Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — 1HFY2021 Earnings Presentation
82 slides from Aurizon's earnings presentation, Feb 15, 2021
Slide 1: ASX announcement: Half Year Results Analyst Presentation
Aurizon Holdings Limited ABN 14 146 335 622 For personal use only ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT 15 February 2021 Half Year Results Analyst Presentation Please find attached for immediate release to the market, the Half Year Results anal
Slide 2: 1HFY2021 Results
15 February 2021 For personal use only 1HFY2021 Results Andrew Harding – Managing Director & CEO George Lippiatt – CFO & Group Executive Strategy
Slide 3: Disclaimer
1HFY2021 RESULTS Disclaimer For personal use only NO RELIANCE ON THIS DOCUMENT NO OFFER OF SECURITIES This document was prepared by Aurizon Holdings Limited (ACN 146 335 622) (referred to as Nothing in this presentation should be construed as a recommendation of or an offer to sell or “Aurizon” whic
Slide 4: Safety performance
1HFY2021 RESULTS Safety performance TRIFR results driven by low-severity strain injuries with LTIFR improving 30% For personal use only TOTAL RECORDABLE INJURY FREQUENCY RATE (TRIFR)1 RAIL PROCESS SAFETY (RPS) +25% 5.08 -4% 12.38 Incidents per million train kilometres travelled 4.66 4.74 Incidents p
Slide 5: Performance overview
For personal use only Performance overview Andrew Harding Managing Director & CEO
Slide 6: 1HFY2021 highlights
1HFY2021 RESULTS PERFORMANCE OVERVIEW 1HFY2021 highlights1 Increase to shareholder distributions with dividend per share up 5%. EBIT flat despite soft coal For personal use only volume environment with strong Bulk performance and $49m retrospective WIRP fee. GROUP EBIT STATUTORY NPAT ROIC FREE CASHF
Slide 7: Coal – Market update
1HFY2021 RESULTS PERFORMANCE OVERVIEW Coal – Market update Although steel production has resumed to a pre-COVID level, a challenging trade environment For personal use only with China is impacting near term export volume CRUDE STEEL PRODUCTION: KEY NATIONS1 › Global steel production – returned to pr
Slide 8: Coal – Business update
1HFY2021 RESULTS PERFORMANCE OVERVIEW Coal – Business update Haulage volumes expected to grow in FY2022, increasing contract utilisation. Operational For personal use only efficiencies designed to mitigate revenue pressures CUSTOMER UPDATE OPERATIONAL EFFICIENCIES › FY2021 haulage volume outlook of
Slide 9: Bulk update
1HFY2021 RESULTS PERFORMANCE OVERVIEW Bulk update Strong performance continues with revenue up 8% from higher volumes. Aurizon Port Services For personal use only expands product offering with acquisition of ConPorts in Newcastle CUSTOMER UPDATE REVENUE BY COMMODITY2 › CBH – short-term contract for
Slide 10: Network update
1HFY2021 RESULTS PERFORMANCE OVERVIEW Network update WIRP fees commenced during the period, with potential upside from appeal of Expert's For personal use only Determination. UT5 capacity assessment expected September 2021 quarter WIGGINS ISLAND RAIL › Queensland Court of Appeal dismissed customers'
Slide 11: Other matters
1HFY2021 RESULTS PERFORMANCE OVERVIEW Other matters Progress made in court cases For personal use only SALE OF ACACIA RIDGE › 8 December 2020: High Court dismissed the ACCC's application for special leave clearing way for TERMINAL the sale ($170m proceeds remaining) › 2 February 2021: Foreign Invest
Slide 12: 1HFY2021 Financial Performance
