Thank you, Te Kaha, for your mihi or TK as we know you. Tēnā koe, Te Kaha. Me te mihi tuatahi o tēnei kaupapa e tīrana, kia kotē, kua tīmē. Ta mai tai wan. Kāti kaupapa nāē, kotē, hoki, i runga, ētī i pera ngi, nō reira, tēnā koutou, katoa. To those who've come on this occasion and to those joining online, formal greetings to you all. Kia ora, good morning everyone, and welcome to Napier Port's annual shareholder meeting. My name is Blair O'Keeffe. I am the chair of the Napier Port Board, and I will be running today's meeting. Also presenting today will be Todd Dawson, our Chief Executive, and Kristen Lie, our Chief Financial Officer. Before we get started, a few housekeeping messages. In the unlikely event of a fire, please exit through the way you came in and congregate outside. In an earthquake, stop, drop, and hold.
If the earthquake is long and strong, once the shaking stops, please exit the building and make your way up Bluff Hill immediately across the road. Toilets are just outside the main door and off the exhibition room, and I'd please ask you now to turn your mobile phones to silent if you haven't done so already. Please note our standard disclaimer, which is also available on our investor center of the Napier Port website. I'd like to introduce you to my fellow board members, Stephen Moir. I'll just get you to stand up and wave to the room. Debbie Birch, Vincent Tremaine. John Harvey is absent today. Unfortunately, he had a clash with another board meeting, so he sends his apologies. Kylie Clegg, Dan Druzianic, and Hamish Stevens.
Our senior management team, Chief Executive Todd Dawson, Chief Financial Officer Kristen Lie, Chief Operating Officer Adam Harvey, and our General Manager of Commercial, David Kriel, General Manager of Assets and Infrastructure, David Broad, General Manager of Port Optimisation, Chris Wylie, and our People, Capability, and Engagement Manager, Laura Chandler, is away on leave at the moment. Our auditors, EY, are represented today by Stuart Mutch. I'll just get you to let everyone know who you are because I'm sure there'll be questions for you, Stuart. We will have a short presentation on the annual results before we take your questions. For our shareholders attending in person today, you may ask questions and vote as usual on the voting card given to you at the registration desk. Shareholders attending online will be able to ask questions and cast their vote online.
Please refer to the virtual meeting guide or contact the team at MUFG Pension & Market Services on 0800-200-220 if you require any assistance. I encourage shareholders who have questions relating to the business of the meeting to send their questions through as soon as possible. We will conclude the meeting with general business. Please note that only shareholders, proxy holders, or shareholder company representatives may vote or ask questions. After the meeting, please join us for light refreshments and a cup of tea, which will be served just out in the back here. I would like to thank our shareholders for their participation in today's meeting and now for the formalities. The notice of meeting has been sent to shareholders and other people entitled to receive it. I've been advised that we have a quorum present, and on that basis, I am pleased to formally declare the meeting open.
Proxies have been appointed for the purposes of this meeting in respect of 160.6 million shares, representing 80.3% of the total number of shares. My fellow directors and I intend to vote all discretionary proxies we have received in favor of the resolutions as set out in the notice of meeting. The format for today's meeting will be as follows: an address by me, the Chief Executive, and then the Chief Financial Officer, and then we'll take shareholder questions on the presentations and annual report and financial statements, and then we will conduct formal business of the meeting, including the resolutions of the meeting, and we will conclude with general business and shareholder questions. Voting on all resolutions will be conducted by way of poll. I'd now like to give you an overview of the 2025 financial year.
I'm very pleased to report that the 2025 year has been another milestone year for Napier Port, building on the strong recovery and growth we achieved last year. A more stable trading environment, combined with our continued operational focus, has contributed to a strong operational and financial performance. Across the region, key primary sectors have performed well, supported by a favorable growing season and improved operating conditions. Our diverse trade base, infrastructure, and skilled team have ensured Napier Port continues to deliver for our customers, our community, and our shareholders. This year, we achieved new financial highs for total revenue, results from operations, net profits, and dividends paid to our shareholders. We have also remained vigilant in our commitment to safety and well-being, and we are pleased to report another year without any serious harm incidents.
