Transurban Group Ltd. · ASX:TCL
Transurban — Investor Day (March 2012)
111 slides from Transurban's investor day presentation, Mar 29, 2012
Slide 1: ASX Release: Investor Presentation
asx release 29 March 2012 Investor Presentation Please find attached a presentation which will be provided at a Transurban investor day today. A recording of this presentation will be uploaded to the Transurban website www.transurban.com following completion of the presentation. Amanda Street Compan
Slide 2: Transurban 2012 Investor Day
TRANSURBAN 2012 INVESTOR DAY 29 MARCH 2012
Slide 3: Disclaimer and Basis of Preparation
DISCLAIMER AND BASIS OF PREPARATION This publication is prepared by the Transurban Group comprising Transurban Holdings Limited (ACN 098 143 429), Transurban Holding Trust (ARSN 098 807 419) and Transurban International Limited (ACN 121 746 825). The responsible entity of Transurban Holding Trust is
Slide 4: Introduction
INTRODUCTION WESLEY BALLANTINE – GENERAL MANAGER INVESTOR RELATIONS, MEDIA & GOVERNMENT
Slide 5: Evacuation Plan
ATIO —— a (ity) BSS EMBLY AREA Royal‘Botanlc Gardens soem: EVACUATION DIAGRAM aL Bee BD Gams orem A) RG, RT
Slide 6: Agenda
AGENDA TIME PRESENTATION SPEAKER Wesley Ballantine, General Manager Investor 9.30am Welcome and safety Relations, Media & Government 9.35am Overview Chris Lynch, Chief Executive Officer 9.45am Victoria Elizabeth Mildwater, Group General Manager Victoria 10.15am NSW Andrew Head, Group General Manager
Slide 7: Overview
OVERVIEW CHRIS LYNCH – CHIEF EXECUTIVE OFFICER
Slide 8: Corporate Overview
CORPORATE OVERVIEW • CEO selection process • Post new CEO announcement – corporate strategy to remain consistent • Focus will remain: – operational excellence – cost discipline – value based growth
Slide 9: Difficult Operating Environment
DIFFICULT OPERATING ENVIRONMENT • Weather impacts − Sydney has had wettest January, coolest February in a decade − Fewer trips (discretionary travel, construction), more accidents • Construction impacts − M2 impacts higher than expected and adjoining assets also affected − CityLink impacted in first
Slide 10: Victoria
VICTORIA ELIZABETH MILDWATER – GROUP GENERAL MANAGER VICTORIA
Slide 11: Agenda
AGENDA 1. Safety 2. CityLink overview 3. Performance 4. Tolling developments 5. Infrastructure activities 6. Development activities
Slide 12: Safety
SAFETY RED X CAMPAIGN Continued emphasis on ensuring compliance with the Red X lane use signals
Slide 13: CityLink Overview
CITYLINK OVERVIEW CRITICAL INFRASTRUCTURE FOR MELBOURNE • 22km motorway • Two state-of-the-art tunnels - each with three lanes • Fully opened December 2000 • Concession until 2034 • 100% electronically tolled • Key facts (first half FY 2012): – Over one million customer accounts – Average daily tran
Slide 14: Victoria P&L Results
VICTORIA P&L RESULTS FIRST HALF FY 2012 RESULTS HIGHLIGHTS – P&L AND TRAFFIC HIGHLIGHTS PROFIT AND LOSS 31 DEC 11 31 DEC 10 % 31 DEC 11 ($m) ($m) CHANGE Traffic Revenue Traffic growth (half year) 2.3% Toll revenue 235.4 217.9 8.0% Traffic growth (second quarter) 1.1% Fee and other revenue 21.2 20.4
Slide 15: Tolling Developments
TOLLING DEVELOPMENTS • In December 2011 GLIDe went live on CityLink • First major tolling upgrade since CityLink opened in 2000 THE NEW CITYLINK WEBSITE • Allows commercial and retail customers to easily manage accounts online • Since GLIDe go-live, and the associated improvements to the website, pu
Slide 16: Infrastructure Activities
INFRASTRUCTURE ACTIVITIES MAJOR RESURFACING WORKS UNDERTAKEN • First major Western Link resurfacing since 2000 • Reduced noise levels in surrounding areas • Smoother driving experience • 325,000 square metres resurfaced (since April 2011) • Completed safely around „live‟ traffic – minimise disruptio
