No Change to Our Outlook for Port of Tauranga, Fair Value Estimate Stands

We maintain our projections and fair value estimate of NZD 13.00 per share for Port of Tauranga. Modest growth in net profit after tax, or NPAT, is likely in fiscal 2014, driven mainly by acquisitions, whose benefits will show up on the bottom line during the year's second half. Log shipments are expected to show strong gains, driven by growth in exports to China. However container volumes are anticipated to be soft due to the movement of Maersk to rival Ports of Auckland on 1 July 2013. Associate and subsidiary company profits are expected to be slightly lower because of lower earnings from Quality Marshalling. The firm’s rental business is projected to show robust growth due to land acquisitions near the port, and the Metroport Terminal in Auckland.