Slide 1: Transurban Investor Briefing
asx release 4 May 2020 For personal use only TRANSURBAN INVESTOR BRIEFING Transurban today provides the attached Investor Briefing presentation. The Investor Briefing will be webcast live at 9.30am (AEST) today, 4 May 2020 on the Transurban website at transurban.com. Investor enquiries Media enquiri
Slide 2: New M5–St Peters Interchange, Sydney
For personal use only NEW M5–ST PETERS INTERCHANGE, SYDNEY
Slide 3: Disclaimer
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 For personal use only International Limited (ACN 121 746 825). The responsible entity of Transurban Holding Trust is Tr
Slide 4: Agenda
AGENDA For personal use only 04 TRADING UPDATE AND OUTLOOK 16 TRAFFIC INSIGHTS X 27 QUESTION AND ANSWER SESSION SCOTT CHARLTON DARRYN PATERSON EXECUTIVE COMMITTEE CEO GM STRATEGY AND TRAFFIC AND SENIOR LEADERS INVESTOR BRIEFING | 4 MAY 2020 3
Slide 5: Clear Priorities
CLEAR PRIORITIES For personal use only Transurban Above all else, we Our roads are fully We have enhanced We continue to operates essential will do everything operational and our financial operate our infrastructure and we can to keep our we will continue to support for business safely is clear on i
Slide 6: Traffic Update
TRAFFIC UPDATE For personal use only • COVID-19 traffic impacts observable from early Recent traffic data (ADT % change)3 March with traffic deteriorating then improving Week in the second half of April1 commencing 1 Mar 8 Mar 15 Mar 22 Mar 29 Mar 5 Apr 12 Apr 19 Apr 26 Apr2 Sydney (1%) (2%) (10%) (
Slide 7: Customers
CUSTOMERS For personal use only • Transurban is supporting those customers in most need throughout this crisis Toll credit initiative • Providing financial support to our customers who are on the frontline1 in addition to those • Providing financial support to experiencing hardship as a result of CO
Slide 8: People and Operations
PEOPLE AND OPERATIONS For personal use only • Transurban is maintaining employment for its direct workforce and thousands of A long-term focus on flexible working, subcontractors to operate our assets, deliver our major projects, and come out the other underpinned by a significant investment side of
Slide 9: Delivery Update
DELIVERY UPDATE For personal use only Transurban continues to work with contractors and governments to deliver its portfolio of large-scale, highly complex projects, keeping thousands of people in local jobs and supporting the supply chain through this crisis NORTHCONNEX NEW M5 WEST GATE TUNNEL1 • W
Slide 10: West Gate Tunnel Progress Video
WEST GATE TUNNEL PROGRESS VIDEO For personal use only
Slide 11: Capital Position
CAPITAL POSITION For personal use only • Sufficient liquidity to meet capital Transurban expects the 2H20 distribution FREE CASH CALCULATION requirements and debt refinancing will be declared in late June 2020 and paid in obligations to end of FY21 August 20202 Cash flows from operating activities (
Slide 12: Treasury Management
TREASURY MANAGEMENT For personal use only Our consistent investment thesis is underpinned by concession agreements and remains critical to ensuring that Transurban has continued access to capital markets Transurban credit ratings Transurban debt covenants • Commitment to maintain strong investment g
Slide 13: Leadership
LEADERSHIP For personal use only • Leadership operating model to position Executive Committee Transurban for the future • Consolidation and expansion of executive Chief Financial Officer Adam Watson positions as well as increasing capability to take advantage of emerging opportunities: Group Executi
Slide 14: Opportunity Pipeline
OPPORTUNITY PIPELINE For personal use only Increased need for private-sector investment to fund infrastructure and drive growth on the other side of COVID-19 Potential market opportunities • Government-owned 49% WestConnex minority interest (Sydney) • Western Harbour Tunnel (Sydney) • Coomera Connec
Slide 15: Sustainability
SUSTAINABILITY For personal use only Transurban is recognised as a global sustainability leader in the infrastructure and transport sectors and is increasingly integrating sustainability into all aspects of business strategy, planning and operations Goals Subject areas Priorities and programs Recogn
Slide 16: Summary
SUMMARY For personal use only • Transurban continues to prioritise the health and safety of our employees, contractors and customers through this period • Our roads remain fully operational, playing an essential function to move people, goods and services where they need to go during this time of cr
Slide 17: Traffic Insights
ao ila use only RAFFIC INSIGHTS DARRYN PATERSON—GM STRATEGY AND TRAFFIC Transurban
Slide 18: Theoretical Traffic Impact Timeline
THEORETICAL TRAFFIC IMPACT TIMELINE For personal use only INITIAL IMPACT SUPPRESSION PEAK IMPACT STAGED RECOVERY STATUS QUO Impacts based on Increasing Sustained Recovery period characterised by: Post COVID-19 situation; observed performance on government period of • Progressive and targeted unwindi
