Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — H1 2023 Earnings Presentation
76 slides from Aurizon's earnings presentation, Feb 13, 2023
Slide 1: 1HFY2023 Results
1HFY2023 Results 13 February 2023 Photo: Loaded zinc train, Oak Valley, between Antill Plains and Stuart Refuge on the Mount Isa line near Townsville. Photo: Leon Harris – Trainee Locomotive Driver
Slide 2: Disclaimer
1HFY2023 RESULTS Disclaimer 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”, “l
Slide 3: Safety performance
1HFY2023 RESULTS Safety performance TOTAL RECORDABLE INJURY FREQUENCY RATE (TRIFR)1 AND LOST POTENTIAL SERIOUS INJURY AND FATALITY FREQUENCY RATE TIME INJURY FREQUENCY RATE (LTIFR) (SIFRa+p)2 Incidents per million hours worked Incidents per million hours worked 10.21 6.77 +1% 8.41 8.49 restatement -
Slide 4: Introduction & Overview
Introduction & Overview Andrew Harding Managing Director & CEO Photo: Aurizon train, south of Menzies in the Northern Goldfields, approximately 128kms north of Kalgoorlie, Blake Jones – Aurizon Tutor Drive (Central WA)
Slide 5: Key achievements
1HFY2023 RESULTS INTRODUCTION & OVERVIEW Key achievements Significant actions in the half to deliver our corporate strategy Enhancing resilience Enhancing resilience Enhancing resilience Driving Bulk Returns Enterprise Agreements TrainGuard technology One Rail acquisition Network WACC of 8.18% cover
Slide 6: 1HFY2023 Results
1HFY2023 RESULTS INTRODUCTION & OVERVIEW 1HFY2023 Results1 Financial performance reflects prolonged wet weather and investment in Bulk growth EBITDA ONE RAIL ROIC2 FREE CASHFLOW3 (EXCLUDES GROWTH CAPEX) $1.45b Bulk acquisition $673m completed East Coast Rail 8.5% $95m down 7% down 1.9ppts down 76% d
Slide 7: Commodity markets update
1HFY2023 RESULTS INTRODUCTION & OVERVIEW Commodity markets update Prolonged rainfall recorded in QLD and NSW across 1H-FY2023 impacted Australian coal export volumes. Record grain export volume expected for 2022-23 season RAINFALL: QUEENSLAND & NEW SOUTH WALES1 1H: AUSTRALIAN TOTAL COAL EXPORT VOLUM
Slide 8: Commodity markets update
1HFY2023 RESULTS INTRODUCTION & OVERVIEW Commodity markets update Record crude steel production in India in 2022. Elevated coal prices remain, supporting an expected recovery in export volume in FY2024 COAL PRICES1 INDIA CRUDE STEEL PRODUCTION2 Monthly average Million tonnes (Calendar year) $600 150
Slide 9: Investing in Bulk growth
1HFY2023 RESULTS INTRODUCTION & OVERVIEW Investing in Bulk growth In response to the opportunities presenting in the business (particularly Bulk Central), investment is being made in capacity including rollingstock, track, port and terminals Embedding Bulk Central Bulk: Australian mine projects2 › $
Slide 10: Containerised freight
1HFY2023 RESULTS INTRODUCTION & OVERVIEW Containerised freight The Bulk Central corridor provides the ability to expand our service offering › Existing containerised freight services between Adelaide and Containerised Freight: Service Offerings Darwin, and Brisbane and Cairns Hook & Pull Line Haul:
Slide 11: Financial Performance
Financial Performance George Lippiatt CFO & Group Executive Strategy Photo: Sunrise at Berrimah Freight Terminal, Northern Territory, Steve Vanderhorst – Terminal Operator
Slide 12: Key financial results
1HFY2023 RESULTS FINANCIAL PERFORMANCE Key financial results1 Acquisition and higher energy and fuel prices (largely pass through) driving higher revenue (and operating costs). Lower volumes for both Coal and Network impacting revenue $m 1HFY2023 1HFY2022 Variance (%) Variance ($) Revenue 1,694 1,51
Slide 13: Coal
