Aurizon Holdings Ltd. · ASX:AZJ
Aurizon — 1HFY2025 Earnings Presentation
47 slides from Aurizon's earnings presentation, Feb 17, 2025
Slide 1: Half Year Results Presentation
Aurizon Holdings Limited ABN 14 146 335 622 ASX Market Announcements ASX Limited 20 Bridge Street For personal use only Sydney NSW 2000 BY ELECTRONIC LODGEMENT 17 February 2025 Half Year Results Presentation Please find attached for immediate release to the market, the Half Year Results presentation
Slide 2: For personal use only
For personal use only Photo: First railing of Northern Iron's magnetite over the Elizabeth River in Northern Territory (Bulk Central). Photo taken by Aurizon locomotive driver Darryn Fladrich
Slide 3: No Reliance on This Document / Statements About the Future
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 “expect”, “anticipate”, “likely”
Slide 4: Aurizon business overview: Network, Coal, Bulk, Containerised Freight
For personal use only Network Coal Bulk Containerised Freight 2,670km of rail infrastructure, servicing Largest fleet in Australia, servicing all East- 2,200km Tarcoola-to-Darwin National capacity of premium coking coal basin Coast coal terminals rail line ~350k TEUs per annum Regulated Return1, acr
Slide 5: Safety performance: TRIFR, LTIFR and SIFR
For personal use only Total Recordable Injury Frequency Rate (TRIFR)1 and Lost Time Injury Frequency Actual and Potential Serious Injury and Fatality Frequency Rate (SIFRa+p) 2 Rate (LTIFR) Incidents per million hours worked Incidents per million hours worked 8.65 +9% 8.03 7.36 -29% 2.28 1.63 1.15 3
Slide 6: Introduction & Overview
| AURIZON zt =i) — r ‘hy - | — c i ——1— } i“ Introduction & Overview “Andrew Harding Managing Director & CEO Fig ee De £3 AuRIZON.
Slide 7: 1HFY2025 results highlights
For personal use only Underlying EBITDA Statutory NPAT ROIC $814m $233m 8.4% down 4% down 2% down 0.6ppts Statutory EBITDA flat Underlying NPAT down 14% Free Cash Flow2 Interim Dividend3 Capital Management4 $237m 9.2cps NOW UP TO $300m down 7% down 5% including a (further) $50m extension to on-marke
Slide 8: Network: volumes by system
For personal use only › Volumes 3% higher (+3.7mt) compared to the prior year Network Volumes (By System, All Rail Operators) Total (million tonnes) and change compared to 1HFY2024 › FY2025 regulatory volume assumption is 216.7mt (+3% compared with FY2024 volumes railed) Newlands 10mt +0.6mt › Indus
Slide 9: Coal haulage by corridor
For personal use only › Volumes 6% higher compared to the prior year with growth across all Coal Haulage (By Corridor/Region) corridors/regions (excluding Newlands) Total (million tonnes) and change compared to 1HFY2024 › Revenue supported by volume growth in addition to contract rate Newlands 6mt -
Slide 10: Bulk haulage by geography
For personal use only › Railings for Bulk Central iron ore customer Northern Iron commenced Bulk Haulage (By Geography): in late October Total (million tonnes) and change compared to 1HFY2024 › Stronger grain volume expected in second half with CBH Group receiving 20.3 million tonnes from the Wester
Slide 11: National Interstate containerised freight network and land-bridging
For personal use only National Interstate: Containerised Freight Network › First complete period with full schedule1 in operation › Utilisation of >60% of available capacity in 1HFY2025 Darwin › Volumes continue to build through both the (contracted) foundation customer and additional (spot volume)
Slide 12: CFO & Group Executive Strategy
George Lippiatt CFO & Group Executive Strategy LBP aurizon.
