POT Annual Meeting 2024: Chair & Chief Executive's Address

PORT OF TAURANGA ANNUAL MEETING 2024
1pm, Friday 25 October 2024
Chair – Julia Hoare
I’ll now go over the highlights and challenges of the past year for the Port of Tauranga Group.
The past 18 months have been challenging for many New Zealand companies. I’m pleased to
report – as one of the country’s more resilient businesses – Port of Tauranga has weathered
the storm well.
Despite ongoing significant domestic and international supply chain challenges, total cargo
volumes decreased just 4.2% for the year, to 23.6 million tonnes.
We saw a big improvement in the second half of the financial year compared to the first.
Container numbers grew 13.7% and total trade grew 3.3% between the first half and the
second half.
While ongoing inflationary pressures, low consumer confidence and increased rail costs put
pressure on our import volumes over the year, we saw increases in annual log and kiwifruit
export volumes.
Leonard will go into more detail on the performance of individual cargoes - but overall, I think
we ended up in relatively good shape considering what was happening across the economy,
here and overseas.
Underlying Group profit was $102.7 million, a 12.8% decrease on the previous record year in
FY2023. The reported Group Net Profit After Tax of $90.8 million included a one-off deferred
tax expense of $11.9 million due to a change in tax legislation.
Total revenue decreased 0.8% to $417.4 million.
A strong focus on costs saw operating expenses limited to a 3.8% increase, to $218.6 million.
Our subsidiary and associate companies were severely impacted by reduced cargo volumes.
Collectively, their earnings decreased 29.3% compared with the previous year. The reduced

profitability at Northport, PrimePort Timaru, Timaru Container Terminal and Coda Group was
offset by strong performances from Quality Marshalling and PortConnect.
The Board has declared a final dividend of 8.7 cents per share to bring the total dividend for
the 2024 financial year to 14.7 cents per share.
I’m very pleased to report a significant improvement in health and safety. Our Total
Recordable Injury Frequency Rate for employees and contractors improved by 36.2% for the
year.
As the country’s busiest port, we continue to invest in capacity, resilience and efficiency for the
New Zealand supply chain. An intense focus on customer service has seen improved
efficiency, despite the ongoing challenge of vessels arriving off schedule – which Leonard will
talk about shortly. Our team and service partners have done an outstanding job in ensuring
Port of Tauranga remains New Zealand’s most efficient port.
Port productivity is a national issue and is of great concern to importers and exporters seeking
efficient access to and from international markets.
It is now one year since we opened the Ruakura Inland Port in Hamilton, directly connecting
the Waikato region by rail to our facilities in Auckland and Tauranga.
Ruakura Inland Port is a 50-year, 50/50 joint venture with Tainui Group Holdings. We’ve made
this investment because inland ports play a crucial role in our vision for a more integrated and
efficient Upper North Island supply chain.
Ruakura is one development in more than a decade of investments that we have made, to
ensure we can facilitate visits from bigger container ships, thereby ensuring New Zealand
remains globally competitive.
As part of our big ship strategy, we have been pursuing plans to convert existing cargo storage
land into new berths on both sides of the harbour – developments collectively known as the
Stella Passage project.
As you know, for several years we have been trying to obtain a resource consent for this
development, which has been included in the Regional Coastal Environmental Plan for
decades.
An Environment Court hearing on the application was held almost 20 months ago. In
December, the Court issued an interim decision granting resource consent for the most
urgent part of the project – a 285-metre extension at the container terminal.
The decision was subject to further matters being addressed to the satisfaction of the court,
including the provision of further environmental evidence and engagement with iwi and hapū
parties.

