Re:port by Greg Muter

RE:PORT TARANAKI

PORT TARANAKI LIMITED ANNUAL REPORT 2006

RE:PORT TARANAKI 2006 PORT TARANAKI LIMITED ANNUAL REPORT 2006 Directors John Young JP, Chairman John Auld, Deputy Chairman Neil Leuthart David MacLeod Craig Norgate David Walter QSO, JP Company Secretary Bronwyn Clement Executive Officers Roy Weaver, Chief Executive Ray Barlow, Operations Manager Bronwyn Clement, Corporate Support Manager Jon Hacon, Business Development Manager Noel Henderson, Human Resource Manager David Sharman, Chief Financial Officer Auditors Deloitte on behalf of the Auditor-General Bankers Bank of New Zealand Limited Westpac Banking Corporation Solicitors Govett Quilliam Registered Office Breakwater Road PO Box 348 New Plymouth 4340 New Zealand Telephone: 00 64 6 751 0200 Facsimile: 00 64 6 751 0886 Website: www.porttaranaki.co.nz Email: port@porttaranaki.co.nz

RE:PORT 2006

Contents

Highlights

2005/2006 Review

3-6

Environmental Report

7-8

Social Report Financial Statements

9 10-19

Report of the Auditor-General

Comparative Review

“ OPERATING A SUCCESSFUL AND SUSTAINABLE BUSINESS BY PROVIDING PORT TARANAKI’S CUSTOMERS WITH SUPERIOR PORT FACILITIES AND SERVICE ” MISSION STATEMENT OF PORT TARANAKI LIMITED 3

RE:PORT 2006

Highlights

2006

2005

Revenue

29.78

27.96

Profit before interest, taxation and subvention payments

5.05

3.68

Net profit after taxation

2.12

1.45

Total assets

98.82

92.68

Total shareholder’s equity

68.56

67.28

Interest bearing debt

26.00

21.30

69.38%

72.59%

to equity ratio

5.08%

3.27%

Interest bearing debt to equity ratio

1:2.64

1:3.16

0.84

2.20

1.62¢

4.23¢

Number of employees at period end

113

110

Total trade (millions of freight tonnes)

2.65

3.45

Vessel arrivals (over 100 GRT)

677

562

Total gross registered tonnage (GRT)(millions)

6.29

6.32

General berths

31%

17%

Tanker terminal berths

22%

28%

Service berths

35%

17%

Shareholder’s equity to total assets ratio Net profit before taxation and subvention payments

Total dividends Dividends per share (50¢)

Berth Occupancy:

RE:PORT 2006

2005/2006 Review We are pleased to present this eighteenth annual report on the affairs of Port Taranaki Limited to 30 June 2006. FINANCIAL PERFORMANCE

most notably illustrated the extreme effects of

For the first time in six years container volumes

The financial year has been eventful with all

some of those changes. Shifts in commodity

did not increase:

major trade groups affected by significant shifts

prices and climatic conditions saw a 49%

in market and trading conditions.

decrease in fertiliser throughput. Grain volumes,

2000/2001

6,000 TEU

however, grew threefold.

2001/2002

23,500 TEU

2002/2003

45,200 TEU

Major trade variances in dry bulk trades were:

2003/2004

48,500 TEU

• fertilisers, down 49%

2004/2005

51,750 TEU

• grain, up 195%

2005/2006

48,750 TEU

Overall, total trade volumes were 23% down on the 3.45 million tonnes handled last year to 2.65 million tonnes. The 2005/06 year was the third year of a three

• coal, down 19%

year predicted decline in petrochemical tonnages

• cement, up 18%

Further changes to Maersk Line services are expected in the coming year. Centralisation of

through the port with the ongoing reduction of Maui-sourced products, including methanol. Flows

The tailing down of petrochemicals continued in

Fonterra’s national grated cheese production to

from the first of the new oil field developments,

line with expectations.

Eltham may offer container volume increases in the latter half of the new year.

Pohokura, are expected in the first quarter of the new financial year.

Major trade variances in petrochemicals were: • methanol, down 65%

Customers and stakeholders continue to share a

Close attention to building new value streams and

• crude oils, down 2%

positive outlook and major milestones have been

containing costs has enabled a net profit after tax

• petrol and fuel oils, down 3%

reached with strategic partners during the period. The port continues to enjoy good customer support

of $2.12M to be posted. This is a 46% increase over the equivalent 2005 figure of $1.45M.

The purchase of P&O Nedlloyd by Maersk Sealand

and again our acknowledgement and thanks go to

has resulted in major changes to the schedules

all customers for the successes achieved.

Revenue from operations increased 5.4% from

and services provided by the combined new fleet

$27.13M in 2005 to $28.60M in 2006. This increase

world-wide. Container volumes through the port

OPERATIONS

was primarily derived from higher berth, land,

were temporarily adversely affected as the new

The Port Taranaki Marine Risk Assessment, under

plant, and equipment utilisation associated with

services settled in, however, volumes rallied

the New Zealand Port and Harbour Safety Code,

offshore oil and gas exploration and development

strongly in the last two months of the year. For

was accepted by Maritime New Zealand (MNZ)

activity. This had the effect of offsetting the

the year, container volumes were 3,000 down on

in August 2005. The Port Taranaki Marine Safety

ongoing sharp decline in Maui volumes.

last year to 48,750 TEU.

Management System was lodged at the same time and awaits MNZ’s evaluation and audit.

After-tax profit represents a 3.09% return on shareholder’s equity of $68.56M. The shareholder’s equity to total assets ratio is 69.38%. During the year two fully imputed dividends were paid to the shareholder amounting to $0.84M. Capital expenditure, principally on the port’s deepening programme, was $11.34M for the year. This was funded by cashflows generated from operations and a $4.7M increase in bank debt to $26M.

TRADING ENVIRONMENT Marked changes in market conditions had major impacts on all cargoes handled. Dry bulk trades 5

RE:PORT 2006

The cold store performed well and the cessation of palletised meat services to the USA saw a change in operations to containerised shipments. The Westpack operation continued to provide storage, vanning and devanning, and opened up new business opportunities. Westpack is a joint venture between Port Taranaki and Hooker Bros. Holdings Limited. On 16 December 2005, Heron Construction Limited commenced deepening the harbour using its powerful new backhoe dredge ’Machiavelli’. The project progressed steadily and by the end Newton King Tanker Terminal activity dropped

and assisted the ‘Annegret’ with platform

of June 2006 had removed 300,000 m3 of a

again during the year but ship visits were

positioning in the Pohokura field on a number of

projected 683,000 m3 needed for the transit of

bolstered by Methanex production being moved

occasions. Launch ‘Westgate’ was also involved

vessels up to 12.5 metres at high water neaps.

by smaller vessels. BP started shipments of crude

in personnel transfers to and from the Pohokura

The required depths were optimised by analysis

from the port during the year in competition with

field.

of depth requirements using the port’s Dynamic

Shell.