For personal use only 1HFY2021 Financial Performance George Lippiatt CFO & Group Executive Strategy
Slide 13: Key financial highlights
1HFY2021 RESULTS FINANCIAL PERFORMANCE Key financial highlights1 EBIT performance driven by Bulk (volume growth) and Network (WIRP) offsetting lower Coal For personal use only (volumes) $m 1HFY2021 1HFY2020 Variance 2HFY2020 › Revenue decrease from Coal (lower volumes) and Other (sale of Rail Grindi
Slide 14: Coal
1HFY2021 RESULTS FINANCIAL PERFORMANCE Coal EBIT impacted by lower volumes For personal use only $m 1HFY2021 1HFY2020 Variance 2HFY2020 Revenue Above rail 584 629 (7%) 632 › Volumes down 4% impacted by lower end market demand and customer specific Track access 230 259 (11%) 254 maintenance and produ
Slide 15: Bulk
1HFY2021 RESULTS FINANCIAL PERFORMANCE Bulk Revenue growth driving strong EBIT performance For personal use only $m 1HFY2021 1HFY2020 Variance 2HFY2020 Revenue Revenue 322 297 8% 312 › Revenue higher through new contract growth Access costs (48) (65) 26% (46) Costs Operating costs (200) (179) (12%)
Slide 16: Network
1HFY2021 RESULTS FINANCIAL PERFORMANCE Network EBIT growth from commencement of WIRP fees offsetting lower volumes For personal use only $m 1HFY2021 1HFY2020 Variance 2HFY2020 Revenue Track access 569 565 1% 567 › Commencement of WIRP fees including retrospective amount offset by access Services & o
Slide 17: Cashflow and shareholder returns
1HFY2021 RESULTS FINANCIAL PERFORMANCE Cashflow and shareholder returns Consistent free cash flow generation has delivered over $4b in shareholder distributions over the For personal use only past six years including $1.3b in buy-backs, with dividends maintained at 100% of NPAT FREE CASH FLOW 1 ($M)
Slide 18: Capital expenditure
1HFY2021 RESULTS FINANCIAL PERFORMANCE Capital expenditure Capital expenditure forecast for FY2021 remains at $500m - $550m For personal use only CAPITAL EXPENDITURE1 ($M) › Capital expenditure guidance for FY2021 remains at 532 527 $500m - $550m ~500-550 495 490 › FY2021 Growth capex relates to wag
Slide 19: Funding update
1HFY2021 RESULTS FINANCIAL PERFORMANCE Funding update Consistent with strategy, increase in leverage continues with surplus capital deployed to capital For personal use only management. Re-financing activities to reduce interest costs over time 1HFY2021 FUNDING ACTIVITY KEY DEBT METRICS 1HFY2021 1HF
Slide 20: Outlook & Key Takeaways
For personal use only Outlook & Key Takeaways Andrew Harding Managing Director & CEO
Slide 21: FY2021 outlook
1HFY2021 RESULTS OUTLOOK & KEY TAKEAWAYS FY2021 outlook Group EBIT guidance now $870m – $910m For personal use only KEY ASSUMPTIONS › Coal ‒ Volumes revised to 200-210mt (from 210-220mt) based on current market conditions including a challenging China trade environment › Network ‒ CQCN volumes will
Slide 22: Strategy delivers results
1HFY2021 RESULTS OUTLOOK & KEY TAKEAWAYS Strategy delivers results Aurizon’s strategy enables the delivery of shareholder value For personal use only Achieve Execute Ongoing De-risk near fundamental Optimal legal Pursue Business Freight operational term Above regulatory and capital growth in Structu
Slide 23: Contact and further information
Contact and further information Chris Vagg James Coe Head of Investor Relations & Group Treasurer Manager Market Intelligence & Investor Relations +61 7 3019 9030 +61 7 3019 7526 For personal use only Chris.Vagg@aurizon.com.au James.Coe@aurizon.com.au ASX: AZJ US OTC: AZNNY
