Slide 1: Transurban Investor Briefing
asx release 3 May 2021 For personal use only TRANSURBAN INVESTOR BRIEFING Transurban today provides the attached presentation that will be presented at the Transurban Investor Day today. The presentation will be webcast live at 9.30am (AEST) today, 3 May 2021 and can be viewed via the Transurban web
Slide 2: Investor Day
For personal use only INVESTOR DAY
Slide 3: Disclaimer and Basis of Preparation
DISCLAIMER AND BASIS OF PREPARATION For personal use only 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 Trans
Slide 4: Agenda
AGENDA For personal use only 1 CEO INTRODUCTION AND INVESTMENT PROPOSITION 7 CAPITAL MANAGEMENT DISCUSSION 2 TRAFFIC AND MOBILITY TRENDS 8 PROJECTS AND PARTNERSHIPS 3 NORTH AMERICA 9 CEO INVESTMENT PROPOSITION DISCUSSION BREAK 4 CUSTOMER AND TECHNOLOGY 10 Q&A SESSION 2 5 ENVIRONMENTAL, SOCIAL AND GO
Slide 5: What You Wanted Covered Today
WHAT YOU WANTED COVERED TODAY For personal use only Growth Environmental Capital Mobility pipeline Social Governance management trends Including North America Including net zero by 2050, Including supporting growth, Including the impact of and WestConnex social licence and diversity distributions an
Slide 6: Executive Committee
EXECUTIVE COMMITTEE For personal use only Scott Charlton Henry Byrne Pierce Coffee Suzette Corr Andrew Head Chief Executive Group Executive, President, Group Executive, Chief Executive Officer Victoria and Strategy North America People and Culture Officer, WestConnex Michele Huey Michelle Jablko Sue
Slide 7: Investor Day Hub
INVESTOR DAY HUB For personal use only TRANSURBAN INVESTOR DAY | 3 MAY 2021 6
Slide 8: Group Strategy
GROUP STRATEGY For personal use only Stakeholder engagement To provide sustainable Optimal networks transport solutions that offer choice, reliability, safety, transparency Delivery and operations and value Disciplined investment TRANSURBAN INVESTOR DAY | 3 MAY 2021 7
Slide 9: Transurban Investment Proposition
TRANSURBAN INVESTMENT PROPOSITION For personal use only Leading global toll road developer and operator 21 assets located in five markets with quality structural growth drivers Balancing growth in distributions and investment in new Weighted average concession life of 29 years opportunities to creat
Slide 10: Converging Themes Driving Opportunity in Our Core Markets
CONVERGING THEMES DRIVING OPPORTUNITY IN OUR CORE MARKETS For personal use only Need for Governments Infrastructure a private-sector increasingly favouring key driver for investment given a development economic stimulus record government partner approach globally debt levels TRANSURBAN INVESTOR DAY
Slide 11: Opportunity Pipeline
OPPORTUNITY PIPELINE Material pipeline of opportunities in core markets enables Transurban to take a disciplined approach in growing the portfolio For personal use only REGION POTENTIAL OPPORTUNITIES NEXT 5 YEARS 5+ YEARS New South Wales Acquisition of the NSW Government’s 49% stake in WestConnex M7
Slide 12: Traffic and Mobility Trends
For personal use only TRAFFIC AND MOBILITY TRENDS HENRY BYRNE SUE JOHNSON GROUP EXECUTIVE, GROUP EXECUTIVE, VICTORIA AND STRATEGY QUEENSLAND
Slide 13: Essential Transport Networks
ESSENTIAL TRANSPORT NETWORKS For personal use only Recovery in group level average daily traffic (ADT) Customers continuing to use toll roads for diverse reasons1 2.5 0% 10% 20% 30% 40% 50% 60% 70% Seasonal holiday period Travelling to or from work during the week 2.0 North America ADT AVERAGE DAILY
Slide 14: Brisbane Traffic Recovery
BRISBANE TRAFFIC RECOVERY For personal use only • On a Brisbane portfolio basis, traffic largely recovered to pre-COVID-19 levels in late 2020 in line with restrictions easing • Recovery has continued in 2021 with February average daily traffic (ADT) up 4% year on year and up 6% excluding Airportlin
Slide 15: Mobility Trends Reverting to Pre-COVID-19 Norms
