Transurban Group Ltd. · ASX:TCL
Transurban — H1 FY2013 Earnings Presentation
54 slides from Transurban's earnings presentation, Feb 5, 2013
Slide 1: Transurban Investor Presentation (ASX release)
asx release For personal use only 5 February 2013 Transurban Investor Presentation Please find attached the Investor Presentation that will be given to analysts this morning. Amanda Street Company Secretary Investor and Media enquiries Henry Byrne: +61 2 9254 4938 hbyrne@transurban.com General Manag
Slide 2: Transurban 2013 Half-Year Results
For personal use only TRANSURBAN 2013 HALF-YEAR RESULTS 5 February 2013
Slide 3: Disclaimer
DISCLAIMER For personal use only This publication is prepared by the Transurban Group comprising Transurban Holdings Basis of preparation Limited (ACN 098 143 429), Transurban Holding Trust (ARSN 098 807 419) and This document includes presentation of results on a statutory as well as non-statutory
Slide 4: Agenda
AGENDA For personal use only 1. Scott Charlton Chief Executive Officer Financial highlights Strategy confirmation Market update 2. Samantha Hogg Chief Financial Officer 2013 half-year results Funding update Investor and media enquiries: Henry Byrne: hbyrne@transurban.com 2
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only Resilient traffic across portfolio GROWING DISTRIBUTIONS 6.9% proportional EBITDA growth 4.6% growth in free cash flow Continuing cost discipline Ongoing enhancement of portfolio $5 billion capital project pipeline coming on-line FY13 distribution guidance
Slide 6: FY13 Highlights
FY13 HIGHLIGHTS For personal use only Operations Development Corporate Tolling and Hills M2 84% Restructured operations complete – on executive team successfully schedule for Interim distribution of implemented on mid-2013 completion 15.5 cents delivered 495 Express Lanes 95 Express Lanes FY13 distr
Slide 7: Safety
SAFETY For personal use only “Look up. Stay back” 495 Express Lanes Hills M2 Upgrade campaign on CityLink in achieved five million roadworks safety partnership with safe work hours and campaign Murcotts operating safely Partnership with Aims to cut the number “Bstreetsmart” initiative of nose-to-tai
Slide 8: Strategy Confirmation
STRATEGY CONFIRMATION For personal use only Road infrastructure partner of choice providing effective and innovative urban transport solutions Leverage network footprint Leading role in shaping policy Utilise core capabilities Network planning and forecasting Operations and customer management Proje
Slide 9: Executive Committee
EXECUTIVE COMMITTEE For personal use only Restructured corporate team to best deliver strategy Consolidating senior leadership in: Delivery and operations Technology Human resources Scott Charlton Strategy (includes network Chief Executive planning) Officer Vin Sue Lisa Johnson Tobin Samantha Hogg V
Slide 10: Market Update: Victoria
MARKET UPDATE VICTORIA For personal use only CityLink a critical artery in Melbourne transport network contributing to productivity Continued traffic growth demonstrated through first half of FY13 Further upgrades to CityLink being considered Government targeting further network development Metropol
Slide 11: Market Update: New South Wales