Under Keel Clearance System. Port Taranaki commissioned a world-first swell

The offshore oil field developments of Pohokura

forecasting system from Metocean Solutions

The first separable portion of the project,

and Maui saw an influx of project cargoes and

Limited. The system gives wind, wave (including

allowing access of deep draft container vessels

support vessels using the port. Service berths at the

long and infragravity), and swell forecasts out to

to Blyde Terminal, is programmed for completion

Main Breakwater were in heavy demand throughout

seven days. This information will greatly assist

by November 2006, and the full project before

the second half of the year. The heavy lift vessel

in managing vessel and mooring safety. It will

mid-2007.

‘Annegret’ was in port for a total of 151 days.

eventually be used in conjunction with the Dynamic Under Keel Clearance System to provide

PROPERTY

April 2006 saw the decommissioning of the FPSO

better maximum allowable draft and tidal window

One of the company’s key property objectives is

‘Whakaaropai’ in the Maui field after 10 years. Tug

information for customers’ planning purposes.

the relocation of port and third party buildings to

‘Rupe’ assisted the hook up of offtake tankers on

outside the port secure area and the development

66 occasions during the 8 years that she had

There were a number of heavy lifts during the

of additional lay-down areas for current and

been contracted.

year. The port’s Liebherr LHM400 cranes were

future bulk trades. During the year the relocation

used in launching a 37 metre superyacht,

of the technical services building to Oceanview

Tug ‘Tuakana’ undertook the tow of the ENSCO 56

weighing in at 188 tonnes, for Fitzroy Yachts

Parade was completed. This building is leased to

jack up rig from Admiralty Bay to the Pohokura

Limited, and loading a private launch onto the

Duffill Watts and King Limited.

drill site, in conjunction with the Pacific Runner,

‘Frio Hellenic.’

NET PROFIT AFTER TAXATION

RETURN ON TOTAL TANGIBLE ASSETS

EQUITY $ MILLIONS

$ MILLIONS

PERCENT

67.28

68.56

50 51.16

8 6

53.32

53.23

6 5.52

5.92

4 4.40

4.65

3.24

2.14

2.52

RE:PORT 2006

2.12 1.45

1.56

10 0

2005/2006 Review Another key property objective is to increase buffer

as longer term benefits become apparent with

departments: Information Systems, Cargo Plant

distances between operational and residential

new trade opportunities appearing on the

Operators, and Engineering Maintenance.

areas. The building at 135 Breakwater Road and

horizon. The high standard of work, the safe work

the lessee’s interest in land, owned by Taranaki

practices adopted, and the fact that staff often go

GOVERNANCE

Regional Council, were purchased as part of

out of their way to help, are frequent comments

There were no changes to the board during the

providing a buffer zone for the port’s operational

from port users.

year.

area. consulting

At the annual meeting on 23 September 2005,

In the 1993/94 year, the Eastern Reclamation was

Duffill

engineers, continued to provide Port Taranaki

Watts

and

King

Limited,

David MacLeod and Neil Leuthart were re-elected

completed for future port use. During 2006, this

with asset management services. Our thanks go

directors of the company.

area is expected to reach full capacity for the

to Peter Atkinson and his staff, and to all other

first time. Approximately one hectare has been

contractors, for their contribution during the year.

John Young and John Auld were re-elected chairman and deputy chairman, respectively, of

leased for the fabrication and storage of concrete

the board of directors for the 2005/06 year.

mattresses for the Pohokura pipeline project since

The relationship between the Chief Executive, the

December 2005. Greymouth Petroleum Moturoa

Human Resource Department, and the on-site

Limited, in partnership with Ngati Te Whiti, has

union delegates is one of trust and confidence.

John Auld and Craig Norgate retire by rotation at

leased adjacent land for oil and gas exploration

This has allowed the company to move forward

the upcoming eighteenth annual meeting of the

activities from August 2006.

in growing its business and providing ongoing

company and, being eligible, offer themselves for

customer satisfaction with a positive attitude.

re-election.

were negotiated towards the end of the year with

Keeping

regular

The board’s audit committee met three times

construction scheduled for the first and second

communications has continued. The weekly staff

during the year. The committee comprised John

quarters of 2006/07. These included a cafe and a

newsletter is now in its fourth year of production

Auld (Chairman), Neil Leuthart, David MacLeod,

fresh seafood retail and distribution outlet.

and has maintained its popularity. The Chief

and Craig Norgate.

Two new leases for the eastern recreational areas staff

informed

through

Executive continued to provide updates to staff Port Taranaki invited Venture Taranaki Trust

through “State of the Nation” presentations

The board’s personnel committee comprised John

(VTT) to set up a marina steering committee in

where

Young (Chairman), David Walter, David MacLeod,

November 2005, to progress the feasibility of

prospects, and other issues are openly presented

development of a marina at the Lee Breakwater.

and discussed.

the

company’s

performance,

future

and Craig Norgate. They met on one occasion. The company’s risk management committee,

Duffill Watts and King Limited produced conceptual drawings developed from user group meetings.

Training programmes are structured to meet

comprising management and representatives

Financial and economic impact assessments were

three needs: compliance training, upskilling, and

from the company’s insurance broker, Aon, met

commissioned by VTT at year end.

personal development. It is pleasing to report that

four times during the year. The company’s risk

a number of Cargo Services staff have achieved

profile was updated during the year.

PERSONNEL

National Certificate level through the NZ Road

All Port Taranaki personnel have played their

Transport Industry Training Organisation.

Port Taranaki’s statutory compliance programme includes legislation that is ranked as high or

part in this year’s significantly improved financial performance and are to be congratulated for their

2005/06 saw an increase in the fulltime permanent

medium risk to the company depending on the

efforts. The hard work is starting to pay dividends

workforce from 110 to 113. Additional staff

impact to port operations should there be a non-

members were employed in each of the following

compliance. Half yearly statutory compliance reports were presented to the board.

PRINCIPAL BERTHS

5.64

5 21.40

27 24

3.48

3.45 2.65 1.88

2 10

02 Overseas

0.74

0.68

1 0.75

2.80

20.37

5.03 4.28

21.40

4.92

24.46

0.72

29.25

MILLIONS OF FREIGHT TONNES

0.77

TRADE TONNES

% OCCUPANCY

2.71

VESSEL STAY TIMES [AVERAGE HOURS]

Coastal

Total

RE:PORT 2006

2005/2006 Review

DIRECTORS

Craig Norgate

David Walter

John Young

David MacLeod

OUTLOOK FOR 2006/2007

from both Maersk Line and Tasman Orient Line.

