Transurban Group Ltd. · ASX:TCL
Transurban — Investor Day (April 2019)
92 slides from Transurban's investor day presentation, Apr 29, 2019
Slide 1: Transurban Investor Day
INV -— TRANSURBAN-—— STOR DAY
Slide 2: Disclaimer
DISCLAIMER 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 Transurban Infrastructur
Slide 3: Contents
CONTENTS 06 STRATEGY AND FUTURE OUTLOOK SCOTT CHARLTON, CEO 21 AUTOMATED AND ZERO EMISSIONS VEHICLES INFRASTRUCTURE ADVICE JONATHAN SPEAR, INFRASTRUCTURE VICTORIA 36 CAPITAL STRATEGY ADAM WATSON, CFO 43 PROJECT DELIVERY TONY ADAMS, GROUP EXECUTIVE PROJECT DELIVERY 49 WESTCONNEX ANDREW HEAD, CEO WEST
Slide 4: Executive Committee
EXECUTIVE COMMITTEE Scott Charlton Adam Watson Sue Johnson Jennifer Aument CEO CFO Group Executive, President, North Queensland America Kristine Cooney Tony Adams Andrew Head Michele Huey Group Executive, Group Executive, CEO, WestConnex Group Executive, Customer Project Delivery New South Wales Hen
Slide 5: Work Zone Safety Display
WORK ZONE SAFETY DISPLAY • Transurban and Telstra developed a connected technology platform proof-of-concept to improve safety for workers • Detects approaching vehicles and alerts workers on site • Sensor enabled devices detect errant vehicles and warn workers, as well as track if workers move outs
Slide 6: Strategy and Future Outlook
STRATEGY AND FUTURE OUTLOOK SCOTT CHARLTON – CEO
Slide 7: Sustained Period of Value Creation
SUSTAINED PERIOD OF VALUE CREATION Explore and assess new options Strengthen core capabilities Build new capabilities Refine vision and direction Prepare for future 2012 2013 2014 2015 2016 2017 2018 2019 Changing market conditions Expansion in opportunity set Preparations for future Market • Post G
Slide 8: Near-Term Priorities
NEAR-TERM PRIORITIES DELIVER MAXIMISE ENHANCE CUSTOMER COMMITTED PERFORMANCE OF AND COMMUNITY PROJECTS OPERATIONS OFFERINGS TRANSURBAN INVESTOR DAY | 29 APRIL 2019 8
Slide 9: Deliver Committed Projects
DELIVER COMMITTED PROJECTS1 Timelines illustrative and not to scale. Logan Enhancement Project ($320M) Mid-2019 NorthConnex ($1.3B) FY20 WestConnex – New M4 tunnels, New M5, M4-M5 Link ($900M2) Montreal New M4 - Mid-2019 New M5 - FY20 M4-M5 Link - FY23 Brisbane West Gate Tunnel Project ($4B3) FY23 G
Slide 10: Maximise Performance of Operations
MAXIMISE PERFORMANCE OF OPERATIONS Continued optimisation Asset enhancement opportunities • New Express Lane access points in GWA • Optimise use of dynamic speed management on CityLink • Implement low-cost congestion solutions in NSW • Progress ramp-metering trials in QLD • Continued focus on incide
Slide 11: Enhance Customer and Community Offerings
ENHANCE CUSTOMER AND COMMUNITY OFFERINGS Ongoing stakeholder engagement Linkt Assist • WestConnex • West Gate Tunnel Project • Community partnerships and best practice engagement principles Improved customer experience Parking trials − QLD • Linkt Assist – dedicated hardship team Background • Trip C
Slide 12: Robust Outlook with Continued Need for Private Sector Investment
ROBUST OUTLOOK WITH CONTINUED NEED FOR PRIVATE SECTOR INVESTMENT Growth in population and urbanisation1 2017 global debt levels3 Public investment4 (% of GDP) (% of GDP) 20 100 68% 80 15 55% Russia 60 10% 10 Turkey 40 Switzerland 9% 5 9.8B Indonesia 7.6B 20 South Korea 8% 0 0 2018 2050F Australia 42
Slide 13: Opportunity Pipeline Promising
OPPORTUNITY PIPELINE PROMISING Existing asset base Additional development opportunities • Government-owned 49% WestConnex stake (Sydney) • Western Harbour Tunnel and Beaches Link (Sydney) • M7 widening (Sydney) • Broader GWA opportunities • Gateway Motorway widening (Brisbane) • Engagement in Montre
Slide 14: Disruptive Market Dynamics Continue to Take Shape
DISRUPTIVE MARKET DYNAMICS CONTINUE TO TAKE SHAPE Cumulative miles tested and disengagements1,2 Global passenger electric vehicle sales3 (Disengagements per 1000 miles – log scale (left), Miles tested – millions (right)) (Thousands units) 800 1,000.0 4.0 GM Cruise disengagements 3.5 100.0 600 3.0 10
