Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — 1HFY2023 Earnings Presentation
77 slides from Aurizon's earnings presentation, Feb 13, 2023
Slide 1: Half Year Results Presentation ASX announcement
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 13 February 2023 Half Year Results Presentation Please find attached for immediate release to the market, the Half Year Results presentation
Slide 2: 1HFY2023 Results
1HFY2023 Results For personal use only 13 February 2023 Photo: Loaded zinc train, Oak Valley, between Antill Plains and Stuart Refuge on the Mount Isa line near Townsville. Photo: Leon Harris – Trainee Locomotive Driver
Slide 3: Disclaimer
1HFY2023 RESULTS Disclaimer For personal use only NO RELIANCE ON THIS DOCUMENT STATEMENTS ABOUT THE FUTURE This document was prepared by Aurizon Holdings Limited (ACN 146 335 622) (referred to as “Aurizon” which includes its related This document contains “forward-looking statements”. The words “exp
Slide 4: Safety performance
1HFY2023 RESULTS Safety performance For personal use only TOTAL RECORDABLE INJURY FREQUENCY RATE (TRIFR)1 AND LOST POTENTIAL SERIOUS INJURY AND FATALITY FREQUENCY RATE TIME INJURY FREQUENCY RATE (LTIFR) (SIFRa+p)2 Incidents per million hours worked Incidents per million hours worked 10.21 6.77 +1% 8
Slide 5: Introduction & Overview
For personal use only Introduction & Overview Andrew Harding Managing Director & CEO Photo: Aurizon train, south of Menzies in the Northern Goldfields, approximately 128kms north of Kalgoorlie, Blake Jones – Aurizon Tutor Drive (Central WA)
Slide 6: Key achievements
1HFY2023 RESULTS INTRODUCTION & OVERVIEW Key achievements Significant actions in the half to deliver our corporate strategy For personal use only Enhancing resilience Enhancing resilience Enhancing resilience Driving Bulk Returns Enterprise Agreements TrainGuard technology One Rail acquisition Netwo
Slide 7: 1HFY2023 Results
1HFY2023 RESULTS INTRODUCTION & OVERVIEW 1HFY2023 Results1 Financial performance reflects prolonged wet weather and investment in Bulk growth For personal use only EBITDA ONE RAIL ROIC2 FREE CASHFLOW3 (EXCLUDES GROWTH CAPEX) $1.45b Bulk acquisition $673m completed East Coast Rail 8.5% $95m down 7% d
Slide 8: Commodity markets update
1HFY2023 RESULTS INTRODUCTION & OVERVIEW Commodity markets update Prolonged rainfall recorded in QLD and NSW across 1H-FY2023 impacted Australian coal export volumes. For personal use only Record grain export volume expected for 2022-23 season RAINFALL: QUEENSLAND & NEW SOUTH WALES1 1H: AUSTRALIAN T
Slide 9: Commodity markets update
1HFY2023 RESULTS INTRODUCTION & OVERVIEW Commodity markets update Record crude steel production in India in 2022. Elevated coal prices remain, supporting an expected For personal use only recovery in export volume in FY2024 COAL PRICES1 INDIA CRUDE STEEL PRODUCTION2 Monthly average Million tonnes (C
Slide 10: Investing in Bulk growth
1HFY2023 RESULTS INTRODUCTION & OVERVIEW Investing in Bulk growth In response to the opportunities presenting in the business (particularly Bulk Central), investment For personal use only is being made in capacity including rollingstock, track, port and terminals Embedding Bulk Central Bulk: Austral
Slide 11: Containerised freight
1HFY2023 RESULTS INTRODUCTION & OVERVIEW Containerised freight The Bulk Central corridor provides the ability to expand our service offering For personal use only › Existing containerised freight services between Adelaide and Containerised Freight: Service Offerings Darwin, and Brisbane and Cairns H
Slide 12: Financial Performance
