Transurban Group Ltd. · ASX:TCL
Transurban — Deutsche Bank Australasian Transport Conference 2006
23 slides from Transurban's conference presentation, Nov 28, 2006
Slide 1: Disciplined Growth in the USA
DISCIPLINED GROWTH IN THE USA Deutsche Bank Australasian Transport Conference 28 November 2006
Slide 2: Disclaimer
Disclaimer The Transurban Group is a triple stapled security listed on the Australian Stock Exchange comprising Transurban Holdings Limited (ACN 098 143 429), Transurban Holdings Trust (ARSN 098 807 419) and Transurban Limited (ACN 098 143 410). The responsible entity of the Transurban Holdings Trus
Slide 3: Agenda
Agenda • Transurban overview • Our differentiation • US market opportunities • Bid strategy • Funding US growth
Slide 4: Transurban overview
Transurban overview
Slide 5: Security price performance
Security price performance TCL MIG Autostrade Cintra Abertis Brisa 240 220 200 180 160 140 120 100 80 10 2 01 2 04 3 07 3 10 3 01 3 04 4 07 4 10 4 01 4 04 5 07 5 10 5 01 5 04 6 07 6 10 6 6 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 07 Autostrade listed 04 Cintra listed 04 by Ferrovial & M
Slide 6: Our differentiation
Our differentiation
Slide 7: Sponsor models
Sponsor models Investment banks & funds • Third party management • High management & advisory fees • Operations & customer service outsourced Construction Groups • Short term view of investments • Interest not aligned with longer term owners • Construction sponsored projects have significant equity
Slide 8: Sponsor models
Sponsor models Investor/Operators • Internally managed • No conflict of interest with investors • No fee leakage • Long term investment view • Partnering – Government – Communities – Customers • Long term risk management • Customer focus
Slide 9: US market opportunities
US market opportunities
Slide 10: Infrastructure Demand – Freight perspective
Infrastructure Demand – Freight perspective Estimated annual average daily truck traffic 1998 Source: FHWA Freight Analysis Framework
Slide 11: Infrastructure Demand – Freight perspective
Infrastructure Demand – Freight perspective Estimated annual average daily truck traffic 2020 Source: FHWA Freight Analysis Framework
Slide 12: What are the enabling factors?
What are the enabling factors? Top 10 states by total population growth 2000-2030, freight flow value, congestion hours of delay in major urban areas, total Gross State Product and total state budget deficit
Slide 13: Analysing opportunities
Analysing opportunities The major markets for new projects are: – Replacement of aging infrastructure – Expansion of existing alignments by the addition of lanes Greenfields • New alignments for roads are limited in the U.S. Brownfields • Level of activity will increase, with a number of potential p
Slide 14: HOT Lanes
HOT Lanes • Congestion relief in urban areas is the most pressing economic and political issue • Politically attractive solution for Government • Segment of community will pay for travel time savings • Potential market niche for Transurban
Slide 15: Bidding strategy
Bidding strategy
Slide 16: Competitive verses negotiated
Competitive verses negotiated Two procurement processes exist in the US: • Qualitative (best value) / Negotiated: – Has been used for HOT Lane and greenfield procurements by many DOTs (also Pocahontas) • Competitive bid: – So far only used for brownfields – Can’t be used for projects without environ
Slide 17: Transurban USA - market model
Transurban USA - market model Very selective focus based upon the following principles: • Assess competitive tender opportunities but favor processes that result in negotiated contracts • Focus on projects where competencies and reputation provide competitive advantage • Focus on clients that value
Slide 18: Current status
Current status Transurban is a first mover/market leader in the US toll road sector: • First US asset has reached financial close (Pocahontas) • Particular focus and market leadership with HOT lane technology • Recognition of core skill sets • Strong relationships with key market participants • Reso
Slide 19: Funding US growth
Funding US growth
Slide 20: Option being considered
Option being considered • Formation of an unlisted international investment vehicle • Transurban a foundation investor • Additional capital sourced externally • Transurban to operate and manage vehicle for co-investors
Slide 21: Conclusion
Conclusion
Slide 22: Transurban
Transurban • Strong balance sheet • Premier assets, growing cashflows, increasing distributions • Growing market opportunities • Discipline
Slide 23: roan
roan transul
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