Transurban Group Ltd. · ASX:TCL
Transurban — Investor Day (September 2014)
85 slides from Transurban's investor day presentation, Sep 18, 2014
Slide 1: Transurban Investor Presentation (ASX release)
asx release For personal use only 18 September 2014 Transurban Investor Presentation Please find attached a presentation that will be provided at a Transurban investor day today. The presentation will also be webcast live from 10:00am AEST on the Transurban website: www.transurban.com. Amanda Street
Slide 2: Transurban 2014 Investor Day
For personal use only 18 SEPTEMBER 2014 TRANSURBAN 2014 INVESTOR DAY
Slide 3: Disclaimer & Basis of Preparation
DISCLAIMER & BASIS OF PREPARATION For personal use only The Transurban Group is a triple stapled security listed on the Australian Securities Exchange (“ASX”) comprising Transurban Holdings Limited (ACN 098 143 429) (“THL”), Transurban International Limited (ACN 121 746 825) (“TIL”) and Transurban I
Slide 4: Welcome
WELCOME For personal use only CEO SCOTT CHARLTON TRANSURBAN 2014 INVESTOR DAY 3
Slide 5: Agenda
AGENDA For personal use only 10.00 Welcome Scott Charlton Chief Executive Officer 10.15 Brisbane network Wes Ballantine Group General Manager Queensland Darryn Paterson Acting Group General Manager Strategy Leigh Petschel Acting Chief Financial Officer 11.30 Break 11.50 Melbourne network Vin Vassall
Slide 6: Melbourne: Our Network Footprint
MELBOURNE OUR NETWORK FOOTPRINT For personal use only CITYLINK 1999 $1.8 billion TULLA-CALDER INTERCHANGE 2007 $150 million M1-CITYLINK UPGRADE1 2010 $1.39 billion CITYLINK-TULLA WIDENING Expected $850 million 2017 Opened Construction cost 1. Monash-CityLink-West Gate upgrade – joint project with th
Slide 7: Melbourne: Our Network Footprint
MELBOURNE OUR NETWORK FOOTPRINT For personal use only CONSTRUCTION JOBS1 CUSTOMER ACCOUNTS FOR UPGRADE PROJECTS 2,400 1. Southern Link upgrade, tunnels 1.1M resurfacing and CityLink-Tulla widening O&M JOBS2 COMMUNITY BENEFITS 3 ON CITYLINK FROM M1-CITYLINK UPGRADE 80 2. Transurban employees and cont
Slide 8: Sydney: Our Network Footprint
SYDNEY M5 SOUTH WEST MOTORWAY OUR NETWORK FOOTPRINT 1992 $380 million For personal use only HILLS M2 1997 $640 million EASTERN DISTRIBUTOR HILLS M2 UPGRADE ~$700 million1 1999 $680 million Opened 2013 CROSS CITY TUNNEL 2005 $680 million WESTLINK M7 2005 $1.5 billion LANE COVE TUNNEL M5 WEST WIDENING
Slide 9: Sydney: Our Network Footprint
SYDNEY OUR NETWORK FOOTPRINT For personal use only CONSTRUCTION JOBS1 CUSTOMER ACCOUNTS NPV ECONOMIC CONTRIBUTION3 FOR UPGRADE PROJECTS APPROXIMATELY AN ESTIMATED 2,500 1. Hills M2 upgrade, M5 West widening 350K $22.7B FROM SYDNEY’S and NorthConnex TOLL ROAD NETWORK O&M JOBS2 HILLS M2 UPGRADE 3. 200
Slide 10: Brisbane: Our Network Footprint
BRISBANE CLEM7 OUR NETWORK FOOTPRINT 2010 $3.0 billion For personal use only GO BETWEEN BRIDGE 2010 $320 million GATEWAY & LOGAN OWNERSHIP TRANSFER 2011 $3.08 billion GATEWAY UPGRADE PROJECT 2011 $2.12 billion LEGACY WAY Expected $1.5 billion mid 2015 GATEWAY UPGRADE NORTH Expected $1.162 billion 20
Slide 11: Brisbane: Our Network Footprint
