2024 ASM Presentation and Guidance Update

Channel Infrastructure NZ Limited
Annual Meeting of Shareholders
Tuesday 30 April 2024 at 2.00pm

Chairman James Miller’s address

Welcome to Channel Infrastructure’s 2024 Annual Shareholders’ Meeting. My name is
James Miller and I am the Chair of the Channel Infrastructure Board.

I am pleased to confirm that we have a quorum of shareholders and I declare the 2024
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 or online.

Moving on to today’s agenda.

Ahead of the formal resolutions, I will talk to:

• how our improved, and more sustainable business model has delivered for our
shareholders and enabled us to invest in becoming a world-class operator of our
assets for New Zealand, and

• I will also cover our new refreshed company strategy which is focused on world-class
operations, New Zealand's fuel security and resiliency, and the opportunities to come
from the decarbonisation of the production of aviation fuel.

Rob will then speak to the successful execution of our 2023 priorities, the critical role we play
in keeping New Zealand moving and the future of the business. He will also provide an
operational update on the first quarter of this year.

After that we will move onto voting and resolutions.

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.

I want to acknowledge that there are a number of people here in person today who are
passionate about certain issues. We welcome such engagement with the company, and
appreciate you being here today to advocate for your perspective. There will be ample
opportunity to have your questions addressed at the appropriate time, and so I would
appreciate everyone being respectful throughout the meeting.

Shareholders will have two opportunities to ask questions. The first opportunity will come
when we discuss the resolutions in the Notice of Meeting. The second will come at the end,
where shareholders will be welcome to ask general questions.

Following a discussion of General Business, which we anticipate concluding at around
3.30pm, we invite shareholders to join our Board and management for further discussion
over refreshments.

Joining us here in person today are my fellow Channel Infrastructure directors: Vanessa
Stoddart, Felicity Underhill, Andrew Brewer, Andrew Holmes, Anna Molloy and Paul
Zealand.

In the past few years, as our business has gone through its transition, your Board has also
been going through a planned period of succession and renewal. This has been done to
ensure we have the skills and experience at a governance level to help take your company
forward.

Late last year, we farewelled Lindis Jones from the Board. I want to pay tribute to Lindis’ six-
years of service to the company. He brought significant insights into the downstream fuels
industry in New Zealand.

I also want to acknowledge outgoing director, Lucy Nation, who departs the Board today. I
want to thank Lucy for her outstanding contribution over her 3-years of service to the Board.

Lucy is a world-class expert in mid-stream fuel supply chains, and in emerging future fuels,
such as SAF. We have all benefited from her wisdom, and we thank her for her generosity of
support for the Channel team. Lucy has been appointed bp’s Country Manager for Australia,
and we wish her well for this next step in her career.

At the same time, the Board has recently appointed Felicity Underhill and Andrew Brewer,
both of whom bring significant experience in areas of strategic importance to the company.

Felicity joined the Board in March, and brings world-class expertise in emerging future fuels
such as SAF. As we farewell Lucy, we are delighted to gain the benefit of Felicity’s
extensive industry experience.

Andrew was appointed to the Board in December last year, and is highly experienced in
world-class fuel infrastructure operations and leadership.

Shareholders may not be aware, but Andrew holds a deep connection to our
company. Andrew was our Chief Operating Officer during 2020. I think it’s fair to say that
he was instrumental in developing the company’s immediate response to the Covid-19
challenge. His work ensured we could continue to safely operate our high-hazard site in the
face of an overnight collapse in fuel demand in New Zealand.

Drawing on his extensive experience within the industry, Andrew led the development of a
unique approach involving a cyclical mode of refinery operation. This operating strategy
gave us time to work through the impacts of the nationwide lock down.

Refinery equipment is not designed to be regularly cycled on and off, and to do so safely is
an extremely complex task.

Faced with the unprecedented situation, we had to respond quickly to reduce fuel
production.

Andrew’s calm leadership, and deep fuel sector and refinery experience meant we were able
to develop this unique approach. In simple terms this allowed us to alternate the refinery
operating mode in order to reduce fuel production. Andrew’s approach ensured the safety of
our people, whilst maintaining the safety and integrity of the refinery plant and equipment.

