Transurban Group Ltd. · ASX:TCL
Transurban — Investor Presentation (August 2019)
101 slides from Transurban's investor presentation, Aug 7, 2019
Slide 1: FY19 Results, M5 Acquisition, Equity Raising
TRANSURBAN FY19 RESULTS M5 ACQUISITION EQUITY RAISING WestConnex – New M4 Tunnels
Slide 2: Disclaimer and Basis of Preparation
DISCLAIMER AND BASIS OF PREPARATION This publication is prepared by Transurban Holdings Limited (ACN 098 143 429), Transurban Holding Trust (ARSN 098 807 419) and Transurban International Limited (ACN 121 746 825) (“Transurban”). The responsible entity of Transurban Holding Trust is Transurban Infra
Slide 3: Disclaimer and Basis of Preparation
DISCLAIMER AND BASIS OF PREPARATION NO REPRESENTATIONS OR WARRANTIES No representation or warranty is made as to the accuracy, completeness or correctness of the information contained in this publication. To the maximum extent permitted by law, none of the Extended Parties or any other person, accep
Slide 4: Disclaimer and Basis of Preparation
DISCLAIMER AND BASIS OF PREPARATION This publication does not constitute an offer to sell, or a solicitation of any offer to buy, any Transurban securities in the United States, or in any other jurisdiction in which such an offer would be illegal. None of the securities to be offered and sold under
Slide 5: Contents
CONTENTS 06 HIGHLIGHTS 14 MARKET UPDATES 27 FINANCIAL RESULTS 36 SUMMARY 38 SUPPLEMENTARY INFORMATION TRANSURBAN FY19 RESULTS | 7 AUGUST 2019 5
Slide 6: Highlights: Financials
HIGHLIGHTS 2.0% 12.3% 34.62% average daily EBITDA growth to remaining interest in M5 West to be acquired for $468 million, taking traffic growth $2,016 million1 ownership to 100%2. Transaction immediately free cash flow and value accretive inclusive of equity raising3 FINANCIALS 62.0¢ 2.0% $500M FY2
Slide 7: Highlights: Operations, Development and Delivery
HIGHLIGHTS FOUR PROJECTS WESTCONNEX ROAD INJURY OPEN ACQUISITION CRASH INDEX to traffic (New M4 Tunnels, LEP, currently ahead of investment case trending downwards since OPERATIONS, GUN, ICB)1, a further three FY15 to 4.71 in FY192 DEVELOPMENT AND forecast to complete progressively by end of 2020 DE
Slide 8: Highlights: Customer and Community
HIGHLIGHTS FEE REDUCTION CORPORATE SUSTAINABILITY INITIATIVES REPORT LAUNCHED STRATEGY and process improvements applying integrated reporting revised with four themes for customers resulted in principles to show the holistic (People, Planet, Places and CUSTOMER AND $15 million in fees avoided in per
Slide 9: Group Strategy
GROUP STRATEGY Our purpose: To strengthen communities through transport What we focus on to realise our strategy: Our strategy: Provide sustainable transport solutions that offer choice, reliability, Stakeholder Optimal Delivery and Disciplined engagement networks operations investment safety, trans
Slide 10: Near-Term Priorities
NEAR-TERM PRIORITIES ENHANCE DELIVER MAXIMISE CUSTOMER AND COMMITTED PERFORMANCE OF COMMUNITY PROJECTS OPERATIONS OFFERINGS TRANSURBAN FY19 RESULTS | 7 AUGUST 2019 10
Slide 11: Progressively Delivering Projects
PROGRESSIVELY DELIVERING PROJECTS Rozelle Interchange (WCX Stage 3B)2 Concession expires 2060 Open 495 Express Lanes Northern Extension3 Concession expires 2087 Expected project completion1 M4-M5 Link (WCX Stage 3A) Concession expires 2060 Fredericksburg Extension Concession expires 2087 West Gate T
Slide 12: Four Projects Opened
FOUR PROJECTS OPENED New M4 Tunnels Logan Enhancement Project1 Gateway Upgrade North Inner City Bypass • First WestConnex project to • First project delivered under • All motorway lanes opened to • Project completed August reach completion post Queensland Government traffic in January 2019 2018 acqu
