New Zealand’s energy transition and decarbonisation. The
Fortescue Future Industries’ study, which is focused on the opportunity to convert renewable
electricity to hydrogen and eSAF at Marsden Point, is an example of one of these initiatives.
These longer-term opportunities are not just positive for our business, but they also offer us
the opportunity to play an important role in decarbonisation: from sustainable aviation fuel and
hydrogen to renewable electricity, electricity storage or firming.

Our long-term growth opportunities are good for business, and good for New Zealand.

In November of last year, following the announcement of the producer price index (which is
an inflation measure our customer contracts are linked to) and successful additional terminal
storage we contracted, we upgraded our 2023 financial guidance. We now expect EBITDA of
some $82 - $86 million. Working this through, what it means for you is an indicative dividend
range for next year of 9 to 11 cents per share.

We released our Q1 conversion update a few weeks ago, which confirmed the permanent
decommissioning of refinery process plant is now in the final stages and will be completed in
Q2 2023, and the terminal upgrade works and private storage tank conversion works are
ongoing and progressing well with over half of contracted private storage capacity now
commissioned and a further c.45 million litres of jet private storage is expected to be
commissioned during Q3 of 2023. As part of this update we also confirmed that the updated
and lower transmission costs from 1 April have now been agreed and are in line with
assumptions factored into our 2023 cost guidance.

Turning to our priorities for this year.

It is my immediate priority to continue delivering on the strategy set up for the company, which
is of course to grow shareholder value through continuing optimisation of our business, while
delivering on our aspiration to be a world class operator of our import terminal assets.

Our priorities this year will be to continue to be New Zealand’s leading fuel infrastructure
company, by ensuring we deliver safe, reliable and cost-efficient terminal operations and the
on budget and on time completion of remaining conversion project works.

We're continuing to work hard with our customers to optimise the fuels supply chain, and
building greater supply chain resilience in the system, which is good for New Zealand. We
will also work hard to deliver on the near-term growth opportunities that we've talked about
here today, and ultimately, to deliver increasing returns to shareholders through dividends in
an inflationary environment.

I believe the opportunities for Channel infrastructure to leverage its unique and highly strategic
asset base to facilitate New Zealand’s energy transition are significant, and I’m really excited
about the future of our company.