Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — 1HFY2025 Earnings Presentation
46 slides from Aurizon's earnings presentation, 2025
Slide 1: Photo: First railing of Northern Iron's magnetite over the Elizabeth River
Photo: First railing of Northern Iron's magnetite over the Elizabeth River in Northern Territory (Bulk Central). Photo taken by Aurizon locomotive driver Darryn Fladrich
Slide 2: No Reliance on this Document / Statements About the Future
NO RELIANCE ON THIS DOCUMENT STATEMENTS ABOUT THE FUTURE This document was prepared by Aurizon Holdings Limited (ACN 146 335 622) (referred to as “Aurizon” which includes its related This document contains “forward-looking statements”. The words “expect”, “anticipate”, “likely”, “intend”, “should”,
Slide 3: Network, Coal, Bulk and Containerised Freight
Network Coal Bulk Containerised Freight 2,670km of rail infrastructure, servicing Largest fleet in Australia, servicing all East- 2,200km Tarcoola-to-Darwin National capacity of premium coking coal basin Coast coal terminals rail line ~350k TEUs per annum Regulated Return1, across a $6.1b Coal haule
Slide 4: TRIFR, LTIFR and Serious Injury Frequency Rates
Total Recordable Injury Frequency Rate (TRIFR)1 and Lost Time Injury Frequency Actual and Potential Serious Injury and Fatality Frequency Rate (SIFRa+p) 2 Rate (LTIFR) Incidents per million hours worked Incidents per million hours worked 8.65 +9% 8.03 7.36 -29% 2.28 1.63 1.15 3.92 3.51 3.61 FY2023 F
Slide 5: Introduction & Overview
Introduction & Overview “Andrew Harding £3 AuRIZON. Managing Director & CEO
Slide 6: 1HFY2025 results highlights
Underlying EBITDA Statutory NPAT ROIC $814m $233m 8.4% down 4% down 2% down 0.6ppts Statutory EBITDA flat Underlying NPAT down 14% Free Cash Flow2 Interim Dividend3 Capital Management4 $237m 9.2cps NOW UP TO $300m down 7% down 5% including a (further) $50m extension to on-market buy-back Free Cash F
Slide 7: Network volumes 3% higher
› Volumes 3% higher (+3.7mt) compared to the prior year Network Volumes (By System, All Rail Operators) Total (million tonnes) and change compared to 1HFY2024 › FY2025 regulatory volume assumption is 216.7mt (+3% compared with FY2024 volumes railed) Newlands 10mt +0.6mt › Industry endorsement of Dai
Slide 8: Coal volumes 6% higher
› Volumes 6% higher compared to the prior year with growth across all Coal Haulage (By Corridor/Region) corridors/regions (excluding Newlands) Total (million tonnes) and change compared to 1HFY2024 › Revenue supported by volume growth in addition to contract rate Newlands 6mt -0.2mt indexation, offs
Slide 9: Bulk haulage by geography
› Railings for Bulk Central iron ore customer Northern Iron commenced Bulk Haulage (By Geography): in late October Total (million tonnes) and change compared to 1HFY2024 › Stronger grain volume expected in second half with CBH Group receiving 20.3 million tonnes from the Western Australia 2024-25 ha
Slide 10: National Interstate: Containerised Freight
National Interstate: Containerised Freight Network › First complete period with full schedule1 in operation › Utilisation of >60% of available capacity in 1HFY2025 Darwin › Volumes continue to build through both the (contracted) foundation customer and additional (spot volume) customers › Continues
Slide 11: George Lippiatt, CFO & Group Executive Strategy
George Lippiatt CFO & Group Executive Strategy LBP aurizon.