Slide 19: Observed Impacts to Date
OBSERVED IMPACTS TO DATE For personal use only • Impacts to traffic on Transurban’s assets observable from the beginning of March with rapid deterioration through the month • Through April, government-mandated restrictions remained stable resulting in a gradual stabilisation of traffic • Assets high
Slide 20: Traffic Impact Insights
TRAFFIC IMPACT INSIGHTS For personal use only Large vehicle traffic more Weekly traffic performance by vehicle class1 • Weekend traffic impacts more resilient to government 80% significant due to higher levels restrictions given the LEGEND of discretionary travel relative 70% ongoing need for freigh
Slide 21: Traffic Impact Insights
TRAFFIC IMPACT INSIGHTS For personal use only • Congestion an inexact proxy for traffic with a disproportionate relationship between the two Trip generation across our markets measures driven by diverse reasons for travel • High levels of traffic don’t necessarily result in high levels of congestion
Slide 22: Transurban Relative to Other Global Toll Roads
TRANSURBAN RELATIVE TO OTHER GLOBAL TOLL ROADS For personal use only • Toll roads in other countries which were Performance of other global toll roads1,2 impacted earlier by COVID-19 showing 30% signs of stabilisation and initial recovery Initial ban on gatherings 15/3 Impacted by timing of Easter h
Slide 23: Early Signs of Recovery in China
EARLY SIGNS OF RECOVERY IN CHINA For personal use only • China showing signs of recovery as lockdown measures are Congestion levels in Chinese cities1 gradually removed LEGEND BEIJING SHANGHAI 2019 average – Key business indicators showing positive signs across major 80% 80% 16-Mar CONGESTION LEVEL
Slide 24: Stabilisation and Staged Recovery Considerations
STABILISATION AND STAGED RECOVERY CONSIDERATIONS For personal use only • Australia’s progress in containing the Staged recovery considerations outbreak has exceeded the • The removal of restrictions is expected to be staged with the rate of traffic recovery expectations of health officials as contin
Slide 25: Longer-Term Considerations
LONGER-TERM CONSIDERATIONS For personal use only • Transurban has been considering Potential factors reducing traffic growth Potential factors increasing traffic growth potential long-term changes to • Near-term macro economic factors are • The enforcement or preference for transport for a long peri
Slide 26: Scott Charlton—CEO
uy personal use only = ad =2 SCOTT CHARLTON—CEO Transurban
Slide 27: Summary
SUMMARY For personal use only Continued focus Transurban roads Enhanced financial Sufficient liquidity Early signs of on the health and are fully support for in place to meet traffic stabilisation safety of our operational and customers and capital and debt with Transurban employees, transporting ot
Slide 28: Questions and Answers
or personal use only F A ‘QUESTIONS ND ANSWERS Transurban
Slide 29: Investor and Media Enquiries
only @ INVESTOR ENQUIRIES i) Tess Palmer Head of Investor Relations +61 458 231 983 EDIA ENQUIRIES arah Chapman Manager, Media and Communications +61 400 841 898 For personal u Transurban
Slide 30: Supplementary Information
\ —= a ‘SUPPLEMENTARY INFORMATION
Slide 31: Government Responses
GOVERNMENT RESPONSES Australia (Melb / Syd / Bris) USA (Greater Washington Area) Canada (Montreal) For personal use only Measures across the eastern seaboard have been substantially USA Canada coordinated through national directives MANDATORY GOVERNMENT MEASURES 11 March 2020 16 March 15 March 2020
Slide 32: Traffic Update
TRAFFIC UPDATE For personal use only • Traffic data impacted by the following Recent traffic data (ADT % change)1 events during the period: – Public holidays: Week commencing 1 Mar 8 Mar 15 Mar 22 Mar 29 Mar 5 Apr 12 Apr 19 Apr 26 Apr2 • Easter weekend: 10-13 April 2020 Sydney (NSW) (1%) (2%) (10%)
Slide 33: Treasury Management
TREASURY MANAGEMENT For personal use only Ratings agency updates since COVID-19 outbreak1 Transurban debt covenants • Moody’s affirmed the Transurban Finance Company Pty Limited Distribution rating of ‘Baa1’ and Stable outlook Debt Default lock-up 31 December Asset covenant2 threshold threshold 2019
Slide 34: Leadership
LEADERSHIP For personal use only Simon Moorfield Group Executive, Customer and Technology Simon joins Transurban Group from AGL, where he was EGM Future Business & Technology and Chief Information Officer (CIO). He has over 25 years’ experience in technology, innovation and transformation gained acr
Slide 35: Glossary
GLOSSARY TERM DEFINITION TERM DEFINITION For personal use only 95 95 Express Lanes GHG Greenhouse gas 395 395 Express Lanes GRESB Global Real Estate Sustainability Benchmark 495 495 Express Lanes GROUP Transurban Group 1H/2H First or second half of a financial year Greater Washington Area meaning no