We are delighted to have Andrew’s expertise back within the company, and now on the
Board.

Both Andrew and Felicity will be subject to re-election by Shareholders later in the meeting.

To ensure an effective Board there should be a balance of independence, skills, knowledge,
experience and perspectives. These are set out in Channel’s Board skills matrix aligned with
our company strategy.

Following this planned Board transition we have:

• A board size of 7, which we believe is the right size for our company;
• 6 out of 7 directors are now deemed independent, up from 4 out of 7 in 2019;
• an excellent balance of skills and experience providing sufficient oversight across the
company’s activities; and
• an impressive combined total of more than 100 years of experience in the refining,
fuel terminals, oil and gas, and fuel supply chain sectors.

We have the right Board to support our management team to drive our strategy forward.

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

The transition to an import terminal model has improved total shareholder returns. If we look
back to the period immediately prior to the strategic review, when we were the New Zealand
Refining Company, the business was under significant pressure.

The cost of maintaining our assets had increased as we were trying to operate a sub-scale
facility. This was relative to newer, and larger off-shore refineries able to operate more
efficiently. At the same time refining margins continued to fluctuate and our overall returns
continued to decline.

In response to this challenging environment, and with the additional challenges presented by
the Covid-19 operating environment, the Board needed to find a new way forward for the
company. As many of you will know, we took 18 months to work through our options, and
we consulted widely, publicly, and in detail, with all those who would be impacted by any
change.

Of course that included you, our shareholders, but also the Government, our local
community and iwi partners, our customers and suppliers, and our people. This process
was lengthy. And it was public. At times we were accused of taking too long. But we
provided updates at every step of the way.

I make no apology for taking the time to make sure we got this significant decision right. We
were committed to ensuring that we could deliver a change that would be just and fair for
those most affected, in particular our people.

In the end, your Board presented shareholders with a comprehensive proposal that it
believed was in the best interests of the company. This proposal to close the refinery and
convert to an import terminal was independently assessed as fair to shareholders. We didn’t
reach this significant decision without looking at this matter from every angle. This included
taking account of the Government policy settings of the day, particularly the signal that New
Zealand needed to move past fossil fuels. We considered every possible option before us.

The proposed way forward was overwhelmingly approved by shareholders, with 99% of the
votes cast in favour. This was a response to the difficult operating environment we were
faced with, and the recognition that the future of our refining business was unsustainable.

Since the shareholder vote in 2021, and the successful execution and delivery of the plan we
promised you, the compound annual Total Shareholder Return (that is, returns from
dividends and share price movements) has been 28.9%, compared with a compound annual
Total Shareholder Return of minus 6.8% over the 10 years prior to the vote, when we
operated as a refinery.

We are now positioned with steadily increasing and stable cash flows. These cashflows have
not only allowed significant investment in our import terminal facilities but also allowed us to
return to dividends in 2022, ahead of our originally signalled plan.

During 2023 we continued to perform strongly. The Company declared ordinary dividends of
10.5 cents per share and with confidence in our future cash flows, and with the conversion
project being substantially complete, the Board declared a special dividend of 1.5 cents per
share.

With total dividends of 12 cents per share for 2023, we delivered a dividend yield of 8.3%.

Our dividend policy is to pay out 60-70% of normalised free cash flow. The Board is
committed to delivering stable ordinary dividends over time, while maintaining credit metrics
consistent with a shadow investment grade credit rating of BBB+.

We have also had a strong start to 2024 driven by strong jet fuel demand, which Rob will talk
about shortly.

In light of this the Board has taken the view to lift 2024 EBITDA guidance to between $92
and $96 million. This is up from $91 to $95 million.

Shareholders, Channel Infrastructure has been set up to deliver greater resiliency for New
Zealand.

Our new business model, with stable cash flows, has enabled us to bring online over 280
million litres of fuel storage capacity. We have invested over $100 million to deliver world-
class terminal operations and improving the resilience of our assets. This includes the
conversion of 100 million litres of additional storage since conversion, and investing in
improving bunds and firefighting systems.

