Transurban Group Ltd. · ASX:TCL
Transurban — Investor Day (September 2014)
84 slides from Transurban's investor day presentation, Sep 18, 2014
Slide 1: Transurban 2014 Investor Day
18 SEPTEMBER 2014 TRANSURBAN 2014 INVESTOR DAY
Slide 2: Disclaimer & Basis of Preparation
DISCLAIMER & BASIS OF PREPARATION The Transurban Group is a triple stapled security listed on the Australian Securities Exchange (“ASX”) comprising Transurban Holdings Limited (ACN 098 143 429) (“THL”), Transurban International Limited (ACN 121 746 825) (“TIL”) and Transurban Infrastructure Manageme
Slide 3: Welcome
WELCOME CEO SCOTT CHARLTON TRANSURBAN 2014 INVESTOR DAY 3
Slide 4: Agenda
AGENDA 10.00 Welcome Scott Charlton Chief Executive Officer 10.15 Brisbane network Wes Ballantine Group General Manager Queensland Darryn Paterson Acting Group General Manager Strategy Leigh Petschel Acting Chief Financial Officer 11.30 Break 11.50 Melbourne network Vin Vassallo Group General Manage
Slide 5: Melbourne: Our Network Footprint
MELBOURNE OUR NETWORK FOOTPRINT CITYLINK 1999 $1.8 billion TULLA-CALDER INTERCHANGE 2007 $150 million M1-CITYLINK UPGRADE1 2010 $1.39 billion CITYLINK-TULLA WIDENING Expected $850 million 2017 Opened Construction cost 1. Monash-CityLink-West Gate upgrade – joint project with the Victorian Government
Slide 6: Melbourne: Our Network Footprint
MELBOURNE OUR NETWORK FOOTPRINT CONSTRUCTION JOBS1 CUSTOMER ACCOUNTS FOR UPGRADE PROJECTS 2,400 1. Southern Link upgrade, tunnels 1.1M resurfacing and CityLink-Tulla widening O&M JOBS2 COMMUNITY BENEFITS 3 ON CITYLINK FROM M1-CITYLINK UPGRADE 80 2. Transurban employees and contractors $14.5B 3. Vict
Slide 7: Sydney: Our Network Footprint
SYDNEY M5 SOUTH WEST MOTORWAY OUR NETWORK FOOTPRINT 1992 $380 million HILLS M2 1997 $640 million EASTERN DISTRIBUTOR HILLS M2 UPGRADE ~$700 million1 1999 $680 million Opened 2013 CROSS CITY TUNNEL 2005 $680 million WESTLINK M7 2005 $1.5 billion LANE COVE TUNNEL M5 WEST WIDENING PROJECT 2007 $1.1 bil
Slide 8: Sydney: Our Network Footprint
SYDNEY OUR NETWORK FOOTPRINT CONSTRUCTION JOBS1 CUSTOMER ACCOUNTS NPV ECONOMIC CONTRIBUTION3 FOR UPGRADE PROJECTS APPROXIMATELY AN ESTIMATED 2,500 1. Hills M2 upgrade, M5 West widening 350K $22.7B FROM SYDNEY’S and NorthConnex TOLL ROAD NETWORK O&M JOBS2 HILLS M2 UPGRADE 3. 2008 Ernst & Young Report
Slide 9: Brisbane: Our Network Footprint
BRISBANE CLEM7 OUR NETWORK FOOTPRINT 2010 $3.0 billion GO BETWEEN BRIDGE 2010 $320 million GATEWAY & LOGAN OWNERSHIP TRANSFER 2011 $3.08 billion GATEWAY UPGRADE PROJECT 2011 $2.12 billion LEGACY WAY Expected $1.5 billion mid 2015 GATEWAY UPGRADE NORTH Expected $1.162 billion 2018 Opened Construction
Slide 10: Brisbane: Our Network Footprint
BRISBANE OUR NETWORK FOOTPRINT CONSTRUCTION JOBS O&M JOBS1 CUSTOMER ACCOUNTS 1,700 120 GATEWAY UPGRADE 1. Transurban employees and contractors 1.2M CLEM7 GATEWAY MOTORWAY TRAVEL TIME SAVINGS TRAVEL TIME SAVINGS OF UP TO OF UP TO 17mins COMPARED TO 22mins COMPARED TO ARTERIAL ROADS ARTERIAL ROADS TRA
Slide 11: Northern Virginia: Our Network Footprint
NORTHERN VIRGINIA OUR NETWORK FOOTPRINT 495 EXPRESS LANES 2012 US$1.7 billion 95 EXPRESS LANES Expected US$830 million late 2014 Opened Construction cost TRANSURBAN 2014 INVESTOR DAY 11
Slide 12: Northern Virginia: Our Network Footprint