Financial Performance For personal use only George Lippiatt CFO & Group Executive Strategy Photo: Sunrise at Berrimah Freight Terminal, Northern Territory, Steve Vanderhorst – Terminal Operator
Slide 13: Key financial results
1HFY2023 RESULTS FINANCIAL PERFORMANCE Key financial results1 Acquisition and higher energy and fuel prices (largely pass through) driving higher revenue (and For personal use only operating costs). Lower volumes for both Coal and Network impacting revenue $m 1HFY2023 1HFY2022 Variance (%) Variance
Slide 14: Coal
1HFY2023 RESULTS FINANCIAL PERFORMANCE Coal Prolonged wet weather impacted volumes during the half For personal use only EBITDA: Major drivers ($M) Revenue (inc. net access) Operating costs net of fuel and access (revenue and cost) 286 $576m ($346m) (5%) (9%) 47 EBITDA Tonnes hauled 6 1 4 230 $230m
Slide 15: Bulk
1HFY2023 RESULTS FINANCIAL PERFORMANCE Bulk Strong grain and acquisition of One Rail contributed to EBITDA growth For personal use only EBITDA: Major drivers ($M) Total Revenue Operating Costs net of fuel and access (revenue and cost) $521m ($421m) +51% (57%) 120 144 100 1 75 EBITDA Rail Tonnes Haul
Slide 16: Network
1HFY2023 RESULTS FINANCIAL PERFORMANCE Network Performance reflected lower volumes due to wet weather For personal use only EBITDA: Major drivers ($M) Total Revenue Operating Costs net of Electric Charge revenue and fuel and energy cost 380 $614m ($251m) +8% (33%) 11 5 6 EBITDA Tonnes 5 363 $363m 10
Slide 17: Free Cash Flow
1HFY2023 RESULTS FINANCIAL PERFORMANCE Free Cash Flow Impacted by investment in Bulk capacity and timing of working capital movements and tax For personal use only payments which is expected to normalise in second half and FY2024 FREE CASH FLOW ($M)1 Includes: $401 Network: EC revenue accrual ($54)
Slide 18: Capex
1HFY2023 RESULTS FINANCIAL PERFORMANCE Capex Bulk growth opportunities driving capital spend over the medium term. FY2023 spend expected For personal use only to be $500-$550m non-growth and ~$210m growth CAPITAL EXPENDITURE1 ($M) KEY BULK GROWTH PROJECTS ($M) ~710-760 Growth capital is increasing a
Slide 19: Inflation & Interest Rates
1HFY2023 RESULTS FINANCIAL PERFORMANCE Inflation & Interest Rates Aurizon has protections from increasing interest rates and inflation For personal use only Coal & Bulk: Revenue protection through CPI-linked rate Enterprise agreements (EAs): Covering ~70% of EA workforce escalations in almost all co
Slide 20: Funding update
1HFY2023 RESULTS FINANCIAL PERFORMANCE Funding update Debt increased to fund One Rail acquisition and future Bulk growth. Focus remains on For personal use only lengthening debt tenor and diversifying sources across Network and Operations FUNDING ACTIVITY KEY DEBT METRICS1 1HFY2023 FY2022 Aurizon Ne
Slide 21: Outlook & Key Takeaways
For personal use only Outlook & Key Takeaways Andrew Harding Managing Director & CEO Photo: Aurizon Port Services Newcastle (NSW)
Slide 22: FY2023 outlook
1HFY2023 RESULTS OUTLOOK & KEY TAKEAWAYS FY2023 outlook EBITDA guidance lowered by 4% reflecting prolonged wet weather and two-week Blackwater For personal use only derailment outage FY2023: › Group underlying EBITDA guidance $1,420m – $1,470m › Non-growth capex guidance of ~$500m - $550m and growth
Slide 23: For personal use only
For personal use only Photo: Bulk Central opening event at Dry Creek (SA)
Slide 24: Contact and further information
Contact and further information James Coe Head of Investor Relations & Market Intelligence For personal use only +61 7 3019 7526 James.Coe@aurizon.com.au ASX: AZJ 23
Slide 25: Additional Information: ESG
