Transurban Group Ltd. · ASX:TCL

Transurban — Investor Day (May 2016)

82 slides from Transurban's investor day presentation, May 3, 2016

  1. Slide 1: Transurban 2016 Investor Day: Positioning for the Future

    3 MAY 2016 TRANSURBAN 2016 INVESTOR DAY POSITIONING FOR THE FUTURE

  2. Slide 2: Agenda: Positioning for the Future

    AGENDA: POSITIONING FOR THE FUTURE OVERVIEW AND STRATEGY WORKING WITH GOVERNMENT PARTNERS 1 Scott Charlton 7 Tony Adams FUTURE ENVIRONMENT GREATER WASHINGTON AREA 2 Michele Huey 8 Jennifer Aument INVESTING IN OUR TECHNOLOGY CAPABILITY SYDNEY 3 Lisa Tobin and David Hanus 9 Andrew Head MORNING TEA MEL

  3. Slide 3: Overview and Strategy

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE OVERVIEW AND STRATEGY SCOTT CHARLTON

  4. Slide 4: Strategy Statement

    STRATEGY STATEMENT To be the partner of choice with governments providing effective and innovative urban road infrastructure utilising core capabilities 2016 INVESTOR DAY | 3 MAY 2016 4

  5. Slide 5: Transurban Strategy

    TRANSURBAN STRATEGY WHO WHAT HOW Governments with:  Provide effective and innovative  Long-term owner/operator  Location on eastern seaboard urban road infrastructure  Leveraging existing networks of Australia and North America  Offer customers value through  Demonstrating value to the  Signi

  6. Slide 6: Near-Term Focus

    NEAR-TERM FOCUS  Delivery and execution of $11 billion project pipeline, Transurban’s share $8 billion  Operations and technology Managed Operations & Customer Community & motorways Maintenance stakeholder model (O&M) engagement 2016 INVESTOR DAY | 3 MAY 2016 6

  7. Slide 7: Next Generation Development Opportunities: Sydney

    MEDIUM TO LONG-TERM FOCUS NEXT GENERATION DEVELOPMENT OPPORTUNITIES Sydney 2016 INVESTOR DAY | 3 MAY 2016 7

  8. Slide 8: Next Generation Development Opportunities: Melbourne

    MEDIUM TO LONG-TERM FOCUS NEXT GENERATION DEVELOPMENT OPPORTUNITIES Melbourne 2016 INVESTOR DAY | 3 MAY 2016 8

  9. Slide 9: Next Generation Development Opportunities: Brisbane

    MEDIUM TO LONG-TERM FOCUS NEXT GENERATION DEVELOPMENT OPPORTUNITIES Brisbane 2016 INVESTOR DAY | 3 MAY 2016 9

  10. Slide 10: Next Generation Development Opportunities: Greater Washington Area

    MEDIUM TO LONG-TERM FOCUS NEXT GENERATION DEVELOPMENT OPPORTUNITIES Greater Washington Area 2016 INVESTOR DAY | 3 MAY 2016 10

  11. Slide 11: Recent Changes to Policy Environment

    MEDIUM TO LONG-TERM FOCUS RECENT CHANGES TO POLICY ENVIRONMENT HEADLINES Malcolm Turnbull urged to charge motorists for using roads The Australian | Feb 2016 Driven mad in traffic? We need user pays roads Sydney Morning Herald | Feb 2016 Scott Morrison urged to hold road user pricing inquiry as cars

  12. Slide 12: Policy Environment Considerations

    MEDIUM TO LONG-TERM FOCUS POLICY ENVIRONMENT CONSIDERATIONS  Inequity of current road funding model – Fuel efficient and electric cars contribute less in fuel excise – Car registration annual fee not based on usage  Reform inevitable – Transurban preparing for change ROAD USAGE STUDY TIMELINE (OCT

  13. Slide 13: Preparing for Technology Advances

    LONG-TERM FOCUS PREPARING FOR TECHNOLOGY ADVANCES Technology advances impacting capacity:  Connected and autonomous vehicles (CAVs)  Vehicle platooning  Designated lanes Potential for 10-25% increase Vehicle platooning in motorway capacity by 2030s Dedicated lanes for CAVs Safety benefits from re

  14. Slide 14: The Future Demographic Environment

    LONG-TERM FOCUS THE FUTURE DEMOGRAPHIC ENVIRONMENT POPULATION CAR TRIPS  Customer behavioural changes (MILLIONS) (MILLIONS PER WEEK DAY) impacting demand MELBOURNE 4.1 8.3 – Changes in travel patterns 6.7 13.6 – Changes in car ownership 4.6 8.4  Population growth environment SYDNEY impacting deman

  15. Slide 15: Future Environment

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE FUTURE ENVIRONMENT MICHELE HUEY

