Transurban Group Ltd. · ASX:TCL
Transurban — FY2007 Earnings Presentation
33 slides from Transurban's earnings presentation, Aug 30, 2007
Slide 1: Consistent value creation – Asia Roadshow FY07 Results
Consistent value creation Asia Roadshow – FY07 Results 29 & 30 August 2007 17.02.06 Slide 1
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 Trust
Slide 3: Consistent value creation
Consistent value creation • Group market cap ~A$7.5 billion (1) • FY08 forecast yield ~8.1% (2) • Conservative gearing policy 1. Based on $7.00 security price Slide 3 2. Based on $7.00 security price
Slide 4: Our first 10 years
Our first 10 years • Ownership and management of the “jewels” of Australian toll roads – CityLink, Westlink M7, Hills M2, M1, M5, M4 • Innovation – tolling solutions, customer service, financial structures • Delivery – complex projects, robust contracts, accurate traffic forecasts, growing patronage
Slide 5: Group strategy
Group strategy • Owner operator – Long life ownership of strategic assets • Strategic geographic focus – Australia and North America • Common law and language • No entrenched players • Low sovereign risk • Strategic partnerships Slide 5
Slide 6: Group strategy – competitive advantage
Group strategy – competitive advantage • Independent / internally managed • Unique skill base – Traffic – Project management – Financial structuring • Technology – Tolling systems • Customer service and management • Concession management – Government relations – Community consultation Slide 6
Slide 7: Financials
transurban Financials Slide 7
Slide 8: Group EBITDA
Group EBITDA 30 June 07 30 June 06 $M $M EBITDA (1) 394.6 286.1 Cash Contribution (2) 244.2 223.4 1. Excluding interest income attributable to cash collateralising Infrastructure Borrowings 2. Cash Contribution is calculated by adjusting Net Loss to exclude: depreciation and amortisation; expenses i
Slide 9: Group result
Group result 30 June 2007 30 June 2006 $M $M Revenue 573.2 459.8 Less Operational costs 142.7 138.4 Corporate costs 35.9 35.3 Finance Costs 191.2 137.0 Depreciation 302.6 258.1 Net Loss from Operations 99.2 109.0 Share of equity accounted losses (WM7, M5) 32.3 8.6 Tax expense/ (Benefit) 19.7 (56.7)
Slide 10: Capital Management
transurban Capital Management
Slide 11: Group debt at 30 June 2007
Group debt at 30 June 2007 $M Hedged Corporate 2661 89%(1) Non Recourse – consolidated 1598 77% – non consolidated 844 75% 5103 88% (1) Senior debt rating / Corporate rating A - / BBB + Weighted average maturity 7.61 yrs Weighted Average Cost of Debt (including fees) 6.57% Gearing (debt to enterpris
Slide 12: Capital management
Capital management • A- rating on senior debt maintained • Current capital position balances with pipeline needs • DRP changes enable flexibility • Forecast distribution of 57 cents in FY08 Slide 12
Slide 13: Australian asset update
Australian asset update Slide 13
Slide 14: CityLink
CityLink FY07 • Traffic 3.1%* • Revenue 8.8% News • Tulla–Calder interchange traffic forecast achieved • Construction underway on Monash – CityLink – Westgate upgrade *Normalised for the the Burnley Tunnel incident traffic growth was 3.4% in FY07 Slide 14
Slide 15: Monash–CityLink–Westgate upgrade
Monash–CityLink–Westgate upgrade • 7% traffic uplift across CityLink • 10% traffic uplift on Southern Link • Construction start August 2007 • Completion September 2010 • CityLink revenue protected during construction Slide 15
Slide 16: Hills M2
Hills M2 FY07 • Traffic 7.5% • Revenue 16.9% News • Stage 1 widening implemented • Lane Cove Tunnel customer service mobilised *Insert caption if applicable Slide 16
Slide 17: Westlink M7
Westlink M7 June Quarter 2007 • Traffic 16.8% • Revenue 20.7% News • Cumulative cash flow ahead of forecast • Growth profile longer than forecast Slide 17
Slide 18: Sydney Roads Group
transurban Sydney Roads Group
Slide 19: Sydney Roads Group Progress
Sydney Roads Group Progress • Delisted company • $5.4m p.a. synergies achieved • $3.7m p.a. identified in FY08 • Further synergies targeted – subject to partner/State approvals Slide 19
Slide 20: Sydney Orbital Network
Sydney Orbital Network Slide 20
Slide 21: 2006 Sydney Network congestion (AM Peak)
2006 Sydney Network congestion (AM Peak) Slide 21
Slide 22: 2021 Sydney Network congestion (AM Peak)
2021 Sydney Network congestion (AM Peak) Slide 22
Slide 23: Sydney network opportunities
Sydney network opportunities Asset enhancements − M2 widening − M5 widening Operational enhancements − Contract consolidation Tolling enhancements − Full electronic tolling − Sydney casual user pass − Centralised enforcement Greenfield − M4 East − F3 / M2 Slide 23
Slide 24: North America
North America 17.02.06 Slide 24
Slide 25: Consolidating in Virginia
Consolidating in Virginia • Pocahontas acquired 29 June 2006 • Exclusive negotiation on Capital Beltway HOT Lanes – financial close end 2007 • Exclusive negotiation on I-95 / 395 HOT Lanes Slide 25
Slide 26: Pocahontas
Pocahontas FY07 • Traffic 3.1% • Revenue 8.7% News • TIFIA funding for Richmond Airport Connector • New developments announced for corridor Slide 26
Slide 27: Virginia HOT Lanes – Capital Beltway
Virginia HOT Lanes – Capital Beltway • Environmental clearance achieved • Commercial negotiations with VDoT close to being finalised – most major issues agreed • Ratings agency and concessional debt application processes (Private Activity Bonds and TIFIA) underway • Project documentation and final r
Slide 28: Virginia HOT Lanes – I95 / 395
Virginia HOT Lanes – I95 / 395 • Exclusive agreement with VDoT • Project split into two stages • Independent environmental approval processes progressing Slide 28
Slide 29: DRIVe
DRIVe • Capital Partners Global pooled fund commits US$715m • Transurban committed to minimum 30% long term holding • 20% held for long term US investors • Pocahontas equity valued at US$236m • Capital Beltway and I95 will be offered to DRIVe Slide 29 Full details in TCL ASX release – 22 August 2007
Slide 30: The Group is financially well positioned
• The Group is financially well positioned • Australian business is performing well • North American business is gaining momentum Slide 30
Slide 31: Slide 31
17.02.06 Slide 31
Slide 32: Financials
Financials CityLink Hills M2 SRG Pocahontas $M $M $M $M Revenue Tolling & fees 331.5 108.0 21.3 16.4 Other 10.4 13.7 7.0 20.5 Total 341.9 121.7 28.3 36.9 Operating costs Operational 68.6 17.2 10.2 4.8 Corporate 14.5 5.3 1.9 1.0 Total 83.1 22.5 12.1 5.8 EBITDA 258.8 99.2 16.2 31.1 EBITDA Margin 75.7%
Slide 33: Financials
Financials NSW Business Corporate Transurban Group Operations Development $M $M $M $M Revenue Tolling 15.9 493.1 Other 4.3 24.2 80.1 Total 20.2 24.2 573.2 Operating costs Operational 18.2 23.7 142.7 Corporate 1.4 11.8 35.9 Total 19.6 23.7 11.8 178.6 EBITDA 0.6 0.5 (11.8) 394.6 Slide 33