For personal use only Additional Information: ESG February 2023: Launch of Bulk UGL Rail C44aci locomotive, featuring artwork by Aurizon employee Laurie Anno in partnership with fellow members of Aurizon’s Indigenous Reference (IRG) Group. Each IRG member contributed to the artwork with finger dot p
Slide 26: Our Environmental, Social and Governance (ESG) contribution
1HFY2023 RESULTS ADDITIONAL INFORMATION Our Environmental, Social and Governance (ESG) contribution Aurizon continues to build a stronger and sustainable business For personal use only NET-ZERO COMMITMENT BY 2050… …WHILE WE SUPPORT OUR REGIONS AND …AND LEAD THROUGH TRANSPARENT COMMUNITIES… GOVERNANC
Slide 27: Climate Strategy and Action Plan
1HFY2023 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) For personal use only by 2050 Net-zero operational emissions by 2050 We will continue to assess and enhance our processes for Achievin
Slide 28: Australian Export Demand – Commodities
1HFY2023 RESULTS ADDITIONAL INFORMATION Australian Export Demand – Commodities Australia export commodities are driven by steel-intensive growth and thermal electricity For personal use only generation in Asia, in addition to new economy markets and food consumption COAL BULK › Metallurgical coal (o
Slide 29: Global & Australia Coal Summary
1HFY2023 RESULTS ADDITIONAL INFORMATION Global & Australia Coal Summary For personal use only Global Australia Thermal (Steam) Coal Metallurgical (Coking) Coal Production2 Coal Export Volume3 Total Coal Export (By Destination)3 CY2022 Export Revenue3 Production1 CY2021 Coal Production1 CY2021 CY2021
Slide 30: Coal markets
1HFY2023 RESULTS ADDITIONAL INFORMATION Coal markets The metallurgical coal-dependent method of steel production is over two-thirds of global steel For personal use only production. Thermal coal market is dominated by Asian trade, backed by young generation fleet GLOBAL CRUDE STEEL PRODUCTION | BLAS
Slide 31: Bulk markets
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk markets Demand growth for bulk commodities will be led by the transition to clean energy technologies For personal use only and rising food consumption in developing nations MINERAL DEMAND FROM CLEAN ENERGY TECHNOLOGIES1 FOOD CONSUMPTION: CALORIES PER CAP
Slide 32: Bulk – Australia Capital & Exploration Expenditure
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk – Australia Capital & Exploration Expenditure For personal use only CAPITAL EXPENDITURE: METAL ORE MINING1 EXPLORATION EXPENDITURE: IRON ORE2 A$6.0b +4% A$250m +15% A$200m A$4.0b A$150m A$100m A$2.0b A$50m A$0.0b A$0m Sep- Mar- Sep- Mar- Sep- Mar- Sep- Ma
Slide 33: Remuneration
1HFY2023 RESULTS ADDITIONAL INFORMATION Remuneration Short Term and Long Term Incentive Rewards For personal use only The Short Term Incentive Award (STIA) is remuneration subject to the The Long Term Incentive Award (LTIA) is linked to providing long-term achievement of pre-defined Company, Busines
Slide 34: Additional Information: Group
For personal use only [Picture to be added] Additional Information: Group Photo: Rankin Dam rail siding (Tarcoola to Darwin rail network) about 37kms south west of Coober Pedy in the South Australian outback, Brian Shortt – Regional Operations Manager Dry Creek (SA)
Slide 35: Overview
1HFY2023 RESULTS ADDITIONAL INFORMATION Overview Aurizon is Australia's largest rail-based transport business with broad commodity exposure For personal use only across above and below rail services, and port terminals Below Rail Network ▪ Operation of the Central Queensland Coal Network (2,670km),
Slide 36: Strategic objectives
