Slide 1: Transurban 2012 Full Year Results
For personal use only TRANSURBAN 2012 FULL YEAR RESULTS 7 August 2012
Slide 2: Disclaimer
DISCLAIMER For personal use only 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 Tr
Slide 3: TCL Investment Proposition
TCL INVESTMENT PROPOSITION For personal use only Proven volume growth Strong free cash growth Price increases at CPI or better Cost base that can be leveraged EBITDA CAGR of 12.1% over last three years Stable, low-risk ASX exposure with proven growth characteristics Robust balance sheet with 2.7x in
Slide 4: Introducing New CEO & CFO
INTRODUCING NEW CEO & CFO For personal use only Scott Charlton was appointed to replace Chris Lynch as CEO effective 16 July 2012 • Scott has more than 20 years‟ experience in construction, infrastructure, operations, maintenance and finance – most recently as Chief Operating Officer at Lend Lease S
Slide 5: Agenda
AGENDA For personal use only 1. Chief Executive Officer, Scott Charlton − Corporate update − Strategic overview − Asset results − Development pipeline 2. Chief Financial Officer, Samantha Hogg – 2012 results – Balance sheet – Funding update 3. Conclusion 4. Appendices Investor and media enquiries: W
Slide 6: FY12 Highlights
FY12 HIGHLIGHTS For personal use only • Further revenue, • M5 Widening • New CEO and CFO EBITDA and free reaches financial in place cash growth close despite roadwork • Ian Smith and disruptions • Hills M2 70% Christine O‟Reilly complete – on 70% join Board • Further cost schedule for mid- savings 2
Slide 7: State of Play in Our Sector
STATE OF PLAY IN OUR SECTOR For personal use only • Growing backlog of infrastructure projects in Transurban‟s main markets • Government funding is restricted – limited availability or political priority placed on maintaining credit ratings • As a result, private sector involvement in “government” i
Slide 8: Transurban – First Impressions
TRANSURBAN – FIRST IMPRESSIONS For personal use only • Quality/capability of people and assets is best in class • Solid fundamentals which allow for focus to be on adding value • Opportunity to refine operating model to increase value for securityholders and partners • Clients in need of Transurban‟
Slide 9: TCL Looking Forward
TCL LOOKING FORWARD CONTINUING WITH CURRENT STRATEGY For personal use only • Discipline around operations • Leverage TCL‟s footprint into near-neighbour projects to solve network issues – benefits include: – Synergies – Traffic understanding – Government relationships and credibility • Continue to b
Slide 10: Safety
SAFETY ENHANCING A CULTURE OF SAFETY For personal use only CityLink “Red X” campaign aimed at ensuring compliance with lane-use signals to improve safety and traffic flow Transurban positioned as a safety leader in Northern Virginia via the “Orange Cones. No Phones.” campaign Transurban champions pu
Slide 11: Asset Snapshot
ASSET SNAPSHOT TRAFFIC GROWTH ACROSS PORTFOLIO For personal use only • CityLink delivered 8.5% toll revenue growth • Hills M2 construction activity impacting northern half of Sydney network % OF PROPORTIONAL TOLL REVENUE ASSET TRAFFIC GROWTH (%) EBITDA GROWTH (%) TOLL REVENUE GROWTH (%) 50.0% CityLi
Slide 12: Melbourne: CityLink – Maximising Traffic Flow