The 2007 trade plan predicts an overall increase

Whilst it is pleasing to have recorded a ten-

in trade volume of 30% from last year. Growth is

fold growth in throughput over that time, it is

expected across all trade groups and is dominated

recognised that our goal must be for further

by growth in bulk liquid volumes.

quantum lifts in container numbers handled

John Auld

Neil Leuthart

if the port and its customers are to reap the Beyond 2007, the port is well poised to grow

significant benefits of scale that the container

existing trades and attract new volumes with its

industry is capable of delivering.

increased draft, infrastructural investments, and Port Taranaki and Marsden Point are locked in

new supply chain partners.

a tense tussle to become New Zealand’s port The port will continue to actively promote coastal

of choice for LNG imports. A decision from the

shipping, particularly coal transshipments from

project sponsors, Contact Energy and Genesis

the west coast of the South Island. The Pike

Energy, is expected in the first half of the new

River coal project has provided the catalyst for

financial year.

Roy Weaver Chief Executive

this new area of focus for Port Taranaki. Port deepening is a key component of the port’s Planning is well advanced for the arrival of the

diversification strategy. Port Taranaki is one of

semi-submersible drilling rig ‘Ocean Patriot’

the few ports in New Zealand that has ready

in September 2007. It will drill 10 or 11 wells

access to 14m of water within 500m of the port

in Taranaki waters for several different joint

entrance. Few others also possess adequate

ventures.

buffer zones of industrial land to enable 24 hour

Australian

Worldwide

Exploration

(AWE) are involved in all but two of these wells

port operations. No other New Zealand export

and have advised that New Plymouth and Port

port possesses Port Taranaki’s unique west coast

Taranaki will be used as their headquarters and

orientation to Australia, our largest trading partner.

port, respectively.

These attributes provide a promising outlook for Port Taranaki.

Port Taranaki has continued to invest in the development of its container trade. This has resulted in four new services since 2001, two RE:PORT 2006

John Young Chairman

Environmental Report

Port Taranaki began reporting to its stakeholders

with interpretation of this data a control site,

including comparisons with the control site, has

on its environmental footprint in 2002/03. An

unaffected by the dredging process, was used for

not illuminated any significant adverse effect

environmental policy was established and an

comparison.

on reef kaimoana as a result of the disposal of

environmental

management

plan

prepared

sand dredgings in the inshore ground. Surveys

to give guidance in managing environmental

The data has been collected due to concerns

did, however, reveal that sand moved out of

impact.

Objectives were set in relation to

during the consenting process about the potential

the disposal area and moved shorewards and

key performance indicators (KPIs) that would

for the shoreward movement of sand to result

eastwards towards the city beach system. From

allow stakeholders to judge Port Taranakiâ&#x20AC;&#x2122;s

in degradation of the health and abundance of

the results, TRC elected not to exercise the

environmental performance.

kaimoana on the local reef systems.

option to review the consent but recommended

An update on progress with development of

The principal indicators used in this exercise were

these KPIs is included in this report.

the sand cover observed over the reef systems,

Beach Clean-Up

both intertidal and subtidal, mean number of

Students from Westmount School, near Hawera,

HIGHLIGHTS FOR THE YEAR

species, species diversity, algal cover, and the

picked up litter and debris from part of the New

Monitoring of maintenance dredging consents

health and abundance of kaimoana.

Plymouth foreshore with the help of teachers,

that monitoring continue at the same level.

Port

Taranaki

has

now

completed

two

maintenance dredging campaigns under the terms

family, friends, and Port Taranaki in October TRCâ&#x20AC;&#x2122;s analysis of the data obtained to date,

2005. Their fundraising event was sponsored by

of its consent (coastal permit number 5886), to deposit sand at an inshore location. These two campaigns have resulted in the even placement of a total of 452,732 m3 of sand over the 60 hectare licensed area off the eastern margin of Kawaroa reef. Since the commencement of the permit, the site has been monitored by both the Taranaki Regional Council (TRC) and Port Taranaki. The monitoring has consisted of 6 intertidal surveys at 4 sites, a subtidal survey at 16 sites, 23 reef inspections, 3 sidescan sonar surveys, 3 drop camera surveys of 249 sites and 2 sets of low water aerial photographs of the reef system between the port and Te Henui stream. To assist 9

RE:PORT 2006

Environmental Report a number of companies including Port Taranaki and supported by TRC and New Plymouth District

Port Taranaki places a high value on the quality and long term sustainability of the environment

Council.

in which it operates. Accordingly, Port Taranaki gives a commitment to its stakeholders ensuring that its activities are conducted in a manner that will avoid, remedy, or mitigate, to the most

Undaria Pinnatifida The

ENVIRONMENTAL POLICY

invasive

seaweed

Undaria

Pinnatifida

continued to spread within the waters of Port Taranaki during the year despite efforts by TRC, Department of Conservation, and port staff to tackle the problem.

KEY PERFORMANCE INDICATORS (1) Non-Compliance Notices for Port Taranaki’s Activities Ten incidents of an environmental nature were recorded in the company’s incident and accident reporting system during the year, as shown below: INCIDENT TYPE

NUMBER

NON-COMPLIANCE NOTICES

1 3 4 2

none none none none

discharge to water discharges to air discharges to land noise

All these incidents were of a minor nature and none resulted in significant harm to the

practical extent, any adverse effect on the environment. To meet this objective the company will: • Educate and train staff on the impacts of port operations on the environment. • Ensure that responsibilities for the environmental management are allocated to appropriate officers of the company. • Develop and implement an Environmental Management Plan and associated Environmental Management System that will assist the company to comply with relevant statutes and ensure that all operations have minimum practical adverse effect on the environment. • Ensure that in all development planning and activity, environmental considerations are given appropriate and careful attention.

• Ensure that the company has plans and resources available for the handling of emergency response to environmental incidents. • Monitor port activities in a systematic way to ensure compliance with statutory requirements and the objectives of the company. • Report on a regular and ongoing basis to the stakeholders in the business and the community at large. • Ensure a process of continual improvement takes place through regular reviews of the company’s performance with regard to environmental management.

The company recognises and asserts that its environmental performance is the responsibility of all its personnel and that they act in a responsible manner to the continued betterment of the environment in which they work.

(2) Monitoring

Water

Quality

Standards

at Ngamotu Beach

(4) Energy, Waste, and Water Development of this KPI was not progressed

environment. The low number of incidents, once

Monitoring of the Ngamotu Beach waters by TRC

during the year.

again, demonstrates the port’s commitment to

continued during the year. This included bacteria

keeping environmental risks under control.

testing.

