Napier Port Holdings Limited (NPH) Earnings Call Transcript & Summary

[Presentation] [Foreign Language] What an inspiring video highlighting some of the resources within [Foreign Language] of Hawke's Bay. To kick our kaupapa AGM of today, we're going to open with a mihi whakatau, which is a short welcome. Maybe to save a few confused looks, what I'm going to -- just to let you know what I'm going to include in the mihi as an acknowledgment of the environment around us, including our marine environment, acknowledging those that have passed, both here today and what our kaupapa occasion is about. So without further ado, we'll kick off. [Foreign Language]

Te Kaha and I chose it because of the symbolism it talks about the chill winds blowing over the region and the impact that can have, that we look forward to the red dawn rising over the frost. And we thought with the chill winds of COVID, having blown through the region and the world that it was very fitting because it finishes with this notion of looking forward to the sun rising on a new day, and we are sincerely hoping that the sun rises in a much better year next year. [Foreign Language] So a formal thank you to Te Kaha for the greeting -- first greeting of today. [Foreign Language]. So a formal thank you and greeting to all of you who have come here for this special occasion. [Foreign Language] Kia ora, good morning and welcome to all of you to Napier Port's Annual Shareholders Meeting. My name is Alasdair MacLeod. I am the chair of the Napier Port Board and I'll be running today's meeting. On behalf of the Board, the Chief Executive, and our leadership team I'd like to welcome shareholders, Napier Port people and media to Napier Port's second Annual Shareholders Meeting as a listed company. This year, shareholders who are attending in person as well as attending online via the virtual meeting platform provided by our share register link market services. Before we move on to the presentation, a few housekeeping messages. In the unlikely event of fire, there's a fire exit through the door to which you entered. There's fire exit on the far left side and there's one round the back behind that back pillar. So there are 3 exits to the building. And in an earthquake, stop, drop and hold. If the earthquake is long and strong, once the shaking stops, and that's once the ground stops shaking, you're probably still shaking, please exit the building and make your way up Bluff Hill. Toilets are just outside the main door of the room and of the exhibition room, where we'll have refreshments at the end of the meeting. And could you all please check that your mobile phones are on silent. Before we begin, here is the disclaimer advising that this presentation does not amount to financial advice. If you'd like to read it in detail, please feel free to download this presentation from the Napier Port Investment Center. And for the speed readers, you've already covered that. I'd like to introduce our Board of Directors. First of all, Stephen Moir; Diana Puketapu; Vincent Tremaine, who is joining us online today, we decided not to have his face beaming on the screen, but he is up there; John Harvey, Rick Barker, and Blair O’keeffe. And our senior management team, our Chief Executive, Todd Dawson; our Chief Financial Officer, Kristen Lie; our General Manager of Strategy and Innovation, Andrea Manley, you can stand up and turn around and wave and make you all be visible; General Manager of Commercial, David Kriel; General Manager of Culture and Community, Viv Bull; General Manager of Marine and General Cargo, Adam Harvey; General Manager, Infrastructure Services, Michel De Vos; and General Manager of Container Operations, Kia Zia. And our auditors, Ernst & Young LLP are represented today by Simon Brotherton. You can acknowledge the applause of the crowd, Simon. The format for the meeting today will be as follows: presentation of the annual results of the Chairman's address, the CEO's address and the CFO's address. Following the presentation of the annual results, we'll take questions relating to those. Please note that only shareholders, proxy holders or shareholder company representatives may vote or ask questions. We have roving mics for questions. Please raise your shareholder card to ask a question, and one of our people will bring you the microphone. Shareholders participating online through the virtual meeting website will be able to submit questions. And I encourage any shareholders who are watching online, if they have questions relating to the business of the meeting to send their questions through as soon as possible. The presentation of the annual results will be followed by the formal business of the meeting, which includes 3 resolutions. We will present the resolution before questions relating to each resolution followed by the voting. Before voting on each resolution, we will present the proxy voting results up on the screen, and then you'll be asked to vote. Shareholders online will be able to vote -- cast their vote online by pressing the Get a Voting Card button and validating yourself using your shareholder or proxy number. Please refer to the virtual meeting online portal guide or contact the team at link on 0 (800) 200 220, if you require any assistance. For our shareholders in attendance, you may vote, as usual, on the voting card given to you at the registration desk. Link representatives will collect your voting cards at the conclusion of the vote. If the -- all of the results are tabulated and audited in time, I'll announce the results at morning tea. Otherwise, they will be posted on the NZX website and the Napier Port website as soon as they're available. We'll conclude the meeting with general business. And then light refreshments and a cup of tea will be served in the exhibition hall at the conclusion of the meeting. After refreshments, we're providing a short bus tour of the port leading from and returning to the 4 court outside. If you haven't already registered for the bus tour, please see Chris, where is -- Chris is waving at the back there. So if you haven't registered and you want to see, Chris in the main foyer to register immediately after this meeting. First bus will leave at 12 noon the next one, 15 minutes after that, and we'll just keep rotating the buses until everyone's had a chance to see the port. Due to customs requirements, you will require photo ID to get on the bus. Now for the formalities. The company secretary has confirmed to me that the notice of meeting has been sent to shareholders and other people entitled to receive it. The company's constitution prescribes a quorum requirement of 3 shareholders having the right to vote, and we've clearly met that to date. Voting on all resolutions be conducted by way of poll. Proxies have been appointed for the purposes of this meeting in respect of approximately 137 million shares representing 69% of the total number of shares. My fellow directors now intend to vote all discretionary proxies we have received in favor of the resolutions as set out in the notice of meeting. I'd like to thank shareholders for their participation in today's meeting. And again, I'd encourage all shareholders who are watching online to send their questions through as soon as possible. I'd now like to give an overview of the 2020 financial year. 2020 has been a year like no other with COVID disrupting lives, communities and economies globally. It made our first full year as a listed company even more challenging than we could have predicted. However, despite that, Napier Port finished the year in a stronger position than we anticipated at the outset of COVID-19, achieving a solid financial result and making very good progress on our strategic initiatives. As you know, Napier Port is a key regional long-term infrastructure asset with the purpose of connecting our region to the world. Our listing a year ago provided the capital we needed to embark on our centerpiece strategic development program, construction of our 350-meter long 6 Wharf. Notwithstanding the difficulties experienced this year, our confidence in the region and the quality offering of our port, is such that we forged ahead with the construction of 6 Wharf. Despite 5 to 6 weeks tools down during the Alert Level 4 lockdown, this vital piece of infrastructure remains on budget and on track to be completed by late 2022. When finished, it will give the port the ability to handle bigger ships, more shipping and the ever-increasing volume of cargo generated by our region or attracted by our superior service and supply chain offerings. This year underscored the resilience of our regional economy and the many primary sector exporters who face many challenges and still face uncertainty. We're grateful to producers and cargo owners who worked diligently with our management and people to find solutions to the unique challenges we were all confronted with. And together, we applied ourselves the keeping cargo moving across our wharves. This has cemented the resilient nature of the region's primary sector and your ports dedication to connecting the region to the world. The solid financial results we're presenting today show we've made a strong recovery despite the challenges of the COVID-19 affected year. Whilst the economic environment and outlook has changed since the time of our original PDS forecasts, made at the time of our IPO in August of last year, we are pleased that our financial results are in line with our original PDS forecasts. We've declared a final dividend of $0.05 per share, which is due to be paid today. The Board acknowledges the fact that the final dividend of $10 million or $0.05 per share is less than originally forecast in respect of the whole 2020 financial year. We determined that it was prudent to take a conservative approach when we consider the economic outlook, the near term earnings outlook, the group's existing significant capital commitments, its COVID-19 response plan and capital management policy. As we outlined in our half year report, we remain grateful for your support as we focus on protecting and growing the long-term value of your port. At the peak of COVID-19, we applied for and received the government wage subsidy. And I just want to acknowledge our gratitude to the government for the speed of their response. The subsidy fulfilled its purpose, which was -- gave us confidence to retain all of our staff on full pay, whether they could come to work or not. Subsequently, given the strength of our recovery during the year, we determined to repay the wage subsidy because we felt it was the right thing to do. The response of our team to these changes from our Chief Executive, Todd Dawson, and the senior management team, through to those on the front line moving cargo has been inspiring. Without exception, the team has worked hard to protect the health and safety of our people and our region while applying themselves assiduously to the task of keeping cargo moving across our wharves. Looking forward, we will continue working towards delivering our business plan and sustainability strategy. However, the environment in which we are currently operating is more uncertain, and we'll comment further on that later in the meeting. I'd like to introduce Napier Port's Chief Executive, Todd Dawson, to present his report on the 2019-2020 financial year. Todd?