Slide 13: Project Delivery Status
PROJECT DELIVERY STATUS 7,000 Historical Future • Outstanding capex progressively Balance of proportional capex to be delivered ($m) 6,000 declining Capex / Enterprise Value • Three projects forecast to 5,000 2H15: 7.8% complete progressively by end 2H19: 9.2% of 2020 4,000 • Key milestones delivere
Slide 14: Market Updates
MARKET UPDATES WestConnex – St. Peters Interchange
Slide 15: Sydney
SYDNEY UNDERLYING ADT TOLL REVENUE GROWTH 10.4%1 EBITDA GROWTH 12.2%2 GROWTH 1.6%3 FY19 performance Operations, delivery and development Customer and community • Toll revenue growth of 10.4% inclusive of New M4 and • Eight of 27 road headers now tunnelling on • WestConnex Community Grants additional
Slide 16: WestConnex
WESTCONNEX • New M4 traffic currently ahead of investment case in the three weeks since opening1 • Workday trips have averaged2: ̵ New M4 – 169,000 thousand trips3 ̵ New M4 Tunnels – 82,000 thousand trips (includes trips using Parramatta Rd surface connection) • Since the tunnels have opened, driver
Slide 17: M5 West – Acquisition of Remaining Interests
M5 WEST – ACQUISITION OF REMAINING INTERESTS1 • Transaction is immediately free cash flow and value accretive2. Expected to be free cash flow M5 WEST AVERAGE DAILY accretive by approximately 3 cents per security (cps) in FY20 inclusive of equity raising, TRAFFIC ('000s) strengthening distribution fr
Slide 18: Sydney: NSW Infrastructure Project Updates
SYDNEY NSW infrastructure project updates • Planning and pre-construction work continuing for Sydney Gateway, Western Harbour Tunnel (WHT), Beaches Link and F6 Extension Stage 1 • Sydney Gateway EOI process commenced, with the NSW Government committing to delivering it as an untolled link • Planning
Slide 19: Melbourne
MELBOURNE UNDERLYING ADT TOLL REVENUE GROWTH 4.2% EBITDA GROWTH 4.0% GROWTH 3.1% FY19 performance Operations, delivery and development Customer and community • Large vehicle traffic growth of 5.5% outpacing car • WGTP TBMs both on site at the Northern Portal • Trip Compare online tool growth and set
Slide 20: Melbourne
MELBOURNE TRANSURBAN FY19 RESULTS | 7 AUGUST 2019 20
Slide 21: Brisbane
BRISBANE UNDERLYING ADT TOLL REVENUE GROWTH 2.3% EBITDA GROWTH 5.4% GROWTH 0.4% FY19 performance Operations, delivery and development Customer and community • ADT growth of 0.4% impacted by disruption from LEP, • LEP open to traffic with finishing works • Australian-first trial of motorcycle GUN and
Slide 22: Brisbane
BRISBANE TRANSURBAN FY19 RESULTS | 7 AUGUST 2019 22
Slide 23: North America
NORTH AMERICA1 ADT TOLL REVENUE GROWTH 45.0% UNDERLYING EBITDA GROWTH 61.1%2 GROWTH 2.4%3 FY19 performance Greater Washington Area Montreal • 19.1% toll revenue growth in the Greater • Financial close reached and major construction • A25 outperforming Washington Area commenced on Fredericksburg Exte
Slide 24: North America – Greater Washington Area
NORTH AMERICA – GREATER WASHINGTON AREA TRANSURBAN FY19 RESULTS | 7 AUGUST 2019 24
Slide 25: North America – Montreal
NORTH AMERICA – MONTREAL TRANSURBAN FY19 RESULTS | 7 AUGUST 2019 25
Slide 26: Portfolio Opportunities
PORTFOLIO OPPORTUNITIES Development opportunities Additional development – existing networks opportunities • Government-owned • Continued monitoring of WestConnex stake (49%) evolving Maryland Express Lanes program • M7 widening • Gateway Motorway widening • Engagement with new Quebec Government • L
Slide 27: Financial Results
FINANCIAL RESULTS Eastern Distributor
Slide 28: Statutory Results