Our progress was reported to the Court at the end of June and the end of September.
The berth project is critical to the New Zealand economy. Without it, importers and exporters
will face capacity constraints within a few years. We have weekly services currently on our
waiting list for berthing windows.
The project will also help build New Zealand’s resilience, especially in the face of increasing
climate-related impacts. We cannot meet our trade needs, or decarbonisation aspirations, as a
nation without investment in good infrastructure.
To that end, Port of Tauranga has successfully applied for the entirety of the Stella Passage
project to be included in the Government’s fast track consenting legislation.
We look forward to seeing the detail of the process and timeframes of the fast-track option.
While we are constructing the new berth at the container terminal, we plan to also introduce
electric automated stacking cranes to the adjacent container storage areas. The automation is
planned to both accelerate our decarbonisation progress and increase our capacity within the
current footprint.
Port of Tauranga is strongly focused on decarbonisation as part of our commitment to long-
term sustainability. In the past few years, we have made significant progress in improving fuel
efficiency and reducing waste.
We are also committed to preserving our social licence with the Tauranga community through
continuous improvement in our environmental performance and support of community
services.
Leonard will expand on these areas in his presentation.
We have welcomed two new Directors to the Board - one with a familiar face! Sir Robert
McLeod has re-joined the Board after retiring last October as one of the two directors
appointed by Quayside Holdings, our cornerstone shareholder. He returns as an independent
director and the new Chair of our Audit Committee, and brings with him deep governance
experience, outstanding financial skills, and extensive iwi connections. We are very fortunate
to have a Director of his calibre.
Sir Rob replaces Alastair Lawrence, who retired in August after nine years’ service as a Director
and two years as Chair of the Audit Committee.
Alastair is an astute Director and committee Chair with a wealth of commercial knowledge,
and he retired with our gratitude and thanks.
Joining us today for his first Annual Meeting is Fraser Whineray, who replaced Sir Rob as one of
Quayside’s two nominated Directors. He holds governance roles with Waste Management and

AgriZero in addition to Quayside and is the Executive Chair of Jarden Group. Fraser was
previously CEO of Mercury and COO of Fonterra.
Also up for reelection today is Alison Andrew, who joined the Board in 2018. She has held a
number of senior executive roles, most recently as Chief Executive of Transpower New
Zealand.
I will also be standing for reelection.
Finally, I would like to welcome our new Future Director, Scott Campbell, attending his first
meeting today. The Future Directors programme is an Institute of Directors initiative to
develop the next generation of directors and we are pleased to be supporting efforts to grow
governance talent in the Bay of Plenty. We’re delighted that Scott is joining us for the next 12
months, as our first Future Director.
I’d now like to welcome Leonard to share an update on the company’s trade and operational
performance over the past year, as well as some insights on the first quarter of the 2025
financial year.

---

PORT OF TAURANGA ANNUAL MEETING 2024
1pm, Friday 25 October 2024
Chief Executive – Leonard Sampson
Thank you, Julia, and kia ora koutou.
As Julia described, the second half of our year saw a marked turnaround, with cargo volumes
bouncing back, despite the economic downturn reducing demand for imports, along with
challenging export commodity prices.
Despite these fluctuations in cargo volumes, and the fact that only 30% of container vessels
are arriving on schedule --- our continuous focus on operational performance has seen
positive improvements in service delivery to our customers.
Productivity improved with - container moves per crane / per hour - increasing by 7.9% to just
over 30 moves per hour. This compares with the national average of 25, and the average of
the top five Australian ports of 24 moves per hour.
Our team has done an outstanding job in improving productivity, without any compromise to
safety.
Our total recordable injury frequency rate, for employees and contractors, significantly
dropped 36.2% to 13.2 per million hours worked. Pleasingly our lead indicators also improved,
with safety observations up 9.3% and near hit reporting up 7.1%.
This reflects an increased focus on proactive risk assessment and management, at all levels
across the organisation.
We have introduced a new safety recognition programme, where our people can nominate
their colleagues for a TeamSafe award, which recognises behaviour demonstrating our value
of having a “safety always” mindset.
As New Zealand’s largest port, we continue to take a leadership role in health and safety
across the port industry. Our General Manager for Health and Safety, Pat Kirk, is chair of the
Port Industry Association and also participates in the Port Sector - Health and Safety
Leadership Group.