Thank you, Alasdair, and good morning, everybody. Thank you for taking the time to attend our annual shareholder meeting today. Stating the obvious, this year has been an extraordinary year for Napier Port, our customers and our community. We know that when the region does well, Napier Port does well and vice versa. And this year, we have shared moments of uncertainty and concern, as well as celebrating achievements and some success. We're committed to doing everything we can to support a thriving regional economy, which means supporting exporters to get to international markets and bringing imports through that our producers and our economy need. In our first year as a publicly listed company, Napier Port, can look back on 2020 with a real sense of pride and achievement. I previously referred to 2020 as the financial year is a game of 2 halves. First half of the year saw us make good progress on the delivery of our strategic objectives and saw the strength of trade coming from the Hawke's Bay continuing to build momentum. We saw a very smooth start-up to the major construction program of 6 Wharf, as well as steady progress being made on a number of our other key projects. As COVID-19 began to take hold globally around January or February of this year, the potential economic impact of the pandemic became very evident and we started the feeling of its effects through the port. The COVID-19 pandemic and government responses create a significant uncertainty for our people, operations and our trade leading into the second half of the year. However, in the face of these significant challenges, we have achieved a solid financial result and continue to deliver on the purpose of working for our region. We see our success this year primarily as a result of the dedication of our people and a revalidation of our strategy, which places our customers in our regions cargo owners at the center of its focus. Just going to touch on a few of our highlights for this year. So this year, we hosted 673 ship calls and it consists of 293 container vessels, 304 charter vessels and 76 cruise vessels. We moved 5 million tonnes of cargo across our wharves, and that consisted of 268,000 TEU containers, 24 equivalent units and 2.4 million tonnes of logs. We achieved over $100 million in revenue for the first time and achieved a record profit result. Overall, a very satisfying outcome and one that underlines the performance of our team, and also the resilience of our trade base. In any other year, Napier Port would treat this as business as usual. What makes this year stand out is that we achieved all of this as well as a solid financial result despite the impact of the COVID-19 lockdown when all trade apart from essential cargo ceased to move. As mentioned previously, the challenges of this year revalidates for us the strategic direction we're taking at Napier Port. Our strategy focuses on 4 key areas: customer connection; data and technology; network infrastructure; and building collaborative partnerships, all of which are underpinned by our culture here that recognizes the people are the foundation of our business. I'm really delighted to report that we've made significant progress in all areas of the strategy this year, which are detailed extensively in our annual report. But today, I'm going to touch on a few -- some of the key highlights. Health and safety around our culture of care. We want everyone at the port to go home safely every day. And 1 year into our comprehensive 3-year health and safety program, we are making excellent progress in achieving us. We implemented over 50% of the requirements of our ISO45001 management system, which is the best practice standard for occupational health and safety practices. A critical risk control management program was introduced, and we've completed 18 critical risk assessments this year. What made this program even more effective was a strong involvement from our operational teams, with the end result being that they have a fit-for-purpose risk assessments that our people are invested in. A new health and safety management system was also introduced during the year. It helps to identify risks before it becomes evident or it becomes an incident, and it provides consistent reporting across the team so we can spot trends early and know-how we are tracking with improving our health and safety outcomes on the port. Our health and safety philosophy at the port is one of "Just Culture" and it's underpinned by worker participation and collaboration on initiatives. And we are seeing improvements in engagement with health and safety training and outcomes. Whilst this is really pleasing, we always want to do better in this area, and we're confident our health and safety remit will continue to deliver improvements for us over time. Just a few weeks ago, we had the pleasure of opening up our Napier Port to our port team's families for the first time in 8 years. I've said often this year that the dedication of our people is what's enabled our success. And our people are the foundation of our business, and we wanted to show our appreciation, not just for our people, our team, but also for their families who play a key role in enabling our business to perform. This was especially the case this year, as many of our families faced the anxiety of COVID-19 and having an essential worker leaving to come to work and coming home every day. More than 600 of our people and their families attended the Whanau Day, complete with Art Deco bus tours of the port, a tug boat valet, food, entertainment and being able to safely get up close and personal with some of our bigger machinery and some of our wharves. It's not often we get to do that. It's a great opportunity for our team to share and their workplace for their families that for most part, the port is mostly shut off from the public. During the year, we also extended a number of partnerships with very longstanding customers, demonstrating our commitment to putting cargo owners at the center of our focus. WPI, our agreement with Winstone Pulp International was renewed for 10 years with 2 further 5-year rights renewals. This is to export WPI's pulp and timber products from its mill in the Central North Island. A key decision factor for WPI in selecting Napier Port was the resilience we've shown and our passion for service delivery, and it certainly gives them the impression that Napier Port has a clear plan for the future, and a future that incorporates not only Hawke's Bay, but the whole of the Central and lower North Island. WPI could actually export from any of the main North Island ports. So their decision to remain with Napier Port is a welcome endorsement of the long-term value that we have been delivering for them. Ovation Meats, while providing more flexible and efficient transport solutions together with a greater choice of shipping services, we've also welcomed an increase in the Ovation New Zealand Limited's high-quality meat exports from further afield, in particular from their Te Kuiti and Feilding plants. We've removed transportation waste from their supply chain, and we're able to support Ovation to cut down some of the CO2 emissions and also provided them with access to additional container shipping services. Again, this reinforces our strategy of connecting with our customers and understanding their businesses as adding value and building lasting relationships with them. On the data and technology front, this year, we continue to develop digital platforms that benefit our people and our customers and their day-to-day work. They're driving real operational efficiencies on the port, which also provides customers and suppliers with a better service and experience in working with us. Some real practical examples of this are our Sharewater system, which is a customized marine harbor management tool; our Port Pass system, which is our new online all-in-one identity card and access system; and Propel, which is our new vehicle booking system. And our ability to create new investor applications that are practical and quick and easy to implement is becoming a true point of difference for Napier Port and the industry. We are very proud to have been able to develop these in-house and to have created new income streams for Napier Port off the back of our own technology developments. To provide the services our region and customers will need for the future, resilient and agile infrastructure network is essential. The centerpiece of this program is the development of our new 350-meter long 6 Wharf. 6 Wharf will unlock the future growth of Hawke's Bay and also the Central and lower North Island, by providing the infrastructure that has a greater capacity and capability for moving cargo and handling more and larger ships in the future. This key project has been progressing really well this year. Despite the interruption during the lockdown period when construction had to stop, we remain on track for completion in 2022, and crucially, we remain on budget. The initial and some of the most challenging phases of this project have been seen during the start-up and have gone really well. Piling has progressed with about 1/2 of the 400 piles completed, and our dredging program is well advanced also. Operational planning for the commencement of 6 Wharf in 2022 is going very smoothly, and my whole team is very excited about the potential that this development holds for our future and the capability to service our customers in the whole of New Zealand. 6 Wharf will be a real boost in Napier Port's future capacity and our continued investment in such a significant piece of critical regional infrastructure is well supported by the trade we see coming today as well as at which we see coming in the future. Expanding our capability means focusing not only on port infrastructure such as wharves, but it also means that we had better focus on freight hubs in warehousing that producers rely on as well as the road, rail and sea links that connect our customers' cargo to the port. Thames II, our secondary empty container depot, it opened for business during March this year. It holds and prepares containers really for the region's exporters and provides much needed space for our container operations while we develop 6 Wharf. At our shareholders' meeting last year, we introduced our new tug, Kaweka. She is our third tug and is now coming to full operation, and she's delivering great results with a lot more maneuverability, fuel efficiencies and is enabling us to avoid a lot more secondary vessel moves across the port. Kaweka has also allowed us to berth some of the larger container vessels that come to us during nighttime hours, which has improved the availability of our wharves for all our customers. At Manawatu, in our inland port operation, this is another key part of our infrastructure planning and it's an inland freight hub, and it takes waste and cost out of the supply chain. In Manawatu, our hub is delivering cost efficiencies and greater shipping choices for customers in the Central and North Island. This now makes Napier Port more accessible for exporters throughout Taranaki, Whanganui and Manawatu. Sustainability. Sustainability is a key business strategy for us as we recognize the importance of leaving a positive legacy for future generations, while delivering for our customers in Hawke's Bay's regional economy. During 2020, we developed our sustainability strategy, which is built on the framework put in place last year and is aligned to the UN Sustainability Development Goals. Our approach is to think globally but act locally. There are 111 work streams within our sustainability strategy, and we've identified 18 top priority work streams, including the areas of climate change, creating equality, diversity and inclusion across the port, good neighbor programs, cultural strategy and our marine and cultural health program. We're particularly excited about the development this year of the Marine Cultural Health Program. The program -- well, this program is a New Zealand first and potentially a global first, and has been founded by Napier Port and the Mana Whenua Steering Komiti and the committee is made up of representatives from different marae, hapu and mana whenua entities partnering with Napier Port. This program aims to protect, monitor and assess the cultural health of the marine environment, particularly Pania Reef during the 6 Wharf development program. We're looking forward to launching the program in real-time tracking of the marine cultural health with the Steering Komiti early next year. Many sustainability initiatives are already underway at the port, including a commitment to zero emissions by 2050 and as well as establishing immediate targets in our short term. There's been more than 150 Korora, little blue penguins, have been relocated into our sanctuary. And just a couple of weeks ago, the first chicks were hatched. We are improving our energy efficiencies where we can, such as using LED lighting, more efficient forklifts as we upgrade, electric vehicle charging stations being installed, and we have begun transitioning our light vehicle fleet over to EVs. We're continually looking for ways to minimize waste and supply chain, such as reducing the movement of empty containers. And we're now in the process of developing our sustainability reporting capabilities, collecting some baseline information and setting some KPIs for the future to be able to track towards. So just to sum up, while this year has not been without its fair share of challenges, our people, our region and our trade has shown itself to be highly resilient. We're satisfied with the result. I'm pleased to be able to continue and continue making considerable progress on our strategic initiatives this year. Napier Port is in good shape to be able to capitalize on the growth prospects and also the opportunities we see in the future. And we've shown ourselves to be pretty adaptable to the changes that can come from the least expected situations, as well as taking advantage of some of the opportunities that have presented themselves along the way. The value of our loyal customer base provides us with the confidence to keep investing and our forward-looking development program and our customer-focused strategy for growth. I'd now like to hand over to Napier Port's Chief Financial Officer, Kristen Lie, to present the financials. After which, I'll return and just briefly touch on some of the 2021 outlook.

