Transurban Group Ltd. · ASX:TCL
Transurban — Investor Day (April 2013)
68 slides from Transurban's investor day presentation, Apr 19, 2013
Slide 1: ASX release: Investor Presentation
asx release For personal use only 19 April 2013 Investor Presentation Please find attached a presentation that will be provided at a Transurban investor day today. The presentation will also be webcast live from 9:15 am AEST on the Transurban website: www.transurban.com. A video of this presentation
Slide 2: Transurban 2013 Investor Day
For personal use only TRANSURBAN 2013 INVESTOR DAY 19 APRIL 2013
Slide 3: Disclaimer
For personal use only DISCLAIMER This publication is prepared by the Transurban Group comprising Transurban Holdings Limited (ACN 098 143 429), Transurban Holding Trust (ARSN 098 807 419) and Transurban International Limited (ACN 121 746 825). The responsible entity of Transurban Holding Trust is Tr
Slide 4: Welcome
For personal use only WELCOME SCOTT CHARLTON
Slide 5: Agenda
For personal use only AGENDA TIME PRESENTATION SPEAKER 09:15 WELCOME SCOTT CHARLTON – Chief Executive Officer 09:30 STRATEGY WESLEY BALLANTINE – Group General Manager Strategy 10:00 NSW MARKET UPDATE ANDREW HEAD – Group General Manager NSW TIM STEINHILBER – Group General Manager Delivery and Operati
Slide 6: Strategy Confirmation
STRATEGY CONFIRMATION For personal use only ROAD CLEAR INFRASTRUCTURE COMPETITIVE MARKET PARTNER OF ADVANTAGE DEFINITION CHOICE
Slide 7: Strategy
For personal use only STRATEGY WESLEY BALLANTINE
Slide 8: Strategic Approach
STRATEGIC APPROACH For personal use only ACTIVE MANAGEMENT LEVERAGE NETWORKS ASSET ENHANCEMENTS INNOVATIONS ORGANIC GROWTH
Slide 9: Growth in Sydney
For personal use only GROWTH IN SYDNEY NETWORK DEMOGRAPHICS 7
Slide 10: Growth in Melbourne
GROWTH IN MELBOURNE NETWORK DEMOGRAPHICS For personal use only
Slide 11: Asset Lifecycle
For personal use only ASSET LIFECYCLE AUSTRALIAN PORTFOLIO GROWTH CHARACTERISTICS 9
Slide 12: Asset Lifecycle
ASSET LIFECYCLE AUSTRALIAN PORTFOLIO GROWTH CHARACTERISTICS For personal use only
Slide 13: Monash-CityLink-West Gate Upgrade
For personal use only MONASH-CITYLINK-WEST GATE UPGRADE UNLOCKING CAPACITY FORECAST UPLIFT ON CITYLINK FROM MONASH-CITYLINK-WEST GATE UPGRADE PROJECT 11
Slide 14: Asset Lifecycle
ASSET LIFECYCLE AUSTRALIAN PORTFOLIO GROWTH CHARACTERISTICS For personal use only
Slide 15: Hills M2 Upgrade
For personal use only HILLS M2 UPGRADE UNLOCKING CAPACITY FORECAST UPLIFT FROM HILLS M2 UPGRADE PROJECT 13
Slide 16: Efficient Network Usage
EFFICIENT NETWORK USAGE CO-ORDINATED RAMP METERING For personal use only Co-ordinated ramp metering on Monash Freeway – demonstrated improvements in speed and flow1 Before (Oct 2007) After (Oct 2008) Change Average Flow (vehicle/hr/lane) 1731 1816 +4.9% Travel Speed (km/h) 48.9 66 +34.9% Average Del
Slide 17: Innovative Network Management
For personal use only INNOVATIVE NETWORK MANAGEMENT EXPRESS LANES 15