The discharges to air were from a variety of

(3) Marine Pollution Incidents and Accidents

been recycled and the funds donated to Ronald

events - sand blasting operations not being

The incident for discharge to water involved a

McDonald House.

properly shielded, dust generated by vehicles

small quantity of tallow which escaped when a

moving over bare ground in dry conditions, and

pipeline suffered a small hole. The tallow was

Port Taranaki sponsored the Department of

dust being blown up from a log yard operation.

removed from the sea by port staff.

Conservation’s “Seaweek”.

OTHER As in past years, all waste toner bottles have

In each case steps were taken to control the dust by either changing the operation or dampening the site. The discharges to land were related to a variety of small product and oil spills. Each discharge was contained to a small area and no pollutant escaped into the stormwater system. One noise incident related to the operation of the dredge. This event appeared to be related to the exceptionally calm weather during the night. The other incident related to night time container terminal operations. Both incidents were investigated and corrective action was taken where possible.

RE:PORT 2006

Social Report

Port Taranaki continued to work with the

Commerce Awards in September 2005.

to various community groups.

• Conducted port tours and made presentations

community, customers, and staff, who are all vital

• Other sponsorships and donations included:-

to the long-term sustainability of its business.

Taranaki Arts Festival, New Plymouth Surfriders

to customers.

Activities during the year included:

Club for junior training and championships,

• Sponsorships

and

donations

included

kayaks for Mikotahi Sea Scouts, Iceberg Swim

Taranaki Chamber of Commerce, Engineering

COMMUNITY

Club, and New Plymouth Boys’ High School

Apprenticeship Awards, Taranaki Federated

• Payment of a $840,000 dividend to Taranaki

sailing team.

Farmers Provincial Conference, NZ Oil and Gas Expo, corporate tent at local rugby fixtures,

Regional Council, as shareholder. • Sponsorship of $100,000 to Puke Ariki, Taranaki’s information and heritage centre, for LEOTC (Learning Experience out of the Classroom). This was the third year of a five year commitment.

CUSTOMERS

and shippers’ and exporters’ golf tournament.

• Three issues of the Port Taranaki magazine, ‘PORTAL’,

containing

feature

articles

customers, were widely distributed. • Port Taranaki Safety Advisory Group, Port

STAFF • Publication of weekly staff and quarterly health and safety newsletters.

Taranaki Security Committee, and the NKTT

• Services of EAP Services Limited continued to

community

User’s Safety Group continued to provide a

be available to staff and their families, and

status, including New Plymouth District Council

forum for discussion on port - related matters

the workplace support person visited all work

for sections of the coastal walkway, Taranaki

including environmental, health and safety, risk

Helicopter Trust for a helicopter landing site,

management and security.

• Discounted lease rental payments to community organisations

reflect

their

and the Department of Conservation for the Sugar Loaf Islands Interpretation Centre. • Continued Volunteer

sponsorship Coastguard

the

vessel

Taranaki “Westgate

Rescue”. triathlons

• Chief Executive continued as chairman of

medical insurance schemes, a subsidised

Engineering Taranaki Consortium and CApENZ.

superannuation scheme, and the “Westpac

• Launch of new “Port Taranaki’ brand for customers on 29 September 2005.   • Provided judge for Taranaki Chamber of

• Provided venue for the staging of three in

November

2005:

Children’s

Weetbix, age-group and ITU World Cup.

areas on a weekly basis. • Staff had the opportunity to join group

Employee Pac” • Chief Executive continued as a trustee of the New Zealand Harbour Workers’ Superannuation Scheme. • There was an active social club and an onsite gymnasium available.

• Continued sponsorship of Taranaki’s surf

• Summer vacation employment continued to

life saving organisations for equipment and

be available for tertiary students (children of

training, New Plymouth Yacht Club, and the Flannagan Cup Open Water Swim. • Continued to provide lawn-mowing at Waitapu Cemetery, Bayly Road, for Waitapu Urupa Trustees. • Consulted with New Plymouth District Council

current employees).    • Four employees attended an Anakiwa Outward Bound course. • Two “State of the Nation” presentations were made by the Chief Executive to all available staff.

and Ngati Te Whiti on the development and

• Sponsored Port Taranaki summer touch rugby

management of recreational areas in the

and triathlon teams, and the Harry Blyde golf

vicinity of Ngamotu Beach (Port Areas of Mutual Interest) through the Ngamotu – Port Taranaki Liaison Group. • Chief Executive continued as a trustee/board member for Venture Taranaki Trust. • Conducted port tours and made presentations

tournament. • Opportunities for staff participation in smoking cessation programme. • Access

website

“Sleepwell”

and

“Stressproofing” e-learning programmes for staff and their immediate family. 11

RE:PORT 2006

Statement of Financial Performance Note

2006

2005

Revenue

28,589,922

27,130,749

Expenditure

26,099,995

25,583,314

2,489,927

1,547,435

1,185,325

829,185

For the year ended 30 June 2006

Operations

Trading Profit Other

Revenue

Expenditure

Other Profit

195,525

178,809

989,800

650,376

Net Profit Before Taxation & Subvention Payments

3,479,727

2,197,811

Subvention Payment

56,000

Taxation 3

1,361,275

695,025

Net Profit After Taxation

2,118,452

1,446,786

Statement of Movements in Equity For the year ended 30 June 2006

2006

2005

Equity as at 1 July

67,280,858

53,233,354

2,118,452

1,446,786

14,800,718

Total Recognised Revenues and Expenses for the Year

2,118,452

16,247,504

Net profit after tax Increase in Revaluation Reserve

Dividends Paid

Interim

500,000

1,100,000

Final

340,000

1,100,000

840,000

2,200,000

Equity as at 30 June

68,559,310

67,280,858

The accompanying notes form part of these financial statements.

RE:PORT 2006

Financial Statements Statement of Financial Position As at 30 June 2006

Note

2006

2005

26,000,000

14,881

24,580,394

Equity

Share capital

Capital reserves

Asset revaluation reserve

Retained earnings

17,964,035

16,685,583

68,559,310

67,280,858

23,000,000

11,000,000

Term Liabilities

Debentures (secured)

Current Liabilities

Provisions

1,009,881

937,963

Payables and accruals

2,869,152

3,161,448

Debentures (secured)

3,000,000

10,300,000

Taxation payable 3

380,116

7,259,149

14,399,411

98,818,459

92,680,269

93,311,000

87,022,755

93,311,000

87,022,755

816,388

373,290

Term Assets

Property, plant and equipment

Future Taxation Benefit Current Assets

Cash and deposits

132,674

176,129

Receivables and prepayments

4,384,549

2,677,284

Loan - Fitzroy Yachts Limited (secured)

1,498,000

Taxation refundable

776,360

Inventories

173,848

156,451

4,691,071

5,284,224

98,818,459

92,680,269

The accompanying notes form part of these financial statements.

