Transurban Group Ltd. · ASX:TCL
Transurban — Investor Presentation (November 2005)
36 slides from Transurban's investor presentation, November 2005
Slide 1: Growing Market, Growing Company, Growing Distributions
Growing Market Growing Company Growing Distributions November 2005
Slide 2: Disclaimer
Disclaimer The Transurban Group is a triple stapled security listed on the Australian Stock Exchange comprising Transurban Holdings Limited (ACN 098 143 429), Transurban Holdings Trust (ARSN 098 807 419) and Transurban Limited (ACN 098 143 410). The responsible entity of the Transurban Holdings Trus
Slide 3: Agenda
Agenda • Market Overview • Transurban • USA Opportunities
Slide 4: The transport infrastructure market
The transport infrastructure market • Massive backlog of transport expenditure worldwide • Road congestion restricts economic growth • $160-$200 billion on privately funded toll roads (10 years)* • Government asset sales increasing (France/USA) • Private toll road industry still in its infancy *Sour
Slide 5: Estimate of Privately Financed Infrastructure Worldwide
Estimate of Privately Financed Infrastructure Worldwide to 2015 US$B 470 184 162 82 42 100% 8 6 12 1 1 14 19 7 11 Airports 75% 14 45 Seaport 61 45 Rail 37 50% Road 38 Source: Public Works financing, 25% 46 36 38 28 32 McKinsey 0% World-Wide Asia-Pacific Europe North America South America
Slide 6: North America budget deficits and traffic congestion costs
North America – Budget surplus / (deficit) – Traffic congestion costs Budget surplus / (deficit) forecast Source: Centre on Budget and 0 2005 (annual) Policy Priorities, Feb. 2004 -2 Vg Tx NJ Cal Fl -4 -6 -8 -10 -12 -14 -16 Traffic congestion 25 and The Road Information Program Source: Texas Transpo
Slide 7: Mature phase
Mature phase • Low risk, predictable growing revenue streams • Inflation hedged • Traffic growth typically exceeds economic growth • Long-life assets • Growth options
Slide 8: Development Phase
Development Phase • Three key risks – Construction – Tolling – Traffic patronage • Superior returns comes from successfully managing these risks
Slide 9: Transurban Group vision & business
Transurban Group vision & business Vision: • The pre-eminent global toll road developer, owner and manager, producing superior shareholder returns by delivering innovative transport solutions that work better for the people and businesses using them. Current Business: • The application of capital to
Slide 10: Who is Transurban
Who is Transurban • Top ten road investor globally • Low risk diversified portfolio of Australia’s best toll road assets • Development group deriving additional value • Strong cash flow and substantial debt capacity CityLink M2 WM7 100% Ownership and 100% ownership 40% Ownership and Operations 100%
Slide 11: Strong balance sheet assists distribution profile
Strong balance sheet assists distribution profile • Strong cash flow and substantial debt capacity • Targeting maintenance of A- rating* enabling – 50 cents distribution FY06 – 54 cents distribution FY07 – Distribution growth continues beyond 2007 supported by Westlink M7 free cash flow – Current yi
Slide 12: Interest Rate Hedging
Interest Rate Hedging • Low debt rates locked in • 85% of debt fixed at an average 6.5% to 2010 • Average maturity extended to 8.8 years
Slide 13: Transurban skill base
Transurban skill base • Traffic • Financial structuring • Tolling systems • Customer first focus • Concession management • Project delivery
Slide 14: Melbourne CityLink
Melbourne CityLink FY05 result • Traffic Ï 4.6% • Revenue Ï 8% • CityLink operation costs Ð 6% – Customer service transaction cost Ð 14% • Operational cash flow Ï 14.7% Key facts • 22 km motorway • Concession until 2034 • Toll increases 4.5% or inflation Freeways CityLink
Slide 15: Owning concession provides growth options
Owning concession provides growth options CityLink • Tullamarine / Calder Interchange – Fixing a “Black Spot” to increase traffic – Using a prepayment of Concession Notes • Discounted at 9.5% – Sharing incremental traffic revenue with State • Discount rate 11.4% (1) – Incident response taken over •