It is imperative that New Zealand's import supply chain is secure and reliable.

Here you can see just some of the figures which demonstrate the impact that our business
has had on supporting our customers to increase the resilience of their supply chains. This
is good for New Zealand.

We welcome recent Government announcements about investigating fuel security in New
Zealand, and we are already working with the Government in support of this. Given the
strategic importance of fuels to keeping New Zealand moving, it is right that the Government
assesses its nationwide policy in this space.

And, because we don’t own the fuel that is imported through Marsden Point, we continue to
look for opportunities to assist our customers with their supply chain resilience. This includes
opportunities that would allow us to repurpose the approximately 400 million litres of
unutilised storage capacity we have at Marsden Point.

Having substantially completed the import terminal conversion and private storage projects
last year, the Board felt that 2023 was the right time to relook at our strategy.

The strategy refresh was driven by the need to ensure we could deliver the vision that your
Board has for the future of this company.

We are clear. Our vision is to be the partner of choice so that we can play a broader role in
New Zealand’s energy supply chain. We must become a world-class operator – this is
critical to proving our credentials and opening the door to further new and exciting
opportunities. And, secondly, we have developed a sophisticated understanding of
expected future fuel demand, including renewable fuel. It is our intention for Channel to play
its part in supporting this transition.

With that I‘ll hand over to Rob to talk about how we will deliver on this strategy, as well as
reflect on the past year.

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Channel Infrastructure NZ Limited
Annual Meeting of Shareholders
Tuesday 30 April 2024 at 2.00pm

CEO Rob Buchanan’s address

Thanks James, and welcome everyone.

It’s been a big year, and I am delighted to be joining you here today.

Joining me from our management team is Alexa Preston, our Chief Financial Officer, Jack
Stewart, our GM Operations, Peter van Cingel, our Business Development Manager, and our
General Counsel and Company Secretary, Chris Bougen, who you met at the start of the
meeting.

Before I begin, I want to take a moment to reiterate to shareholders what James has said to
you today. Here on this stage, we have over 100 years’ experience at all levels of refinery
operations. It is no exaggeration to say that the group of people who make up our Board are
the very people you would choose to run a refinery business, if you were starting again from
scratch.

Refining was our core business. I know I speak for the staff past and present, as well as
past board members, when I say that we were disappointed for our people and our
community that we couldn’t make the refinery business model work.

I watched the lengthy consultation process play out, and I knew many of those who were
involved. I know I speak for them when I say that everyone worked incredibly hard to try and
find a way to make that business model stack up. This decision, which I know the team
agonized over, given its significance, was simply a reflection of the lack of a commercially
viable future as a refinery. It would have been irresponsible for our company to remain as it
was.

So, with that said, and with the support of 99% of our shareholders who voted to close down
the refinery, over the past two years, our focus has been on delivering on the very clear
instruction we received from our shareholders, to convert our operations and establish our
company on a more sustainable footing. This has enabled us in turn to invest in projects
which are not only good for the company, but good for New Zealand – such as increased
fuel storage, and safer, more innovative processes and equipment. I’ll have a bit more to
say on this shortly.

I am proud of all that the team achieved in 2023. It was a year of execution... and of
delivery.

Shareholders will be familiar with the company’s 2023 priorities, and I am pleased to report
that we achieved them all.

This is due to the hard work and dedication of the entire Channel Infrastructure team, and I
really want to pay tribute to their efforts.

With our company-wide focus on safe, reliable, and cost-efficient operations, we now have
our long-term asset management plan in place. In 2023, we also conducted a review of site
safety and introduced a new safety culture programme.

The refinery decommissioning is now complete, and we came in within budget and on time.
Our wider site conversion project is now substantially complete as well.

Work with our customers on fuel resilience continued, and I am proud of our efforts, with the
increase in fuel storage tanks brought online last year. In support of the Government’s wider
ambitions for a secure diesel supply chain, we submitted to the Government’s onshore
diesel storage tender and we continue to work with customers in respect of other supply
chain enhancement and storage opportunities.