During the year, we have continued to make strong progress on our long-term transformation and investment program, which you'll hear more about later. Cornerstone projects under the Napier Port Container Terminal Transformation Initiative, the joint venture dredging with Port Otago, and preparations for next-generation plant and mooring systems are all advancing, strengthening our capability today and positioning the port for the future. Our cargo base is diverse and resilient, with container growth this year helping to balance softer bulk and cruise volumes. This diversity is a strength that serves our business very well and provides a strong platform for future growth. Looking ahead, operating conditions permitting, Napier Port is well positioned for sustained volume and earnings growth. We have strong balance sheets and ongoing focus on performance and capability and a clear strategy for long-term value creation for our shareholders, our customers, and our region.
Todd will now take us through this year's results.
Thank you, Blair. Good morning, everyone. Thank you for taking the time to attend our annual shareholders meeting today. This year has been one of strong performance and increased container activity, achieving record revenue supported by more stable trading conditions across our region and our customer base. Good growing conditions contributed to an early and strong apple harvest and ongoing recovery in fresh produce. Pan Pac's pulp and timber operations returned to full production, lifting volumes through the port. We also saw higher restow and transshipment activity as shipping lines adjusted their rotations around the New Zealand coast. Cruise activity eased from last year's peak but remained solid, with 78 vessel calls bringing welcome tourists into the region. With the uplift in container volumes and a shifting mix across trades, activity on port increased throughout the year.
This momentum brought its own pressures at times, including compressed shipping schedules, weather-related disruptions, and some crane availability and maintenance challenges that we had. By applying our whole-of-port approach to resource planning, we were able to maintain our operations through these fluctuations effectively and maintain service levels during peak periods. The team's flexed operations in real time, reallocating personnel and equipment, adjusting our berthing plans, and working closely with customers as volumes moved between cargo types and services. This coordinated model is now well embedded across the port and delivers ongoing value by improving reliability, responsiveness, and our overall operational performance. At the same time, we have continued to invest in strengthening our capability.
This includes preparing for the Napier Port Transformation Program and the phased introduction of battery electric autonomous trucks, continued standardization and optimization of plant and equipment, and further work to support crane performance and operational reliability ahead of our next season. Together, these operational improvements and capability investments are helping us convert higher activity into greater levels of performance and efficiency and underpinning the record financial result delivered this year. Having delivered another strong year for Hawke's Bay and for shareholders, we are strongly motivated by what we see as Napier Port's growing capability under normal operating conditions and confident in the momentum we're building for the years ahead. As we do look ahead, our focus is positioning Napier Port for sustainable long-term growth.
During the year, we completed our refreshed 10-year strategy out to 2035, providing clear direction for how we continue to support our customers and strengthen our role in the wider supply chain. In the near term, we expect to see continued momentum across our existing cargo base, supported by more stable trading conditions and strong engagement with our customers. Our investments in infrastructure, plant and equipment, upgraded systems, our people, and the mix of container, bulk, and cruise services gives us a very solid foundation for the next phase of Napier Port's growth. We're also extending our reach through delivery to customers of more integrated supply chain solutions. Our Viewpoint Supply Chain service continues to expand its network and customer base across the North Island, supported by the Manawatu Inland Port and our strong partnership with KiwiRail.
The collaboration with Earnslaw One and KiwiRail to move logs by rail from the Karioi Forest provides a reliable channel to market following the WPI mill closure, while also giving customers a more efficient, lower-carbon transport option and strengthening resilience across the wider supply chain also. We're also progressing the construction of our joint venture dredge with Port Otago. Once operational, it will enhance our berth availability, support future vessel demands, and strengthen our long-term port resilience and strategic positioning by deepening our channels to consented depth levels. Another focus area is evolving and strengthening how we work to support future customer needs. This includes improving the systems, processes, and customer touchpoints that underpin day-to-day operations and preparing for new technology and ways of working that will enhance our reliability, our efficiency, our scalability, and our service quality.
