Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — FY2020 Earnings Presentation
81 slides from Aurizon's earnings presentation, Aug 10, 2020
Slide 1: Full year results presentation
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 10 August 2020 Full year results presentation Please find attached the Company’s full year results presentation for release to the market. T
Slide 2: FY2020 Results
10 August 2020 FY2020 Results For personal use only Andrew Harding – Managing Director & CEO George Lippiatt – CFO & Group Executive Strategy Locomotive artwork by Aurizon employee Laurie Anno
Slide 3: Disclaimer
FY2020 RESULTS Disclaimer For personal use only NO RELIANCE ON THIS DOCUMENT NO OFFER OF SECURITIES This document was prepared by Aurizon Holdings Limited (ACN 146 335 622) (referred to as Nothing in this presentation should be construed as a recommendation of or an offer to sell or “Aurizon” which
Slide 4: Safety performance
FY2020 RESULTS Safety performance Mixed safety performance in FY2020. Safety remains our core value and we are continuing to For personal use only invest in technology, processes and people to deliver further safety benefits TOTAL RECORDABLE INJURY FREQUENCY RATE (TRIFR)1 RAIL PROCESS SAFETY (RPS) -
Slide 5: COVID-19 Update
For personal use only COVID-19 Update Andrew Harding Managing Director & CEO
Slide 6: COVID-19: Aurizon Update
FY2020 RESULTS COVID-19 UPDATE COVID-19: Aurizon Update Measures were taken to minimise impact to employees and ensure resilience of operations For personal use only › Crisis Management Team stood up and led by CEO › Increased staff awareness and education on personal hygiene and cleaning protocols
Slide 7: COVID-19: Market Update
FY2020 RESULTS COVID-19 UPDATE COVID-19: Market Update Although volume impact was not significant in FY2020, recessionary conditions expected to For personal use only impact steel demand in FY2021 CRUDE STEEL PRODUCTION: KEY NATIONS1 Year-on-year change › China: Crude steel production in China maint
Slide 8: Performance overview
For personal use only Performance overview Andrew Harding Managing Director & CEO
Slide 9: FY2020 highlights
FY2020 RESULTS PERFORMANCE OVERVIEW FY2020 highlights1 Solid result with EBIT inline with guidance range. Ongoing shareholder distributions including For personal use only maintaining dividends at 100% for fifth year and further capital management GROUP EBIT STATUTORY NPAT2 ROIC FREE CASHFLOW $909m
Slide 10: Coal update
FY2020 RESULTS PERFORMANCE OVERVIEW Coal update Priority is the continuation of operational efficiency improvements supporting contracted volume For personal use only growth. FY2021 revenue expected to be impacted by flat volumes CUSTOMER UPDATE OPERATIONAL EFFICIENCIES › Peabody – commenced railing
Slide 11: Bulk update
FY2020 RESULTS PERFORMANCE OVERVIEW Bulk update Strong performance continues with new contracts and operational efficiencies. Aurizon Port For personal use only Services expands product offering in North Queensland CUSTOMER UPDATE REVENUE BY COMMODITY1 › South32 Cannington – 11 year contract extensi
Slide 12: Network Update
FY2020 RESULTS PERFORMANCE OVERVIEW Network Update The implementation of UT5 has resulted in benefits for both customers and Aurizon. Initial For personal use only Capacity Assessment is now expected in 2HFY20211 IMPLEMENTATION › UT5 consolidated DAAU approved February 2020 UPDATE › RIG2 established
Slide 13: Other matters
FY2020 RESULTS PERFORMANCE OVERVIEW Other matters Progress of other major items For personal use only SALE OF ACACIA › 28 July 2017: Binding agreement signed with Pacific National RIDGE TERMINAL › 6 May 2020: Federal Court unanimously dismissed an appeal by the ACCC that the sale contravened the Com
Slide 14: FY2020 Financial Performance
For personal use only FY2020 Financial Performance George Lippiatt CFO & Group Executive Strategy
Slide 15: Key financial highlights