Thank you, Todd, and good morning, everybody. In 2020, our total cargo volumes were just over 5 million tonnes, a 7.5% decrease from 2019. The decrease was driven by COVID-19 disruptions, both here and abroad, and in particular, the categorization of forestry products as nonessential seen during the April and May Alert Level 4 lockdown period. Total bulk cargo was 3.1 million tonnes. The largest component of this, log exports, were 2.4 million tonnes, an 8.3% decrease on the prior year. This was due to the market disruptions in China at the beginning of the calendar year, followed by the cessation of harvesting in New Zealand during the Alert Level 4 lockdown. Our container services business was broadly in line with last year with 268,000 TEU, down just 1.1% or 3,000 TEU. Container volumes were impacted to a lesser extent than our bulk cargo because food products, amongst others, were categorized as essential during Level 4, and they continue to flow during the lockdown. Higher value reefer -- refrigerated container units increased by 2.1%, whereas dry TEUs decreased by 7.3%. Largely due to the dominant cargo of pulp and timber being classified as nonessential during the lockdown. Despite the Alert Level 4 lockdown, a container packing operation for mainly pulp and timber products, known as Port Pack, had a relatively solid year with 49,000 TEU packed, down just 2% from last year. Apple and pear volumes saw a record equaling year, which was a great result for that industry, given their challenges to maintain their operations and the disrupted international markets they experienced. Overall, we see the trade result is a good one, given the circumstances and reflective of the resilience in the local economy and demand for our region's products. During 2020, we achieved the milestone of becoming $100 million revenue business with 0.8% growth year-on-year, despite a 7.5% decrease in total cargo volume by weight. Cargo volume decreases were offset by increases to average revenues per cargo unit. Other than cruise, our main 2 sources of revenue arise from container services and bulk cargo services. Container services revenue grew 1.9% year-on-year to $62.3 million, which resulted from average revenue per TEU increasing 3% in the year, which offset the 1.1% reduction of TEU trade volume. Bulk cargo revenue was down 3.1% year-on-year to $31.3 million, which was driven by the 8.3% volume decline to 3.1 million tonnes, and which exceeded the average revenue per tonne increase of 5.7% in the year. Our shortened 2020 cruise season saw revenue increase just under 15% to $4.3 million versus 2019, continuing that relatively high-growth trajectory. Cruise vessel calls of 76 were 11 fewer than forecast, but 6 more than 2019. Of the 11 missed calls, 4 related to weather events and 7 were canceled as a result of COVID-19 restrictions later in the season. As we have communicated previously, we do not expect the resumption of cruise ship visits this current cruise season. We are also conscious of the possibility that this situation may be in place for an extended period. Just a brief recap on what was undoubtedly one of the main events of our 2020 financial year and what we set out to achieve with our COVID-19 response plan that we formulated at the peak of uncertainty in the most severe lockdown period. Our primary focus during these times has been to ensure the safety of our people and users of the port. Our financial response aimed to deliver a prudent approach to managing our cost base and balance sheet, in particular, across the 18-month period to the end of the '21 financial year, as we face the significant uncertainty that is ahead of us all. We repeat to note on the slide here a number of the measures we initiated. Whilst these have resulted in cost savings in the short term, they are temporary in nature and are not sustainable for an extended period. A number rely on the goodwill of our shareholders -- our stakeholders, excuse me, including our staff and shareholders. We estimate operating expenditure savings in 2020 of $2.2 million and a further approximately $5 million of mostly CapEx deferrals to later periods. Some initiatives remain on the table. But in terms of managing expectations, we expect the current financial year to reflect a sustainable cost path resuming during 2021. However, we continue to maintain operating and capital expenditure discipline. On a comparable pro forma basis, 2020 net profit of $20.4 million was $0.8 million ahead of 2019 and $0.4 million ahead of our original PDS forecast. The reported statutory net profit after tax of $22 million included a number of items that were adjusted out for the pro forma measure purposes. These include relating to property revaluation gains for our property at Whakatu, just under $0.7 million of tax benefits related to changes in tax depreciation on buildings and just under $600,000 of impairments of infrastructure assets related to our 6 Wharf development project. The 2019 reported statuary net profit of $6.8 million, shown in red, include the significant one-off IPO and restructuring costs that were detailed last year. Capital spend during the year was $53.1 million or $46 million in cash flow terms, the majority of which went towards 6 Wharf construction. Other completed development projects in the year were final payments for our third tug, Kaweka, and the remaining payments to complete the development of our off-port Thames Street container services depot. Major replacement CapEx items in the year included: Wharf major maintenance, maintenance dredging and empty container handling equipment. In the current year and future years, our development capital spend has ramped up as we continue to build for growth. Due to rephased spend of 6 Wharf construction, leading up to the signing of the construction contract, plus an approximate 5-week delay from the COVID Level 4 shutdown on 6 Wharf construction and deferrals of other forecast CapEx, capital spend as part of our COVID measures, we remained in a cash positive position at the end of the financial year, having spent less than originally forecast in the PDS. At the balance sheet date, we retained $180 million in undrawn bank facilities, which we have subsequently drawn upon in October. Finally, a comment on our capital management targets. Our stated objective is to target a long-term range of 2 to 3x for our net debt-to-EBITDA ratio. EBITDA, in the terms of our financial statements, are our results from operations. EBITDA means earnings before interest, tax, depreciation and amortization. Our target of 2 to 3x with a target peak of no greater than 3.5x through the 6 Wharf construction period. Given the current environment, including the lack of cruise revenue, at least in the short term, a peak ratio above 3.5x is now considered likely. This is a point of focus with a view to mitigating this increased over time, and we expect to remain well within our actual banking covenant limit of 4.5x. I'll now hand it back over to Todd for comments on the outlook for the '21 financial year. Thank you.