MELBOURNE CITYLINK – MAXIMISING TRAFFIC FLOW For personal use only FY12 • Strong toll revenue growth • Western Link resheeting works completed • GLIDe successfully implemented FY13 • Western Link congestion targeted • Government in market soundings on potential „East- West” tunnel • Further benefits
Slide 13: Sydney: Adding Capacity to the Orbital Network
SYDNEY ADDING CAPACITY TO THE ORBITAL NETWORK For personal use only FY12 • Hills M2 Upgrade 70% complete – impacting traffic through north-west corridor • M5 Widening reaches financial close FY13 • Hills M2 Upgrade concludes mid-2013 • M5 Widening project commences – to conclude late 2014 • Exclusiv
Slide 14: United States: Key Projects Materialising
UNITED STATES KEY PROJECTS MATERIALISING For personal use only FY12 • 495 Express Lanes construction progresses – 95% complete (on time, no construction claims onfoot) • Pocahontas 895 asset impairment FY13 • 495 Express Lanes reach Toll Day One – late 2012 • 95 Express Lanes reach financial close a
Slide 15: Express Lanes Operations Countdown
495 EXPRESS LANES OPERATIONS COUNTDOWN For personal use only Virginia Department of Transportation launches E-ZPass Flex transporter July 2012 495 Express Lanes marketing campaign begins Early September 2012 Completion of system user acceptance testing Late September 2012 Completion of site works No
Slide 16: Distribution
DISTRIBUTION 9.3% INCREASE IN FULL YEAR DISTRIBUTION For personal use only FY12 – third year of distribution growth • 29.5 cents • 7 cents fully franked • Fully free-cash backed FY13 – guidance of 31.0 cents • At least 95% free cash covered • Franked component expected to remain consistent with FY12
Slide 17: TCL Portfolio – Continued Growth
DELIVERING TCL PORTFOLIO – CONTINUED GROWTH For personal use only • Toll day one for 495 Express Lanes approaching • Hills M2 construction - expected completion mid-2013 • 95 Express Lanes and M5 Widening construction begin • Sydney F3-M2 exclusive 95 Express Lanes discussions begin M5 Widening $943
Slide 18: Financial Results
For personal use only FINANCIAL RESULTS SAMANTHA HOGG – CHIEF FINANCIAL OFFICER
Slide 19: Statutory Results
STATUTORY RESULTS For personal use only • Net profit $58.6 million (2011: $118.2 million profit) 50.4% – Impacted by equity accounting effect of the impairment charge to Pocahontas ($138.1m) • Toll revenue $765.4 million (2011: $724.1 million) 5.7% • Fee and other revenue $80.8 million (2011: $75.1
Slide 20: Statutory Results: Income Statement
STATUTORY RESULTS INCOME STATEMENT YEAR ENDED 30 JUNE 2012 For personal use only 30 JUNE 12 ($M) 30 JUNE 11 ($M) % CHANGE Toll revenue 765.4 724.1 5.7% Fee and other revenue 80.8 75.1 7.6% Construction revenue 286.3 220.0 30.1% Business development & other revenue 22.0 17.3 27.2% Total revenue 1,154
Slide 21: Proportional Result
PROPORTIONAL RESULT YEAR ENDED 30 JUNE 2012 For personal use only 30 JUNE 12 ($M) 30 JUNE 11 ($M) % CHANGE Toll revenue 943.9 891.0 5.9% Fee revenue 68.3 62.8 8.8% Other revenue 35.0 19.2 82.3% Total revenue 1,047.2 973.0 7.6% Operating costs (220.0) (214.6) (2.5%) Business development costs (14.6)
Slide 22: Toll Revenue Growth
