Transurban Group Ltd. · ASX:TCL
Transurban — H1 FY2008 Earnings Presentation
38 slides from Transurban's earnings presentation, Feb 20, 2008
Slide 1: Strength & Stability – Interim results
For personal use only Strength & Stability Interim results 20 Februaryy 2008 17.02.06 Slide Slide11
Slide 2: Disclaimer
Disclaimer For personal use only The Transurban Group is a triple stapled security listed on the Australian Securities Exchange comprising Transurban Holdings Limited (ACN 098 143 429), 429) Transurban T b Holding H ldi Trust T t (ARSN 098 807 419) andd TTransurban b International I t ti l Li Limite
Slide 3: Group cash flow
G Group cash h flow fl For personal use only 1. Indicative analysis only – subject to change over time Slide 3
Slide 4: Transurban Group
Transurban Group For personal use only Group p market capp ~A$7 $ billion(1) FY08 forecast yield ~8.8%(1) Conservative C ti gearing i policy li BBB+ corporate rating 1. Based on $6.50 security price Slide 4
Slide 5: Highlights
Highlights For personal use only Capital Beltway financial close Monash – CityLink – West Gate upgrade commenced Westlink W tli k M7 reserves released l d Acquired additional 3.8% of M1 (Eastern Distributor) Pocahontas 895 sold to DRIVe® CP2 committed for 25% of DRIVe® (US$715m) $1 bil
Slide 6: Strong financial performance
Strong financial performance For personal use only EBITDA 53% Toll and fee revenue 45% Interim distribution 100% cash covered – 73% operating cash flow FY08 distribution forecast 57 cents – 28 cents declared first half FY09 distribution g guidance 58 cents Slide 6
Slide 7: Agenda
Agenda For personal use only Financials Debt and funding commitments Next N generation i tolling lli system Australia North America Conclusion Slide 7
Slide 8: Financials
For personal use only Financials Slide 8
Slide 9: Material changes to financial statements
Material changes to financial statements For personal use only Sydney Roads Group (SRG) acquisition Transurban DRIVe® selldown Sale of Pocahontas 895 Capital Beltway Close Slide 9
Slide 10: Group EBITDA (Proportional)
Group EBITDA (Proportional) For personal use only 31 Dec 07 31 Dec 06 (3) % change $M $M EBITDA (1) 349 4 349.4 228 8 228.8 53% Cash Contribution (2) 221.3 97.5 127% 1. EBITDA includes the contribution of individual assets in the proportion of Transurban's equity ownership at 31 December 2007. It is
Slide 11: Group result (Proportional)
Group result(1) (Proportional) For personal use only 31 Dec 2007 31 Dec 2006 $ million $ million Revenue 488.3 313.5 Less Operational costs 117.9 67.4 Concession fees 2.5 0.7 p Corporate costs 21.0 17.3 Finance Costs 183.5 144.3 Depreciation 229.3 157.7 Net Loss from f Operations O ( (65.9) ) ( (73.
Slide 12: Debt and funding commitments
For personal use only Debt and funding commitments Slide 12
Slide 13: Key funding activities
Key funding activities For personal use only Refinanced $600m of bank and SRG debt in August 2007 Refinanced $405m of working capital facilities in February 2008 Capital Beltway funding arrangements underwritten Next refinancing June 2009 No risk from monoline insurers Slide 13
Slide 14: Key metrics
K metrics Key ti For personal use only Senior debt rating (S&P/Moody’s/Fitch) A -/A3/A- Corporate rating (S&P) BBB+ Weighted average maturity 7.59 yrs Hedging (total Group debt) 84% Weighted Average Cost of Debt 6.64% Gearing (debt to enterprise value) 41% Interest Cover Ratio (senior debt) 2.44 Loa
Slide 15: Total Group debt at December 2007
T t l Group Total G debt d bt att 31 December D b 2007 For personal use only 31 Dec D 2007 200 30 June J 200 2007 Total 5,219 5,103 Corporate 3,167 2,661 Non Recourse(1) - consolidated 864 1,598 Non Recourse(1) - non consolidated 1,188 8 844 1 1. Proportional liability based on equity investment in
Slide 16: Group debt maturity profile
Group debt maturity profile For personal use only 1. Full details available in debt appendix 2. Excludes Capital Beltway underwritten funding Slide 16
Slide 17: GLIDe – Next generation tolling system
For personal use only GLIDe – Next generation tolling system Slide 17
Slide 18: Global Tolling Platform
Global Tolling Platform For personal use only Designed to service a global business Benefits include: – reduced costs – improved revenue capture $180 million forecast and potential savings over 10 years on existing assets Project cost of $68 million over 3 years Early 2009 deployment Slide
Slide 19: Australia
For personal use only Australia Slide 19
