New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Napier Port (NPH) reported an improved 1H23 result against a subdued prior year period, though Cyclone Gabrielle detracted from the otherwise very strong trading through the first four months of the period</li><li>The result was characterised by robust revenue growth, partly offset by higher costs. EBITDA increased +33% against the prior year to NZ$21.9m (above our NZ$19.9m estimate), boosted by the return of cruise, albeit NPAT was only up +4% given Te Whiti (6 Wharf) funding and depreciation costs.</li><li>The interim dividend has been cut to 1.7cps from 2.8cps, reflective of weaker free cash flow, the basis of NPH’s 70% dividend pay-out approach.</li></ul>

Napier Port (NPH) reported an improved 1H23 result against a subdued prior year period, though Cyclone Gabrielle detracted from the otherwise very strong trading through the first four months of the periodThe result was characterised by robust revenue growth, partly offset by higher costs. EBITDA increased +33% against the prior year to NZ$21.9m (above our NZ$19.9m estimate), boosted by the return of cruise, albeit NPAT was only up +4% given Te Whiti (6 Wharf) funding and depreciation costs.The interim dividend has been cut to 1.7cps from 2.8cps, reflective of weaker free cash flow, the basis of NPH’s 70% dividend pay-out approach.

Napier Port: 1H23 Result Initial Thoughts