Slide 17: Infrastructure Activities
INFRASTRUCTURE ACTIVITIES SOUTHERN LINK DEMOBILISATION COMPLETE MARCH 2012 – DEMOBILISATION OF THE SOUTHERN LINK PROJECT SITE WAS COMPLETED IMPROVEMENTS IN RELIABILITY OF TRAVEL TIME Toorak Road to Bolte Bridge workday travel times – PM peak • Improved reliability – greater confidence in reduced tra
Slide 18: Development Activities
DEVELOPMENT ACTIVITIES WESTERN LINK CONGESTION EVIDENT ADT GROWTH – FIRST HALF FY12 VERSUS FY11 RAMP Z QUEUE – AM PEAK % Increase Western Link inbound 0.0% • Moreland Road toll point (0.8%) • Racecourse Road toll point 0.3% • Bolte Bridge toll point 0.8% Western Link outbound 2.0% Domain tunnel 5.2%
Slide 19: Development Activities
DEVELOPMENT ACTIVITIES WHAT CAN WE DO ABOUT IT? VARIABLE SPEED LIMITS FREEWAY MANAGEMENT SYSTEM • Reduce the speed differential between lanes on Bolte Bridge – safety issue • Control the flow of traffic inbound on Western Link and Bolte Bridge – improve throughput ALTERNATIVE POWER STREET EXIT • Cur
Slide 20: Related Network Development
RELATED NETWORK DEVELOPMENT OTHER THINGS TO CONSIDER • Victorian Government number one road priority is the East-West Link project • Significant for Melbourne "The new East-West Link is a once-in-a-generation project that would transform the way people move around Melbourne in a way not seen since C
Slide 21: Conclusion
CONCLUSION CONTINUED STRONG PERFORMANCE WITH 10.3% EBITDA GROWTH Tolling developments • In December GLIDe went live and is performing as expected – first major toll upgrade since CityLink started Infrastructure activities • Major resurfacing activities on Western Link completed successfully • Contin
Slide 22: This Coming Sunday... Run for the Kids
THIS COMING SUNDAY... RUN FOR THE KIDS
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Slide 24: NSW
NSW ANDREW HEAD – GROUP GENERAL MANAGER NSW
Slide 25: Agenda
AGENDA 1. NSW overview 2. Safety 3. Performance 4. M2 Upgrade 5. M5 Widening 6. M7 – Erskine Park Link Road 7. Other enhancement projects 23
Slide 26: NSW Overview
NSW OVERVIEW OWNERSHIP AND CONTROL Toll road assets Ownership interest Board seats TCL managed Hills M2 100% N/A Lane Cove Tunnel 100% N/A M1 Eastern Distributor 75.1% 3 out of 4 (and Chair) Westlink M7 50% 2 out of 4 M5 50% 2 out of 5 (and Chair) Tolling brands Preferred tolling provider Roam
Slide 27: Safety
SAFETY • M2 Upgrade reached almost 1,800,000 hours (Jan 2011 – Feb 2012) with lost time injuries totalling three for the project • LCT-MRE and ED sites incorporated into TU AS4801 accreditation (Oct 2011) • Ongoing due diligence and audit of safety system
Slide 28: NSW P&L Results
NSW P&L RESULTS FIRST HALF 2012 RESULTS HIGHLIGHTS – P&L AND TRAFFIC TRAFFIC AND REVENUE GROWTH PROFIT AND LOSS TRAFFIC TOLL REVENUE 31 DEC 11 31 DEC 10 31 DEC 11 % CHANGE GROWTH (%) GROWTH (%) ($M) ($M) Traffic and revenue growth Revenue Hills M2 (4.6%) (2.2%) Toll revenue 233.1 223.3 (1) 4.4% Lane
Slide 29: M2 Upgrade: Scope of Works
M2 UPGRADE SCOPE OF WORKS STAGE 2 Herring Rd / Christie Rd Ramps Western Zone Central Eastern Zone Zone Tunnel Zone STAGE 1 STAGE 3 Windsor Rd Ramps Project Completion and toll price uplift
Slide 30: Windsor Road Ramps
WINDSOR ROAD RAMPS • New ramp tolls (2009 levels) – $1.67 (cars) and $5.02 (trucks) • There is currently a large distance 12km between access points (12km) between west facing access points to the Orbital New • Additional revenue for Westlink M7 ramps expected from longer trip lengths
Slide 31: Norfolk Tunnel
NORFOLK TUNNEL • Hawkesbury sandstone supported by steel rock bolts and fibrecrete • Westbound interim widening - three narrow lanes, no 460m breakdown lane, reduced speed limits. • M2 Upgrade includes: widening to provide three lanes and shoulder, systems upgrade (including lighting to current Aust
