FPH_AnnualReport_FY24_FINAL_ƒ

Flinders Port Holdings

Annual Report 2023–2024

Acknowledgment of Country Flinders Port Holdings acknowledges the Traditional Owners of the land and waterways on which we operate, and pays respect to Elders past, present and emerging.

We’re working towards reconciliation and engaging with Traditional Owners is a critical part of business on an acute port and local community level, but also on a far greater scale, contributing to the growth of unity between Aboriginal and Torres Strait Islander peoples and non-Indigenous peoples across Australia.

We acknowledge that our business operations spread across six Aboriginal and Torrens Straight Islander lands.

These are Kaurna, Banggarla, Narangga, Nawu, Wirangu and Nukunu.

Contents

Performance Snapshot

4

A Message from our CEO

6

Who we are

12

Value Creation Model

14

Health and Safety

16

Sustainability

20

Community Sponsorships

26

People and Brand

28

Staff Roll of Honour

32

Major Projects and Capital Expenditure

34

GatewaySA

38

Operating and Financial Performance

43

Performance Snapshot Year ended 30 June 2024 Operational Performance

Total Cargo Tonnage

Decrease of 4.2% on FY’23 from 25.7m tonnes

Total Grain Tonnage

Decrease of 12.8% on FY’23 from 8.5m tonnes

292,098

Full Containers (TEUs)

Increase of 8.1% on FY’23 from 270,297 TEUs

2,026

Vessel Calls

Decrease of 0.2% on FY’23 from 2,030 Vessel Calls

24.6 7.4

million tonnes million tonnes

Financial Performance

307.9m

Total Revenue

Increase of 11.0% on FY’23 from $277.4m

134.6m

Underlying EBITDA

Increase of 11.4% on FY’23 from $120.9m

78.2m

Net Cash Flow from operating activities

Increase of 5.1% on FY’23 from $74.4m

Underlying ROIC

Increase of 0.9% on FY’23 from 9.3%

$ $

$

10.2% Assets

54.5m

$

Total capital expenditure invested

4

16.3m

$

Maintenance expenditure (including salaries and wages)

People and Brand

532.3 Full time equivalent employees

Recognised and Awarded one of Australia’s Best Managed Companies (2023) for a third consecutive year in a row.

745 Total Employees

Safety

181

4.11

0

Leaders Safety Engagements Completed

High Potential Incident Frequency Rate remained below target of 5.0.

fatalities

An increase of 30.2% on FY’23

(12 month average of high potential incidents per million hours worked) (Decreased 43% from last FY)

Sustainability

GRESB Score of

83 / 100

(Compared to 81 in 2023)

2024 Global Real Estate Sustainability Benchmark (GRESB)

Flinders Port Holdings Annual Report 2024

5

A Message from our CEO “As the leading privately-owned port operator in South Australia, Flinders Port Holdings (FPH) is dedicated to supporting local businesses and consumers by providing efficient and cost-effective access to global markets. Our commitment to delivering strong returns and sustainable growth for our shareholders remains unwavering, even as we navigate the complexities of today’s economic landscape.”

STEWART LAMMIN Chief Executive Officer

6

FY’24 saw FPH continuing to address the challenges posed by global supply chain disruptions, geopolitical tensions, and evolving expectations around sustainability and digital connectivity.

Our focus on safety, environmentally responsible operations, and service excellence ensured that despite these challenges we continued to meet and exceed the expectations of our stakeholders.

Looking ahead, FPH is committed to enhancing our port-related infrastructure and capabilities to ensure we contribute to resilient and reliable supply chains for the State. By continuously improving our services and processes, we aim to connect South Australia to the world, driving growth and value for our customers and shareholders alike.

CEO Summary As we reflect on the past year, I am proud to highlight the significant strides FPH has made in FY’24. Our commitment to growth, operational optimisation, business excellence and continuous improvement has driven us to achieve strong, sustainable outcomes across various domains, setting the foundation from which we will continue to grow into the future.

Key Achievements in FY 2024 Financial and Operating Performance The Group’s FY’24 revenue was $307.9 million, an increase of $30.5 million or 11.0% compared to FY’23. This growth was driven by increased volumes of container movements, petroleum and gas, motor vehicles and limestone. Total cargo volumes through our ports totalled 24.6 million tonnes, a slight decrease from 25.7 million tonnes in FY’23, largely due to the lower grain volumes following the significant grain harvest and export program recorded in the prior year.

Underlying Earnings Before Interest, Tax, Depreciation, and Amortisation (Underlying EBITDA) of $134.6 million for FY’24 represented an 11.4% increase compared to FY’23. This improvement was due to our recorded revenue growth and effective cost management and optimising our return on investments.

The strength of the Group’s operating cashflows has remained robust, allowing us to support shareholder distributions and efficiently fund capital investments. We continue to maintain significant headroom against our debt covenants, and the Group is well-capitalised to support our strategic priorities and maximise financial performance over the short, medium, and long-term.

By continuously improving our services and processes, we aim to connect South Australia to the world, driving growth and value for our customers and shareholders alike.

