Transurban Group Ltd. · ASX:TCL
Transurban — Investor Day (May 2023)
49 slides from Transurban's investor day presentation, May 1, 2023
Slide 1: ASX release: 2023 Investor Day presentation
ASX release 1 May 2023 2023 Investor Day presentation Transurban provides the attached Investor Day presentation which will be presented at the Transurban Investor Day today. The presentation will be webcast live at 9.30am (AEST) today, 1 May 2023 and can be viewed via the Transurban website at tran
Slide 2: Transurban Investor Day 2023
Transurban Investor Day 2023 1 May 2023
Slide 3: Disclaimer and basis of preparation
Disclaimer and basis of preparation This publication is prepared by Transurban Holdings Limited (ACN 098 143 429), Transurban International Limited (ACN 121 746 825) and Transurban Infrastructure Management Limited (ACN 098 147 678; AFSL 246 585) as the responsible entity of Transurban Holding Trust
Slide 4: Agenda
Agenda Investor Day ESG session 4 Introduction Scott Charlton, Chief Executive Officer 31 Trust and reputation Jessica O’Brien, General Manager, Corporate Affairs, Investor Relations & Sustainability 9 Driving long-term growth and value creation Michelle Jablko, Chief Financial Officer 37 Pathway to
Slide 5: Transurban's leadership
Transurban’s leadership Following completion of construction on the M4-M8 link, WestConnex will be consolidated Scott Charlton Henry Byrne Suzette Corr Mike Discenza Andrew Head into the NSW business, with Chief Executive Group Executive, Group Executive, Acting President, Group Executive, Andrew He
Slide 6: FY23 distribution guidance upgrade
FY23 distribution guidance upgrade FY23 distribution guidance upgraded to 58 cps representing Returning to distribution momentum approximately 41% growth on FY22 and 1 cps above prior guidance 70 of 57 cps1,2 60 As previously announced, FY23 distribution guidance includes approximately 2-3 cps of Ca
Slide 7: WestConnex – a decade in the making
WestConnex – a decade in the making Transurban’s patient and disciplined approach to working with government partners 2013 2018 2012 -2016 2017 -2022 Delivery of Stage 1, 2 & 3 2023 2024 Various WestConnex First things Sydney government First strategy Transport connection to Various funding and fi
Slide 8: WestConnex: one of the largest road infrastructure projects in the world
WestConnex: one of the largest road infrastructure projects in the world Key role in supporting the future growth of Sydney Key growth areas surrounding Bradfield and Marsden Park of Western Sydney are expected to grow by >75% from 2022 to 20421,2 Population Growth 2022–422 0 – 100 100 – 1,000 Relat
Slide 9: WestConnex: further growth to come
WestConnex: further growth to come Projects under construction are expected to lead to traffic uplift on WestConnex Illustrative revenue impact of current NSW Government led projects M4-M8 Rozelle Sydney M6 link (3b) Gateway Stage 1 WHT & Warringah Freeway upgrade 2023 2024 2025 2026 2027 2028 2029
Slide 10: Driving long-term growth and value creation
Driving long-term growth and value creation
Slide 11: Positioned for growth and value creation
Positioned for growth and value creation High quality Embedded inflation Active, disciplined approach Business set up portfolio of assets upside with interest rate to developing the portfolio for long-term hedging protection value creation
Slide 12: Urban assets supported by macro trends
Urban assets supported by macro trends Unemployment remains low with population growth forecast in each market Sydney Melbourne Brisbane Greater Washington Area >60% of the population lives >20% of the population lives >45% of the population lives >20% of the population lives within 5kms of Transurb
Slide 13: Portfolio insights: benefits of diverse assets
Portfolio insights: benefits of diverse assets Multiple reasons for travel Geographic diversity • Resilient freight and orbital travel has provided relative traffic stability and Assets located across multiple markets provide protection against local growth over recent years, with airport and CBD tr
Slide 14: Well positioned for current inflation and interest rate environment
Well positioned for current inflation and interest rate environment Benefit of short term higher inflation compounds over the life Interest rates of CPI linked concessions1,2 9% $1.25 4.0% $1 in Sep21’ expected to grow to $1.20 in Jun 25’ 8% 3.6% $1.20 7% 3.2% $1.15 6% Bank bill futures3 2.8% 5% $1.
