CCHL 2020 ANNUAL REPORT

Christchurch City Holdings Ltd (CCHL) is pleased to present their 2020 Annual Report. CCHL has announced a consolidated Group loss of $(53) million for the 2020 financial year, after taking into account the significant impact of an asset revaluation by subsidiary Lyttelton Port Company (LPC) and the effects of COVID-19 across the Group. The Group result for the year ended 30 June 2020 reflects a reported consolidated loss of $(53)m, compared to the FY19's profit of $132.1m. The audited results are unchanged from the full year unaudited results that were announced on 25 September 2020. The overall impact of COVID-19 on the CCHL Group has been reflective of the different sectors that each subsidiary operates in. However the strength of the CCHL Group that holds a diverse group of key infrastructure assets is the ability to balance the challenges of some of the entities in the short term with others that are not as badly impacted. All identified impacts of COVID-19 have been reflected in the financial statements, and in the relevant note disclosures. The primary area that COVID-19 has impacted on the Group is in the estimates and assumptions in respect of the fair value measurement of property, plant and equipment and investment properties. Whilst total operating revenue for the group was down to $1,031m in FY20, compared to $1,076m in FY19, some of which as a direct impact of COVID-19, the overall net Group loss was mostly impacted by a revaluation of the net assets of the Lyttelton Port Company Ltd. Due to the specialised nature of the entity, all the Port assets are deemed as being inextricably linked and are therefore treated as a single cash generating unit (CGU) for valuation and impairment purposes. This means that all of its assets work together to generate cash flows. As at 30 June 2020, LPC has changed its accounting policy from carrying property, plant and equipment at historical cost less depreciation and impairment to carrying property, plant and equipment at fair value as one CGU. This is in line with the Group policy of valuing land and buildings, and specialised assets at fair value. The impact of this change in accounting policy at LPC on the CCHL Group is a reduction in the value of the Port assets that form part of the CGU. As this net reduction is reducing the original cost of the assets, it impacts the statement of comprehensive income as a negative revaluation movement. The impact is a fair-value negative adjustment of $157.8m post tax to the Group financial profit. Please refer to the attached CCHL Group Annual Report for further commentary on the year end Group result. For further information please contact: Leah Scales Chief Financial Officer Christchurch City Holdings Ltd Phone +64 3 9418817 Mobile +64 21309489 leah.scales@cchl.co.nz End CA:00361840 For:CCH Type:ANNREP Time:2020-10-21 15:38:36