1HFY2023 RESULTS FINANCIAL PERFORMANCE Coal Prolonged wet weather impacted volumes during the half EBITDA: Major drivers ($M) Revenue (inc. net access) Operating costs net of fuel and access (revenue and cost) 286 $576m ($346m) (5%) (9%) 47 EBITDA Tonnes hauled 6 1 4 230 $230m 90.5m 1HFY2022 Volume
Slide 14: Bulk
1HFY2023 RESULTS FINANCIAL PERFORMANCE Bulk Strong grain and acquisition of One Rail contributed to EBITDA growth EBITDA: Major drivers ($M) Total Revenue Operating Costs net of fuel and access (revenue and cost) $521m ($421m) +51% (57%) 120 144 100 1 75 EBITDA Rail Tonnes Hauled $100m 33.6m 1HFY202
Slide 15: Network
1HFY2023 RESULTS FINANCIAL PERFORMANCE Network Performance reflected lower volumes due to wet weather EBITDA: Major drivers ($M) Total Revenue Operating Costs net of Electric Charge revenue and fuel and energy cost 380 $614m ($251m) +8% (33%) 11 5 6 EBITDA Tonnes 5 363 $363m 102.9m 1HFY2022 Access R
Slide 16: Free Cash Flow
1HFY2023 RESULTS FINANCIAL PERFORMANCE Free Cash Flow Impacted by investment in Bulk capacity and timing of working capital movements and tax payments which is expected to normalise in second half and FY2024 FREE CASH FLOW ($M)1 Includes: $401 Network: EC revenue accrual ($54) ($37m) To be received
Slide 17: Capex
1HFY2023 RESULTS FINANCIAL PERFORMANCE Capex Bulk growth opportunities driving capital spend over the medium term. FY2023 spend expected to be $500-$550m non-growth and ~$210m growth CAPITAL EXPENDITURE1 ($M) KEY BULK GROWTH PROJECTS ($M) ~710-760 Growth capital is increasing and has transitioned It
Slide 18: Inflation & Interest Rates
1HFY2023 RESULTS FINANCIAL PERFORMANCE Inflation & Interest Rates Aurizon has protections from increasing interest rates and inflation Coal & Bulk: Revenue protection through CPI-linked rate Enterprise agreements (EAs): Covering ~70% of EA workforce escalations in almost all contracts agreed to sinc
Slide 19: Funding update
1HFY2023 RESULTS FINANCIAL PERFORMANCE Funding update Debt increased to fund One Rail acquisition and future Bulk growth. Focus remains on lengthening debt tenor and diversifying sources across Network and Operations FUNDING ACTIVITY KEY DEBT METRICS1 1HFY2023 FY2022 Aurizon Network Weighted average
Slide 20: Outlook & Key Takeaways
Outlook & Key Takeaways Andrew Harding Managing Director & CEO Photo: Aurizon Port Services Newcastle (NSW)
Slide 21: FY2023 outlook
1HFY2023 RESULTS OUTLOOK & KEY TAKEAWAYS FY2023 outlook EBITDA guidance lowered by 4% reflecting prolonged wet weather and two-week Blackwater derailment outage FY2023: › Group underlying EBITDA guidance $1,420m – $1,470m › Non-growth capex guidance of ~$500m - $550m and growth capex guidance of ~$2
Slide 22: Photo: Bulk Central opening event at Dry Creek (SA)
Photo: Bulk Central opening event at Dry Creek (SA)
Slide 23: Contact and further information
Contact and further information James Coe Head of Investor Relations & Market Intelligence +61 7 3019 7526 James.Coe@aurizon.com.au ASX: AZJ 23
Slide 24: Additional Information: ESG
Additional Information: ESG February 2023: Launch of Bulk UGL Rail C44aci locomotive, featuring artwork by Aurizon employee Laurie Anno in partnership with fellow members of Aurizon’s Indigenous Reference (IRG) Group. Each IRG member contributed to the artwork with finger dot painting. The artwork s
Slide 25: Our Environmental, Social and Governance (ESG) contribution
1HFY2023 RESULTS ADDITIONAL INFORMATION Our Environmental, Social and Governance (ESG) contribution Aurizon continues to build a stronger and sustainable business NET-ZERO COMMITMENT BY 2050… …WHILE WE SUPPORT OUR REGIONS AND …AND LEAD THROUGH TRANSPARENT COMMUNITIES… GOVERNANCE › Climate Strategy a
