Kia ora, and welcome to Te Pūkorokoro o Murihiku, South Port New Zealand Limited's FY26 annual financial result investor presentation. Presenting today is myself, Lara Stevens, CFO, and our CEO, Derek Nind.

The process for today is that we will work through the slides and take questions at the end of the presentation. Please note that any questions should be added to the Q&A section in Teams.

Good afternoon, Derek Nind, the new CEO at South Port. I suppose from my background, I've spent the last 30-odd years working in ports.

I originally started my career in South Port in 1995, with stints in Lyttelton and Wellington, CentrePort, and spending the last 7 or 8 years up there as the chief executive. That's a fantastic opportunity to come back to the home port, to speak, and to see this result.

I'm on day 19 or 20, all of the efforts that have occurred to make this presentation work have been done by the rest of the team in South Port. I suppose the key thing to kick off is that we are acknowledging it's a record result, record volumes, record revenue, and record profit, which is a very strong outcome for the port company.

The economic performance in Southland underpins most of what we do, and it's made a very strong year. The aluminium smelter has come back and recovering towards historic volumes.

We do see good, strong growth in other opportunities in the medium and long term across the Southland region. The continuation of strong cargo flows are expected in FY27, but we don't see the opportunities for the one-off projects.

We do see a little bit of downside risk, the geopolitical global uncertainty is something that we are all grappling with at the moment, and we have some additional resources and maintenance costs that may come through in '27. I suppose I'd call this the trifecta, where we've got very good cargo volumes, very good container volumes, and very good volumes across the Tiwai Wharf.

I suppose most importantly for me, or most interesting for me, as I see the ship calls, almost 17% growth in the number of ships when we think that we deepened our channel, which gave us another metre, to see increase in the number of ship calls and the volume per ship is significant. The warehousing activity across the port is continuing to grow, and we are seeing strong container growth in South Port as well over the year, from 52,000 to 62,000 TEUs.

It's a great effort when you combine that with our bulk and Tiwai Point volumes. Our operating revenue has seen a slightly higher increase compared to our cargo volumes, with revenue up 13.5% for the year, resulting in a record for South Port.

Despite our revenue increasing by 13.5%, our EBITDA has lifted by 15.7%, and our underlying or normalised net profit after tax is up 16.2%. This shows the port has strong operating leverage, with the business growing efficiently as we take advantage of economies of scale.

Our net debt has reduced by $6.5 million to $18.5 million from June 2025. This reduction in our net debt during the year reflects the strong operating cash flow of the business during this time.

Given the company's strong operating performance and record result for FY26, as well as South Port's strong operating free cash flow, the board has made the decision to increase the total dividend for 2026 by 1 cent per share to 29 cents per share. For business performance, what we are seeing, as you can see on the graph on the right-hand side, is growth right across the trade, with record volumes in both bulk and container activity.

Across our Bluff wharves, 59% of total trade, Tiwai at 24, and containers totaling up 17% of the trade. What we are seeing is growth in both exports and imports, and we are seeing reasonably strong growth over the last 5 years of three and 3.05%.

In terms of the sectors, a strong agricultural sector really across both imports and exports. Those import commodities that are growing there, the volume is really around the fertiliser, stock food, cement, and some project cargoes.

Exports continue to be underpinned by the forestry sector, the aluminium, and fertiliser, which is something new for us. What we are also seeing is that we've got good diversity in our cargo base, and the graph on the bottom right-hand side really shows those key growth areas.

What we are also seeing is that revenue per metric tonne is continuing to lift. Positive outcome for scale.

Stock feed remains an important farming import, which is growing in volume significantly. What you can see on both the graphs is the strong growth across both the forestry, exports, and the agricultural imports into our business.

What we are also seeing is that Ballance Agri-Nutrients, in terms of their manufacturing facilities in Awarua, that's a big driver of some of the volume that we've seen in the last 12 months. Wood chips and logs, growth remains steady, the log volume has been increased by some windthrow that occurred in October last year, and I think they've talked to the sector this morning that we can see most of that now.

Container volumes, we have seen a record of 62,000 TEU, which is a large increase on last year, 18.5%. What we have seen is more calls from MSC, which has facilitated that growth, and the MSC has also introduced the Eagle service, which doesn't call at the Port of Bluff, but our trans-Tasman southern loop service connects well into Wellington or CentrePort, which gives our exporters great transit time and reliable service into the East Coast of North America and beyond.

