CCHL ANNOUNCES FULL YEAR RESULTS

This announcement reports on unaudited results for the year ended 30 June 2023 (FY23). o CCHL Group net profit: FY23 $99 million; FY23 Statement of Intent (SOI) target $68 million; FY22 $121 million The CCHL Group comprises the parent company (CCHL) and a diverse range of key infrastructure assets, including Orion New Zealand Limited (Orion), Christchurch International Airport Limited (CIAL), Lyttelton Port Company Limited (LPC), Enable Services Limited (Enable), City Care Limited (Citycare), EcoCentral Limited, RBL Property Limited and Development Christchurch Limited. The Group delivered a strong result for the FY23 financial year despite significant economic headwinds. CIAL has continued to benefit from the recovery of the tourism sector, with domestic passenger numbers returning closer to pre-pandemic levels. Enable's transition to a successful network operator is reflected in improvements in operating performance while LPC's increased focus on sustainable profitability is also reflected in steady operating results. Citycare's acquisition of Spencer Henshaw in September 2022 has added to the lift in performance across its property and water divisions in FY23. The Group recorded a net profit after tax (NPAT) for FY23 of $99 million, compared with $121 million last year. While this is a decrease of $22 million or 18% on prior year, the prior year's results included fair value gains on CIAL's investment property of $52 million (net of tax) while the current year included only $5 million (net of tax). The Group FY23 NPAT of $99 million exceeded the Group's SOI target of $68 million (FY22: $65 million), noting that SOI targets exclude fair value gains and losses on investment property. Normalised NPAT (excluding fair value gains and losses on investment property) for FY23 was $94 million and $69 million for the prior year. The $25 million (36%) increase in normalised FY23 NPAT benefitted from the improved performance in airport operations, and comes despite continued pressure on operating costs across the Group. Citycare and Enable also contributed to the improved operating result. Citycare performed well in delivering their water and property contracts, along with effective cost management in an environment of continued inflationary pressures. Enable achieved a strong result off the back of growth in cumulative connections and effective cost control. LPC delivered a solid result which reflected recent pricing initiatives that offset softer container volumes and increased costs including a significant one-off cost in excess of $2m net of tax for the removal of a jetty as a result of fan worm issues. Despite the constraints of the Commerce Commission's default price path regime and demanding economic conditions, Orion also delivered a solid performance this year. Total operating revenue for the Group for FY23 was $1,446 million compared to $1,056 million last year, an increase of $390 million or 37%. Key drivers of increased FY23 operating revenue for the Group were increases from: o Citycare of $271 million (88%) year on year including the contribution of the Spencer Henshaw Group acquired by Citycare on 2 September 2022; and o CIAL of $64 million (46%) year on year reflecting improved airport operational performance with domestic passenger numbers returning closer to pre-pandemic levels. Please refer to the attached Full Year results announcement for further commentary on the year-end Group and Parent results. Please note this announcement is based on unaudited financial statements, which are in the process of being audited by Audit New Zealand. The CCHL Group Annual Report will be released to the market by Friday 29 September 2023 as required by NZX Listing Rule 3.6.1. For further information please contact: Toni Rowell Chief Financial Officer Christchurch City Holdings Ltd Phone +64 3 941 8374 Mobile +64 21 896 486 toni.rowell@cchl.co.nz End CA:00417299 For:CCH Type:FLLYR Time:2023-08-29 15:40:23