Slide 15: The Future of Transport Is Integrated
THE FUTURE OF TRANSPORT IS INTEGRATED Conceptual integrated transport network PERSONAL MOBILITY FREIGHT TRANSIT 5 4 8 3 6 7 1 2 1 CONNECTED AND AUTOMATED VEHICLES (CAVs) 5 DRONES AND AUTONOMOUS GROUND VEHICLES Self-driving vehicles will shuttle people in and out of the city and Drones and autonomous
Slide 16: Reinforcing Effects of Multiple Trends Will Accelerate the Transition
REINFORCING EFFECTS OF MULTIPLE TRENDS WILL ACCELERATE THE TRANSITION A potential path towards an integrated transport future INDICATIVE 100% Business as usual Early adoption Mainstream uptake (L4/5 vehicles – % of vehicle CAV penetration of traffic Negligible change as capabilities Adoption in favo
Slide 17: Future Changes Positive for Transurban's Customers and Communities
FUTURE CHANGES POSITIVE FOR TRANSURBAN’S CUSTOMERS AND COMMUNITIES Improved safety New mobility options Favourable economics Improved infrastructure use Increasing interconnection and CAVs have the potential to Use of ZEVs and rise in smart The introduction of platooning automation removes human sti
Slide 18: Exploration of New Value Creation Opportunities
EXPLORATION OF NEW VALUE CREATION OPPORTUNITIES Investigate strategic Develop internal capability Build response to Contribute to policy growth options • Machine learning for traffic disruption development • RUC trials (USA) forecasting and dynamic • CAV trials • Road Usage Study − Awarded grant to
Slide 19: Refreshed Strategy for an Integrated Future
REFRESHED STRATEGY FOR AN INTEGRATED FUTURE Our purpose: To strengthen communities through transport What we focus on to realise our strategy: Our strategy: Provide sustainable transport solutions that offer choice, reliability, Stakeholder Optimal Delivery and Disciplined engagement networks operat
Slide 20: Summary
SUMMARY Deliver near-term priorities Positioning for future transport opportunities Future evolution will make transport safer, Deliver committed projects more convenient and efficient Future changes positive for Transurban’s Maximise performance of operations customers and communities Monitor futur
Slide 21: Infrastructure Victoria
INAS ¢ Sui SIS ICTORIA
Slide 22: Automated and Zero Emissions Vehicles Infrastructure Advice
AUTOMATED AND ZERO EMISSIONS VEHICLES INFRASTRUCTURE ADVICE Dr Jonathan Spear | Executive Director
Slide 23: Who We Are and What We Do
WHO WE ARE AND WHAT WE DO 30-year infrastructure strategy Research Independent advice to government (automated and zero emissions vehicles) OUR VALUES Independence Influence Partnership Openness Innovation People
Slide 24: Context of the Study
context of the study The Victorian Government asked Infrastructure Victoria to provide advice on what infrastructure might be required: to enable operation of highly automated vehicles (AVs) in response to the ownership and market models that may emerge from the availability of highly automated vehi
Slide 25: Timeline
OCTOBER 2017 AUGUST 2018 OCTOBER 2018 REQUEST FOR ADVICE CONSULTATION SCENARIOS, REPORT EVIDENCE BASE CONSULTATION FINAL REPORT timeline ADVICE ON AUTO ZERO Et INFRASTRUCTURE INFR )STRUCTURE INFRASTRUCTURE ICTORIA
Slide 26: Scenarios
scenarios Scenario Year Driving mode Power source, ,Ownership/ 1. Electric Avenue 2046 If wa 9 2. Private Drive 2046 L 4 9 3. Fleet Street 2046 L o | 4. Hydrogen Highway 2046 L Al P 5. Slow Lane 2046 L, 7 BB H if 6. High Speed 2031 L oD | 7. Dead End 2046 Neg BS ? PRIVATE OWNERSHIP
Slide 27: Evidence Base
evidence base POPULATION AND LAND USE INTERNATIONAL MARKETS ENERGY URBAN DESIGN ENVIRONMENT AND HEALTH What influence will the When and where will zero How will automated and How much could zero. How might our decisions about decisions of international ‘emieeione vehicles charge zero emissions vehic
Slide 28: Key Themes
key themes Convergence of the transport and energy sectors. Convergence of the transport and ICT sectors. Blurring of the distinction between ‘public’ and ‘private’ transport.