STATUTORY RESULTS FY18 ($M) FY19 ($M) • $110 million increase driven by traffic and revenue growth across the existing Australian and North American networks Toll revenue 2,249 2,643 • $284 million contribution from A25 (acquired June 2018) and consolidation of M5 West from September 20182 • $109 mi
Slide 29: Proportional Results
PROPORTIONAL RESULTS FY18 ($M) FY19 ($M) % CHANGE • $125 million increase driven by traffic and revenue growth across the existing Australian and North American networks Toll revenue1 2,340 2,581 10.3% • $131 million increase from new assets and higher ownership in M5 West2 • ($15 million) fee reven
Slide 30: EBITDA Margins
EBITDA MARGINS1 FY17 FY18 FY19 • Margin growth across Sydney, Brisbane and North America Sydney2,3 80.3% 80.7% 82.0% • Melbourne margin impacted by reduction in fees due to customer initiatives and increased non-cash maintenance adjustments Melbourne 86.5% 88.2% 88.0% • North America margins influen
Slide 31: Cost Movement
COST MOVEMENT +9.7% +2.0% 658 • Underlying FY19 cost growth of 0.7% +0.7% excluding foreign 34 exchange impact • Non-cash maintenance adjustments of $12 0 12 million due to change in 612 19 (15) discount rates 604 8 600 • Reduction in strategic growth related costs following acquisition of WCX FY18
Slide 32: Free Cash Flow Movement
FREE CASH FLOW MOVEMENT +25.7% 1,577 1,527 +7.5% 98 67 110 144 12 1,306 5 21 1,285 151 1,215 FY18 free EBITDA Distributions Net finance Maintenance Working FY19 PABs FY19 free TQ capital NWRG FY19 free FY19 cash flow 100% non-100% costs 100% capital underlying premium cash flow release capital cash
Slide 33: Capital Summary
CAPITAL SUMMARY1 • Successfully raised $6.9 billion2 of proportional debt during FY19, further diversifying funding sources GROUP DEBT JUN 18 JUN 19 ̵ Capital markets debt issued at a weighted average maturity of Group debt3 $14,971m $19,394m 11 years and weighted average cost of 4.2% • Ongoing asse
Slide 34: Equity Raising Key Details
EQUITY RAISING KEY DETAILS Structure and size Fully underwritten ‘pro-rata’ institutional placement (Placement) to raise $500 million (1.3% of total securities outstanding) It is intended that eligible institutional security holders who bid for up to their ‘pro-rata’ share of new securities under th
Slide 35: Equity Raising Indicative Timetable
EQUITY RAISING INDICATIVE TIMETABLE1 Key dates Record date for SPP (7:00pm) 6 August 2019 Trading halt, announcement of FY19 results and Placement 7 August 2019 Placement bookbuild 7 August 2019 Announcement of the completion of the Placement 8 August 2019 Trading halt lifted 8 August 2019 Settlemen
Slide 36: Summary
SUMMARY CityLink – Bolte Bridge
Slide 37: Summary
SUMMARY FY20 distribution guidance of 62.0 cents per security, implied growth of 5.1% on FY19 distribution Near-term priorities Four projects open to traffic, a further three forecast to complete progressively by end of 2020 ENHANCE DELIVER MAXIMISE CUSTOMER Acquisition of remaining M5 West minority
Slide 38: Supplementary Information
SUPPLEMENTARY 1 INFORMATION DETAILED FINANCIALS 2 TREASURY 3 CORPORATE OVERVIEW 4 INTERNATIONAL OFFER RESTRICTIONS 5 KEY RISKS 6 GLOSSARY WestConnex – New M5 tunnels
Slide 39: Detailed Financials
DETAILED FINANCIALS Transurban office – Melbourne
Slide 40: Traffic and Revenue Performance
TRAFFIC AND REVENUE PERFORMANCE JUN 19 QUARTER1 FY191 LARGE LARGE PROPORTIONAL VEHICLE PROPORTIONAL VEHICLE TOLL REVENUE ADT CAR TRAFFIC TRAFFIC % TOLL REVENUE ADT CAR TRAFFIC TRAFFIC % % CHANGE % CHANGE % CHANGE CHANGE % CHANGE % CHANGE % CHANGE CHANGE Sydney2 11.6% 0.3% 0.9% (6.2%) 10.4% 1.6% 2.0%
Slide 41: Traffic and Revenue Data