We made good progress on our growth opportunities, which I’ll discuss in more detail shortly,
and James has already spoken to our shareholder returns, and the new business model
which has enabled our investment in resiliency.

2023 was our first full financial year of operation as an import terminal, with FY22 only
including 9 months of import terminal operations.

We delivered a strong set of results at the top end of our guidance range:

• Revenue of $130.7 million with terminal fees exceeding take-or-pay levels, and
private storage revenue increasing.

• EBITDA of $87.2 million and normalised free cash flow of $61.8 million represent a
Free Cash Flow yield of 11.3% and an EBITDA to Free Cash Flow conversion of
71%, and

• a total 2023 dividend of 12 cents per share, including a 1.5 cent per share special
dividend, which represents a dividend yield of 8.3%

The 2023 special dividend reflected:

• That the conversion project is now substantially complete, and we are confident that
we can manage the rest of the terminal upgrades within our existing conversion
budget.

• And, the Board’s confidence in our company’s outlook, including a free cash flow
yield that is substantially higher than our dividend yield and a determination that we
will be disciplined about the use of shareholders’ capital.

• Lastly, we needed to make sure that we balanced the quantum of the special
dividend against a developing pipeline of growth projects which have strong returns,
and our desire to invest in supply chain resilience in New Zealand.

This strong financial position has enabled us to undertake important work to bring our
terminal up to a world-class standard, which I will discuss in more detail shortly.

Looking at all the work that has been undertaken on the permanent refinery
decommissioning, I can report that the team at Marsden Point has completed this project
safely, and to plan. We have spent $169 million on this important work to date, to deliver the
clear instruction of our shareholders to safely close down the refinery, and convert our
operations.

At the same time, we’ve increased the resilience of New Zealand’s supply chain by
completing the commissioning of additional storage tanks.

The conversion project was a multi-year infrastructure project with an initial budget set back
in 2021, and we anticipate its completion within the upper end of the original budget. This

was achieved despite a pandemic, supply and labour shortages, major weather events and a
high inflation environment. This is a significant achievement that we are very proud of and
underlines our capabilities delivering major and complex infrastructure projects, and as a
critical infrastructure provider.

The remaining terminal upgrade and private storage conversion is also largely complete,
with the firefighting upgrades expected to complete this year and the bund upgrade work
expected to continue until 2027.

Alongside this, the refinery workforce transition is complete with 100% of employees who left
the business and wanted a new role elsewhere, being supported into new opportunities,
jobs, or retraining.

In September, we successfully completed the commissioning of an additional 45 million litres
of private jet fuel storage at Marsden Point, which more than doubled our on-site jet fuel
storage. This significantly adds to New Zealand’s overall jet fuel resilience at a time when we
are seeing air travel demand – and therefore jet fuel demand – return sharply.

In our first full financial year of operations as New Zealand’s largest fuel import terminal, we
successfully received and discharged 70 import shipments and delivered 3.4 billion litres of
fuel to Auckland and Northland.

This was ahead of the fuel demand outlook that we provided to shareholders at the beginning
of 2023, driven by stable diesel and petrol volumes and a continuing strong recovery in jet fuel
demand. We are now seeing fuel volumes overall approaching pre-covid levels, with aviation
demand reaching 96% of pre-covid demand.

Two-weeks ago, we released our Q1 operating update, which confirms terminal and pipeline
throughput remains ahead of the Envisory fuel demand outlook, with over 920 million litres of
fuel delivered, on 17 import shipments. The increased throughput continues to be driven by
a strong aviation demand recovery, with jet fuel throughput up around 38% on the previous
corresponding period.

Supporting a resilient supply chain today, and tomorrow, is critical to all that we do at
Channel, and a core part of our work is making sure we are equipped and ready to do that
as the fuel demand profile changes.

This is a graphic that shareholders will be familiar with – it is the past fuel throughput at
Marsden Point indicated in grey, and Envisory’s demand outlook into the future.

Today, I want to draw shareholders’ attention to the back-end of this graphic, where we see
what is expected to happen to the mix of fuels consumed in New Zealand out to 2050.

