Transurban Group Ltd. · ASX:TCL
Transurban — Merger or Acquisition (April 2014)
78 slides from Transurban's merger presentation, Apr 24, 2014
Slide 1: Queensland Motorways Acquisition and Equity Raising
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA For personal use only 24 APRIL 2014 QUEENSLAND MOTORWAYS ACQUISITION AND EQUITY RAISING
Slide 2: Disclaimer
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA DISCLAIMER For personal use only This investor presentation (“Presentation”) has been prepared by Transurban Holdings Limited (ACN 098 143 429) (“THL”), Transurban International Limited (ACN 121 746 825) (“TIL”) an
Slide 3: Disclaimer
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA DISCLAIMER For personal use only PAST PERFORMANCE Past performance and pro forma historical financial information in this Presentation is given for illustrative purposes only and should not be relied on and is not
Slide 4: Contents
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA CONTENTS For personal use only 1 SUMMARY OF TRANSACTION 2 QUEENSLAND MOTORWAYS ACQUISITION 3 OPERATING MODEL 4 KEY FINANCIALS 5 OFFER DETAILS 6 APPENDICES 4
Slide 5: Summary of Transaction
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA For personal use only SUMMARY OF TRANSACTION
Slide 6: Transaction Summary
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA TRANSACTION SUMMARY For personal use only Transurban, in conjunction with AustralianSuper and Tawreed TRANSURBAN CONSORTIUM Investments Limited, a wholly owned subsidiary of Abu Dhabi Investment Authority, has re
Slide 7: Aligned with Strategy
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA ALIGNED WITH STRATEGY For personal use only ROAD LEVERAGE UTILISING CLEAR STRATEGY INFRASTRUCTURE NETWORK DISTRIBUTION PARTNER OF CORE MARKET POSITIONS GROWTH CHOICE CAPABILITIES DEFINITION 35 cents guidance per
Slide 8: Strategic Rationale
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA STRATEGIC RATIONALE For personal use only Established toll road network with significant scale and strong growth outlook SIGNIFICANT QM average work day transactions 328,9001 – accounts for 23.0% of Transurban NE
Slide 9: Distribution Growth
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA DISTRIBUTION GROWTH For personal use only Distribution growth expected post acquisition of Queensland Motorways and remains key corporate objective FY14 distribution guidance of 35 cents per security maintained –
Slide 10: Equity Raising
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA EQUITY RAISING For personal use only Gross proceeds of $2.74Bn to be raised $2.34Bn to be raised by way of a fully underwritten accelerated renounceable entitlement offer – Entitlement Offer ratio of 10 New Secur
Slide 11: Funding Sources and Uses
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA FUNDING SOURCES AND USES For personal use only ACQUISITION FUNDING ($Bn) SOURCES USES Transurban equity – 62.5% 2.718 QM acquisition price1 6.673 Consortium stamp duty and transaction AustralianSuper equity – 25% 1
Slide 12: Portfolio Development Activities
DRAFT 24/04/2014 5:37 AM– NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA PORTFOLIO DEVELOPMENT ACTIVITIES For personal use only BALANCE SHEET CONTINUES TO PROVIDE ABILITY TO FUND KNOWN PROJECTS FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 CITYLINK EAST-WEST INTEGRATION2 NORTHCONNEX QM AC
Slide 13: Queensland Motorways Overview
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA QUEENSLAND MOTORWAYS OVERVIEW For personal use only CONCESSIONS IN QUEENSLAND MOTORWAYS PORTFOLIO LOGAN & GATEWAY GO BETWEEN BRIDGE Length 61.8 km Length 0.3 km AADT (FY13) 253,168 AADT (FY13) 11,668 Concession end
Slide 14: Transurban Network Positions
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA TRANSURBAN NETWORK POSITIONS For personal use only FY13 VIC NSW USA QLD Number of 1 53 34 4 concessions Average daily 779,756 476,942 38,271 290,730 transactions % of Transurban proportional toll 40.9% 39.6% 1.3% 1
Slide 15: Network Development Activities
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA NETWORK DEVELOPMENT ACTIVITIES For personal use only NSW NorthConnex – 9km tunnel motorway linking the M1 Pacific Motorway and Hills M2 - targeted financial close late calendar 2014 M5 West widening – 70%1 comp
Slide 16: Queensland Motorways Acquisition
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA For personal use only QUEENSLAND MOTORWAYS ACQUISITION