Slide 16: Transurban's Sydney Assets
Transurban’s Sydney Assets M2 • 100 per cent owned • 20 km motorway • Concession until 2034 • Toll increases at greater of 4.06% or inflation M7 • 40 per cent owned • 40 km motorway • Concession until 2037 • CPI toll increases Westlink M7 & Hills M2 Freeways Existing Motorways Committed Motorways Pl
Slide 17: Westlink M7 – construction, tolling, traffic
Westlink M7 – construction, tolling, traffic Construction well advanced • 8 months ahead of schedule • Completion due December 2005 Tolling systems approved • “Roam” user friendly tolling services – launched • $50 M7 toll credits Strong development • Industrial growth continues at a pace • Residenti
Slide 18: Westlink M7 – strong industrial development continues
Westlink M7 – strong industrial development continues Over next 5 years almost half of Sydney’s industrial construction is expected around the M7/M4 interchange Logistics / Industrial developments: • Woolworths • Coles Myer • Blue Scope Steel • TNT • LG • Coca Cola
Slide 19: Westlink M7 – land releases will drive growth
Westlink M7 – land releases will drive growth M2 Westlink M7 New Land Release M4 M5
Slide 20: Hills M2
Hills M2 FY05 result • Traffic Ï 3.8% • Revenue Ï 6.6% • Toll revenue $88.8m
Slide 21: Hills M2
Hills M2 • Important feeder to Westlink M7 • Operation synergies and cost savings between the two roads • Increased revenue and less leakage from bringing forward full electronic tolling • Combined group balance sheet under-geared
Slide 22: Bringing forward full electronic tolling
Bringing forward full electronic tolling High speed tolling Source – Hills Motorway Interim Results
Slide 23: Hills M2 synergies & improvements
Hills M2 synergies & improvements • $5 - $6 million synergies and cost savings – $500k insurance – $1.5m listing / public company fees – Reduced spending on non-contracted Operations • Express lanes – RTA approved
Slide 24: USA Opportunities
USA Opportunities • Focused on key states – Virginia – Texas • Strong partner - Fluor
Slide 25: Virginia, USA
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Slide 26: Pocahontas Parkway (Virginia USA)
Pocahontas Parkway (Virginia USA) • Existing Motorway • Exclusive right to purchase until Dec 2005
Slide 27: Capital Beltway (Virginia, USA)
Capital Beltway (Virginia, USA)
Slide 28: Capital Beltway "Hot" Lane project
Capital Beltway “Hot” Lane project • Preferred proponent • 14 miles (22.5 kms) of “Hot” lanes • Financial Close expected late 2006 Proposed Capital Beltway HOT-Lane 4-2-2-4 Section and Photos of Similar SR91 HOT-Lanes in operation
Slide 29: I-95 "Hot" Lane project (Virginia, USA)
I-95 “Hot” Lane project (Virginia, USA) • Preferred proponent • 56 miles (100 kms) of “Hot” lanes • Financial Close expected mid / late 2007
Slide 30: Other US opportunities
Other US opportunities Virginia • Dulles Toll Road – Existing 14 mile (22kms) toll road links Capital Beltway to Dulles International airport Texas • SH 820/IH183A, Dallas – HOT lane project – one of four shortlisted • 121, Dallas – Tollway under construction – one of four shortlisted • LBJ Tunnel,
Slide 31: Australian opportunities
Australian opportunities • Airport Link (Brisbane) • M4 East (Sydney) • F3 / M2 (Sydney) • Pacific Highway (NSW)
Slide 32: The Transurban picture
The Transurban picture • Strong distribution growth • Strong financial position • Successful value adding assets • Development of core skills & people • Emerging opportunities in USA
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Slide 34: Pocahontas Parkway (Virginia, USA)
Pocahontas Parkway (Virginia, USA)
Slide 35: I-95 (Virginia, USA)
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Slide 36: Capital Beltway (Virginia, USA)
Capital Beltway (Virginia, USA)
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