Slide 18: Policy
POLICY NETWORK EFFICIENCIES For personal use only GREATER INTEGRATED FUND INVESTMENT PRICING MANAGE EFFICIENCIES IN MODES OF IN TRANSPORT MECHANISMS DEMAND ROAD NETWORK TRANSPORT INFRASTRUCTURE
Slide 19: Sustainability
For personal use only SUSTAINABILITY ENHANCING OUR LICENCE TO OPERATE BE GOOD USE THINK NEIGHBOURS LESS LONG-TERM MANAGEMENT METHODOLOGY 17
Slide 20: Economic and Community Benefits
ECONOMIC AND COMMUNITY BENEFITS TOLL ROAD NETWORKS For personal use only ENHANCED SAFETY $14.5 BILLION $22.7 BILLION LOWER CARBON COMMUNITY BENEFITS NPV ECONOMIC EMISSIONS CONTRIBUTION CONNECTIVITY M1 – CITYLINK SYDNEY’S TOLL UPGRADE* DEVELOPMENT ROAD NETWORK – 2008* EMPLOYMENT *Victorian Government
Slide 21: NSW Market Update
For personal use only NSW MARKET UPDATE ANDREW HEAD & Tim STEINHILBER
Slide 22: NSW Market Overview
NSW MARKET OVERVIEW For personal use only Hills M2 Upgrade Nearing completion F3–M2 (M3) Proposal Hills M2 / LCT O&M integration and Lane Cove Road On-Ramp M5 West Widening Under construction
Slide 23: Hills M2 Upgrade
For personal use only HILLS M2 UPGRADE COMPLETION EXPECTED AUGUST 2013 Windsor Rd Herring/Christie Toll increases Traffic Concession ramps Rd ramps PHR Plaza uplift extension Opened Opened April 2013 and other From mid 2013 4 years – 25 July 2012 20 January 2013 toll points Aug 2013 2042 to 2046 PRO
Slide 24: Hills M2 Upgrade Near-Term Returns
HILLS M2 UPGRADE NEAR-TERM RETURNS For personal use only 14.5% 22.2% 8.8% 15 APRIL 2013 AT COMPLETION $3.15 $2.75 $6.05 $4.95 $2.98* & $1.94 $2.74 $2.11* * PENNANT HILLS MAIN PLAZA MACQUARIE PARK* ROAD PLAZA & WINDSOR ROAD** RAMPS Increases are estimates based on indexation assumptions and timing of
Slide 25: Hills M2 Upgrade Unlocking Capacity
For personal use only HILLS M2 UPGRADE UNLOCKING CAPACITY FORECAST UPLIFT FROM HILLS M2 UPGRADE PROJECT 23
Slide 26: Lane Cove Tunnel Asset Integration
LANE COVE TUNNEL ASSET INTEGRATION AND OPTIMISATION For personal use only PRE-ACQUISITION OPERATING LANE COVE ROAD CONSOLIDATION 42% 65% O&M RAMP MARGIN* MARGIN** *Based on FY09 normalised results **Delivered 31 December 2010
Slide 27: M5 West Widening
For personal use only M5 WEST WIDENING PROGRESS ON SCHEDULE 25
Slide 28: Diversified Funding Sources
DIVERSIFIED FUNDING SOURCES For personal use only HILLS M2 UPGRADE M5 WEST WIDENING TRAFFIC CONCESSION TRAFFIC UPLIFT EXTENSION UPLIFT TOLL NEW CONCESSION TRUCK TOLL INCREASE RAMPS EXTENSION MULTIPLIER
Slide 29: M3 Proposal
For personal use only M3 PROPOSAL PROPOSED ALIGNMENT 27
Slide 30: M3 Proposal
M3 PROPOSAL THREE STAGE UNSOLICITED PROPOSAL PROCESS For personal use only STAGE 1 STAGE 2 STAGE 3 CURRENT STATUS D&C PROCUREMENT, UNSOLICITED PROPOSAL ENVIRONMENTAL ASSESSMENT EARLY 2012 FINANCIAL CLOSE TARGETED FOR LATE 2014
Slide 31: Missing Links
For personal use only MISSING LINKS NSW LONG-TERM TRANSPORT MASTER PLAN 29