  16. Slide 16: Multiple Factors Driving Change on Transport Networks

    FUTURE ENVIRONMENT MULTIPLE FACTORS DRIVING CHANGE ON TRANSPORT NETWORKS Technology advances Social changes Policy evolutions 2016 INVESTOR DAY | 3 MAY 2016 16

  17. Slide 17: Advances in Vehicle Technology and Infrastructure Connectivity

    FUTURE ENVIRONMENT ADVANCES IN VEHICLE TECHNOLOGY AND INFRASTRUCTURE CONNECTIVITY Long-range radar Short/medium range radar Light detection & ranging Camera Ultrasound Rapid pace in vehicle technology Infrastructure connectivity critical advancement  Hazard and situation awareness  Safety assist a

  18. Slide 18: Progressive Roll-out of CAVs

    FUTURE ENVIRONMENT PROGRESSIVE ROLL-OUT OF CAVS Vehicle automation level as defined by National USA VEHICLE FLEET BY AUTOMATION LEVEL Highway Traffic Safety Administration (USA) % OF TOTAL FLEET  Level 4 – Complete self-driving automation  Level 3 – Limited self-driving automation  Level 2 – Comb

  19. Slide 19: Positive Impact on Road Safety

    FUTURE ENVIRONMENT POSITIVE IMPACT ON ROAD SAFETY Crash reduction with the use of CAVs Leveraging technology on our assets today CRASH RATE PER MILLION MILES  Incident prevention measures – E.g. over-height vehicle detection and incident management  Road conditions response – E.g. variable messagi

  20. Slide 20: Positive Impact on Road Capacity

    FUTURE ENVIRONMENT POSITIVE IMPACT ON ROAD CAPACITY Combination of CAVs and infrastructure connectivity to increase throughput TYPICAL WORKDAY PROFILE Potential technology enabled capacity Current capacity CONCEPTUAL / ILLUSTRATIVE Technology enabled throughput Theoretical throughput Current through

  21. Slide 21: Social Changes Shifting the Way Vehicles Are Used

    FUTURE ENVIRONMENT SOCIAL CHANGES SHIFTING THE WAY VEHICLES ARE USED Key trends DRIVERS LICENCE OWNERSHIP CAV TAXIS COULD REPLACE TRADITIONAL BY AGE (VICTORIA) TAXIS AND CARS IN MEGACITIES  Population growth Average number of Total cost per passenger mile  Service and passengers per vehicle in New

  22. Slide 22: Key Policy Evolutions

    FUTURE ENVIRONMENT KEY POLICY EVOLUTIONS Productivity Heavy and light Infrastructure Public and improvement vehicle charging investment private sector reform priorities collaboration 2016 INVESTOR DAY | 3 MAY 2016 22

  23. Slide 23: Different Views on Technology Impact and Timing

    FUTURE ENVIRONMENT DIFFERENT VIEWS ON TECHNOLOGY IMPACT AND TIMING PACE OF CHANGE AND ADOPTION HOW CHANGE WILL SHORT & LONG-TERM IMPACT OF CHANGE MATERIALISE TRILLIONS OF VEHICLE MILES 25% of the fleet will be autonomous Average vehicle by 2035, with 95% penetration by Historical Forecasted occupanc

  24. Slide 24: Transurban Is Positioned to Benefit from the Future Environment

    FUTURE ENVIRONMENT TRANSURBAN IS POSITIONED TO BENEFIT FROM THE FUTURE ENVIRONMENT MOTORWAYS A LOGICAL SMART SCALE OF CANDIDATE FOR CAV MOTORWAYS CUSTOMER BASE APPLICATION Free flow traffic lane design Optimisation of technology Leveraging data and access Road conditions and lane across the network

  25. Slide 25: Investing in Our Technology Capability

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE INVESTING IN OUR TECHNOLOGY CAPABILITY LISA TOBIN

  26. Slide 26: Investing in Our Technology Capability

    INVESTING IN OUR TECHNOLOGY CAPABILITY Building smarter Scaling tolling Investing in Cloud, Innovating through motorways services digital and data partnerships 2016 INVESTOR DAY | 3 MAY 2016 26

  27. Slide 27: Building Smarter Motorways

    INVESTING IN OUR TECHNOLOGY CAPABILITY BUILDING SMARTER MOTORWAYS Intelligent Transport Systems investment to realise greater network benefits  Standardising technologies across our roadways  Connecting and sharing data more effectively across our road management systems  Consolidating systems an

  28. Slide 28: Scaling Tolling Services

    INVESTING IN OUR TECHNOLOGY CAPABILITY SCALING TOLLING SERVICES Harnessing the benefits of our tolling as a service platform  Proven delivery of our turn-key tolling solutions and services for roadways  Stable and reliable revenue capture processes  Evaluating further opportunities to consolidate