For and on behalf of the Board Director

Director

Dated 21 August 2006

RE:PORT 2006

Financial Statements Statement of Cash Flows Note

2006

2005

Receipts from customers 27,983,353

27,894,791

Interest received

For the year ended 30 June 2006

Cash Flows From Operating Activities Cash was provided from : 308,465

229,245

28,291,818

28,124,036

Cash was applied to:

Payments to suppliers and employees

19,880,112

18,372,711

Interest paid

1,417,549

1,363,149

Income tax paid

647,897

973,463

Net cash outflow/(inflow) from GST in operating activities

198,542

(3,072)

22,144,100

20,706,251

6,147,718

7,417,785

52,294

Net cash inflow from operating activities Cash Flows From Investing Activities

Cash was provided from:

Sale of property, plant and equipment (net of disposal costs)

Repayment of Secured Loan

1,498,000

Net cash inflow/(outflow) from GST in fixed asset transactions

1,498,000

52,294

Cash was applied to:

Purchase of property, plant and equipment

11,313,159

4,829,137

Capitalised interest on purchase of property, plant and equipment

236,014

11,549,173

4,829,137

Net cash outflow from investing activities

(10,051,173)

(4,776,843)

4,700,000

Cash Flows From Financing Activities Cash was provided from:

Raising of debt

Cash was applied to:

Settlement of debt

300,000

Interim dividend

500,000

1,100,000

Final dividend

340,000

1,100,000

Net cash outflow from financing activities 3,860,000

(2,500,000)

Net Increase/(Decrease) in Cash Held

(43,455)

Add Cash at the Start of the Period

176,129

35,187

Balance at the End of the Period

132,674

176,129

The accompanying notes form part of these financial statements.

RE:PORT 2006

140,942

Statement of Accounting Policies GENERAL ACCOUNTING POLICIES These are the financial statements of Port Taranaki Limited presented

Depreciation periods are:

Buildings

5 to 33 years

in accordance with the Port Companies Act 1988 and the Companies

Port installations (excluding maintenance dredging) 5 to 66 years

Act 1993, and prepared in accordance with the Financial Reporting

Maintenance dredging

2 years

Act 1993.

Plant, equipment and fittings

2.5 to 25 years

The following general accounting policy has been adopted in these

Floating plant

3 to 25 years

financial statements:

- Historical cost apart from revaluation of certain assets.

(h) Maintenance Dredging The cost of maintenance dredging incurred is expensed over

PARTICULAR ACCOUNTING POLICIES

the period of benefit through to the commencement of the

(a) aen scBalM yeyn arconretCug rneioFr

next dredging campaign. The value of the unexpired portion of

Transactions in foreign currencies are converted at the exchange

maintenance dredging at balance date is reflected in property, plant and equipment.

rate ruling at the date of the transaction. At balance date all foreign currency monetary assets and liabilities are adjusted using the

prevailing spot rate of the day. Any gain or loss is recognised in the

(i) Income Tax

reported financial year.

The company uses the liability method of accounting for deferred taxation and applies this on a comprehensive basis. Future

(b) en sveio n Irt

taxation benefits attributable to tax losses or timing differences

Stocks of maintenance materials and supplies are valued at

are only recognised when there is virtual certainty of realisation.

the lower of weighted average cost or net realisable value.

(j) Dividends

Provisions for dividends are recognised in the period in which they are authorised and approved.

(d) Current Loan

(k) Financial Instruments

The current loan is shown at its fair value, which is established by

The company is party to foreign exchange forward contracts with

using a discounted cashflow approach that applies an interest rate

off balance sheet risk to reduce exposure to fluctuation in foreign

currently being offered for loans and advances with similar terms to

currency exchange rates. The company enters into foreign currency

borrowers of similar credit quality and maturity.

forward exchange contracts to hedge foreign currency transactions when purchasing major fixed assets and when payment is

(e) Property, Plant and Equipment

denominated in foreign currency. Gains and losses on such contracts

are recognised in the year in which the transaction is completed.

The company has adopted FRS 3 Accounting for Property, Plant & Equipment. Property, plant and equipment is recorded at cost less depreciation unless revalued.

No instruments were in place at year end.

Any increase in value of a class of land or floating plant is

(l) Statement of Cash Flows

recognised directly in equity, unless it offsets a previous decrease

Definitions of terms used in the Statement of Cash Flows:

in value recognised in the statement of financial performance, in

- Cash means cash on deposit with banks.

which case it is recognised in the statement of financial performance.

- Investing activities comprise the purchase and sale of property,

- Financing activities comprise the change in equity and debt capital

A decrease in value relating to a class of land or floating plant is recognised in the statement of financial performance where it

plant and equipment, investment properties and investments.

exceeds the increase previously recognised in equity.

structure of the company and the payment of cash dividends.

Land is revalued every three years by an independent registered valuer. The basis for valuation is "fair value" in accordance with FRS 3. This results in land being valued at its highest and best use.

investing or financing activities. (m) Goods and Services Tax (GST)

- Operating activities include all transactions and events that are not

All items in the statement of the financial position are stated

Floating Plant is revalued every five years by an independent

exclusive of GST with the exception of receivables and payables,

registered valuer. The basis for valuation is "fair value" in

which include GST. All items in the statement of financial

accordance with FRS 3. This results in floating plant being valued at

performance and statement of cashflows are stated exclusive of GST.

market value.

CHANGES IN ACCOUNTING POLICIES

(f ) Property Held for Sale

All policies have been applied on bases consistent with those used

in previous years.

Property held for sale is held at cost of acquisition or construction.

(g) Depreciation Fixed assets other than land are depreciated on a straight line basis over their estimated useful lives. 15

RE:PORT 2006

For the year ended 30 June 2006 Notes to and forming part of the Financial Statements

2006

2005

1 Net Profit Before Taxation

(a) Items included in revenue

Interest revenue

308,465

214,265

Profit on disposal of property, plant and equipment

5,984

Foreign currency gains

(b) Items included in expenditure

Payments to auditor

- audit fees

35,000

- other services

16,809

Bad debts written off

1,207

473

Change in estimated doubtful debts

10,000

(12,000)

Depreciation (including dredging amortisation)

5,054,844

5,524,772

Donations

Interest

1,570,526

1,482,074

Losses on disposal of property, plant and equipment

4,136

Directors' Fees

W J Falconer (Resigned September 2004)

9,134

J S Auld

22,500

N D Leuthart

17,500

J B Matthews (Resigned September 2004)

4,567

D N MacLeod

17,500

M C Norgate

17,500

D E Walter

17,500

E J Young

30,000

26,738

122,500

132,939

500

2 Events Subsequent to Balance Date

There have been no material events subsequent to balance date (2005 - nil).