Slide 32: Ramps Servicing Macquarie Park
RAMPS SERVICING MACQUARIE PARK • Herring Road and Christie Road ramps • New ramp tolls (2009 levels) – Macquarie $2.37 (cars) and $7.08 (trucks) University Proposed Christie Rd • Strong employment growth over last Entry (to CBD) Macquarie decade Shopping Centre • Significant expansion plans for Prop
Slide 33: M2 Upgrade: Construction Progress
M2 UPGRADE CONSTRUCTION PROGRESS – 60% COMPLETE EASTBOUND TUNNEL PROGRESS Eastbound Tube excavation 100% Existing complete (work underway on the 100% Tunnel pavement excavation) Widened section (3.7m) WORKS (INDICATIVE TIMING) FY11 FY12 FY12 FY13 FY13 Previous Guidance H2 H1 H2 H1 H2 Open As per pre
Slide 34: M2 Upgrade: Traffic Impacts
M2 UPGRADE TRAFFIC IMPACTS • Sluggish economy, wet weather and higher than Impact Existing New Ramps Net Impact Observed expected sensitivity to 6.0% 6.0% 4.0% 4.0% construction disturbance 2.0% 2.0% 0.0% 0.0% • Higher traffic diversion in -2.0% -2.0% recent months -4.0% -4.0% -6.0% -6.0% • Continui
Slide 35: M2 Upgrade: Project Benefits
M2 UPGRADE PROJECT BENEFITS • M2 Upgrade funding sources structured with near-term bias • Benefits begin to offset Concession extension 4 years construction traffic impacts in May 2012 with Windsor Road Traffic uplift following ramp opening project completion 7.7% toll increase (all toll points - en
Slide 36: M5 Widening: Project Overview
M5 WIDENING PROJECT OVERVIEW Already 4 lanes in each direction • Approximately $400 million project ($50m funded directly by NSW Government) • Interlink component funding 60:40 (debt:equity) • Additional lane to provide a minimum three lanes in each direction • Construction expected to commence earl
Slide 37: M5 Widening: Funding Sources
M5 WIDENING FUNDING SOURCES Low reliance on traffic uplift Traffic Uplift Truck Toll Multiplier Concession Extension • Traffic uplift (from additional capacity) • Approximately 50% of M5 users also use the M5 East • 3.3 year concession extension - from August 2023 to December 2026 • Higher truck tol
Slide 38: Westlink M7: Erskine Park Link Road
WESTLINK M7 ERSKINE PARK LINK ROAD • Work has commenced on the Erskine Park Link Road – a $55m project funded by NSW Government • Will provide a vital link between the Western Sydney Employment Area (WSEA) and the M7 and M4 motorways • Expected to be completed in 2013 • A key step in enabling the WS
Slide 39: O&M Enhancements: Cashless Tolling
O&M ENHANCEMENTS CASHLESS TOLLING Hills M2 • Reduction in cash percentage to less than 5% since M2 negotiations • Implemented on 30 January 2012 • Cost savings to M2 Upgrade project and ongoing O&M savings Eastern Distributor • Implemented at the same time as M2 • Less than 3% cash at time of implem
Slide 40: O&M Enhancements: Vehicle Fingerprinting
O&M ENHANCEMENTS VEHICLE FINGERPRINTING • Vehicle fingerprinting IMAGE EXTRACTION FEATURE − Automation of image processing has increased from 45% to 85% − Improved accuracy • Call centre optimisation project
Slide 41: O&M Enhancements: LCT-M2 O&M Contract Tender
O&M ENHANCEMENTS LCT- M2 O&M CONTRACT TENDER • Increased operational efficiency • Procurement of combined O&M services (competitive tender) • New contracts will seek to unlock economies of scale across the two 100% Transurban owned assets − EOI held late 2011 – six respondents submitted and outlined
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Slide 43: 495 Express Lanes Project Update
495 EXPRESS LANES PROJECT UPDATE KEN DALEY– PRESIDENT INTERNATIONAL DEVELOPMENT
Slide 44: Safety Focus
SAFETY FOCUS • Award-winning Transurban safety campaign - INJURIES Orange Cones, No Phones: surveys show a Industry Fluor-Lane drop in distracted driving Recordable 4.70 0.78 • Fluor Lane safety record is excellent Lost time 1.70 0.06 − Over seven million man hours worked with two lost time injuries