The other thing we're also seeing is growth in our revenue per TEU, up to $277, which is mainly a result of a combination of the container mix we have and the container activity that we're doing on the port, but good growth going on there. What you can see here is that the key sectors that underpin this is really our dairy volumes, which is continuing to grow, strong red meat sector, which is up 25%, and the aluminium coming across from Tiwai Point being packed on the port and exported in containers is also up.

Import volumes still minor compared to the export volume, but we are seeing some small growth in that area as well. Tiwai Wharf, what we're seeing here, remembering that some of that's being moved in containers across Bluff Wharf, but what we are seeing is it now coming back to sort of historic levels or normalised levels, obviously recovering from the demand response that was requested in 2025.

I suppose as the volume increases at Tiwai Point, the revenue per metric tonne decreases mainly because of the fixed nature of that fee, but good growth coming there. Still, as I said earlier on, a great percentage of our cargo is coming across the Tiwai Wharf.

Just hand back to Lara for the financials.

Thanks, Derek. Starting with revenue for FY26, South Port is pleased to report another record for our annual reporting period, with our operating revenue up $8.6 million, or 13.5% on FY25, to a total of $71.8 million, supported by strong bulk cargo volumes, record container activity, and a recovery of volumes and revenue related to the Tiwai aluminium smelter.

The port also handled 36 full wind turbine units during the year that provided a one-off material contribution to the company's total revenue for the year. This related to Stage 2 of Mercury's Kaiwera Downs Wind Farm near Mataura.

While this activity is not seen through the port every year, we expect to handle more wind farm components in the coming years, which we will touch on later in the presentation. Looking at the chart on this slide, you can see from the dark grey line that bulk cargo had a 16% lift in revenue, which was driven by increased fertiliser, sulphuric acid, project cargo, and forestry volume through the port, supporting a buoyant agricultural sector in Southland.

While our revenue is up by 13.5%, our EBITDA reflects a 15.7% increase compared to FY25. This shows economies of scale, the port being able to spread our fixed costs, which of course are associated with being an infrastructure business, across larger trade volumes and thus increased operating revenue.

Some of our operating costs have risen during the year as activity levels have lifted and compliance has increased. This includes employee-related costs, fuel, fleet maintenance, external professional services, and other operating expenses.

We're pleased to report that the company's EBITDA margin has increased from around 41% in FY25 to almost 42% in FY26, as seen in the chart. Each year, South Port reviews the EBITDA margins of all New Zealand ports, and this shows we compare favourably with the average of 38% recorded across the ports in FY25.

South Port generated a record after-tax profit for FY26 of $16.11 million, up 21% on the prior year's result of $13.32 million. When adjusting for one-off items relating to gains or losses on the sale of PPE and the movement in our interest rate derivatives, we also reported a record underlying or normalised net profit after tax of $16.14 million for the full year, up $2.25 million or 16.2% on the prior year's result.

This result reflects a combination of increased revenue, up 13.5%, increased operating costs, up 11%, and reduced finance costs for the year, which were down 18%. Turning our attention now to the company's balance sheet, South Port's gross debt remained at the same level of $31 million between June 2025 and June 2026, reflecting our core debt position for FY26 and leaving us with headroom of $19 million available for future investment.

This tells us that the cash outflows of $9.4 million associated with capital expenditure invested in by South Port during the year was funded out of cash flow without the need to resort to extra borrowing. After several years of significant investment in various capital expenditure projects, we have seen only a modest increase in PPE from FY25 to FY26, up 5%.

We have seen a favourable improvement in our net debt to EBITDA ratio compared to the comparative full year, reducing to 0.6 times at 30 June 2026 from 1.1 times at 30 June 2025. This tells us that South Port's debt burden relative to its earnings has improved and reinforces the port's strong balance sheet.

South Port's operating free cash flow reflects a $1.5 million or 9% increase compared to the prior year. This is not aligned to the increase in our operating result due to a number of factors, including increased maintenance capex spend during the period, up $900k on the prior year to $5.2 million, and a $2.2 million increase in our tax payments made during the year compared to FY25 as a result of our increased profitability.