FY2020 RESULTS FINANCIAL PERFORMANCE Key financial highlights1 EBIT performance driven by Bulk (volume growth) and Network (implementation of UT5) For personal use only $m FY2020 FY2019 Variance › Revenue growth reflects the approved UT5 Revenue 3,065 2,908 5% Undertaking in Network and new contract
Slide 16: Coal
FY2020 RESULTS FINANCIAL PERFORMANCE Coal EBIT result reflects costs installed for contracted volume growth For personal use only $m FY2020 FY2019 Variance Revenue Above rail 1,260 1,236 2% › Volumes flat – down 1% in CQCN impacted by customer production issues, NSW & Track access 513 488 5% SEQ up
Slide 17: Bulk
FY2020 RESULTS FINANCIAL PERFORMANCE Bulk Revenue growth driving strong EBIT performance For personal use only $m FY2020 FY2019 Variance Revenue Revenue 609 502 21% › Revenue higher through new contract growth and improved revenue quality Access costs (111) (104) (7%) Costs Operating costs (388) (33
Slide 18: Network
FY2020 RESULTS FINANCIAL PERFORMANCE Network EBIT growth from UT5 finalisation with operating costs under the regulatory allowance For personal use only $m FY2020 FY2019 Variance Revenue Track Access 1,132 1,070 6% › Increase in track access revenue principally as a result of the increased UT5 MAR w
Slide 19: Cashflow and shareholder returns
FY2020 RESULTS FINANCIAL PERFORMANCE Cashflow and shareholder returns Consistent free cash flow generation has delivered $3.5bn in shareholder distributions over the For personal use only past five years including $1bn in buy-backs, with dividends maintained at 100% of NPAT FREE CASH FLOW ($M) SHARE
Slide 20: Capital expenditure
FY2020 RESULTS FINANCIAL PERFORMANCE Capital expenditure FY2020 spend inline with guidance of $500-530m. Growth capex to support Bulk and Coal in For personal use only FY2021 CAPITAL EXPENDITURE1 ($M) › Capital expenditure guidance for 532 527 ~500-550 FY2021 $500m - $550m 490 495 › FY2021 Growth ca
Slide 21: Funding update
FY2020 RESULTS FINANCIAL PERFORMANCE Funding update Recent Network bank debt re-financing allows for upcoming bond maturity, providing options for For personal use only future funding requirements FY2020 FUNDING ACTIVITY KEY DEBT METRICS FY2020 FY2019 › Network replaced $880m syndicated facilities w
Slide 22: Outlook & Key Takeaways
For personal use only Outlook & Key Takeaways Andrew Harding Managing Director & CEO
Slide 23: FY2021 outlook
FY2020 RESULTS OUTLOOK & KEY TAKEAWAYS FY2021 outlook Group EBIT guidance $830m – $880m For personal use only KEY ASSUMPTIONS › Coal ‒ Flat volumes of 210-220mt based on current view of COVID-19 impact on coal demand › Network ‒ Tariffs based on QCA approved volume forecast of 239mt – 5% higher than
Slide 24: Strategy delivers results
FY2020 RESULTS OUTLOOK & KEY TAKEAWAYS Strategy delivers results Aurizon’s strategy enables the delivery of shareholder value For personal use only Achieve Execute Ongoing De-risk near fundamental Optimal legal Pursue Business Freight operational term Above regulatory and capital growth in Structure
Slide 25: Contact and further information
Contact and further information Chris Vagg James Coe Head of Investor Relations & Group Treasurer Manager Market Intelligence & Investor Relations +61 7 3019 9030 +61 7 3019 7526 For personal use only Chris.Vagg@aurizon.com.au James.Coe@aurizon.com.au ASX: AZJ US OTC: AZNNY
Slide 26: Additional Information: ESG
For personal use only Additional Information: ESG
Slide 27: Sustainability
FY2020 RESULTS ADDITIONAL INFORMATION Sustainability FY2020 will be the fourth year of TCFD disclosure for Aurizon For personal use only › Aurizon takes a direct approach to reporting environmental, social and governance (ESG) disclosures with the publication of the annual Sustainability Report › In
Slide 28: Environment