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7

Health and Safety

Customers and Growth

Early Intervention and Injury Management Program: We introduced a proactive approach to managing workplace injuries, focusing on early intervention to prevent minor injuries from becoming major issues. This program has led to a material improvement in supporting our employee’s return to work and a significant reduction in the average cost of claims, demonstrating its effectiveness in managing workplace health and wellbeing.

Uninterrupted Service Provision: Despite various challenges, we have maintained a consistent delivery of our full range of services, ensuring that our customers receive the high-quality support they expect from us.

Enhanced Safety Statistics: Our commitment to safety is reflected in improved metrics across both lead indicators (such as safety training and hazard identification) and lag indicators (such as incident rates and lost time injuries). These improvements highlight our ongoing efforts to create a safer work environment and an unwavering focus on our critical safety risks.

People and Brand Increased Female Representation: We have made strides in promoting gender diversity within our workforce. Female representation among our employees has increased to 12.9%, and we have also seen a rise in women holding leadership positions. This progress underscores our dedication to fostering an inclusive workplace.

Improved Employee Engagement: Our latest employee engagement survey shows a notable increase in engagement levels. This improvement is a testament to our efforts in creating a positive and supportive work culture where employees feel valued and motivated.

8

Leased Additional Land at Outer Harbor: We have successfully expanded our operational capacity by leasing additional land at Outer Harbor.

This expansion supports our growth strategy and enhances our ability to serve our customers into the longer term.

Strategic Partnerships: We have established new long-term partnerships with key customers, with these partnerships crucial for our sustained growth and success.

Land Strategy and Competitive Trade Review: We have begun implementing our land strategy and completed a comprehensive review of contestable trade. This review has identified new investment opportunities that will drive future growth.

Sustainability Carbon Emission Targets: We have developed and approved interim targets for reducing scope 1 and 2 carbon emissions. Our efforts have already resulted in significant carbon reduction outcomes, demonstrating our commitment to sustainability.

GRESB Rating Improvement: Our GRESB (Global Real Estate Sustainability Benchmark) rating has improved to a new high of 83. This rating reflects our strong performance in sustainability practices and our dedication to business excellence and continuous improvement.

Sustainable Financing Arrangements: We successfully executed new financing arrangements in FY’24 that have diversified and expanded our available debt markets and capacity. The executed arrangements provide the funding capacity to support our strategic initiatives and sustaining capital requirements and delivered a material reduction in our cost of debt. Furthermore, the majority of the new financing arrangements were executed as sustainable financing and aligned with our sustainability goals. These arrangements further commit FPH to the realisation of improvements across our sustainability objectives – including decarbonisation, gender diversity and mental health.

Efficiency Procurement and Capital Delivery Savings: Through effective procurement strategies and efficient capital project delivery, we have realised significant cost savings. These savings enhanced our financial performance and operational efficiency.

Digital Transformation Roadmap: We have made substantial progress in our digital transformation journey. Key initiatives include the implementation of Maximo Mobility, GRC (Governance, Risk, and Compliance), Risk and Safety Systems, TechOne Cloud Migration and FWD Operating System. These advancements improve our operational capabilities and support our long-term goals.

Focus Areas for FY’25 and beyond In FY’25, FPH will prioritise executing with excellence across a range of commercial growth opportunities, efficiency programs, and significant capital investments. This focus aims to ensure that the necessary infrastructure, assets, and services are in place to support customer needs and drive trade through South Australian ports. Key initiatives include the transformation of the Flinders Adelaide Container Terminal (FACT), which will see the introduction of two new cranes, quay line extension and the implementation of advanced digital capabilities for employee lifecycle management.

Additionally, FPH is committed to business excellence and continuous improvement in business processes and operating frameworks. This includes enhancing health and safety measures, boosting cyber resilience, and advancing sustainability and environmental management practices. By embracing a technologyenabled, data-powered approach, FPH aims to deliver value growth and support the broader South Australian supply chain, ensuring resilience and efficiency in response to global competition and geopolitical challenges.

Assets Critical Capital Projects: We have successfully delivered all critical capital projects, ensuring that our infrastructure and assets are well-maintained, capable of supporting our operations and deliver within our established risk profiles. We dive deeper into these projects further into the Annual Report.

Flinders Port Holdings Annual Report 2024

9

Our Vision FPH’s vision is to connect South Australia to the world.

10

Our Mission To be an industry leader in providing safe, innovative and sustainable port related infrastructure, capabilities and services that enable, optimise and maximise trade for our customers.

Flinders Port Holdings Annual Report 2024

11

Who we are

Our vision is to connect South Australia to the world.

Flinders Port Holdings Pty Ltd, including its controlled subsidiaries (collectively ‘the Group’ or ‘FPH’), is the leading privately-owned port operator in South Australia, handling the vast majority of the state’s international imports and exports each year.

Originally established in 2001 through the acquisition of 99-year land leases, associated assets and port operating agreements for the port of Port Adelaide and the six South Australian regional ports of Port Lincoln, Port Pirie, Thevenard, Port Giles, Wallaroo and Klein Point, the Group has since grown to offer a wide range of port-related services.

