Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — Merger or Acquisition (November 2021)
14 slides from Aurizon's merger presentation, Nov 3, 2021
Slide 1: Morgans Briefing Presentation (ASX cover letter)
Aurizon Holdings Limited ABN 14 146 335 622 For personal use only ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT 3 November 2021 Morgans Briefing Presentation Attached for release to the market is a copy of the slides for the presentation on the ‘Acquis
Slide 2: Morgans Briefing: Acquisition of One Rail and divestment of East Coast Rail
For personal use only Morgans Briefing: Acquisition of One Rail and divestment of East Coast Rail 3 November 2021
Slide 3: Disclaimer
Disclaimer For personal use only 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 e
Slide 4: Today's presenters
Today’s presenters For personal use only Andrew Harding George Lippiatt Managing Director & Chief Executive Chief Financial Officer & Group Officer Executive Strategy 3
Slide 5: Highlights
Highlights Acquisition of One Rail with integration of One Rail Bulk and divestment of East Coast Rail For personal use only 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 acqu
Slide 6: One Rail operations
One Rail operations One Rail Bulk is an integrated rail business in central Australia. East Coast Rail provides coal For personal use only 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 V
Slide 7: Greater exposure to new economy commodities
Greater exposure to new economy commodities There are over 250 mining projects1 under development across South Australia and For personal use only Northern Territory GLOBAL TRENDS… …ARE DRIVING DEMAND FOR NEW ECONOMY COMMODITIES Commodity South Australia and Northern Territory Exposure Population gr
Slide 8: One Rail Infrastructure
One Rail Infrastructure Acquisition almost doubles Aurizon's existing rail infrastructure For personal use only 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
Slide 9: Highlights of One Rail Bulk
Highlights of One Rail Bulk Acquisition is aligned with Aurizon’s Bulk growth strategy and provides an additional growth For personal use only platform INTEGRATED ABOVE AND BELOW RAIL BUSINESS ONE RAIL BULK: UNDERLYING EBITDA (A$m) ✓ Leading provider of intermodal and bulk freight in South Australia
Slide 10: Transaction summary
Transaction summary Completion targeted for early CY2022 followed by East Coast Rail divestment process For personal use only › Cash consideration of A$2.35 billion (plus ~$80m acquisition and divestment related fees) Acquisition of 100% of One Rail › Highly strategic and transformative acquisition
Slide 11: Highlights of East Coast Rail
Highlights of East Coast Rail A highly cash generative business For personal use only EXCLUSIVE HUNTER VALLEY HAULAGE RIGHTS REVENUE (A$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 cos
Slide 12: Aurizon's value creation record
Aurizon’s value creation record Cashflows remain stable and the focus on transformation continues For personal use only HIGHLIGHTS ✓ Negotiated and executed UT5 ✓ De-risked the Coal contract book ✓ Executed Bulk turnaround and delivered Phase 1 growth ✓ Strong shareholder distributions – over $4bn i
Slide 13: Q&A
For personal use only Q&A
Slide 14: Contact and further information
Contact and further information Chris Vagg James Coe Head of Investor Relations & Group Treasurer Manager Market Intelligence & Investor Relations For personal use only +61 7 3019 9030 +61 7 3019 7526 Chris.Vagg@aurizon.com.au James.Coe@aurizon.com.au ASX: AZJ 13
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