MARKET UPDATE NEW SOUTH WALES For personal use only Government focused on major activity centres and connecting corridors NSW Long-Term Transport Master Plan released in December 2012 WestConnex business case being developed by Government F3-M2 (M3) proposal with NSW Government Leverage existing net
Slide 12: Market Update: USA
MARKET UPDATE USA For personal use only 495 Express Lanes – next generation of motorway commenced operations Market-leading skills in dynamically tolled express lane projects and operations Network footprint around Washington DC further developing with 95 Express Lanes Transurban assets 10
Slide 13: Asset Snapshot
ASSET SNAPSHOT For personal use only Resilient traffic despite construction impacts across portfolio Proportional EBITDA increased 6.9%1 % OF PROPORTIONAL TRAFFIC TOLL REVENUE ASSET EBITDA GROWTH (%) TOLL REVENUE GROWTH (%) GROWTH (%) 49.8% CityLink 2.0% 5.3%2 5.6%2 14.5% Hills M2 (2.0%) (1.7%) (1.9
Slide 14: Hills M2 Upgrade
HILLS M2 UPGRADE For personal use only Construction 84% complete Opening targeted for mid-2013, positioning for strong FY14 Windsor ramps opened to traffic July 2012 Macquarie Park ramp completed January 2013 Staggered opening of final works New roadside tolling equipment commissioned and operating
Slide 15: M5 South West Widening
M5 SOUTH WEST WIDENING For personal use only Construction under way Targeted completion end of 2014 Extra lanes in each direction over 21kms Construction divided into three zones and 22% complete Progress has included: Excavation and stabilisation work in the median First asphalt in zone one 13
Slide 16: Express Lanes (495 construction)
95 EXPRESS LANES For personal use only Work commenced August 2012 23% complete Estimated completion late 2014 29 mile (46km), reversible two and three lane express lanes facility Construction includes: Nine new bridges Four flyover ramps Noise and retaining walls Widening roadway for additional HOV
Slide 17: Express Lanes (Opened November 2012)
495 EXPRESS LANES For personal use only Opened to traffic in November 2012 Operations and tolling system functioning well Initial traffic below expectations Adjustment to traffic patterns and motorist preferences required Road user awareness growing and expected to develop Biggest change to local ne
Slide 18: Delivering
DELIVERING For personal use only Established growth platform Existing pipeline delivering progressively 95 Express Lanes M5 Widening $943.9m $891.0m Hills M2 Upgrade $773.9m $724.9m $688.7m 495 Express Lanes M1 – CityLink Upgrade Lane Cove Tunnel 2008 2009 2010 2011 2012 2013 2014 2015 2016 FINANCIA
Slide 19: Financial Results
For personal use only FINANCIAL RESULTS SAMANTHA HOGG – CHIEF FINANCIAL OFFICER
Slide 20: Statutory Results
STATUTORY RESULTS For personal use only Net profit $81.1 million (2011: $96.6 million profit) – 16.0% 2011 included a pre-tax net benefit of $33.4 million Ibonds1 ( 2012: $0) Toll revenue $397.7 million (2011: $385.6 million) – 3.1% Fee and other road revenue $41.7 million (2011: $38.7 million ) – 7
Slide 21: Statutory Results: Income Statement
STATUTORY RESULTS For personal use only INCOME STATEMENT HALF YEAR ENDED 31 DECEMBER 2012 31 Dec ‘12 ($M) 31 Dec ‘11 ($M) % CHANGE Toll revenue 397.7 385.6 3.1% Fee and other road revenue 41.7 38.7 7.9% Construction revenue 124.6 138.6 (10.1%) Business development & other revenue 21.2 7.8 171.8% Tot