Finally, we will continue to take a disciplined approach to capital and cost management, making sure our investments are well sequenced, our cost to serve remains tightly managed, and we preserve the balance sheet strength needed for supporting future opportunities also. Together, these priorities position Napier Port to grow alongside and with our customers, strengthening its role in the wider supply chain and continuing to deliver long-term value for the region. Good momentum also continued towards embedding sustainability across Napier Port this past year. The way we make decisions, invest, and work with customers and partners all have sustainability built in, and this year's progress reflects that integration right across the business. We achieved Toi tū EnviroMark Gold accreditation, recognizing the strength of our environmental management system and our commitment to continual improvement in this space.
We also completed our fifth climate change report and our second report that aligns with the New Zealand climate standards supported by independent third-party emissions verification. Current and planned investments in efficient, lower-emission equipment are an important part of our emissions reduction pathway, helping position Napier Port for its future operating model as it becomes sensible and economic for the port to do so. It is pleasing to see improvements in both our employee engagement and also our customer satisfaction results this year, reflecting the work that's been underway to strengthen Napier Port's culture and build shared values across the organization. As part of this, we progressed our culture refresh, a core foundation of our refreshed 10-year strategy that brings greater clarity to the values and behaviors that guide how we work and deliver for our customers and our region.
Finally, in recognition of our people's contribution to this year's performance, our employee recognition scheme delivered a payment of NZD 4,314 per full-time employee, paid in a mix of cash and Napier Port shares. I'll now hand over to Kristen Lie, our CFO. Thank you.
Morning, everybody. Thank you, Todd. I'm pleased to be able to provide a financial report to accompany our audited financial statements for the 2025 financial year. As you heard, it's been another strong year of financial performance, with revenue growth supported by the mix of activity moving through the port. We handled just over 5.1 million tonnes of total cargo, an increase from last year as activity continued to stabilize across our trades following the relative volatility in recent years. Within this, we saw increased container activity, offsetting lower bulk cargo and cruise activity when compared year on year.
We processed 250,000 TEU, or 20-foot container equivalent units of containerized cargo, and 3.4 million tonnes of bulk cargo, supported by more consistent export flows throughout the year and a strong primary sector export season. We welcome 78 cruise vessels, marking our second largest cruise season on record. These volumes, together with our operating approach across the port, have translated into a new milestone revenue result. Revenue grew strongly, with total revenue increasing NZD 16.3 million, or 11.6%, to NZD 157.7 million. The increase was led by container services, which grew by NZD 15.2 million, supported by 9.1% higher TEU volumes and higher average revenue per unit. Bulk cargo revenue increased by NZD 2.3 million, despite modestly lower log volumes, reflecting changes in cargo mix, tariff increases, and higher marine services revenue. Cruise revenue was slightly lower, decreasing NZD 0.8 million due to fewer vessel calls compared with the prior year.
Across all three service areas, revenue performance was supported by higher average revenue per unit, driven by cargo mix changes, tariff adjustments, and contributions from supporting service areas such as our Port Pack and container depot operations. These revenue improvements reflect the benefits of our ongoing investment in infrastructure and services and the stronger operating leverage we have built into the business over recent challenging years. Turning to our financial performance for the year, our benchmark financial operating result metric, the result from operating activities, increased to NZD 64.2 million, up 23.5% from NZD 52 million last year. This builds on a significant year in 2024 and represents 72% growth over the last two financial years. In the year, revenue growth of NZD 16.3 million exceeded the increase in operating expenses of NZD 4.2 million, reflecting cost discipline and the strong ability to convert higher activity into higher operating profit.
During the year, we reached a final settlement for our Cyclone Gabrielle insurance claim, which added NZD 7.5 million to our pre-tax profit. Driven by the strong operating result underlying net profit after tax, excluding the effect of abnormal insurance receipts, tax law changes, and asset write-downs, increased 36.5% to NZD 28.3 million. Reported statutory net profit after tax, as presented in the slide to the right, increased 24.4% to NZD 30.9 million. Over two years, this represents growth of 86%. Overall, the 2025 financial results demonstrate solid revenue growth, disciplined cost management, and healthy growing profitability. Finally, an update on our capital management and debt profile, which remains in a strong position. With strong underlying net cash flow from operations exceeding investment and financing cash flows, we ended the financial year with gross debt of NZD 107 million, reflecting NZD 2.5 million reduction.