Thank you, Kristen. We're keenly focused on what 2021 and beyond will bring us. The '21 financial year comes with a fair degree of uncertainty. Whilst the current trends and volumes remain steady in our business and our primary sector based customers appear optimistic, we see a few of the -- few key challenges ahead of us. Uncertain economic times now it looks across global markets. The issue of a strong reliance on seasonal labor for the harvest of apples this year, and at this time, it still remains unresolved. To date, there's no international tourism sector being reestablished in New Zealand due to the closed borders. This is a major obstacle to overcome prior to any cruise industry returning in the near future. As stated earlier, we are currently not expecting any cruise ship visits this cruise season, and we are conscious of the uncertainty regarding the timing and eventual extent of this industry's revival. The tightening supply on international container shipping capacity, and this is seeing large increases in international sea freight rates across major international trade routes. This is likely to flow through to higher cost for New Zealand exporters and importers. And there is a tightened supply of container equipment, which is needed by our exporters. Due to international demand for these containers and disruptions within the New Zealand and the global supply chains currently. This is including all of the other ports around New Zealand. Our focus at this time is on ensuring that we remain vigilant to keeping our people and our community safe and on pressing ahead with our growth plans to make the most of our current and future opportunities. Finally, a comment on our earnings for the next or our current financial year. At the time of our annual results release in November, we provided a range for the expected underlying results from operations for FY '21 of between $34 million and $38 million. There's no update as to this outlook at this time. However, it's worth reiterating the key reasons for the expected decrease from FY '20 result of $41.2 million. As stated earlier, we currently are not expecting any cruise ship visits this cruise season. We continue to exercise a disciplined approach to the spend of operating and capital expenditure and are pursuing efficiencies. efficiencies, however, several of the cost saving measures introduced during the response to COVID-19, including deferrals of operational and capital expenditure in FY '20 cannot be sustained in the new financial year. Finally, the Board believes that Napier Port should configure itself for the long term, not only in terms of infrastructure, but also in terms of people and capability. All of these factors translate into the expectation for a lower underlying result from operations for the year to September 30, 2021. I'd like to take this opportunity to thank the whole team at Napier Port for the dedication they've shown this year. And also, I'd like to thank the Board for their support of the management team over this really challenging period. Thank you. And we're looking forward to the future and also making a difference for Hawke's Bay and New Zealand's importers and exporters. Once again, thank you very much for coming today. And now I'll hand back to our Chairman, Alasdair MacLeod. Thank you.