Slide 22: Proportional Results
PROPORTIONAL RESULTS For personal use only Toll revenue $491.8 million (2011: $473.8 million) – 3.8% Fee revenue $36.1 million (2011: $32.1 million ) – 12.5% TTMS and other revenue $34.7 million (2011: $15.7 million) – 121.0% I-95 success fee ($8.6 million) TTMS revenue for Express Lanes tolling sys
Slide 23: Proportional Result
PROPORTIONAL RESULT For personal use only HALF YEAR ENDED 31 DECEMBER 2012 31 DEC ‘12 ($M) 31 DEC ‘11 ($M) % CHANGE Toll revenue 491.8 473.8 3.8% Fee revenue 36.1 32.1 12.5% TTMS revenue 18.3 10.1 81.2% Other revenue 16.4 5.6 192.9% Total revenue 562.6 521.6 7.9% Operating costs (114.9) (108.3) (6.1
Slide 24: Toll Revenue Growth
TOLL REVENUE GROWTH For personal use only CityLink – Transurban’s largest asset leading revenue PROPORTIONAL TOLL REVENUE GROWTH $m growth in portfolio (## ',( Northern Sydney network ',# (Hills M2, Lane Cove Tunnel '+( and Westlink M7) revenue '+# '*( disrupted by construction '*# ')( M1 Eastern Di
Slide 25: Cost
COST For personal use only Cost increase of $14.7 million (10.5%) to $155.3 million Large component associated with new 495 Express Lane costs and the acceleration of accounting for previously issued LTIs to former CEO Costs associated with new 495 operations ($2.2 million) 495 tolling system develo
Slide 26: Free Cash Flow
FREE CASH FLOW For personal use only FREE CASH FLOW 31 DEC ‘12($M) 31 DEC ‘11($M) % CHANGE Free Cash 192.8 184.2 4.6% Free cash per security (cents) – weighted average securities on issue during 13.2 12.7 3.9% half- year Supporting track record on Key timing differences point to distribution growth
Slide 27: Funding Snapshot
FUNDING SNAPSHOT For personal use only US$242 million 20-year Private DEBT MATURITIES1 – FIVE YEAR FORWARD VIEW CORPORATE Activity Bonds issued for 95 Express Lanes in July AU$505 million bank debt refinance for Westlink M7: 3 and 5 year tranches US$300 million TIFIA financing ASSET secured for 95 E
Slide 28: Conclusion
CONCLUSION For personal use only Quality asset portfolio 3.8% proportional toll revenue growth despite construction impacts across network 6.9% proportional EBITDA growth Distribution growth supported Interim distribution of 15.5 cents declared Confirmed guidance for full-year distribution of 31.0 c
Slide 29: Appendix: Detailed Financials
For personal use only APPENDIX 1 DETAILED FINANCIALS
Slide 30: Reconciliation: Statutory EBITDA to Proportional EBITDA
RECONCILIATION For personal use only STATUTORY EBITDA TO PROPORTIONAL EBITDA 31 DEC ’12 ($M) 31 DEC ’11 ($M) % CHANGE Statutory EBITDA 340.8 317.5 7.3% Less: EBITDA attributable to Non-controlling interest (9.3) (9.0) (3.3%) Add: M5 proportional EBITDA 44.5 39.9 11.5% Add: M7 proportional EBITDA 41.
Slide 31: Reconciliation: Statutory Income Statement to EBITDA – December 2012
RECONCILIATION For personal use only STATUTORY INCOME STATEMENT TO EBITDA – 31 DECEMBER 2012 OFFSET CONSTRUCTION OTHER REVENUE NET BUSINESS REALLOCATION OF $M STATUTORY P&L ACCOUNTING DISCLOSURE TOTAL REALLOCATION DEVELOPMENT CAPITALISED COSTS UNDER AASB I 12 Toll revenue 397.7 397.7 Fee & other roa
Slide 32: Reconciliation: Statutory Income Statement to EBITDA – December 2011