Slide 29: 17 Recommendations
Advice: 17 RECOMMENDATIONS Infrastructure Victoria has called on the Victorian Government to clear the way for the roll out of driverless and zero emissions vehicles to reap unprecedented benefits for the economy, community and environment. Recommendations cover: Transport ICT infrastructure and dat
Slide 30: 'Do Now' Transport Recommendations
‘do now’ transport recommendations Update Victoria's roads, including an audit of suitability for automated vehicles and evaluation of the impact of changing road network features (for example sign consistency, machine readability and placement; line quality, consistency and reflectivity). Rethink r
Slide 31: 'Do Now' ICT Recommendations
‘do now’ ICT recommendations Integrate on-demand and mobility as a service (including booking and payment systems) into the transport mix in preparation for automated vehicles. Identify priority corridors for high quality cellular data coverage, based on need and demand, and monitor the market’s del
Slide 32: 'Do Now' Energy Recommendations
‘do now’ energy recommendations Ensure regulatory frameworks governing energy network investment are flexible enough to facilitate investment in the transmission and distribution networks at the right times and places to support the uptake of zero emission vehicles. Allow for incentives or other mec
Slide 33: More Information
more information Advice on automated and zero emissions vehicles infrastructure contains all 17 recommendations, decision pathways, triggers and the evidence base A short animated video explaining our scenarios and advice is available on our website. A suite of before/after images that reimagine Vic
Slide 34: Keep in Touch
Keep in touch website infrastructurevictoria.com.au/AVadvice email enquiries@infrastructurevictoria.com.au phone 03 9936 1737 twitter @infravic facebook facebook.com/infrastructurevictoria
Slide 35: Infrastructure Victoria
INAS ¢ Sui SIS ICTORIA
Slide 36: Capital Strategy
CAPITAL STRATEGY ADAM WATSON – CFO
Slide 37: Capital Strategy – Balancing Distribution Growth with Long-Term Value Creation
CAPITAL STRATEGY – BALANCING DISTRIBUTION GROWTH WITH LONG-TERM VALUE CREATION MAINTAIN DISTRIBUTION STRONG INVESTMENT- MAXIMISE GROWTH GRADE CREDIT METRICS EQUITY VALUE TRANSURBAN INVESTOR DAY | 29 APRIL 2019 37
Slide 38: Funding Strategy
FUNDING STRATEGY Maintain strong investment-grade credit metrics Maintain diversity of funding sources, manage risk • Maximise access to a broad range of debt capital markets • Maximise funding optionality, thereby reducing reliance • Ratings agencies consulted throughout transactions to risk ensure
Slide 39: Capital Releases
CAPITAL RELEASES Theoretical application • Transurban’s business model provides scope for balance sheet optimisation as assets mature, given Revenue upfront equity funding of major developments ($m) Revenue uplift as development projects progressively reach completion and ramp-up • As traffic ramps
Slide 40: WestConnex
WESTCONNEX Total acquisition price: $9.3 billion Cash flow progressively building1 Rozelle (51% of WCX) Interchange (Stage 3B) Transurban equity contribution: $4.1 billion • Acquisition funded with equity upfront given M4-M5 Link (Stage 3A) assets are in construction phase • As construction complete
Slide 41: Forecast Tax Profile
FORECAST TAX PROFILE1 FY19 – FY23 FY24 – FY28 FY29+ Tax group Ownership • Stapled structure results Interlink Roads Group 65.38% Currently paying tax in Transurban’s (M5 West) Subject to corporate tax until end of concession Australian corporate Currently paying tax2 entities being subject to WestCo
Slide 42: Operational Efficiency Maintained During Period of Portfolio Growth