Our Services

One Flinders Port Holdings

The Group delivers its services through the following key operating entities:

To achieve the Vision and Mission, FPH seeks to provide innovative, efficient and competitive supply chain solutions to facilitate trade into South Australia or support domestic businesses taking their products into global export markets. FPH has branded and themed this Group focus as “OneFPH”.

•

Flinders Ports (FP) is the port operator for FPH’s seven owned ports, as well as performing the core marine operations functions for commercial ports at Whyalla, Port Bonython and Ardrossan.

•

Flinders Adelaide Container Terminal (FACT) is South Australia’s only container terminal operator, handling containerised imports and exports.

•

Flinders Logistics (FL), a logistics and stevedoring services provider, with a focus on mineral resources and oil and gas sectors in Australia.

FL supports the provision of end-to-end supply chain solutions for South Australian businesses.

•

•

Flinders Warehousing and Distribution (FWD) provides container-related storage and handling services.

HydroSurvey Australia provides detailed, highaccuracy hydrographic survey services to private and public sector clients, with mid to large scale projects, in South Australia and interstate.

12

Our focus as OneFPH allows us to offer integrated supply chain solutions that achieve the following for our customers: •

Faster distribution times;

•

Greater capacity;

•

Better accessibility;

•

Reduced environmental and social impact;

•

Increased cost savings; and

•

Reduced risk.

WATCH MORE HERE

Every day, all around South Australia, our people and service providers help enable essential goods to keep flowing into and out of the South Australia – keeping our community and our economy running.

Further supporting this ethos, you can watch FPH’s corporate video reflecting who we are and how our business has evolved, which can also be viewed on our company website.

Our staff are proud to work for FPH and the role they play in facilitating trade in and out of South Australia.

FPH’s value creation process is centred on sustainable long-term shareholder value, achieved through integrated thinking and a clear understanding of how value is created. This process involves setting targets, reporting results, and measuring performance against strategic pillars. It emphasises that value is influenced by the external environment and relationships with stakeholders, not created in isolation.

The process utilises five key resources, or “Capitals”: Human Capital (employee competencies and innovation), Intellectual Capital (intellectual property and brand reputation), Natural and Social Capital (natural resources and stakeholder relationships), Physical and Digital Asset Capital (infrastructure, equipment and technology), and Financial Capital (funds from financing and operations).

Flinders Port Holdings Annual Report 2024

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Value Creation Model Our Environment

Key Inputs

Strategic Foundations

Opera

Human Capital Competencies, capabilities and experience of our employees and their motivations to perform and innovate.

Health & Safety

Intellectual Capital

Internal and External Factors.

Intellectual property, brand and reputation and FPH’s operational knowledge and understanding.

Logistics, Ware Distribution

Natural & Social Capital All renewable and non-renewable natural resources & environmental assets (i.e. air, water, land, minerals and forests) and relationships that FPH has with its external stakeholders that support the past, current and future prosperity of FPH and are critical to maintaining our social licence.

Data & Technology

Containeri Bulk Stevedori

Physical & Digital Asset Capital Tangible and intangible infrastructure, solutions and equipment owned, leased or controlled by FPH that contribute to the delivery of our services.

Financial Capital Pool of funds generated through financing, such as debt or equity, or generated by operations.

Risk & Risk Management

Port infrast and Marine O

FPH M 14

ations

tructure Operations

The commitment to the investment in our people and to fostering a diverse and highperformance culture that celebrates the value our people bring to the organisation.

Customers & Growth The commitment to understanding our customers’ needs, providing superior customer service and delivering the capabilities that enable and facilitate trade.

Sustainability The commitment to maintaining sustainability at the core of what we do, ensuring we minimise harm, decarbonise our business, collaborate with our communities and build resilience.

Assets The commitment to providing the required level of service from our physical and digital assets that is focused on enabling safe, efficient and sustainable asset stewardship.

Efficiency

Vision: Connecting South Australia to the world

ised and ring Services

People & Brand

Mission: To be an industry leader in providing safe, innovative and sustainable port related infrastructure, capabilities and services that enable, optimise and maximise trade for our customers.

ehousing & n Services

Mission & Vision

Strategic Pillars

The commitment to continuous improvement and optimisation of all aspects of our operations and supporting services.

Masterplan Flinders Port Holdings Annual Report 2024

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Health, Safety and Systems Overview highlights

16

In 2024, we focused on strengthening safety leadership, mental wellbeing, and proactive risk management, leading to significant improvements in both engagement and safety outcomes.

43%

7%

30%

Reduction in High Potential Incidents

Shift in positive engagement towards safety in the employee engagement survey

Increase in Leader Safety Engagements

Flinders Port Holdings Annual Report 2024

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Health, Safety and Systems Key highlights from FY’24 Culture and Engagement

System and Process

•

•

Through a critical risk mapping exercise, we have updated our WHS Assurance Program for FY’25-27.

•

Operational Learning processes were developed and included Learning Teams to be implemented.

•

A Learning Team is a facilitated means of engaging with workers to understand and then learn from the opportunities that are presented by everyday successful and safe work as well as learning from events or incidents.

•

A Contractor Management Framework was implemented, and staff training was held.

The 2024 Employee Engagement survey showed a 7% shift in positive engagement on safety related factors across the group.