BRISBANE OUR NETWORK FOOTPRINT For personal use only CONSTRUCTION JOBS O&M JOBS1 CUSTOMER ACCOUNTS 1,700 120 GATEWAY UPGRADE 1. Transurban employees and contractors 1.2M CLEM7 GATEWAY MOTORWAY TRAVEL TIME SAVINGS TRAVEL TIME SAVINGS OF UP TO OF UP TO 17mins COMPARED TO 22mins COMPARED TO ARTERIAL RO
Slide 12: Northern Virginia: Our Network Footprint
NORTHERN VIRGINIA OUR NETWORK FOOTPRINT 495 EXPRESS For personal use only LANES 2012 US$1.7 billion 95 EXPRESS LANES Expected US$830 million late 2014 Opened Construction cost TRANSURBAN 2014 INVESTOR DAY 11
Slide 13: Northern Virginia: Our Network Footprint
NORTHERN VIRGINIA OUR NETWORK FOOTPRINT For personal use only CONSTRUCTION JOBS1 O&M JOBS PROJECTS GENERATED2 495 EXPRESS LANES APPROXIMATELY OVER 1,200 60 1. Transurban employees and contractors $5B IN ECONOMIC ACTIVITY 95 EXPRESS LANES AND MORE THAN 1,500 28K JOBS 1. At peak construction periods 2
Slide 14: Transport Innovation: Technology and Policy
TRANSPORT INNOVATION TECHNOLOGY AND POLICY For personal use only TRANSURBAN 2014 INVESTOR DAY 13
Slide 15: Transport Innovation: Practical and Sustainable Design
TRANSPORT INNOVATION PRACTICAL AND SUSTAINABLE DESIGN For personal use only TRANSURBAN 2014 INVESTOR DAY 14
Slide 16: Transport Innovation: Sustainability and Safety
TRANSPORT INNOVATION SUSTAINABILITY AND SAFETY For personal use only TRANSURBAN 2014 INVESTOR DAY 15
Slide 17: Queensland Market Update
QUEENSLAND MARKET UPDATE For personal use only WES BALLANTINE, GROUP GENERAL MANAGER QUEENSLAND TRANSURBAN 2014 INVESTOR DAY 16
Slide 18: Queensland Network: Initial Observations
QUEENSLAND NETWORK INITIAL OBSERVATIONS For personal use only FY15 budget forecast in line with bid case assumptions and expected cash distribution to TCL Early integration proceeding well Current Logan pavement works nearing completion Solid portfolio of network opportunities TRANSURBAN 2014 INVEST
Slide 19: Gateway Motorway
GATEWAY MOTORWAY For personal use only CHARACTERISTICS OPPORTUNITIES Only river crossing Gateway Upgrade North east of CBD Gateway Bridge Pacific Motorway duplication completed intersection upgrade 2011 Key connector to Brisbane Airport, Port of Brisbane and Australia TradeCoast Traffic grow
Slide 20: Gateway: Annual Average Daily Traffic
GATEWAY ANNUAL AVERAGE DAILY TRAFFIC1 For personal use only YTD FY152 Traffic 2.7% Revenue 5.8% PROPORTIONAL REVENUE OF QLD MARKET 48% Total 98,367 104,048 105,614 108,478 Motorbikes Light Commercial Vehicles Heavy Commercial Vehicles Cars 1. Includes Gateway Bridge toll point. 2. YTD to 12
Slide 21: Gateway Upgrade North: Project Overview
GATEWAY UPGRADE NORTH PROJECT OVERVIEW For personal use only PROJECT SCOPE QM APPOINTED STATE’S AGENT TO DELIVER 11.3km six lane upgrade PACKAGES 2 & 3 Upgrade adjoins concession boundary August Procurement process 2014 commenced $1.162B project budget (State and Federal Government Mid- Constr
Slide 22: Logan Motorway
