Transurban Group Ltd. · ASX:TCL
Transurban — Investor Day (March 2010)
48 slides from Transurban's investor day presentation, Mar 26, 2010
Slide 1: ASX release: Investor Presentation
asx release For personal use only 26 March 2010 Investor Presentation Please find attached a presentation which will be provided at a Transurban investor day today. Audio files of this presentation will be uploaded on to the Transurban website www.transurban.com following completion of the presentat
Slide 2: Transurban Investor Day 26 March 2010
For personal use only TRANSURBAN INVESTOR DAY 26 MARCH 2010 1
Slide 3: Disclaimer
DISCLAIMER For personal use only 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 International Limited (ARBN 121 746 825). The responsible entity of Transurban Holding Trust is T
Slide 4: Agenda
AGENDA For personal use only Time Presentation Speaker Tom Honan 9.30am Introduction Chief Financial Officer Brendan Bourke 9.45am Australian Operations Chief Operating Officer John Mundy 10.15am Traffic modelling & forecasting Head of Traffic Services Melissa Clarkson 10.45am Sustainability Manager
Slide 5: Investor Road Show
INVESTOR ROAD SHOW For personal use only Investor road show March 2010 – Met with 45 offshore and 24 domestic investors Key areas of interest included: – Change of control proposal – Status of key growth projects • Funding requirements • CityLink traffic expectations post Monash-CityLink-West Ga
Slide 6: Australian Operations
For personal use only AUSTRALIAN OPERATIONS Brendan Bourke CHIEF OPERATING OFFICER 5
Slide 7: Australian Operations Contents
AUSTRALIAN OPERATIONS CONTENTS For personal use only Track record of value initiatives The Value framework MCW Upgrade 6
Slide 8: Track Record: Operational Capability
TRACK RECORD OPERATIONAL CAPABILITY For personal use only Demonstrated leader in technological innovation Product innovation Leader in network management 7
Slide 9: Operator Value Add
OPERATOR VALUE ADD For personal use only Value framework provides overarching model defining key drivers for creating value – Revenue and cost focus – Capture knowledge and I.P. – Ensure complete approach to Asset Management Focus management and resources Represented across Operations and Corp
Slide 10: The Value Framework: Primary Drivers
THE VALUE FRAMEWORK PRIMARY DRIVERS For personal use only OPERATIONS Actively Manage Concession Increase Road Improve Optimise Capacity & Revenue Product Design Availability Realisation Optimise Operator Model Optimise Service Delivery 9
Slide 11: The Value Framework: Primary Drivers
THE VALUE FRAMEWORK PRIMARY DRIVERS For personal use only FRAMEOWKR FRAEMWORK 1 Actively Manage Concession To optimise rights 5 Optimise Operator Model To maximise structural FRAMEWORK A. Understand rights B. Manage Reputation A. Tolling & Customer Management efficiency of operations C. Negotiate co
Slide 12: Value Framework: Comprehensive Approach
VALUE FRAMEWORK COMPREHENSIVE APPROACH For personal use only No. of Examples of Initiatives Value Framework Category Initiatives that benefit FY10 1. Actively Manage Concession 4 • M2 Toll changes 2. Increase Road Capacity & Availability 1 • MCW Upgrade Project 3. Optimise Product design 7 • Mail to
Slide 13: MCW Upgrade: Project Scope
MCW UPGRADE PROJECT SCOPE For personal use only 12
Slide 14: MCW Upgrade: New Capacity Status
MCW UPGRADE NEW CAPACITY STATUS For personal use only Monash Freeway - Southern Link to CityLink Heatherton Rd – Planned construction completed – Staged opening – final section occurred September 2009 Quarter 13 December 2009 – 4th Outbound Lane opened in conjunction West Gate Freeway with Mon
Slide 15: MCW Upgrade: CityLink Traffic Results
MCW UPGRADE CITYLINK TRAFFIC RESULTS For personal use only Jan/Feb Jan/Feb % change 2010 2009 (actual) Average Daily Transactions (ADT) 669,305 637,631 5.0% Average Workday Transactions 754,739 715,884 5.4% 14
Slide 16: Conclusion
CONCLUSION For personal use only Track record of value initiatives Value framework in place – Comprehensive approach to asset management in the near, medium and longer term Delivery of MCW Upgrade – Project in final stages – Benefits to CityLink being observed 15
Slide 17: Traffic Modelling & Forecasting
For personal use only TRAFFIC MODELLING & FORECASTING John Mundy HEAD OF TRAFFIC SERVICES 16