Slide 12: Group financial results
$m 1HFY2025 1HFY2024 Variance (%) Variance 2HFY2024 › Revenue growth from Coal driven by higher volumes and Other (Containerised Freight and partial contribution of a Revenue (and other income) 2,023 1,972 3% 51 1,872 portion of the proceeds from the settlement of legal matters) Operating Costs (Tot
Slide 13: Network EBITDA: major drivers
EBITDA1: Major drivers ($M) net of fuel and energy/electric charges (revenue and cost) Tonnes Total Revenue 110.2m $736m 12 26 495 7 +3% (3%) 2 486 Net impact +$14m Operating Costs EBITDA 1HFY2024 Access Revenue Operating Costs External Other 1HFY2025 ($241m) $495m Construction Works (Net) › Higher
Slide 14: Coal EBITDA: major drivers
EBITDA: Major drivers ($M) net of fuel and access (revenue and cost) Tonnes hauled Revenue1 Contract Rate Indexation 99.2m $668m 16 & Operating Costs3 +6% +3% 283 26 17 23 3 264 Operating costs2 EBITDA Net impact -$6m ($404m) $264m 1HFY2024 Additional Customer Mix Contract Rate Operating Other 1HFY2
Slide 15: Bulk EBITDA: major drivers
EBITDA: Major drivers ($M) Rail Tonnes Hauled Total Revenue net of fuel and access (revenue and cost) 27.5m $560m 112 6 Iron Ore 5 (19%) flat 12 11 6 84 Operating Costs EBITDA ($476m) $84m 1HFY2024 Iron Ore3 Derailment Grain Provisions Other 1HFY2025 (6%) (25%) (Mid-West WA) › Revenue remained flat
Slide 16: Capital expenditure and capital allocation
Capital allocation Capital expenditure1 Growth capital, dividends and buy-backs -14% 100% 100% 100% $400m $92m $343m $44m Non-Growth Capex2 Shareholder returns FY16-FY21 FY22-FY24 1HFY25 1HFY2024 1HFY2025 Non-Growth Capex2 Growth Capital (including M&A) Buy-Backs Cash Dividends Growth Capex Corporat
Slide 17: Group funding structure and debt maturity profile
Group Funding Structure Debt Maturity Profile8 ($m) › ~75% of Group debt held in Network GROUP DEBT METRICS 1HFY2025 FY2024 includes undrawn amounts › Increase in net debt/EBITDA1 ratios to 4.1x for Network (FY2024: 3.9x) and 1.9x for Operations (FY2024: 1.8x) at December 2024 1,840 Weighted average
Slide 18: Outlook
~ Outloc Andrew-Hardir Managing Di
Slide 19: Enterprise strategy and growth
Drive Bulk growth Establish nationally significant containerised Resilient Coal and Network businesses across national footprint freight supply chain Coal plus Network EBITDA ($m) Bulk EBITDA ($m) TEUs3 (‘000) $1,458 159 $1,415 $1,382 $1,331 $1,342 $1,268 $229 $214 97 $140 $135 $110 109 $702 $682 $7
Slide 20: Actions in progress
Actions in progress Economic conditions and customer demand › Bulk freight reviews have been completed in East and West which have identified cost and fleet optimisation opportunities that are currently being implemented › Non-operational cost base is currently being assessed, targeting additional e
Slide 21: FY2025 guidance and key assumptions
FY2025: Group underlying EBITDA and sustaining/growth capex ranges all maintained, although each is expected to be at the lower end of their respective range › Group underlying EBITDA range $1,660m - $1,740m › Sustaining capex range $640m - $720m (including ~$80m of transformation capital) › Growth
Slide 22: Slide 22
Slide 23: Aurizon
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Slide 24: 1HFY2025 Results Additional Information: About Aurizon
IHFY2025 RESULTS ADDITIONAL INFORMATION > purizon. About Aurizon Aurizon is Australia’s largest rail freight operator. Our operational footprint soans across mainland Australia, with over 5,000km of track infrastructure and the largest fleet of locomotives and wagons - ‘Aurizon Operations Coal, Bulk