LOGAN MOTORWAY For personal use only CHARACTERISTICS OPPORTUNITIES Established asset in Ramp modifications growth corridor Mt Lindesay Highway Key commercial widening vehicle route Wembley Road Pavement Rectification intersection upgrade Program commenced April 2013 ‒ Stage 2 scheduled f
Slide 23: Logan Motorway Works: Pavement Rectification Program
LOGAN MOTORWAY WORKS PAVEMENT RECTIFICATION PROGRAM For personal use only WESTBOUND MT LINDESAY HWY TO IPSWICH MWY April Stage 1 construction 2013 commenced WESTBOUND WEMBLEY ROAD TO MT LINDESAY HWY Early Sep Stage 2 construction 2013 commenced End July Stage 1 completed 2014 PROJECT SCOPE UNDER REV
Slide 24: Logan Motorway: Annual Average Daily Traffic
LOGAN MOTORWAY ANNUAL AVERAGE DAILY TRAFFIC1 For personal use only YTD FY152 Traffic -2.9% Revenue 0.5% PROPORTIONAL REVENUE OF QLD MARKET 37% Total 135,132 141,123 147,555 148,684 Motorbikes Light Commercial Vehicles Heavy Commercial Vehicles Cars 1. Includes Kuraby, Loganlea, Heathwood and
Slide 25: Clem7
CLEM7 For personal use only CHARACTERISTICS OPPORTUNITIES CBD bypass direct to Asset relaunch airport, northern ‒ signage upgrade suburbs and ‒ marketing TradeCoast campaign Maximum tolls applied Opportunities with for cars from 1 January AirportlinkM7 and 2014 Legacy Way (corridor Traffic
Slide 26: Clem7 Relaunch: Reducing Confusion
CLEM7 RELAUNCH REDUCING CONFUSION For personal use only TRANSURBAN 2014 INVESTOR DAY 25
Slide 27: Clem7: Annual Average Daily Traffic
CLEM7 ANNUAL AVERAGE DAILY TRAFFIC For personal use only YTD FY151 Traffic -2.1% Revenue 9.9% PROPORTIONAL REVENUE OF QLD MARKET 12% Total 25,893 26,647 Motorbikes Light Commercial Vehicles Heavy Commercial Vehicles Cars 1. YTD 12 September 2014 vs pcp. TRANSURBAN 2014 INVESTOR DAY 26
Slide 28: Go Between Bridge
GO BETWEEN BRIDGE For personal use only CHARACTERISTICS OPPORTUNITIES Connects key inner Ongoing development city precincts of West End and South Brisbane Projected population and employment growth Brisbane City Council’s of >4% per annum for Kurilpa Master Plan 10 years1 expected to attract
Slide 29: Go Between Bridge: Annual Average Daily Traffic
GO BETWEEN BRIDGE ANNUAL AVERAGE DAILY TRAFFIC For personal use only YTD FY151 Traffic 0.1% Revenue 4.2% PROPORTIONAL REVENUE OF QLD MARKET Total 3% 11,693 11,436 Motorbikes Light Commercial Vehicles Heavy Commercial Vehicles Cars 1. YTD 12 September 2014 vs pcp. TRANSURBAN 2014 INVESTOR DAY
Slide 30: Legacy Way
LEGACY WAY For personal use only CHARACTERISTICS OPPORTUNITIES On schedule for Western Freeway completion first half upgrade opening to calendar 2015 coincide with Legacy Way opening Twin two-lane 4.6km tunnel Optimal pricing point to be determined Concession to operate the road from compl
Slide 31: Legacy Way Launch
LEGACY WAY LAUNCH For personal use only TAKING LEGACY WAY TO MARKET March Three-phase marketing 2014 campaign commenced Early Opening tolling plan 2015 announced Mid Targeted project 2015 completion LEGACY WAY OPENING TRANSURBAN 2014 INVESTOR DAY 30
Slide 32: Network Opportunities
NETWORK OPPORTUNITIES For personal use only Gateway North Future opportunity to add value to the broader network AirportlinkM7 Asset sale anticipated later this year Queensland Motorways has not participated in recent debt sell downs Pacific Motorway interchange upgrade State Government unde