OPERATIONAL EFFICIENCY MAINTAINED DURING PERIOD OF PORTFOLIO GROWTH Maximise performance of operations • Scalable operating platform MAXIMISE ̵ Consolidation of maintenance providers PERFORMANCE OF ̵ Tolling and back-office systems OPERATIONS ̵ Customer operations DELIVER COMMITTED PROJECTS Deliver
Slide 43: Project Delivery
PROJECT DELIVERY TONY ADAMS – GROUP EXECUTIVE, PROJECT DELIVERY
Slide 44: Delivery Strategy Focused on Prudent Risk Management and Minimising Disruption
DELIVERY STRATEGY FOCUSED ON PRUDENT RISK MANAGEMENT AND MINIMISING DISRUPTION Stakeholder engagement • Build community relationships with engagement from inception through to operation • Ensure interest groups are engaged during all project phases Active contract management • Experienced Transurban
Slide 45: Transurban Approach to Deliver Development Pipeline
TRANSURBAN APPROACH TO DELIVER DEVELOPMENT PIPELINE Experience in safely delivering complex projects Project Delivery workforce1 • Demonstrated capability in delivering development projects as infrastructure owner/operators 2013 69 • Highly experienced project management teams with backgrounds spann
Slide 46: Strong Track Record
STRONG TRACK RECORD Recent project history and current pipeline1 significant upgrades or new 12 assets completed alongside FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19+ major contractors and state government partners since 495 Express Lanes Transurban’s inception Hills M2 Upgrade 95 Express Lanes M5 Wide
Slide 47: External Environment
EXTERNAL ENVIRONMENT High volume of media reach contained to a small number of issues • Transport infrastructure is politically significant due to its broad economic and social impact • This significance creates considerable public attention, appearances in traditional amplified by traditional and s
Slide 48: Stakeholder Management Approach
STAKEHOLDER MANAGEMENT APPROACH Experience in stakeholder engagement West Gate Tunnel Project • Appropriate resources in place to engage stakeholders and engagements with stakeholders enhance outcomes where possible 7,308 in the last 12 months; greater than 50% proactive • Focused on agenda of deliv
Slide 49: WestConnex
WESTCONNEX ANDREW HEAD – CEO, WESTCONNEX
Slide 50: WestConnex Overview
WESTCONNEX OVERVIEW1 New M4 (Stage 1) • Widened New M4 (M4 West), existing M4 West motorway widened to four lanes in each direction from Parramatta to Homebush (7.5km) • New M4 tunnels (M4 East), new 6.5km motorway section of three lanes in each direction. This includes 5.5km of new twin tunnels and
Slide 51: Well-Positioned to Facilitate Sydney's Growth
WELL-POSITIONED TO FACILITATE SYDNEY’S GROWTH Vehicle trips expected to use WestConnex1 Population growth2 Sydney population expected to 40% live within 5km of WestConnex Freight task3 Freight task in Greater Sydney area projected to grow from 48% 194 million tonnes in 2016, growth to 288 million to
Slide 52: Delivery and Integration Efforts in Progress
DELIVERY AND INTEGRATION EFFORTS IN PROGRESS Construction progress Integration efforts • New M4 tunnels commissioning underway First 6 PHASE 1 − CORPORATE months • New M5 progressing mechanical and electrical fit-out • Business review completed, with five year business plan • M4-M5 Link tunneling wo
Slide 53: Initiatives Underway
INITIATIVES UNDERWAY Establish Program Control Group Consolidate and insource Investigate future tolling technologies to drive optimum delivery processes operations to realise synergies to reduce lifecycle costs Routine Asset strategy maintenance & condition Intelligent Governance Self managed trans
Slide 54: Priorities Going Forward
PRIORITIES GOING FORWARD Deliver projects Build strong Ensure operational Enhance customer Drive sustainability Maximise successfully partnerships excellence experience outcomes value for investors TRANSURBAN INVESTOR DAY | 29 APRIL 2019 54