Slide 25: Strategy and aspirations to FY2030
Resilient Coal and Drive Bulk growth Establish nationally significant Network businesses across national footprint containerised freight supply chain Our aspiration to achieve Our aspiration to achieve Highly disciplined businesses, supporting Aurizon's 25-30% >500k TEU diversified portfolio share o
Slide 26: Capital Allocation Hierarchy
Capital Allocation Hierarchy Capital Management › Opportunities if there is surplus capital Determine Available Capital Non-Growth Capital Dividends › Ongoing operating cash flows › Sustaining and transformation › Within 70-100% payout ratio → › Additional funding capacity projects and/or available
Slide 27: Global crude steel production and thermal coal import
GLOBAL CRUDE STEEL PRODUCTION | BLAST FURNACE-BASIC OXYGEN FURNACE ASIA: THERMAL (STEAM) COAL IMPORT VOLUME | SHARE OF GLOBAL THERMAL SHARE1 (STEAM) COAL IMPORT MARKET2 88% 2.0bt 1,200mt 90% +3% 1,000mt 80% 1.5bt 800mt 70% 1.0bt 600mt 60% 74% 73% 71% 400mt 50% 0.5bt 69% 65% 200mt 35% 40% 55% 58% 62%
Slide 28: Base metals exploration, mining capex and grain export volume
AUSTRALIA: BASE METALS EXPLORATION EXPENDITURE1 GRAIN EXPORT VOLUME: CY20243 Financial year By State (million tonnes), change compared to CY2023 A$1.2b A$0.9b A$0.6b 7.8 14.7 A$0.3b 5.6 5.2 2.9 A$0.0b FY20 FY21 FY22 FY23 FY24 WA Vic. SA NSW Qld. AUSTRALIA: METAL ORE MINING CAPITAL EXPENDITURE2 AUSTR
Slide 29: Quarterly volumes
Quarter Ending Financial Year to date Mar-24 Jun-24 Sep-24 Dec-24 1HFY2024 1HFY2025 Variance Coal CQCN mt 31.8 34.3 34.0 35.8 66.3 69.8 5% NSW & SEQ mt 14.2 14.6 14.7 14.7 27.7 29.4 6% Coal Total Volumes mt 46.0 49.0 48.6 50.5 94.0 99.2 6% CQCN NTKs bn 7.8 8.5 8.5 9.0 16.8 17.4 4% NSW & SEQ NTKs bn
Slide 30: Enterprise agreements
# Staff Headline Increases Term Enterprise Agreement Covered Expiry Date Status (years) Year 1 Year 2 Year 3 Year 4 (approx.) SA Stevedoring Port Pirie1 60 - 30 Sep 2024 Bargaining SA Stevedoring Port Adelaide1 50 - 30 Sep 2024 Bargaining WA Bulk Rollingstock Maintenance 90 4 10 May 2025 3.0% 3.0% 2
Slide 31: EBITDA by segment
1HFY2025 1HFY2024 Variance 2HFY2024 Coal 264 283 (19) 245 Bulk 84 112 (28) 117 Network 495 486 9 444 Other (29) (34) 5 (29) EBITDA 814 847 (33) 777 31 1. Continuing operations
Slide 32: EBITDA bridge 1HFY2024 to 1HFY2025
9 847 19 28 814 5 1HFY2024 Network Coal Bulk Other 1HFY2025 1. Continuing operations 32 Note: Due to rounding, the sum of components may not equal the corresponding total
Slide 33: Summary balance sheet
31 December 2024 30 June 2024 31 December 2023 Current assets 910 991 1,221 Property, plant and equipment (PP&E) 10,187 10,153 10,072 Other non-current assets 490 452 419 Total Assets 11,587 11,596 11,712 Total borrowings (5,131) (4,897) (5,165) Other current liabilities (715) (772) (706) Other non-
Slide 34: Debt maturity profile: Aurizon Network and Operations
1,140 AURIZON NETWORK ($m) 450 778 550 50 425 372 368 690 310 50 264 242 115 500 80 300 50 240 120 145 184 122 82 68 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 AURIZON OPERATIONS ($m) 700 200 465 315 225 500 196 153 103 150 50 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 F
Slide 35: Capital expenditure by segment
Bulk & Network Coal Corporate Total Containerised Freight Non-Growth2 199 46 47 7 299 Growth - 5 39 - 44 Total 199 51 86 7 343 1. Includes capitalised interest and capital accruals. Excludes any M&A activity and any Network externally funded projects 2. Non-Growth capital expenditure includes $26m f