Slide 26: Climate Strategy and Action Plan
1HFY2023 RESULTS ADDITIONAL INFORMATION Climate Strategy and Action Plan Aurizon is committed to a long-term target of net-zero operational emissions (scope 1 and 2) by 2050 Net-zero operational emissions by 2050 We will continue to assess and enhance our processes for Achieving our operational deca
Slide 27: Australian Export Demand – Commodities
1HFY2023 RESULTS ADDITIONAL INFORMATION Australian Export Demand – Commodities Australia export commodities are driven by steel-intensive growth and thermal electricity generation in Asia, in addition to new economy markets and food consumption COAL BULK › Metallurgical coal (or coking coal) is prim
Slide 28: Global & Australia Coal Summary
1HFY2023 RESULTS ADDITIONAL INFORMATION Global & Australia Coal Summary Global Australia Thermal (Steam) Coal Metallurgical (Coking) Coal Production2 Coal Export Volume3 Total Coal Export (By Destination)3 CY2022 Export Revenue3 Production1 CY2021 Coal Production1 CY2021 CY2021 CY2022 million tonnes
Slide 29: Coal markets
1HFY2023 RESULTS ADDITIONAL INFORMATION Coal markets The metallurgical coal-dependent method of steel production is over two-thirds of global steel production. Thermal coal market is dominated by Asian trade, backed by young generation fleet GLOBAL CRUDE STEEL PRODUCTION | BLAST FURNACE-BASIC OXYGEN
Slide 30: Bulk markets
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk markets Demand growth for bulk commodities will be led by the transition to clean energy technologies and rising food consumption in developing nations MINERAL DEMAND FROM CLEAN ENERGY TECHNOLOGIES1 FOOD CONSUMPTION: CALORIES PER CAPITA2-3 30 4,000 Food s
Slide 31: Bulk – Australia Capital & Exploration Expenditure
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk – Australia Capital & Exploration Expenditure CAPITAL EXPENDITURE: METAL ORE MINING1 EXPLORATION EXPENDITURE: IRON ORE2 A$6.0b +4% A$250m +15% A$200m A$4.0b A$150m A$100m A$2.0b A$50m A$0.0b A$0m Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Sep- Mar- Sep-
Slide 32: Remuneration
1HFY2023 RESULTS ADDITIONAL INFORMATION Remuneration Short Term and Long Term Incentive Rewards The Short Term Incentive Award (STIA) is remuneration subject to the The Long Term Incentive Award (LTIA) is linked to providing long-term achievement of pre-defined Company, Business Unit and individual
Slide 33: Additional Information: Group
[Picture to be added] Additional Information: Group Photo: Rankin Dam rail siding (Tarcoola to Darwin rail network) about 37kms south west of Coober Pedy in the South Australian outback, Brian Shortt – Regional Operations Manager Dry Creek (SA)
Slide 34: Overview
1HFY2023 RESULTS ADDITIONAL INFORMATION Overview Aurizon is Australia's largest rail-based transport business with broad commodity exposure across above and below rail services, and port terminals Below Rail Network ▪ Operation of the Central Queensland Coal Network (2,670km), critical infrastructur
Slide 35: Strategic objectives
1HFY2023 RESULTS ADDITIONAL INFORMATION Strategic objectives Resilient Network and Coal businesses supporting Bulk growth and shareholder returns Evolving mix reduces thermal coal exposure Resilient Network and Outcome from achieving Growing bulk business Coal businesses Bulk aspiration is Aspiratio
Slide 36: Purpose, Vision, Values and Strategic Levers
1HFY2023 RESULTS ADDITIONAL INFORMATION Purpose, Vision, Values and Strategic Levers 36
Slide 37: Prioritisation of capital