This included a 14% increase in Safety Leadership factors. We believe this shift has been attributed to the investment in our Safety Leadership Program and an improved communications processes such as pre-start meetings.

•

As an extension of the Safety Leadership Program, FPH commenced Mental Health First Aid training, this also supports our Mental Wellbeing Strategy Action Plan. Our goal is to achieve skilled workplace recognition from Mental Health First Aid Australia in FY’25.

Recognition is provided for achievement of minimum training targets and implementation of strategic systems and processes designed to support mental health.

Strong safety leadership, improved communication, and targeted wellbeing initiatives are driving positive outcomes in workplace safety and employee support.

18

Lead and Lag Indicators Lag •

High Potential Incidents decreased 43% from last FY, and High Potential Incident Frequency Rate (4.11) remained below target of 5.0. This was supported by a significant program of work to identify our Critical Risks and the development of associated procedures and awareness training.

Lead •

181 Leader Safety Engagements were recorded across the FY’24 period, presenting a 30% increase on the FY’23 result.

•

176 Safety Interactions were recorded.

•

Implemented the Recovery and Return to Work Framework, and Early Intervention Program in partnership with AEP Health Group. This has significantly improved injured worker outcomes and performance of the Injury Management program overall.

Flinders Port Holdings Annual Report 2024

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Sustainability Overview highlights

Sustainability is one of our strategic pillars, ensuring we minimise harm, decarbonise our operations, collaborate with community and build resilience.

Our Sustainability Plan is centred around our material sustainability themes and impacts on our environment, people, community and governance.

We are also a signatory to the UN Global Compact and Sustainable Development Goals and report against international sustainability standards.

20

$350m

36% less

1,830m2

In Use of Proceeds Facility with CEFC and Sustainability Linked Loans

Fuel used in our four new Konecranes Noell diesel battery hybrid straddle carriers

In Replanted Native Species

Flinders Port Holdings Annual Report 2024

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Image: SA Tourism

Sustainability Key Highlights from FY’24 Healthy Environment Our net zero target for scope 3 emissions is 2050.

We are working with our supply chain regarding data and opportunities to decarbonise before setting interim scope 3 targets. Future plans include working with our major contractors on reducing scope 3 emissions and the use of lower embodied carbon materials.

Since setting our first climate goals in 2022, we’ve evolved our climate commitments to be more ambitious and consistent with Science Based Target Initiative (SBTi) guidance and International Maritime Organisation’s (IMO) emission reduction strategy.

We have reviewed how we can take more direct action towards net zero and set a carbon budget.

This will see us:

The Group’s carbon inventory for FY’24 is outlined below. The inventory was verified to a limited assurance level with zero non-conformances by an independent third-party Aether.

> Reduce absolute scope 1 GHG emissions by 50% by 2035 (based on 2022 levels). > Reduce absolute scope 2 GHG emissions by 90% by 2030 (based on 2022 levels). > Achieve net zero greenhouse gas emissions (GHG) emissions for Scope 1 and 2 emissions by 2040.

FY’24 carbon emissions (tCO2-e)

FY’23 carbon emissions (tCO2-e)

Movement (tCO2-e)

Movement (%)

% of total inventory

Scope 1 direct emissions

5,614

5,018

596

11.89%

7.23%

Scope 2 electricity purchased

1,942

1,915

27

1.41%

2.50%

Scope 3 indirect emissions

70,103

66,177

3,926

5.93%

90.27%

Total

77,659

73,110

4,549

6.22%

100%

tCO2-e per $1million revenue

252.23

263.53

-11.30

-4.29%

Carbon emissions scope

We have observed an increase in our total carbon emissions from FY’23 to FY’24. This change is primarily due to improvements in our data collection and reporting methodologies in preparation for incoming climaterelated disclosures. Emissions are also sensitive to changes in shipping calls and volumes.

22

Investments and Sustainability Initiatives

Environmental Responsibility

Environment and emission reduction initiatives

> Committed to preventing harm to coastal and marine environments guided by ISO14001 Environmental Management System (EMS).

> Our new Konecranes Noell diesel battery hybrid straddle carriers consume 36% less fuel compared to older models, offering both operational and safety benefits. > We collaborated with Hart Marine to design new pilot boats aimed at improving safety, technology, and sustainability. We introduced PV Spirit, equipped with a pod drive propulsion system and fuel-efficient smart engines. This vessel is designed to accommodate future zero-emission technologies. > Partnered with the Clean Energy Finance Corporation (CEFC) to establish a $70 million ‘Use of Proceeds’ Facility. This marks the CEFC’s first green financing in container stevedoring operations in Australia. > Secured $280m in Sustainability Linked Loans with our banking syndicate. These facilities tie funding costs to achieving key sustainability performance targets, including GHG emissions reduction, gender diversity, and mental health first aid. > Replanted 1,830m² with native species, improving air quality and visual amenity.

> Reviewed Environment Policy and audited EMS with no major findings. > Improved response to environmental incidents with new spill kits and regular training. > Continuous improvement in monitoring air, water, soil quality, noise, and radiation. > Introduced benthic habitat assessment at Wallaroo Jetty, discovering diverse marine life. > Partnered with Green Adelaide and Birdlife to monitor and support the vulnerable Fairy Tern.