3 Taxation Reconciliation

Profit before taxation and subvention payment

3,479,727

2,197,811

Less subvention payment to Taranaki Regional Council

(56,000)

Profit before taxation

3,479,727

2,141,811

Prima facie taxation at 33%

1,148,310

706,798

Plus/(less) taxation effect of permanent differences

189,792

(36,144)

Plus/(less) taxation effect of timing differences

442,014

52,986

Current taxation payable

1,780,116

723,640

Prior year under/(over) provision

23,173

24,371

Deferred taxation current year movement

(442,014)

(52,986)

Taxation as per Statement of Financial Performance

1,361,275

695,025

Current taxation payable (1,780,116)

(723,640)

Taxation paid

1,400,000

1,500,000

Taxation refundable/(payable)

(380,116)

776,360

RE:PORT 2006

Notes to the Financial Statements For the year ended 30 June 2006

2006 $ Future Taxation Benefits Balance at the start of the period 373,290 Deferred income tax debit/(credit) resulted from the following: Depreciation 375,324 Losses/(profits) on disposal of fixed assets (29) Provisions and accruals 66,719 Prior period adjustments 1,084 Balance at the end of the period 816,388

There are no income tax losses carried forward. 4 Share Capital Issued and fully paid - 52,000,000 ordinary shares

2005 $ 330,886 76,624 (1,825) (21,813) (10,582) 373,290

26,000,000

21,880,937

7,080,219

- 21,880,937

14,800,718 21,880,937

2,699,457 - 2,699,457 24,580,394

2,699,457 2,699,457 24,580,394

All shares rank equally in terms of voting rights, rights to fixed dividends and rights to share in any surplus on wind up of the company. There is no right of redemption attached to these shares. Asset Revaluation Reserves Land Opening balance Revaluation surplus transferred to: Statement of Movements in Equity Closing balance

Floating Plant Opening balance Revaluation surplus transferred to: Statement of Movements in Equity Closing balance Total Asset Revaluation Reserves

Debentures Repayable within 1 year Westpac Banking Corporation Weighted average interest rate

3,000,000 7.73

10,300,000 7.15

Repayable 1 to 3 years Westpac Banking Corporation Weighted average interest rate

23,000,000 7.29

11,000,000 6.93

The sole debenture is to Westpac Banking Corporation. This debenture is secured over all assets and undertakings.

Provisions Employee Entitlements Opening balance Current year movement Closing balance

937,963 71,918 1,009,881

1,007,646 (69,683) 937,963

The provision for employee entitlements relates to accrued annual leave and long service leave. The provision is affected by a number of estimates, including the expected length of service of employees and the timing of leave being taken. Most of the liability is expected to be incurred within the next twelve months.

RE:PORT 2006

For the year ended 30 June 2006 2006 $ 8 Payables and Accruals Trade creditors 1,088,147 Interest accrual 315,289 Property, plant and equipment creditors 888,468 Other creditors and accruals 577,248 2,869,152

1,575,151 162,312 1,211,785 212,200 3,161,448

9 Loan Fitzroy Yachts Limited Current Loan

1,498,000

2005 $

The loan has been fully repaid this year. 10 Property, Plant and Equipment (a)(i) Carrying Values - 2006 Land Buildings Maintenance dredging Resource consents Port installations Plant, equipment and fittings Floating plant Capital works in progress

Gross Carrying Amount/Valuation 31,104,470 16,017,939 1,506,513 178,976 34,610,696 24,641,266 11,461,685 10,306,704 129,828,249

Current Year Depreciation - 563,040 1,004,342 6,309 1,327,590 1,601,602 551,961 - 5,054,844

Accumulated Depreciation - (7,607,436) (1,004,342) (15,247) (12,843,995) (12,800,000) (2,246,229) - (36,517,249)

2006 Carrying Value 31,104,470 8,410,503 502,171 163,729 21,766,701 11,841,266 9,215,456 10,306,704 93,311,000

(a)(ii) Carrying Values - 2005 Land Buildings Maintenance dredging Resource consents Port installations Plant, equipment and fittings Floating plant Capital works in progress

Gross Carrying Amount/Valuation 31,104,470 14,960,070 1,274,994 178,976 34,212,086 24,390,049 11,458,647 909,759 118,489,051

Current Year Depreciation - 605,210 1,478,974 6,309 1,185,207 1,697,861 551,211 - 5,524,772

Accumulated Depreciation - (7,044,396) - (8,938) (11,516,405) (11,202,289) (1,694,268) - (31,466,296)

2005 Carrying Value 31,104,470 7,915,674 1,274,994 170,038 22,695,681 13,187,760 9,764,379 909,759 87,022,755

Land assets have been valued on their highest and best use, taking into account the existing zoning, potential for utilisation and localised port market. All land holdings are either used for port operations or held for strategic purposes and as such are valued at fair value (in this instance market value) under the requirements of FRS 3. High demand for vacant sites has resulted in significant increases in value for most New Plymouth industrial locations over the last 2-3 years, with many of these industrial land values more than doubling in the last 3 year period. (b) Other disclosures (i) There are no items of property, plant or equipment which are not in current use. (ii) There have been no impairment losses recognised or reversed in the current period. (iii) There have been borrowing costs of $236,014 capitalised during the current period on the capital dredging project which is included within capital works in progress at 30 June 2006 (2005 Nil)

RE:PORT 2006

Notes to the Financial Statements For the year ended 30 June 2006 (c) Revaluations (i) Land was revalued at 30 June 2005 by Mr I Baker, a registered valuer with Telfer Young (Taranaki) Ltd, New Plymouth. Mr Baker is a member of the Australia New Zealand Institute of Valuers. The revalued amount of land used in this report amounts to $31,104,470. (ii) Floating Plant was revalued at 30 June 2002 by Mr J Freeman, a registered plant and machinery valuer with CB Richard Ellis, Wellington. Mr Freeman is a member of the New Zealand Property Institute. The revalued amount of floating plant used in this report amounts to $11,200,000. (iii) The total of all revaluations to date is contained in note 5 above. (iv) In accordance with the revaluation of floating plant in (ii) above, the useful lives and the residual values were also reassessed as at 30 June 2002. Useful lives have been extended to between 3 and 11 years total for each of the four vessels revalued and the combined residual value now amounts to $1,790,000 (previously - nil). 2006 2005 $ $ 11 Cash and Deposits Cash and deposits 132,674 176,129 12 Receivables and Prepayments Trade debtors Other debtors Prepayments Provision for doubtful debts