Slide 33: Market Demographics
MARKET DEMOGRAPHICS For personal use only DARRYN PATERSON, ACTING GROUP GENERAL MANAGER STRATEGY TRANSURBAN 2014 INVESTOR DAY 32
Slide 34: Strong Market Outlook
STRONG MARKET OUTLOOK For personal use only FORECAST POPULATION FORECAST EMPLOYMENT GROWTH (2014-2018) GROWTH (2014-2018) Brisbane Sydney Melbourne Source: Deloitte Access Economics, Business Outlook, June 2014 TRANSURBAN 2014 INVESTOR DAY 33
Slide 35: Growth in South-East Queensland: Population
GROWTH IN SOUTH-EAST QUEENSLAND KEY GROWTH CENTRES For personal use only Population Growth Centre CBD NW Inner Brisbane NW Outer Brisbane SE Inner Brisbane SE Outer Brisbane Caboolture Ipswich City Logan City Pine Rivers Redcliffe Redland City Gold Coast West Source: NIEIR January 2014 TRANSURBAN 20
Slide 36: Growth in South-East Queensland: Employment
GROWTH IN SOUTH-EAST QUEENSLAND KEY GROWTH CENTRES For personal use only Employment Growth Centre CBD Queensland Network NW Inner Brisbane NW Outer Brisbane SE Inner Brisbane SE Outer Brisbane Caboolture Ipswich City Logan City Pine Rivers Redcliffe Redland City Gold Coast West Source: NIEIR January
Slide 37: Commercial Travel
COMMERCIAL TRAVEL For personal use only COMMERCIAL VEHICLE TRAVEL ACROSS TCL PORTFOLIO IN FY14 Light Commercial Vehicles Heavy Commercial Vehicles TRANSURBAN 2014 INVESTOR DAY 36
Slide 38: Key Trip Drivers: Industrial Growth Centres
KEY TRIP DRIVERS INDUSTRIAL GROWTH CENTRES For personal use only QLD FREIGHT 2% Road TRAFFIC VOLUME BY Rail MODE 29% Sea Air (0.01%) 69% Source: Centre for Transport Energy and The Environment Queensland Transport Facts 2013 VOLUME OF TRUCKS ON KEY SOUTH-EAST QUEENSLAND ROADS PER AVERAGE WEE
Slide 39: Key Trip Drivers: Port and Airport Growth
KEY TRIP DRIVERS INDUSTRIAL GROWTH CENTRES For personal use only PORT AND QLD FREIGHT $110M upgrade to improve road access to 2% Road AIRPORT TRAFFIC Port of Brisbane targeted completion 20171 GROWTH VOLUME BY Rail $1.3B additional runway expected to be completed MODE 29% by 20202 Sea ‒ fl
Slide 40: Financing Structure/Tax
FINANCING STRUCTURE/TAX For personal use only LEIGH PETSCHEL, ACTING CHIEF FINANCIAL OFFICER TRANSURBAN 2014 INVESTOR DAY 39
Slide 41: Summarised Group Structure
SUMMARISED GROUP STRUCTURE STAPLED STRUCTURE For personal use only TRANSURBAN HOLDINGS LIMITED TRANSURBAN HOLDING TRUST TRANSURBAN INTERNATIONAL LIMITED ROAD/OPERATING CORPORATE ENTITIES ROAD/OPERATING ENTITIES OTHER ENTITIES CORPORATE ENTITIES ENTITIES Including: Companies operating and maintaining
Slide 42: Tax Groups
TAX GROUPS For personal use only TCL SECURITY HOLDERS FRANKED DIVIDENDS TRUST DISTRIBUTIONS THL THT TIL THL TAX GROUP DIVIDENDS2 (WITH FRANKED INTEREST ON TRUST INTEREST TRUST FOREIGN TAX CityLink CityLink Trust DIVIDENDS LOAN NOTES DISTRIBUTIONS ON TLNs DISTRIBUTIONS CREDITS) Melbourne Limited Sun
Slide 43: Infrastructure Tax Framework