Slide 15: Active, disciplined approach to developing the portfolio
Active, disciplined approach to developing the portfolio Investment Development Flexible balance discipline pipeline generation sheet Demonstrated discipline Constantly replenishing Balance sheet capacity in project selection and opportunities to meet for future growth approach to valuation the need
Slide 16: Business set up for growth
Business set up for growth Growth embedded in existing portfolio • Diverse assets provide stability Near term • Contractual toll escalations compounding for the life of the concessions on the majority of assets • Supportive macro trends including low unemployment and population growth in urban centr
Slide 17: Delivering the project pipeline
Delivering the project pipeline
Slide 18: Australian construction industry
Australian construction industry Construction market conditions Infrastructure spend continues Governments continue to focus on investment in road and rail projects Key indices show signs of reduced volatility as supply chain pressures ease across Transurban’s markets1 and wages growth slows 100 The
Slide 19: Transurban major project landscape
Transurban major project landscape Reduction of committed capital and shift to brownfield Risk management and mitigation projects in the near-term • Detailed reference design development to enable improved risk assessment and pricing 8.0 20% • Early contractor engagement to inform procurement approa
Slide 20: West Gate Tunnel Project progress
West Gate Tunnel Project progress Progress tracking well to revised schedule as construction gains momentum across all work sites Above ground progress as bridges and ramps take shape ~99% > 70% 50,000 • Footscray Road launching gantry nearing completion of the inbound carriageway of the elevated ro
Slide 21: M7–M12 Integration Project
M7–M12 Integration Project Congestion on the M71 Design and construction insights • ~$1.7b project consists of the M7 Widening, M7-M12 Interchange and the Elizabeth Drive Connections2 • Project will provide an additional lane in both directions for 26km by utilising existing median strip • Includes
Slide 22: North America projects update
North America projects update Fredericksburg Extension 495 Northern Extension A25 • Expected partial opening in August 2023, • Project extends the 495 Express lanes by • Welcomed Montreal-based institutional investor approximately four months earlier than the ~four kilometres towards the Maryland bo
Slide 23: Melbourne market insights
Melbourne market insights Transurban
Slide 24: Melbourne fundamentals remain strong
Melbourne fundamentals remain strong CityLink workday peaks are returning toward 2019 levels CityLink recovery ongoing CityLink workday PM peaks are returning, with Thursday and Friday the CityLink is exposed to a broad range of potential trips including CBD routes, closest to 2019 levels airport re
Slide 25: Innovation in Melbourne
Innovation in Melbourne Transurban’s deep understanding of its home market has led to the opportunity to trial emerging technologies CityLink automated truck trial West Gate Tunnel and CityLink control Burnley Tunnel Pacemaker • Demonstrated application of autonomous room consolidation • Pacemaker l
Slide 26: Potential acquisition of EastLink: focus on delivering benefits to broad group of stakeholders
Potential acquisition of EastLink: focus on delivering benefits to broad group of stakeholders Customers Community Investors Government Positive customer Investing in initiatives Balancing growth and Improved outcomes experience which support local distributions for broader network • Streamlined com
Slide 27: Summary
Summary Transurban
Slide 28: Outlook
Outlook Upgraded High quality Disciplined and Decades of distribution portfolio supports patient approach to opportunities to guidance traffic growth project pipeline create value
Slide 29: Supplementary information
Supplementary information Transurban
Slide 30: Analyst notes
Analyst notes Free Cash considerations from new assets over the medium term ASSET FUTURE CONSIDERATIONS WestConnex M4-M8 link opening • Broadly neutral impact on Free Cash contributions prior to opening of Stage 3B (Rozelle Interchange) WestConnex M5 West • Full ownership interest in M5 West convert
Slide 31: Transurban Investor Day ESG Presentation
Transurban Investor Day ESG Presentation 1 May 2023
Slide 32: Trust and reputation
Trust and reputation Transurban
Slide 33: Our purpose