Climate Risk > Conducted our first climate-related risk and opportunity assessment. Partnered with local entities for sea flood mapping in Port Adelaide. > Data to be integrated into asset management, financial and resilience planning, which will also inform climate-related disclosures for future Annual Reports.

Flinders Port Holdings Annual Report 2024

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Sustainability

Valued People Diversity and Inclusion and Employee Engagement FPH is committed to diversity, inclusion, and employee engagement. In FY’24 we developed our inaugural Diversity and Inclusion Action Plan.

Key targets include: > Women occupying 40% of senior leadership roles by 2030. > 30% of new hires being women by 2029. > Submission of the Reflect RAP for publication in FY’25.

The FY’24 Employee Engagement survey revealed an 8% increase in employees’ perception of FPH’s commitment to the environment, climate change, and enabling positive contributions.

Reconciliation FPH has received conditional endorsement from Reconciliation Australia of our first Reflect Reconciliation Action Plan (RAP). The RAP Working Group key achievements include: > Identifying and acknowledging the Traditional Lands on which we work > Celebrating and communicating with the business the significance of Reconciliation Week and NAIDOC Week > Conducting a review of HR policies and procedures to identify anti-discrimination provisions and future needs > Introducing Cultural Leave for our Aboriginal and Torres Strait Islander employees > Through our procurement process, identifying Aboriginal and Torres Strait Islander businesses to engage with We engaged an Adnyamathanha, Narungga and Yarluyandi Wangkangurru artist – Iteka SandersonBromley to create our RAP artwork. Workshops were held to explain the FPH story and what reconciliation means to us as individuals and as a business.

Iteka translated this into our digital and canvas artwork that will be complete our RAP submission, we hope to launch our approved RAP in FY’25.

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Responsible Business

Community

Physical Security

FPH is a Founding Member of SA ZERO, Adelaide’s first net zero cluster for public-private-academia collaboration, SA ZERO, is supported by the Committee for Adelaide and Green Industries South Australia (GISA).

We continue our commitment to secure our ports through ongoing audits and assessments. This includes: > Independent audits to evaluate compliance with our Maritime Security Plan and Maritime Transport and Offshore Facilities Act and Regulations.

FPH continued to align with evolving legislation and emerging threat landscapes with employees: > Participating in Maritime Industry Security Consultative Forum. > Launching a “Safeguarding our Ports” awareness campaign During FY’24 FPH commenced a major CCTV upgrade project across Port Adelaide enhancing coverage of channels, ship-to shore interfaces, mooring lines, and precincts, which yields both security and safety benefits.

FPH partnered with Flinders University to create a talent pipeline in an increasingly competitive job market.

We continued to develop partnerships to enhance the engagement of Aboriginal and Torres Strait Islander people. This partnerships included: > Collaboration with Tauondi Aboriginal College, resulting in the placement of one Aboriginal employee. > Participation in two Aboriginal and Torres Strait Islander dedicated careers events.

Cyber Security At FPH, we prioritise the protection of our digital assets, customer data, and sensitive information through a comprehensive cyber security roadmap.

This includes governance, identification, protection, detection, response, and recovery.

Our measures align with international standards, to ensure we continuously update our policies and technologies to stay ahead of emerging threats Modern Slavery We assess, address and continually review the risks of modern slavery practices in our operations and the broader supply chain during the reporting period.

To read our Modern Slavery Statement please click here.

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Community Sponsorships Flinders Port Holdings is proud to support the South Australian community through partnerships, sponsorships and volunteering that contributes to: •

Supporting the regions within which we operate

•

Growing partnerships and building relationships

•

Employee Engagement in the Community

•

Aligning with the UN Sustainable Development Goals

THEVENARD • Clontarf Foundation

PORT ADELAIDE • Clontarf Foundation

•

Ceduna Oyster Fest

•

Foodbank

•

Thevenard Sports and Community Centre

•

SA Maritime Museum

•

Port Community Arts Centre

•

Foodbank

•

Mix 102.3 Children’s Christmas Party

•

Youth Travel Grants Scheme

•

CHATS

•

Bird Island Project

•

Oyster Basket Making

•

Flinders Ports Regatta

•

One and All Tall Ship

•

Port Adelaide Pirates

•

Port Adelaide Baseball

PORT LINCOLN • Clontarf Foundation • •

Foodbank

•

Dockside Festival

•

John Pirie Secondary School – Dux of the College Award

Royal South Australian Yacht Squadron

•

Lions Club of Brighton

•

Foodbank

•

Rotary Club

•

Youth Travel Grants Scheme

•

Fort 2 Fort – Remembrance Walk

•

Drug Arm – Education Service

PORT PIRIE • Clontarf Foundation •

184

Youth Travel Grants Scheme

hours

Volunteered across the group

We supported In the FY’23/24 period

3

Environmental Programs

26

12

Corporate Sponsorships

15

Community Sponsorships

Thevenard Pt Pirie

Pt Lincoln

Port Adelaide

Flinders Port Holdings Annual Report 2024

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Image courtesy SATC

People and Brand

Overview highlights

As a significant employer in South Australia, our people are a key input to the successful delivery of our strategy and their skills, experiences and knowledge directly lead to value creation for the business. FPH is committed to the invested in training our people and to fostering a diverse and high-performance culture that celebrates the value our people bring to the organisation.