RECONCILIATION For personal use only STATUTORY INCOME STATEMENT TO EBITDA – 31 DECEMBER 2011 OFFSET CONSTRUCTION STATUTORY OTHER REVENUE NET BUSINESS REALLOCATION OF $M(4.3) ACCOUNTING DISCLOSURE TOTAL P&L REALLOCATION DEVELOPMENT CAPITALISED COSTS UNDER AASB I 12 Toll revenue 385.6 385.6 Fee & othe
Slide 33: Result by Asset – Consolidated Assets December 2012
RESULT BY ASSET – 100% For personal use only CONSOLIDATED ASSETS – 31 DECEMBER 2012 LANE COVE $M CITYLINK HILLS M2 TOLLAUST M1 ED ROAM OTHER TOTAL TUNNEL Toll revenue 244.7 71.2 30.8 - 51.0 - - 397.7 Fee & other revenue 22.4 2.2 0.9 4.4 0.3 8.3 29.0 67.5 Total revenue 267.1 73.4 31.7 4.4 51.3 8.3 29
Slide 34: Result by Asset – Equity Assets December 2012
RESULT BY ASSET – 100% For personal use only EQUITY ASSETS – 31 DECEMBER 2012 M5 SOUTH WEST POCAHONTAS 495 EXPRESS 95 EXPRESS $M WESTLINK M7 DRIVE TOTAL MOTORWAY 895 LANES LANES Toll revenue 96.7 104.8 7.4 0.8 - - 209.7 Fee & other revenue 6.4 1.8 - 0.2 - - 8.4 Total revenue 103.1 106.6 7.4 1.0 - -
Slide 35: Result by Asset – Consolidated Assets December 2011
RESULT BY ASSET – 100% For personal use only CONSOLIDATED ASSETS – 31 DECEMBER 2011 LANE COVE $M CITYLINK HILLS M2 TOLLAUST M1 ED ROAM OTHER TOTAL TUNNEL Toll revenue 235.4 72.4 30.7 - 47.1 - - 385.6 Fee & other revenue 21.2 1.1 0.7 3.6 - 8.2 10.6 45.4 Total revenue 256.6 73.5 31.4 3.6 47.1 8.2 10.6
Slide 36: Result by Asset – Equity Assets December 2011
RESULT BY ASSET – 100% For personal use only EQUITY ASSETS – 31 DECEMBER 2011 M5 SOUTH WEST POCAHONTAS 495 EXPRESS $M WESTLINK M7 DRIVE TOTAL MOTORWAY 895 LANES Toll revenue 87.8 101.5 7.0 - - 196.3 Fee & other revenue 5.4 1.4 0.1 - - 6.9 Total revenue 93.2 102.9 7.1 - - 203.2 Total cost (13.4) (22.
Slide 37: Free Cash Flow
FREE CASH FLOW For personal use only 31 DEC ‘12 ($M) 31 DEC ‘11($M) % CHANGE Cashflows from operating activities (Refer Group Statutory Accounts) 181.0 182.8 (1.0%) M7 Term Loan Notes received (18.7) (10.4) (79.8%) Payments for maintenance capital expenditure 5.3 13.1 (59.5%) Cashflows from operatin
Slide 38: Reconciliation of Free Cash
RECONCILIATION OF FREE CASH For personal use only EBITDA GROWTH TRANSLATING INTO FREE CASH 31 DEC ‘12 ($M) 31 DEC ‘11 ($M) % CHANGE Proportional EBITDA 416.9 390.0 6.9% Adjusted for proportional: Maintenance provision 15.4 11.7 31.6% Operating and working capital movements (8.2) (15.7) 47.8% Non-cas
Slide 39: Taxation
TAXATION For personal use only STATUTORY AND PROPORTIONAL STATUTORY TAX PAID / (REFUNDS RECEIVED) 31 DEC ‘12 31 DEC ’11 INCLUDES ($M) ($M) Corporate - 1.7 M1 Eastern Distributor (7.3) (38.7) M4 0.3 (0.1) Transurban US - (0.6) Westlink holding companies (1.9) (1.0) TOTAL (8.9) (38.7) PROPORTIONAL (TA
Slide 40: Maintenance Expense
MAINTENANCE EXPENSE For personal use only INCLUDED IN OPERATING COSTS ADDITIONAL MAINTENANCE PROVISION RECOGNISED DURING THE YEAR – 100% 31 DEC ‘12 ($M) 31 DEC ‘11 ($M) CityLink 5.2 4.0 Hills M2 1.1 0.9 Lane Cove Tunnel 2.4 2.4 M1 Eastern Distributor 2.3 2.1 M5 South West Motorway 2.3 1.2 Westlink M
Slide 41: Finance Costs – December 2012
FINANCE COSTS For personal use only NET FINANCE COSTS PAID – 31 DECEMBER 2012 NON-CASH ITEMS CONCESSION AND PROPORTIONAL STATUTORY DEBT FEES ACCRETION, OTHER NON-CASH NET INTEREST OWNERSHIP MAINTENANCE NET INTEREST NET INTEREST AMORTISATION TIFIA & TLN ITEMS PAID UNWIND PAID Controlled entities City