Looking now at the detailed cargo trends over the past year.
Imports were the most impacted by the economic downturn, with lower domestic
consumption reducing imports 13.4% to 7.8 million tonnes.
Exports overall remained steady, increasing 0.9% to 15.8 million tonnes.
Container volumes decreased 2.5% to 1.15 million TEU.
With regard to our export commodities, log exports increased 7.5% in volume to reach the
second highest year on record at 6.7 million tonnes. This was due to around a million tonnes
related to Cyclone Gabrielle, with forests in the Central North Island damaged in the severe
weather event and exported earlier than planned.
Direct dairy exports decreased 3.4% in volume with softer production in the North Island and
challenging commodity prices. This also affected dairy sector inputs, with both fertiliser and
stock feed imports decreasing 16.7% and 17.2% respectively.
There were several changes to coastal shipping services throughout the year which resulted in
transhipment volume decreasing 12.1%.
Kiwifruit bounced back following a challenging 2023 season with volumes for the financial year
(which spans part of two growing seasons) seeing an 8.5% increase in volume for the 12 months
to June.
Total ship visits were 1,427, five fewer than the previous year. 109 of those were cruise ships
over the summer season, which was close to the record of 116 visits prior to the Covid
pandemic.
The first cruise ship of the current season arrived on October the 18
th
, and we are expecting
more than 90 visits through to April. We will welcome a number of first-time callers, including
the Disney Wonder vessel calling in December of this year.
We remain New Zealand’s largest port, handling 32% of New Zealand’s total imports and
exports - by both volume and value.
Importantly however as an export trading nation we facilitate just under half of all of New
Zealand’s total export trade by value at 47%.
A year on from its official opening, we are pleased with the progress of the Ruakura Inland
Port, our joint venture in Hamilton with Tainui Group Holdings. Trains running to and from
Port of Tauranga and MetroPort in Auckland now call daily at the Ruakura inland port.

Earthworks are under way on stage 2, creating an empty container depot adjacent to the
inland port facility. This is an exciting development in the growth of the inland port, which is on
track to handle around 25,000 TEU in 2025.
Back here in Tauranga – As Julia has described, we are currently assessing the newly
announced fast track legislation as an option to speed up the Stella Passage consenting
process.
The Stella Passage port development is both regionally and nationally important and is
particularly urgent at the Sulphur Point container terminal as we reach the current limits of
our existing berth capacity.
While we wait for the necessary consents, we are continuing to pursue plans to introduce a
level of automation into the container terminal following the berth extension. Despite this
project being delayed, we have developed the necessary electrical infrastructure and are close
to vendor selection.
Our automation involves fully-electric, rail-mounted gantry cranes that will work together with
hybrid or electric straddles running between the container yard and ship-side.
Similar automation models have been used for over a decade at some of the world’s most
efficient container terminals.
We have recently taken delivery of a new container crane, which (weather permitting) will be
assembled and operational by the end of the year. Last year we dismantled the oldest crane in
the fleet, and we are currently dismantling its sister crane as both have reached the end of
their working life.
As part of our ongoing investment in decarbonisation, we have added an additional four
hybrid straddle carriers. The hybrid straddles are around 25% more fuel efficient than the
current diesel electric models in our fleet.
Port of Tauranga continues to take its environmental responsibilities very seriously, with a
particular focus on air and water quality in and around the port.
We have undertaken a range of initiatives to reduce airborne dust, resulting in a dramatic
improvement in air quality since intense monitoring began in 2019.
Vacuum sweeper trucks operate 24/7 with bark from export logs recycled into garden
products.
Concrete barriers keep traffic on frequently swept roadways, and we continue to extend our
wind fence network, which encourages airborne dust to settle, where it can then be swept up.
We enforce strict wind limits for handling of dusty cargoes on our bulk wharves.