South Port is committed to delivering sustainable shareholder returns while maintaining a disciplined approach to capital allocation and funding the company's long-term investment requirements. The company applies disciplined investment criteria to all growth capex projects.

Detailed business cases and financial modelling are undertaken to ensure each investment is expected to deliver a return at or above the port's weighted average cost of capital. As mentioned in previous investor presentations, South Port targets a shadow investment-grade credit rating of at least BBB+.

While this assessment is not issued by a credit rating agency, it does provide a useful benchmark of the company's financial strength, reflecting prudent debt management, strong credit quality, and a low level of credit risk. South Port invested in significant growth capex between FY21 and FY24.

However, total capital expenditure for FY26 was below these levels at $10.3 million. In the short to medium term, the port expects to have another period of significant capex investment, which will be informed by our port planning exercise.

Derek will speak to this a little bit more later in the presentation. Maintenance expenditure for FY26 was $2.8 million, or 39% above the levels incurred in FY25.

This included the first five-year survey of the port's newest tug, and costs related to wharves, the syncrolift, warehouses, and our mobile cranes and other fleet. Historically, South Port has maintained a stable dividend profile, providing shareholders with certainty through a consistent approach to dividend payments.

Reflecting the company's strong financial performance and disciplined capital management, the South Port board is pleased to announce a 1 cent per share increase in the FY26 total dividend, up 3.6% on the prior year. An interim dividend of 8.5 cents per share was paid in March 2026, therefore resulting in a final dividend for FY26 of 20.5 cents per share payable in November.

This dividend of 29 cents per share delivers a gross dividend yield of 4.8% based on the share price of $8.36 at 30 June 2026. In the following section, we will focus on our community, health and safety, and our people.

Our community. South Port supports a number of sporting teams and local not-for-profit organisations, both in Bluff and Invercargill.

This includes both monetary support and non-monetary means by way of South Port people volunteering their time to help various groups. As an example of providing money to sponsor an event during FY26, South Port donated funds to Christmas in the Bluff in December.

This is an annual event organised by locals that provides free kai and entertainment in the Christmas spirit for anyone who wishes to attend. It always has a great turnout and is greatly appreciated by locals from Bluff and further afield.

During the year, South Port provided funding and images to Peacehaven Village dementia unit to enable them to transform its indoor spaces with large images of the port and other Southland scenes on their walls. South Port saw this project as an important kaupapa, given that most of the kaumātua from Bluff are given no option but to move to Invercargill in their later years as there is no aged care facility in Bluff.

Allowing our people to continue to connect with their tūrangawaewae after having to leave the port town with views of the sea will hopefully provide them with some comfort in their later years. Turning to health, safety, and wellbeing.

At the port, Safety First is the number one core value that we have adopted. This covers not only the health and safety of our people and others who operate on the port, but also their wellbeing.

During the year, a new health and safety strategic plan was developed by the company covering the period 2026 to 2029. This strategic plan provides a clear framework outlining how health and safety will be led and managed across the business going forward.

While the board previously had a health and safety panel, a formally constituted health and safety committee was formed during FY26. It is the role of the health and safety committee to strengthen governance and oversight of the company's health and safety strategy, performance, risk management, and legal compliance.

Critical risks remains one of the key focus areas for the committee. Turning your attention now to staff wellbeing, the company has had a refresh of the worker-led Staff Health and Safety Committee during the last 12 months.

Feedback was received from this group during the year relating to the staff gym on the port. This led to an upgrade of the gym facility and associated equipment to encourage wider staff use, resulting in increased physical wellbeing.

We even had a very talented staff member paint large murals on the gym walls to bring a bit more life to the space. Handling increased cargo volumes through the port during FY26 would not have been possible without the dedication of our people.

They operate together as one team, helping each other out, and always go the extra mile. Therefore, on behalf of the board and the leadership team, I want to thank everyone at South Port for their mahi over the past 12 months.

Our people are central to the business, and our end-of-year result reflects their commitment, expertise, and professionalism across every part of South Port. In the port environment, the operational knowledge and experience are critical to delivering safe, reliable, and efficient outcomes for our customers, our community, and, of course, each other.