NORTHERN VIRGINIA OUR NETWORK FOOTPRINT CONSTRUCTION JOBS1 O&M JOBS PROJECTS GENERATED2 495 EXPRESS LANES APPROXIMATELY OVER 1,200 60 1. Transurban employees and contractors $5B IN ECONOMIC ACTIVITY 95 EXPRESS LANES AND MORE THAN 1,500 28K JOBS 1. At peak construction periods 2. Center of Regional A
Slide 13: Transport Innovation: Technology and Policy
TRANSPORT INNOVATION TECHNOLOGY AND POLICY TRANSURBAN 2014 INVESTOR DAY 13
Slide 14: Transport Innovation: Practical and Sustainable Design
TRANSPORT INNOVATION PRACTICAL AND SUSTAINABLE DESIGN TRANSURBAN 2014 INVESTOR DAY 14
Slide 15: Transport Innovation: Sustainability and Safety
TRANSPORT INNOVATION SUSTAINABILITY AND SAFETY TRANSURBAN 2014 INVESTOR DAY 15
Slide 16: Queensland Market Update
QUEENSLAND MARKET UPDATE WES BALLANTINE, GROUP GENERAL MANAGER QUEENSLAND TRANSURBAN 2014 INVESTOR DAY 16
Slide 17: Queensland Network: Initial Observations
QUEENSLAND NETWORK INITIAL OBSERVATIONS FY15 budget forecast in line with bid case assumptions and expected cash distribution to TCL Early integration proceeding well Current Logan pavement works nearing completion Solid portfolio of network opportunities TRANSURBAN 2014 INVESTOR DAY 17
Slide 18: Gateway Motorway
GATEWAY MOTORWAY CHARACTERISTICS OPPORTUNITIES Only river crossing Gateway Upgrade North east of CBD Gateway Bridge Pacific Motorway duplication completed intersection upgrade 2011 Key connector to Brisbane Airport, Port of Brisbane and Australia TradeCoast Traffic growth over the last 25 ye
Slide 19: Gateway
GATEWAY ANNUAL AVERAGE DAILY TRAFFIC1 YTD FY152 Traffic 2.7% Revenue 5.8% PROPORTIONAL REVENUE OF QLD MARKET 48% Total 98,367 104,048 105,614 108,478 Motorbikes Light Commercial Vehicles Heavy Commercial Vehicles Cars 1. Includes Gateway Bridge toll point. 2. YTD to 12 September 2014 vs pcp.
Slide 20: Gateway Upgrade North
GATEWAY UPGRADE NORTH PROJECT OVERVIEW PROJECT SCOPE QM APPOINTED STATE’S AGENT TO DELIVER 11.3km six lane upgrade PACKAGES 2 & 3 Upgrade adjoins concession boundary August Procurement process 2014 commenced $1.162B project budget (State and Federal Government Mid- Construction 2015 contract c
Slide 21: Logan Motorway
LOGAN MOTORWAY CHARACTERISTICS OPPORTUNITIES Established asset in Ramp modifications growth corridor Mt Lindesay Highway Key commercial widening vehicle route Wembley Road Pavement Rectification intersection upgrade Program commenced April 2013 ‒ Stage 2 scheduled for completion in Octob
Slide 22: Logan Motorway Works
LOGAN MOTORWAY WORKS PAVEMENT RECTIFICATION PROGRAM WESTBOUND MT LINDESAY HWY TO IPSWICH MWY April Stage 1 construction 2013 commenced WESTBOUND WEMBLEY ROAD TO MT LINDESAY HWY Early Sep Stage 2 construction 2013 commenced End July Stage 1 completed 2014 PROJECT SCOPE UNDER REVIEW – PAVEMENT CONDITI
Slide 23: Logan Motorway
LOGAN MOTORWAY ANNUAL AVERAGE DAILY TRAFFIC1 YTD FY152 Traffic -2.9% Revenue 0.5% PROPORTIONAL REVENUE OF QLD MARKET 37% Total 135,132 141,123 147,555 148,684 Motorbikes Light Commercial Vehicles Heavy Commercial Vehicles Cars 1. Includes Kuraby, Loganlea, Heathwood and Paradise Road toll po
Slide 24: Clem7
CLEM7 CHARACTERISTICS OPPORTUNITIES CBD bypass direct to Asset relaunch airport, northern ‒ signage upgrade suburbs and ‒ marketing TradeCoast campaign Maximum tolls applied Opportunities with for cars from 1 January AirportlinkM7 and 2014 Legacy Way (corridor Traffic impact from and prici