4,021,154 288,470 90,925 (16,000) 4,384,549

2,562,866 101,297 19,121 (6,000) 2,677,284

13 Inventories Maintenance consumables 173,848

156,451

14 Contingent Liabilities Port Taranaki has no known contingent liablities at balance date. 15 Financial Instruments Credit Risk In the normal course of its business the company incurs credit risk from trade debtors and financial institutions. The extent of concentration of credit risk lies in trade debtors where 17% (15) of the number of trade debtors represent 82% of the total carrying amount of trade debtors. Only 11% of the carrying amount of trade debtors exceeded an age of 30 days overdue. There are no significant concentrations of credit risk. The company does not require any collateral or security to support financial instruments due to the quality of the financial institutions with which it deals. The company has a policy of assessing the credit risk of significant new customers and monitors the credit quality of existing customers. Credit Facilities As at 30 June 2006 the company had a multi-option bank facility with Westpac Banking Corporation totalling $45,000,000 (2005 - $25,000,000) of which $26,000,000 was borrowed. Interest Rate Risk The interest rates on the group's debentures are fixed for their term at the date the debentures are issued. The weighted average interest rate on the Westpac Banking Corporation debentures as at 30 June 2006 was 7.34% (2005 - 7.04%). No interest rate swap or forward rate agreements had been entered into at balance date.

RE:PORT 2006

For the year ended 30 June 2006 Fair Values The estimated fair values of financial instruments are as follows: 2006 Carrying 2006 Fair 2005 Carrying Amount Value Amount Foreign currency bank balances (124) (124) 110 Receivables and prepayments 4,384,549 4,384,549 2,677,284 Current Loans - - 1,498,000 Payables and accruals 2,869,152 2,869,152 3,161,448 Debentures - Westpac Banking Corporation 26,000,000 25,889,348 21,300,000

2005 Fair Value 110 2,677,284 1,498,000 3,161,448 21,310,290

The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Foreign Currency Balances, Receivables, Prepayments, Payables and Accruals The carrying value of these items is equivalent to the fair value. Current Loans, Term Loans, and Debentures The fair value of the current loans, term loans, and debentures are estimated based upon the market prices available for similar debt securities. 2006 2005 $ $ 16 Reconciliation of Net Profit After Taxation with Net Cash Flows and Operating Activities Net profit after taxation 2,118,452 1,446,786

Depreciation Decrease/(increase) in future taxation benefits

5,054,844 (443,098) 4,611,746

5,524,772 (42,404) 5,482,368

Plus/(less) movements in working capital items: Increase/(decrease) in provisions 71,918 Increase/(decrease) in payables and accruals (292,296) Increase/(decrease) in taxation payable 1,156,476 Decrease/(increase) in receivables (1,707,264) Decrease/(increase) in inventories (17,397) (788,563)

(69,683) 1,276,035 (236,034) 287,771 (1,611) 1,256,478

Plus/(less) items classified as investment activities: Profit on disposal of property, plant and equipment - Loss on disposal of property, plant and equipment - Decrease/(increase) in payables from the acquisition of property, plant and equipment 206,083 206,083 Net cash inflow/(outflow) from operating activities 6,147,718

(5,984) 4,136 (765,999) (767,847) 7,417,785

2006 $ 17 Imputation Credit Account Balance at the start of the period 3,663,096 Imputation credits attached to dividends paid during the year (413,732) Income tax payments (net of refunds) during the year 647,897 Balance at the end of the period 3,897,261

RE:PORT 2006

2005 $ 3,773,215 (1,083,582) 973,463 3,663,096

Notes to the Financial Statements For the year ended 30 June 2006 18 Related Party Transactions The Taranaki Regional Council (TRC) is the company's sole beneficial shareholder. There was no taxation grouping arrangement in 2006. In 2005 Port Taranaki and the TRC entered into a taxation grouping arrangement which resulted in the transfer of losses from the TRC to Port Taranaki amounting to $169,697 and the payment of a subvention payment by Port Taranaki to the TRC amounting to $56,000. All other transactions made between Port Taranaki and the TRC during the year were made in the normal course of business and were of an immaterial amount both individually and collectively. 19 Segmental Reporting The company operates in one economic and geographic segment, that being the facilitating of export and import activities through Port Taranaki. 2006 2005 $ $ 20 Commitments Estimated capital expenditure contracted for at balance date but not provided for relates to capital dredging and capitalisation of interest for the project. 17,000,000 22,303,471 21 Other Annual Report Disclosures The shareholder has resolved not to require disclosure of the matters listed in section 211 (1), (e) and (g) of the Companies Act 1993. 22 Business Combinations On 22 December 2005 West Coast Coal Company Limited (WCCC) was incorporated. Total shares for the company are three, one each with equal voting rights held by Port Taranaki Limited, TNL Group Limited, and Wendell Offshore Services Limited. This company has not traded yet and the earliest anticipated trading date is 1 October 2006, conditional upon WCCC signing a Transport Services Agreement (TSA) with Pike River Coal Company Limited (PRCC). On 26 April 2006 Greyport Terminal Company Limited (GTC) was incorporated. Port Taranaki Limited holds the only share. This company has not traded yet and the earliest anticipated trading date is 1 October 2006, conditional upon WCCC signing a TSA with PRCC. After the signing of a TSA but before trading commences a shareholder capitalisation will occur which gives rise to a joint venture arrangement with Port of Westland Limited, a fully owned subsidiary of Greymouth District Council. Port Taranaki Limited have incurred costs totalling $147,605 on behalf of GTC, which will be fully recovered when the entity begins trading. 23 Implementation of International Financial Reporting Standards In December 2002, the Accounting Standards Review Board in New Zealand announced that New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) will apply to all New Zealand entities for periods commencing on or after 1 January 2007. In April 2005, the Financial Reporting Standards Board of the Institute of Chartered Accountants of New Zealand issued Financial Reporting Standard 41 (FRS 41) on Disclosing the Impact of Adopting New Zealand Equivalents to International Financial Reporting Standards. This Standard applies to annual, half yearly, and quarterly reporting periods commencing on or after 30 June 2005 and ceases to operate on first-time adoption of NZ IFRSs. Planning for the transition to IFRS Port Taranaki intends to adopt the NZ IFRS for the year commencing 1 July 2006. The comparative statements will need to be restated and an opening position prepared using NZ IFRS as at 1 July 2005. Key differences in accounting policies expected to arise upon adoption of NZ IFRS and impact on financial reports Deferred taxation, financial instruments, intangibles, segmental reporting, related parties, and employee benefits are areas identified as items of possible change. With the exception of deferred taxation, Port Taranaki does not envisage any material financial impact from changes to NZ IFRS. Due to treatment of land and floating plant revaluations, deferred taxation will change substantially. The financial impacts have not been quantified as the actual impacts on transition may be materially different from any estimates provided now. They will also be subject to any further developments in the international accounting arena. 21

RE:PORT 2006

Report of the Auditor-General To the readers of Port Taranaki Limited’s financial statements for the year ended 30 June 2006 The Auditor-General is the auditor of Port Taranaki Limited (the company).