In the short term, we expect that our gross debt balance will rise modestly as we fund our current program of plant and equipment replacements and the strategic investments that we have outlined today. We expect higher debt levels to be comfortably manageable. At the year end, we had available NZD 73 million of undrawn banking facilities, providing flexibilities to support our future investment program, and our total debt to EBITDA, or debt coverage ratio, was one and a half times, demonstrating a conservative balance sheet and the benefits of growing operating cash flow. During the year, we renewed and extended our lending arrangements with our banks. These updated facilities provide improved terms and introduce sustainable loan provisions that support investment into eligible assets under our sustainable finance framework, which we introduced during the year.
Our financial position has supported the board's decision to pay fully imputed total dividends of NZD 29 million, or NZD 0.145 per share, for the 2025 financial year. This includes a special dividend of NZD 0.05 per share paid in June and the NZD 0.08 per share final 2025 dividend that shareholders will have received yesterday. I'm going to hand back over to Todd.
Thank you, Kristen. And looking ahead, we remain confident in Napier Port's outlook and ability to deliver sustained performance and long-term value. International trading conditions remain mixed, but the fundamentals of our region's core food and fiber export sectors continue to be very solid. We're seeing improved stability across the supply chain, easing inflation, and more favorable macroeconomic conditions, all of which support confidence for cargo owners as we move through to the new financial year.
Across the port, we continue to invest in the capability and reliability of our core operations, including the renewal and replacement of key plant and equipment and ongoing delivery of our long-term asset program. These investments, alongside investment in our people and systems, ensure we are well positioned to perform consistently, support growth where it occurs, and build the capability needed to prepare for the next phase of our transformation. Alongside this, we are modernizing our operating systems, preparing the port for future operating modes, and ensuring we have the capacity and resilience required to support growing regional demand. Trading for the new financial year to date is broadly in line with our expectations. Cruise visits to date, plus remaining bookings, sit at 59 calls for the season after weather impacted one call earlier this month.
We're seeing steady log export volumes and encouraging signs from early crop indicators, alongside continued investment in the horticulture sector, which provide confidence as we head into the new season. We expect the momentum in our earnings performance to carry through to financial year 2026, supported by the stable trading conditions and the ongoing investments we are making in assets, people, and systems. We are reaffirming our guidance for the 2026 financial year provided alongside our annual results for an underlying result from operating activities of between NZD 70 million and NZD 74 million, assuming the current market conditions do continue. With a strong balance sheet, Napier Port is well positioned to continue investing in its core operations, support our customers, and maintain a growing dividend profile for shareholders.
Finally, I would like to acknowledge and thank my entire Napier Port team, as well as our board, for their commitment and contribution throughout this year. I'll now hand back over to Blair. Thank you.
Thanks, Todd and Kristen. We've now concluded our presentation on the annual results, and I'd like to open the floor to questions on the presentation, the annual report, and the financial statements only at this stage. You'll have the opportunity to ask questions on the resolutions and general business later in the meeting. If you have a question, please raise your shareholder card, and one of our team will bring you a microphone. Shareholders participating online through the virtual meeting website are able to submit their questions online, and we will answer those after answering questions from the floor. If you could start your question by identifying who you are, that would be appreciated.
For fairness to all attending, we ask that you're as concise as possible and only ask one question at a time. For any media attending, you'll be given a chance to ask questions directly to myself or Todd following the meeting. Are there any questions from the floor? A question here?
Morning. What's the proportion of the China?
Sorry, can you just clarify yourself?
Perry is the name. The proportion of the China and Westpac revolving credit facilities, etc., how are they shared?
It's the majority with ICBC. Out of the credits that we've added, we've got NZD 50 million, NZD 30 million to Westpac. Does that answer your question?
Yes. Thank you.
Are there any further questions from the floor? It appears there are no further questions from the floor. Are there any questions from shareholders online?
Yes, we have one question from shareholder Coralie van Camp. Congratulations.
That's a very nice financial result, and good that your full-time employees are rewarded with a payment of NZD 4,314 in cash and shares. What proportion of cash to shares?
I'll give Kristen to answer that one.
Just off the top of my head, I think roughly two-thirds was in gross terms was cash and roughly one-third in shares.
Any further questions online?
There are no further questions from our shareholders online.