Slide 25: Clem7 Relaunch
CLEM7 RELAUNCH REDUCING CONFUSION TRANSURBAN 2014 INVESTOR DAY 25
Slide 26: Clem7
CLEM7 ANNUAL AVERAGE DAILY TRAFFIC YTD FY151 Traffic -2.1% Revenue 9.9% PROPORTIONAL REVENUE OF QLD MARKET 12% Total 25,893 26,647 Motorbikes Light Commercial Vehicles Heavy Commercial Vehicles Cars 1. YTD 12 September 2014 vs pcp. TRANSURBAN 2014 INVESTOR DAY 26
Slide 27: Go Between Bridge
GO BETWEEN BRIDGE CHARACTERISTICS OPPORTUNITIES Connects key inner Ongoing development city precincts of West End and South Brisbane Projected population and employment growth Brisbane City Council’s of >4% per annum for Kurilpa Master Plan 10 years1 expected to attract 8,000 new jobs and 11
Slide 28: Go Between Bridge
GO BETWEEN BRIDGE ANNUAL AVERAGE DAILY TRAFFIC YTD FY151 Traffic 0.1% Revenue 4.2% PROPORTIONAL REVENUE OF QLD MARKET Total 3% 11,693 11,436 Motorbikes Light Commercial Vehicles Heavy Commercial Vehicles Cars 1. YTD 12 September 2014 vs pcp. TRANSURBAN 2014 INVESTOR DAY 28
Slide 29: Legacy Way
LEGACY WAY CHARACTERISTICS OPPORTUNITIES On schedule for Western Freeway completion first half upgrade opening to calendar 2015 coincide with Legacy Way opening Twin two-lane 4.6km tunnel Optimal pricing point to be determined Concession to operate the road from completion of construction
Slide 30: Legacy Way Launch
LEGACY WAY LAUNCH TAKING LEGACY WAY TO MARKET March Three-phase marketing 2014 campaign commenced Early Opening tolling plan 2015 announced Mid Targeted project 2015 completion LEGACY WAY OPENING TRANSURBAN 2014 INVESTOR DAY 30
Slide 31: Network Opportunities
NETWORK OPPORTUNITIES Gateway North Future opportunity to add value to the broader network AirportlinkM7 Asset sale anticipated later this year Queensland Motorways has not participated in recent debt sell downs Pacific Motorway interchange upgrade State Government undertaking feasibility as
Slide 32: Market Demographics
MARKET DEMOGRAPHICS DARRYN PATERSON, ACTING GROUP GENERAL MANAGER STRATEGY TRANSURBAN 2014 INVESTOR DAY 32
Slide 33: Strong Market Outlook
STRONG MARKET OUTLOOK FORECAST POPULATION FORECAST EMPLOYMENT GROWTH (2014-2018) GROWTH (2014-2018) Brisbane Sydney Melbourne Source: Deloitte Access Economics, Business Outlook, June 2014 TRANSURBAN 2014 INVESTOR DAY 33
Slide 34: Growth in South-East Queensland: Population
GROWTH IN SOUTH-EAST QUEENSLAND KEY GROWTH CENTRES Population Growth Centre CBD NW Inner Brisbane NW Outer Brisbane SE Inner Brisbane SE Outer Brisbane Caboolture Ipswich City Logan City Pine Rivers Redcliffe Redland City Gold Coast West Source: NIEIR January 2014 TRANSURBAN 2014 INVESTOR DAY 34
Slide 35: Growth in South-East Queensland: Employment
GROWTH IN SOUTH-EAST QUEENSLAND KEY GROWTH CENTRES Employment Growth Centre CBD Queensland Network NW Inner Brisbane NW Outer Brisbane SE Inner Brisbane SE Outer Brisbane Caboolture Ipswich City Logan City Pine Rivers Redcliffe Redland City Gold Coast West Source: NIEIR January 2014 TRANSURBAN 2014
Slide 36: Commercial Travel
COMMERCIAL TRAVEL COMMERCIAL VEHICLE TRAVEL ACROSS TCL PORTFOLIO IN FY14 Light Commercial Vehicles Heavy Commercial Vehicles TRANSURBAN 2014 INVESTOR DAY 36
Slide 37: Key Trip Drivers