Slide 55: North America Development
NORTH AMERICA DEVELOPMENT JENNIFER AUMENT – PRESIDENT NORTH AMERICA
Slide 56: Focused Execution and Sustainable Growth
FOCUSED EXECUTION AND SUSTAINABLE GROWTH North America revenue2,3 North America is considered an emerging market for global infrastructure investors Transurban is focused on growing incrementally: • Sustainable business model • Strong and growing customer base • Value for clients, communities and se
Slide 57: Driving Long-Term Growth Through Discipline
DRIVING LONG-TERM GROWTH THROUGH DISCIPLINE Disciplined evaluation of Engagement with clients, Proactive approach Local expertise Customer focus development opportunities community and industry to opportunities and experience TRANSURBAN INVESTOR DAY | 29 APRIL 2019 57
Slide 58: Expanding GWA Network
EXPANDING GWA NETWORK 495 EXPRESS LANES 2012 | 22 km 95 EXPRESS LANES 2014 | 50 km 395 EXPRESS LANES 2019 | 13 km FREDERICKSBURG EXTENSION 2022 | 16km OPITZ BOULEVARD FUTURE NEW CONNECTION 495 NORTHERN EXTENSION FUTURE | 3.2 km TRANSURBAN INVESTOR DAY | 29 APRIL 2019 58
Slide 59: Demonstrating Operational Expertise
DEMONSTRATING OPERATIONAL EXPERTISE Working with Environmental Dynamic operational Customer-focused Customer product government and outcomes informing responses solutions development community operations 495 oil tanker shutdown First-time forgiveness Occoquan capacity A25 – sustainable Mobile tollin
Slide 60: Engagement Enables Opportunity
ENGAGEMENT ENABLES OPPORTUNITY Amazon HQ2 495 Northern Extension Amazon to develop a second headquarter in 395 Addressing one of the region’s worst multistate corridor bottlenecks Transurban brought forward payments to VDOT which 3.2km extension to Maryland border with new enabled infrastructure imp
Slide 61: North American Outlook
NORTH AMERICAN OUTLOOK • Advance GWA network opportunities • Demonstrate partnership and expand in Quebec • Leverage track record and experience to best position for long-term North American market opportunities A25 – Montreal TRANSURBAN INVESTOR DAY | 29 APRIL 2019 61
Slide 62: Supplementary Information
SUPPLEMENTARY INFORMATION
Slide 63: Tax Insight Session
TAX INSIGHT SESSION SHASHI SIVAYOGANATHAN – PRINCIPAL TAX ADVISOR
Slide 64: Stapled Structures
STAPLED STRUCTURES Purpose of staple • Stapled structures are commonly used in capital intensive businesses like infrastructure and property • Large initial and ongoing capital investment and debt funding, leads to accounting losses during the early years of the project due to amortisation. These ac
Slide 65: Tax Treatment of Staple
TAX TREATMENT OF STAPLE Corporate structure • THL is an Australian resident company that operates as the parent TRANSURBAN GROUP SECURITYHOLDERS company of the Transurban Group for financial reporting purposes. THL is subject to Australian income tax at 30 percent on its taxable income Payment of Se
Slide 66: Tax Treatment of Staple
TAX TREATMENT OF STAPLE Asset structure TRANSURBAN GROUP SECURITYHOLDERS • Each asset within the Transurban Group THL THT1 TIL has its own individual structure THL Tax Group Non-100% Owned Tax Groups • Some of the assets are structured as CityLink NorthWestern InterLink Transurban Transurban corpora
Slide 67: Tax Profiles – 100% Owned
TAX PROFILES – 100% OWNED THL tax consolidated group THL THT • The THL tax consolidated group comprises Transurban Group’s 100% owned Australian THL Tax Group assets CityLink CityLink Unit Melbourne • THL is the head company of the tax consolidated group comprising its wholly-owned Trust Ltd Austral
Slide 68: Tax Profiles – Non-100% Owned