Slide 18: Traffic Services Group
TRAFFIC SERVICES GROUP For personal use only Builds, maintains and develops appropriate traffic models for each city where Transurban has interests – (Australia and US) Provides strong internal traffic forecasting and modelling competency with focus on: – Existing assets – monitor potential thre
Slide 19: Traffic Modelling
TRAFFIC MODELLING For personal use only Transport Model – with flow of information between and around 3 main blocks requiring iterative FEEDBACK Loops Traffic Assignment Demand Estimation Public Transport What routes, what How many, from where, Modelling overall 'costs'? Car to where and what Public
Slide 20: Traffic Modelling
TRAFFIC MODELLING For personal use only Traffic Assignment Demand Estimation Public Transport What route from A to B? How many, from where, to What routes, what overall where and what mode? costs? Future schemes Future projects Land use People Public Transport Car - Total Land use Trip rates Total '
Slide 21: Traffic Modelling: Transurban Difference
TRAFFIC MODELLING TRANSURBAN DIFFERENCE For personal use only Transurban has differentiated capability and focus – Dedicated resource, constantly enhancing traffic models and developing valuable IP – Access to detailed traffic flows through existing asset base – Focused on long term traffic revenu
Slide 22: The MCW Upgrade: Business Case
THE MCW UPGRADE BUSINESS CASE For personal use only Pre MCW upgrade, tunnels heading for under-utilisation – In-house team worked with State‟s traffic engineers to find a solution SOUTHERN LINK WESTERN LINK LEGEND 500000 Represents demand trend for Southern 2001 2002 2003 2004 2005 2006 2007 2008
Slide 23: Disruption and Uplift Forecast
DISRUPTION AND UPLIFT FORECAST For personal use only 900,000.00 15% WITH PROJECT AADT (LHS) %age differences between NO project and WITH project NO PROJECT AADT (LHS) 800,000.00 10% AADT Traffic Volumes 7% %age DIFFERENCE (RHS) 700,000.00 5% 600,000.00 0% -1% -4% 500,000.00 -5% 2006 2007 2008 2009 2
Slide 24: Sustainability
For personal use only SUSTAINABILITY Melissa Clarkson MANAGER, SUSTAINABILITY 23
Slide 25: Sustainability Strategy
SUSTAINABILITY For personal use only Strategy for aligning our business with the long-term interests of our stakeholders Our commitment to sustainability makes Transurban more attractive to governments granting road concessions Embedded in the business, not an add-on Board–level Sustainabili
Slide 26: Sustainability Framework
SUSTAINABILITY FRAMEWORK For personal use only Company strategy and governance forms the foundation of our approach Four „pillars‟ of sustainability – marketplace, communities, environment and employees Publicly report our performance and commitments in our annual sustainability report 25
Slide 27: Sustainability Focus
SUSTAINABILITY FOCUS For personal use only Marketplace Community Environment Employees Customer safety Partnerships & Climate change & OHS sponsorships greenhouse gas Customer privacy Workplace flexibility emissions Integrated transport Customer satisfaction Staff development and s
Slide 28: Climate Change
CLIMATE CHANGE For personal use only Framework for assessing and managing climate change related risks Pre-emptive work, not driven by compliance Listed in CDP‟s Climate Disclosure Leadership Index (Aust/NZ) since 2006 27
Slide 29: GHG Emissions
GHG EMISSIONS For personal use only Scope 1 emissions are negligible Transurban‟s combined scope 1 and 2 emissions as a percent of EBITDA are ranked in the bottom third of ASX100* Majority of scope 2 emissions are from energy used to power ventilation systems in CityLink tunnels Ongoing work
Slide 30: Australian Development
For personal use only AUSTRALIAN DEVELOPMENT Andrew Head GGM, DEVELOPMENT AND STRATEGY 29
Slide 31: Key Markets Overview
KEY MARKETS OVERVIEW For personal use only Sydney Melbourne Brisbane M2 & M5 upgrades on track CityLink upgrade coming Government asset sales Monitoring secondary asset online program may be attractive markets – LCT, CCT Monitoring secondary asset Monitoring secondary asset Future nego
Slide 32: M2 Upgrade: Project on Track
M2 UPGRADE PROJECT ON TRACK For personal use only In-principle agreement signed October 2009 Key activities to financial close: – Environmental approval – Finalise project documentation – M2 Upgrade Deed – Deed consolidation – D&C contract – Detailed design Financial close targeted before end