Slide 17: Summary
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA SUMMARY For personal use only ✓ \ Extensive due diligence underpins the Queensland Motorways acquisition ✓ Enhances and further diversifies Transurban portfolio ✓ Urban network with extensive operating history and
Slide 18: Detailed Due Diligence from 2013
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA DETAILED DUE DILIGENCE FROM 2013 For personal use only Traffic modelling and network planning – Detailed strategic Brisbane network model (includes long-term forecast for employment, population and key demographi
Slide 19: High Quality Network
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA HIGH QUALITY NETWORK For personal use only BRISBANE DEMOGRAPHICS QM PORTFOLIO Australia’s third largest city Strategic network Population growth forecast higher Inflation-linked pricing than Australian aver
Slide 20: Market Characteristics
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA MARKET CHARACTERISTICS For personal use only INNER CITY Queensland Motorways’ NORTHEAST A3 toll road CLEM7 & GBB Other toll road Gateway Motorway Key bypass of CBD Toll Points Gateway Bridge Primary river cross
Slide 21: Attractive Demographics and Growth
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA ATTRACTIVE DEMOGRAPHICS AND GROWTH For personal use only CPI 2003-20131 Brisbane 3.0% Sydney 2.6% Melbourne 2.7% ATTRACTIVE TRAFFIC GROWTH (2003-2013 CAGR) 5.7 3.3 3.2 3.0 2.4 Gateway / CityLink M5 ED M22 Logan Not
Slide 22: Established History of Use
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA ESTABLISHED HISTORY OF USE For personal use only LOGAN / GATEWAY TRAFFIC & REVENUE PROFILE FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 $M 31% GATEWAY CAR TOLL PRICE INCREASE GATEWAY UPGRADE PROJECT GLOBAL FIN
Slide 23: Extended Concession Life
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA EXTENDED CONCESSION LIFE For personal use only Main QM assets have significant operating history on which to base forecasts QM assets have significantly longer concession profile Gateway / Logan account for 9
Slide 24: Broader Network Development Plans
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA BROADER NETWORK DEVELOPMENT PLANS For personal use only POTENTIAL NETWORK ENHANCEMENTS REFERENCE Bruce PROJECTS ON QUEENSLAND GOVERNMENT’S AGENDA1,2 Highway QM toll road M3 7 1 Legacy Way – (owned by QM) new 4-lane
Slide 25: Operating Model
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA For personal use only OPERATING MODEL
Slide 26: Operating Model
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA OPERATING MODEL For personal use only Transurban will be responsible for all aspects of PROPOSED OPERATING MODEL management and operations of QM TRANSURBAN / AUSSUPER / TAWREED – QM Board to comprise representati
Slide 27: Scope for Operating Efficiencies
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA SCOPE FOR OPERATING EFFICIENCIES For personal use only TOLLING & Call centre operations Current call handling times1: CUSTOMER - Transurban average 234 seconds MANAGEMENT Credit and billing functions - QM ave
Slide 28: Established Operational Benchmarks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA ESTABLISHED OPERATIONAL BENCHMARKS For personal use only Most recent integration example Pre-acquisition Lane Cove Tunnel (LCT) EBITDA margin was considerably lower than Transurban’s other assets (42.3% compared
Slide 29: Sustainability
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA SUSTAINABILITY For personal use only Opportunity to apply Transurban’s sustainability principles BE GOOD NEIGHBOURS USE LESS THINK LONG TERM Extend Transurban Apply Transurban’s ‘10 in 10’ Embed best practice
Slide 30: Key Financials
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA For personal use only KEY FINANCIALS
Slide 31: Queensland Motorways – Pro Forma Summary
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA QUEENSLAND MOTORWAYS – PRO FORMA SUMMARY For personal use only STATUTORY PROPORTIONAL H1 FY14 FY13 H1 FY14 FY13 TOLL REVENUE Queensland Motorways 187.7 353.0 117.3 220.6 Logan & Gateway 161.5 302.6 100.9 189.1 The
Slide 32: Statutory Results – Pro Forma
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA STATUTORY RESULTS – PRO FORMA For personal use only H1 FY14 ($M) FY13 ($M) TCL PRO FORMA 1 TCL PRO FORMA 1 Toll revenue 450.6 638.3 801.2 1,154.2 Fee and other revenue 47.0 63.1 85.5 120.2 Construction revenue 53.7
