Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — Corporate Update (June 2019)
15 slides from Aurizon's corporate update, Jun 17, 2019
Slide 1: UT5 Investor 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 17 June 2019 UT5 Investor Presentation Please find attached a presentation to be made to investors for release to the market. Kind regards D
Slide 2: UT5 Update
UT5 Update For personal use only 17 June 2019
Slide 3: Disclaimer
UT5 UPDATE 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 Nothing in this presentation should be construed as a recommendation of or an offer to sell or a as “Aurizon” which in
Slide 4: Overview of the customer DAAU
UT5 UPDATE Overview of the customer DAAU Through constructive engagement with our customers, Aurizon Network (Aurizon) has submitted a For personal use only customer DAAU that delivers significant regulatory reform and a range of benefits for both Aurizon and customers 10 year undertaking term (2017
Slide 5: Key revisions to the UT5 Final Decision
UT5 UPDATE Key revisions to the UT5 Final Decision UT5FD will apply until the DAAU approval date. From the DAAU approval date the key For personal use only changes under the agreement are outlined below INDICATIVE WACC TIMELINE1 03/05/19 30/06/17 30/06/18 30/06/19 30/06/20 30/06/21 30/06/23 30/06/27
Slide 6: Update since lodgement of the DAAU
UT5 UPDATE Update since lodgement of the DAAU Timeline of activities that have been undertaken since lodgement of the DAAU For personal use only DATE DETAILS 3 May 2019 Aurizon lodged Customer DAAU with QCA All customers and above rail operators advised of the Customer DAAU. Detailed briefings 7 May
Slide 7: Network adjusted MAR bridge - Customer DAAU
UT5 UPDATE Network adjusted MAR bridge - Customer DAAU Indicative Network adjusted MAR (Ex GAPE) for FY2019 to FY2023 based on the revised terms For personal use only of the Customer DAAU INDICATIVE NETWORK ADJUSTED MAR* FY2018 – FY2023 ($M) ~954 ~953 ~5 ~949 ~4 ~8 ~945 ~19 936 ~50 ~45 ~875 60 60 45
Slide 8: QCA role
UT5 UPDATE QCA role The QCA has an ongoing role under the DAAU For personal use only › Will pre-approve Maintenance strategies and budgets in the event agreement is not reached between Aurizon and customers › Will approve capital expenditure on a post-expenditure review basis for efficiency and prud
Slide 9: Other regulatory matters
UT5 UPDATE Other regulatory matters In addition to the customer DAAU, Aurizon has been working on a number of other regulatory For personal use only matters › Lodged with QCA on 7 May 2019 › The DAAU covers: REFERENCE TARIFF FY2018 and FY2019 true up (to be accounted for in FY2019) VARIATION DAAU
Slide 10: Contact and further information
Contact and further information Chris Vagg Kath Clapham Head of Investor Relations & Group Treasurer Manager Investor Relations chris.vagg@aurizon.com.au kath.clapham@aurizon.com.au For personal use only +61 7 3019 9030 +61 7 3019 9044 ASX: AZJ US OTC: AZNNY
Slide 11: Rebate mechanism
UT5 UPDATE ADDITIONAL INFORMATION Rebate mechanism Rebate will be payable to customers where Aurizon performs below target levels For personal use only › A customer will be entitled to a rebate from Aurizon where it has received less than its annual contracted capacity, as assessed by the Independen
Slide 12: Detailed MAR breakdown Customer DAAU v UT5FD
UT5 UPDATE ADDITIONAL INFORMATION Detailed MAR breakdown Customer DAAU v UT5FD The summary below excludes GAPE and assumes no volume variance or rebates payable For personal use only CUSTOMER DAAU (ex GAPE) VARIANCE CUSTOMER DAAU v UT5FD (ex GAPE) $m FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21
Slide 13: What's included in each building block
UT5 UPDATE ADDITIONAL INFORMATION What’s included in each building block For personal use only BUILDING BLOCK DETAILS Return on capital (WACC) › 5.70% from 1 July 2017 to 2 May 2019 › 5.90% from 3 May 2019 to Report Date (expected 2HFY2020) › 6.30% from Report Date to 30 June 2023 › WACC reset at 1
Slide 14: What's included in each building block
UT5 UPDATE ADDITIONAL INFORMATION What’s included in each building block For personal use only BUILDING BLOCK DETAILS Operating expenditure › Includes all costs associated with train control, planning, infrastructure management and business development. It also includes corporate overheads for the o
Slide 15: Glossary
UT5 UPDATE ADDITIONAL INFORMATION Glossary For personal use only Item Description Access Revenue Amounts received by Aurizon Network for access to the Network infrastructure under all Access Agreements Approval Date The date on which the Customer DAAU was approved by the QCA CQCN Central Queensland