• performing analyses to identify anomalies in the reported data;

The Auditor-General has appointed me, Bruce Taylor, using the staff and

• reviewing significant estimates and judgements made by the Board of

resources of Deloitte, to carry out the audit of the financial statements of the company, on his behalf, for the year ended 30 June 2006.

Directors; • confirming year-end balances; • determining whether accounting policies are appropriate and

UNQUALIFIED OPINION In our opinion:

consistently applied; and • determining whether all financial statement disclosures are adequate.

• The financial statements of the company on pages 10 to 19: – comply with generally accepted accounting practice in New Zealand;

and

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements.

– give a true and fair view of:

– the company’s financial position as at 30 June 2006; and

We evaluated the overall adequacy of the presentation of information in

– the results of its operations and cash flows for the year ended on

the financial statements. We obtained all the information and explanations

that date.

we required to support our opinion above.

• Based on our examination the company kept proper accounting records. RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND THE AUDITOR The audit was completed on 4th September 2006, and is the date at which

The Board of Directors is responsible for preparing financial statements in

our opinion is expressed.

accordance with generally accepted accounting practice in New Zealand. Those financial statements must give a true and fair view of the financial

The basis of our opinion is explained below. In addition, we outline the

position of the company as at 30 June 2006. They must also give a true

responsibilities of the Board of Directors and the Auditor, and explain our

and fair view of the results of its operations and cash flows for the year

independence.

ended on that date. The Board of Directors’ responsibilities arise from the Port Companies Act 1988 and the Financial Reporting Act 1993.

BASIS OF OPINION We carried out the audit in accordance with the Auditor-General’s Auditing

We are responsible for expressing an independent opinion on the financial

Standards, which incorporate the New Zealand Auditing Standards.

statements and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and section 19(1) of the Port

We planned and performed the audit to obtain all the information and

Companies Act 1988.

explanations we considered necessary in order to obtain reasonable assurance that the financial statements did not have material misstatements,

INDEPENDENCE

whether caused by fraud or error.

When carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements

Material misstatements are differences or omissions of amounts and

of the Institute of Chartered Accountants of New Zealand.

disclosures that would affect a reader’s overall understanding of the financial statements. If we had found material misstatements that were

Other than the audit and IFRS impact study, we have no relationship

not corrected, we would have referred to them in our opinion.

with or interests in the company.

The audit involved performing procedures to test the information presented in the financial statements. We assessed the results of those procedures in forming our opinion. Bruce Taylor Audit procedures generally include:

Deloitte

• determining whether significant financial and management controls are

On behalf of the Auditor-General

working and can be relied on to produce complete and accurate data; • verifying samples of transactions and account balances;

RE:PORT 2006

Hamilton, New Zealand

Comparative Review

2006

2005

2004

2003

2002

2001

2000

1999

1998 1997

Operations Trade (millions of freight tonnes)

Imports

0.61

0.77

0.59

0.61

0.59 0.58

0.57 0.51

0.42

0.48

Exports

2.04

2.68

2.89

4.42

5.05

4.81

5.05

4.96

4.23

5.47

Total

2.65

3.45

3.48

5.03

5.64

5.39

5.62

5.47

4.65

5.95

Vessel arrivals (over 100 GRT)

677

562

612

688

618

635

807

659

605

729

Total gross registered tonnage (GRT)(millions)

6.29

6.32

6.98

7.21

6.43 5.05

5.87

5.21

4.78

5.96

Permanent employees

113

110

109

107

100

Financial ($millions) Revenue 29.78 27.96 28.08 29.89 28.25 24.04 27.33 24.91 21.30 25.89 Total interest expense

1.57

1.48

1.39

1.48

1.31

0.73

0.98

0.80

0.46

Earnings before interest, subvention payments

5.05

3.68

5.12

8.39

8.32

7.05

5.97

9.26

7.28 12.26

0.73

Taxation

1.36

0.70

1.14

2.16

2.61

1.97

1.60

1.82

1.66

2.39

Net profit after taxation

2.12

1.45

2.52

4.65

4.40

4.34

3.39

6.64

5.15

9.15

Dividends

0.84

2.20

2.60

2.50

3.20 16.10

2.20

2.70

2.10

3.70

Capital expenditure and acquisitions 11.34

5.68

4.10

4.74 10.65

2.93 13.11

4.38

3.96

and taxation (EBIT)

2.30

Equity 68.56 67.28 53.23 53.32 51.16 44.90 56.66 55.47 50.64 47.58 Interest bearing debt 26.00 21.30 21.60 21.80 25.00 18.20 13.70 14.20

5.90

4.50

Total tangible assets 98.82 92.68 77.73 78.61 79.77 65.62 78.12 75.66 61.47 57.70 Earnings per share (¢)

4.07

2.79

4.84

8.95

8.46

Ordinary dividends per share (¢)

1.62

4.23

5.00

4.81

6.15 30.96

Net assets per share (¢)

132

129

102

103

8.35 86

6.51 12.77

9.91 17.59

4.23

5.19

4.04

7.12

109

107

Equity (%) 69.38 72.59 68.49 67.83 64.14 68.42 72.53 73.31 82.38 82.47 Return on equity (%)

3.09

2.15

4.73

8.73

8.60

9.67

5.98 11.97 10.18 19.22

Return on assets (%)

2.14

1.56

3.24

5.92

5.52

6.62

4.34

8.78

8.38 15.86

Operating cashflow

6.15

7.42

6.67

9.88

9.00 14.73

6.23

6.65

4.94 10.08

Interest cover (times covered by net profit after taxation)

1.17

0.98

1.81

3.15

3.36

3.47

8.33 11.15 12.57

5.94

TRADE HISTORY

TONNES [MILLIONS]

5 4 3 2 1 1900

1920

1940

1960

1980

2000

RE:PORT 2006

RE:PORT TARANAKI

Design: Design Factory Limited Photography: Rowan and Pip Guthrie ITU Triathlon images: Venture Taranaki Inside front cover image: Taranaki Daily News