Slide 42: Finance Costs – December 2011
FINANCE COSTS For personal use only NET FINANCE COSTS PAID – 31 DECEMBER 2011 NON-CASH ITEMS CONCESSION AND ACCRETION, PROPORTIONAL STATUTORY DEBT FEES OTHER NON-CASH NET INTEREST OWNERSHIP MAINTENANCE TIFIA, TLN & NET INTEREST NET INTEREST AMORTISATION ITEMS PAID UNWIND USPP PAID Controlled entitie
Slide 43: Appendix: Detailed Treasury and Funding
For personal use only APPENDIX 2 DETAILED TREASURY AND FUNDING
Slide 44: Group Drawn Debt at December 2012
GROUP DRAWN DEBT For personal use only AT 31 DECEMBER 2012 TRANSURBAN CORPORATE DEBT AUD ($M) USD ($M) Working capital lines1 7 197 Term bank debt 600 - US Private Placements 1,336 162 Domestic AUD bonds 1,050 - Canadian MTN (CAD Notes) 233 - Total 3,226 359 NON RECOURSE (AUD $ million) ASSET DEBT O
Slide 45: Total Group Drawn Debt
TOTAL GROUP DRAWN DEBT For personal use only PROPORTIONAL DRAWN DEBT GROUP DEBT 31 DEC ‘12 30 JUN ‘12 MOVEMENT EXPLANATION AUD1 Corporate 3,226 3,219 7 $7m increase in drawn working capital. $51m increase in M2 Hills debt drawn for the upgrade project. $11m increase in M5 debt Non recourse 2,253 2,1
Slide 46: Key Debt Metrics
KEY DEBT METRICS For personal use only 31 DEC ‘12 30 JUN ‘12 TRANSURBAN NON TRANSURBAN NON CORPORATE CORPORATE GROUP RECOURSE GROUP RECOURSE Weighted average maturity (years) 1 9.6 yrs 4.4 yrs 13.3 yrs 9.6 yrs 5.1 yrs 12.8 yrs Weighted average cost of AUD debt 2 6.6% 6.5% 6.9% 6.9% 6.9% 7.0% Weighte
Slide 47: Corporate Debt Maturities
CORPORATE DEBT MATURITIES For personal use only BY FINANCIAL YEAR – AS AT 31 DECEMBER 2012 1. Debt is shown in financial year it matures. 2. Debt values are as at 31 December 2012. C$ and US$ debt converted at the hedged rate where cross currency swaps are in place. Unhedged US$ debt converted to A$
Slide 48: Asset Debt Maturities
ASSET DEBT MATURITIES For personal use only BY FINANCIAL YEAR – AS AT 31 DECEMBER 2012 95 Express Lanes TIFIA Funding 95 Express Lanes Private Activity Bonds Pocahontas TIFIA Funding Pocahontas Term Bank Debt 495 Express Lanes TIFIA Funding 495 Express Lanes Private Activity Bonds 495 Express Lanes
Slide 49: Appendix: Portfolio Summary
For personal use only APPENDIX 3 PORTFOLIO SUMMARY
Slide 50: Operating Asset Portfolio Summary Statistics
OPERATING ASSET PORTFOLIO For personal use only SUMMARY STATISTICS M5 SOUTH WEST M1 EASTERN LANE COVE 495 EXPRESS HILLS M2 WESTLINK M7 CITYLINK POCAHONTAS 895 MOTORWAY DISTRIBUTOR TUNNEL LANES OVERVIEW NSW NSW NSW NSW NSW VIC Virginia, USA Opening date AUG1992 MAY 1997 DEC1999 DEC 2005 MAR 2007 DEC
Slide 51: Tolling Escalation
TOLLING ESCALATION For personal use only EMBEDDED INFLATION PROTECTION MOTORWAY ESCALATION* Escalated quarterly by quarterly CPI. The toll cannot be lowered as a result of deflation, however, until inflation counteracts the deflation the toll M5 South West Motorway* cannot be increased. Hills M2* Es
Slide 52: Victoria Detailed Map
VICTORIA DETAILED MAP For personal use only 50
Slide 53: NSW Detailed Map
For personal use only NSW DETAILED MAP 51
Slide 54: For personal use only
For personal use only Click to edit Master text styles Second level > Third level 52