INFRASTRUCTURE TAX FRAMEWORK For personal use only Amortisation of capital investment and funding cost Infrastructure assets require billions of dollars of upfront capital investment Amortisation of investment reduces tax in early years of concession Continued investment can extend amortisatio
Slide 44: Debt Maturity Profile and Hedging
DEBT MATURITY PROFILE AND HEDGING For personal use only TCL DEBT JUNE 2014 TCL DEBT PROJECTED JUNE 20151 Hedging reduces exposure to interest rate movement Longer tenor being achieved to push interest rate exposure further out Financing activity post June 2014: ‒ QM A$2.9Bn – July 2014 ‒ M7 A$
Slide 45: CPI Linked Revenue
CPI LINKED REVENUE EMBEDDED INFLATION PROTECTION For personal use only MOTORWAY CPI MINIMUM FLOOR CityLink Yes 4.5%1 Hills M2 Yes 4% Lane Cove Tunnel Yes 0%2 M1 Eastern Distributor Yes 4%3 Westlink M7 Yes None4 M5 South West Motorway Yes 0%5 Cross City Tunnel Yes 3%6 Queensland assets (Gateway, Loga
Slide 46: FY14 Pro Forma P&L and Free Cash
FY14 PRO FORMA P&L AND FREE CASH For personal use only YEAR ENDED YEAR ENDED QM CONTRIBUTION TO FREE CASH QM PROFIT AND LOSS 30 JUNE 2014 ($M) 30 JUNE 2014 ($M) Cash flows from operating activities 92.5 Toll revenue 370.4 Adjusted for: Fee revenue 31.5 Payments for maintenance of intangible assets 8
Slide 47: Integration
INTEGRATION For personal use only WES BALLANTINE, GROUP GENERAL MANAGER QUEENSLAND TRANSURBAN 2014 INVESTOR DAY 46
Slide 48: First Impressions
FIRST IMPRESSIONS DUE DILIGENCE ASSUMPTIONS CONFIRMED For personal use only Commercialisation of business Management committed to ongoing improvement and integration Alignment of operating model presents improvement opportunities Robust technology platforms TRANSURBAN 2014 INVESTOR DAY 47
Slide 49: Queensland Integration
QUEENSLAND INTEGRATION For personal use only Post acquisition QLD Leadership review Announcement New Queensland Motorways’ Enterprise Agreement ratified by Fair Work Agreement Leadership changes New leadership team validation of integration Z business case FY15 reforecast Corporate technology integr
Slide 50: Operating Model: O&M Contracts
OPERATING MODEL O&M CONTRACTS For personal use only FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Gateway Motorway Maintenance Gateway and Logan1 GMS (Leighton/Lend Lease) Option to extend Logan Motorway1 Maintenance Gateway and Logan1 Transfield Services Two 1-year options to extend CLEM7and Log
Slide 51: Integration: EBITDA Targets and Toll Revenue
INTEGRATION EBITDA TARGETS AND TOLL REVENUE For personal use only QLD EBITDA MARGIN Driving to average NSW margin FY14 TOLL REVENUE BY ASET ($M) Gateway Motorway 176.7 Logan Motorway 139.5 CLEM7 42.9 Go Between Bridge 11.3 TOTAL 370.4 TRANSURBAN 2014 INVESTOR DAY 50
Slide 52: Victorian Market Update
VICTORIAN MARKET UPDATE For personal use only VIN VASSALLO, GROUP GENERAL MANAGER VICTORIA TRANSURBAN 2014 INVESTOR DAY 51
Slide 53: Market Overview
MARKET OVERVIEW For personal use only TODAY TOMORROW Hands-on operations CityLink-Tulla widening project to commence On-road technology 2015 advancements East-West Link interface Customer and channel management Network enhancements TRANSURBAN 2014 INVESTOR DAY 52