Okay. At this stage, there's no further questions on the presentation, annual report, or financial statements. So we've now come to the formal part of the meeting covering matters requiring resolution, which are outlined in the notice of meeting. Shareholders may ask a question after each formal item has been put forward to the meeting.
Each resolution set out in the notice of meeting is to be considered an ordinary resolution and, as such, must be approved by a simple majority of votes cast by shareholders entitled to vote and voting on the resolution. Your board supports each of the resolutions and intends to vote all undirected proxies in favour of all of the resolutions. The outcome of the proxy votes will be displayed for your information before voting on all of the resolutions. Shareholders on the MUFG Pension & Market Services virtual meeting platform will be able to cast their vote using the electronic voting card received when online registration is validated. Online shareholders will vote by clicking "Get a Voting Card" in the online meeting platform. Please refer to the online virtual meeting portal guide or use the helpline 0800 200 220 if you require assistance.
Online voting will remain open until five minutes after the conclusion of the meeting. To the first resolution, I move as an ordinary resolution that Hamish Stevens be elected as a director of the company. Independent director Hamish Stevens was appointed as a director by the board during August 2025. In accordance with the provisions of the constitution of the company, he retires at this meeting. Excuse me. And being eligible, he offers himself for election. The board fully supports the election of Hamish. Hamish will chair our audit and risk committee, which we just approved this morning, replacing Stephen Moir, who retires from the board today. Hamish brings considerable skills and experience to Napier Port, including governance experience across NZX listed companies, which he will outline shortly. I'll now ask Hamish to speak to the meeting.
Excuse me. Thank you, Blair.
My name is Hamish Stevens, and I am honored to have been nominated for election as a director today. As Blair mentioned, I joined the board, Napier Port board, in August of this year. I was delighted to join the board. The company plays a very important part in the economic life of the region. It's a key link between Hawke's Bay, the lower North Island, and its world markets. It is critical that we continue to remain sustainable by creating shareholder value and continuing to provide a great level of service to all our regional communities. I'm looking forward to contributing to the ongoing success of Napier Port.
I believe I bring to the board substantial management and governance experience, including listed company experience both in New Zealand and Australian listed companies, and on, I think, almost all of those listed companies chairing the audit committee at one time or another of those companies. I'm currently on the board of two other listed companies, Radius Residential Care based in Auckland, and Embark Education Limited based in Queensland, Australia. I also have experience in freight and port management and governance experience. I started off my career in a freight company, so I have come back to that freight and port management experience, senior finance management roles in a number of large New Zealand companies as chief financial officer of Heinz Wattie's, of Tip Top Ice Cream, and DB Breweries, and also experience in infrastructure businesses generally.
My experience includes working in large New Zealand businesses in a senior management capacity and in governance across a large number of companies spanning several sectors. I believe Napier Port has great opportunities ahead of it. It is well positioned. It has a strong management team and a clear focus on customer service, innovation, sustainability, and productivity. Our aim is to continue to grow value for all our shareholders, and that value will come from a strong focus on servicing our customers well each and every day, developing strong relationships with our local communities, and keeping our teams safe and well. Now, I believe my skills are relevant to the strategic objectives and challenges of the company, and I'm looking forward to continuing to be a part of Napier Port's ongoing growth and development. I welcome your support for election. Thank you.
Yep. Thank you, Hamish.
Are there any questions from the floor concerning the motion? If not, are there any questions online?
There are no questions on this matter from shareholders online.
Thank you very much. Proxy votes for resolution one will now be shown on the screen. Thank you, Hamish.
Thank you, Blair. Thank you. Thank you.
For those in the room, please mark your voting cards in the way you wish to vote by ticking for, against, or abstain in the appropriate place on the voting card. Right. Next resolution. I move as an ordinary resolution that Kylie Clegg be re-elected as a director of the company. Independent director Kylie Clegg retires by rotation in accordance with the provisions of the constitution of the company, and being eligible, offers herself for election. The board fully supports the re-election of Kylie.
Kylie brings a strong and very insightful skill set to Napier Port, which she will talk to shortly. I now invite Kylie to speak to the meeting. Thank you.