Slide 24: Additional Information: ESG
For personal use only Additional Information: ESG
Slide 25: Sustainability
1HFY2021 RESULTS ADDITIONAL INFORMATION Sustainability 2020 was the fourth year of TCFD disclosure for Aurizon For personal use only Reporting Approach › Aurizon takes a direct approach to reporting environmental, social and governance (ESG) disclosures with the publication of the annual Sustainabil
Slide 26: Aurizon's FY2020 sustainability performance
1HFY2021 RESULTS ADDITIONAL INFORMATION Sustainability Aurizon’s FY2020 sustainability performance For personal use only COMMUNITY STAKEHOLDER VALUE $1.3 billion $400 million 262 million $408 million spent with suppliers, a large FY2020 share buyback tonnes of commodities hauled in taxes collected a
Slide 27: Climate Strategy and Action Plan
1HFY2021 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 For personal use only 2050. Our Climate Strategy and Action Plan is built on the following three key pillars We will continue to as
Slide 28: Climate Strategy and Action Plan
1HFY2021 RESULTS ADDITIONAL INFORMATION Climate Strategy and Action Plan We are driving operational decarbonisation through our Tracking Towards Net-Zero Operational For personal use only Emissions initiatives 2020-2030 2030-2050 Climate Strategy and Action Plan Implementation Technology Pathway Min
Slide 29: Climate Strategy and Action Plan
1HFY2021 RESULTS ADDITIONAL INFORMATION Climate Strategy and Action Plan The majority of our emissions are associated with the consumption of energy (fuel and electricity) For personal use only in the day-to-day operation of our locomotive fleet AURIZON’S GREENHOUSE GAS PROFILE AURIZON’S LOCOMOTIVE
Slide 30: Australian Export Coal Demand
1HFY2021 RESULTS ADDITIONAL INFORMATION Australian Export Coal Demand Australia coal export volume is driven by steel-intensive growth in India and prolonged thermal For personal use only electricity generation in Asia, supporting coal export growth of ~1%pa over the next decade METALLURGICAL COAL T
Slide 31: Australian Coal Summary
1HFY2021 RESULTS ADDITIONAL INFORMATION Australian Coal Summary For personal use only CY2020 Export CY2020 All Coal Export (By Destination) CY2020 All Coal Export (By Port) Export Revenue 104mt 158mt *Port Kembla to September 2020 only. $55b 371mt 74mt 101mt Total Production 53mt State Split 28% 46m
Slide 32: Global Metallurgical (Coking) Coal Landscape
1HFY2021 RESULTS ADDITIONAL INFORMATION Global Metallurgical (Coking) Coal Landscape Around one-third of global metallurgical coal demand is met through the global traded export For personal use only market with Australia commanding over half of this market 2019, million tonnes Import Market: Split
Slide 33: Future of Coal | Metallurgical Coal
1HFY2021 RESULTS ADDITIONAL INFORMATION Future of Coal | Metallurgical Coal Driven by urbanisation and infrastructure development, the opportunity remains for India and For personal use only Southeast Asian nations to increase steel usage INDIA: CRUDE STEEL PRODUCTION AND COKING (METALLURGICAL) APPA
Slide 34: Metallurgical Coal Market | Australia
1HFY2021 RESULTS ADDITIONAL INFORMATION Metallurgical Coal Market | Australia Driven by quality, cost-competitiveness and proximity to Asian markets, Australia holds a unique For personal use only position in the seaborne market. AUSTRALIA: METALLURGICAL COAL EXPORT VOLUME AND PRICE1 METALLURGICAL C
