New Zealand Refining : Investor Presentation

INVESTOR

PRESENTATION

21 AUGUST 2019

REFINING NZ

ANALYST PRESENTATION

DISCLAIMER

• This presentation contains forward looking statements concerning the financial condition, results and operations of The New Zealand Refining Company Limited (hereafter referred to as "Refining NZ").
• Forward looking statements are subject to the risks and uncertainties associated with the refining environment, including price and foreign currency fluctuations, regulatory changes, environmental factors, production results, demand for Refining NZ'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 Refining NZ to market risk and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. Forward looking statements are identified by the use of terms 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 Refining NZ'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 Refining
  NZ's securities, and has been prepared without taking into account the 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 other professional adviser if necessary.
• In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement. Refining NZ does not guarantee future performance and past performance information is for illustrative purposes only. To the maximum extent permitted by law, the directors of Refining NZ,
  Refining NZ and any of its related bodies corporate and affiliates, and their offices, 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), Refining NZ 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 of the 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 standardised meaning 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, 21 August 2019.

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AGENDA

PERFORMANCE

LOOKING AHEAD

STRATEGIC INITIATIVES

STRATEGIC DIRECTION

AGENDA
PERFORMANCE	Excellent safety and operational performance
LOOKING AHEAD	Refinery margins weaker than expected

STRATEGIC INITIATIVES	Strong contribution from distribution segment
STRATEGIC DIRECTION	Positive free cash flow resulting in 2 cps dividend

HIGHLIGHTS

Gross Refining Margin

USD 5.31 PER

BARREL

5.65 per barrel in HY18

		Excellent operational and safety performance				REFINING NZ
				ANALYST PRESENTATION
							HY 18	HY 19
			Personal LTIF [1,2]			0.47	0.14
			Process	Tier 1 (>US$25k) [2]		2	0
EBITDA	Tier 2 (>US$2.5k)	[2]		2	0
NZD54M	Releases outside consent			1	1
NZD50m in HY18	Throughput		Mbbl	17.9	21.2
			RAP Throughput		Mbbl	10.4	10.3
			Operational availability		%	83.3	99.9

$

Free Cash Flow [3]

NZD18.2M

NZD(75)m in HY18

TRCF [1,2]

0.27

0.75 in HY18

Singapore complex margin[4]	US$/bbl	3.23	0.20
EBITDA [2]	NZ$M	50.0	54.1
NPAT	NZ$M	(2.8)	(3.5)
Exchange rate	US$/NZ$	0.73	0.67

1. Per 200,000 hours, rolling 12-month
2. For a full definition please refer to Glossary in Appendix I
   See our Interim Financial Statements for further detail, available at http://www.refiningnz.com/investor-centre.aspx
3. Free cash flow calculated as operating cash flow minus actual capital expenditures
4. For a definition, please see slide 8.

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