1HFY2023 RESULTS ADDITIONAL INFORMATION Strategic objectives Resilient Network and Coal businesses supporting Bulk growth and shareholder returns For personal use only Evolving mix reduces thermal coal exposure Resilient Network and Outcome from achieving Growing bulk business Coal businesses Bulk a
Slide 37: Purpose, Vision, Values and Strategic Levers
1HFY2023 RESULTS ADDITIONAL INFORMATION Purpose, Vision, Values and Strategic Levers For personal use only 36
Slide 38: Prioritisation of capital
1HFY2023 RESULTS ADDITIONAL INFORMATION Prioritisation of capital For personal use only CAPITAL ALLOCATION HIERARCHY 1 2 3 4 DETERMINE AVAILABLE NON GROWTH CAPITAL DIVIDENDS SURPLUS CAPITAL CAPITAL › Ongoing operating cashflows › Sustaining and transformation › Within 70-100% payout ratio › Capital
Slide 39: Above Rail volumes
1HFY2023 RESULTS ADDITIONAL INFORMATION Above Rail volumes For personal use only Quarter Ending Financial year to date Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Variance1 1HFY2022 1HFY2023 Variance1 Coal volumes (million tonnes) CQCN 33.4 34.3 36.5 33.1 33.8 1% 70.3 66.9 (5%) NSW & SEQ 13.9 11.2 13.4 11.6
Slide 40: Enterprise Agreements
1HFY2023 RESULTS ADDITIONAL INFORMATION Enterprise Agreements For personal use only # Staff Headline Increases Term Enterprise Agreement Covered Expiry Date Status (years) Year 1 Year 2 Year 3 Year 4 (approx.) SA/NT Bulk Maintenance1 70 3 4 Feb 2023 4.0% 4.0% 2.0% Bargaining QLD Infrastructure 550 4
Slide 41: Underlying EBITDA by business unit
1HFY2023 RESULTS ADDITIONAL INFORMATION Underlying EBITDA1 by business unit ($m) For personal use only 1HFY2023 1HFY2022 Variance 2HFY2022 Coal 230 286 (20%) 255 Bulk 100 75 33% 56 Network 363 380 (4%) 421 Other (20) (14) (43%) 9 EBITDA 673 727 (7%) 741 40 1. Continuing operations
Slide 42: Underlying group EBITDA bridge
1HFY2023 RESULTS ADDITIONAL INFORMATION Underlying group EBITDA bridge1 ($m) For personal use only 727 56 17 25 6 673 1HFY2022 Coal Bulk Network Other 1HFY2023 1. Continuing operations 41 Note: Due to rounding, the sum of components may not equal the corresponding total
Slide 43: Balance sheet summary
1HFY2023 RESULTS ADDITIONAL INFORMATION Balance sheet summary ($m) For personal use only 31 December 2022 30 June 2022 31 December 2021 Assets classified as held for sale 962 - - Other current assets 923 860 675 Total current assets 1,885 860 675 Property, plant and equipment (PP&E) 9,910 8,416 8,46
Slide 44: Debt Maturity Profile
1HFY2023 RESULTS ADDITIONAL INFORMATION Debt Maturity Profile As at 31 January 20231 ($m) For personal use only 365 110 650 465 205 50 450 400 50 778 711 500 425 195 50 100 70 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY35 Operations: Undrawn Bank Debt Operations: Drawn Bank Debt Operat
Slide 45: Reconciliation of borrowings
1HFY2023 RESULTS ADDITIONAL INFORMATION Reconciliation of borrowings For personal use only $m Commentary Total debt including working capital facility 5,577 Borrowings on a cash basis Reconciliation to Financial Statements Add/(less): Borrowings acquired in connection with the Tarcoola-to-Darwin Con
Slide 46: Group and business unit capital expenditure
1HFY2023 RESULTS ADDITIONAL INFORMATION Group and business unit capital expenditure ($m) For personal use only 403 272 164 175 45 131 57 130 56 7 1 1HFY20231,2 Network1,2 Coal1 Bulk Corporate Non-Growth Growth Note: Due to rounding, the sum of components may not equal the corresponding total 1. Incl
Slide 47: Dividend history
1HFY2023 RESULTS ADDITIONAL INFORMATION Dividend history For personal use only 35.0c 100% 90% 30.0c 28.8 27.1 27.4 80% 25.0c 24.6 24.0 23.8 70% Amount (Cents) Per Share 22.5 21.4 14.4 60% Payout Ratio1 20.0c 13.1 13.7 13.3 8.9 12.4 50% 16.5 13.9 10.9 15.0c 40% 12.3 8.5 10.0c 30% 8.3 8.2 13.6 14.0 13