TOLL REVENUE GROWTH CITYLINK LEADING GROWTH IN TOLL REVENUE For personal use only • CityLink – Transurban‟s largest PROPORTIONAL TOLL REVENUE GROWTH asset leading revenue growth in portfolio 960.0 950.0 4.9 943.9 • M5 revenue growth - largely 940.0 8.3 0.4 6.8 37.0 driven by the first car toll price
Slide 23: EBITDA Growth
EBITDA GROWTH CONTINUING COST CONTROL For personal use only • Underlying proportional PROPORTIONAL EBITDA GROWTH EBITDA growth 9.1% 800.0 6.1 784.0 • EBITDA growth 790.0 780.0 7.9 7.5 52.9 enhanced by continued 770.0 (2.6) (2.8) (2.2) (1.5) 760.0 cost discipline 750.0 740.0 • Continuing to target 73
Slide 24: Free Cash Flow
FREE CASH FLOW 11% GROWTH IN UNDERLYING FREE CASH For personal use only FREE CASH FLOW 30 JUNE 12 ($M) 30 JUNE 11 ($M) % CHANGE Underlying free cash: First half 184.2 188.1 (2.1%) Second half 249.2 202.3 23.2% Total 433.4 390.4 11.0% Underlying free cash per security (cents) – securities on issue at
Slide 25: Growth in Underlying Free Cash
GROWTH IN UNDERLYING FREE CASH TOLL REVENUE DRIVING INCREASE IN FREE CASH For personal use only • 5.9% growth in UNDERLYING FREE CASH GROWTH proportional toll revenue driving free cash 480.0 460.0 • Additional cash interest 6.5 12.5 433.4 440.0 40.8 due primarily to USPP 10.8 (6.1) 420.0 3.9 3.8 not
Slide 26: Free Cash Flow
FREE CASH FLOW For personal use only 30 JUNE 12 ($M) 30 JUNE 11 ($M) % CHANGE Cashflows adjusted from operating activities (refer Group statutory accounts) 373.2 374.7 (0.4%) Adjusted for: M7 Term Loan Notes received (30.9) (37.0) 16.5% Payments for maintenance capital expenditure 27.7 18.4 50.5% Ca
Slide 27: Reconciliation of Free Cash
RECONCILIATION OF FREE CASH EBITDA GROWTH TRANSLATING INTO FREE CASH For personal use only 30 JUNE 12 ($M) 30 JUNE 11 ($M) % CHANGE Underlying proportional EBITDA 784.0 718.7 9.1% Adjusted for proportional: Maintenance provision 24.9 26.9 (7.4%) Operating and working capital movements (22.3) (14.5)
Slide 28: Finance Costs
FINANCE COSTS NET FINANCE COSTS PAID 30 JUNE 2012 For personal use only NON-CASH ITEMS CONCESSION PROPORTIONAL STATUTORY ACCRETION, OTHER NON-CASH NET INTEREST DEBT FEES AND NET INTEREST OWNERSHIP NET TIFIA, TLN & ITEMS PAID AMORTISATION MAINTENANCE PAID INTEREST USPP UNWIND Controlled entities City
Slide 29: Reliable Funding
RELIABLE FUNDING $2 BILLION FINANCED IN PAST 12 MONTHS For personal use only • $708 million corporate debt refinanced – working capital facilities, term debt, CAD bonds • $1,255 million asset debt financed – M1 Eastern Distributor, M5 widening and refinance • Senior debt ratings affirmed A- / Baa1 /
Slide 30: Funding Snapshot
FUNDING SNAPSHOT REFINANCING ACTIVITIES For personal use only • No material corporate refinancing requirements in next 12 months • Westlink M7 refinance in progress ahead of December maturity DEBT MATURITIES – FIVE YEAR FORWARD VIEW. CORPORATE ASSET 600 1,400 500 165 1,200 - 1,000 400 505 AUD millio
Slide 31: Conclusion
CONCLUSION For personal use only • 5.9% proportional toll revenue growth despite construction impacts across network • FY12 full-year distribution of 29.5 cents declared, including 7 cents fully franked • 2.7x Interest Cover Ratio • Growth pipeline on track: – 495 Express Lanes set to open late 2012
Slide 32: Appendix – Detailed Financials
For personal use only APPENDIX 1 – DETAILED FINANCIALS