FY2020 RESULTS ADDITIONAL INFORMATION Environment Aurizon continues to focus on cutting diesel and greenhouse gas emissions as part of our efforts For personal use only to maintain Australia’s excellent air quality standards and manage our carbon footprint AURIZON’S GREENHOUSE GAS PROFILE AURIZON’S
Slide 29: Australian Export Coal Demand
FY2020 RESULTS ADDITIONAL INFORMATION Australian Export Coal Demand The fundamentals of Australian metallurgical and thermal coal remain strong, driven by steel and For personal use only energy demand in Asia, supporting coal export growth of 1-2%pa over the next decade METALLURGICAL COAL THERMAL CO
Slide 30: Australian Coal Summary
FY2020 RESULTS ADDITIONAL INFORMATION Australian Coal Summary For personal use only FY2019 Production FY2019 Domestic Use FY2019 Export FY2020 All Coal Export (By Destination) FY2020 All Coal Export (By Port) 106mt 101mt ∑ 389mt 164mt *Port Kembla to April 2020 only 460mt 67mt 394mt 48mt 111mt 72mt
Slide 31: Global Metallurgical (Coking) Coal Landscape
FY2020 RESULTS ADDITIONAL INFORMATION Global Metallurgical (Coking) Coal Landscape Almost 30% of global metallurgical coal demand is met through seaborne trade with Australia For personal use only commanding around 60% of this market 2018, million tonnes Import Market: Split 1,033mt 697mt 107mt Chin
Slide 32: Future of Coal | Metallurgical Coal
FY2020 RESULTS ADDITIONAL INFORMATION Future of Coal | Metallurgical Coal Driven by urbanisation and infrastructure development, the opportunity remains for India and For personal use only South East Asian nations to increase steel usage INDIA: CRUDE STEEL PRODUCTION AND COKING (METALLURGICAL) APPAR
Slide 33: Metallurgical Coal Market | Australia
FY2020 RESULTS ADDITIONAL INFORMATION Metallurgical Coal Market | Australia Driven by quality, cost-competitiveness and proximity to Asian markets, Australia holds a unique For personal use only position in the seaborne market. A further 25 billion tonnes1 of resources can be drawn upon AUSTRALIA: M
Slide 34: Global Thermal (Steam) Coal Landscape
FY2020 RESULTS ADDITIONAL INFORMATION Global Thermal (Steam) Coal Landscape Over 80% of global thermal coal demand is produced and consumed within country. Australia For personal use only holds around 20% of the seaborne market that is dominated by Asian demand 2018, million tonnes 5,977mt 4,909mt I
Slide 35: Future of Coal | Thermal Coal
FY2020 RESULTS ADDITIONAL INFORMATION Future of Coal | Thermal Coal 99% of Australian exports are destined for Asia. It is this region (rather than global consumption) For personal use only that is projected to use coal-fired generation assets for a prolonged period PER CAPITA ELECTRICITY CONSUMPTIO
Slide 36: Thermal Coal Market | Australia
FY2020 RESULTS ADDITIONAL INFORMATION Thermal Coal Market | Australia Australia’s thermal coal competitiveness is driven by coal quality characteristics and geographic For personal use only proximity to Asia AUSTRALIA: THERMAL COAL EXPORT VOLUME AND PRICE1 THERMAL COAL CASH COSTS (US$/t, CFR JAPAN,
Slide 37: Additional Information: Group
For personal use only Additional Information: Group
Slide 38: Aurizon's rail haulage operations
FY2020 RESULTS ADDITIONAL INFORMATION Aurizon’s rail haulage operations For personal use only KEY OPERATIONAL STATISTICS COMMODITIES Coal and bulk freight ROLLINGSTOCK ~500 active locomotives OPERATIONAL FOOTPRINT ~40 operational sites PEOPLE More than 4,600 full-time employees WAGONS 11,000+ active
Slide 39: Vision, purpose, values and strategic levers
FY2020 RESULTS ADDITIONAL INFORMATION Aurizon’s vision, purpose, values and strategic levers Execution against the three strategic levers is aimed at driving differentiation, competitive For personal use only advantage and sustainable performance VISION PURPOSE STRATEGIC LEVERS Accelerate cost compe
Slide 40: Quarterly tonnes: June 2020
