Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — Merger or Acquisition (November 2021)
13 slides from Aurizon's merger presentation, Nov 3, 2021
Slide 1: Morgans Briefing: Acquisition of One Rail and divestment of East Coast Rail
Morgans Briefing: Acquisition of One Rail and divestment of East Coast Rail 3 November 2021
Slide 2: Disclaimer
Disclaimer NO RELIANCE ON THIS DOCUMENT INFORMATION ON ONE RAIL AND EAST COAST RAIL This document was prepared by Aurizon Holdings Limited (ACN 146 335 622) (referred to as “Aurizon” which includes its related The information on One Rail and East Coast Rail (and their related entities) and their res
Slide 3: Today's presenters
Today’s presenters Andrew Harding George Lippiatt Managing Director & Chief Executive Chief Financial Officer & Group Officer Executive Strategy 3
Slide 4: Highlights
Highlights Acquisition of One Rail with integration of One Rail Bulk and divestment of East Coast Rail through a demerger or trade sale Increases Bulk’s share of haulage Integrated above IRR exceeds implied Transformative revenue1 to ~40%. and below rail returns from share acquisition Increased expo
Slide 5: One Rail operations
One Rail operations One Rail Bulk is an integrated rail business in central Australia. East Coast Rail provides coal haulage in Hunter Valley and Central Queensland ONE RAIL – OVERVIEW ONE RAIL BULK EAST COAST RAIL › Below Rail operator of Tarcoola to › Coal haulage in Hunter Valley and ⚫⚫⚫⚫⚫ Darwin
Slide 6: Greater exposure to new economy commodities
Greater exposure to new economy commodities There are over 250 mining projects1 under development across South Australia and Northern Territory GLOBAL TRENDS… …ARE DRIVING DEMAND FOR NEW ECONOMY COMMODITIES Commodity South Australia and Northern Territory Exposure Population growth, urbanisation and
Slide 7: One Rail Infrastructure
One Rail Infrastructure Acquisition almost doubles Aurizon's existing rail infrastructure Australian Rail Infrastructure Management (kilometres) 8,500km 6,600km 5,500km Remaining 5,130km concession Remaining period: concession 88 years period: 32 years 3,520km 2,670km 2,386km 2,460km 1,608km 1,700km
Slide 8: Highlights of One Rail Bulk
Highlights of One Rail Bulk Acquisition is aligned with Aurizon’s Bulk growth strategy and provides an additional growth platform INTEGRATED ABOVE AND BELOW RAIL BUSINESS ONE RAIL BULK: UNDERLYING EBITDA (A$m) ✓ Leading provider of intermodal and bulk freight in South Australia and Northern Territor
Slide 9: Transaction summary
Transaction summary Completion targeted for early CY2022 followed by East Coast Rail divestment process › Cash consideration of A$2.35 billion (plus ~$80m acquisition and divestment related fees) Acquisition of 100% of One Rail › Highly strategic and transformative acquisition for Aurizon and consis
Slide 10: Highlights of East Coast Rail
Highlights of East Coast Rail A highly cash generative business EXCLUSIVE HUNTER VALLEY HAULAGE RIGHTS REVENUE (A$m)1 230 ✓ Long-term rail haulage contract with Glencore to 2036 190 184 ✓ Minimum guaranteed volumes to 2034 with no commodity price risk ✓ Underpinned by lower cost, high energy (therma
Slide 11: Aurizon's value creation record
Aurizon’s value creation record Cashflows remain stable and the focus on transformation continues HIGHLIGHTS ✓ Negotiated and executed UT5 ✓ De-risked the Coal contract book ✓ Executed Bulk turnaround and delivered Phase 1 growth ✓ Strong shareholder distributions – over $4bn in the past six years ✓
Slide 12: Q&A
Q&A
Slide 13: Contact and further information
Contact and further information Chris Vagg James Coe Head of Investor Relations & Group Treasurer Manager Market Intelligence & Investor Relations +61 7 3019 9030 +61 7 3019 7526 Chris.Vagg@aurizon.com.au James.Coe@aurizon.com.au ASX: AZJ 13
Aurizon Holdings — Merger or Acquisition (November 2021) on 6ix