TRAFFIC AND REVENUE DATA1 % LARGE JUN 18 JUN 19 VEHICLE ASSET QUARTER QUARTER % CHANGE TRAFFIC2 FY18 FY19 % CHANGE Sydney M2 Total Toll Revenue (M) $77 $78 1.4% N/A $301 $312 3.6% Average Daily Trips (‘000) 135 134 (0.2%) 7.9% 133 136 2.3% LCT Total Toll Revenue (M) $25 $25 0.9% N/A $100 $102 2.9% A
Slide 42: Traffic and Revenue Data
TRAFFIC AND REVENUE DATA1 % LARGE JUN 18 JUN 19 VEHICLE ASSET QUARTER QUARTER % CHANGE TRAFFIC2 FY18 FY19 % CHANGE Brisbane Gateway Motorway Total Toll Revenue (M) $55 $56 1.2% N/A $220 $224 2.0% Average Daily Trips (‘000) 117 118 0.7% 22.8% 117 118 0.8% Logan Motorway Total Toll Revenue (M) $46 $46
Slide 43: Proportional Toll Revenue by Asset
PROPORTIONAL TOLL REVENUE BY ASSET JUN 19 QUARTER ($M) FY19 ($M) OWNERSHIP 100% PROPORTIONAL 100% PROPORTIONAL M2 100% 78 78 312 312 LCT 100% 25 25 102 102 CCT 100% 17 17 69 69 ED 75.1% 38 29 152 114 M5 West1 65.38% 76 50 301 183 M7 50% 107 54 436 218 M42 25.5% 53 13 158 40 CityLink 100% 202 202 813
Slide 44: Statutory Results
STATUTORY RESULTS FY18 ($M) FY19 ($M) % CHANGE Toll revenue 2,249 2,643 17.5% Construction revenue 989 1,435 45.1% Other revenue 60 88 45.5% Total revenue 3,298 4,166 26.3% Employee benefit expense (200) (230) 15.0% Road operating costs (326) (373) 14.9% Construction costs (989) (1,435) 45.1% Transa
Slide 45: Reconciliation of Statutory EBITDA to Proportional EBITDA
RECONCILIATION OF STATUTORY EBITDA TO PROPORTIONAL EBITDA FY18 ($M) FY19 ($M) % CHANGE Statutory EBITDA 1,649 1,996 21.0% Less: EBITDA attributable to non-controlling interest – ED (27) (29) 5.8% Less: EBITDA attributable to non-controlling interest – TQ (166) (176) 5.2% Less: EBITDA attributable to
Slide 46: FY19 Proportional Result by Asset
FY19 PROPORTIONAL RESULT BY ASSET TOLL OTHER EBITDA (excluding NET FINANCE INCOME REVENUE REVENUE significant items) EBITDA D&A COST NPBT TAX NPAT OWNERSHIP ASSET $M $M $M $M $M $M $M $M $M 100% M2 312 2 262 262 (77) (36) 149 - 149 100% LCT 102 1 67 67 (21) (27) 19 (2) 17 100% CCT 69 1 45 45 (24) (1
Slide 47: FY18 Proportional Result by Asset
FY18 PROPORTIONAL RESULT BY ASSET TOLL OTHER EBITDA (excluding NET FINANCE INCOME REVENUE REVENUE significant items) EBITDA D&A COST NPBT TAX NPAT OWNERSHIP ASSET $M $M $M $M $M $M $M $M $M 100% M2 301 2 255 255 (74) (36) 145 9 154 100% LCT1 100 - 64 64 (21) (29) 14 (4) 10 100% CCT 67 - 44 44 (24) (
Slide 48: FY19 Net Finance Costs Paid
FY19 NET FINANCE COSTS PAID NON-CASH ITEMS STATUTORY NET DEBT LIABILITY & INTEREST INTEREST NET INTEREST PROPORTIONAL NET INTEREST FEES PROVISION CAPITALISATION2 OTHER3 ACCRUALS4 PAID INTEREST PAID CONTROLLED ENTITIES OWNERSHIP $M $M UNWIND1 $M $M $M $M $M M2 100% (36) 1 12 - - (1) (24) (24) LCT 100
Slide 49: FY18 Net Finance Costs Paid
FY18 NET FINANCE COSTS PAID1 NON-CASH ITEMS STATUTORY NET DEBT LIABILITY & INTEREST INTEREST NET INTEREST PROPORTIONAL NET INTEREST FEES PROVISION CAPITALISATION3 OTHER4 ACCRUALS5 PAID INTEREST PAID CONTROLLED ENTITIES OWNERSHIP $M $M UNWIND2 $M $M $M $M $M M2 100% (36) 1 11 - - - (24) (24) LCT 100%
Slide 50: Maintenance Provision
MAINTENANCE PROVISION1 MAINTENANCE MAINTENANCE 2,3 EXPENSE RECOGNISED CASH SPEND FY18 ($M) FY19 ($M) FY18 ($M) FY19 ($M) M2 (5) (7) (3) (8) LCT (6) (5) (4) (5) CCT (6) (6) (5) (4) ED (8) (6) (6) (8) M5 West (3) (5) (2) (1) M7 (11) (12) (29) (6) M4 - (4) - - CityLink (6) (9) (11) (12) Gateway Motorwa
Slide 51: Free Cash Calculation
FREE CASH CALCULATION FREE CASH CALCULATION SOURCE OF INFORMATION/EXPLANATION Cash flows from operating activities Statutory Transurban Holdings Limited operating cash flow (refer Group Statutory accounts) Add back transaction and integration costs related to Transaction and integration related cash
Slide 52: Free Cash Flow