All of this has seen a 25% reduction in fine dust measured at the Totara and Waimarie St
intersection between 2017 and 2023.
We also have an extensive programme monitoring water quality, which regularly tests for
suspended solids, heavy metal toxicants and other contaminants.
Whilst the results are currently well within compliance of resource consent limits, we’re not
content to just comply. In this regard, we will install our first above ground stormwater
treatment system at the Mount Maunganui wharves, in the oldest part of the port.
We have just published our first Climate-related Disclosures report under the new, mandatory
reporting regime for listed companies. The report reviews our risk management systems,
discusses the specific climate-related risks and opportunities, and outlines our current
greenhouse gas emissions.
Our total Scope 1 and 2 emissions – (those we directly control) – reduced 3.9% over the year and
when we take into account Scope 3 emissions (those that we do not directly control) – from our
chartered MetroPort trains and waste to landfill, we achieved a 13.5% decrease.
Whilst total emissions reduction is a priority, we also focus on our emissions intensity, or
greenhouse gas emissions per cargo tonne.
We will be doing a significant amount of work this year in further developing our metrics and
targets to better define the Scope 3 emissions boundaries, which we will report on into the
future.
Our pursuit of the “big ships” strategy has a positive impact on the national emissions profile.
Larger, more efficient vessels can produce significantly fewer greenhouse gas emissions per
container.
Over the past year we were pleased to announce some new community partnerships.
The largest two of which, are our sponsorship of the Mount Maunganui Lifeguard Service, as
well as our funding towards the Living Seawall that has been built on strand waterfront with
the aim to attract more marine life.
We have also funded a natural playground on the new Marine Parade Coastal Pathway, along
with a new viewing platform on the north side of the Mauao walking track.
Now looking to the year ahead ...the current economic conditions and operating environment
are both complex and challenging, but our scale and diversity continues to hold us in good
stead.
We continue to see the impacts of softer commodity prices, as well as the escalating
geopolitical instability, trade tensions and ongoing conflicts in the Red Sea.

With the exception of kiwifruit, a number of key export commodities are forecasted to be
relatively flat in volume over the next 5 years, after a decade of pre covid growth.
However, the forecasted population increases in the Upper North Island over the next two
decades, represent a significant opportunity for growth in imported cargoes.
To support this growth in population, we must have all three ports –Tauranga, Northport and
Auckland – operating at maximum efficiency, supported by a network of rail-enabled inland
ports to create a resilient sustainable upper North Island supply chain.
Let’s now turn to the first quarter’s results and the outlook for 2025.
Total trade volumes for the quarter were 6.2 million tonnes up 7.6% on the same quarter
last year
Total container volumes were 293,000 TEU up 16% on the same quarter last year.
Based on the first quarter’s results and not withstanding any significant changes to trading
conditions, we expect full-year underlying earnings to be in the range of $110 to $120 million.
We remain confident in our ability to deliver sustainable financial results over the long-term
due to our people, operational resilience, and diversity of both cargoes and income streams.
It just remains for me to thank our team, our customers, business partners and service
providers, along with our community for your ongoing support.
Finally, thank you also to you, our shareholders - for your continued trust and support in our
business.
Together we are connecting New Zealand and the world.
Ngā mihi nui kia koutou katoa. Thank you.

---

Port of Tauranga reports increase in cargo volumes in first
quarter
Port of Tauranga Limited (NZX:POT) today reported increased cargo
volumes in the first quarter of the 2025 financial year.
In the three months to 30 September, total trade increased 7.6% in
volume compared to the same period last year, to 6.2 million tonnes.
Container volumes increased 17.0% to 292,860 TEUs
1
.
Port of Tauranga Chief Executive, Leonard Sampson, told the company’s
Annual Meeting of Shareholders today that the company continued to
demonstrate resilience through its diversity of cargo and income streams.
“After a sharp drop in cargo volumes this time last year, we’re pleased to
see some recovery,” he said.
Import volumes reflected slightly stronger domestic consumption,
increasing 6.8% in volume to 2.0 million tonnes for the quarter. Exports
increased 8.1% in volume to 4.2 million tonnes.
“We are cautiously optimistic that the second half of the financial year will
see slow improvement in cargo volumes, after a particularly challenging
2024 financial year,” said Mr Sampson. “However, global disruption, low
international commodity prices and the nascent domestic economic
recovery are expected to continue to impact the Port for many months to
come.”
Based on the first quarter’s results, and notwithstanding any significant
changes to market conditions, Port of Tauranga expects full year
underlying Net Profit After Tax to be in the range of $110 million to $120
million
2
.
For further details, please contact:
Rochelle Lockley, GM Communications, Port of Tauranga Limited, ph. 021 865 884
1
TEUs = twenty foot equivalent units, a standard measure of shipping containers
2
Underlying NPAT is a non-GAAP (Generally Accepted Accounting Principles) measure and differs from
reported NZ IFRS profit for the year. Underlying NPAT excludes items considered to be one-off and not
related to core business such as revaluations, impairments and gains or losses from the sale of major assets.
Media Release
25 OCTOBER 2024