KEY TRIP DRIVERS INDUSTRIAL GROWTH CENTRES QLD FREIGHT 2% Road TRAFFIC VOLUME BY Rail MODE 29% Sea Air (0.01%) 69% Source: Centre for Transport Energy and The Environment Queensland Transport Facts 2013 VOLUME OF TRUCKS ON KEY SOUTH-EAST QUEENSLAND ROADS PER AVERAGE WEEKDAY Source: Departmen
Slide 38: Key Trip Drivers
KEY TRIP DRIVERS INDUSTRIAL GROWTH CENTRES PORT AND QLD FREIGHT $110M upgrade to improve road access to 2% Road AIRPORT TRAFFIC Port of Brisbane targeted completion 20171 GROWTH VOLUME BY Rail $1.3B additional runway expected to be completed MODE 29% by 20202 Sea ‒ flights are forecast to
Slide 39: Financing Structure/Tax
FINANCING STRUCTURE/TAX LEIGH PETSCHEL, ACTING CHIEF FINANCIAL OFFICER TRANSURBAN 2014 INVESTOR DAY 39
Slide 40: Summarised Group Structure
SUMMARISED GROUP STRUCTURE STAPLED STRUCTURE TRANSURBAN HOLDINGS LIMITED TRANSURBAN HOLDING TRUST TRANSURBAN INTERNATIONAL LIMITED ROAD/OPERATING CORPORATE ENTITIES ROAD/OPERATING ENTITIES OTHER ENTITIES CORPORATE ENTITIES ENTITIES Including: Companies operating and maintaining roads Trusts holding
Slide 41: Tax Groups
TAX GROUPS TCL SECURITY HOLDERS FRANKED DIVIDENDS TRUST DISTRIBUTIONS THL THT TIL THL TAX GROUP DIVIDENDS2 (WITH FRANKED INTEREST ON TRUST INTEREST TRUST FOREIGN TAX CityLink CityLink Trust DIVIDENDS LOAN NOTES DISTRIBUTIONS ON TLNs DISTRIBUTIONS CREDITS) Melbourne Limited Sun Group Westlink Airport
Slide 42: Infrastructure Tax Framework
INFRASTRUCTURE TAX FRAMEWORK Amortisation of capital investment and funding cost Infrastructure assets require billions of dollars of upfront capital investment Amortisation of investment reduces tax in early years of concession Continued investment can extend amortisation profile Generally re
Slide 43: Debt Maturity Profile and Hedging
DEBT MATURITY PROFILE AND HEDGING TCL DEBT JUNE 2014 TCL DEBT PROJECTED JUNE 20151 Hedging reduces exposure to interest rate movement Longer tenor being achieved to push interest rate exposure further out Financing activity post June 2014: ‒ QM A$2.9Bn – July 2014 ‒ M7 A$1.27Bn – August 2014 ‒
Slide 44: CPI Linked Revenue
CPI LINKED REVENUE EMBEDDED INFLATION PROTECTION MOTORWAY CPI MINIMUM FLOOR CityLink Yes 4.5%1 Hills M2 Yes 4% Lane Cove Tunnel Yes 0%2 M1 Eastern Distributor Yes 4%3 Westlink M7 Yes None4 M5 South West Motorway Yes 0%5 Cross City Tunnel Yes 3%6 Queensland assets (Gateway, Logan, Clem7, Go Between B
Slide 45: FY14 Pro Forma P&L and Free Cash
FY14 PRO FORMA P&L AND FREE CASH YEAR ENDED YEAR ENDED QM CONTRIBUTION TO FREE CASH QM PROFIT AND LOSS 30 JUNE 2014 ($M) 30 JUNE 2014 ($M) Cash flows from operating activities 92.5 Toll revenue 370.4 Adjusted for: Fee revenue 31.5 Payments for maintenance of intangible assets 82.1 Other revenue 1.1
Slide 46: Integration
INTEGRATION WES BALLANTINE, GROUP GENERAL MANAGER QUEENSLAND TRANSURBAN 2014 INVESTOR DAY 46
Slide 47: First Impressions
FIRST IMPRESSIONS DUE DILIGENCE ASSUMPTIONS CONFIRMED Commercialisation of business Management committed to ongoing improvement and integration Alignment of operating model presents improvement opportunities Robust technology platforms TRANSURBAN 2014 INVESTOR DAY 47
Slide 48: Queensland Integration
QUEENSLAND INTEGRATION Post acquisition QLD Leadership review Announcement New Queensland Motorways’ Enterprise Agreement ratified by Fair Work Agreement Leadership changes New leadership team validation of integration Z business case FY15 reforecast Corporate technology integration Operating model