FREE CASH FLOW RECONCILIATION OF STATUTORY CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FY18 ($M) FY19 ($M) FREE CASH FLOW FY18 FY19 % CHANGE Cash flows from operating activities 1,053 1,197 Free cash $1,215M $1,527M 25.7% Add back transaction and integration costs related to 20 25 Weighted aver
Slide 53: Reconciliation of Proportional EBITDA to Free Cash
RECONCILIATION OF PROPORTIONAL EBITDA TO FREE CASH FY19 ($M) Comments Proportional EBITDA 1,696 Refer to slide 29 for further detail Significant items 320 Include stamp duty on acquisitions and transaction and integration costs relating to acquisitions Proportional net finance (689) Refer to slide 4
Slide 54: Development Pipeline
DEVELOPMENT PIPELINE FY191 FY20 FY21 FY22 FY23 FY24 COMMITTED PROJECTS/ PROJECTS UNDER $120M LOGAN ENHANCEMENT PROJECT Brisbane ($320 million)4 CONSTRUCTION2 USD150M 395 EXPRESS LANES GWA (USD475 million) $320M NORTHCONNEX Sydney ($1.3 billion) NEW M4 TUNNELS (WCX STAGE 1B) Sydney – COMPLETE $0.8 $3
Slide 55: Treasury
TREASURY Transurban office – Melbourne
Slide 56: Funding Structure at 30 June 2019
FUNDING STRUCTURE AT Transurban3 30 JUNE 2019 BBB+/Baa1/A- Non-Recourse Corporate Sydney Brisbane North America Working EMTN capital2 €2.7B $1.7B 495 Express 95 Express M2 LCT CCT ED3 M73 M5 West WCX TQ3 A25 Lanes Lanes3 Letter of Maple Credit CAD0.7B USD0.2B -/A3/A- -/A3/A- BBB/-/- BBB/-/BBB $0.8B
Slide 57: Group Debt at 30 June 2019
GROUP DEBT AT 30 JUNE 2019 FACILITY FACILITY FACILITY TOTAL FACILITY TOTAL DRAWN PROPORTIONAL STATUTORY (USD M)1 (CAD M)1 ($M)1 ($M)2 ($M) 2 DRAWN ($M) 2 DRAWN ($M)3 CORPORATE DEBT2 Working capital facilities4 - - 1,650 1,650 - - - USPP 162 - 520 751 751 751 777 EMTN (CAD, NOK and EUR Notes) 305 650
Slide 58: Drawn Debt
DRAWN DEBT1 30 JUN 18 30 JUN 19 MOVEMENT AUD2 ($M) ($M) ($M) EXPLANATION Corporate 4,613 5,094 481 Issuance of $968 million EMTN less maturity of $254 million US PP and $233 million Maple note Issued proportionally $1,020 million of bank debt at M4. Acquired and drawn proportionally $333 million in
Slide 59: Key Debt Metrics
KEY DEBT METRICS 30 JUNE 2018 30 JUNE 2019 TRANSURBAN NON- TRANSURBAN NON- GROUP CORPORATE RECOURSE GROUP CORPORATE RECOURSE Weighted average maturity (years)1,2 8.6 years 5.9 years 10.5 years3 8.3 years 6.4 years 9.5 years4 Weighted average cost of AUD debt1,5 4.9% 5.5% 4.5% 4.6% 5.0% 4.3% Weighted
Slide 60: Extension of Group Debt Maturity Profile
EXTENSION OF GROUP DEBT MATURITY PROFILE June 2018 maturity profile1,2 10,000 Existing debt refinanced 8,000 during FY19 $ MILLION 6,000 4,000 2,000 - FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 - 29 FY30 - 34 FY35+ June 2019 maturity profile1,2 10,000 New debt raised during 8,000 FY19 $ MILLION 6,000 4
Slide 61: Corporate Debt Maturities at June 2019
CORPORATE DEBT MATURITIES AT 30 JUNE 2019 Working capital facilities USPP EMTN 144A Letters of credit facilities 2,000 1,800 1,600 150 1,400 1,200 $ MILLION 782 1,000 833 1,676 800 214 600 206 231 733 461 915 866 400 833 706 200 360 375 219 140 94 - FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
Slide 62: Non-Recourse Debt Maturities at June 2019
NON-RECOURSE DEBT MATURITIES AT 30 JUNE 2019 TQ ED M2 M5 M7 LCT CCT WCX M4 WCX M5 WCX M4-M5 Link 495 95 A25 4,500 4,000 315 156 3,500 3,000 $ MILLION 626 2,500 2,784 2,000 2,000 1,500 2,000 1,500 49 200 40 1,000 100 345 417 278 600 98 535 295 427 80 500 160 90 408 400 60 947 350 87 752 166 571 432 6
Slide 63: Hedging Profile
HEDGING PROFILE TRANSURBAN INTEREST RATE HEDGING PROFILE1 • 100.0% of debt is interest rate 30,000 hedged as at 30 June 2019 North America Sydney Brisbane Corporate Fixed amount • Hedge tenor is matched to the tenor of the debt on 100.0% of 25,000 drawn debt2 • 97.3% of debt is currency 20,000 hedge
