Channel Infrastructure NZ (CHI) Investor presentation summary

Investment highlights and strategic positioning

• Operates critical infrastructure in New Zealand and Australia, handling 40% of NZ's transport fuel and 80% of jet fuel demand, including the only supply route to Auckland International Airport.

• Maintains long-term customer contracts with about 50% of revenue independent of fuel volumes, providing stable, inflation-linked cash flows.

• Proven track record of delivering capital projects safely, on time, and on budget, with significant earnings growth and customer diversification.

• Strategic assets include over 350 million litres of tank capacity for conversion and a 25% share in the Somerton Pipeline to Melbourne Airport.

• Resilient infrastructure supports transition to renewable fuels and energy security initiatives.

Financial performance and outlook

• FY25 revenue grew 4% to $140.2m and EBITDA rose 4% to $93.4m, with normalised free cash flow up 5% to $66.9m.

• Dividend payout increased 18% to 13.0cps, with a policy to pay 70-90% of normalised free cash flow.

• FY26 EBITDA guidance raised to $97–$105m, reflecting new government contracts and expanded project scope.

• Maintains strong balance sheet with net debt at $297m, leverage at 3.1x, and interest cover ratio of 5.2x.

• 95% of FY26 revenue is linked to inflation (PPI), supporting stable cash flows.

Growth strategy and project execution

• Focused on selective growth, prioritising Marsden Point Energy Precinct, supply chain consolidation, and measured acquisitions.

• Five growth projects signed in three years, adding $205m in incremental revenue over 15 years.

• Recent projects include additional storage, jet fuel storage, bitumen terminal, and government diesel storage, with accelerated delivery timelines.

• Over 350 million litres of storage and 45 hectares of land available for future expansion.

• Strategic position in Melbourne's jet fuel supply chain through Somerton Pipeline JV.