Slide 49: Operating Model
OPERATING MODEL O&M CONTRACTS FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Gateway Motorway Maintenance Gateway and Logan1 GMS (Leighton/Lend Lease) Option to extend Logan Motorway1 Maintenance Gateway and Logan1 Transfield Services Two 1-year options to extend CLEM7and Logan1 Gateway Gateway O&
Slide 50: Integration: EBITDA Targets and Toll Revenue
INTEGRATION EBITDA TARGETS AND TOLL REVENUE QLD EBITDA MARGIN Driving to average NSW margin FY14 TOLL REVENUE BY ASET ($M) Gateway Motorway 176.7 Logan Motorway 139.5 CLEM7 42.9 Go Between Bridge 11.3 TOTAL 370.4 TRANSURBAN 2014 INVESTOR DAY 50
Slide 51: Victorian Market Update
VICTORIAN MARKET UPDATE VIN VASSALLO, GROUP GENERAL MANAGER VICTORIA TRANSURBAN 2014 INVESTOR DAY 51
Slide 52: Market Overview
MARKET OVERVIEW TODAY TOMORROW Hands-on operations CityLink-Tulla widening project to commence On-road technology 2015 advancements East-West Link interface Customer and channel management Network enhancements TRANSURBAN 2014 INVESTOR DAY 52
Slide 53: Proactive Management
PROACTIVE MANAGEMENT LEVERAGING CAPABILITIES TRANSLINK OPERATIONS Acquisition in May 19 employees Direct management of road operations and incident response ENHANCED DIRECT SAFETY INCREASED LANE INCIDENT MANAGEMENT FOCUS AVAILABILITY RESPONSE TRANSURBAN 2014 INVESTOR DAY 53
Slide 54: Technology Enhancements
TECHNOLOGY ENHANCEMENTS OVERHEIGHT VEHICLE DETECTION SYSTEM Implemented 4 August Activated 12 times − 10 at the Burnley Tunnel − 2 at the Domain Tunnel Upgrade includes: − Additional height detectors − Enhanced communications − Revised protocols TRANSURBAN 2014 INVESTOR DAY 54
Slide 55: Enhancing Customer Interface
ENHANCING CUSTOMER INTERFACE FURTHER OPPORTUNITIES FOR GROWTH 54% customer self service rate* FY13 FY14 Total visits to website 4.5M 6.1M FY13 FY14 Visits from mobile devices 1.1M 2.2M FY13 FY14 Visits from PCs 3.4M 3.9M FY13 FY14 % of mobile devices 25% 37% * As at June 2014 TRANSURBAN 2014 INVESTO
Slide 56: Proactive Customer Communications
PROACTIVE CUSTOMER COMMUNICATIONS TOLL NOTICES REFERRED FOR ENFORCEMENT TOLL NOTICE PAYMENT RATES - FY14 - FY13 REDUCED BETTER PROACTIVE HIGHER PAYMENT INFRINGEMENT CUSTOMER COMMUNICATIONS RATES VOLUMES EXPERIENCE TRANSURBAN 2014 INVESTOR DAY 56
Slide 57: CityLink-Tulla Widening
CITYLINK-TULLA WIDENING PROJECT DELIVERY CONTRACTOR GOVERNMENT CONSTRUCTION PROCUREMENT APPROVAL PHASE July 2014 Late 2014 End 2014/ Early 2015 Mid-2015 2017 Tenders Preferred Targeted Targeted Targeted received contractor financial project project selected close commencement completion TRANSURBAN 2
Slide 58: CityLink-Tulla Widening Project
CITYLINK-TULLA WIDENING PROJECT MANAGING CONSTRUCTION IMPACTS 1 extra lane 2 extra lanes TRAFFIC DISRUPTION PROJECT FUNDING MITIGATION MEASURES One-year concession extension Coordinated works periods Traffic uplift through extra capacity Agreed access framework − Operating lane impac
Slide 59: Addressing Near-Term Constraints
ADDRESSING NEAR-TERM CONSTRAINTS CITYLINK AADT FROM OPENING Focus on network enhancements and operational efficiencies to address capacity constraints TRANSURBAN 2014 INVESTOR DAY 59
Slide 60: Network Opportunities