28

140 New hires Across the Group

$519k Investment in training our people

6% Increase in staff engagement in our staff survey

Flinders Port Holdings Annual Report 2024

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People and Brand

Key highlights from FY’24 •

•

30

FPH Central Project – FPH are implementing a system to improve processes for employee and workforce management across the FPH Group.

This is enabled by two new systems, Workday HCM (for employee management) and Nimbus Time2Work (for workforce management).

•

Created and implemented an updated Remuneration Framework that provides an attractive mix of rewards and benefits that help FPH attract, motivate, and retain talent and a governance process to remuneration.

•

Introduced a Contact Officer Program to support, manage and prevent inappropriate workplace behaviours, and to help employees make choices about how to seek a resolution if they are experiencing unfair treatment.

•

140 New hires across the group

•

Developed and communicated our Early Careers Guide which identifies opportunities to create future talent pipelines, resulting in:

Updated the Groups Leave Policy to include o

additional benefits such as increased paid parental leave for primary and secondary parents

o

cultural leave

o

purchased leave

o

volunteering leave,

•

Introduced Flexible Work Guidelines to articulate our culture of flexible working

o

Participation in university, school and focussed careers days

•

Updated and implemented a range of aligned policy and associated documents that articulate expected behaviours and shape culture, including:

o

Three Graduates commencing in FY’25

o

Facilitated work experience across the Group in a range of roles

o

Celebrated Sarah Scott completing her Cadetship and Work Experience with FPH through our sponsorship of the One and

o

Our Code of Conduct

o

Respect in the Workplace Policy

o

Diversity, Equity and Inclusion Policy

o

Grievance Procedure

All Tallship.

Our Commitment to Training FPH is committed to the investment in our people, to foster a high-performance culture that delivers and optimises the value that our people bring to the organisation creating a capable workforce for today and for our future.

We have collaborated across the group to develop our inaugural Training Framework with a focus on Right Skills, Right Role, Right Time.

Organisational Development o

Increased staff engagement by 6% to reach an engagement score of 72 in our 2024 staff survey.

o

Redesigned and trained our teams on our performance cycle (goal setting, development plans and performance reviews) to drive accountability, performance, and engagement across the group.

o

Invested in building leader capability, with 165 leaders completing the Deliberate Leadership Pathway

Flinders Port Holdings Annual Report 2024

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Staff Roll of Honour

At Flinders Port Holdings we believe that our people are our most valuable asset. Our role within the community is an important one, we succeed because we support each other, we succeed because we are OneFPH. We congratulate the staff that have reached a major milestone and enriched our business over this time.

45 Years

25 Years

20 Years

15 Years

Julie Garratt

Stephen Linhart

Matthew Pellizzari

Sam Ettridge

Anthony Nancarrow

Stewart Lammin

Robert Welsh

Alfred Steed

Carl Kavina

Ray Pedler

Mark Tylor

Rodney Hirte

Russell Martin

Rob Davies

Sam Barry

Paul Christofis

Troy Smith

Arthur Tsimiklis

Ryan Sampson

Anthony Bryce

Zak Joannou

Dennis Reidy

David Martin

Glen Ramsay

Matt Morran

Shane Rosling

Adrian Wait

Peter Gaffney

Anthony Milne

Kym McLachlan

Daniel Anderson

Adam Bevan

Tibor Szolnoki

Joel Beharrie

40 Years Robert Denham

30 Years Andrew Edwards Ryan Munns Simon Thomas Damien Furniss Shaun Prior

32

Richard Hanson

Beau Wakeman

Scott Glennon

Leah Larsen

Craig Fletcher

Andrew Morran

Per Barbala

Martin Mitchell

Michael Barry

Steven Rowe

Maxwell Gregory

Vigneswaran Thaivanah

10 Years

5 Years

Keith Halifax

Randall Bonner

Kasey Bell

Jenny Lorenz

Adrian Reay

Tess Stockings

Jeff Watt

Mark Guider

Ben Miers

Kimberley Marett

Paul Sagar

Mark Jones

Todd Stennett

Daniel Butler

Krzysztof Wojciak

Andrew Harvey

James McKinnon

Mark Phillips

Michael Shinakis

Michael Hughes

Trent Kolbig

Matt Giessauf

Jason Samson

Adam Bellifemini

Peter Willis

John Ghaly

Troy Stevens

Brodie Smith

Scott Willis

Bert Wauchope

Sam Niedorfer

Jaymes Turci

Mark Gray

Gordon Brooks

Paul Keane

Nathan Northcott

James Holmes

Joel Shean Mark Van Roekel John Schroeder Matt Simone Roxy Nathan

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34

Major Projects and Capital Expenditure Key Highlights from FY’24

NEW STRADDLES PROGRAM

PORT PIRIE PRECINCT

Investment $16m

Investment $13m over 4-years

Four Konecranes Noell diesel battery hybrid straddle carriers were added to the FACT fleet. The hybrid diesel electric straddle carriers reduce diesel fuel consumption and reduces greenhouse gas emission (using AdBlue). In addition, our people benefit from various improvements to the cabin.