Slide 33: Proportional EBITDA – Pro Forma
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA PROPORTIONAL EBITDA – PRO FORMA For personal use only H1 FY14 ($M) FY13 ($M) PROPORTIONAL EBITDA TCL PRO FORMA 1 TCL PRO FORMA 1 Toll revenue 556.2 673.5 991.4 1,212.0 Fee revenue 45.5 55.6 75.8 97.5 Other revenue
Slide 34: Free Cash Flow – Pro Forma
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA FREE CASH FLOW – PRO FORMA For personal use only FREE CASH FLOW H1 FY14 FY13 TCL PRO FORMA TCL PRO FORMA Free cash ($M) 240.0 277.1 443.3 528.3 Underlying free cash per security (cents) – weighted average 16.2 14.2
Slide 35: Consolidated Balance Sheet – Pro Forma
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA CONSOLIDATED BALANCE SHEET – PRO FORMA For personal use only AS AT 31 DEC 20131,2 ($M) TRANSURBAN PRO FORMA ASSETS Cash and cash equivalents 457.7 441.2 Intangible assets 8,017.1 15,162.5 Property plant and equipme
Slide 36: Proportional Drawn Debt and Gearing – Pro Forma
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA PROPORTIONAL DRAWN DEBT AND GEARING – PRO FORMA For personal use only AS AT 31 DECEMBER 2013 ($M) TRANSURBAN CALCULATED ON DRAWN DEBT REPORTED QM PRO FORMA Proportional total debt1 8,317.6 1,712.8 10,030.4 Gearing2
Slide 37: Offer Details
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA For personal use only OFFER DETAILS
Slide 38: Offer Details
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA OFFER DETAILS For personal use only Fully underwritten accelerated renounceable Entitlement Offer to raise gross proceeds of $2.34Bn 10 for 43 Entitlement Offer Offer price of $6.75 per New Security – 7.2% di
Slide 39: Offer Timetable
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA OFFER TIMETABLE For personal use only DATES AND TIMES MAY BE SUBJECT TO CHANGE WITHOUT NOTICE Institutional Entitlement Offer opens 24 April 2014 Institutional Entitlement Offer closes 29 April 2014 Institutional B
Slide 40: Key Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA KEY RISKS For personal use only This section discusses some of the key risks associated with any investment in Transurban which may affect the value of Transurban securities. The risks set out below are not liste
Slide 41: Business Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA BUSINESS RISKS For personal use only 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
Slide 42: Business Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA BUSINESS RISKS For personal use only Revenue collection Transurban collects revenue using a variety of tolling systems and is reliant on the reliable and efficient operation and maintenance of those tolling syste
Slide 43: Business Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA BUSINESS RISKS For personal use only Loss of a toll road concession If Transurban breaches a material obligation under a Concession Agreement and fails to remedy the breach, this could lead to the early terminati
Slide 44: Business Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA BUSINESS RISKS For personal use only Joint venture risk Transurban holds a number of interests in its companies and affiliates, including QM, jointly with joint venture partners through equity or co-operative joi
Slide 45: Business Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA BUSINESS RISKS For personal use only Refinancing risks and use of leverage Transurban has existing debt financing arrangements and credit facilities from bank, debt capital market and government sources. Transurb
Slide 46: Business Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA BUSINESS RISKS For personal use only Fraudulent behaviour of employees Transurban is exposed to risks associated with fraudulent behaviour of its officers, employees, consultants, contractors and contractual coun
Slide 47: QM Acquisition Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA QM ACQUISITION RISKS For personal use only Completion risks Completion of the acquisition of QM (“QM Acquisition”) is conditional on certain matters including DTMR and BCC consent. If any of the conditions are no
Slide 48: QM Acquisition Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA QM ACQUISITION RISKS For personal use only Analysis of QM Acquisition opportunity Transurban has undertaken financial, operational, asset condition, business and other analysis in respect of QM in order to determ