NETWORK OPPORTUNITIES East-West Link Stage 1 Committed and preferred tenderer selected East-West Link Stage 2 Timing to be determined North East Link Flagged as a key priority by the RACV No political commitment Extra lanes to Melbourne Airport Vic and Federal governments in talks to exten
Slide 61: USA Market Update
USA MARKET UPDATE JENNIFER AUMENT, GROUP GENERAL MANAGER NORTH AMERICA TRANSURBAN 2014 INVESTOR DAY 61
Slide 62: Market Overview
MARKET OVERVIEW TODAY TOMORROW Express Lanes concept 95 Express Lanes proving up project to open 2014 495 Express Lanes Combined operation 22 months into centre and back office operation Network synergies Expanding customer base Refining tolling algorithm TRANSURBAN 2014 INVESTOR DAY 6
Slide 63: 495 Express Lanes Usage
495 EXPRESS LANES USAGE INCREASED CORRIDOR CAPTURE1 BELTWAY DRIVERS EXPRESS LANES USAGE 6 in 10 29% 30% Beltway users from 17% from 21% (58%) have now used the lanes vs 39% in Q3 2013 41% from 60% 1. September 2013 research compared to May 2014 research. TRANSURBAN 2014 INVESTOR DAY 63
Slide 64: Travel Time Reliability
TRAVEL TIME RELIABILITY MAJOR CUSTOMER DRIVER TRAVEL TIME: AM PEAK FULL-LENGTH 495 EXPRESS LANES – NORTH BOUND TYPICAL THURSDAY 8:30AM GENERAL PURPOSE 495 EXPRESS LANES LANES 18-50 mins <10 mins TRANSURBAN 2014 INVESTOR DAY 64
Slide 65: Customer Behaviour
CUSTOMER BEHAVIOUR UNIQUE MARKET INSIGHT Percentage of Time Customers Take 495 Express Lanes vs. Beltway (Shown: Frequent Express Lanes users taking the Express Lanes to destination) School 52% Commute to work 48% Commute from work 48% Pick up children 44% Visit friends or family 44% Appointments 44
Slide 66: 95 Express Lanes Timeline
95 EXPRESS LANES TIMELINE COMPLETED REMAINING Late August September Sep-Oct October November December December Toll point All bridges Overhead System Paving System user Contraflow Joint Road turnover complete signage integrated complete acceptance testing system opens testing testing operational TRA
Slide 67: Key Differences and Express Lanes Operation
KEY DIFFERENCES 495 AND 95 EXPRESS LANES OPERATION Function Circumferential Radial Length 10 miles / 16km 28 miles / 45km Access All or nothing decision Multiple entry and exit points Directionality Dual direction Reversible Capacity Addition of 50% capacity Addition of approx 17% capacity Trip leng
Slide 68: Integrated Operating Model
INTEGRATED OPERATING MODEL ONE NETWORK OPERATIONAL SYNERGIES CUSTOMER BENEFITS Single Traffic Control Single customer Operations Centre interface Single tolling system Network-wide E-ZPass - Consistent Transurban one method of payment O&M team and key Traffic management and partners inci
Slide 69: Attractive Market Demographics
ATTRACTIVE MARKET DEMOGRAPHICS TYSONS 2014 PRE-2013 2013 APPROVED COMPLETED REZONING UNDER REZONING OR UNDER REVIEW CONSTRUCTION Garfield Parcel, Scotts Run South Lerner Tysons II, future phases Capital One Arbor Row, Hanover Block E Commons of McLean Mitre Building 4 Park Crest, Building 4 Scotts R
Slide 70: Network Opportunities
NETWORK OPPORTUNITIES CONSISTENT WITH GROUP STRATEGY MEDIUM TO LONG-TERM NEAR-TERM FOCUS OPPORTUNITIES Focus on maximising Leverage expertise existing network Add additional access in Tysons Corner Corridor-wide signage improvements Prove and extend - improve driver managed lanes informati
Slide 71: NSW Market Update
NSW MARKET UPDATE GROUP GENERAL MANAGER ANDREW HEAD TRANSURBAN 2014 INVESTOR DAY 71
