Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — Investor Presentation (October 2013)
23 slides from Aurizon's investor presentation, Oct 29, 2013
Slide 1: ASX cover letter: Aurizon analyst and investor presentation
Dominic D Smith Senior Vice President & Company Secretary Aurizon Holdings Limited ABN 14 146 335 622 T +61 7 3019 9000 F +61 7 3019 2188 E CompanySecretary@aurizon.com.au W aurizon.com.au Level 17, 175 Eagle Street Brisbane QLD 4000 GPO Box 456 Brisbane QLD 4001 For personal use only ASX Market Ann
Slide 2: Aurizon's Iron Ore Business
For personal use only Aurizon’ss Iron Ore Business Aurizon October 2013
Slide 3: Important notice
Important notice For personal use only No Reliance on this document This document was prepared by Aurizon Holdings Limited (ACN 146 335 622) (referred to as “Aurizon” Aurizon which includes its related bodies corporate). corporate) Whilst Aurizon has endeavoured to ensure the accuracy of the informa
Slide 4: Introduction
For personal use only Introduction 3
Slide 5: Who we are
Who we are For personal use only Aurizon is a top-50 ASX-listed company offering rail and road- based freight transport and infrastructure infrastr ct re solutions sol tions across Australia The name Aurizon, is a combination of Australia and Horizon. It conveys the geographical scope of our exp
Slide 6: Key rail network & haulage corridors
Key rail network & haulage corridors For personal use only Aurizon’s Aurizon s national operating footprint There are three major j interstate rail Network Owners segments in Australia: 1. The east-west corridor from Sydney, Australian Rail Track through Melbourne, across to Adelaide Corporation (AR
Slide 7: Iron Ore Business
For personal use only Iron Ore Business
Slide 8: History of Iron Ore Business
History y of Iron Ore Business For personal use only 2006 June - Australian Railroad Group Group’s s (ARG) above rail operations outside of South Australia acquired by Queensland Rail (QR) ARG’s above rail operations hauled various bulk commodities including iron ore in Western Australia for Cli
Slide 9: Iron Ore operations snap shot
Iron Ore operations snap shot For personal use only Operates within ithin the Mid-West Mid West and Yilgarn corridors of Iron Ore tonnes hauled and NTKs Western Australia to the following three ports: Kwinana, Geraldton and Esperance 25 11 Below rail network infrastructure owned by Brookfield &
Slide 10: Iron Ore now making a meaningful profit contribution
Iron Ore now making a meaningful profit contribution For personal use only $m FY11 FY12 FY13 Revenue 130 197 357 Operating costs (101) (143) (223) EBITDA 29 54 134 EBITDA margin 22.7% 27.2% 37.5% Depreciation expense (14) (22) (37) EBIT 15 32 97 Operating ratio 88 5% 88.5% 83 8% 83.8% 72 8% 72.8% 9
Slide 11: Iron Ore metrics improving with volume ramp up
Iron Ore metrics improving with volume ramp up For personal use only FY11 FY12 FY13 Tonnes hauled (m) 11.5 13.6 24.7 NTK (bn) 52 5.2 67 6.7 10 3 10.3 Revenue/NTK ($/000 NTK) 24.7 29.4 34.7 Opex(1)/NTK ($/000 NTK) 21.9 24.6 25.2 1) Operating expenses plus depreciation and amortisation 10
Slide 12: Iron Ore market
Iron Ore market For personal use only Major Iron Ore haulers State/Region BHP Billiton WA – Pilbara1 Rio Tinto WA – Pilbara1 Fortescue Metals Group p WA – Pilbara1 Aurizon Yilgarn & Mid-West2 A i Aurizon’s ’ Customers C t St t State P d t Product P t Port Cliffs Asia Pacific Iron Ore WA Iron Ore Esp
Slide 13: Existing customer haulage contracts timeline
Existing g customer haulage g contracts timeline For personal use only Contract expiry date Existing Customer Haulage Contracts FY13 FY14 FY15 FY16 FY17 FY18 Mount Gibson - g Peak(1) Tallering Mount Gibson - Extension Hill Karara (Phase 1) Cliffs Mineral Resources Iron ore contracts have payment m
Slide 14: Mount Gibson summary
Mount Gibson summary For personal use only Mine(s) serviced Tallering Peak Extension Hill Haul length 103 km(1) 240 km(2) Contracted tonnes 3mtpa 3mtpa Port Geraldton Geraldton Narngulu & Narngulu & Facilities used Forrestfield Forrestfield Number of consists 2 2 2 locos 3 locos Consist design 60 wa
Slide 15: Karara summary
Karara summary For personal use only Mine(s) serviced Karara Haul length 270 km Contracted tonnes Up to 10mtpa Port Geraldton Facilities used Narngulu East & Forrestfield Number of consists 4 Consist design 3 locomotives, 100 wagons Payload per consist 6,800 tonnes Source: Gindalbie Note reference i
Slide 16: Cliffs summary
Cliffs summary For personal use only Mine(s) serviced Koolyanobbing Haul length 579 km Contracted tonnes 11.5mtpa Port Esperance Facilities used Esperance & West Kalgoorlie Number of consists 5 Consist design 4 locomotives, 159 wagons Source: Cliffs Payload per consist 11,500 tonnes 15
Slide 17: Mineral Resources summary
Mineral Resources summary For personal use only (Carina mine) Mine(s) serviced Carina Haul length 567 km Contracted tonnes Up to 4.2mtpa Port Kwinana Kwinana, Forrestfield & West Facilities used Merredin Number of consists 2 Consist design 2 locomotives, 116 wagons Payload y per consist p 7,900 , to
Slide 18: Iron Ore growth prospects
Iron Ore growth prospects For personal use only Pilbara • Current operating footprint limited to Mid-West and Yil Yilgarn • ~$400m investment in the iron ore business has been delivered on time and within budget • All customers t either ith att or ramping i up to t full f ll contract t t production
Slide 19: Port Profiles
For personal use only Port Profiles
Slide 20: Esperance Port Sea and Land (EPSL) Profile
Esperance Port Sea and Land (EPSL) Profile PORT OVERVIEW PROPOSED PORT DEVELOPMENT In 2014 Esperance Ports Sea and Land (EPSL) will merge with with Bunbury and For personal use only Albany ports to form the Southern Ports Authority. The State Government selected EPSL to be the site for developme
Slide 21: Geraldton Port Profile
Geraldton Port Profile PORT OVERVIEW LOCATION Located in the Midwest region of WA, 424km north of Perth For personal use only Managed by the Geraldton Port Authority (GPA), which is governed by a Board Directors appointed by the Minister for Transport Capable of handling ships up to Panamax si
Slide 22: Kwinana Port Profile
Kwinana Port (Fremantle Port’s Outer Harbour) Profile PORT OVERVIEW LOCATION Fremantle Port comprises two harbours. The Inner Harbour which handles container and break bulk trade and For personal use only the Outer Harbour handles bulk cargoes Established in Kwinana in the 1950s, the Outer Harbo
Slide 23: Aurizon's Iron Ore Business
For personal use only Aurizon’ss Iron Ore Business Aurizon October 2013
Aurizon Holdings — Investor Presentation (October 2013) on 6ix