Tēnā koutou katoa, ko Kylie Clegg tēnā koutou. I had the privilege of joining the Napier Port Board in August 2022 just as Te Whiti or 6 Wharf opened. I bring governance and leadership experience to the port, particularly with large infrastructure transport programs, and have just come off what I can only describe as an intense 12-month governance experience as Deputy Commissioner of Health New Zealand, governing, amongst other things, an extremely large capital program with plenty of challenges. My first term with the port saw the Hawke's Bay, the port and Hawke's Bay region, face the devastation of Cyclone Gabrielle, which came on top of a tough few years of navigating the impact of COVID on the business.
I was in awe of the resilience and sense of community the region, people, and port demonstrated to bounce back. If I'm re-elected to the Napier Port Board, I'll focus on working hard to drive efficiency and productivity at the port to benefit our customers and shareholders. This will involve opportunities through our transformation program and capital replacement. Health, safety, and well-being of our people at the port is something that's very important to me. Our people work in an environment interfacing with heavy machinery where they face significant daily risks. It's imperative upon all of us that we do absolutely everything to mitigate those risks to ensure our people get home safely every day. I'm proud to be part of the Napier Port team and would really appreciate the opportunity to serve as a second term on the board to help support the Hawke's Bay people and economy.
Nereira Tinakoto Kato. Can I stay here?
Thank you, Kylie. Are there any questions from the floor concerning the motion? Are there any questions from shareholders online concerning the motion?
There are no questions on this matter from shareholders online.
Thank you, Kylie. Proxy votes for resolution two will now be shown on the screen. For those in the room, please mark your voting cards in the way you wish to vote by ticking for, against, or abstain in the appropriate place on the voting card. We move to the next resolution, resolution three. I move as an ordinary resolution that Dan Druzianic be re-elected as a director of the company. Director Dan Druzianic retires by rotation in accordance with the provisions of the constitution of the company and, being eligible, offers himself for election. The board fully supports the election of Dan.
Dan is a non-independent director associated with Hawke's Bay Regional Investment Company, our majority shareholder. Dan brings deep financial and commercial acumen to the board and a deep understanding of our local community and businesses. I now invite Dan to address the meeting.
Kia ora katoa, Kato. Season's greetings, everyone. My name is Dan Druzianic. With Kylie, I joined the board in August 2022. It's been an honor to serve on the board over that time, and today I seek your support for another term. In my opinion, we have a very strong board and very strong executive team, and our results show that out today. With Stephen Moir retiring, Blair and myself are the two remaining locals on the board. I believe local representation is important.
The port is a vital strategic asset for the region, and it is imperative that we have healthy relationships with our wide range of local stakeholders. My 20 years of experience as a chartered accountant in Hawke's Bay has given me many relationships at a grassroots level and has given me an understanding of the region's businesses and port customers. Qualifications: I have a BCom Ag and a post-grad diploma from Lincoln University many years ago. I'm a member of the Institute of Directors and a fellow of the Institutes of New Zealand and Australia Accounting Society. My current governance experience includes several boards at the Unison Group and Bostock New Zealand Group, and I recently retired from a nine-year stint as the chair of the Hawke's Bay Regional Council Investment Company. Thank you for your consideration.
Thank you, Dan. Are there any questions from the floor concerning the motion?
Are there any questions from shareholders online concerning the motion?
There are no questions on this matter from shareholders online.
All right. Proxy votes for resolution three will now be shown on the screen. For those in the room, please mark your voting cards in the way you wish to vote by ticking for, against, or abstain in the appropriate place on the card. Okay. At this point, I'd like to convey my very, very sincere thanks on behalf of the board, both current and previous directors, and the management team at the port to Stephen Moir, who has been an independent non-executive director with Napier Port for the last nine years. Stephen has been an exemplary director, playing a major role in shepherding the company through listing, COVID, cyclone recovery, and the ongoing development and execution of our strategy.
Stephen is exceptionally well regarded by all of the board and management team, and he epitomizes the definition of robust independent governance. Stephen, it's been a true gift to work with you. I've learned a lot in your presence and enjoyed many a meal and glass of wine. You leave Napier Port in a vastly improved place as a result of your diligence and your leadership, and we are thankful to have someone equally skilled and qualified replacing you on the board and Hamish. Wishing you all the very best for the future, and you will always be welcome at Napier Port. Thank you very much, and now to our final resolution. Resolution four is to authorize the 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 is a public entity and defined in Section 4 of the Public Audit Act 2001 and in accordance with the act, the auditor general is the auditor. The auditor general has appointed EY 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? Are there any questions online?