Slide 35: Global Thermal (Steam) Coal Landscape
1HFY2021 RESULTS ADDITIONAL INFORMATION Global Thermal (Steam) Coal Landscape Over 80% of global thermal coal demand is produced and consumed within country. Australia For personal use only holds around one-fifth of the global trade market that is dominated by Asian demand 2019, million tonnes 6,175
Slide 36: Future of Coal | Thermal Coal
1HFY2021 RESULTS ADDITIONAL INFORMATION Future of Coal | Thermal Coal Although it is recognised that thermal coal generation will reduce as a percentage of global For personal use only energy, Asia is projected to use coal-fired generation assets for an extended period PER CAPITA ELECTRICITY CONSUMP
Slide 37: Thermal Coal Market | Australia
1HFY2021 RESULTS ADDITIONAL INFORMATION Thermal Coal Market | Australia Australia’s thermal coal competitiveness is driven by coal quality characteristics and geographic For personal use only proximity to Asia. Around 98% of Australian exports are destined for Asia AUSTRALIA: THERMAL COAL EXPORT VOL
Slide 38: Additional Information: Group
For personal use only Additional Information: Group
Slide 39: Aurizon 1HFY2021 Summary
1HFY2021 RESULTS ADDITIONAL INFORMATION Aurizon 1HFY2021 Summary For personal use only ABOVE RAIL (AURIZON OPERATIONS) BELOW RAIL (NETWORK) Coal Bulk Network Aurizon’s Coal business provides a critical Aurizon’s Bulk business provides integrated Network refers to the business of Aurizon supply chain
Slide 40: Aurizon's rail haulage operations
1HFY2021 RESULTS ADDITIONAL INFORMATION Aurizon’s rail haulage operations For personal use only KEY OPERATIONAL STATISTICS COMMODITIES Coal and bulk freight ROLLINGSTOCK ~500 active locomotives OPERATIONAL FOOTPRINT ~40 operational sites PEOPLE More than 4,600 full-time employees WAGONS 11,000+ acti
Slide 41: Vision, purpose, values and strategic levers
1HFY2021 RESULTS ADDITIONAL INFORMATION Aurizon’s vision, purpose, values and strategic levers Execution against the three strategic levers is aimed at driving differentiation, competitive For personal use only advantage and sustainable performance VISION PURPOSE STRATEGIC LEVERS Accelerate cost com
Slide 42: Quarterly tonnes: December 2020
1HFY2021 RESULTS ADDITIONAL INFORMATION Quarterly tonnes: December 2020 For personal use only Quarter Ending Financial Year To Date Dec-19 Mar-20 June-20 Sep-20 Dec-20 Variance1 Dec-20 Dec-19 Variance1 Coal volumes (mt) CQCN 37.7 37.0 38.8 34.7 36.5 (3%) 71.2 74.3 (4%) NSW & SEQ 15.8 14.8 17.0 15.3
Slide 43: Enterprise Agreements
1HFY2021 RESULTS ADDITIONAL INFORMATION Enterprise Agreements For personal use only # Staff Headline Increases Term Enterprise Agreement Covered Expiry Date Status (years) (approx.) Year 1 Year 2 Year 3 Year 4 WA Rollingstock Maintenance 100 4 10 May 2021 1.0% 1.5% 1.75% 1.75% Complete WA Rail Opera
Slide 44: Prioritisation of capital
1HFY2021 RESULTS ADDITIONAL INFORMATION Prioritisation of capital For personal use only CAPITAL ALLOCATION HIERARCHY 1 2 3 4 DETERMINE NON GROWTH SURPLUS AVAILABLE DIVIDENDS CAPITAL CAPITAL CAPITAL › Ongoing operating › Sustaining and › Within 70-100% › Capital management cashflows transformation pa
Slide 45: Underlying group EBIT bridge
1HFY2021 RESULTS ADDITIONAL INFORMATION Underlying group EBIT bridge1 ($m) For personal use only $456m $454m $8m $9m $35m $17m 1HFY2020 Coal Bulk Network Other 1HFY2021 1. Continuing operations Note: Due to rounding, the sum of components may not equal the corresponding total. 44