Slide 64: Diversified Funding Sources
DIVERSIFIED FUNDING SOURCES Debt funding activities JUN 19 GROUP DEBT2 BANK DEBT Major debt issuances1 during FY19: AMTN • $968 million EUR Notes at Corporate AUD PRIVATE PLACEMENT • $875 million TQ USPP Notes • $615 million M7 USPP Notes CAD NOTES • CAD650 million CAD Notes at Corporate EUR NOTES •
Slide 65: Corporate Overview
CORPORATE OVERVIEW WestConnex community day
Slide 66: Summarised Group Structure
SUMMARISED GROUP STRUCTURE TRANSURBAN HOLDINGS LIMITED TRANSURBAN HOLDING TRUST TRANSURBAN INTERNATIONAL LIMITED CORPORATE ENTITIES ROAD/OPERATING ENTITIES OTHER ENTITIES ROAD/OPERATING ENTITIES CORPORATE ENTITIES Including: Companies operating and maintaining roads Trusts holding asset and financin
Slide 67: Asset Portfolio at 30 June 2019
ASSET PORTFOLIO AT 30 JUNE 2019 MELBOURNE SYDNEY OVERVIEW CITYLINK M5 WEST2 M2 M4 ED M7 LCT CCT Opening date Dec 2000 Aug 1992 May 1997 May 1992 Dec 1999 Dec 2005 Mar 2007 Aug 2005 Remaining concession period1 26 years 7 years 29 years 42 years 29 years 29 years 29 years 16 years Concession end date
Slide 68: Asset Portfolio at 30 June 2019
ASSET PORTFOLIO AT 30 JUNE 2019 BRISBANE NORTH AMERICA GATEWAY LOGAN GO BETWEEN LEGACY AIRPORTLINK 495 EXPRESS 95 EXPRESS OVERVIEW CLEM7 A257 MOTORWAY MOTORWAY BRIDGE WAY M7 LANES5 LANES6 Opening date Dec 1986 Dec 1988 Mar 2010 Jul 2010 Jun 2015 Jul 2012 Nov 2012 Dec 2014 May 2011 Remaining concessi
Slide 69: Future Concession Assets
FUTURE CONCESSION ASSETS1 SYDNEY MELBOURNE ROZELLE OVERVIEW NORTHCONNEX M5 WEST2 NEW M53 M5 EAST M4-M5 LINK WEST GATE TUNNEL INTERCHANGE Concession end date Jun 2048 Dec 2060 Dec 2060 Dec 2060 Dec 2060 Dec 2060 Jan 2045 PHYSICAL DETAILS Length – total 9 km 22 km 11 km 10 km 7.5 km 5 km6 17 km Length
Slide 70: Tolling Escalation
TOLLING ESCALATION MOTORWAY ESCALATION MOTORWAY ESCALATION M2 Tolls escalate quarterly by the greater of quarterly CPI or 1% West Gate Tolls escalate quarterly by an equivalent of 4.25% per annum from construction Tunnel1 completion to 30 June 2029 and quarterly CPI thereafter Car tolls escalate qua
Slide 71: Health, Safety and Environment
HEALTH, SAFETY AND ENVIRONMENT • Leadership development emphasis with FY19 safety performance1,2 Transurban RICI3 an initial focus on the HSE operating model and culture • Road injury crash index (RICI) finished • Inclusion of a proactive People Leader above target at 4.71 for FY19 but trending HSE
Slide 72: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS NorthConnex
Slide 73: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of new stapled securities (“New Securities”) of Transurban in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Securities may not be offered or so
Slide 74: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS The following is a summary of the statutory rights of rescission or to damages, or both, available to purchasers in Ontario. In Ontario, every purchaser of the New Securities purchased pursuant to this document (other than (a) a "Canadian financial institution" or a
Slide 75: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS An offer to the public of New Securities has not been made, and may not be made, in a Relevant Member State except pursuant to one of the following exemptions under the Prospectus Directive as implemented in the Relevant Member State: • to any legal entity that is au
Slide 76: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS IRELAND The information in this document does not constitute a prospectus under any Irish laws or regulations and this document has not been filed with or approved by any Irish regulatory authority as the information has not been prepared in the context of a public o