There are no questions on this matter from shareholders online.
You got off the hook this year, Stuart. No questions. All right. Proxy votes for resolution four are now shown on the screen.
For those in the room, please mark your voting cards in the way you wish to vote by ticking for, against, or abstain in the appropriate place on the voting card. Ladies and gentlemen, our registry, MUFG Pension & Market Services, will now move through the room to collect your voting cards. If you haven't had a time to do that, just please fill out your cards now. Shareholders attending online, you may now use this time to submit your electronic voting card or to submit any general business questions that you may have. We'll just take a moment for those all to be collected. If you do have a card, I'll just ask you to hold it up so we can see where they are. Thank you. There's one at the front here. Thank you. Okay. Looks like they're all in, so thank you very much for that.
The floor is now open for general questions. Can I please remind you to wait for a microphone, clearly state your name before asking the question, and to be fair to all shareholders, I ask that questions be as concise as possible and be considerate to other shareholders wishing to ask questions with only one question at a time. We will first take questions from the floor and then go to our online participants. Are there any questions from the floor? We have one just down the back here and then one at the front.
Just congratulations on 2025.
Sorry, can you just identify yourself?
Oh, sorry. Brydon Nisbet. Congratulations on 2025. Yesterday, MPI came out with the SOPI NZD 62 billion for primary industries. In 2024, they want to double the exports by 2034, which is pretty ambitious. It would be about NZD 130 billion.
That would be a significant increase for Hawke's Bay. What are Napier Port doing in planning or preparing for that kind of increase in the primary industries?
Yeah, it's a great question. I'll kick off and then hand over to Todd. But we have a very long-term view of investment in the port, and as you would have seen through the investment in Sixth Wharf or Te Whiti Wharf, that's a 50-plus-year investment that was very much primed for long-term growth for the business. And now we're going through an exercise of investing in other long-term essential infrastructure, which I'll let Todd talk to a little bit.
Yeah, sorry. Yeah, that's right. So just echoing some of Blair's comments here, we do take a very long-term view on these things.
We're looking at what are those sort of projections that could potentially happen around volumes coming to the port, what does it mean for our infrastructure in terms of what we're investing in. Equally, what you're seeing us do at the moment is sort of get in that space where we're trying to create much more flexibility in how we actually utilize the whole port depending on what demand we see coming through at any one time, so building that into the way that we run our systems and our processes, as well as what sort of equipment that we're buying as well to be able to support that future growth, working with customers a lot around what they're seeing coming, and particularly things like shipping lines.
Right here and now, we're thinking about what's the nature of the type of vessels that we might have coming through to Napier Port. Things like our dredge investment are key to that. Generally, you're going to see a bigger vessel class coming through to New Zealand over time. How do we accommodate those sorts of vessels, and what does that mean in terms of not only the physical wharf infrastructure or depth of our channels, but equally things like our cranes and equipment that are feeding the cranes? Everything we're thinking about generally in terms of big investments is 20, 30 years out. We're thinking about those sort of things. I think one of the big things from a Hawke's Bay perspective is we're going to double exports is what's going to happen around water security in the region too. Yeah.
So we're thinking about that and watching closely what happens there and what that might mean from a port perspective. Yeah.
And just to add to that, Kristen mentioned during his address, managing our balance sheet to have space for opportunities and growth is a critical part of the way we think about our finances as well. So we plan ahead. We make sure that our finances are in good order to be ready for either shocks or all the long-term investments that are required as well.
Thank you.
Yeah, just for those online comments saying there's a large investment by the government in the four-laning of the expressway, which will certainly help transport flows into the region. We had another question at the front here.
Thank you. It's Perry again, and my question is addressed to the chair.
As it's a policy matter, page 73 of the report deals with DEI. Now, most of us here are acutely aware of what's happened in overseas countries, particularly Cracker Barrel recently, prior to that, Bud Light, Target, and a few others. Is it the board's policy to review these things to ensure that excellence and market sensitivity overrides DEI, ESG, and all the other rogue rubbish?