We expect diesel demand, which is in green, to remain strong over the medium term, given
how critical this is to New Zealand’s heavy industry, and that diesel is harder to abate. Petrol
however, which is the light blue, clearly tails off to very low future volumes.

While there has been commentary recently that the adoption of electric vehicles is slowing in
New Zealand, the trajectory over the longer term remains the same, and we still expect the
petrol market to be the fastest to transition to alternative fuels.

By 2050, we expect that petrol will make up only around 1% of our total throughput.

As many shareholders will know, a typical oil refinery is not able to produce only one type of
fuel. It is an all-or-nothing facility, and that means that even if, by 2050, we only had a

market to make jet fuel as a refinery, without substantial further investment in new
processing capabilities, you would still be forced to produce petrol and diesel as well.

Ultimately, if we were refining fuels at Marsden Point in 2050, our customers would then be
faced with having to sell the surplus petrol and diesel back on the global marketplace at a
significant discount, and at a time when it’s expected that there would be an oversupply of
petrol in the world.

The final point I would make on this, is that when our facility was operating as a refinery, we
were never configured to produce product solely from oil extracted here in New Zealand, and
there was never adequate domestic crude sources to meet the country’s fuel demand.

So, the country was always reliant on importing crude to fuel the refinery, creating a single
point of failure risk. Today, our customers import a range of refined product from a range of
refineries around the world, providing more flexible options for sourcing product to meet the
country’s changing fuel demand wherever it is in New Zealand.

Shareholders, this brings me to the opportunities for our business in the aviation sector.

While land transport is already well on the path towards decarbonisation, the aviation sector
still has a long way to go to transition to lower-carbon fuel solutions, and this presents a
really exciting growth opportunity for us.

Liquid Sustainable Aviation Fuel is emerging as the most technically viable way to bring
down aviation emissions for medium- to long-haul travel. You may have seen the comments
from Air New Zealand Chair, Dame Therese Walsh, just two weeks ago – calling on
companies to go faster, and further, to increase the global supply of SAF to support the
decarbonisation of Aviation. Others around the world are saying the same thing.

We have a partnership with Fortescue underway, to investigate the feasibility of creating and
refining sustainable aviation fuel, or SAF, at Marsden Point.

This mock-up of Marsden Point shows you just how well suited we are to support a facility
like this in New Zealand – with our surplus land, that is already consented for heavy
industrial uses, the industrial electricity and gas connections we have, surplus tanks to store
product, and the critical pipeline to Auckland and on to the airport.

While we are in the early stages of assessing the feasibility of this project, it is exciting that
we are at the forefront of an emerging global industry. This could be transformational for our
business, our local community would get the benefit of investment and new jobs, and New
Zealand would become one of the first movers in transitioning its aviation sector to a lower
carbon future.

As James noted, supporting long-term asset resilience and positioning Channel as a partner
of choice for fuel infrastructure is our strategic ambition as a company. Delivering world-
class operations is critical to unlocking this growth strategy.

World-class recognises that our customers operate globally and interact with terminal
businesses all over the world, so they know what good looks like.

In under two years of operation as an import terminal, and due to the stability of our new
business model, we have already made good progress towards achieving a world-class
operating standard, lifting our customer focus and focusing on our operational discipline. We
have clear objectives across our infrastructure, systems, processes, and capabilities to drive
us further towards the standard of our international peers.

As a high-hazard site, we are committed to ensuring that we get ‘everyone safely home,
every day’. Operating a safe workplace is foundational to our ambition to be a world-class
operator of our infrastructure.

We are really proud of our efforts at site to deliver on the clear instructions of our
shareholders, to convert our operations to this new model, and invest in facilities that are
adding to New Zealand’s overall supply chain resilience.

Rather than tell you about them, I’d like to pause now and show you a quick video from site,
which demonstrates the world-class facilities that we have been investing in at Marsden
Point.