---

Annual Meeting of Shareholders
25 October 2024

Julia Hoare
Chair

• Leeder
Sir Robert McLeod
• BrBrodieodi
e Stevens
Board of Directors
Alison Andrew
Dean Bracewell
Fraser Whineray
Julia Hoare
Doug Leeder
Brodie Stevens
Scott Campbell
(Future Director)

Seniormanagementteam
Leonard Sampson
Chief Executive
Simon Kebbell
Chief Financial Officer
Rochelle Lockley
GM Communications
Melanie Dyer
GM Corporate Services
Pat Kirk
GM Health and Safety
Dan Kneebone
GM Property and Infrastructure
Blair Hamill
GM Commercial

For the year ended 30 June 2024
Total trade down 4.2% (- 8.5% half year )
25.7
25.6
24.7
23.6
16.3
15.9
15.7
15.8
9.4
9.7
9
7.8
0
5
10
15
20
25
30
FY21FY22FY23FY24
tonnes (millions)
Total trade
for the year ended June 2024
OverallExport tonnesImport tonnes

For the year ended 30 June 2024
A much improved second half performance
42.380
49.903
4.861
5.574
$0.000
$10.000
$20.000
$30.000
$40.000
$50.000
$60.000
1/2 FY242/2 FY24
millions (NZD)
Group underlying earnings up 17.4% to $55.477 million in the
second half
ParentSubsidiaries and associates
1/2 FY242/2 FY24Movement
Trade volumes tonnes
11,634,279 12,014,535 3.3%
Total containers (TEUs)
536,928610,42213.7%
Vessel Visits
67475311.7%

For the year ended 30 June 2024
Group underlying earnings down 12.8%
92.338
102.375
111.317
117.792
102.718
$0
$20
$40
$60
$80
$100
$120
$140
FY20FY21FY22FY23FY24
millions (NZD)
Group underlying earnings

$12,728
$17,840
$14,952
$13,347
$9,431
$0
$5,000
$10,000
$15,000
$20,000
FY20FY21FY22FY23FY24
000s
For the year ended 30 June 2024
Subsidiaries and associates net profit after tax down
29.3%

For the year ended 30 June 2024
Ordinary dividends 14.7 cents per share
12.4
13.5
14.7
15.6
14.7
0
2
4
6
8
10
12
14
16
FY20FY21FY22FY23FY24
CPS

Stella Passage Project -
Proposed berth extensions
at Sulphur Point and Mount
Maunganui wharves

CGI of future berth extension and automation,
Sulphur Point

CGI of automated stacking
crane and truck exchange

Leonard Sampson
Chief Executive

Source: FIGS, Ministry of Transport
New Zealand port productivity
12.0
17.0
22.0
27.0
32.0
37.0
42.0
2018 Q12018 Q22018 Q32018 Q42019 Q12019 Q22019 Q32019 Q42020 Q12020 Q22020 Q32020 Q42021 Q12021 Q22021 Q32021 Q42022 Q12022 Q22022 Q32022 Q42023 Q12023 Q22023 Q32023 Q42024 Q12024 Q2
Crane Rate
New Zealand ports - crane rate 2018 - 2024
National average: 25.7, down 0.5% on previous year
Port of Tauranga FY24 average: 30.1, up 8% PCP
AucklandLytteltonNapierOtagoTaurangaWellington
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
2018 Q12018 Q22018 Q32018 Q42019 Q12019 Q22019 Q32019 Q42020 Q12020 Q22020 Q32020 Q42021 Q12021 Q22021 Q32021 Q42022 Q12022 Q22022 Q32022 Q42023 Q12023 Q22023 Q32023 Q42024 Q12024 Q2
Vessel Rate
New Zealand ports - vessel rate 2018 - 2024
AucklandLytteltonNapierOtagoTaurangaWellington

For the year ended 30 June 2024
Total trade down 4.2% (- 8.5% half year )
25.7
25.6
24.7
23.6
16.3
15.9
15.7
15.8
9.4
9.7
9
7.8
0
5
10
15
20
25
30
FY21FY22FY23FY24
tonnes (millions)
Total trade
for the year ended June 2024
OverallExport tonnesImport tonnes