FY2020 RESULTS ADDITIONAL INFORMATION Quarterly tonnes: June 2020 For personal use only Quarter Ending Financial Year Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Variance1 FY2020 FY2019 Variance1 Coal volumes (mt) CQCN 39.5 36.6 37.7 37.0 38.8 (2%) 150.1 152.3 (1%) NSW & SEQ 16.6 16.2 15.8 14.8 17.0 2% 63.8
Slide 41: Enterprise Agreements
FY2020 RESULTS ADDITIONAL INFORMATION Enterprise Agreements For personal use only Headline Increases # Staff Term EA Covered Expiry Date Year 1 Year 2 Year 3 Year 4 Status (years) (approx.) WA Rollingstock Maintenance 100 4 10 May 2021 1.0% 1.5% 1.75% 1.75% Complete WA Rail Operations 420 4 30 June
Slide 42: Prioritisation of capital
FY2020 RESULTS ADDITIONAL INFORMATION Prioritisation of capital For personal use only CAPITAL ALLOCATION HIERARCHY 1 2 3 4 DETERMINE NON GROWTH SURPLUS AVAILABLE DIVIDENDS CAPITAL CAPITAL CAPITAL › Ongoing operating › Sustaining and › Within 70-100% › Capital management cashflows transformation payo
Slide 43: Financial highlights (underlying)
FY2020 RESULTS ADDITIONAL INFORMATION Financial highlights1 (underlying) For personal use only $m FY2020 FY2019 Variance Revenue 3,064.6 2,907.6 5% Operating Costs (1,597.0) (1,536.0) (4%) EBITDA 1,467.6 1,371.6 7% EBIT 909.0 829.0 10% NPAT 531.4 473.3 12% EPS (cps) 27.2 23.8 14% Final dividend per
Slide 44: Underlying group EBIT bridge
FY2020 RESULTS ADDITIONAL INFORMATION Underlying group EBIT bridge1 ($m) For personal use only 37 69 909 53 829 5 FY2019 Coal Bulk Network Other FY2020 1. Continuing operations 43
Slide 45: Underlying EBIT by business unit
FY2020 RESULTS ADDITIONAL INFORMATION Underlying EBIT1 by business unit ($m) For personal use only FY2020 FY2019 Variance Coal 410.6 415.1 (1%) Bulk 89.9 37.3 141% Network 468.8 400.3 17% Other (60.3) (23.7) (154%) EBIT 909.0 829.0 10% 1. Continuing operations 44
Slide 46: Group operating highlights
FY2020 RESULTS ADDITIONAL INFORMATION Group operating highlights1 For personal use only FY2020 FY2019 Variance Labour Costs2 / Revenue 26.4% 26.0% (0.4ppt) EBITDA Margin – Underlying 47.9% 47.2% 0.7ppt Operating Ratio – Underlying 70.3% 71.5% 1.2ppt Above Rail Tonnes (m) 262.0 258.9 1% People (FTE)
Slide 47: Balance sheet summary
FY2020 RESULTS ADDITIONAL INFORMATION Balance sheet summary ($m) For personal use only 30 June 2020 30 June 2019 Assets classified as held for sale 65.1 108.4 Other current assets 650.2 631.2 Total current assets 715.3 739.6 Property, plant and equipment (PP&E) 8,537.1 8,536.3 Other non-current asse
Slide 48: Reconciliation of borrowings
FY2020 RESULTS ADDITIONAL INFORMATION Reconciliation of borrowings For personal use only $m Commentary Total debt including working capital facility 3,363.4 Borrowings on a cash basis Reconciliation to Financial Statements Add/(less): Capitalised transaction costs (10.2) Discounts on medium term not
Slide 49: Significant adjustments
FY2020 RESULTS ADDITIONAL INFORMATION Significant adjustments ($m) For personal use only FY2020 FY2019 Variance Continuing operations – Net gain on sale of Rail Grinding (before tax) 105.4 - - 48
Slide 50: Redundancy cost information
FY2020 RESULTS ADDITIONAL INFORMATION Redundancy cost information For personal use only Redundancy costs Redundancy costs › Redundancy costs since IPO have been included in Year included in underlying classified as Significant underlying EBIT as well as classified as a significant EBIT ($m) items ($
Slide 51: Dividend history
FY2020 RESULTS ADDITIONAL INFORMATION Dividend history For personal use only Payment Date Amount per share (cents) Franking Payout Ratio FY2020 Final 21 September 2020 13.7 70% 100%1 FY2020 Interim 23 March 2020 13.7 70% 100%1 FY2020 Total Dividend 27.4 FY2019 Final 23 September 2019 12.4 70% 100%1
Slide 52: Adoption of new accounting standards
FY2020 RESULTS ADDITIONAL INFORMATION Adoption of new accounting standards The Group adopted AASB 16 from 1 July 2019 For personal use only IMPACT ON BALANCE SHEET ASSETS $m › The adoption of AASB 16 results in almost all previously Current Assets recognised operating leases being recognised on the