Slide 32: Victorian Market Update / Technology
For personal use only VICTORIAN MARKET UPDATE / TECHNOLOGY VIN VASSALLO & LISA TOBIN
Slide 33: Victorian Market Overview
VICTORIAN MARKET OVERVIEW For personal use only Southern Link Southern Link traffic growth since upgrade completion 2010 Western Link CITYLINK • Capacity constraint WESTERN LINK • Major resurfacing work undertaken SUCCESSFUL ROLLOUT CITYLINK SOUTHERN LINK OF GLIDE ON CITYLINK
Slide 34: Monash-CityLink-West Gate Upgrade
For personal use only MONASH-CITYLINK-WEST GATE UPGRADE UNLOCKING CAPACITY FORECAST UPLIFT ON CITYLINK FROM MONASH-CITYLINK-WEST GATE UPGRADE PROJECT 33
Slide 35: Tunnel Speeds
TUNNEL SPEEDS STRENGTHENED VALUE PROPOSITION For personal use only
Slide 36: Increased Throughput
For personal use only INCREASED THROUGHPUT UNLOCKING CAPACITY TIME OF DAY TRAVEL – SOUTHERN LINK OUTBOUND (YARRA BLVD) 35
Slide 37: Bolte Bridge Opportunity
BOLTE BRIDGE OPPORTUNITY For personal use only
Slide 38: Western Link
For personal use only WESTERN LINK 37
Slide 39: Missing Links
MISSING LINKS For personal use only POTENTIAL NORTH EAST East West Link LINK
Slide 40: GLIDE: Roadside to Customer
For personal use only GLIDE ROADSIDE TO CUSTOMER ROADSIDE EQUIPMENT Communication & payment channels CUSTOMER Interoperability Identification & enforcement 39
Slide 41: Customer Management
CUSTOMER MANAGEMENT EFFICIENCIES ACHIEVED For personal use only CUSTOMER MOVING TO WEB DUE TO ENHANCED CAPABILITIES
Slide 42: Technology: End-to-End Systems Approach
For personal use only TECHNOLOGY END-TO-END SYSTEMS APPROACH TARGET OPERATING ENVIRONMENT BACK OFFICE SYSTEM Electronic Toll Collection Pricing System Traffic Management System Maintenance Online Management System Tolling Roadside Equipment TMS Roadside Equipment 41
Slide 43: Technology: Stable Future
TECHNOLOGY STABLE FUTURE - LONG TERM PLANNING REQUIRED For personal use only Source: Deloitte report - Building the Lucky Country #2 Digital Disruption: Short fuse, big bang?
Slide 44: USA Market Update
For personal use only USA MARKET UPDATE MICHAEL KULPER & Tim STEINHILBER
Slide 45: US Market Overview
US MARKET OVERVIEW For personal use only TRANSURBAN ASSETS
Slide 46: Express Lanes Effective Start Up
For personal use only 495 EXPRESS LANES EFFECTIVE START UP B A 495 Express Lanes A B New ramps C Flexible divider posts B C C 45
Slide 47: Solid Foundation
SOLID FOUNDATION FOCUS ON VALUE DRIVERS For personal use only EFFECTIVE NORTHERN TOLL DELIVERY & EFFECTIVE SPEED LIMIT SETTING VALUE MARKETING TERMINUS OPERATIONS OPERATIONS INCREASE INITIATIVES PROGRAM ALIGNMENT APPROACH START UP
Slide 48: Trip Mix
For personal use only TRIP MIX IN LINE WITH EXPECTATIONS 47
Slide 49: Toll Price Increasing
TOLL PRICE INCREASING MAJOR DRIVER OF REVENUE GROWTH For personal use only (1) E-ZPass Toll Revenue; excludes revenue from violations. Weekday is Monday – Friday, excluding holidays.