Investment saw 23 light towers installed, roads and hardstand remediated, and electrical low voltage and high voltage switchboards upgraded.

Stormwater systems and channel upgrades and new navigational aids and markers.

WALLAROO JETTY REMEDIATION Investment $13m in planning Extensive design continued in FY’24 to remediate our longest jetty structures. Construction work is planned for Q1 2025.

PILOT BOAT REPLACEMENT PROGRAM Investment $7m FPH ordered three and took delivery of two new pilot boats. The pilot boats have improved fuel efficiency using Volvo Penta engines which will significantly reduce our carbon footprint.

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LAND ACQUISITION Investment $6m FPH purchased land, adjacent to Outer Harbor Berth 8 from the State Government. This land purchase allows us to support new business opportunities within the Port Precinct.

FLINDERS WAREHOUSING AND DISTRIBUTION (FWD) UPGRADES Investment $1m

Investment $5m

Significant upgrades were made to the FWD warehouse to increase capacity and capability. New racking and associated equipment was installed, updated security system to comply with defence security requirements as well as improved door access for easier movement of cargo.

Program of work commenced in FY’24 to remediate and replace the wingwalls at Osborne and OH4, to maintain levels of service.

PORT LINCOLN PRECINCT

OUTER HARBOR BERTH 4 WINGWALL REMEDIATION AND OSBORNE WINGWALL REPAIR

Investment $310k

COMMON USER FACILITY UPGRADES TO BERTH 25 Investment $1m Berth 25 underwent a significant upgrade with the removal of disused RORO ramp and the extension of the Berth 25 Wharf. Continued works include improved lighting, hardstand access and vessel berthing utilisations for all common users.

OH7 BOLLARDS AND FENDERS Investment $4m FPH have invested in new bollards and fenders to cater for increased visit rate of 366m long vessels into Flinders Adelaide Container Terminal.

36

Port Lincoln Office and accommodation area were upgraded with improvements made to security, gates and control systems.

LIGHT VEHICLE FLEET REPLACEMENT Investment $280k plus charging stations During FY’24 FPH purchased 5 hybrid vehicles.

Charging stations were installed at Head Office, Port Adelaide and Marine Operations Centre at Outer Harbor.

FY’25 Future Projects •

Berth 6 extension, remediation and other capital works associated with the GatewaySA Terminal Transformation Program

•

Adbri Accolade III enabling works at Birkenhead and Klein Point

•

Port Giles remediation program of work

•

Port Pirie channel sweep bar leveling program

•

Port Adelaide Inner Harbour Berth 29 northern expansion

•

Port Adelaide Inner Harbour warehouse development

•

Outer Harbor high voltage substation

•

Carbon farming sustainability program

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Image: SA Tourism

What is GatewaySA? The GatewaySA Terminal Transformation Program is an opportunity for an operational step change at FACT to optimise operations, enhance productivity, reduce carbon emissions and increase resilience.

The program of work includes infrastructure upgrades and replacement of existing assets such as quay cranes, pavement, services and utilities and access gates across FP and FACT. Future-proofing assets will see remediation of existing wharves and an extension to an existing berth.

The Program will include a proof of concept of new crane technology, which if successful will lead to a change in how we operate at FACT.

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GatewaySA

The FPH long term Masterplan that was released in 2022, identified a need to perform a detailed assessment of the future operations of Flinders Adelaide Container Terminal (FACT).

As South Australia’s international container gateway, FACT is critical infrastructure of state-wide logistical and economic importance. We are committed to ensuring its long-term viability and to enhancing and optimising it for the benefit of our customers and the local economy.

There were four key drivers for this assessment: Safety Keeping our people and visitors to FACT safe is our highest priority. By undertaking this program of works we will look to limit interactions between plant and equipment and people and improve infrastructure and operating systems across the terminal.

Efficient Land Use Our current operations do not make efficient use of the land available to us, by addressing this we can increase terminal capacity on the same or reduced footprint.

Operational Efficiency Upgrading FACT’s assets, processes and technology will lead to improved operational efficiency.

Sustainability The scope of works and introduction of modern technology aligns with FPH’s overall sustainability strategy.

The clear outcome from the 2022 assessment was that without change, FACT would not be operating optimally, risking future business.

The GatewaySA Brand To reflect and showcase this vital program of work, we set about creating a visual representation that would build a strong brand identity for the program’s lifecycle and ensure recognition internally and externally to the business. The GatewaySA visual components build a strong presence that will provide a consistent centrepiece throughout the transformation.

The bold orange colour and the G icon represents the opening and gateway to the future with the arrow representing looking towards the future and moving forward. With a distinctive brand, customers and stakeholders alike can differentiate between businessas-usual operations at FACT and the Terminal Transformation program of works – collectively called GatewaySA.

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Total Cruise passenger vessel visits to Port Adelaide and Port Lincoln.