Slide 54: Proactive Management
PROACTIVE MANAGEMENT LEVERAGING CAPABILITIES For personal use only TRANSLINK OPERATIONS Acquisition in May 19 employees Direct management of road operations and incident response ENHANCED DIRECT SAFETY INCREASED LANE INCIDENT MANAGEMENT FOCUS AVAILABILITY RESPONSE TRANSURBAN 2014 INVESTOR DAY
Slide 55: Technology Enhancements
TECHNOLOGY ENHANCEMENTS OVERHEIGHT VEHICLE DETECTION SYSTEM For personal use only Implemented 4 August Activated 12 times − 10 at the Burnley Tunnel − 2 at the Domain Tunnel Upgrade includes: − Additional height detectors − Enhanced communications − Revised protocols TRANSURBAN 2014 INVESTOR D
Slide 56: Enhancing Customer Interface
ENHANCING CUSTOMER INTERFACE FURTHER OPPORTUNITIES FOR GROWTH For personal use only 54% customer self service rate* FY13 FY14 Total visits to website 4.5M 6.1M FY13 FY14 Visits from mobile devices 1.1M 2.2M FY13 FY14 Visits from PCs 3.4M 3.9M FY13 FY14 % of mobile devices 25% 37% * As at June 2014 T
Slide 57: Proactive Customer Communications
PROACTIVE CUSTOMER COMMUNICATIONS For personal use only TOLL NOTICES REFERRED FOR ENFORCEMENT TOLL NOTICE PAYMENT RATES - FY14 - FY13 REDUCED BETTER PROACTIVE HIGHER PAYMENT INFRINGEMENT CUSTOMER COMMUNICATIONS RATES VOLUMES EXPERIENCE TRANSURBAN 2014 INVESTOR DAY 56
Slide 58: CityLink-Tulla Widening: Project Delivery
CITYLINK-TULLA WIDENING PROJECT DELIVERY For personal use only CONTRACTOR GOVERNMENT CONSTRUCTION PROCUREMENT APPROVAL PHASE July 2014 Late 2014 End 2014/ Early 2015 Mid-2015 2017 Tenders Preferred Targeted Targeted Targeted received contractor financial project project selected close commencement c
Slide 59: CityLink-Tulla Widening Project: Managing Construction Impacts
CITYLINK-TULLA WIDENING PROJECT MANAGING CONSTRUCTION IMPACTS For personal use only 1 extra lane 2 extra lanes TRAFFIC DISRUPTION PROJECT FUNDING MITIGATION MEASURES One-year concession extension Coordinated works periods Traffic uplift through extra capacity Agreed access framework
Slide 60: Addressing Near-Term Constraints
ADDRESSING NEAR-TERM CONSTRAINTS For personal use only CITYLINK AADT FROM OPENING Focus on network enhancements and operational efficiencies to address capacity constraints TRANSURBAN 2014 INVESTOR DAY 59
Slide 61: Network Opportunities
NETWORK OPPORTUNITIES For personal use only East-West Link Stage 1 Committed and preferred tenderer selected East-West Link Stage 2 Timing to be determined North East Link Flagged as a key priority by the RACV No political commitment Extra lanes to Melbourne Airport Vic and Federal governm
Slide 62: USA Market Update
USA MARKET UPDATE For personal use only JENNIFER AUMENT, GROUP GENERAL MANAGER NORTH AMERICA TRANSURBAN 2014 INVESTOR DAY 61
Slide 63: Market Overview
MARKET OVERVIEW For personal use only TODAY TOMORROW Express Lanes concept 95 Express Lanes proving up project to open 2014 495 Express Lanes Combined operation 22 months into centre and back office operation Network synergies Expanding customer base Refining tolling algorithm TRANSURB
Slide 64: Express Lanes Usage