Slide 53: Additional information: Coal
For personal use only Additional information: Coal
Slide 54: Coal snapshot
FY2020 RESULTS ADDITIONAL INFORMATION Coal snapshot As at 30 June 2020 For personal use only 214 332 234km million tonnes1 average haul 70% CQCN active locos 30% NSW/SEQ length 74 8,721 23.5km/hr average services active wagons velocity per day 1. Estimated coal type split FY2020: metallurgical coal
Slide 55: Coal operations - CQCN
FY2020 RESULTS ADDITIONAL INFORMATION Coal operations - CQCN For personal use only 54 Includes all mines in the CQCN
Slide 56: Coal operations – NSW & South East Queensland
FY2020 RESULTS ADDITIONAL INFORMATION Coal operations – NSW & South East Queensland (SEQ) For personal use only 55 Includes all mines in NSW & SEQ
Slide 57: Coal: Operating metrics
FY2020 RESULTS ADDITIONAL INFORMATION Coal: Operating metrics1 For personal use only FY2020 FY2019 Variance Total tonnes hauled (m) 213.9 214.3 - Contract utilisation 86% 90% (4ppt) Total NTK (bn) 50.0 50.5 (1%) Average haul length (km) 234 236 (1%) Total revenue / NTK ($/’000 NTK) 35.5 34.2 4% Abov
Slide 58: Coal haulage tonnes (mt) by system
FY2020 RESULTS ADDITIONAL INFORMATION Coal haulage tonnes (mt) by system For personal use only FY2020 FY2019 Variance CQCN Newlands 20.8 18.8 11% Goonyella 59.9 61.0 (2%) Blackwater 55.6 58.9 (6%) Moura 13.8 13.6 1% Total CQCN 150.1 152.3 (1%) NSW & SEQ West Moreton 5.5 7.4 (26%) Hunter Valley 58.3
Slide 59: Coal contract portfolio
FY2020 RESULTS ADDITIONAL INFORMATION Coal contract portfolio For personal use only AURIZON COAL CONTRACT VOLUME EXPIRY BY YEAR1 COAL CONTRACT PORTFOLIO EXPIRY1 AS AT 30 JUNE 2020 AS AT 30 JUNE 2020 13% 60 0-3 years 3-7 years 58% 29% 7+ years 45 Million tonnes per annum 30 FORECAST COAL CONTRACTED V
Slide 60: Additional Information: Bulk
For personal use only Additional Information: Bulk
Slide 61: Bulk snapshot
FY2020 RESULTS ADDITIONAL INFORMATION Bulk snapshot As at 30 June 2020 For personal use only 481 174 million tonnes active locos >15 3,176 products hauled active wagons 1. Top three Bulk commodities represent 73% of total volumes hauled in FY2020. Iron ore (27%), alumina (25%), Bauxite (21%). 60
Slide 62: Bulk operations – Queensland
FY2020 RESULTS ADDITIONAL INFORMATION Bulk operations – Queensland For personal use only 61
Slide 63: Bulk operations – New South Wales, Victoria and South Australia
FY2020 RESULTS ADDITIONAL INFORMATION Bulk operations – New South Wales, Victoria and South Australia For personal use only 62
Slide 64: Bulk operations – Western Australia
FY2020 RESULTS ADDITIONAL INFORMATION Bulk operations – Western Australia For personal use only 63
Slide 65: Bulk – Australia Capital & Exploration Expenditure
FY2020 RESULTS ADDITIONAL INFORMATION Bulk – Australia Capital & Exploration Expenditure For personal use only CAPITAL EXPENDITURE: METAL ORE MINING1 EXPLORATION EXPENDITURE: IRON ORE +36% A$4.0b A$150m +12% A$100m A$2.0b A$50m A$0.0b A$0m Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec-
Slide 66: Bulk commodities: Supply growth
FY2020 RESULTS ADDITIONAL INFORMATION Bulk commodities: Supply growth For personal use only Global & Australia supply growth (CAGR 2019-2025) Selected commodities 12% 10% 8% 6% 4% 2% n/a n/a 0% -2% -4% Nickel Lithium Zinc Copper Iron ore Alumina Bauxite Potash Phosphate Global Australia Notes/Source
Slide 67: Additional information: Network
For personal use only Additional information: Network
Slide 68: Network snapshot
FY2020 RESULTS ADDITIONAL INFORMATION Network snapshot As at 30 June 2020 For personal use only 227 40+ four above rail million tonnes1 mines serviced operators $5.5b five 2,670km Regulated Asset export terminals railway track Base2 1. Estimated split (all rail operators) metallurgical coal (69%), t
Slide 69: Central Queensland Coal Network (CQCN)