Thank you for your question. The board's view is that we want to build the most highly capable team to run this business and deliver on all of its results as we can, and making sure that we have a workforce that represents both the community and the set of skills that we need as a critical part of that. So we fully embrace the need for a balance of diversity and inclusion within our business.
Ultimately, we need to make sure we've got the right skilled people doing the right jobs, and there are many, many skilled people who represent all facets of society, and our job is to find them and bring them into the team and integrate them in a way where they feel included and support our objectives as a business. So we are very focused on that, and I believe we get the balance right. Are there any further questions from the floor? We have one at the back here.
Yes, Stephen Jacobi. Congratulations to the board and the management on an outstanding year, particularly at a very difficult time globally. And I want to ask about that because the global environment in which you're operating is highly disrupted. I wonder how concerned you are about that and what can you-I mean, obviously, you can't do much about it yourself.
To what extent are you monitoring those sorts of developments, and what actions can you take?
Yeah, it's a really great question, and it's one that we discuss often as a board. There's a real risk that if you watch every trend that you see in the news these days, that you could get lost quite quickly and worried about everything. So part of the approach that we take is to take a calm, measured view and take in as many data points as possible, and then make sure that when we're asking ourselves those questions, that they're relevant to our business. What can we control, and then what do we need to be ready for that we can't control?
For all the wrong reasons, we've developed an amazing skill set over the last five years with COVID and then the cyclone recovery of being extremely adaptable to change, and it's become part of the culture of the organization that we're sort of ready for whatever comes our way. And ports on an everyday basis have to deal with quite a lot, whether it's weather or whether it's shipping line disruptions. In the last few years, we've learned to deal with even more disruptions to the business as well. So we do talk about it regularly. We try not to lose too much sleep about it, but we focus in on our risks on a very programmatic basis.
We have a full risk review process within the business, looking at the things that might bite us and getting ready for those, and equally the opportunities that may come from changes in the world as well. I think Todd referenced it earlier in his presentation that there's a lot more stability now than there used to be. A lot of the global changes that have been going on were very disruptive to shipping over the last five years for us, and now those have stabilized quite a lot. So we do our best to swallow what comes our way and always learning and growing in order to be as resilient and adaptive as possible.
Thank you.
Are there any further questions from the floor? We have one here.
Good morning. My name's Phil Cook. I just wanted to ask, is there any plans for a dividend reinvestment program?
Look, that's a good question. At this stage, it's not something that we're actively contemplating, and it obviously is an option to explore in due course, but right now, that's not something we're exploring. Any further questions from the floor? Are there any questions online? Sorry, no more? Any questions online?
There are no further questions from our shareholders online.
Okay, thank you. We do have one pre-submitted question from Steven Jan van der Linden. Is he here today? He's not. Will the Hawke's Bay Regional Council, 51%, it's actually 55%, look at selling down its stake in Napier Port Holdings if the government implements changes in regional council reforms? Look, the reality is that we don't control what happens with our shareholders. That's your business, for everyone in the room.
What the council will do and how they will navigate their way through the proposed changes by the government is something everyone will be watching with interest, and we, as one of their assets, will obviously be keeping a close eye on that as well. But that's really a matter for them to speak to rather than us. So thank you for your questions, Stephen. I'll just one final call for questions. Any further questions? Okay. There appear to be no further business items for discussion. So on that note, it's my pleasure today to conclude the annual shareholder meeting for the 2025 financial year. On behalf of the board, I extend our thanks to all our shareholders, our community, and the cargo owners who entrust their product to Napier Port every day.
And to the entire Napier Port team who, led by an excellent senior management team, continue to bring their best to work every day, facing whatever the day brings with an unflappable commitment and resolve. As I call the meeting to a close, I'd like to invite everyone who is here present today at Napier War Memorial Conference Centre to join us for light refreshments out the back. Our people are here and available to answer any questions about port operations, and of course, your directors will be available for any governance questions that you may have. Thank you for coming today, and thank you for your continued support of Napier Port. Nā reira, tēnā koutou, tēnā koutou, tēnā koutou, katoa. Thank you, everyone.