Slide 45: Capital Beltway HOT Lanes Summary
CAPITAL BELTWAY HOT LANES SUMMARY • 14 miles of High Occupancy Toll (HOT) lanes on Capital Beltway in Virginia • 75 year concession post construction • No Termination for Convenience • Dynamic system with variable tolls to maintain free flow traffic conditions • No charge for HOV-3+ and transit • Ex
Slide 46: Capital Beltway: The Problem
CAPITAL BELTWAY THE PROBLEM Source: Greater Washington 2050 Coalition, February 2009
Slide 47: Capital Beltway: The Project
CAPITAL BELTWAY THE PROJECT • Construction involves relocating the four „General Purpose Lanes‟ out to allow building of new lanes between Springfield Interchange and north of the Dulles Toll Road • Two new lanes in each direction, increasing the number of lanes to 12 • Upgrades to 11 interchanges i
Slide 48: Capital Beltway HOT Lanes Investment Proposition
CAPITAL BELTWAY HOT LANES INVESTMENT PROPOSITION
Slide 49: Washington Regional Status: Population and Employment
WASHINGTON REGIONAL STATUS POPULATION AND EMPLOYMENT • Washington regional population in 2010 WASHINGTON DC AND SURROUNDING COUNTIES was 6.6 million providing employment for 3.9 million • MWCOG 2010 forecasts show strong growth over the planning horizon MILLIONS 2025 2040 Population 7.8 8.6 Employme
Slide 50: Washington Regional Status: Wealth
WASHINGTON REGIONAL STATUS WEALTH • Average annual Gross Regional Product (GRP) growth of 5.3% since 1990 • 2009 GRP of $443bn which has doubled in the last 12 years • Second highest GRP per capita in the US ($71,323 in 2009) behind San Francisco • Washington is the fifth largest regional economy in
Slide 51: Congestion: Worst in the US
CONGESTION WORST IN THE US Yearly delay Congestion Travel time Excess fuel per Urban area per auto cost per auto index auto commuter commuter commuter Hours Rank Value Rank Gallons Rank Dollars Rank Very Large Average (15 areas) 50 1.26 39 1,166 Washington DC-VA-MD 70 1 1.30 2 57 1 1,555 2 Chicago I
Slide 52: Traffic & Revenue Update
TRAFFIC & REVENUE UPDATE • Traffic data shows conditions on I-495 Counterclockwise Travel Speeds (Georgetown Pike to Springfield Interchange ) the Beltway continue to be poor 75 • „Free speed‟ is >60mph Average Congested Speed (mph) 65 • „Free speed‟ not achieved during 55 daylight hours 45 Sep-11 •
Slide 53: Traffic & Revenue Update
TRAFFIC & REVENUE UPDATE • Traffic and revenue study completed prior to Financial Close in 2007 / 2008; original REVENUE: 2011 VERSUS 2007 FORECAST study completed by Transurban / Stantec 8% and audited by Arup 6% Change • Pluses and minuses due to MWCOG 4% demographic population and network 2% chan
Slide 54: Capital Beltway HOT Lanes Construction Update
CAPITAL BELTWAY HOT LANES CONSTRUCTION UPDATE
Slide 55: Construction Update
CONSTRUCTION UPDATE • Design build (DB) contractor and independent engineer forecasting „on time and on budget‟ completion • 34 of 36 toll gantries installed • Technical shelter fit out started • Trunk communications installed • DB contractor has no claims against the Concessionaire • HOT Operations
Slide 56: The Project View
THE PROJECT VIEW Springfield Interchange
Slide 57: The Project View
THE PROJECT VIEW January 2012: HOT lane footprint established Late 2010: Outer lane construction view
Slide 58: Capital Beltway: The Project
CAPITAL BELTWAY THE PROJECT • Factory acceptance tests completed for: − Traffic management system − Roadside equipment − Back office system (part) • Systems installation commencing April • Transponders on track for delivery commencing July Fully electronic tolling on the HOT lanes will allow custome
Slide 59: Preparing for Operations
PREPARING FOR OPERATIONS
Slide 60: "HOT" to "Express"