Slide 49: Offer and General Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA OFFER AND GENERAL RISKS For personal use only Underwriting risk Transurban has entered into an underwriting agreement under which two underwriters have agreed to fully underwrite the Entitlement Offer, subject to
Slide 50: Offer and General Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA OFFER AND GENERAL RISKS For personal use only Renouncement risk If you are an eligible security holder, and renounce your entitlement under the Entitlement Offer, there is no guarantee that any value will be rece
Slide 51: Offer and General Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA OFFER AND GENERAL RISKS For personal use only Changes to accounting standards Changes to Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Is
Slide 52: Offer and General Risks
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA OFFER AND GENERAL RISKS For personal use only Other external factors Other external factors may impact Transurban‘s performance, including changes or disruptions to political, regulatory, legal or economic condit
Slide 53: International Selling Restrictions
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA INTERNATIONAL SELLING RESTRICTIONS For personal use only New Zealand This document nor any of the accompanying documents are an investment statement or prospectus under New Zealand law and have not been registered,
Slide 54: International Selling Restrictions
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA INTERNATIONAL SELLING RESTRICTIONS For personal use only The distribution of this document and any accompanying document in the United Kingdom is made to or directed only at (i) persons who are investment professio
Slide 55: International Selling Restrictions
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA INTERNATIONAL SELLING RESTRICTIONS For personal use only (ii) where no consideration is or will be given for the transfer; (iii) where the transfer is by operation of law; (iv) as specified in Section 276(7) of the
Slide 56: International Selling Restrictions
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA INTERNATIONAL SELLING RESTRICTIONS For personal use only United Arab Emirates Pursuant to the Securities and Commodities Authority’s (“SCA”) Board of Directors Resolution No.37 of 2012 Concerning the Regulations as
Slide 57: International Selling Restrictions
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA INTERNATIONAL SELLING RESTRICTIONS For personal use only The documentation of Transurban has not been and will not be approved, and may not be able to be approved, by the Swiss Financial Market Supervisory Authorit
Slide 58: Appendix A: Queensland Motorways Asset Overview (100%)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA For personal use only APPENDIX A QUEENSLAND MOTORWAYS ASSET OVERVIEW (100%)
Slide 59: Queensland Motorways Overview – Asset Overview
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA QUEENSLAND MOTORWAYS OVERVIEW For personal use only ASSET OVERVIEW ASSET GATEWAY LOGAN CLEM7 GO BETWEEN BRIDGE LEGACY WAY5 LENGTH (KM) 23.1 38.7¹ 6.8 0.3 4.6 CARRIAGEWAY 6, 8 and 10 lanes (various) 4 lanes 4 lanes
Slide 60: Logan / Gateway Asset Highlights
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA LOGAN / GATEWAY For personal use only ASSET HIGHLIGHTS ASSET LOCATION STRATEGIC Essential components of the south-east Queensland M3 QM toll road M1 CONTEXT transport network linking Australia TradeCoast precinct
Slide 61: Logan / Gateway Historical Traffic Profile
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA LOGAN / GATEWAY For personal use only HISTORICAL TRAFFIC PROFILE 1 1995-2010 CAGR¹: 6.6% 2010-2013 CAGR¹: 5.4% Traffic CAGR Vehicles per FY Gateway Motorway Logan Motorway & Gateway Extension Traffic growth even wi
Slide 62: CLEM7 Asset Highlights
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA CLEM7 For personal use only ASSET HIGHLIGHTS ASSET LOCATION STRATEGIC Acquired by QM in December 2013 for $618M (gross), M3 QM toll road M1 CONTEXT having originally cost $2.8Bn to build Allows motorists to byp
Slide 63: CLEM7 Historical Traffic Profile
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA CLEM7 For personal use only HISTORICAL TRAFFIC PROFILE Post Post the the opening opening of AirportLink ADT of AirportlinkM7, ADT increased increased despite even with tolltoll increase increase 64.7 Traffic drop f
Slide 64: Go Between Bridge Asset Highlights