As a specialised organisation operating in a complex environment, developing talent from within remains important to South Port's long-term success. We are working to build greater depth in our next tier of management and to continue developing future leadership, technical, and expert capability.

This is still a work in progress, but it is an important part of building resilience in critical roles and supporting safe, reliable operations and long-term business continuity.

Thanks, Lara. Just take the opportunity to go through some of the wind farm opportunities that are occurring down here in the south.

As Lara earlier described, Kaiwera Downs moved through the port this year from October to March. We handled the 36 wind turbine towers with marine services, storage, which was very good for us and was a good outcome.

What we do see moving forward is Mahinerangi Stage 2 coming through, and the Slopedown wind farms coming through in '27, late '27 and into '28. What we also see is a number of other planned wind farms occurring across Southland over the next 5 to 10 years.

We do see this as a great opportunity. We do see that the port is well-positioned to participate in these cargoes as they move through over the next 5 to 10 years.

Another opportunity that's occurred for us over the last I suppose 8 to 9 months is that we've purchased the old Southland Coolstores facility, and we've spent a lot of time and money now having it certified to store as to operate as a dry store, and it will be handling dairy products moving forward. This 4,000 square metres really is an 11% increase in our existing dry storage footprint on the port, and will add significantly to our ability to work.

This will result in additional cargo volumes across the port and increased container packing. I think what we've where we've spent the money is in making sure that the roof, the electrical systems, security systems, fire detection, and alarm upgrades have occurred, and it's been a great team effort across the business to get this operating for the 1st of September to kick off, and it'll be a great extension, to build our ability to improve part of the downtown facilities in in the Port of Bluff.

In looking forward, as Lara mentioned earlier, we're in the midst of a port planning exercise. I suppose post the channel deepening, what we're looking to do is how we can utilise the assets that we've got and work with our projected future cargo flows over the next 20 to 30 years.

We've employed Dennis from BMT to help with us. He's ex-Hamburg Port Consulting, he has worked with me in the Port of Wellington, and he has worked across other New Zealand ports and is currently working with Flinders Ports in Australia.

What we're looking to do is to understand the baselining, to understand where we are today, where those cargo flows are, and how we can make the future cargo flows through Wellington work efficiently and safely. Then we're going to look at how we can optimise, make the most of what we already have, and to look at what opportunities can be created in the next term.

Third phase really of this is to look at an optimisation process in terms of the future and what options we have going forward. We expect to have the first two phases sort of finished by September this year, and the total project completed by the end of this calendar year.

I suppose as a port, planning is critical. Cargo flows and estimates will drive that, and this is a great opportunity for us to shape and to form how Bluff will look as we near to 100 years of the Island Harbour.

The outlook moving forward, despite the levels of uncertainty globally, we do expect the trade volume to be similar to '27 sorry, the '27 to look similar to '26, and as we've mentioned without the absence of those one-off project cargoes. We do see a number of opportunities in the medium to long term: wind farms, aquaculture, and other large-scale projects that we're working with.

The opportunities that sit out there are significant. The port planning process, as I've just mentioned, will help us work through that, optimise the infrastructure, to support the growth, and to make sure that we've got the best facilities available as Southland continues to grow.

In the short to medium term, we do expect to look at a replacement tug and potentially a mobile harbour crane to replace our existing facilities or infrastructure on the port. We'll continue to have a focus on capital allocation, basically to make sure that we meet the future needs, and the planning exercise really is to make sure that all of the capital we spend is allocated into the areas which needs it and to make sure that we get in the best potential return from that investment.

To summarise, the record results, the trifecta, what we've been able to do here is that it's backed by sustainable cargoes and some one-off projects. The port is positioned very, very well for its future growth, and we are working hard to maximise those opportunities.

We've got exciting opportunities to grow the business, and they will require capital as we make sure the plan that we're in the process of doing now meets that. We've got a fantastic workforce down here in Bluff, and probably in my first few days here, one of the strongest impressions is the can-do attitude of that team.

They are certainly a very strong asset to our business. Overall, the company's in a great position to benefit from the growth and to maintain a stable dividend going forward.

Thank you for the opportunity. If there is any questions, please put them through.

We don't have any questions in the Q&A. That concludes our presentation here today.

We thank you for your attendance, and we thank you for your ongoing support of South Port. Have a great day.