For the year ended 30 June 2024
Total container volumes down 2.5% (-15% at half year )
1,251,741
1,200,831
1,241,061
1,177,350
1,147,350
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
FY20FY21FY22FY23FY24
TEU's
Container volumes down 2.5%
Year ended June 2024

For the year ended 30 June 2024
Log exports up 7.5%
7,062,855
5,543,540
6,338,716
6,058,019
6,215,623
6,681,899
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
FY19FY20FY21FY22FY23FY24
JASm
3
Log exports
For the year ended June 2024

For the year ended 30 June 2024
Total direct dairy volume down 3.4%
2.69
2.56
2.42
2.50
2.20
0.00
0.50
1.00
1.50
2.00
2.50
3.00
FY20FY21FY22FY23FY24
dairy tonnes (millions)
Direct dairy exports
For the year ended June 2024

For the year ended 30 June 2024
Direct kiwifruit volume up 8.5%
517
575
626
492
534
0
100
200
300
400
500
600
700
FY20FY21FY22FY23FY24
tonnes (000's)
Direct kiwifruit exports
For the year ended June 2024

Cruise season total vessel visits to Mount Maunganui
Cruise vessels
87
80
116
107
00
90
109
91
0
20
40
60
80
100
120
140
FY17FY18FY19FY20FY21FY22FY23FY2424/25 (F)
cruise vessel calls
For the year ended 30 June 2024

Connecting New Zealand and the World
New Zealand’s largest port
38% of New Zealand exports (tonnes)
22% of New Zealand imports (tonnes)
32% of New Zealand’s total trade
Source: StatsNZ: Overseas Cargo Statistics
12 months to June 2024
47% of New Zealand exports by value
17% of New Zealand imports by value
32% New Zealand’s total trade by value
32%
10%
10%
9%
8%
7%
6%
5%
4%
4%
3%
2%
1%
0
5
10
15
20
25
Tonnes (millions)
Total New Zealand tonnes by port FY2024
Import
Export
32%
29%
11%
7%
7%
4%
3%
3%
1%
1%
1%
0%
0%
0
10
20
30
40
50
NZD (Bilions)
Total New Zealand sea port cargo value FY2024
Import
Export

Containerdepotunderconstruction
Ruakura Inland Port

CGI of Stella Passage Project zones

CGI of future automated stacking cranes and hybrid
straddle

34

Air quality monitoring
17
3
1
0
0
2
4
6
8
10
12
14
16
18
2019-202020-212021-222022-23
Number of PM
10
exceedances
immediately adjacent to the Port

Climate-related DisclosuresReport 2024

For year ended June 2024
Total greenhouse gas emissions down 13.5%
40,973
44,223
43,156
40,021
34,621
25,000
30,000
35,000
40,000
45,000
50,000
FY20FY21FY22FY23FY24
Tonnes of CO2e
Total greenhouse gas emissions
For the year ended 30 June 2024
1.65
1.68
1.65
1.58
1.44
1.00
1.20
1.40
1.60
1.80
2.00
FY20FY21FY22FY23FY24
Kilograms CO2e per tonne of cargo
Kilograms of CO2e per tonne of cargo
For the year ended 30 June 2024
21% reduction since base year (2018)Decrease of 9.1% from previous year
Certified under Toitu carbonreduce program, scope 1, 2 and some 3 emissions.

•Total trade up 7.6% to 6.2 million tonnes
•Total container volumes up 17.0% to
292,860 TEU.
First quarter performance
For three months ended September 2024

•FY2025 underlying earnings expected in the
range of $110 million to $120 million
•Port of Tauranga remains well placed for
cargo volume recovery with improved
productivity and plans to grow capacity.
Outlook 2025

Thank you

IntegratedAnnualReport2024

Annual Meeting of Shareholders
25 October 2024

Resolution 1
Re-election of Ms Julia Hoare

Resolution 2
Re-election of Ms Alison Andrew

Resolution 3
Election of Mr Fraser Whineray

Resolution 4
Election of Sir Robert McLeod

Resolution 5
Remuneration of Auditor

Annual Meeting of Shareholders
25 October 2024