Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — QR National — Deutsche Bank Transport Conference 2010
19 slides from Aurizon's conference presentation, Nov 30, 2010
Slide 1: ASX announcement cover letter for Deutsche Bank Transport Conference
Dominic D Smith SVP & Company Secretary QR National Limited ABN 14 146 335 622 Level 14, 305 Edward Street Brisbane QLD 4000, Australia GPO Box 456 Brisbane QLD 4001, Australia T +61 7 3235 9197 F +61 7 3235 2188 companysecretary@qrnational.com.au 30 November 2010 Company Announcements Office Austra
Slide 2: QR National: A newly listed company
Deutsche Bank Conference Presentation QR National: A newly listed company Our focus and our opportunities Lance Hockridge Managing Director & CEO November 2010 1
Slide 3: Important Notice
IMPORTANT NOTICE 2 This presentation is not an offer or invitation to apply for shares in QR National. Full details of the offer of shares in QR National Limited (ACN 146 335 622) by the State of Queensland are set out in the Share Offer Document. The Share Offer Document should be read carefully be
Slide 4: Australia's largest rail freight company with 145 years of experience
3 Australia’s largest rail freight company with 145 years of experience
Slide 5: QR National is Australia's largest rail freight operator
QR National is Australia’s largest rail freight operator 4 Business Profile FY2010A Pro forma Revenue ($bn) 2.9 Pro forma EBITDA ($m) 628 Pro forma tangible 7.9(1) Fixed Assets ($bn) Pro forma Net assets ($bn) 6.8 Tonnes hauled 264mt Track managed 2,300km Employees 9,390
Slide 6: Exposure to strong demand growth in global coal markets
With exposure to strong demand growth in global coal markets 5 A track record of coal haulage growth Global coal import demand – 2005 to 2015 Note: Above data is calendar year data Source: Australian Commodities, ABARE, March 2010. The above data is calendar year data Source: Australian Commodities,
Slide 7: QR National manages unique infrastructure in Australia's largest coal producing region
QR National manages unique infrastructure in Australia’s largest coal producing region 6 Network Regulation Regulated asset base (“RAB”) of $3.6 billion as at 30 June 2010 with stable and low risk returns UT3 runs until 30 June 2013 Network earns a regulated WACC of 9.96% GAPEX50 project at
Slide 8: Positioned for increasing global demand for Australian iron ore
The Company is positioned to take advantage of increasing global demand for Australian iron ore 7 Global iron ore imports Growth opportunities Iron Ore – 2005 to 2015 Iron ore demand is a key driver of expected future growth Heads of agreement with two key customers in the Mid West contestable i
Slide 9: As an ASX listed company, our focus will be on performance and shareholder value
8 As an ASX listed company, our focus will be on performance and delivering shareholder value
Slide 10: Life as an ASX listed company will bring new opportunities
Life as an ASX listed company will bring new opportunities 9 Removal of Government influence will help to drive improved commercial outcomes Greater freedom to advance our transformation program Greater scope to pursue investment opportunities outside Queensland What will change More options
Slide 11: A new focus on delivering shareholder value
…and a new focus on delivering shareholder value 10 A primary focus on commercial returns and not be driven by market share A commercial focus on relationships with customers and improvement in operational performance Close the performance gaps with our global peers and execute our Changes tra
Slide 12: Vision and growth strategy underpinned by commercialisation and cultural transformation
11 QR National has a vision and growth strategy which is underpinned by commercialisation and cultural transformation
Slide 13: Create value through internal reform and external growth opportunities
We will create value through both internal reform and pursuing external growth opportunities 12 Market Growth Internal Reform New Volume / Value through: Improvements through Efficiency Programs & Integrated Operating Model in: Retaining our leadership position and leveraging the continued growth
Slide 14: QR National has a robust strategy for growth
QR National has a robust strategy for growth 13 Pursue growth opportunities in contestable iron ore Opportunities to diversify growth markets 5 Options beyond coal to further grow our business Build a sustainable position in Intermodal Strategically market services and maintenance capabilities
Slide 15: Benchmarking has highlighted many commercialisation benefits
Benchmarking has highlighted many commercialisation 14 benefits Operating metric Performance category QR National Group(2) Class 1 average(1) Revenue / NTK (A$/000 NTK) Revenue yield 45 32 Labour Costs / Revenue Cost efficiency 34% 26% NTK/employee (MNTK) Labour productivity 7 12 Opex(3) / NTK Cost
Slide 16: In Coal there is a focus on continuing operational improvement
Tonnes per consist (payload) 6,500 7,000 7,500 9,500 10,000 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Note: Blackwater payload excludes Minerva Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Goonyella Jul-09 Aug-09 Sep-09 and enhanced financial performance Oct-09 Blackwater Nov-09 Dec-09 Jan-10 Feb-10 Ma
Slide 17: Record coal volume growth in all corridors during FY10A
Record coal volume growth in all corridors during FY10A 16 Record tonnes in Goonyella (2.2mt a week) Record tonnes in Blackwater (1.3mt a week) Record tonnes in Moura (0.35mt a week) Record tonnes in Newlands (0.41mt a week) Record tonnes in West Moreton (0.17mt a week) Record tonnes in
Slide 18: An experienced Board and Management Team to lead the transformation
17 An experienced Board and Management Team to lead the transformation
Slide 19: Summary and Questions
18 Summary and Questions
QR National — Deutsche Bank Transport Conference 2010 on 6ix