1HFY2023 RESULTS ADDITIONAL INFORMATION Prioritisation of capital CAPITAL ALLOCATION HIERARCHY 1 2 3 4 DETERMINE AVAILABLE NON GROWTH CAPITAL DIVIDENDS SURPLUS CAPITAL CAPITAL › Ongoing operating cashflows › Sustaining and transformation › Within 70-100% payout ratio › Capital management projects op
Slide 38: Above Rail volumes
1HFY2023 RESULTS ADDITIONAL INFORMATION Above Rail volumes Quarter Ending Financial year to date Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Variance1 1HFY2022 1HFY2023 Variance1 Coal volumes (million tonnes) CQCN 33.4 34.3 36.5 33.1 33.8 1% 70.3 66.9 (5%) NSW & SEQ 13.9 11.2 13.4 11.6 12.1 (13%) 28.4 23.6 (
Slide 39: Enterprise Agreements
1HFY2023 RESULTS ADDITIONAL INFORMATION Enterprise Agreements # Staff Headline Increases Term Enterprise Agreement Covered Expiry Date Status (years) Year 1 Year 2 Year 3 Year 4 (approx.) SA/NT Bulk Maintenance1 70 3 4 Feb 2023 4.0% 4.0% 2.0% Bargaining QLD Infrastructure 550 4 27 May 2023 2.1% 2.1%
Slide 40: Underlying EBITDA by business unit ($m)
1HFY2023 RESULTS ADDITIONAL INFORMATION Underlying EBITDA1 by business unit ($m) 1HFY2023 1HFY2022 Variance 2HFY2022 Coal 230 286 (20%) 255 Bulk 100 75 33% 56 Network 363 380 (4%) 421 Other (20) (14) (43%) 9 EBITDA 673 727 (7%) 741 40 1. Continuing operations
Slide 41: Underlying group EBITDA bridge ($m)
1HFY2023 RESULTS ADDITIONAL INFORMATION Underlying group EBITDA bridge1 ($m) 727 56 17 25 6 673 1HFY2022 Coal Bulk Network Other 1HFY2023 1. Continuing operations 41 Note: Due to rounding, the sum of components may not equal the corresponding total
Slide 42: Balance sheet summary ($m)
1HFY2023 RESULTS ADDITIONAL INFORMATION Balance sheet summary ($m) 31 December 2022 30 June 2022 31 December 2021 Assets classified as held for sale 962 - - Other current assets 923 860 675 Total current assets 1,885 860 675 Property, plant and equipment (PP&E) 9,910 8,416 8,465 Other non-current as
Slide 43: Debt Maturity Profile
1HFY2023 RESULTS ADDITIONAL INFORMATION Debt Maturity Profile As at 31 January 20231 ($m) 365 110 650 465 205 50 450 400 50 778 711 500 425 195 50 100 70 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY35 Operations: Undrawn Bank Debt Operations: Drawn Bank Debt Operations: AMTN2 Network: E
Slide 44: Reconciliation of borrowings
1HFY2023 RESULTS ADDITIONAL INFORMATION Reconciliation of borrowings $m Commentary Total debt including working capital facility 5,577 Borrowings on a cash basis Reconciliation to Financial Statements Add/(less): Borrowings acquired in connection with the Tarcoola-to-Darwin Concession Deed Corporati
Slide 45: Group and business unit capital expenditure ($m)
1HFY2023 RESULTS ADDITIONAL INFORMATION Group and business unit capital expenditure ($m) 403 272 164 175 45 131 57 130 56 7 1 1HFY20231,2 Network1,2 Coal1 Bulk Corporate Non-Growth Growth Note: Due to rounding, the sum of components may not equal the corresponding total 1. Includes capitalised inter
Slide 46: Dividend history
1HFY2023 RESULTS ADDITIONAL INFORMATION Dividend history 35.0c 100% 90% 30.0c 28.8 27.1 27.4 80% 25.0c 24.6 24.0 23.8 70% Amount (Cents) Per Share 22.5 21.4 14.4 60% Payout Ratio1 20.0c 13.1 13.7 13.3 8.9 12.4 50% 16.5 13.9 10.9 15.0c 40% 12.3 8.5 10.0c 30% 8.3 8.2 13.6 14.0 13.7 14.4 20% 4.6 11.3 1
Slide 47: Legal matters
1HFY2023 RESULTS ADDITIONAL INFORMATION Legal matters WIGGINS ISLAND RAIL PROJECT (WIRP) › Earlier Court of Appeal decision confirmed that ongoing WIRP fees are payable until August 2035, and WIRP fees have been billed to WIRP Customers accordingly › 18 December 2020: Aurizon commenced proceedings
Slide 48: Additional Information: Coal
Additional Information: Coal Photo: Coal Train, South-East Queensland
Slide 49: Coal