Slide 20: Melbourne
Melbourne For personal use only Traffic growth exceeding f forecast t Peak congestion on Southern Link limitingg capture, resulting in pent up demand in the corridor Forecast uplift of 7% from upgrade now looks conservative Slide 20
Slide 21: Sydney
Sydney For personal use only Westlink M7 Strong ramp up continues Early release of reserves Credit rating upgrade from BBB- to BBB SRG synergies and savings $9.1m p.a. on target Asset enhancements M2 widening id i proposall submitted (subject to Government approval) Transurban appointed
Slide 22: North America
For personal use only North America Slide 22
Slide 23: Progress
Progress For personal use only Transurban DRIVe® mobilised Sold Pocahontas 895 into DRIVe® Port Mann Highway 1 proposal Financially closed Capital Beltway Advancement on key I-95/395 environmental clearances Slide 23
Slide 24: Capital Beltway
Capital Beltway For personal use only Expands network in Virginia Delivers first mover advantage in HOT Lane projects Strong project economics Slide 24
Slide 25: Traffic and revenue
Traffic and revenue For personal use only Traditional Fixed Toll approach pp is revenue constrained Dynamic HOT lane approach delivers optimised revenue FIXED TOLLING DYNAMIC TOLLING POTENTIAL LANE CAPACITY REVENUE THEORETICAL MAX REVENUE UPSIDE REVENUE E VOLUME PEAK TIME PEAK TIME PEAK TIME Sli
Slide 26: Summary
Summary For personal use only The project Transurban returns Total funding US$1.52 billion Project equity IRR of 13% Equity commitment US$350 million Additional upside: – US$88 million at financial close – Development cost reimbursment & success fees US$26 million – US$262 million over constru
Slide 27: Progress update
Progress update For personal use only Concessionaire management g team in pplace Construction to commence mid 2008 PABs to be issued during first half of 2008 – fully underwritten Slide 27
Slide 28: Conclusion
For personal use only Conclusion Slide 28
Slide 29: Conclusion
Conclusion For personal use only Strongg balance sheet Prudent debt management Quality assets North American business established Slide 29
Slide 30: For personal use only
For personal use only 17.02.06 Slide Slide30 30
Slide 31: Proportional result by asset – December 2007
Proportional result by asset – 31 December 2007 For personal use only CityLink Hills M2 M1 M4 M5 $ million $ million $ million $ million $ million Ownership 100% 100% 75.15% 50.61% 50% Revenue Tolling & fees 179.2 63.1 27.2 22.6 41.7 Other 5.7 7.4 1.7 1.4 0.7 Total 184.9 70.5 28.9 24.0 42.4 Operatin
Slide 32: Proportional result by asset – December 2007
Proportional result by asset – 31 December 2007 For personal use only M7 Pocahontas Bus Dev TCL Group $ million $ million $ million $ million Ownership 47.5% 75% Revenue Tolling & fees 35.6 6.6 7.0 383.0 Other 12.1 1.5 74.8 105.3 Total 47.7 8.1 81.8 488.3 Operating costs Operational p (1) 6.5 1.9 43
Slide 33: Proportional result by asset – December 2006
Proportional result by asset – 31 December 2006 For personal use only CityLink Hills M2 M7 Poca Bus Dev Total $ million $ million $ million $ million $ million $ million Revenue Tolling & fees 164 5 164.5 54 9 54.9 29 7 29.7 96 9.6 60 6.0 264 7 264.7 Other 4.7 6.9 7.0 7.3 22.8 48.7 Total 169.2 61.8
Slide 34: EBITDA Reconciliation – December 2007
EBITDA Reconciliation – 31 December 2007 For personal use only Eliminate Include Statutory 100% Proprtional Ownership (1) Report M1 M4 Total M1 M4 M5 M7 Poca DRIVe Total $ million $ million $ million $ million $ million $ million $ million $ million $ million $ million $ million Revenue 564.4 (108.4
Slide 35: Group debt maturity profile
Group debt maturity profile For personal use only * No refinancing before June 2009 Slide 35
Slide 36: Group debt facilities
Group debt facilities For personal use only Type of Facility Available Drawn Transurban Corporate p Debt Working Capital Lines $600.0 $387.0 Term Bank Debt $600.0 $525.0 US Private Placements $1,204.5 $1,204.5 Domestic unwrapped bonds $450.0 $450.0 Domestic wrapped bonds $600.0 $600.0 Adj. for defer
Slide 37: Hedging – Group debt
Hedging – Group debt For personal use only Slide 37
Slide 38: Traffic and revenue growth
T ffi andd revenue growth Traffic th For personal use only Melbourne Revenue Average daily transactions CityLink 8.2% 2.7% CityLink 8.7% 3.2% [% change normalised]* * Removes impact of works on the Monash-CityLink-West Gate upgrade Sydney Revenue Average daily trips Hill M2 Hills 10 8% 10.8% 5 3% 5.