Thanks, Todd and Kristen. Now that we've concluded our presentation on the annual results, I'd like to open the floor to questions on the annual report and financial statements. So we're keeping the questions confined at the stage to that specific area. Again, if you have a question, please raise your shareholder card and one of our people will bring you the microphone. Probably just wait till the microphone gets there because even if I might hear, the people online probably won't. Shareholders participating online through the virtual meeting website will be able to submit questions, and we'll answer those after answering questions from the floor. Now if you could please start your question by identifying who you are, that would be great. In fairness to all attending, we ask that you are as concise as possible and to ask 1 question at a time. Any media attending will be given a chance to ask questions directly to myself or Todd, immediately after the meeting. Questions from the floor. So question at the front tier. Who's got a mic?

[ Elizabeth Barrett ] live in Napier. What percentage of revenue has come from live exports in 2021 or 2020?

I'll hand that to Todd or Kristen.

Sorry, can you hear me, okay?

Yes.

Just slightly less than 1% of revenue from live exports.

Okay. And you talked about growth in certain areas? And is that one area that the company is interested in growing?

It's not an area that we're actively pursuing growth in, but it's an area that is at the current time increasing through the port.

And last question, do you have any capability of saying no to that business?

At this stage, our focus is on making sure that we are ensuring the vessels that come through the port accounting for the live exports, meeting requirements on the New Zealand law in terms of the safe practices around handling those -- that livestock on one of those vessels. We are very conscious of the fact that there are people with views out there in the society that they don't support live export and we're actively working around supporting those people to express their views in a safe way. And equally, we are working through our sustainability development program, our strategy for the future, which will help to guide our decision-making around these sorts of contingent issues in the future. At the moment, there's a review underway by the government on the future of livestock exports. And so as I said earlier, we're currently making sure that people that are needing livestock exports to go through the port are doing that according to the law.

So you wouldn't take a view prior to the government forming their own decision?

At this stage, we're not looking to take a view, that would stop livestock exports, but we will be developing our, as I said, our sustainability strategy, which will help to inform what sort of views we take in the future, and the priority of order that we apply to those sorts of decisions as well. That's the state we're working through that.

And I'd just add one final point. The Board will be having a special workshop early in February, which we'll be looking at both diversity and inclusion across the port, right across the whole range and also looking at the ethical and sustainable governance issues. So it is an issue that is top of mind. And as Todd said, we are not just aware of the views of others that we have a certain sympathy towards that. We just have to be very careful that we don't put individual more views overriding legal requirements. So we've been very careful. Other questions? Question there. Kris has got the microphone.

I'm just wondering the cruise ship industry. Obviously, there's -- I think there was 86 ships came through or something of that nature. Is there going to be a top cap for ships entering Napier?

You mean a maximum number?

That's correct.

Just prior to, well, the lockdown period and during the IPO, we were discussing the fact that currently, the limit for Napier Port was around about 90 ships per annum until such time a 6 Wharf became available. Obviously, the cruise industry stopped for now. But once 6 Wharf becomes available, that cap of 90 effectively gets removed and we can handle a lot more cruise ships into the future. Our expectation though is that once cruise industry does reestablish, and I think it will, it will take a little bit of time. It will probably come back at a smaller level than what we saw previously and then just build over time. So I hope that answers your question.

Are you talking with Napier City Council about what Napier City can actually handle as well?

Yes, we are. We're always having conversations with Napier City Council and also with the Hawke's Bay Tourism Board as well, on what sort of infrastructure and planning that they're putting in place to be able to manage the number of passengers in particular movements on and off the port back into Napier City.

Any other questions from the floor? Joann, are there any questions online?

Yes, Alasdair. So it's more a comment rather than a question. It comes from [ Coralie van Camp ] who says very satisfactory result under the circumstances. Looks like a good team in charge.

You read that. Normally, we don't allow comments. It's just questions, but ones like that are fine. One more question. Jo has got the microphone for you.

[ Malcolm Reeves. ] I noticed you referred to the increase in capacity as a result of 6 Wharf, what sort of increase actually in capacity will that result in? You didn't quantify. And I also wonder -- and this is probably more tricky and requires a good crystal ball, when do you think you'll reach that capacity?

I'm going to ask -- straight to Todd.

Yes, good questions here. So it's a good question, and one we get quite often, particularly as we go around and see different investors and things around 6 Wharf. The real underlying principle for 6 Wharf is around actual parking spaces at the berth rather than necessary capacity of cargo going through. What we found is that the port was getting very congested and running out of parking spaces and, hence, the need to be able to bring 6 Wharf into play. Plus vessels were also getting bigger and bigger. So we're running out of the space to turn them around inside the port. 6 Wharf unlocks that problem for us. But in terms of overall capacity, what we do is we do a view of the future in terms of what we see in trade coming through Napier Port, both from a natural catchment as well as potential trade that sits outside of our region. And that would indicate that the terminal before we actually need to do anything additional other than 6 Wharf is, around about 450,000 containers per annum. And then we look at other alternatives such as those freight hubs and off-port facilities to support the terminal's requirements for growth. And then we're also looking at those feed and it works a road and rail on and off the port. And that's what some of the issues that you're seeing around other ports around the North Island today, predominantly suffering from is they actually -- it's not necessarily the port capacity itself, it's more the road and rail that sea networks that are feeding into them, that's driving the congestion issues that they've got.

Supplementary question. The microphone is on its way. Sorry, you got beaten.