MOBILITY TRENDS REVERTING TO PRE-COVID-19 NORMS For personal use only Mobility impacts from COVID-19 largely offsetting Working from home prevalence has had neutral impact on workday • Emerging indicators in Australian markets suggest that working from home is travel patterns not going to fundamenta
Slide 16: Long Term Mobility Trends Offer Opportunity
LONG TERM MOBILITY TRENDS OFFER OPPORTUNITY For personal use only Convergence of trends to create safer, more sustainable, integrated and automated road networks, supporting more kilometres travelled • Technology and policy development PROGRESSING SLOWER MINIMAL CHANGE PROGRESSING FASTER changes are
Slide 17: Growth Opportunities in North America
For personal use only GROWTH OPPORTUNITIES IN NORTH AMERICA PIERCE COFFEE PRESIDENT, NORTH AMERICA
Slide 18: Transurban - North America
TRANSURBAN - NORTH AMERICA For personal use only Experienced operator in the region • Growing portfolio of high-quality assets, with average concession length of operating 45 years 4 assets across Building regional capability in line with regional growth ambitions two markets • Growing local capabil
Slide 19: Update on Maryland Express Lanes Project
UPDATE ON MARYLAND EXPRESS LANES PROJECT For personal use only Procurement process Scope and status update • Maryland Department of Transportation (MDOT) • Phase 1 includes the right to develop approximately 60 kilometres of high-occupancy toll opted for Predevelopment Agreement (PDA) (HOT) lanes co
Slide 20: North American Recovery
NORTH AMERICAN RECOVERY For personal use only Restrictions easing, vaccine roll Traffic recovery anticipated to align with increased freedom of movement out underway • Impact to Express Lanes has been prolonged due to severity of limitations in movement in GWA, but the region is • Restrictions lifti
Slide 21: North American Growth Characteristics Represent Long-Term Opportunities
NORTH AMERICAN GROWTH CHARACTERISTICS REPRESENT LONG-TERM OPPORTUNITIES For personal use only Need for infrastructure investment PPP environment maturing Mobility trends in North American markets providing combined with increasing levels of with acceptance increasing opportunities public debt US roa
Slide 22: Customer and Technology
For personal use only CUSTOMER AND TECHNOLOGY SIMON MOORFIELD GROUP EXECUTIVE, CUSTOMER AND TECHNOLOGY
Slide 23: Customer Insights Overview
CUSTOMER INSIGHTS OVERVIEW For personal use only Insights into Transurban’s customer base Driven by data Transurban has almost 9 million customers and road users across Australia Transurban customer team analyses around 250,000 pieces of feedback and North America from Australian customers annually
Slide 24: Customer Insights COVID-19: Commercial Customers
CUSTOMER INSIGHTS COVID-19 COMMERCIAL CUSTOMERS For personal use only Key commercial customer revenue by sector1 Impacts of COVID-19 on commercial customer traffic varied across industry segments • Commercial customers make up around 20% of Transurban’s customer trips • Given the broad range of cust
Slide 25: Customer and Technology Priorities
CUSTOMER AND TECHNOLOGY PRIORITIES For personal use only Customer focused Customer trust Future driven • Listening to customers provides Transurban • Maintaining customer trust and support • Adapting to a rapid increase in data and with insights to create value, support social means getting the basi
Slide 26: Environmental, Social and Governance Panel
For personal use only ENVIRONMENTAL, SOCIAL AND GOVERNANCE PANEL
Slide 27: Environmental, Social and Governance Panel
ENVIRONMENTAL, SOCIAL AND GOVERNANCE PANEL For personal use only Michelle Jablko Andrew Head Suzette Corr Simon Moorfield Chief Financial Chief Executive Group Executive, Group Executive, Officer Officer, WestConnex People and Culture Customer and Technology TRANSURBAN INVESTOR DAY | 3 MAY 2021 26
Slide 28: ESG Investment Proposition
ESG INVESTMENT PROPOSITION For personal use only Transurban is committed to strengthening communities through transport. Providing leadership and taking action on environmental, social and governance factors is fundamental to upholding the values of the Group and to ensuring the ongoing success and