“HOT” TO “EXPRESS” • From January 2012 Capital Beltway HOT Lanes became known as 495 Express Lanes • Managed lanes, such as HOT lanes, are to be called “express lanes” per guidance from the Federal Highway Administration • Timing of education program launched with naming
Slide 61: 495ExpressLanes.com
495EXPRESSLANES.COM • Project website launched January 2012 • Provides targeted information to all user groups • Tools such as maps, trip planners, FAQs, how to use the lanes, understanding signage and pricing • Ability to sign up for alerts and customised information
Slide 62: Customer-Focused Website
_— RIcontactus = DRIVING EXPRESS LANES | YOURTRAVELOPTIONS | ABOUT FORWARD THIS PAGE SIGNUP NOW > Follow Us: Ei ie YOUR COMMUTE, YOUR WAY Travel on the Beltway is unpredictable_ Express Lanes will provide a reliable travel option that puts you in control of your commute. Enter your starting and endi
Slide 63: 495ExpressLanes.com
CAC RACE transes 495EXPRESSLANES.COM SS OO ACAaAA H -— fe | DRIVING EXPRESS LANES | YOURTRAVELOPTIONS | ABOUT | SICN IN HERE How Do You Travel? EB share RULES OF THE ROAD, JUST FOR YOU What you'll need to use the Express Lanes will depend on your choice of travel. | More Travel Options (@ Take Contr
Slide 64: 495ExpressLanes.com
ExpressLanes Follow Us: [FJ (6) UR TRAVEL OPTIONS Share ing Express Lanes a a 4 be rc] NEXT» S$ 3 bo () Using the Lanes a « q a V" Control how and = The 495 Express Lanes will have = = z= when you get there z signage to guide you to the lanes, iL = ° os a explain the rules of the road and ° o L $ Pr
Slide 65: 495ExpressLanes.com
CAC AKA SN 495EXPRESSLANES. COM | SEERA DK CC GG Follow Us ExpressLanes Have an account? DRIVING EXPRESS LANES SIGN IN HERE YOUR TRAVEL OPTIONS ABOUT Staying Safe MAKE SAFETY A TOP PRIORITY The Express Lanes will be easy to use and help you get where you need to go. However, there are some new aspec
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Slide 67: I-95 Express Lanes Project
I-95 EXPRESS LANES PROJECT MICHAEL KULPER– PRESIDENT NORTH AMERICA
Slide 68: Project Overview
PROJECT OVERVIEW • Overview / location − ~$1bn project - same partners as Capital Beltway: Transurban, Fluor and VDOT − Second major step in the creation of a regional network of express lanes in Northern Virginia, linking directly into the Capital Beltway Express Lanes − Expansion of existing I-95
Slide 69: Existing HOV
EXISTING mhont \ Existing HOV service; 30- miles, 2 reversible lanes
Slide 70: Three Lane Expansion
@e y — Existing HOV PRINCE WILLIAM COUNTY Betvice: 20. miles, 2 re reversible lanes Add third lane for 14 miles and improve existing HOV lanes |
Slide 71: Improve Existing HOV
Existing HOV service; 30- PRINCE WILLIAM COUNTY - miles, 2 en reversible lanes Improve existing HOV lanes; 6 Add third lane for 14 miles and improve existing HOV lanes N miles
Slide 72: Nine Mile Extension
Existing HOV service; 30- miles, 2 Improve existing HOV lanes; 6 miles reversible lanes Add third lane for Construct 9 mile extension; 2 reversible lanes 14 miles and improve existing HOV lanes
Slide 73: Eight New Access Points
Improve existing HOV lanes; 6 miles Construct 9 mile extension; 2 reversible lanes reversible lanes Add thi 14 miles and improve existing HOV lanes |
Slide 74: Strong Foundations
STRONG FOUNDATIONS • Congestion − Ranked worst in country for delay time and second worst for congestion 1 − Peak period delays exceed 30 minutes and variability can double „normal‟ delays − Lack of credible alternative routes or transport modes • Attractive demographics − Household incomes for coun
Slide 75: Receptive Market
RECEPTIVE MARKET Frustrated commuters Educated users • 59% of people consider traffic congestion to • Extensive community outreach be the biggest problem associated with living • Users will be familiar with the similar in Washington DC – more than all other Capital Beltway Express Lanes categories c