FY2020 RESULTS ADDITIONAL INFORMATION Central Queensland Coal Network (CQCN) CQCN comprises four major coal systems and one connecting system link (GAPE) servicing For personal use only Queensland’s Bowen Basin coal region 68
Slide 70: Network financial and operating metrics
FY2020 RESULTS ADDITIONAL INFORMATION Network financial and operating metrics For personal use only $m FY2020 FY2019 Variance Tonnes (m) 226.9 232.7 (2%) NTK (bn) 56.2 57.9 (3%) Operating Ratio 60.6% 64.2% 3.6ppt Maintenance/NTK ($/’000 NTK) 2.3 2.3 - Opex/NTK ($/’000 NTK) 12.8 12.4 (3%) Cycle Veloc
Slide 71: Network volumes: All rail operators
FY2020 RESULTS ADDITIONAL INFORMATION Network volumes: All rail operators For personal use only FY2020 FY2019 Variance Newlands 14.1 12.6 12% Goonyella 117.7 124.4 (5%) Blackwater 62.6 64.9 (4%) Moura 13.6 13.6 - GAPE 18.8 17.1 10% Total (mt) 226.9 232.7 (2%) Note: Due to rounding, the sum of compon
Slide 72: Network – FY2020 Access Revenue movement
FY2020 RESULTS ADDITIONAL INFORMATION Network – FY2020 Access Revenue movement For personal use only $m $m Increase in MAR from FY2019 to FY2020 76.6 Reversal of FY2018 UT5FD True-Up from FY2019 60.1 Volume under-recovery for FY2020 (22.6) Volume over-recovery for FY2019 (11.8) GAPE revenue (2.7) Re
Slide 73: Network adjusted MAR bridge – Approved UT5 Undertaking
FY2020 RESULTS ADDITIONAL INFORMATION Network adjusted MAR bridge – Approved UT5 Undertaking For personal use only INDICATIVE NETWORK ADJUSTED MAR* FY2018 – FY2023 ($M) ~957 ~3 ~954 ~16 13 9 ~941 936 23 13 ~914 55 ~77 869 12 60 45 23 60 18 21 45 FY18 MAR FY2018 FY2018 FY17 & FY19 FY19 FY20 FY17 FY20
Slide 74: Network revenue adjustment amounts (revenue cap)
FY2020 RESULTS ADDITIONAL INFORMATION Network revenue adjustment amounts (revenue cap) For personal use only › Revenue adjustment amounts (RAA) are the AT2-4 AT5 Total difference by system between Aurizon’s Total Financial Year (diesel tariff) (electric tariff) Actual AT2-5 Revenue and Allowable AT2
Slide 75: Reconciliation of billed MAR to reported access revenue
FY2020 RESULTS ADDITIONAL INFORMATION Reconciliation of billed MAR to reported access revenue For personal use only FY2020 FY2019 FY2018 $m Actual Actual Actual Billed Access Revenue (AT1 to AT5) (ex. GAPE) 927 885 940 Approved Adjustments to MAR Flood Claim recoveries1 - - 18 Revenue Cap (ex. GAPE
Slide 76: Regulated Asset Base (RAB)
FY2020 RESULTS ADDITIONAL INFORMATION Regulated Asset Base (RAB) Network maintains a record of the value of its existing assets for regulatory pricing called the RAB For personal use only ROLLFORWARD RAB › This represents the value of Network assets for regulatory purposes › Each year Network rolls
Slide 77: UT5 timeline
FY2020 RESULTS ADDITIONAL INFORMATION UT5 timeline For personal use only INDICATIVE UT5 TIMELINE 3 May 2019 2H FY2021 1 July 2023 30 June 2027 1 July 2017 Initial Date Report Date1 Reset Date Terminating Date WACC WACC WACC WACC 5.7% 5.9% 6.3% TBD Initial Date › The date on which the DAAU was submit
Slide 78: Additional information: Capital Expenditure
For personal use only Additional information: Capital Expenditure
Slide 79: Group and business unit capital expenditure
FY2020 RESULTS ADDITIONAL INFORMATION FY2020 group and business unit capital expenditure ($m) Capital result in line with guidance for FY2020. For personal use only 527 37 281 16 490 179 21 265 158 41 24 2 FY20201,2 Network1,2 Coal1 Bulk2 Intermodal Corporate Growth Non Growth 1. Includes capitalise
Slide 80: Glossary
FY2020 RESULTS ADDITIONAL INFORMATION Glossary For personal use only Metric Description Access Revenue Amounts received by Aurizon Network for access to the Network infrastructure under all Access Agreements AFD Access Facilitation Deed Average haul length NTK/Total tonnes Contract utilisation Total
Slide 81: For personal use only
7 4" AURIZON. AjuUoO SSN feuOoSISC! JOS