Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — Corporate Update (June 2019)
14 slides from Aurizon's corporate update, Jun 17, 2019
Slide 1: UT5 Update
UTS Update 17 June 2019 AURIZON.
Slide 2: Disclaimer
UT5 UPDATE Disclaimer NO RELIANCE ON THIS DOCUMENT NO OFFER OF SECURITIES This document was prepared by Aurizon Holdings Limited (ACN 146 335 622) (referred to Nothing in this presentation should be construed as a recommendation of or an offer to sell or a as “Aurizon” which includes its related bod
Slide 3: Overview of the customer DAAU
UT5 UPDATE Overview of the customer DAAU Through constructive engagement with our customers, Aurizon Network (Aurizon) has submitted a customer DAAU that delivers significant regulatory reform and a range of benefits for both Aurizon and customers 10 year undertaking term (2017-2027) LONG TERM CERTA
Slide 4: Key revisions to the UT5 Final Decision
UT5 UPDATE Key revisions to the UT5 Final Decision UT5FD will apply until the DAAU approval date. From the DAAU approval date the key changes under the agreement are outlined below INDICATIVE WACC TIMELINE1 03/05/19 30/06/17 30/06/18 30/06/19 30/06/20 30/06/21 30/06/23 30/06/27 WACC 5.9% WACC 5.7% W
Slide 5: Update since lodgement of the DAAU
UT5 UPDATE Update since lodgement of the DAAU Timeline of activities that have been undertaken since lodgement of the DAAU DATE DETAILS 3 May 2019 Aurizon lodged Customer DAAU with QCA All customers and above rail operators advised of the Customer DAAU. Detailed briefings 7 May 2019 subsequently hel
Slide 6: Network adjusted MAR bridge - Customer DAAU
UT5 UPDATE Network adjusted MAR bridge - Customer DAAU Indicative Network adjusted MAR (Ex GAPE) for FY2019 to FY2023 based on the revised terms of the Customer DAAU INDICATIVE NETWORK ADJUSTED MAR* FY2018 – FY2023 ($M) ~954 ~953 ~5 ~949 ~4 ~8 ~945 ~19 936 ~50 ~45 ~875 60 60 45 45 18 22 FY18 MAR FY2
Slide 7: QCA role
UT5 UPDATE QCA role The QCA has an ongoing role under the DAAU › Will pre-approve Maintenance strategies and budgets in the event agreement is not reached between Aurizon and customers › Will approve capital expenditure on a post-expenditure review basis for efficiency and prudency where Aurizon and
Slide 8: Other regulatory matters
UT5 UPDATE Other regulatory matters In addition to the customer DAAU, Aurizon has been working on a number of other regulatory matters › Lodged with QCA on 7 May 2019 › The DAAU covers: REFERENCE TARIFF FY2018 and FY2019 true up (to be accounted for in FY2019) VARIATION DAAU Reset of FY2019 volu
Slide 9: Contact and further information
Contact and further information Chris Vagg Kath Clapham Head of Investor Relations & Group Treasurer Manager Investor Relations chris.vagg@aurizon.com.au kath.clapham@aurizon.com.au +61 7 3019 9030 +61 7 3019 9044 ASX: AZJ US OTC: AZNNY
Slide 10: Rebate mechanism
UT5 UPDATE ADDITIONAL INFORMATION Rebate mechanism Rebate will be payable to customers where Aurizon performs below target levels › A customer will be entitled to a rebate from Aurizon where it has received less than its annual contracted capacity, as assessed by the Independent Expert, as a result
Slide 11: Detailed MAR breakdown Customer DAAU v UT5FD
UT5 UPDATE ADDITIONAL INFORMATION Detailed MAR breakdown Customer DAAU v UT5FD The summary below excludes GAPE and assumes no volume variance or rebates payable CUSTOMER DAAU (ex GAPE) VARIANCE CUSTOMER DAAU v UT5FD (ex GAPE) $m FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 Reason for change Ass
Slide 12: What’s included in each building block
UT5 UPDATE ADDITIONAL INFORMATION What’s included in each building block BUILDING BLOCK DETAILS Return on capital (WACC) › 5.70% from 1 July 2017 to 2 May 2019 › 5.90% from 3 May 2019 to Report Date (expected 2HFY2020) › 6.30% from Report Date to 30 June 2023 › WACC reset at 1 July 2023 (reset of ri
Slide 13: What’s included in each building block
UT5 UPDATE ADDITIONAL INFORMATION What’s included in each building block BUILDING BLOCK DETAILS Operating expenditure › Includes all costs associated with train control, planning, infrastructure management and business development. It also includes corporate overheads for the operation of the busine
Slide 14: Glossary
UT5 UPDATE ADDITIONAL INFORMATION Glossary Item Description Access Revenue Amounts received by Aurizon Network for access to the Network infrastructure under all Access Agreements Approval Date The date on which the Customer DAAU was approved by the QCA CQCN Central Queensland Coal Network DAAU Draf