TAX PROFILES – NON-100% OWNED Non-100% owned tax groups • Australian assets that are not wholly-owned by Transurban Group have their own respective tax groups and a different tax profile to Transurban Group • The head company of each non-100% owned tax group is subject to tax at the 30% corporate ta
Slide 69: Tax Profiles – TIL
TAX PROFILES – TIL North America tax groups TIL • The TIL tax consolidated group comprises Transurban Group’s 100% owned North American assets Certain distributions may be subject • Each asset owned by TIL is subject to tax in its foreign jurisdiction at the local to foreign withholding tax on payme
Slide 70: Tax Profiles – WestConnex
TAX PROFILES – WESTCONNEX WestConnex tax treatment THL THT • As a legacy holding structure of Sydney Motorway Corporation, each asset of WestConnex is held through a staple arrangement Fully franked Distributions subject between an Operating Trust and an Asset Trust distributions not to flow-through
Slide 71: Forecast Tax Profile
FORECAST TAX PROFILE FY19 – FY23 FY24 – FY28 FY29+ Tax group Ownership Interlink Roads Group Currently paying tax 65.38% (M5 West) Subject to corporate tax until end of concession Currently paying tax WestConnex 25.5% Each stage becomes taxable on completion as partial flow-through vehicle Currently
Slide 72: Factors – Tax Forecasting
FACTORS – TAX FORECASTING Tax paid by each tax group is subject to a number of variables • New development projects – new projects generate additional tax deductible costs, including tax depreciation, costs of transferring assets and borrowing costs • Timing differences between accounting and tax tr
Slide 73: Tax Governance and Policy
TAX GOVERNANCE AND POLICY1 Transurban Group’s approach to tax • Transurban Group adopts tax positions that comply with tax laws, allow for efficient business activities and utilise structures that maximise value for investors • Transurban Group continues to foster its longstanding and co-operative r
Slide 74: Traffic Insight Session
TRAFFIC INSIGHT SESSION DARRYN PATERSON – GENERAL MANAGER NETWORK STRATEGY AND TRAFFIC ANALYSIS
Slide 75: Internal Expertise in Traffic Forecasting
INTERNAL EXPERTISE IN TRAFFIC FORECASTING Team experience and strengths Forecasting approach Forecasting data • In-house multi-disciplinary team of 35+ Methodology selection driven by time • Key forms of traffic data collected and specialists, covering: horizon and purpose of assessment: used by Tra
Slide 76: Data Relevance and Level of Aggregation Key to Accuracy
DATA RELEVANCE AND LEVEL OF AGGREGATION KEY TO ACCURACY 15 minute Daily Quarterly Annual 100 100 100 100 90 90 90 90 80 80 80 80 As the level of aggregation increases, the degree of underlying variability 70 70 70 70 reduces, making the information more 60 60 60 60 reliable for the purposes of forec
Slide 77: Network Performance Managed Using Detailed Data
NETWORK PERFORMANCE MANAGED USING DETAILED DATA 2500 15 minute increments 2000 Vehicles Detailed traffic count data 1500 Detailed traffic count data can be obtained from a range of sources, and segmented 1000 in various ways; such as by time period and vehicle class 500 Granular traffic data provide
Slide 78: Time Based Assessments Highlight Trends and Support Planning
TIME BASED ASSESSMENTS HIGHLIGHT TRENDS AND SUPPORT PLANNING Data analytics provides the basis for identifying localised issues and monitoring evolution over time, allowing for targeted interventions to prevent emerging issues Increasing congestion and Pre-CTW Post-CTW To airport delay are key trigg
Slide 79: Comparative Assessments Highlight the Evolution of Assets and Opportunities