495 EXPRESS LANES USAGE INCREASED CORRIDOR CAPTURE1 For personal use only BELTWAY DRIVERS EXPRESS LANES USAGE 6 in 10 29% 30% Beltway users from 17% from 21% (58%) have now used the lanes vs 39% in Q3 2013 41% from 60% 1. September 2013 research compared to May 2014 research. TRANSURBAN 2014 I
Slide 65: Travel Time Reliability
TRAVEL TIME RELIABILITY MAJOR CUSTOMER DRIVER For personal use only TRAVEL TIME: AM PEAK FULL-LENGTH 495 EXPRESS LANES – NORTH BOUND TYPICAL THURSDAY 8:30AM GENERAL PURPOSE 495 EXPRESS LANES LANES 18-50 mins <10 mins TRANSURBAN 2014 INVESTOR DAY 64
Slide 66: Customer Behaviour
CUSTOMER BEHAVIOUR UNIQUE MARKET INSIGHT For personal use only Percentage of Time Customers Take 495 Express Lanes vs. Beltway (Shown: Frequent Express Lanes users taking the Express Lanes to destination) School 52% Commute to work 48% Commute from work 48% Pick up children 44% Visit friends or fami
Slide 67: Express Lanes Timeline
95 EXPRESS LANES TIMELINE For personal use only COMPLETED REMAINING Late August September Sep-Oct October November December December Toll point All bridges Overhead System Paving System user Contraflow Joint Road turnover complete signage integrated complete acceptance testing system opens testing t
Slide 68: Key Differences and Express Lanes Operation
KEY DIFFERENCES 495 AND 95 EXPRESS LANES For personal use only OPERATION Function Circumferential Radial Length 10 miles / 16km 28 miles / 45km Access All or nothing decision Multiple entry and exit points Directionality Dual direction Reversible Capacity Addition of 50% capacity Addition of approx
Slide 69: Integrated Operating Model
INTEGRATED OPERATING MODEL ONE NETWORK For personal use only OPERATIONAL SYNERGIES CUSTOMER BENEFITS Single Traffic Control Single customer Operations Centre interface Single tolling system Network-wide E-ZPass - Consistent Transurban one method of payment O&M team and key Traffic manage
Slide 70: Attractive Market Demographics
ATTRACTIVE MARKET DEMOGRAPHICS For personal use only TYSONS 2014 PRE-2013 2013 APPROVED COMPLETED REZONING UNDER REZONING OR UNDER REVIEW CONSTRUCTION Garfield Parcel, Scotts Run South Lerner Tysons II, future phases Capital One Arbor Row, Hanover Block E Commons of McLean Mitre Building 4 Park Cres
Slide 71: Network Opportunities
NETWORK OPPORTUNITIES CONSISTENT WITH GROUP STRATEGY For personal use only MEDIUM TO LONG-TERM NEAR-TERM FOCUS OPPORTUNITIES Focus on maximising Leverage expertise existing network Add additional access in Tysons Corner Corridor-wide signage improvements Prove and extend - improve driver m
Slide 72: NSW Market Update
NSW MARKET UPDATE For personal use only GROUP GENERAL MANAGER ANDREW HEAD TRANSURBAN 2014 INVESTOR DAY 71
Slide 73: Market Overview
MARKET OVERVIEW For personal use only TODAY TOMORROW M5 West Widening In-housing operations completion NorthConnex Hills M2 post-upgrade financial close WestConnex Stage 2 GLIDe phase 1 opportunity TRANSURBAN 2014 INVESTOR DAY 72
Slide 74: Operational Excellence