[ Murray Tweak ] from Napier. Just following on from that point as far as infrastructure and logistics for the port is concerned, can you give me the port's opinion or position on the reopening of the Gisborne to Wairoa rail link? To me, I would have seen that the road is not a very helpful road for bringing freight down from Gisborne. And also if the railway is reopened that is a massive opportunity for reducing carbon emissions, which must be part of the philosophy of the port. Would you like to comment on where Napier Port sits as far as promotion of getting that rail link reopened?

Yes, sure. So the Gisborne to Wairoa rail link is the bit that's not open today. And our understanding is that, that rail link requires a significant investment to reopen it. Rail is a little bit like ports and that they gobble up capital pretty quickly, and it's very, very expensive. The reality is that the volume of cargo in that region doesn't support from an economic perspective, that the reopening of that line. That's not to say that there aren't other benefits from the potential reopening of that line, so as you point out, around the condition of the road, carbon emissions and things like that. It's going to be a politically charged conversation, I think. But from an economics, pure economics perspective, it doesn't stack up.

And I would just add a further comment on someone who grew up in Gisborne and you'll probably pick that straight away by my accent, 40-odd years ago, the railway line was there, and it was the most underutilized piece of rail in New Zealand. There was little railcar that ran back and forth. It was virtually empty. Now admittedly, the freight requirements have changed. But on a personal level, I would love to see that line reopened. I think it would be good for the region. But as Todd says, right now, it's not economic. There was a supplementary question back there.

Somewhat -- [ Malcolm Reeves ] again, somewhat connected to the question about the Gisborne line. I have been thinking about the Napier-Taupo Road and also the settle road redevelopment. And in general, to what extent is Napier Port growth possibly going to be limited by such infrastructure and the need for continuing investment in those? Because I was listening to you, say, you're looking for growth outside of the immediate region. And obviously, we're going to -- you are going to rely on road and rail links that, in some cases, they're not entirely good at the moment.

Yes. Yes, it's a good point, and it's something that we are constantly in discussions with the likes of Ministry of Transport NZTA on and local body governments, around the actual supporting road and rail links into and out of the Hawke's Bay into the port. The limitations are obvious on that Napier-Taupo Road. And I think anybody that's driven over it recently would probably know what sort of condition it's in. And I think there's good support from central government to back some additional funding into that road. The rail link in and out of our region is actually pretty good, and there's good capacity there to be utilized. The key constraint that we have at the moment is actually key rails rolling stock, an ability to supply rolling stock and to bring more cargo through on rail versus road. And I think there is a national level, I guess, a legacy, I would say, of under investment in terms of the roading and rail network throughout New Zealand, and I think we're starting to see the effects of that today, in particular, in the upper North Island and into in and out of Central Wellington as well. So we constantly have a caring for that. And in fact earlier this week, I was in Wellington talking to the Ministry of Transport about such issues.

There's a question at the front here. Can we get a microphone?

[ Mark Warren ] of Central Hawke's Bay. What contingency plans do you have for a big geophysical event like earthquake, tsunami. As exporters, we do really rely on your port or our port and it would worry me if -- I'm sure you have got plans, but to see that those exports put in jeopardy, particularly fish exports, and that's something that we do rely on a short time turnaround. So we'd rely on that. So what contingency plans do you have in the case of a large earthquake or tsunami?

Yes. Thanks, [ Mark, ] and thanks for opening up your farm earlier for me this year. Our latest development, as an example, [ Mark, ] is we're building the wharf through resilience Level 4, which means it should withstand an earthquake, that's 100,000 year event. That should be probably still standing and having walked down there every Friday with Alasdair and looking at the amount of reinforcing steel and conquering stuff that's going into that. I can assure you, she's a pretty solid piece of kit. That doesn't mean to say that our other parts of our wharves and our port are going to be to the same standard. And -- but we are constantly doing work to maintain those. We're putting in equipment to be able to monitor the condition of them plus give us indications on the condition of those assets. When there is a small shake, and we often get those sort of small shakes in Hawke's Bay. But equally, I think, as was shown with CentrePort, New Zealand, it's not -- if we get taken out, then probably other parts in New Zealand may also be taken out. And we've had 2 ports in New Zealand taken out recently, Middleton and CentrePort. And that's where the roles of other ports come in to be able to support the need of New Zealand exporters and importers to bring their products in and out. So it's one of those things that you can't completely plan for and guarantee in the outcomes, but the contingencies, other ports stepping up to support the Hawke's Bay, if needed. And hopefully good road and rail networks that are actually reasonably reliable to move things in and out around the country. The reality is, at the moment, as we're seeing with the upper North Island, the capacity doesn't exist to be able to move all the cargo out of Hawke's Bay on road or rail. So that would be a real challenge, and we'd have to end up prioritizing though I would imagine during those sorts of major events as to what we can move around, similar to what was done during the lockdown period when the government chose to prioritize food and essential cargo over nonessential cargo. I would imagine that would be the same case. And then you'd be reliant also on things like coastal vessels coming into support the region as was done in 1931, I believe, with the Navy and things like that coming to support. But yes, so we had to take it pretty much based on what sort of event was happening at the time.

There is one further question, microphone heading your away.

[ Perry Spiller, ] Hastings. I understand that Wakatu area is part of the expansion of hubs. And you've got a little bit of a controversy going on there with a residence group. How is that at the moment?

Yes. So the Wakatu development is an exciting prospect for us. It's the ports owned the land for about 16, 17 years. Always with the ambition and/or thought that in some stage in the future, we'd be able to use that as an inland port facility. During the lockdown period, the government initiated the shovel-ready's initiative, and we took the opportunity to put an application in because we see that there is a critical piece of infrastructure that's needed for the Hawke's Bay in the future. That preempted the conversation that we would otherwise have been having with the local community about that development plan. So it took them a little bit by surprise. And so if we're here to say we're now on the back foot a little bit with that community, but actively working to try and engage with them and talk to them about what does it look like? How would they be able to be, I guess, part of the development program and make sure that whatever we develop in that region, they support. We'd rather have their support than not. But our view is that longer term, it's something that Hawke's Bay will require. And actually, the whole Central and lower North Island will require and due to some of those infrastructure issues that we're just talking about before and looking ahead for the Central, lower North Island and Hawke's Bay in New Zealand in terms of what sort of would need in and Wakatu plays a key part in that. And if we had it today, all ready to go, I can tell you that we have a lot more Auckland imports coming through Napier and probably tearing back up or running around.

I think we had one further question down the front.

[ Mika Williams ] from Hasting. There's evidently a global shortage of containers. And when I drive from Hastings to the airport, I see a mountain of them. Presumably, they're the wrong sort. But I feel like saying we sell them off or use them?