Slide 33: Reconciliation: Statutory EBITDA to Proportional EBITDA
RECONCILIATION STATUTORY EBITDA TO PROPORTIONAL EBITDA For personal use only 30 JUNE 12 ($M) 30 JUNE 11 ($M) % CHANGE Statutory EBITDA 636.9 603.9 5.5% Less: EBITDA attributable to Non-controlling interest (16.9) (18.7) 9.6% Add: M5 proportional EBITDA 82.3 75.2 9.4% Add: M7 proportional EBITDA 78.7
Slide 34: Reconciliation: Statutory Income Statement to EBITDA – June 2012
RECONCILIATION STATUTORY INCOME STATEMENT TO EBITDA – 30 JUNE 2012 For personal use only OFFSET CONSTRUCTION REALLOCATION OTHER STATUTORY NET BUSINESS ACCOUNTING OF $M REVENUE TOTAL P&L DEVELOPMENT DISCLOSURE CAPITALISED REALLOCATION UNDER COSTS AASB I 12 Toll revenue 765.4 - - - - 765.4 Fee & other
Slide 35: Result by Asset – Consolidated Assets June 2012
RESULT BY ASSET – 100% CONSOLIDATED ASSETS – 30 JUNE 2012 For personal use only LANE COVE $M CITYLINK HILLS M2 TOLLAUST M1 ED ROAM OTHER TOTAL TUNNEL Toll revenue 471.6 141.2 60.0 - 92.6 - - 765.4 Fee & other revenue 44.8 3.3 1.6 7.5 0.3 16.0 24.5 98.0 Total revenue 516.4 144.5 61.6 7.5 92.9 16.0 24
Slide 36: Result by Asset – Equity Assets June 2012
RESULT BY ASSET – 100% EQUITY ASSETS – 30 JUNE 2012 For personal use only M5 SOUTH WEST POCAHONTAS 495 EXPRESS $M WESTLINK M7 DRIVE TOTAL MOTORWAY 895 LANES Toll revenue 181.1 200.5 14.4 - - 396.0 Fee & other revenue 11.6 2.6 0.1 - - 14.3 Total revenue 192.7 203.1 14.5 - - 410.3 Total cost (28.1) (4
Slide 37: Reconciliation: Statutory Income Statement to EBITDA – June 2011
RECONCILIATION STATUTORY INCOME STATEMENT TO EBITDA – 30 JUNE 2011 For personal use only OFFSET CONSTRUCTION REALLOCATION OTHER STATUTORY NET BUSINESS ACCOUNTING OF $M REVENUE TOTAL P&L DEVELOPMENT DISCLOSURE CAPITALISED REALLOCATION UNDER COSTS AASB I 12 Toll revenue 724.1 - - - - 724.1 Fee & other
Slide 38: Result by Asset – Consolidated Assets June 2011
RESULT BY ASSET – 100% CONSOLIDATED ASSETS – 30 JUNE 2011 For personal use only LANE COVE $M CITYLINK HILLS M2 TOLLAUST M1 ED ROAM OTHER TOTAL TUNNEL Toll revenue 434.6 145.7 51.7 - 92.1 - - 724.1 Fee & other revenue 42.0 2.0 1.3 6.9 0.3 15.4 10.2 78.1 Total revenue 476.6 147.7 53.0 6.9 92.4 15.4 10
Slide 39: Result by Asset – Equity Assets June 2011
RESULT BY ASSET – 100% EQUITY ASSETS – 30 JUNE 2011 For personal use only M5 SOUTH WEST POCAHONTAS 495 EXPRESS $M WESTLINK M7 DRIVE TOTAL MOTORWAY 895 LANES Toll revenue 167.5 190.6 14.4 - - 372.5 Fee & other revenue 10.8 2.5 - - - 13.3 Total revenue 178.3 193.1 14.4 - - 385.8 Total cost (28.0) (43.
Slide 40: Taxation
TAXATION STATUTORY AND PROPORTIONAL For personal use only STATUTORY TAX PAID / (REFUNDS RECEIVED) INCLUDES 30 JUNE 12 ($M) 30 JUNE 11 ($M) M1 Eastern Distributor 44.8 37.5 M4 0.4 0.5 Transurban US 0.5 (0.1) Westlink holding companies 1.9 4.7 Corporate (1.7) - TOTAL 45.9 42.6 PROPORTIONAL TAX PAID /
Slide 41: Maintenance Expense
MAINTENANCE EXPENSE INCLUDED IN OPERATING COSTS For personal use only ADDITIONAL MAINTENANCE PROVISION RECOGNISED DURING THE YEAR – 100% 30 JUNE 12 ($M) 30 JUNE 11 ($M) CityLink 8.3 10.8 Hills M2 2.2 2.4 Lane Cove Tunnel 4.1 4.7 M1 Eastern Distributor 4.4 3.9 M5 South West Motorway 3.6 2.1 Westlink
Slide 42: Finance Costs – Net Finance Costs Paid June 2011