Slide 76: Tangible Solution
TANGIBLE SOLUTION USERS BENEFIT THROUGH INCREASED TRAVEL OPTIONS • Travel via the express lanes in both the morning and evening peak is significantly faster than the general purpose (GP) lanes. This allows drivers to significantly increase the distance they travel in the same amount of time AM peak
Slide 77: Manageable Construction
MANAGEABLE CONSTRUCTION EXPERIENCED TEAM, SOLID SECURITY PACKAGE • Experienced / committed partners − Same design build contractor as Capital Beltway − Excellent delivery and safety record • Straightforward construction − Three-year construction period − Mostly existing roadway − Moderate number of
Slide 78: Sound Traffic & Revenue Protections
SOUND TRAFFIC & REVENUE PROTECTIONS RISK MITIGATION UNDERPINNING SENSIBLE PROJECTIONS • A negotiated transaction delivering real protections for the concessionaire − Unrestricted tolling: No limitation on frequency or Development Unrestricted magnitude of rate resets Rights Tolling − Optimised reven
Slide 79: Financial Structure
FINANCIAL STRUCTURE ROBUST FEATURES • The funding structure will include an equity contribution, a government contribution and a subsidised debt package • Attractive debt features − TIFIA and Private Activity Bonds − Ability to defer interest payments − Attractive, fixed-rate pricing − Long tenor (3
Slide 80: Project Timeline
PROJECT TIMELINE Date Event December 2011 VDOT and sponsors reach agreement on major business terms December 2011 Environmental approval (FONSI) received December 2011 TIGER TIFIA award March 2012 Commence Early Works (detailed design for civil and TTMS scope) Second half 2012 Projected financial cl
Slide 81: Corporate Structure
CORPORATE STRUCTURE MICHAEL BURNETT – GENERAL MANAGER FINANCE CRISTINA WOLTERS – HEAD OF TAXATION RICHARD HILLS – ASSISTANT TREASURER WESLEY BALLANTINE – GENERAL MANAGER INVESTOR RELATIONS, MEDIA AND GOVERNMENT
Slide 82: Statutory Reporting
STATUTORY REPORTING • Triple stapled entity: three sets of statutory accounts − THL - group accounts − THT and TIL are stand-alone groups • Group accounts include 100% of the results of Transurban controlled assets: − CityLink − M1 Eastern Distributor − Hills M2 − Lane Cove Tunnel • The after-tax re
Slide 83: Proportional Reporting
PROPORTIONAL REPORTING • Transurban believes that proportional reporting provides a better reflection of the operating performance of the business • Proportional reporting is based on Transurban‟s ownership of assets – Aggregates individual P&L from each asset (multiplied by Transurban‟s ownership p
Slide 84: Free Cash
FREE CASH The Group‟s measure of cash generated by its operations that is available for distribution. 30 Jun „11 Source of information / explanation $M Cashflow from Operating Activities Statutory cash flow (includes cash inflow from M7 TLNs) 374.7 Cashflow from Operating Activities – M1 and M4 Indi
Slide 85: Transurban Specific Items
TRANSURBAN SPECIFIC ITEMS • IFRIC 12 – Service Concession Arrangements – Classification of assets and amortisation – Construction revenue and expenses recognised for asset upgrades – Maintenance provision and expense • Concession Notes/Promissory Notes • IBonds – Rolled off in August 2011 • Tolling
Slide 86: Stapled Structure
STAPLED STRUCTURE • Structure has evolved due to: – Historical accounting and taxation requirements – Ability to distribute cash from operations whilst operating entities are making large “accounting” losses (due to amortisation) – Tax efficiency of distribution (tax deferred distributions) – Non-re
Slide 87: Simplified Set Up for an Infrastructure Road Project