Actually, we need a lot more. That container depo that you're referring to at the moment is actually quite empty for this time of year. So even though sometimes do what I think they look very pretty, they're very important for us. And we would be wanting to see a hell of a lot more of them in town this time of the year than we have today. There is a global, I wouldn't necessarily call it a shortage, but a redirection of containers to other markets throughout the world currently as different parts of the economy in the world has come out of lockdown, shipping lines are making hay while the sun shines and putting every stick of equipment and/or shipping capacity to routes and trades where they're making the most money. New Zealand is exposed at the moment in terms of equipment supply. And that's a real concern for us in the Hawke's Bay as we come into our peak season. We're working very hard with the shipping lines to ensure that there are contingencies and they've got these containers coming in to get our exports crucially back out. So it simplifies what your view is, but I'd actually like to see a lot more than there at the moment.

Okay. We got time for 1 more question. I'm hoping that given we've largely segued into general business, and it's kind of hard to control it. We'll have a very short general business session. Last question at the front, before we move on.

This is [ Vera Skin. ] I just wanted to talk about foreign currency, foreign exchange contracts and the foreign currency forwards. I note that you do the forwards only if they reach a certain threshold. And although the values are down slightly this year compared with last year, there are no foreign currency forwards. Is that a change in your thinking? Or have you changed the thresholds? Or is it that the thresholds are so high that you just haven't reached them?

Good question. There's more down to the timing of our return. So else there's a more proportion of that procurement in foreign currencies. So as you know there is the timing of balance sheet.

Okay. I'm now going to move on to the formal part of the business matters requiring resolution, which are outlined in the notice of meeting. Shareholders on Link's virtual meeting platform will be able to test their vote using the electronic voting card received through an online registration as validated. As detailed earlier, online shareholders will vote by clicking Get Voting Card to the online meeting platform. Please refer to the online virtual meeting portal guide or use the help line 0 (800) 200 220 if you require assistance. Online voting will remain open until 5 minutes after the conclusion of this meeting. Shareholders may ask questions after each formal item has been put forward to the meeting. We'll start with questions raised by those in the room before moving to any questions which have been submitted online. Each resolution set out in the notice of meeting is to be considered as an ordinary resolution, and as such, must be approved by a simple majority of the votes cast by shareholders entitled to vote and voting on the resolution. Your Board supports each of the resolutions and intends to vote undirected proxies in favor of all resolutions. The outcome of proxy votes will be displayed for your information before voting on the resolution. I move as an ordinary resolution that Diana Puketapu be reelected as the Director of the company. Non-Executive Independent Director, Diana Puketapu, retires by rotation in accordance with the provisions of the constitution of the company and being eligible offers herself for reelection. The Board fully support the reelection of Diana. I now invite Diana to address the meeting.

Thank you, Alasdair. [Foreign Language] Good morning to all of you. I was appointed to the Napier Port Board in 2017, at a time when 6 Wharf was still to go through resource consent process. And as you've heard today from Todd that process is now well underway and on track. During my term, my first term with Napier Port, I had the shared responsibility and privilege, along with my other fellow board members to oversee the IPO process from conception through to successful implementation. If an IPO and a major wharf weren't enough this year, we saw the arrival of COVID-19, which took us through unprecedented waters to navigate. So I've had a fairly eventful first term. Should I be reappointed for a second term, my areas of focus will be continuing our culture of care that has been fostered at Napier Port, something that's really important and more significantly highlighted in a year such as the one we've just had. Driving operational resilience and efficiency is critical, particularly given the uncertainty in the world and the challenges we're seeing in the industry at this point in time. And supporting the adoption of our sustainability strategy. These areas of focus will continue to support the people and the economy of Hawke's Bay and ultimately, the future growth of the Central and lower North Island. In closing, I was born here in Napier, in fact, on Hospital Hill overlooking the port. Although I now live outside the Hawke's Bay, I enjoy my connection to this region and hope and will be honored to be reappointed for a second term. [Foreign Language]

Thank you, Diana. Are there any questions from the floor concerning the motion? No questions from the floor. Are there any online questions? Brendan? No. Okay. The proxy votes for the Resolution 1 are now shown on the screen. So please, mark your voting cards in the way you wish to vote by taking for, against or abstain in the appropriate place on the voting card. [Voting]

All done? Quick tick. Okay. I move as an ordinary resolution that John Harvey be reelected as a Director of the company. Non-Executive Independent Director, John Harvey, retires by rotation and being eligible, offers himself for reelection. The Board fully supports the reelection of John. I now invite John to address the meeting. John?

Thank you, Alasdair, and good morning, ladies and gentlemen. It is the privilege to put myself forward for your support to continue as a Director of Napier Port. You have a strong Board representing your interest of Board Napier and I'm committed to remaining part of it. I was delighted to have the opportunity to become a Director of Napier Port last year prior to the initial listing on the stock exchange. I had a passion for the industry, and I believe I had relevant experience to be able to add to the Board and to the port. In addition to my General Director experience, which is outlined in the notice of meeting, I have been on the port previously of Port Otago for 9 years. And prior to that, in my professional life, I had a significant involvement with the Port of Tauranga, including being involved in the initial listing. I think that was around 1989. In addition, I had been involved in a number of other new listings, both as a director and in my professional life. As we've heard today, COVID-19 has made for a very difficult year for everyone, including Napier Port. But despite that, we've come a long way and delivered on most of what we committed to do at the time of the listing last year. We've probably come through stronger and better equipped in all respects to take on the exciting opportunities that are remaining in front of us. And congratulations go to Todd and his team for the efforts and results that achieved this year. I think you've certainly been well served by them, and I might add by the Board. I can assure you I have that same passion that I had last year and enthusiasm and I look forward to and appreciate your continued support as we can continue on the journey to facing the challenges that remain ahead of us. Thank you.