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA GO BETWEEN BRIDGE For personal use only ASSET HIGHLIGHTS ASSET LOCATION STRATEGIC Four-lane bridge, 300m bridge, providing an alternative to QM toll road M3 M1 CONTEXT the William Jolly Bridge Links to some of
Slide 65: Legacy Way Asset Highlights
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA LEGACY WAY For personal use only ASSET HIGHLIGHTS ASSET LOCATION STRATEGIC Currently under construction with tolling and operations QM toll road M3 M1 CONTEXT expected to commence in June 2015 Connects the West
Slide 66: Appendix B: Financial Details
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA For personal use only APPENDIX B FINANCIAL DETAILS
Slide 67: Financial Information – Basis of Preparation
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA FINANCIAL INFORMATION For personal use only Basis of Preparation The financial information included in this Presentation includes pro forma adjustments. The pro forma financial information is based on an aggregatio
Slide 68: Comparable Transactions
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA COMPARABLE TRANSACTIONS For personal use only SELECTED COMPARABLE TRANSACTIONS (EV / HISTORICAL EBITDA) Transurban investment criteria considers REMAINING a variety of metrics around discounted CONCESSION LIFE3 c
Slide 69: Balance Sheet – Transurban and QM Pro Forma
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA BALANCE SHEET TRANSURBAN AND QM PRO FORMA AT 31 DECEMBER 2013 For personal use only AS AT 31 DECEMBER 2013 ($M) FAIR VALUE DEBT / EQUITY TRANSURBAN QM PRO FORMA ADJUSTMENTS FUNDING1 ASSETS Cash and cash equivalents
Slide 70: Statutory Profit and Loss H1 FY14
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA STATUTORY PROFIT AND LOSS TRANSURBAN AND QM PRO FORMA INCOME STATEMENT H1 FY14 For personal use only HALF YEAR ENDING 31 DECEMBER 2013 ($M) TRANSURBAN QM ADJUSTMENTS PRO FORMA Toll revenue 450.6 187.7 – 638.3 Fee a
Slide 71: Statutory Profit and Loss FY13
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA STATUTORY PROFIT AND LOSS TRANSURBAN AND QM PRO FORMA INCOME STATEMENT FY13 For personal use only YEAR ENDING 30 JUNE 2013 ($M) TRANSURBAN QM ADJUSTMENTS2 PRO FORMA Toll revenue 801.2 353.0 – 1,154.2 Fee and other
Slide 72: Statutory EBITDA to Proportional EBITDA
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA STATUTORY EBITDA TO PROPORTIONAL EBITDA For personal use only HALF YEAR ENDING YEAR ENDING 31 DECEMBER 2013 30 JUNE 2013 ($M) TCL statutory EBITDA 381.1 676.2 Less: EBITDA attributable to non-controlling interest (
Slide 73: Proportional Profit and Loss H1 FY14
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA PROPORTIONAL PROFIT AND LOSS TRANSURBAN AND QM PRO FORMA INCOME STATEMENT H1 FY14 For personal use only HALF YEAR ENDING 31 DECEMBER 2013 ($M) TRANSURBAN1 QM ADJUSTMENTS2 PRO FORMA Toll revenue 556.2 117.3 - 673.5
Slide 74: Proportional Profit and Loss FY13
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA PROPORTIONAL PROFIT AND LOSS TRANSURBAN AND QM PRO FORMA INCOME STATEMENT FY13 For personal use only YEAR ENDING 30 JUNE 2013 ($M) TRANSURBAN1 QM ADJUSTMENTS2 PRO FORMA Toll revenue 991.4 220.6 - 1,212.0 Fee revenu
Slide 75: Free Cash Flow H1 FY14
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA FREE CASH FLOW TRANSURBAN AND QM PRO FORMA H1 FY14 For personal use only HALF YEAR ENDING 31 DECEMBER 2013 ($M) TRANSURBAN QM1 ADJUSTMENTS PRO FORMA Group operating cash flow 226.9 59.3 286.2 Adjusted for: M7 Term
Slide 76: Free Cash Flow FY13
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA FREE CASH FLOW TRANSURBAN AND QM PRO FORMA FY13 For personal use only YEAR ENDING 30 JUNE 2013 ($M) TRANSURBAN QM1 ADJUSTMENTS PRO FORMA Group operating cash flow 411.3 136.0 547.3 Adjusted for: M7 Term Loan Notes
Slide 77: Financial Information – Assumptions
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA FINANCIAL INFORMATION For personal use only Assumptions The statements on pages 7, 9 and 34 include re-affirmation of the Group’s distribution guidance for the year ending 30 June 2014 and guidance for the year end
Slide 78: Glossary
24/04/2014 12:03 PM AMNOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA GLOSSARY For personal use only TERM DEFINITION TERM DEFINITION AADT Annual Average Daily Traffic NSW New South Wales ADT Average Daily Traffic O&M Operations & Maintenance Australian Super Pty Ltd (ABN 94 006 457 9
Transurban Group — Merger or Acquisition (April 2014) on 6ix