Slide 48: Legal matters
1HFY2023 RESULTS ADDITIONAL INFORMATION Legal matters For personal use only WIGGINS ISLAND RAIL PROJECT (WIRP) › Earlier Court of Appeal decision confirmed that ongoing WIRP fees are payable until August 2035, and WIRP fees have been billed to WIRP Customers accordingly › 18 December 2020: Aurizon
Slide 49: Additional Information: Coal
For personal use only Additional Information: Coal Photo: Coal Train, South-East Queensland
Slide 50: Coal
1HFY2023 RESULTS ADDITIONAL INFORMATION Coal For personal use only $m 1HFY2023 1HFY2022 Variance 2HFY2022 Above rail1 582 610 (5%) 585 Track access1 175 184 (5%) 176 Other 4 2 100% 3 Total Revenue 761 796 (4%) 764 Access costs (185) (192) 4% (184) Operating costs (346) (318) (9%) (325) EBITDA 230 28
Slide 51: Coal Operations
1HFY2023 RESULTS ADDITIONAL INFORMATION Coal Operations For personal use only Note: Includes all mines in the CQCN 50
Slide 52: Coal Operations
1HFY2023 RESULTS ADDITIONAL INFORMATION Coal Operations For personal use only SOUTH EAST QUEENSLAND / NEW SOUTH WALES 51
Slide 53: Coal haulage tonnes (mt) by system
1HFY2023 RESULTS ADDITIONAL INFORMATION Coal haulage tonnes (mt) by system For personal use only 1HFY2023 1HFY2022 Variance 2HFY2022 CQCN Newlands 8.0 9.3 (14%) 8.5 Goonyella 29.7 29.4 1% 32.1 Blackwater 22.5 24.8 (9%) 24.7 Moura 6.7 6.8 (1%) 5.5 Total CQCN 66.9 70.3 (5%) 70.8 NSW & SEQ West Moreton
Slide 54: Coal contract portfolio
1HFY2023 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 2022 AS AT 31 DECEMBER 2022 75 19% 0-3 years 37% 3-7 years 60 7+ years Million tonnes per annum (Mtpa) 45 43% 30 FORECA
Slide 55: Additional Information: Bulk
For personal use only Additional Information: Bulk Photo: Sulphur train on the Mount Isa line just outside Cloncurry QLD, Leon Harris – Trainee Locomotive Driver APS (QLD)
Slide 56: Bulk
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk For personal use only $m 1HFY2023 1HFY2022 Variance 2HFY2022 Revenue 521 344 51% 347 Access costs (52) (42) (24%) (39) Operating costs (369) (228) (62%) (253) EBITDA 100 75 33% 56 Depreciation & Amortisation (53) (17) (212%) (20) EBIT 47 58 (19%) 36 Above
Slide 57: Bulk operations
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk operations For personal use only 56
Slide 58: Bulk operations: Queensland
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk operations: Queensland For personal use only 57
Slide 59: Bulk operations: New South Wales
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk operations: New South Wales For personal use only 58
Slide 60: Bulk operations: South Australia and Northern Territory
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk operations: South Australia and Northern Territory For personal use only 59
Slide 61: Bulk operations: Western Australia
1HFY2023 RESULTS ADDITIONAL INFORMATION Bulk operations: Western Australia For personal use only 60
Slide 62: Additional Information: Network
Additional Information: Network For personal use only Photo: Aurizon track maintenance work on the CQCN – Aldoga, Gladstone (QLD)
Slide 63: Network financial and operating metrics
1HFY2023 RESULTS ADDITIONAL INFORMATION Network financial and operating metrics For personal use only $m 1HFY2023 1HFY2022 Variance 2HFY2022 Track Access 583 543 7% 591 Services & Other 31 26 19% 33 Revenue 614 569 8% 624 Energy & Fuel (110) (51) (116%) (53) Other Operating Costs (141) (136) (4%) (1
Slide 64: Network Operations
1HFY2023 RESULTS ADDITIONAL INFORMATION Network Operations For personal use only 63
Slide 65: Network volumes: All rail operators