OPERATIONAL EXCELLENCE HILLS M2/LANE COVE TUNNEL OPERATIONS AND MAINTENANCE For personal use only OPTIMISING LANE AVAILABILITY New asset management Prior agreement – SAVINGS Current agreement – system to support road pre April 2013 post April 2013 availability $17.4m* 18% $14.2m* Improved safety
Slide 75: Cost Recovery
COST RECOVERY IMAGE-BASED TRAFFIC FEES FULLY IMPLEMENTED For personal use only IMAGE-BASED TRAFFIC FEES 30 Jan 2012 full electronic tolling implemented on Hills M2 and ED Jan 2012 – June 2013 progressive roll out of IBT fees across all NSW assets and tag issuers ‒ Approx $10M additional revenue
Slide 76: Operational Efficiencies
OPERATIONAL EFFICIENCIES GLIDE DEPLOYMENT AND OPPORTUNITIES For personal use only 2011 2014 2015 2016-2019 GLIDE MULTI-ASSET MULTI-RETAIL INDUSTRY V1.0 GLIDE GLIDE TOLLING HUB Single asset NSW rollout NSW rollout Potential to operation– Phase 1 Phase 2 expand GLIDe CityLink capability Mult
Slide 77: Hills M2 Upgrade
HILLS M2 UPGRADE REVENUE GROWTH CONSISTENT WITH INVESTMENT CASE For personal use only REVENUE GROWTH Project completion delay offset by better revenue mix TRANSURBAN 2014 INVESTOR DAY 76
Slide 78: M5 West Widening: Staged Lane Openings
M5 WEST WIDENING STAGED LANE OPENINGS For personal use only Three lanes available ▬ Existing ▬ From end August 2014 ▬ Late October 2014 ▬ Early December 2014 TRANSURBAN 2014 INVESTOR DAY 77
Slide 79: M5 West Widening: Project Economics
M5 WEST WIDENING PROJECT ECONOMICS For personal use only Truck toll multiplier Increased from 2.2x to 3x over 8 quarters Traffic uplift Additional 35 lane kilometres Traffic impacts Concession extension During construction Additional 3.3 years to December 2026 Capital costs $400 million includes $50
Slide 80: NorthConnex: Project Delivery
NORTHCONNEX PROJECT DELIVERY For personal use only ENVIRONMENTAL IMPACT STATEMENT July EIS on public display 2014 Sept EIS closes 2014 Late Project approval target 2014 Financial close target CONSTRUCTION PHASE Early Construction 2015 commencement Late Targeted project 2019 completion TRANSURBAN 201
Slide 81: NorthConnex: Project Economics
NORTHCONNEX PROJECT ECONOMICS1 For personal use only Truck toll multiplier Westlink M7 from 1x to 3x over 8 quarters New tolls and concession NorthConnex opening Tolls aligned with M2 29-year concession to mid 2048 Concession extension Westlink M7 – 11-year concession extension from 2037 to mid 2048
Slide 82: Network Development Activities
NETWORK DEVELOPMENT ACTIVITIES GOVERNMENT PROJECTS COMPLEMENTING TCL ASSETS For personal use only WESTCONNEX STAGE 2 TIMELINE1 May $2B concessional loan 2014 allocated to NSW Government for WestConnex Stage 2 EOI for private sector Late involvement for Stage 2 major 2014 works Construction scheduled
Slide 83: Conclusion
CONCLUSION For personal use only CEO SCOTT CHARLTON TRANSURBAN 2014 INVESTOR DAY 82
Slide 84: Network of Opportunities
NETWORK OF OPPORTUNITIES For personal use only CLEAR MARKET DEFINITION ATTRACTIVE NETWORK POSITIONS SIGNIFICANT OPPORTUNITIES FOR NETWORK ENHANCEMENTS DELIVERING CONSISTENT PIPELINE TRANSURBAN 2014 INVESTOR DAY 83
Slide 85: For personal use only
For personal use only