Channel Infrastructure NZ : Investor Presentation (pdf - 2 MB)

Financial Results

For the six months ended 30 June 2022

25 August 2022

Important Information

• This presentation contains forward looking statements concerning the financial condition, results and operations of Channel Infrastructure NZ Limited
  (hereafter referred to as "CHI").
• Forward looking statements are subject to the risks and uncertainties associated with the fuels supply environment, including price and foreign currency fluctuations, regulatory changes, environmental factors, production results, demand for CHI's products or services and other conditions. Forward looking statements are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.
• Forward looking statements include among other things, statements concerning the potential exposure of CHI to market risk and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. Forward looking statements are identified by the use 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 CHI's financial statements released with this presentation. This presentation is for information purposes only and does not constitute legal, financial, tax, financial product advice or investment advice or a recommendation to acquire CHI's securities and has been prepared without taking into 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. CHI does not guarantee future performance and past performance information is for illustrative purposes only. To the maximum extent permitted by law, the directors of CHI, CHI and any of its related bodies corporate and affiliates, and their officers, partners, employees, agents, associates and advisers do not make any representation or warranty, express or implied, as to accuracy, reliability or completeness of the information in this presentation, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or implied in any forward-looking statement, and disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for negligence).

• Except as required by law or regulation (including the NZX Listing Rules), CHI undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.
• Forward looking figures in this presentation are unaudited and may include non-GAAP financial measures and information. Not all 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, 25 August 2022.

2

Highlights and Operating Update

Naomi James

Chief Executive Officer

Successful delivery on strategy

Completed safe transition from refinery to terminal operations

First quarter of terminal operations successfully completed with 19 import shipments discharged

Conversion project remains on-plan and to budget

Successful retail bond issue completed and bank refinancing underway

Tracking in line with FY22 guidance and FY23 EBITDA now expected at top end of guidance

Strong EBITDA and cash flow supports return to dividends in March 2023

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Strong safety and environmental record continues

• Maintained strong safety performance through transition to import terminal
• • No Tier 1 or 2 process safety incidents
  • Two recordable personal safety incidents
  • Revised safety case approved by WorkSafe
• Significant reduction in emissions and energy intensity
• • 98% reduction in scope 1 and 2 emissions in Q2 compared to 2019, with further reductions expected from Q3
  • Energy requirements (electricity and gas) significantly reduced - equivalent to c.3% reduction in New Zealand electricity demand
  • National Greenhouse Agreement concluded with NZ Government

	Health & Safety Performance			Tier 2 [2]
			Tier 1 [1]
6				TRIF [3]
5				Benchmark [4]

4

3

2

1

0
2018	2019	2020	2021	2022 YTD	CONCAWE
						Benchmark 2020
1,400		CO2 emissions (ktCO2)				Scope 1
				Scope 2
1,200				98% reduction
1,000

800

600

400

200

0

2019

2020

2021

Q1 22

Q2 22

1. Tier 1 Process Safety Event (API 754) - A tier 1 Process Safety Event (PSE) is an unplanned or uncontrolled release of any material, including non-toxic and non-flammable, from a process which results in one or more of the following: A LTI and/or fatality; A fire or explosion resulting in greater than or equal to $25,000 of direct cost to the company; A release of material greater than the threshold quantities given in Table 1 of API 754 in any one-hour period; An officially declared community evacuation or community shelter-in-place
2. Tier 2 Process Safety Event (API 754) - A tier 2 Process Safety Event (PSE) is an unplanned or uncontrolled release of any material, including non-toxic and non-flammable, from a process which results in one or more of the following: A recordable injury; A fire or explosion resulting in greater than or equal to $2,500 of direct cost to the company; A release of material greater than the threshold quantities given in Table 2 of API 754 in any one-hour period

[3] TRIF - Total Recordable Injury Frequency per 200,000 hours (rolling 12-monthly average)	5
[4] NZ Business Leaders Health & Safety Forum Benchmark (injuries per 200,000 hrs)