Slide 29: WestConnex Sentiment Turnaround
WESTCONNEX SENTIMENT TURNAROUND1 For personal use only 2019 2020 POSITIVE SENTIMENT TOWARDS WESTCONNEX 56% 68% MAKES TRAVELLING AROUND SYDNEY EASIER AND FASTER 60% 73% AGREE THAT IT IS GOOD FOR SYDNEY OVERALL 62% 74% POSITIVE FEELINGS ABOUT INCREASED SIGNAGE 60% 80% 1. Transurban commissioned resear
Slide 30: Diversity
DIVERSITY For personal use only Gender diversity goal: to improve gender equity and ensure all genders Cultural diversity goal: to ensure our workforce reflects the cultural have access to equal opportunities at all levels across Transurban diversity of the broader population and communities we work
Slide 31: Trip Compare Tool Provides Transparency and Choice
TRIP COMPARE TOOL PROVIDES TRANSPARENCY AND CHOICE For personal use only TRANSURBAN INVESTOR DAY | 3 MAY 2021 30
Slide 32: Helping Customers Through Hardship
HELPING CUSTOMERS THROUGH HARDSHIP For personal use only Support granted in 2020 Linkt Assist • $10.1 million in toll credits • Ongoing commitment to support • >40,000 people Australian customers experiencing social or financial hardship Take up of 2020 toll credit program • Support services include
Slide 33: Net Zero Commitments
NET ZERO COMMITMENTS For personal use only Transurban has committed to net zero GHG emissions by 2050, which extends our existing 2030 GHG emissions reduction targets1 Scope 1: Fuel Scope 2: Electricity Scope 3: Supply Chain Scope 3: Major Projects 50% reduction by 2030 22% reduction by 2030 55% red
Slide 34: Q&A Session One
For personal use only Q&A SESSION ONE
Slide 35: Q&A Session One
Q&A SESSION ONE For personal use only Henry Byrne Suzette Corr Andrew Head Sue Johnson Simon Moorfield Group Executive, Group Executive, Chief Executive Group Executive, Group Executive, Victoria and Strategy People and Culture Officer, WestConnex Queensland Customer and Technology TRANSURBAN INVEST
Slide 36: Capital Management
For personal use only CAPITAL MANAGEMENT MICHELLE JABLKO CHIEF FINANCIAL OFFICER WITH TOM MCKAY GM, TREASURY AND CAPITAL MARKETS
Slide 37: Resilience Through COVID-19
RESILIENCE THROUGH COVID-19 For personal use only Asset resilience Liquidity buffers Rating agencies and covenants Traffic resilience from diversified Sufficient liquidity to meet short and Maintained credit ratings and sufficient regional presence, trip sources medium-term commitments covenant head
Slide 38: Capital Management Approach Supports Investment Proposition
CAPITAL MANAGEMENT APPROACH SUPPORTS INVESTMENT PROPOSITION For personal use only Robust balance sheet provides optionality for investment in new opportunities Balancing growth in Resilient cash flows underpinned by essential infrastructure distributions and investment in new opportunities to create
Slide 39: Near-Term Growth Opportunities
NEAR-TERM GROWTH OPPORTUNITIES Chesapeake transaction proceeds and Capital Releases to help fund near-term growth opportunities For personal use only Committed projects / SPEND TO-DATE1 2H21 FY22 FY23 FY24 projects under development2 $600M WESTCONNEX—Sydney ($0.8B)3 $2,550M WEST GATE TUNNEL PROJECT—
Slide 40: Near-Term Interest Rate Exposure
NEAR-TERM INTEREST RATE EXPOSURE For personal use only Average cost of upcoming term debt maturities above average cost of debt1 Embedded CPI escalation strengthens interest rate hedge2,3 Average cost of 5% 5% 2% 5% maturing term debt 1.5 1.2 MATURITIES (A$ BILLIONS) 0.9 CPI or greater No CPI floor
Slide 41: Projects and Partners
For personal use only PROJECTS AND PARTNERS HUGH WEHBY MICHELE HUEY GROUP EXECUTIVE, GROUP EXECUTIVE, PARTNERS, DELIVERY NEW SOUTH WALES AND RISK
Slide 42: Health and Safety
HEALTH AND SAFETY For personal use only Our Contractor Road people safety safety safety Focusing on empowering our people to Striving to develop collaborative Working proactively with the community, demonstrate proactive health and safety relationships with contractors and clients research groups an
Slide 43: Value of Partnerships
