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ANNUAL REVIEW

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FINANCIALS

Chairman’s Report

On balance 2014/15 was a good year

Dividend and net profit performance

We have paid our shareholder, Auckland Council Investments Limited, a dividend of $41.7 million for the 2014/15 financial year. This compares with last year’s dividend of $66.6 million, which included a one-off tax credit payment of $16.4 million.

A dividend of $41.7 million is a substantial lift compared to recent years and is a significant contribution to the City. It equates to $88 per Auckland household, or around 3.75% of the average residential rates bill. This performance belies the myriad of challenges faced during the past financial year.

The net profit after taxation was $63.2 million, down 14.6% from $74.0 million the previous year largely because of one-off costs. This represents a solid performance considering challenges faced.

$41.7M

SHAREHOLDER dividend for the 2014/15 fy

Revenue and volumes

At the beginning of last year we were faced with Maersk’s decision to withdraw its business from Auckland. This was a significant loss of volume and revenue but in the year the management team, led by Tony Gibson, has replaced that volume and revenue from on-going operations was up 2.1% from $211.0 million to $215.4 million.

Prospects for the coming year seem subdued, particularly with softening international dairy prices and a falling New Zealand dollar. We have seen an immediate softening in some import trades and it is uncertain how this year’s import season will hold up. Car volumes remain strong, although we are forecasting slower growth this year, as well as a decline in some bulk commodities as a result of a slowdown in the Chinese economy.

Our container terminal is now the most efficient container operation in Australasia in its crane, ship and vessel rate and remains the largest in New Zealand. Our efficiency helps make imports cheaper and exports more competitive.