Slide 33: M2 Upgrade: Environmental Approval Process
M2 UPGRADE ENVIRONMENTAL APPROVAL PROCESS For personal use only WE ARE HERE Step 1 Step 2 Step 3 a. Department of a. EA preparation in Planning adequacy consultation with review a. Director General RTA b. Public exhibition (30 Report prepared for b. Submission to days minimum) & Minister Department
Slide 34: M5 Widening: Progressing to Schedule
M5 WIDENING PROGRESSING TO SCHEDULE For personal use only Initial Agreement executed December 2009 Part 3A and critical infrastructure declaration received March 2010 RTA currently preparing Environmental Assessment (different to M2) Updated proposal under development – Scope and design – Tr
Slide 35: Lane Cove Tunnel Formal Sale Underway
LANE COVE FORMAL TUNNEL SALE UNDERWAY For personal use only Transurban participating in receiver‟s sale process – Data room open – Detailed due diligence in progress Transurban is natural owner of asset – direct connection to M2 – Enhances Transurban interest in north-west corridor (M7-M2) – Pot
Slide 36: Queensland: Attractive Market
QUEENSLAND ATTRACTIVE MARKET For personal use only Queensland Motorways Limited (QML) – Government has announced sale program – QML to be offered mid-2011 (post Gateway Upgrade) – Assets include Gateway and Logan Motorways – Concession period up to 50 years – Likely to include requirements for sig
Slide 37: Conclusion: Significant Growth Pipeline
CONCLUSION SIGNIFICANT GROWTH PIPELINE For personal use only M2 & M5 upgrades targeted for final agreement by the end of 2010 Secondary market opportunities have the potential to present themselves Further negotiated projects identified in Sydney and Melbourne – no approaches made to date QM
Slide 38: North America
For personal use only NORTH AMERICA Michael Kulper PRESIDENT NORTH AMERICA 37
Slide 39: North American Market: Focused Growth
NORTH AMERICAN MARKET FOCUSED GROWTH For personal use only Targeted approach – Near-term focus in Virginia – Working with Virginia Department of Transportation to develop network opportunity – Capital Beltway HOT lanes under construction – In negotiation with VDOT on I-95 Market leadership posit
Slide 40: Capital Beltway Key Features
NORTH AMERICAN MARKET CAPITAL BELTWAY KEY FEATURES For personal use only Construction on track (first tolls 2013) – Four new lanes (2 in each direction) will operate as High Occupancy Toll (HOT) lanes alongside existing lanes Innovative transport solution – Uncapped dynamic tolling to regulate t
Slide 41: Capital Beltway: Transmodeller Simulation Model
CAPITAL BELTWAY TRANSMODELLER SIMULATION MODEL For personal use only 40
Slide 42: Capital Beltway: Project Status
CAPITAL BELTWAY PROJECT STATUS For personal use only Construction – Safety – Contractor worked 2 million man hours with only one lost time injury – Schedule – On track for on-time completion – Claims - No material claims from client or contractor Tolling systems and operations planning – Signifi
Slide 43: Capital Beltway: Construction Progress
CAPITAL BELTWAY CONSTRUCTION PROGRESS For personal use only 42
Slide 44: Capital Beltway: Construction Progress
CAPITAL BELTWAY CONSTRUCTION PROGRESS For personal use only 43
Slide 45: Pocahontas
POCAHONTAS For personal use only Year-on-year traffic declines moderating Future performance a function of Richmond economy and housing construction activity Richmond Airport Connector delivery on schedule 44
Slide 46: North American Market: Projects in Negotiation
NORTH AMERICAN MARKET PROJECTS IN NEGOTIATION For personal use only I-95 - Second major HOT Lane opportunity for Transurban in Virginia Virginia Department of Transportation has: – Advised they are hopeful of timely resolution of local government concerns – Lifted suspension of development activ
Slide 47: North American Market: Conclusion
NORTH AMERICAN MARKET CONCLUSION For personal use only Virginia market remains focus of activities Capital Beltway – Construction to progress substantially over the next 12 months I-95 – Negotiations have recommenced – Timing remains uncertain Richmond Airport Connector – Remains on track fo
Slide 48: For personal use only
For personal use only 47