1HFY2023 RESULTS ADDITIONAL INFORMATION Coal $m 1HFY2023 1HFY2022 Variance 2HFY2022 Above rail1 582 610 (5%) 585 Track access1 175 184 (5%) 176 Other 4 2 100% 3 Total Revenue 761 796 (4%) 764 Access costs (185) (192) 4% (184) Operating costs (346) (318) (9%) (325) EBITDA 230 286 (20%) 255 Depreciati
Slide 50: Coal Operations
1HFY2023 RESULTS ADDITIONAL INFORMATION Coal Operations Note: Includes all mines in the CQCN 50
Slide 51: Coal Operations
1HFY2023 RESULTS ADDITIONAL INFORMATION Coal Operations SOUTH EAST QUEENSLAND / NEW SOUTH WALES 51
Slide 52: Coal haulage tonnes (mt) by system
1HFY2023 RESULTS ADDITIONAL INFORMATION Coal haulage tonnes (mt) by system 1HFY2023 1HFY2022 Variance 2HFY2022 CQCN Newlands 8.0 9.3 (14%) 8.5 Goonyella 29.7 29.4 1% 32.1 Blackwater 22.5 24.8 (9%) 24.7 Moura 6.7 6.8 (1%) 5.5 Total CQCN 66.9 70.3 (5%) 70.8 NSW & SEQ West Moreton 1.0 1.7 (41%) 1.0 Hun
Slide 53: Coal contract portfolio
1HFY2023 RESULTS ADDITIONAL INFORMATION Coal contract portfolio AURIZON COAL CONTRACT VOLUME EXPIRY BY YEAR1 COAL CONTRACT PORTFOLIO EXPIRY1 AS AT 31 DECEMBER 2022 AS AT 31 DECEMBER 2022 75 19% 0-3 years 37% 3-7 years 60 7+ years Million tonnes per annum (Mtpa) 45 43% 30 FORECAST COAL CONTRACTED VOL
Slide 54: Additional Information: Bulk
Additional Information: Bulk Photo: Sulphur train on the Mount Isa line just outside Cloncurry QLD, Leon Harris – Trainee Locomotive Driver APS (QLD)
Slide 55: Bulk
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk $m 1HFY2023 1HFY2022 Variance 2HFY2022 Revenue 521 344 51% 347 Access costs (52) (42) (24%) (39) Operating costs (369) (228) (62%) (253) EBITDA 100 75 33% 56 Depreciation & Amortisation (53) (17) (212%) (20) EBIT 47 58 (19%) 36 Above Rail Tonnes (m) 33.6
Slide 56: Bulk operations
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk operations 56
Slide 57: Bulk operations: Queensland
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk operations: Queensland 57
Slide 58: Bulk operations: New South Wales
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk operations: New South Wales 58
Slide 59: Bulk operations: South Australia and Northern Territory
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk operations: South Australia and Northern Territory 59
Slide 60: Bulk operations: Western Australia
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk operations: Western Australia 60
Slide 61: Additional Information: Network
Additional Information: Network Photo: Aurizon track maintenance work on the CQCN – Aldoga, Gladstone (QLD)
Slide 62: Network financial and operating metrics
1HFY2023 RESULTS ADDITIONAL INFORMATION Network financial and operating metrics $m 1HFY2023 1HFY2022 Variance 2HFY2022 Track Access 583 543 7% 591 Services & Other 31 26 19% 33 Revenue 614 569 8% 624 Energy & Fuel (110) (51) (116%) (53) Other Operating Costs (141) (136) (4%) (150) EBITDA 363 380 (4%
Slide 63: Network Operations
1HFY2023 RESULTS ADDITIONAL INFORMATION Network Operations 63
Slide 64: Network volumes: All rail operators
1HFY2023 RESULTS ADDITIONAL INFORMATION Network volumes: All rail operators 1HFY2023 1HFY2022 Variance 2HFY2022 Newlands 9.8 6.6 49% 7.3 Goonyella 53.1 53.5 (1%) 52.1 Blackwater 26.0 29.6 (12%) 28.7 Moura 6.5 6.7 (2%) 5.3 GAPE 7.4 8.6 (13%) 8.2 Total (mt) 102.9 104.9 (2%) 101.7 64 Note: Due to round
Slide 65: Network 1HFY2023 Access Revenue movement
1HFY2023 RESULTS ADDITIONAL INFORMATION Network 1HFY2023 Access Revenue movement $m Increase in MAR from 1HFY2022 to 1HFY2023 19.3 Volume under-recovery for 1HFY2023 (51.7) Volume under-recovery for 1HFY2022 (reversal of impact) 28.4 Revenue Cap movements 1HFY2022 to 1HFY2023 (3.1) GAPE revenue (4.8