Slide 77: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS NEW ZEALAND This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (New Zealand) (the "FMC Act"). The New Securities are not being offered or sold in New Zealand or allotted w
Slide 78: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS SWITZERLAND The New Securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering material relating to the
Slide 79: Key Risks
KEY RISKS WestConnex – New M4 Tunnels
Slide 80: Key Risks
KEY RISKS 1. BUSINESS RISKS 1.1 Transurban’s concession agreements have finite lives Transurban’s business is dependent on concession agreements that have been granted to members of the Transurban group, or entities in which Transurban has an interest, to operate various toll roads in Australia and
Slide 81: Key Risks
KEY RISKS j) Transport, environmental and corporate regulation and policy, including the impact of carbon reduction programs, congestion taxes on urban travel, other measures to restrict motor vehicle use and government transport and urban management policies and strategies; k) Weather conditions, f
Slide 82: Key Risks
KEY RISKS 1.4 Restriction on toll price Most of Transurban’s concession agreements contain mechanisms that regulate the tolls that can be charged for using the relevant toll road. The mechanism used generally provides for increases in tolls on a quarterly or annual basis by reference to inflation, m
Slide 83: Key Risks
KEY RISKS Additionally, in negotiations with the relevant governmental entity to undertake improvement projects on an existing toll road, or to develop new toll roads, Transurban may agree to vary or waive certain benefits under an existing concession agreement, including waiving rights to receive c
Slide 84: Key Risks
KEY RISKS 1.8 Relationship with government Transurban’s relationship with government entities is key to ensuring the continuity of its existing concession agreements and future opportunities for new projects and improvements or growth of its toll roads. If Transurban is prevented from exercising its
Slide 85: Key Risks
KEY RISKS 1.10 Reliance on key contractors/counterparty risks Transurban may engage third party contractors and counterparties, including construction contractors, to carry out development and construction activities and to provide certain systems and services, including those relating to tolling, c
Slide 86: Key Risks
KEY RISKS 1.12 Risks in relation to current and future development projects Transurban may not be able to implement current and future development projects in the manner or within the timeframe and budget expected. Additionally, such current and future development projects may not deliver the return
Slide 87: Key Risks
KEY RISKS The success of any such acquisitions or developments depends on a variety of factors including that there can be no assurance that such acquisitions or developments would be available, successful or generate the anticipated project cash flows and returns, benefits, synergies and efficienci
Slide 88: Key Risks
KEY RISKS Transurban’s ability to continue to improve revenue generation from its toll roads and provide key services to its customers depends on its capacity to develop and manage new technology systems and platforms. In some cases, Transurban partners with technology providers to develop and imple
Slide 89: Key Risks
KEY RISKS Financing arrangements typically require Transurban or a relevant concessionaire to comply with certain obligations and undertakings, including maintaining security arrangements for the benefit of lenders, and in some instances the meeting of certain financial covenants. If a material obli