Slide 36: Reconciliation of total debt to financial statements
$m Commentary Total debt including working capital facility 5,219 Borrowings on a cash basis Reconciliation to Financial Statements Add/(less): Borrowings acquired in connection with the Tarcoola-to-Darwin Concession Deed for face value of $50m Corporation Loan 6 issued at below market interest rate
Slide 37: Coal financial summary
$m 1HFY2025 1HFY2024 Variance 2HFY2024 Above rail 659 642 3% 624 Track access 245 237 3% 223 Other 9 8 13% 9 Total Revenue 913 887 3% 856 Access costs (250) (243) (3%) (231) Operating costs (399) (361) (11%) (380) EBITDA 264 283 (7%) 245 Depreciation & Amortisation (103) (104) 1% (109) EBIT 161 179
Slide 38: Coal volumes by corridor
1HFY2025 1HFY2024 Variance 2HFY2024 Central Queensland Coal Network (CQCN) Newlands 6.5 6.7 (2%) 6.5 Goonyella 31.1 28.0 11% 30.2 Blackwater 24.2 24.0 1% 22.8 Moura 8.0 7.7 5% 6.6 Total CQCN 69.8 66.3 5% 66.2 New South Wales and South-East Queensland (NSW & SEQ) West Moreton 2.4 1.7 44% 1.8 Hunter V
Slide 39: Coal contract volume expiry
AURIZON COAL CONTRACT VOLUME EXPIRY BY YEAR1 COAL CONTRACT PORTFOLIO EXPIRY1 AS AT 31 DECEMBER 2024 AS AT 31 DECEMBER 2024 75 6% 27% 0-3 years 3-7 years 60 7+ years Million tonnes per annum (Mtpa) 45 67% COAL CONTRACTED VOLUMES (MT) 30 228 234 ~230 60 66 15 168 169 0 FY25 FY26 FY27 FY28 FY29 FY30 FY
Slide 40: Bulk financial summary
$m 1HFY2025 1HFY2024 Variance 2HFY2024 Revenue and other income 560 559 - 537 Access costs (62) (61) (1%) (56) Operating costs (excluding Access Costs) (414) (386) (7%) (364) EBITDA 84 112 (25%) 117 Depreciation & Amortisation (64) (60) (7%) (68) EBIT 20 52 (62%) 49 Above Rail Tonnes (m) 27.5 34.1 (
Slide 41: Network financial summary
$m 1HFY2025 1HFY2024 Variance 2HFY2024 Track Access 708 694 2% 646 Services & Other 28 64 (56%) 31 Revenue 736 758 (3%) 677 Energy & Fuel (69) (84) 18% (76) Other Operating Costs (172) (188) 9% (157) EBITDA 495 486 2% 444 Depreciation & Amortisation (182) (174) (5%) (179) EBIT 313 312 - 265 Tonnes (
Slide 42: Network volumes by system
1HFY2025 1HFY2024 Variance 2HFY2024 Goonyella 54.5 51.9 5% 52.2 Blackwater 28.4 28.4 - 26.3 Moura 8.2 8.2 - 6.7 Newlands 10.3 9.7 6% 9.9 GAPE 8.8 8.3 6% 8.1 Total (mt) 110.2 106.5 3% 103.1 42 Note: Due to rounding, the sum of components may not equal the corresponding total
Slide 43: Network revenue breakdown
1HFY2025 1HFY2024 $m Change Actual Actual Allowable Revenue excluding GAPE and Revenue Cap 572 529 42 Revenue Cap excluding GAPE 19 15 4 Volume-Related Over/Under Recovery excluding GAPE (1) 27 (28) Actual Allowable Revenue excluding GAPE 589 571 18 GAPE Regulatory and Non-Regulatory 81 80 1 Electri
Slide 44: Indicative Network Adjusted Maximum Allowable Revenue FY2024-FY2027
INDICATIVE NETWORK ADJUSTED MAXIMUM ALLOWABLE REVENUE (MAR)1 FY2024 – FY2027 ($M) 1,224 +$26m Adjustments 1,207 40 +$68m 24 Adjustments 13 1,181 45 38 5 76 24 Over- Adjustments collection 1,113 19 15 38 29 1,095 FY24 Actual Cap Rec Rev Cap FY22 Rev Cap FY23 MAR Change Rebates FY253 Rev Cap FY23 Rev
Slide 45: Revenue adjustment amounts
AT2-4 AT5 Total Total › Revenue adjustment amounts (RAA) are the difference by system Financial Year (inc-GAPE) (ex-GAPE) between Aurizon’s Total Actual AT2-5 Revenue and Allowable AT2-5 $m $m $m $m Revenue › The RAA amounts are collected or repaid through a tariff adjustment 2024 1 20.1 8.2 28.3 23
Slide 46: Jason Di Pietro, Manager Investor Relations
Jason Di Pietro Manager Investor Relations — +617 3019 1135 é Jason.DiPietro@aurizon.co! ASX: AZJ