Slide 66: Network adjusted MAR bridge FY22 to FY24
1HFY2023 RESULTS ADDITIONAL INFORMATION Network adjusted MAR bridge FY22 to FY24 INDICATIVE NETWORK ADJUSTED MAXIMUM ALLOWABLE REVENUE (MAR)1 FY2022 – FY20242 ($M) 1,062 25 1 68 967 39 5 10 1 1 27 896 FY22 Actual AT1-5 FY19 / FY20 Rev Cap FY20 MAR Change Rev Cap FY21 FY21 Capital Rec FY22 MAR FY23 M
Slide 67: Network Revenue Adjustment Amounts (revenue cap)
1HFY2023 RESULTS ADDITIONAL INFORMATION Network Revenue Adjustment Amounts (revenue cap) › Revenue adjustment amounts (RAA) are the Total Total difference by system between Aurizon’s Total AT2-4 AT5 Financial Year (inc-GAPE) (ex-GAPE) Actual AT2-5 Revenue and Allowable AT2-5 $m $m $m $m Revenue › Th
Slide 68: Reconciliation of billed MAR to reported access revenue
1HFY2023 RESULTS ADDITIONAL INFORMATION Reconciliation of billed MAR to reported access revenue 1HFY2023 FY2022 FY2021 $m Actual Actual Actual Billed Access Revenue (AT1 to AT5) (ex. GAPE) 433 891 911 Approved Adjustments to MAR Revenue Cap (ex. GAPE and inclusive of capitalised interest) (1) 5 - Re
Slide 69: UT5 WACC Reset Timeline
1HFY2023 RESULTS ADDITIONAL INFORMATION UT5 WACC Reset Timeline Preliminary Reset WACC to inform FY2024 Tariffs with a Revenue Cap True up in FY2026 to reflect market based parameters in June 2023 UT5 WACC RESET PROCESS 12 November 2021 1 July 2023 30 June 2027 1 July 2024 1 July 2025 Report Date1 R
Slide 70: WACC History
1HFY2023 RESULTS ADDITIONAL INFORMATION WACC History 9.96% 8.68% 8.43% 8.18% 7.17% 6.30% 5.70% 5.90% UT1 UT2 UT3 UT4 UT5 UT5 UT5 UT5: Preliminary 2017-2019 2019-2021 2021-2023 WACC FY20241 70 1. Preliminary WACC Reset submitted to QCA (July 2022), based on market parameters in June 2022
Slide 71: UT5 Undertaking: Revenue Protection Mechanisms
1HFY2023 RESULTS ADDITIONAL INFORMATION UT5 Undertaking Revenue Protection Mechanisms The Maximum Allowable Revenue (MAR) is the total revenue Aurizon INDICATIVE SYSTEM REVENUE PROTECTION MECHANISM Network is permitted to earn each year, determined in accordance with the Regulatory Asset Base (RAB)
Slide 72: UT5 Undertaking: Regulatory Asset Base (RAB)
1HFY2023 RESULTS ADDITIONAL INFORMATION UT5 Undertaking Regulatory Asset Base (RAB) ELEMENT DETAIL Rollforward RAB › This represents the value of Network assets for regulatory purposes › Each year Network rolls forward the RAB adjusting for indexation, depreciation, disposals, transfers and the addi
Slide 73: UT5 Undertaking: Building Blocks
1HFY2023 RESULTS ADDITIONAL INFORMATION UT5 Undertaking Building Blocks BUILDING BLOCK DETAIL Return on capital (WACC) › 5.70% from 1 July 2017 to 2 May 2019 › 5.90% from 3 May 2019 to 12 November 2021 (Report Date)1 › 6.30% from Report Date1 to 30 June 2023 › WACC reset at 1 July 2023 (reset of ris
Slide 74: UT5 Undertaking: Rebate Mechanism
1HFY2023 RESULTS ADDITIONAL INFORMATION UT5 Undertaking Rebate Mechanism ELEMENT DETAIL Mechanism › A customer will be entitled to a rebate from Network where it has received less than its annual contracted capacity, as assessed by the Independent Expert, as a result of Network’s performance below t
Slide 75: Glossary
1HFY2023 RESULTS ADDITIONAL INFORMATION Glossary Metric Description AFD Access Facilitation Deed Average haul length NTK/Total tonnes Contract utilisation Total volumes hauled as a percentage of total volumes contracted CQCN Central Queensland Coal Network ESG Environment, Social & Governance Footpl
Slide 76: James Coe, Head of Investor Relations & Market Intelligence
James Coe Head of Investor Relations & Market Intelligence +61 7 3019 7526 James.Coe@aurizon.com.au ASX: AZJ 76