Slide 50: Maximum Toll Price
For personal use only MAXIMUM TOLL PRICE WEEKDAY MAX TOLL CHARGED1 FOR END TO END TRIP (1) Maximum toll charged per weekday E-ZPass Trip (weekday is Monday – Friday, excluding holidays). 49
Slide 51: Growing the Customer Base
GROWING THE CUSTOMER BASE POSITIVE EXPERIENCES AND LARGE MARKET TO TAP For personal use only 75% of customers likely to use again 40% of frequent Beltway travellers say they are likely to use the Express Lanes 67% haven’t tried Express Lanes yet
Slide 52: Express Lanes Comparative Profiles
For personal use only 95 EXPRESS LANES COMPARATIVE PROFILES LENGTH LENGTH 29 miles 12 miles CONFIGURATION CONFIGURATION 2 – 3 reversible lanes 2 lanes in each direction FACILITY TYPE FACILITY TYPE Radial Circumferential CAPACITY CAPACITY 17%1 50% GENERAL PURPOSE LANE IMPACTS GENERAL PURPOSE LANE IMP
Slide 53: Express Lanes Project Update
95 EXPRESS LANES PROJECT UPDATE For personal use only 31% COMPLETE GOOD SAFETY RECORD 45 OUT OF 51 DESIGN PACKAGES APPROVED CONSTRUCTION OF BRIDGES & FLYOVER RAMPS UNDER WAY
Slide 54: Structure
For personal use only SUE JOHNSON STRUCTURE
Slide 55: Core Competencies
CORE COMPETENCIES For personal use only NETWORK OPERATIONS PROJECT APPLICATION OF COMMUNITY PLANNING & & CUSTOMER DEVELOPMENT TECHNOLOGY ENGAGEMENT FORECASTING MANAGEMENT & DELIVERY
Slide 56: Matrix Structure
For personal use only DELIVERY MATRIX STRUCTURE VIC NSW USA FINANCE DELIVERY TECHNOLOGY STRATEGY HR 55
Slide 57: Delivery & Operations
DELIVERY & OPERATIONS For personal use only VIC NSW USA DELIVERY • Major projects: • Hills M2 Upgrade • 95 Express Lanes • M5 West Widening • M3 • Operations and maintenance
Slide 58: Network Planning and Forecasting
For personal use only NETWORK PLANNING AND FORECASTING VIC NSW USA STRATEGY • Traffic services group - Network models - Input to major projects - Sector-leading capability
Slide 59: Investment Process
For personal use only INVESTMENT PROCESS SAMANTHA HOGG
Slide 60: Investment Evaluation Process
INVESTMENT EVALUATION PROCESS For personal use only PORTFOLIO FIT RISK PROFILE • Network features • Project characteristics • Demographics • Risk allocation • Future growth • Cash flow profile PROSPECTIVE INVESTMENT EVALUATION CONTRACTUAL KEY METRICS PROTECTIONS • Investment returns • Concession ter
Slide 61: Strategic Opportunities
For personal use only STRATEGIC OPPORTUNITIES • Negotiated transactions LEVERAGE NEAR TERM • Existing roads – brownfields risk NETWORKS • Multiple funding sources RETURNS ACHIEVABLE (tolls, concessions, etc) 61
Slide 62: Diversified Funding Sources
DIVERSIFIED FUNDING SOURCES For personal use only HILLS M2 UPGRADE M5 WEST WIDENING CONCESSION TRAFFIC TRAFFIC EXTENSION UPLIFT UPLIFT TOLL NEW CONCESSION TRUCK TOLL INCREASE RAMPS EXTENSION MULTIPLIER
Slide 63: Investment Criteria
For personal use only INVESTMENT CRITERIA BENCHMARK EXPECTED FUNDING FUNDING BASE CASE UPFRONT DISTRIBUTION PROJECT INVESTMENT EQUITY PROFILE RETURNS DECISION RETURNS RISK ADJUSTED 63
Slide 64: Growing Balance Sheet Capacity
GROWING BALANCE SHEET CAPACITY For personal use only
Slide 65: Long Gestation for Projects
For personal use only LONG GESTATION FOR PROJECTS NEGOTIATION PHASE CONSTRUCTION PHASE 3 YEARS M2 2007 – 2010 Dec 2010 – Aug 2013 Earlier proposal 2008 2 YEARS M5 Apr 2010 – June 2012 July 2012 – late 2014 95 2005 – 2012 2 YEARS 65
Slide 66: Summary
For personal use only SUMMARY SCOTT CHARLTON
Slide 67: Summary
SUMMARY For personal use only STRATEGY NETWORK GROWTH DISCIPLINED STRENGTHENED CONFIRMED LEVERAGE OPPORTUNITIES APPROACH TEAM 69
Slide 68: For personal use only
For personal use only