Slide 13: Group financial results
For personal use only $m 1HFY2025 1HFY2024 Variance (%) Variance 2HFY2024 › Revenue growth from Coal driven by higher volumes and Other (Containerised Freight and partial contribution of a Revenue (and other income) 2,023 1,972 3% 51 1,872 portion of the proceeds from the settlement of legal matters
Slide 14: Network EBITDA major drivers
For personal use only EBITDA1: Major drivers ($M) net of fuel and energy/electric charges (revenue and cost) Tonnes Total Revenue 110.2m $736m 12 26 495 7 +3% (3%) 2 486 Net impact +$14m Operating Costs EBITDA 1HFY2024 Access Revenue Operating Costs External Other 1HFY2025 ($241m) $495m Construction
Slide 15: Coal EBITDA major drivers
For personal use only EBITDA: Major drivers ($M) net of fuel and access (revenue and cost) Tonnes hauled Revenue1 Contract Rate Indexation 99.2m $668m 16 & Operating Costs3 +6% +3% 283 26 17 23 3 264 Operating costs2 EBITDA Net impact -$6m ($404m) $264m 1HFY2024 Additional Customer Mix Contract Rate
Slide 16: Bulk EBITDA major drivers
For personal use only EBITDA: Major drivers ($M) Rail Tonnes Hauled Total Revenue net of fuel and access (revenue and cost) 27.5m $560m 112 6 Iron Ore 5 (19%) flat 12 11 6 84 Operating Costs EBITDA ($476m) $84m 1HFY2024 Iron Ore3 Derailment Grain Provisions Other 1HFY2025 (6%) (25%) (Mid-West WA) ›
Slide 17: Capital allocation and capital expenditure
For personal use only Capital allocation Capital expenditure1 Growth capital, dividends and buy-backs -14% 100% 100% 100% $400m $92m $343m $44m Non-Growth Capex2 Shareholder returns FY16-FY21 FY22-FY24 1HFY25 1HFY2024 1HFY2025 Non-Growth Capex2 Growth Capital (including M&A) Buy-Backs Cash Dividends
Slide 18: Group funding structure and debt maturity profile
For personal use only Group Funding Structure Debt Maturity Profile8 ($m) › ~75% of Group debt held in Network GROUP DEBT METRICS 1HFY2025 FY2024 includes undrawn amounts › Increase in net debt/EBITDA1 ratios to 4.1x for Network (FY2024: 3.9x) and 1.9x for Operations (FY2024: 1.8x) at December 2024
Slide 19: Outlook
~ Outloc Andrew-Hardir Managing Di
Slide 20: Strategic pillars: Coal and Network, Bulk growth, containerised freight
For personal use only Drive Bulk growth Establish nationally significant containerised Resilient Coal and Network businesses across national footprint freight supply chain Coal plus Network EBITDA ($m) Bulk EBITDA ($m) TEUs3 (‘000) $1,458 159 $1,415 $1,382 $1,331 $1,342 $1,268 $229 $214 97 $140 $135
Slide 21: Actions in progress
For personal use only Actions in progress Economic conditions and customer demand › Bulk freight reviews have been completed in East and West which have identified cost and fleet optimisation opportunities that are currently being implemented › Non-operational cost base is currently being assessed,
Slide 22: FY2025 guidance and key assumptions
For personal use only FY2025: Group underlying EBITDA and sustaining/growth capex ranges all maintained, although each is expected to be at the lower end of their respective range › Group underlying EBITDA range $1,660m - $1,740m › Sustaining capex range $640m - $720m (including ~$80m of transformat
Slide 23: For personal use only
For personal use only
Slide 24: For personal use only
For personal use only
Slide 25: About Aurizon
For personal use only IHFY2025 RESULTS ADDITIONAL INFORMATION > purizon. About Aurizon Aurizon is Australia’s largest rail freight operator. Our operational footprint soans across mainland Australia, with over 5,000km of track infrastructure and the largest fleet of locomotives and wagons - ‘Aurizon
Slide 26: Strategy and aspirations
For personal use only Resilient Coal and Drive Bulk growth Establish nationally significant Network businesses across national footprint containerised freight supply chain Our aspiration to achieve Our aspiration to achieve Highly disciplined businesses, supporting Aurizon's 25-30% >500k TEU diversi
Slide 27: Capital allocation hierarchy