FINANCE COSTS NET FINANCE COSTS PAID – 30 JUNE 2011 For personal use only NON-CASH ITEMS CONCESSION AND ACCRETION, PROPORTIONAL STATUTORY DEBT FEES OTHER NON-CASH NET INTEREST OWNERSHIP MAINTENANCE TIFIA, TLN & NET INTEREST NET INTEREST AMORTISATION ITEMS PAID UNWIND USPP PAID Controlled entities Ci
Slide 43: Appendix – Detailed Treasury and Funding
For personal use only APPENDIX 2 – DETAILED TREASURY AND FUNDING
Slide 44: Group Drawn Debt at June 2012
GROUP DRAWN DEBT AT 30 JUNE 2012 For personal use only TRANSURBAN CORPORATE DEBT AUD ($M) USD ($M) Working capital lines1 - 61 Term bank debt 600 - US Private Placements 1,336 162 Domestic AUD bonds 1,050 - Canadian MTN (CAD Notes) 233 - Total 3,219 223 Non recourse (AUD $ million) Asset Debt Owners
Slide 45: Total Group Drawn Debt
TOTAL GROUP DRAWN DEBT PROPORTIONAL DRAWN DEBT For personal use only GROUP DEBT 30 JUNE 2012 30 JUNE 2011 MOVEMENT EXPLANATION AUD1 $30m net increase in bonds ($233m CAD MTN issued and $203m matured) Corporate 3,219 3,177 42 $12m movement in 2006 USPP accreted interest $4m increase of M1 drawn debt
Slide 46: Key Debt Metrics
KEY DEBT METRICS For personal use only 30 JUNE 12 30 JUNE 11 TRANSURBAN TRANSURBAN CORPORATE NON RECOURSE CORPORATE NON RECOURSE GROUP GROUP Weighted average maturity (years) 1 9.6 yrs 5.1 yrs 12.8 yrs 8.9 yrs 5.3 yrs 11.8 yrs Weighted average cost of AUD debt 2 6.9% 6.9% 7.0% 7.0% 6.7% 7.3% Weighte
Slide 47: Corporate Debt Maturities
CORPORATE DEBT MATURITIES BY FINANCIAL YEAR For personal use only AS AT 30 JUNE 2012 700 600 - 500 136 - 300 AUD million 400 - 500 250 254 300 - 315 - 133 - 200 165 - - - - - 233 100 220 219 206 - 130 129 160 159 100 125 94 - - - - - - - - - - - - - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 48: Asset Debt Maturities
ASSET DEBT MATURITIES BY FINANCIAL YEAR For personal use only AS AT 30 JUNE 2012 1,400 - 1,200 - - 1,000 505 578 578 AUD million 800 - - 600 - 250 - 400 288 400 - 578 500 - 200 432 - 340 300 260295 225 123 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 51 - - - - Pocahontas TIFIA Fund
Slide 49: Appendix – Portfolio Summary
For personal use only APPENDIX 3 – PORTFOLIO SUMMARY
Slide 50: Asset Snapshot
ASSET SNAPSHOT For personal use only TOLL TOLL TOLL % OF TRAFFIC TRAFFIC TRAFFIC EBITDA EBITDA EBITDA REVENUE REVENUE REVENUE PROPORTIONAL GROWTH GROWTH GROWTH GROWTH GROWTH GROWTH GROWTH GROWTH GROWTH TOLL REVENUE 1H (%) 2H (%) FY (%) 1H (%) 2H (%) FY (%) 1H (%) 2H (%) FY (%) 50.0% CityLink 2.3% 1.
Slide 51: Operating Asset Portfolio Summary Statistics
OPERATING ASSET PORTFOLIO SUMMARY STATISTICS For personal use only M5 SOUTH WEST M1 EASTERN HILLS M2 WESTLINK M7 LANE COVE TUNNEL CITYLINK POCAHONTAS 895 MOTORWAY DISTRIBUTOR OVERVIEW NSW NSW NSW NSW NSW VIC Virginia, USA Opening date August 1992 May 1997 December 1999 December 2005 March 2007 Decem
Slide 52: Tolling Escalation
TOLLING ESCALATION EMBEDDED INFLATION PROTECTION For personal use only MOTORWAY ESCALATION* Escalated quarterly by quarterly CPI. The toll cannot be lowered as a result of deflation, however, until inflation counteracts the deflation the toll M5 South West Motorway* cannot be increased. Hills M2* Es
Slide 53: For personal use only
For personal use only > Click to edit Master text styles − Second level > Third level 52