I think we can all agree that the contrast between the old facilities, and those that have been
upgraded is immense. The part that stands out most to me when reflecting on all the work
that has been undertaken at site recently, is the bund upgrades and firefighting systems,
which draw on the very latest technology to not only keep our people safe, but to make sure
we can respond quickly and efficiently to any emergency situation. This investment in our
site is important as we strive to reach world-class, and we could not have made the
important investments if it weren’t for our new business model.

As we prove our credentials as a world-class operator of terminals and fuel infrastructure,
and with our low cost of capital positioning us as a strong infrastructure partner, we are
willing and able to invest in projects beyond our site, where there are parties looking for a
partner, and where we can provide a valuable contribution in support of fuels infrastructure
for New Zealand.

The New Zealand energy markets are undergoing a transition, and to the extent that other
parties may be looking for a partner to invest in their facilities, or new partners may be
seeking support in standing up additional energy or fuel storage capacity, Channel is open to
owning and operating other terminal assets outside Marsden Point.

The greatest growth opportunities as we know, lie in aviation fuels, but the forecast decline in
road transport fuels could also present an opportunity for us to consolidate terminal
infrastructure around NZ, which could benefit our customers through the energy transition.

These are opportunities that we are open to, but that we expect to be playing out over a
longer time frame. We have a proven track record as a critical infrastructure provider, and
we are committed to investing in New Zealand fuel resilience.

So, shareholders, I want to acknowledge that there are people here today who would like to
see an oil refinery reopened at our site. We assessed every possible way forward to make
that business model work. We have a depth of experience that is unrivalled in this space,
and these are the people that you would want advising you on matters such as this. We are
incredibly lucky to have this Board instead focused on delivering our vision for the company
that aligns with where New Zealand is going, and is as committed as I am to making sure we
deliver supply chain resilience for our customers, and our country.

And with that, I’ll hand back to James for the resolutions and voting. I look forward to
answering shareholder questions on our company strategy later in the meeting.

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channelnz.com

NZX RELEASE
30 April 2024

2024 Annual Shareholders Meeting Presentation and Guidance update
The 2023 Annual Shareholders' Meeting of Channel Infrastructure NZ Limited (CHI) is being held today at
2pm. Accompanying this announcement are copies of the meeting presentation and speeches by James
Miller (Board Chair) and Rob Buchanan (CEO) to be delivered at the meeting.
Today James Miller (Board Chair) will discuss how Channel Infrastructure’s improved, and more
sustainable business model has delivered for shareholders and enabled investment in becoming a world-
class operator of our assets for New Zealand. He will also discuss the new refreshed company strategy
which is focused on world-class operations, New Zealand's fuel security and resiliency, and the
opportunities to come from the decarbonisation of aviation fuel. Rob Buchanan (CEO) will speak to the
successful execution of the 2023 priorities and the critical role we play in keeping New Zealand moving
and the future of the business.

Channel has had a strong start to the year driven by higher than expected jet fuel demand. In light of this
the Board has today lifted the guidance range provided in February. EBITDA for 2024 is now expected to
be between $92 million and $96 million (up from $91 million to $95 million).

- ENDS -

Authorised by
Chris Bougen
General Counsel and Company Secretary
email: Chris.Bougen@channelnz.com

Contact details
Investor Relations contact:
Anna Bonney
Email: investorrelations@channelnz.com

Media contact
Laura Malcolm
email: communications@channelnz.com

About Channel Infrastructure
Channel Infrastructure’s vision is to be a world-class infrastructure company, delivering resilient infrastructure
solutions to help meet changing fuel and energy needs.
Channel Infrastructure’s assets are a critical part of the Northland and Auckland fuel supply chain, supporting the
delivery of around 40% of New Zealand’s transport fuel demand and all of the jet fuel to the 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 will seek to support New Zealand’s decarbonisation ambitions, by utilising our strategically-
located assets and our expertise in supply chain infrastructure. The Company remains focused on its future growth

channelnz.com
opportunities at the Marsden Point site and beyond, including additional fuel storage to support fuel security and
studies underway with partners on hydrogen and sustainable aviation fuel opportunities.
For more information on Channel Infrastructure, please visit: www.channelnz.com