SIMPLIFIED SET UP FOR AN INFRASTRUCTURE ROAD PROJECT Dividends Distributions Tolls Rent land Borrow funds Trust Company Operating costs On lend funds (right to Interest (operator of underlying asset asset) Rent to state for land Rent to state for right to toll Pay interest e.g. land) Build road Righ
Slide 88: Summarised Group Structure
SUMMARISED GROUP STRUCTURE TRANSURBAN HOLDINGS TRANSURBAN HOLDING TRANSURBAN LIMITED TRUST INTERNATIONAL LIMITED CORPORATE CORPORATE ROAD/ OPERATING CORPORATE ENTITIES ROAD/OPERATING ENTITIES ENTITIES ENTITIES (DRIVE) ENTITIES CityLink Westlink Transurban Transurban Melbourne CityLink Trust Partner
Slide 89: Summarised Group Structure
SUMMARISED GROUP STRUCTURE OPERATING ENTITIES (AUSTRALIA)Operating Operatingentities entities(Australia) (Australia) TRANSURBAN HOLDINGS TRANSURBAN HOLDING TRANSURBAN LIMITED TRUST INTERNATIONAL LIMITED CORPORATE CORPORATE ROAD/ OPERATING CORPORATE ENTITIES ROAD/OPERATING ENTITIES ENTITIES ENTITIES
Slide 90: Summarised Group Structure
SUMMARISED GROUP STRUCTURE CORPORATE ENTITIES Operating Operatingentities entities(Australia) (Australia) TRANSURBAN HOLDING TRANSURBAN TRANSURBAN HOLDINGS LIMITED TRUST INTERNATIONAL LIMITED CORPORATE CORPORATE ROAD/ OPERATING CORPORATE ENTITIES ROAD/OPERATING ENTITIES ENTITIES ENTITIES (DRIVE) ENT
Slide 91: Summarised Group Structure
SUMMARISED GROUP STRUCTURE OPERATING ENTITIES (DRIVe) Operating Operatingentities entities(Australia) (Australia) TRANSURBAN HOLDINGS TRANSURBAN HOLDING TRANSURBAN INTERNATIONAL LIMITED LIMITED TRUST CORPORATE CORPORATE ROAD/ OPERATING CORPORATE ENTITIES ROAD/OPERATING ENTITIES ENTITIES ENTITIES (DR
Slide 92: Summarised Tax Groups
SUMMARISED TAX GROUPS Operating Operatingentities entities(Australia) (Australia) TRANSURBAN HOLDINGS TRANSURBAN HOLDING TRANSURBAN LIMITED TRUST INTERNATIONAL LIMITED CORPORATE CORPORATE ROAD/ OPERATING CORPORATE ENTITIES ROAD/OPERATING ENTITIES ENTITIES ENTITIES (DRIVE) ENTITIES CityLink Westlink
Slide 93: Tax Attributes
TAX ATTRIBUTES THL WESTLINK M1 EASTERN CONSOLIDATED M5 M4* DRIVe M7 DISTRIBUTOR TAX GROUP/THT Tax paying: Tax paying: Tax paying: Tax paying: Tax paying: Tax paying: No Yes No Yes (2012) No No Franking credits Franking credits Franking credits Franking credits Franking credits Franking credits pool:
Slide 94: Funding Structure
FUNDING STRUCTURE NON RECOURSE DEBT • Two groups of debt: Total non- – Corporate Senior ratings recourse (Moody‟s / Fitch) asset debt – Non recourse Hills M2 Not rated A$583m • Refinanced $5.2bn across 14 transactions since May (100%) 2009 Lane Cove Tunnel Not rated A$260m (100%) M1 Eastern Distribu
Slide 95: Security Structure
SECURITY STRUCTURE CORPORATE DEBT ASSETS (funded by non recourse debt) FY11 EBITDA (100%) Transurban Finance Senior secured Company lenders (Borrower) Corporate debt used to (rank pari passu) Hills M2 A$119.7m finance CityLink and (100%) general corporate purposes Corporate Security Lane Cove Tunnel
Slide 96: Stapled Structure
STAPLED STRUCTURE • TCL distributions to remain trust distributions as first priority (tax imperative) with pool of franking credits available for franked dividends over and above trust income in near term • Ongoing efforts to simplify structure – however, non recourse assets and tax impacts mean ma
Slide 97: Transurban
transurban
Slide 98: Toll Road Models: The Forecasting Tool
TOLL ROAD MODELS THE FORECASTING TOOL KEN DALEY – PRESIDENT INTERNATIONAL DEVELOPMENT JOHN MUNDY – GENERAL MANAGER TRAFFIC FORECACSTING
Slide 99: Modelling Toll Road Usage: Standard Elements
MODELLING TOLL ROAD USAGE STANDARD ELEMENTS Define the number Allocate the trips to Projected project trips of vehicles trips the road network and revenue Referred to as “Trip Generation”, Referred to as “Trip Assignment” “Distribution” and “Mode Choice” • Allocates the vehicles to the • Establishes