VALUE OF PARTNERSHIPS For personal use only Financial support and flexibility Partnership non-negotiables • Equity partnerships provide Transurban with additional funding capacity to pursue an ambitious growth pipeline in • Transurban has pursued both Australia and North America, while supporting cr
Slide 44: Partner Video
PARTNER VIDEO For personal use only “AustralianSuper trusts NIK KEMP that Transurban will deliver HEAD OF INFRASTRUCTURE, AUSTRALIANSUPER on its projects… we're both very aligned, when we undertake projects together, to deliver long-term value” TRANSURBAN INVESTOR DAY | 3 MAY 2021 43
Slide 45: West Gate Tunnel Project
WEST GATE TUNNEL PROJECT1 For personal use only Tunnelling Update • Commencement of tunnelling requires resolution on a range of matters, including spoil disposal site/s preparatory works and progressing commercial matters • Spoil disposal sites at various stages of approval, with two sites now gran
Slide 46: West Gate Tunnel Update Video
WEST GATE TUNNEL UPDATE VIDEO For personal use only Major works continuing • Over 23 million worker hours have been clocked by the workforce to date • Over 1,000 noise wall panels installed to date, representing in excess of 30 per cent of total walls • A three-month summer construction blitz progra
Slide 47: WestConnex
WESTCONNEX For personal use only Transurban is the operator of the WestConnex assets, with an agreement in place through to the end of concession in 2060 Major development completed with additional stages well in hand Integration and operations • Major projects in the network (the M4 widening, New M
Slide 48: WestConnex Sale Process
WESTCONNEX SALE PROCESS For personal use only Transaction approach1 Party Third State STP • Expressions of Interest have been solicited for the Transaction Formal bid process Offer Offer Completion remaining NSW Government stake and the formal sale phase 2Q 2021 T1 T22 date process is expected to co
Slide 49: TCL Investment Proposition
For personal use only TCL INVESTMENT PROPOSITION SCOTT CHARLTON CHIEF EXECUTIVE OFFICER WITH TOM PIOTROWSKI MARKET ANALYST
Slide 50: Q&A Session Two
For personal use only Q&A SESSION TWO
Slide 51: Q&A Session Two
Q&A SESSION TWO For personal use only Scott Charlton Pierce Coffee Michele Huey Michelle Jablko Hugh Wehby Chief Executive President, Group Executive, Chief Financial Group Executive, Officer North America New South Wales Officer Partners, Delivery and Risk TRANSURBAN INVESTOR DAY | 3 MAY 2021 50
Slide 52: Summary
SUMMARY For personal use only 1 2 3 4 5 6 Strategy tested Positive culture Integrated Robust Opportunities Future state of and resilience and refreshed approach to capital position in core markets mobility presents proven through leadership position ESG working to provides funding for ongoing opport
Slide 53: For personal use only
For personal use only TRANSURBAN INVESTOR DAY | 3 MAY 2021
Slide 54: Supplementary Information
For personal use only SUPPLEMENTARY INFORMATION
Slide 55: Update Traffic
For personal use only UPDATE TRAFFIC
Slide 56: Monthly Traffic Performance by Asset
MONTHLY TRAFFIC PERFORMANCE BY ASSET1 For personal use only Transurban M4 M5 West M7 CCT M2 ED LCT CityLink Logan Gateway Legacy Clem7 GBB AirportlinkM7 A25 95 495 Group 2 30% 28% 24% 20% 23% 22% 21% 20% 20% 18% 16% 15% 14% 14% 10% 13% 13% 13% 11% 4% 9% 4% 3% 8% 3% 5% 6% 5% 5% 1% 1% 1% 0% 0% 4% 3% 0
Slide 57: COVID-19 Restrictions
COVID-19 RESTRICTIONS For personal use only REGION CURRENT RESTRICTIONS LIMITING MOVEMENT1 OUTLOOK New South Wales Density restrictions eased throughout NSW, with no cap on offices, retail, venues, hospitality, entertainment Limited international travel via travel bubble arrangements. or visitors to
Slide 58: Glossary
GLOSSARY TERM DEFINITION TERM DEFINITION 95 95 Express Lanes M8 M8 (previously the New M5) 395 395 Express Lanes MD Maryland, United States of America For personal use only 495 495 Express Lanes MDOT Maryland Department of Transportation 1H/2H First or second half of a financial year (unless specifi