Our purpose To strengthen communities through transport Our strategy By understanding what matters to our stakeholders, we create road transport solutions that make us a partner of choice
Slide 34: Working to build trust in Transurban
Working to build trust in Transurban First major Comprehensive COVID-19 Focus areas refined Refreshed stakeholder survey and stakeholder strategy customer support and second major strategy trust tracking begins rolled out initiatives survey conducted rolling out 2023 2016 2018 2020 2021 and –2017 –2
Slide 35: Responding to issues that matter to stakeholders
Responding to issues that matter to stakeholders Responding to impact of Providing value for money Responding to increasing Listening to stakeholders, cost of living environment and demonstrating benefits expectations to contribute understanding their needs and supporting customers such as time savi
Slide 36: Working with governments on shared priorities
Working with governments on shared priorities Delivering projects with government partners • The commissioning and delivery of motorways often spans multiple governments – both federal and state • Relationships with governments are long-term and bipartisan Track record as a partner Toll roads and Tr
Slide 37: Sustainable growth relies on remaining a partner of choice
Sustainable growth relies on remaining a partner of choice
Slide 38: Pathway to net zero
Pathway to net zero Transurban
Slide 39: Committed to net zero by 2050
Committed to net zero by 2050 2030 Science-Based Targets (SBTi)1 50% 55% 22% Scope 1 Transurban’s GHG emissions Scope 2 absolute reduction in scope 1 reduction in scope 3 carbon reduction in scope 3 carbon and 2 emissions by 2030 intensity of our major intensity of purchased goods Scope 3 projects b
Slide 40: Scope 1 and 2 emissions
Scope 1 and 2 emissions Scope 1 initiatives TRANSURBAN FUEL EFFICIENCY CONTRACTOR CONTRACTOR TRANSURBAN FUEL EFFICIENCY ZEV SWITCH ZEV SWITCH Scope 2 initiatives VENTILATION LIGHTING OPTIMISATION UPGRADES Scope 1 – Fuel Scope 2 – Electricity RENEWABLE RENEWABLE ENERGY GENERATION 200,000 Taking actio
Slide 41: How we're reducing scope 2 emissions
How we’re reducing scope 2 emissions Renewable energy agreements Ventilation optimisation • Four power purchase agreements (PPA) have been signed: • Advanced modelling of airflow and ventilation systems – Sapphire and Bango Wind Farms (NSW) • FY22 WestConnex network electricity consumption reduced b
Slide 42: Scope 3 emissions – our focus areas
Scope 3 emissions – our focus areas Scope 3 initiatives SUPPLIER FUEL RECYCLED AND LOW SUPPLIER RENEWABLE ENERGY EFFICIENCY AND Supply chain CARBON MATERIALS ZEV SWITCH Major projects FUEL EFFICIENCY/ LOW CARBON MATERIALS SWITCHING RENEWABLE ENERGY Taking action 24% 644,000 tCO2e 88% • Infrastructur
Slide 43: How we're reducing scope 3 emissions
How we’re reducing scope 3 emissions WestConnex M4-M8 link West Gate Tunnel • WCX M4-M8 link ‘Leading’ Design Infrastructure Sustainability rating1 • WGTP ‘Leading’ Design Infrastructure Sustainability rating1 • 57% reduction in embodied GHG emissions in materials, including: • 21% reduction in embo
Slide 44: Beyond scope 3: Reducing customer emissions
Beyond scope 3: Reducing customer emissions Early EV initiatives GHG emissions Opportunity to influence Approach to date EV awareness campaigns and events Customer emissions • Road design and operation 1,500 from trips on TCL – In FY22, Transurban assets 53% customers generated 27%3 less GHG emissio
Slide 45: The sustainability journey of NorthConnex
The sustainability journey of NorthConnex NorthConnex has consistently met high standards for sustainability throughout the design and construction phases • 2016 – ‘Leading’ Infrastructure Sustainability (IS) Design Rating from the Infrastructure Sustainability Council • 2018 – Highly Commended Awar
Slide 46: Customer and community panel
Customer and community panel
Slide 47: Panellists
Panellists Empowering customers Championing road safety Strengthening communities Chris Jackson Liz Waller Zoe Taylor General Manager, Customer Head of Road Safety Project Director, West Gate Tunnel Experience and Operations
Slide 48: Glossary
Glossary Transurban
Slide 49: Glossary
Glossary TERM DEFINITION TERM DEFINITION 95 95 Express Lanes ICE Internal Combustion Engine 395 395 Express Lanes IS Infrastructure Sustainability 495 495 Express Lanes LCT Lane Cove Tunnel 1H/2H First or second half of a financial year (unless specified otherwise) LINKT Transurban’s retail tolling