Slide 90: Key Risks
KEY RISKS To the extent that Transurban has unhedged investments in assets outside of Australia, movements in currency exchange rates have the potential to reduce the capital value of its investments and cash returns from investments. 1.20 Payment of distributions Future payment of distributions to
Slide 91: Key Risks
KEY RISKS Transurban operates critical road infrastructure assets in and around high-density population areas in Australia and North America that could be targeted by terrorist attacks or threatened with terrorist attacks. Terrorist attacks or threats of terrorist attacks on Transurban’s toll road a
Slide 92: Key Risks
KEY RISKS 2. M5 ACQUISITION 2.1 Completion risk Completion of the M5 West acquisition is conditional on Transurban obtaining consent from RMS and Interlink Roads Pty Ltd obtaining the approval from the M5 West lenders under its existing debt facilities. If any of the conditions are not satisfied or
Slide 93: Key Risks
KEY RISKS 3. PLACEMENT, SPP AND GENERAL RISKS 3.1 Allocation of new securities under the Placement and SPP It is intended that eligible institutional security holders who bid for up to their ‘pro-rata’ share of new securities under the Placement will be allocated their full bid, on a best endeavours
Slide 94: Key Risks
KEY RISKS c) Transurban is suspended from the official list of the ASX or its stapled securities are delisted or suspended from quotation (other than in connection with the Placement; d) Transurban alters its capital structure without the consent of the underwriters; e) Transurban or a material subs
Slide 95: Key Risks
KEY RISKS 3.3 Market generally The price of Transurban securities on the ASX may rise or fall due to numerous factors, including: a) Australian and international general economic conditions, including inflation rates, the level of economic activity, interest rates and currency exchange rates; b) ten
Slide 96: Key Risks
KEY RISKS 3.6 Tax developments The Transurban group is structured as a stapled group comprising two companies (Transurban Holdings Limited and Transurban International Limited) and a trust (Transurban Holding Trust), which trade as a single stapled security. Australian taxation laws apply to each of
Slide 97: Key Risks
KEY RISKS Adverse tax developments, including the factors described above, could materially increase Transurban’s tax liabilities or the timing of its tax payments, which could have a material adverse effect on its business, cash flow, financial condition and results of operations. As noted above, T
Slide 98: Key Risks
KEY RISKS Transurban is also subject to the credit risk of its insurers and their continued ability to satisfy claims made by Transurban. Certain risks and liabilities, including potential losses of a catastrophic nature, such as those arising from floods, earthquakes, terrorism or other similar cat
Slide 99: Glossary
GLOSSARY West Gate Tunnel – TBM cutter head
Slide 100: Glossary
GLOSSARY TERM DEFINITION TERM DEFINITION 95 95 Express Lanes EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation 395 395 Express Lanes ED Eastern Distributor 495 495 Express Lanes EMTN Euro Medium Term Note EOI Expressions of interest 1H/2H First or second half of a financial year EU
Slide 101: Glossary
GLOSSARY TERM DEFINITION TERM DEFINITION M4-M5 M4-M5 Link SLN Shareholder Loan Note. An interest bearing shareholder loan. Currently Transurban has SLNs on M5 WEST M5 West motorway TQ and STP M7 Westlink M7 SPP Security Purchase Plan MTQ Ministère des Transports du Quebec STATE WORKS The capital con
Transurban Group — Investor Presentation (August 2019) on 6ix