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As the state’s capital cruise ship port, the Port Adelaide Passenger Terminal can cater for the largest of cruise liners – one of only a few ports nationally that can. The port has a deep-water channel, large swing basin and a newly renovated terminal building with flexibility and easy access in and out of the secured area.

We are proud of the important role we play in the states tourism sector and working with South Australian Tourism Commission to elevate the state as a tourist destination.

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10

Adelaide

Port Lincoln

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The Group continued to generate positive operating cash flows in FY’24. Financing cash flows reflect the Group’s draw-down of available debt facilities as part of funding the Group’s capital investment plan and other operational requirements.

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Operating and Financial Performance The Group’s results for the year ended 30 June 2024 are outlined in the table below:

Financial and Operational Performance

2024 $’000s

2023 $’000s

307,897

277,427

Financials Total Revenue EBITDA (Reported)

132,343

118,625

EBITDA (Underlying)

134,628

120,863

Depreciation and Amortisation

(25,472)

(23,927)

EBIT (Reported)

106,871

94,698

Net Interest Expense

(43,461)

(35,727)

Tax Expense

(18,776)

(16,405)

Net Profit After Tax

44,634

42,566

43.7%

43.6%

Group NPAT Margin (%)

14.5%

15.3%

Return on Invested Capital (%) - Underlying

10.2%

11.0%

Cargo Tonnage ('000s Tonnes)

24,646

25,731

Grain Tonnage ('000s Tonnes)

7,400

8,483

Full TEUs

292,098

270,297

Vessel Calls

2,026

2,030

Group Performance Metrics Group EBITDA Margin (%) - Underlying

Trade

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Operating and Financial Performance Revenue and other income generated from the Group’s operations totaled $307.9m for the FY’24, an increase of $30.5m or 11.0% on the year ended 30 June 2023 (FY’23).

The increase was driven predominantly by volume growth with respect to container movements, petroleum and gas, motor vehicles and limestone. However, this positive trend was offset to an extent by lower grain volumes following the significant grain harvest and export program recorded in FY’23.

Revenue Streams

7%

7%

7%

FY’24

52%

6%

FY’23 35%

37%

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Port Operations

Container Terminal Operations

Logistics

Property Rentals and other

52%

Cargo volumes for FY’24 through the Group’s port facilities totaled 24.646m tonnes, a decrease of 4.2% on FY’23. Following strong agricultural production in South Australia, grain export volumes in FY’24 of 7.400m tonnes represented an decrease of 12.8% on FY’23.

The container trade recorded a positive trend in FY’24. Full container movements increased, with 292,098 twenty-foot equivalent units (TEU) movements, increasing 8.1% from FY’23 (270,297 TEU). The number of lifts recorded through the container terminal also increased as a result by 3.1%. After a challenging FY’23 due to global economic conditions, there was a significant recovery in FY’24. This recovery boosted demand for goods, leading to increased container trade.

The Group recorded EBITDA from operations for FY’24 of $132.3m, an increase of 11.6% on FY’23. After adjusting the recorded EBITDA for material non-recurring items ($2.3m) such as SaaS implementation costs, the Underlying EBITDA for FY’24 was $134.6m, an increase of 11.4% on FY’23. The FL and FWD businesses collectively contributed 6.7% of the Group’s EBITDA result. Total commodity volumes of 1.061m tonnes were stevedored across the Port Adelaide and Port Pirie sites during the year (FY’23 1.198m tonnes) representative of a cyclical (and temporary) decline in mining activity.

Cash Flow

2024 $’000s

2023 $’000s

Net Cash from Operating Activities

78,219

74,361

Capital Expenditure

(54,492)

(32,281)

181

63

Proceeds from disposals Acquisition of shares in Associate

-

-

Net Proceeds From Borrowings and Other financing

113,983

24,042

Dividends Paid

(50,000)

(70,000)

Net Cash Flow Movement

87,891

(3,815)

(46)

19

98,075

10,230

Effect of FX movements Cash and Cash Equivalent Balance as at reporting date

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The Group continued to generate positive operating cash flows in FY’24. Financing cash flows reflect the Group’s draw-down of available debt facilities as part of funding the Group’s capital investment plan and other operational requirements.

Balance Sheet The Group’s total drawn external debt balance at 30 June 2024 was $792.9m (excluding finance lease liabilities and shareholder loan notes), an increase of $129.1m from 30 June 2023. The Group continues to have a strong balance sheet and conservative financial position, with significant headroom maintained against the borrowing facilities covenants.

FY’25 Outlook Our financial and operating results in FY’24 have demonstrated our resilience and ability to adapt in challenging and dynamic market conditions. Through continued investment in strategic imperatives and prudent financial management, the Group is well-positioned to sustain growth and enhance its profitability in the year ahead.

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Flinders Port Holdings Annual Report 2024

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296 St Vincent Street, Port Adelaide South Australia 5015 P: +61 (0)8 8447 0611 | E: fpholdings@flindersports.com.au flindersportholdings.com.au

ACKNOWLEDGMENT OF COUNTRY

Flinders Port Holdings acknowledges the Traditional Owners of the land and waterways on which we operate, and pays respect to Elders past, present and emerging.