Slide 72: Market Overview
MARKET OVERVIEW TODAY TOMORROW M5 West Widening In-housing operations completion NorthConnex Hills M2 post-upgrade financial close WestConnex Stage 2 GLIDe phase 1 opportunity TRANSURBAN 2014 INVESTOR DAY 72
Slide 73: Operational Excellence
OPERATIONAL EXCELLENCE HILLS M2/LANE COVE TUNNEL OPERATIONS AND MAINTENANCE OPTIMISING LANE AVAILABILITY New asset management Prior agreement – SAVINGS Current agreement – system to support road pre April 2013 post April 2013 availability $17.4m* 18% $14.2m* Improved safety and incident response
Slide 74: Cost Recovery
COST RECOVERY IMAGE-BASED TRAFFIC FEES FULLY IMPLEMENTED IMAGE-BASED TRAFFIC FEES 30 Jan 2012 full electronic tolling implemented on Hills M2 and ED Jan 2012 – June 2013 progressive roll out of IBT fees across all NSW assets and tag issuers ‒ Approx $10M additional revenue in FY14 TRANSURBAN 201
Slide 75: Operational Efficiencies
OPERATIONAL EFFICIENCIES GLIDE DEPLOYMENT AND OPPORTUNITIES 2011 2014 2015 2016-2019 GLIDE MULTI-ASSET MULTI-RETAIL INDUSTRY V1.0 GLIDE GLIDE TOLLING HUB Single asset NSW rollout NSW rollout Potential to operation– Phase 1 Phase 2 expand GLIDe CityLink capability Multi-asset Multi-asset
Slide 76: Hills M2 Upgrade
HILLS M2 UPGRADE REVENUE GROWTH CONSISTENT WITH INVESTMENT CASE REVENUE GROWTH Project completion delay offset by better revenue mix TRANSURBAN 2014 INVESTOR DAY 76
Slide 77: M5 West Widening: Staged Lane Openings
M5 WEST WIDENING STAGED LANE OPENINGS Three lanes available ▬ Existing ▬ From end August 2014 ▬ Late October 2014 ▬ Early December 2014 TRANSURBAN 2014 INVESTOR DAY 77
Slide 78: M5 West Widening: Project Economics
M5 WEST WIDENING PROJECT ECONOMICS Truck toll multiplier Increased from 2.2x to 3x over 8 quarters Traffic uplift Additional 35 lane kilometres Traffic impacts Concession extension During construction Additional 3.3 years to December 2026 Capital costs $400 million includes $50 million NSW Governmen
Slide 79: NorthConnex: Project Delivery
NORTHCONNEX PROJECT DELIVERY ENVIRONMENTAL IMPACT STATEMENT July EIS on public display 2014 Sept EIS closes 2014 Late Project approval target 2014 Financial close target CONSTRUCTION PHASE Early Construction 2015 commencement Late Targeted project 2019 completion TRANSURBAN 2014 INVESTOR DAY 79
Slide 80: NorthConnex: Project Economics
NORTHCONNEX PROJECT ECONOMICS1 Truck toll multiplier Westlink M7 from 1x to 3x over 8 quarters New tolls and concession NorthConnex opening Tolls aligned with M2 29-year concession to mid 2048 Concession extension Westlink M7 – 11-year concession extension from 2037 to mid 2048 Capital costs Approxi
Slide 81: Network Development Activities
NETWORK DEVELOPMENT ACTIVITIES GOVERNMENT PROJECTS COMPLEMENTING TCL ASSETS WESTCONNEX STAGE 2 TIMELINE1 May $2B concessional loan 2014 allocated to NSW Government for WestConnex Stage 2 EOI for private sector Late involvement for Stage 2 major 2014 works Construction scheduled 2015 to commence on K
Slide 82: Conclusion
CONCLUSION CEO SCOTT CHARLTON TRANSURBAN 2014 INVESTOR DAY 82
Slide 83: Network of Opportunities
NETWORK OF OPPORTUNITIES CLEAR MARKET DEFINITION ATTRACTIVE NETWORK POSITIONS SIGNIFICANT OPPORTUNITIES FOR NETWORK ENHANCEMENTS DELIVERING CONSISTENT PIPELINE TRANSURBAN 2014 INVESTOR DAY 83
Slide 84: Transurban
transurban