Slide 46: Underlying EBIT by business unit
1HFY2021 RESULTS ADDITIONAL INFORMATION Underlying EBIT1 by business unit ($m) For personal use only 1HFY2021 1HFY2020 Variance 2HFY2020 Coal 170.9 205.8 (17%) 204.8 Bulk 60.5 43.7 38% 46.2 Network 241.3 232.2 4% 236.6 Other (18.5) (26.1) 29% (34.2) EBIT 454.2 455.6 - 453.4 1. Continuing operations
Slide 47: Balance sheet summary
1HFY2021 RESULTS ADDITIONAL INFORMATION Balance sheet summary ($m) For personal use only 31 December 2020 30 June 2020 31 December 2019 Assets classified as held for sale 67.2 65.1 74.7 Other current assets 518.8 650.2 607.8 Total current assets 586.0 715.3 682.5 Property, plant and equipment (PP&E)
Slide 48: Reconciliation of borrowings
1HFY2021 RESULTS ADDITIONAL INFORMATION Reconciliation of borrowings For personal use only $m Commentary Total debt including working capital facility 3,576.8 Borrowings on a cash basis Reconciliation to Financial Statements Add/(less): Transaction costs directly attributable to borrowings are capit
Slide 49: Significant adjustments
1HFY2021 RESULTS ADDITIONAL INFORMATION Significant adjustments ($m) For personal use only 1HFY2021 1HFY2020 Variance 2HFY2020 Continuing operations – Net gain on sale of Rail Grinding - 105.4 - - (before tax) 48
Slide 50: Redundancy cost information
1HFY2021 RESULTS ADDITIONAL INFORMATION Redundancy cost information For personal use only › Redundancy costs since IPO have been included in Redundancy costs Redundancy costs underlying EBIT as well as classified as a significant item Year included in underlying classified as EBIT ($m) Significant i
Slide 51: Dividend history
1HFY2021 RESULTS ADDITIONAL INFORMATION Dividend history For personal use only 30.0c 100% 27.1 27.4 90% 25.0c 24.6 24.0 23.8 80% 22.5 13.1 13.7 70% Amount (Cents) Per Share 20.0c 13.3 8.9 60% Payout Ratio1 16.5 12.4 13.9 15.0c 50% 12.3 8.5 40% 10.0c 8.3 30% 8.2 13.6 14.0 13.7 14.4 4.6 11.3 11.4 20%
Slide 52: Additional information: Coal
For personal use only Additional information: Coal
Slide 53: Coal – Central Queensland Coal Network
1HFY2021 RESULTS ADDITIONAL INFORMATION Coal – Central Queensland Coal Network For personal use only 52 Includes all mines in CQCN
Slide 54: Coal – New South Wales and South East Queensland
1HFY2021 RESULTS ADDITIONAL INFORMATION Coal – New South Wales and South East Queensland For personal use only 53 Includes all mines in NSW & SEQ
Slide 55: Coal operating metrics
1HFY2021 RESULTS ADDITIONAL INFORMATION Coal operating metrics1 For personal use only 1HFY2021 1HFY2020 Variance 2HFY2020 Total tonnes hauled (m) 101.8 106.3 (4%) 107.6 Contract utilisation 82% 86% (4ppt) 87% Total NTK (b) 23.7 24.8 (4%) 25.2 Average haul length (km) 233 233 - 234 Total revenue / NT
Slide 56: Coal tonnes (mt) by system
1HFY2021 RESULTS ADDITIONAL INFORMATION Coal tonnes (mt) by system For personal use only 1HFY2021 1HFY2020 Variance 2HFY2020 CQCN Newlands 9.1 10.5 (13%) 10.3 Goonyella 28.7 29.1 (1%) 30.8 Blackwater 26.6 28.4 (6%) 27.2 Moura 6.8 6.3 8% 7.5 Total CQCN 71.2 74.3 (4%) 75.8 NSW & SEQ West Moreton 2.2 3
Slide 57: Coal contract portfolio
1HFY2021 RESULTS ADDITIONAL INFORMATION Coal contract portfolio For personal use only AURIZON COAL CONTRACT VOLUME EXPIRY BY YEAR1 COAL CONTRACT PORTFOLIO EXPIRY1 AS AT 31 DECEMBER 2020 AS AT 31 DECEMBER 2020 60 18% 0-3 years 3-7 years 56% 7+ years 45 26% Million tonnes per annum (Mtpa) 30 FORECAST