For personal use only Capital Allocation Hierarchy Capital Management › Opportunities if there is surplus capital Determine Available Capital Non-Growth Capital Dividends › Ongoing operating cash flows › Sustaining and transformation › Within 70-100% payout ratio → › Additional funding capacity proj
Slide 28: Steel, coal and electricity market trends
For personal use only GLOBAL CRUDE STEEL PRODUCTION | BLAST FURNACE-BASIC OXYGEN FURNACE ASIA: THERMAL (STEAM) COAL IMPORT VOLUME | SHARE OF GLOBAL THERMAL SHARE1 (STEAM) COAL IMPORT MARKET2 88% 2.0bt 1,200mt 90% +3% 1,000mt 80% 1.5bt 800mt 70% 1.0bt 600mt 60% 74% 73% 71% 400mt 50% 0.5bt 69% 65% 200
Slide 29: Base metals, mining capex, grain exports and crop production
For personal use only AUSTRALIA: BASE METALS EXPLORATION EXPENDITURE1 GRAIN EXPORT VOLUME: CY20243 Financial year By State (million tonnes), change compared to CY2023 A$1.2b A$0.9b A$0.6b 7.8 14.7 A$0.3b 5.6 5.2 2.9 A$0.0b FY20 FY21 FY22 FY23 FY24 WA Vic. SA NSW Qld. AUSTRALIA: METAL ORE MINING CAPI
Slide 30: Volumes by quarter
For personal use only Quarter Ending Financial Year to date Mar-24 Jun-24 Sep-24 Dec-24 1HFY2024 1HFY2025 Variance Coal CQCN mt 31.8 34.3 34.0 35.8 66.3 69.8 5% NSW & SEQ mt 14.2 14.6 14.7 14.7 27.7 29.4 6% Coal Total Volumes mt 46.0 49.0 48.6 50.5 94.0 99.2 6% CQCN NTKs bn 7.8 8.5 8.5 9.0 16.8 17.4
Slide 31: Enterprise agreements
For personal use only # Staff Headline Increases Term Enterprise Agreement Covered Expiry Date Status (years) Year 1 Year 2 Year 3 Year 4 (approx.) SA Stevedoring Port Pirie1 60 - 30 Sep 2024 Bargaining SA Stevedoring Port Adelaide1 50 - 30 Sep 2024 Bargaining WA Bulk Rollingstock Maintenance 90 4 1
Slide 32: EBITDA by segment
For personal use only 1HFY2025 1HFY2024 Variance 2HFY2024 Coal 264 283 (19) 245 Bulk 84 112 (28) 117 Network 495 486 9 444 Other (29) (34) 5 (29) EBITDA 814 847 (33) 777 31 1. Continuing operations
Slide 33: EBITDA bridge 1HFY2024 to 1HFY2025
For personal use only 9 847 19 28 814 5 1HFY2024 Network Coal Bulk Other 1HFY2025 1. Continuing operations 32 Note: Due to rounding, the sum of components may not equal the corresponding total
Slide 34: Summary balance sheet
For personal use only 31 December 2024 30 June 2024 31 December 2023 Current assets 910 991 1,221 Property, plant and equipment (PP&E) 10,187 10,153 10,072 Other non-current assets 490 452 419 Total Assets 11,587 11,596 11,712 Total borrowings (5,131) (4,897) (5,165) Other current liabilities (715)
Slide 35: Debt maturity profile by entity
For personal use only 1,140 AURIZON NETWORK ($m) 450 778 550 50 425 372 368 690 310 50 264 242 115 500 80 300 50 240 120 145 184 122 82 68 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 AURIZON OPERATIONS ($m) 700 200 465 315 225 500 196 153 103 150 50 FY25 FY26 FY27 FY28 FY29 FY30 FY31
Slide 36: Capital expenditure by segment
For personal use only Bulk & Network Coal Corporate Total Containerised Freight Non-Growth2 199 46 47 7 299 Growth - 5 39 - 44 Total 199 51 86 7 343 1. Includes capitalised interest and capital accruals. Excludes any M&A activity and any Network externally funded projects 2. Non-Growth capital expen
Slide 37: Debt reconciliation to financial statements
For personal use only $m Commentary Total debt including working capital facility 5,219 Borrowings on a cash basis Reconciliation to Financial Statements Add/(less): Borrowings acquired in connection with the Tarcoola-to-Darwin Concession Deed for face value of $50m Corporation Loan 6 issued at belo
Slide 38: Coal financial results
For personal use only $m 1HFY2025 1HFY2024 Variance 2HFY2024 Above rail 659 642 3% 624 Track access 245 237 3% 223 Other 9 8 13% 9 Total Revenue 913 887 3% 856 Access costs (250) (243) (3%) (231) Operating costs (399) (361) (11%) (380) EBITDA 264 283 (7%) 245 Depreciation & Amortisation (103) (104)
Slide 39: Coal volumes by system
For personal use only 1HFY2025 1HFY2024 Variance 2HFY2024 Central Queensland Coal Network (CQCN) Newlands 6.5 6.7 (2%) 6.5 Goonyella 31.1 28.0 11% 30.2 Blackwater 24.2 24.0 1% 22.8 Moura 8.0 7.7 5% 6.6 Total CQCN 69.8 66.3 5% 66.2 New South Wales and South-East Queensland (NSW & SEQ) West Moreton 2.