Thank you, John. Are there any questions from the floor concerning the motion? No. No questions online? Brendan, thank you. So the proxy votes for Resolution 2 are now shown on the screen. So again, please mark your voting cards the way you wish to vote by ticking for, against or abstain in the appropriate places on the voting card. [Voting]

All done? Resolution 3 is to authorize directors to fix the auditor's remuneration for the ensuing year. In accordance with Section 70 of the Local Government Act 2002, Napier Port Holdings Limited as a public entity as defined in Section 4 of the Public Audit Act 2001 and in accordance with that act, the Auditor General is the auditor. The Auditor General has appointed Ernst & Young to undertake this audit on its behalf. The proposed resolution authorizes the Board of Directors to fix the remuneration of the auditors for the ensuing year. Are there any questions from the floor concerning the motion? No. And there's presumably nothing online. So proxy votes for resolution 3 are now shown on the screen. And again, I probably don't need to tell you where to tick. [Voting]

You've all ticked. Ladies and gentlemen, our registry link market services will now move through the room to collect your voting cards. And as I said earlier, the outcome of the votes, if they're available in time, they'll be announced while we're having refreshments. If not, it will be available on NZX platform and the Napier Port website as soon as they are available. There's one down here. Just over there, Brendan, if you can... Like sending our collection plate around the chart, except you're all much more keen to put stuff in. So -- has everyone managed to get their voting card into a voting box? Or still one at the front here. Brendon is coming, steaming down to grab it. No others? Okay. The floor is now open for general business. I'm hoping that we've covered a lot of it already. Can I remind you that when I call for questions, please wait for a microphone and then clearly state your name before asking the question. To be fair to all shareholders, I ask that questions be as concise as possible and please be considerate to other shareholders questions to ask questions. For the sake of good order, shareholders should speak once -- should only speak once. We will take questions from the floor first and then go to our online participants, although I am going to read the 3 that were mailed in before -- well before this meeting, and I'll deal with them first, and then we'll deal with questions on the floor.

So the first question is from [ David Antony Lavet ] and he says -- it states that as of 30/09/20, no directors or entities related to them had interest in shares in the company. Frankly, this is appalling that the Board of Directors is saying that they don't believe in the company. Why is it not compulsory for all directors to purchase in shares what their directors' fees are in 1 year? It's an interesting perspective. Just for the avoidance of any doubt, in an IPO it is very, very normal for all directors to take a reasonable investment in the business. We chose, as a Board, not to do that because we did not want to be seen to personally profit from a partial privatization of a regional asset. Now a number of major investors both here and in Australia, initially, were skeptical about that. And yet when we explained the rationale, we got a very big tick on their ethical scoresheet for that. Since then, it is entirely at the discretion of Directors as to whether they choose to invest in shares or not. I have to say in a publicly listed company, the timing issues have made life very challenging for investments. But the reason it's not compulsory is because we live in a democracy. We have a question from [ Stephen Van der Linde. ] Will there be interim and final dividends paid from 2021 onwards? The decision on interim dividends that we made on the day as will the decision on final dividends, it is worth noting that our policy hasn't changed. And our intention is to return a stable and growing dividend return to shareholders. The last written question we received from [ Michael Lahey and Winfield Lahey ]. Are the Board actively seeking business available due to Port of Tauranga overflow of containerships? The short answer is yes. Reality is we're always looking for new business. And as a philosophy, we never want to waste a good crisis. So we're doing everything we can to optimize our position in this current situation. Now questions from the floor. There's one back there. Microphone is just coming.

[ Michael Mitchley ] from the Shareholders' Association. I have a question. But first, as this is the first opportunity we've had to be here, our congratulations and compliments to the Board, particularly having endured such a tough first year, you have done very well. And it has been an example to others and how to conduct business in a proper way. I do have a question and it was highly surfaced this morning when I heard on the media, the proposition surely tongue in cheek, but maybe not, that the intra Ireland theory should now be coming to Napier. And I will not be surprised if you say that's news to you, but I'd like to hear that from your own.

It's absolutely -- it was news to me when I walked down here this morning because I heard Todd talking about it, and I'll let Todd respond.

It's not news to me, but it doesn't mean we're going to see them anytime soon. There was a conversation held with KiwiRail earlier in the year about the potential for Napier Port to act as a backup for Wellington, which we can't actually do. So they came and did a discussion with us about their new size of vessels, the ability for our port to handle and roll-on, roll-off capability, which we can do on to, particularly for in our port, and that would be a conversation about the resilience of New Zealand's infrastructure should another quake take out the Interislander Ferry, they picked in the Wellington today. So yes, it was a conversation that occurred, but it wasn't quite the way it was portrayed in the media this morning, no.

Just to add to that in the 7 years I've been involved in the port with at least twice had approaches about being a backup. So I don't think it's going to happen anytime soon. Any other general business questions? One here at front. Microphone steaming your way.

[ Perry Spiller ], Hastings. The endorsement of the 2 directors standing for reelection by the Board, does that indicate that the Board does not look further afield? It could be seen as a slightly cozy arrangement. And is the Board denying itself the opportunity of other people who may have valuable skills and experience to add to the Board?

It's an interesting question. The reality is that boards are always looking for new people, new skills and diversity of thought. But as Chair, I also have to balance the need to have a decent succession plan in place. John, as you heard just joined the Board recently. He joined because of his port experience and has very, very significant listed company experience and experience going through an IPO. That's a skill set that we have valued so highly, that we've asked him to stay on for a further term. And the Board is absolutely thrilled to have John continuing to stand. Diana has proved herself a fantastic board member. She does bring diversity of thought. And we're partway through a process. We did a Board self-assessment at the end of last year -- or the end of this year, but -- we're losing track of days -- where we also did a skills assessment against where we thought the next set of skills would be needed. That's a process which we will progress through the coming year. And we'll be looking to fill any skill gaps that we've got. But it is a matter of just an orderly process to make sure that we don't lose institutional knowledge during transitions. And it's something that I've had very much in my mind over the last 7 years. Any online questions, Brendan? No. Okay. In concluding our Annual Shareholders' Meeting for the 2020 financial year, I'd like to take the opportunity to thank a few people for the key role they played in our success over the last year. On behalf of the Board, I extend thanks to all shareholders, our region and the cargo owners who entrust their product to Napier Port. And to the entire Napier Port team, who led by an excellent senior management team, have delivered an outstanding result. As I call the meeting to a close, I'd like to invite you all to a light refreshment in the exhibition hall. We also have some of our people available to answer any questions about port operations. And of course, our directors will be there to answer governance questions or any other questions you've got. I do have one slightly depressing piece of news just to finish this off. We were hoping, as I said right at the start, to have the bus tours starting at 12 and rolling through. Unfortunately, we've had a fire on a ship on 4 Wharf. And it's just not going to be practical to run some tourists through the port while we've got potential emergency underway. So I really do wish that the timing had been better because I know a lot of you, it is the one chance in a year you get to look at the port. And I think for those who've registered, we should -- a suggestion of goodwill, make an effort to organize bus tours through the port early in the new year at a time that slow. Because for many people, it is a really important opportunity to see the port where you've invested your money. So I'd like us to do what we can to remedy that situation. And so I don't need to tell you, but you need your Photo ID to get on the bus because there ain't no bus. Okay. And that concludes the meeting. And now please feel free to go and grab some refreshments.