Slide 58: Additional Information: Bulk
For personal use only Additional Information: Bulk
Slide 59: Bulk operations – Queensland
1HFY2021 RESULTS ADDITIONAL INFORMATION Bulk operations – Queensland For personal use only 58
Slide 60: Bulk operations – New South Wales, Victoria and South Australia
1HFY2021 RESULTS ADDITIONAL INFORMATION Bulk operations – New South Wales, Victoria and South Australia For personal use only 59
Slide 61: Bulk operations – Western Australia
1HFY2021 RESULTS ADDITIONAL INFORMATION Bulk operations – Western Australia For personal use only 60
Slide 62: Bulk – Australia Capital & Exploration Expenditure
1HFY2021 RESULTS ADDITIONAL INFORMATION Bulk – Australia Capital & Exploration Expenditure For personal use only CAPITAL EXPENDITURE: METAL ORE MINING1 EXPLORATION EXPENDITURE: IRON ORE A$6.0b A$150m +24% +8% A$4.0b A$100m A$2.0b A$50m A$0.0b A$0m Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- De
Slide 63: Bulk commodities: Supply growth
1HFY2021 RESULTS ADDITIONAL INFORMATION Bulk commodities: Supply growth For personal use only GLOBAL AND AUSTRALIA SUPPLY GROWTH (CAGR 2019-2025) Selected commodities 12% 10% 8% 6% 4% 2% n/a n/a 0% -2% -4% Nickel Lithium Zinc Copper Iron ore Alumina Bauxite Potash Phosphate Global Australia Notes/So
Slide 64: Additional information: Network
For personal use only Additional information: Network
Slide 65: Central Queensland Coal Network (CQCN)
1HFY2021 RESULTS ADDITIONAL INFORMATION Central Queensland Coal Network (CQCN) CQCN includes the Moura, Blackwater, Goonyella, Newlands and Goonyella to Abbot Point For personal use only (GAPE) coal systems 64
Slide 66: Network financial and operating metrics
1HFY2021 RESULTS ADDITIONAL INFORMATION Network financial and operating metrics For personal use only 1HFY2021 1HFY2020 Variance 2HFY2020 Tonnes (m) 103.7 116.6 (11%) 110.3 NTK (b) 26.0 29.0 (10%) 27.2 Operating Ratio 59.3% 61.0% 1.7ppt 60.1% Maintenance/NTK ($/’000 NTK) 2.3 2.2 (5%) 2.4 Opex/NTK ($
Slide 67: Network volumes: All rail operators
1HFY2021 RESULTS ADDITIONAL INFORMATION Network volumes: All rail operators (million tonnes) For personal use only 1HFY2021 1HFY2020 Variance 2HFY2020 Newlands 4.9 7.2 (32%) 6.9 Goonyella 51.3 61.3 (16%) 56.5 Blackwater 30.5 32.3 (6%) 30.3 Moura 6.8 6.2 10% 7.4 GAPE 10.3 9.6 7% 9.2 Total 103.7 116.6
Slide 68: Network – 1HFY2021 Access Revenue movement
1HFY2021 RESULTS ADDITIONAL INFORMATION Network – 1HFY2021 Access Revenue movement For personal use only $m $m Decrease in Maximum Allowable Revenue (MAR) from 1HFY2020 to 1HFY2021 (1.9) Volume under-recovery for 1HFY2021 (65.7) Volume under-recovery for 1HFY2020 (reversal of 1HFY2020 impact) 11.0 G
Slide 69: Network adjusted MAR bridge – Approved UT5 Undertaking
1HFY2021 RESULTS ADDITIONAL INFORMATION Network adjusted MAR bridge – Approved UT5 Undertaking For personal use only INDICATIVE NETWORK ADJUSTED MAXIMUM ALLOWABLE REVENUE (MAR)^ FY2019 – FY2023 ($M) 7 4 ~960 21 7 11 24 24 ~946 4 13 ~940 23 13 ~914 ~77 869 12 23 60 45 FY19 FY19 FY20 FY17 FY2018 MAR F
Slide 70: Network revenue adjustment amounts (revenue cap)
1HFY2021 RESULTS ADDITIONAL INFORMATION Network revenue adjustment amounts (revenue cap) For personal use only AT2-4 AT5 Total Financial Year (diesel tariff) (electric tariff) › Revenue adjustment amounts (RAA) are the $m $m $m difference by system between Aurizon’s Total 1,2 Actual AT2-5 Revenue an