Slide 40: Coal contract volume expiry
For personal use only AURIZON COAL CONTRACT VOLUME EXPIRY BY YEAR1 COAL CONTRACT PORTFOLIO EXPIRY1 AS AT 31 DECEMBER 2024 AS AT 31 DECEMBER 2024 75 6% 27% 0-3 years 3-7 years 60 7+ years Million tonnes per annum (Mtpa) 45 67% COAL CONTRACTED VOLUMES (MT) 30 228 234 ~230 60 66 15 168 169 0 FY25 FY26
Slide 41: Bulk financial results
For personal use only $m 1HFY2025 1HFY2024 Variance 2HFY2024 Revenue and other income 560 559 - 537 Access costs (62) (61) (1%) (56) Operating costs (excluding Access Costs) (414) (386) (7%) (364) EBITDA 84 112 (25%) 117 Depreciation & Amortisation (64) (60) (7%) (68) EBIT 20 52 (62%) 49 Above Rail
Slide 42: Network financial results
For personal use only $m 1HFY2025 1HFY2024 Variance 2HFY2024 Track Access 708 694 2% 646 Services & Other 28 64 (56%) 31 Revenue 736 758 (3%) 677 Energy & Fuel (69) (84) 18% (76) Other Operating Costs (172) (188) 9% (157) EBITDA 495 486 2% 444 Depreciation & Amortisation (182) (174) (5%) (179) EBIT
Slide 43: Network volumes by system
For personal use only 1HFY2025 1HFY2024 Variance 2HFY2024 Goonyella 54.5 51.9 5% 52.2 Blackwater 28.4 28.4 - 26.3 Moura 8.2 8.2 - 6.7 Newlands 10.3 9.7 6% 9.9 GAPE 8.8 8.3 6% 8.1 Total (mt) 110.2 106.5 3% 103.1 42 Note: Due to rounding, the sum of components may not equal the corresponding total
Slide 44: Network revenue breakdown
For personal use only 1HFY2025 1HFY2024 $m Change Actual Actual Allowable Revenue excluding GAPE and Revenue Cap 572 529 42 Revenue Cap excluding GAPE 19 15 4 Volume-Related Over/Under Recovery excluding GAPE (1) 27 (28) Actual Allowable Revenue excluding GAPE 589 571 18 GAPE Regulatory and Non-Regu
Slide 45: Indicative Network Maximum Allowable Revenue FY2024-FY2027
For personal use only INDICATIVE NETWORK ADJUSTED MAXIMUM ALLOWABLE REVENUE (MAR)1 FY2024 – FY2027 ($M) 1,224 +$26m Adjustments 1,207 40 +$68m 24 Adjustments 13 1,181 45 38 5 76 24 Over- Adjustments collection 1,113 19 15 38 29 1,095 FY24 Actual Cap Rec Rev Cap FY22 Rev Cap FY23 MAR Change Rebates F
Slide 46: Revenue adjustment amounts
For personal use only AT2-4 AT5 Total Total › Revenue adjustment amounts (RAA) are the difference by system Financial Year (inc-GAPE) (ex-GAPE) between Aurizon’s Total Actual AT2-5 Revenue and Allowable AT2-5 $m $m $m $m Revenue › The RAA amounts are collected or repaid through a tariff adjustment 2
Slide 47: For personal use only
Jason Di Pietro Manager Investor Relations — +617 3019 1135 é Jason.DiPietro@aurizon.co! ASX: AZJ