1HFY2023 RESULTS ADDITIONAL INFORMATION Network volumes: All rail operators For personal use only 1HFY2023 1HFY2022 Variance 2HFY2022 Newlands 9.8 6.6 49% 7.3 Goonyella 53.1 53.5 (1%) 52.1 Blackwater 26.0 29.6 (12%) 28.7 Moura 6.5 6.7 (2%) 5.3 GAPE 7.4 8.6 (13%) 8.2 Total (mt) 102.9 104.9 (2%) 101.7
Slide 66: Network 1HFY2023 Access Revenue movement
1HFY2023 RESULTS ADDITIONAL INFORMATION Network 1HFY2023 Access Revenue movement For personal use only $m Increase in MAR from 1HFY2022 to 1HFY2023 19.3 Volume under-recovery for 1HFY2023 (51.7) Volume under-recovery for 1HFY2022 (reversal of impact) 28.4 Revenue Cap movements 1HFY2022 to 1HFY2023 (
Slide 67: Network adjusted MAR bridge FY22 to FY24
1HFY2023 RESULTS ADDITIONAL INFORMATION Network adjusted MAR bridge FY22 to FY24 For personal use only INDICATIVE NETWORK ADJUSTED MAXIMUM ALLOWABLE REVENUE (MAR)1 FY2022 – FY20242 ($M) 1,062 25 1 68 967 39 5 10 1 1 27 896 FY22 Actual AT1-5 FY19 / FY20 Rev Cap FY20 MAR Change Rev Cap FY21 FY21 Capit
Slide 68: Network Revenue Adjustment Amounts (revenue cap)
1HFY2023 RESULTS ADDITIONAL INFORMATION Network Revenue Adjustment Amounts (revenue cap) For personal use only › Revenue adjustment amounts (RAA) are the Total Total difference by system between Aurizon’s Total AT2-4 AT5 Financial Year (inc-GAPE) (ex-GAPE) Actual AT2-5 Revenue and Allowable AT2-5 $m
Slide 69: Reconciliation of billed MAR to reported access revenue
1HFY2023 RESULTS ADDITIONAL INFORMATION Reconciliation of billed MAR to reported access revenue For personal use only 1HFY2023 FY2022 FY2021 $m Actual Actual Actual Billed Access Revenue (AT1 to AT5) (ex. GAPE) 433 891 911 Approved Adjustments to MAR Revenue Cap (ex. GAPE and inclusive of capitalise
Slide 70: UT5 WACC Reset Timeline
1HFY2023 RESULTS ADDITIONAL INFORMATION UT5 WACC Reset Timeline Preliminary Reset WACC to inform FY2024 Tariffs with a Revenue Cap True up in FY2026 to For personal use only reflect market based parameters in June 2023 UT5 WACC RESET PROCESS 12 November 2021 1 July 2023 30 June 2027 1 July 2024 1 Ju
Slide 71: WACC History
1HFY2023 RESULTS ADDITIONAL INFORMATION WACC History For personal use only 9.96% 8.68% 8.43% 8.18% 7.17% 6.30% 5.70% 5.90% UT1 UT2 UT3 UT4 UT5 UT5 UT5 UT5: Preliminary 2017-2019 2019-2021 2021-2023 WACC FY20241 70 1. Preliminary WACC Reset submitted to QCA (July 2022), based on market parameters in
Slide 72: UT5 Undertaking: Revenue Protection Mechanisms
1HFY2023 RESULTS ADDITIONAL INFORMATION UT5 Undertaking Revenue Protection Mechanisms For personal use only The Maximum Allowable Revenue (MAR) is the total revenue Aurizon INDICATIVE SYSTEM REVENUE PROTECTION MECHANISM Network is permitted to earn each year, determined in accordance with the Regula
Slide 73: UT5 Undertaking: Regulatory Asset Base (RAB)
1HFY2023 RESULTS ADDITIONAL INFORMATION UT5 Undertaking Regulatory 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,
Slide 74: UT5 Undertaking: Building Blocks
1HFY2023 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 12 November 2021 (Report Date)1 › 6.30% from Report Date1 to 30 June 2023 › WACC reset at 1 J
Slide 75: UT5 Undertaking: Rebate Mechanism
1HFY2023 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 76: Glossary
1HFY2023 RESULTS ADDITIONAL INFORMATION Glossary For personal use only Metric Description AFD Access Facilitation Deed Average haul length NTK/Total tonnes Contract utilisation Total volumes hauled as a percentage of total volumes contracted CQCN Central Queensland Coal Network ESG Environment, Soci
Slide 77: Investor Relations contact
James Coe Head of Investor Relations & Market Intelligence +61 7 3019 7526 For personal use only James.Coe@aurizon.com.au ASX: AZJ 76