Slide 71: Reconciliation of billed MAR to reported access revenue
1HFY2021 RESULTS ADDITIONAL INFORMATION Reconciliation of billed MAR to reported access revenue For personal use only FY2021 FY2020 FY2019 $m Estimate1 Actual Actual Billed Access Revenue (AT1 to AT5) (ex. GAPE) 946 927 885 Approved Adjustments to MAR Revenue Cap (ex. GAPE and inclusive of capitalis
Slide 72: UT5 Undertaking
1HFY2021 RESULTS ADDITIONAL INFORMATION UT5 Undertaking Aurizon Network’s access undertaking establishes the framework for access to the coal rail For personal use only infrastructure in central Queensland UT5 TIMELINE 3 May 2019 September 2021 Quarter 1 July 2023 30 June 2027 1 July 2017 Report Dat
Slide 73: UT5 Undertaking: Revenue Protection Mechanisms
1HFY2021 RESULTS ADDITIONAL INFORMATION UT5 Undertaking Revenue Protection Mechanisms For personal use only The Maximum Allowable Revenue (MAR) is the total INDICATIVE SYSTEM REVENUE PROTECTION MECHANISM revenue Aurizon Network is permitted to earn each year, determined in accordance with the Regula
Slide 74: UT5 Undertaking: Regulated Asset Base (RAB)
1HFY2021 RESULTS ADDITIONAL INFORMATION UT5 Undertaking Regulated Asset Base (RAB) For personal use only 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, t
Slide 75: UT5 Undertaking: Building Blocks
1HFY2021 RESULTS ADDITIONAL INFORMATION UT5 Undertaking Building Blocks For personal use only BUILDING BLOCK DETAIL Return on capital (WACC) › 5.70% from 1 July 2017 to 2 May 2019 › 5.90% from 3 May 2019 to Report Date (expected September 2021 quarter) › 6.30% from Report Date to 30 June 2023 › WACC
Slide 76: UT5 Undertaking: Rebate Mechanism
1HFY2021 RESULTS ADDITIONAL INFORMATION UT5 Undertaking Rebate Mechanism For personal use only 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
Slide 77: UT5 Undertaking: QCA Role
1HFY2021 RESULTS ADDITIONAL INFORMATION UT5 Undertaking QCA Role For personal use only › Will pre-approve Maintenance strategies and budgets in the event agreement is not reached between Network and customers 1 › Will approve capital expenditure on a post-expenditure review basis for efficiency and
Slide 78: Independent Expert
1HFY2021 RESULTS ADDITIONAL INFORMATION Independent Expert The Independent Expert, Coal Network Capacity Co Pty Ltd, is progressing development of the For personal use only Initial Capacity Assessment Report (ICAR) and remaining obligations Activity Progress Notes › Incorporation of Coal Network Cap
Slide 79: Additional information: Capital Expenditure
For personal use only Additional information: Capital Expenditure
Slide 80: Group and business unit capital expenditure
1HFY2021 RESULTS ADDITIONAL INFORMATION 1HFY2021 group and business unit capital expenditure ($m) Capital result in line with guidance for FY2021 For personal use only 240 15 140 2 225 65 138 7 28 58 6 22 2 5 2 5 1HFY20211,2 Network1,2 Coal1 Bulk2 Intermodal Corporate Growth Non Growth 1. Includes c
Slide 81: Glossary
1HFY2021 RESULTS ADDITIONAL INFORMATION Glossary For personal use only Metric Description Access Revenue Amounts received by Aurizon Network for access to the Network infrastructure under all Access Agreements AFD Access Facilitation Deed Average haul length NTK/Total tonnes Contract utilisation Tot
Slide 82: For personal use only
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