Slide 100: Modelling Toll Road Usage: Key Steps
MODELLING TOLL ROAD USAGE KEY STEPS Develop base year Future year model Generation of traffic model runs and revenue results • Used to demonstrate that the • Used to provide average • Used to convert modelled model developed has the weekday traffic and revenue (average weekday) results to capability
Slide 101: No Fundamental Difference Between Conventional and HOT Lane Models
THERE IS NO FUNDAMENTAL DIFFERENCE BETWEEN CONVENTIONAL AND HOT LANE MODELS • The same approach and tools are Traditional toll road HOT lane projects used to model the HOT lanes as for projects traditional toll roads Land use and input assumptions are Same • The modelling approach is based on Govern
Slide 102: Satisfying the Additional HOT Lane Requirements Is Simple and Intuitive
SATISFYING THE ADDITIONAL HOT LANE REQUIREMENTS IS SIMPLE AND INTUITIVE Basic toll schedule Model 1 Model 2 Model 3 Optimising revenues by time period Toll Rate The day is divided into separate time segments; each of which is modelled separately. This provides different tolls (a simple toll schedule
Slide 103: The Changes Required for Forecasting Are Minimal
THE CHANGES REQUIRED FOR FORECASTING ARE MINIMAL The changes in future year model runs is limited to parameters that are known or expected to change over time. All other factors remain unchanged in order to ensure the inter-relationships established in the base year remain valid. The key changes eff
Slide 104: Tolling Architecture
TOLLING ARCHITECTURE • Toll system is based on an „open architecture‟ – similar to CityLink • Nine toll points in each direction • Current traffic volumes vary from 180,000 vpd to > 200,000 vpd • HOT lane volumes expected to have a similar „pattern‟ • Toll level will be different at each toll point
Slide 105: 495 Possible Origins-Destinations
495 POSSIBLE ORIGINS-DESTINATIONS DESTINATIONS Spring Spring ORIGINS Brad. Gall. Lee I-66 Rt. 7 West. Jones DTR N. Term Int. Gap Springfield Interchange x x x x x x x Springfield Gap x x x x x x x Braddock Road x x x x x x x Gallows Road x x x x x x x I-66 x x x x x Northern Terminus x x x x x x x x
Slide 106: SR91 Express Case Study
transurban nnn ee RESS CASE STUDY | _- = TUDY | ay =— i | = ~ = » ae : . = | » 4 a C5 Ny ! we ] we J 2 i See | pe Nl lag J 7 y 7
Slide 107: SR91 Express Lanes
SR91 EXPRESS LANES • The SR91 facility links the counties of SR91 EXPRESS Riverside and Orange in California • The SR91 is a 10 mile HOT lane system that has two tolled lanes in each direction • The HOT Lanes were opened to the public in December 1995 • Free flow tolling approaches are used to elimi
Slide 108: SR91 Catchment Demographics
SR91 CATCHMENT DEMOGRAPHICS • The SR91 is predominately seen as a commuter route Annual unemployment rates Household wealth between Riverside and Orange 16 counties 14 United United $50, States States 221 $50, 221 • A comparison between the Unemployment rate (%) 12 Riverside Riverside $55,352 SR91 c
Slide 109: SR91 Traffic and Revenue Growth
SR91 TRAFFIC AND REVENUE GROWTH $60 16 • The SR91 has shown strong and Annual operating revenue (millions) 14 $50 sustained growth in both trips and 12 Annual trips (millions) revenue throughout $40 10 • Through the „great recession‟ of $30 8 Total Operating 6 2008 and 2009 trips and revenues $20 Re
Slide 110: SR91 Toll Rate Growth
SR91 TOLL RATE GROWTH • Average revenue per vehicle Average revenue per vehicle has $4.00 generally continued to climb since $3.50 Average Revenue per Vehicle Average revenues per vehicle the SR91 opened, with only brief $3.00 periods of flat or minor negative $2.50 growth $2.00 • Average toll per v
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