COMPARATIVE ASSESSMENTS HIGHLIGHT THE EVOLUTION OF ASSETS AND OPPORTUNITIES Using aggregate annual data to assess, Congestion and reliability assessments and understand relative asset 60% performance provides opportunity to Management opportunity ED Maturing compare across the portfolio assets 50% •
Slide 80: Long Term Forecasting Using Strategic Traffic Models
LONG TERM FORECASTING USING STRATEGIC TRAFFIC MODELS Strategic traffic models • Approach founded on proven methodologies developed over 40+ years • Include roadway and transit networks, population and employment, and economic data to estimate expected demand • Mathematical equations used to represen
Slide 81: Key Factors Influencing Long Term Forecasts
KEY FACTORS INFLUENCING LONG TERM FORECASTS Transurban strategic models are based on a conventional four step model, which is used to capture both demand and supply, reflecting the relationship between traffic demand and the key drivers of population, employment, households, and wealth Land use and
Slide 82: Forecasting Asset Lifecycle
FORECASTING ASSET LIFECYCLE Assets evolve over time as external Slower growth as asset Allowing growth to continue matures and reaches capacity … factors change Early growth driven by demand ~1.5% p.a. Lifecycle is and available capacity influenced by Major upgrades drivers familiarity ~5.0% p.a. pr
Slide 83: Key Considerations in Forecasts
KEY CONSIDERATIONS IN FORECASTS Recommendations Cautions / adjustments Express lanes General • Asset level projections • Major network changes over time need Given the nature of express lanes, toll rates considerations • Annual aggregation level to be considered and reflected are not fixed; hence: •
Slide 84: Footnotes
FOOTNOT Transurban
Slide 85: Strategy and Future Outlook Footnotes
STRATEGY AND FUTURE OUTLOOK Slide 9 1. Project completion dates shown are approximations and are subject to final schedules. The government completion estimate in any given jurisdiction is still the most appropriate estimate for media reporting and commentary. Estimated spend reflects Transurban’s p
Slide 86: Capital Strategy and Project Delivery Footnotes
CAPITAL STRATEGY Slide 38 1. Calculated using proportional drawn debt at 31 December 2018. 2. AUD debt only, calculated using proportional drawn debt exclusive of issued letters of credit. 3. At 31 December 2018. A total of USD967 million and CAD650 million of corporate debt is not swapped to AUD, t
Slide 87: WestConnex and North America Development Footnotes
WESTCONNEX Slide 50 1. Map is for illustrative purposes only and is not indicative of distance, proximity or scale. Slide 51 1. Map is for illustrative purposes only and is not indicative of distance, proximity or scale. 2. In 2031, based on Deloitte Access Economics estimates and Transurban’s own i
Slide 88: Tax Insight Session Footnotes
TAX INSIGHT SESSION Slide 66 1. There are no tax groups under THT. Each sub-trust is treated as a flow-through trust. 2. WestConnex operating entities are operating trusts and are not part of a tax consolidated group. Slide 68 1. InterLink Roads is a stand-alone entity. Slide 71 1. Taxed as a partia
Slide 89: Glossary
GLOSSA as Transurban
Slide 90: Glossary
GLOSSARY TERM DEFINITION TERM DEFINITION 1H/2H First or second half of a financial year Gateway Gateway Motorway 95 95 Express Lanes GBB Go Between Bridge 495 495 Express Lanes GDP Gross Domestic Product A25 A25 toll road GFC Global Financial Crisis Average Daily Traffic. ADT is calculated by dividi
Slide 91: Glossary
GLOSSARY TERM DEFINITION M7 Westlink M7 MRE Military Road E-Ramp NCX NorthConnex NOK Norwegian Krone NSW New South Wales NWRG NorthWestern Roads Group O&M Operations and Maintenance P3 Public Private Partnership PPE Personal Protective Equipment QLD Queensland Roads and Maritime Services is the New
Slide 92: Transurban
—Transurban