Channel Infrastructure NZ (CHI) Investor presentation summary

Infrastructure and operational overview

• Handles approximately 3.4 billion litres of fuel imports annually, serving as a key supply route for 40% of New Zealand's transport fuel demand and 80% of jet fuel demand.

• Operates New Zealand's only natural deep water harbour with two large jetties and a 170km pipeline to Auckland.

• Offers around 400 million litres of tank capacity available for conversion and 280 million litres of storage in service.

• Holds 180 hectares of land, with only one-third currently in use and 120 hectares available for repurposing.

• Infrastructure is positioned to support renewable fuels as part of the energy transition.

Financial performance and stability

• Achieved 921 million litres throughput in Q1 2024, with jet throughput 13% above forecast.

• 91% of revenue is indexed to the Producer's Price Index, providing inflation protection.

• EBITDA guidance for FY24 is $92–$96 million, with a 67% EBITDA margin and 71% EBITDA to free cash flow conversion.

• Dividend yield stands at approximately 7.6%, with a policy to distribute 30–40% of normalised free cash flow.

• Maintains a strong balance sheet with leverage at 3.6x EBITDA and targets credit metrics consistent with a BBB+ rating.

Strategic priorities and growth opportunities

• Focuses on world-class operations, supporting the energy transition, disciplined capital management, and community engagement.

• Pursues growth through repurposing surplus land, supporting fuel resilience, and exploring sustainable aviation fuel projects.

• Submitted a response to the Government's Onshore Diesel Storage tender and aims to help customers meet minimum stock obligations.

• Evaluates acquisition opportunities as fuel infrastructure assets consolidate.

• Master plan in development to maximise value and use of available land at Marsden Point.