  29. Slide 29: Investing in Cloud, Digital and Data

    INVESTING IN OUR TECHNOLOGY CAPABILITY INVESTING IN CLOUD, DIGITAL AND DATA A range of value-adding transport technologies:  Integrating digital Application Programing Interface (API) capabilities to enable a more effective customer experience  Implementing cloud services and automation technologi

  30. Slide 30: Innovating Through Partnerships

    INVESTING IN OUR TECHNOLOGY CAPABILITY INNOVATING THROUGH PARTNERSHIPS Continuing to work with a range of partners  Assessing how we can support the rollout of CAV technology on our networks  Integrating learnings from our road usage study into our long-term technology strategy  Exploring data sh

  31. Slide 31: Enhancing Our Customer Experience

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE ENHANCING OUR CUSTOMER EXPERIENCE SUE JOHNSON

  32. Slide 32: Enhancing Our Customer Experience

    ENHANCING OUR CUSTOMER EXPERIENCE Converting our Digital engagement Harnessing our data customers to for road users for future growth advocates 2016 INVESTOR DAY | 3 MAY 2016 32

  33. Slide 33: Transurban's Customer Base

    ENHANCING OUR CUSTOMER EXPERIENCE TRANSURBAN’S CUSTOMER BASE Customer service is vital in protecting our licence to operate 30% CORPORATE CUSTOMERS Travel time savings, performance reporting, partnerships 95% 5% of customers have Focus on of customers are no arrangement and transitioning account hol

  34. Slide 34: Digital Improvements for Our Account Holders

    ENHANCING OUR CUSTOMER EXPERIENCE DIGITAL IMPROVEMENTS FOR OUR ACCOUNT HOLDERS Retail APP FEATURES INCLUDE:  Continued migration to self service through  Easier account management website improvements  New payment options  Mobile apps  Real-time notifications  GPS data for personalised notific

  35. Slide 35: Data Improvements for Our Account Holders

    ENHANCING OUR CUSTOMER EXPERIENCE DATA IMPROVEMENTS FOR OUR ACCOUNT HOLDERS Retail NETWORK TIME SAVINGS  Project to provide travel time savings Traffic lights bypassed Peak travel time savings on statements 34 M5 South West 16 mins  Web based interactive travel time 51 Westlink M7 23 mins savings

  36. Slide 36: Improving Customer Experience for Non-Account Holders

    ENHANCING OUR CUSTOMER EXPERIENCE IMPROVING CUSTOMER EXPERIENCE FOR NON-ACCOUNT HOLDERS Improving the transition to account holders and streamlining the enforcement process: First time fee Campaigns to convert Proactive outbound Innovating through waiver program non-account communications partnershi

  37. Slide 37: Customer Trends

    ENHANCING OUR CUSTOMER EXPERIENCE CUSTOMER TRENDS  Consolidation of accounts GROWTH IN CAR-SHARE MEMBERSHIPS – Corporate customers shifting towards fleet leasing arrangements resulting in need for large scale account management Monthly toll spend by Transurban Car-share membership (‘000) – Growth i

  38. Slide 38: Funding for the Future

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE FUNDING FOR THE FUTURE ADAM WATSON

  39. Slide 39: Funding

    FUNDING FOR THE FUTURE Disciplined cost Optimal capital Managing funding management structuring risk 2016 INVESTOR DAY | 3 MAY 2016 39

  40. Slide 40: Disciplined Cost Management During Growth Phase

    FINANCIAL CONSIDERATIONS DISCIPLINED COST MANAGEMENT DURING GROWTH PHASE $’000  Earnings growth and USA assets minority interest acquired  margin expansion Legacy Way opened  achieved despite significant increase 95 Express Lanes opened  in business activity M5 Widening completed  Queensland Mo

  41. Slide 41: Managing Key Cost Drivers

    FINANCIAL CONSIDERATIONS MANAGING KEY COST DRIVERS COST CATEGORIES DRIVERS ASSET MANAGEMENT Number of lane kilometres O&M, major maintenance and Asset mix (tunnel vs open road) technology roadside costs In-housing O&M activities TOLLING & RETAIL Customer account management, Trips/transactions transa

  42. Slide 42: Capital Strategy

    FUNDING FOR THE FUTURE CAPITAL STRATEGY CONSISTENTLY EFFICIENTLY MAINTAIN STRONG COST EFFICIENT GROWING FUND GROWTH INVESTMENT GRADE FUNDING THROUGH DISTRIBUTIONS CREDIT METRICS MARKET CYCLES 2016 INVESTOR DAY | 3 MAY 2016 42

  43. Slide 43: Optimising Capital Structure

    FUNDING FOR THE FUTURE OPTIMISING CAPITAL STRUCTURE Maintaining Maturity of asset Concession Ownership Development investment restrictions structure considerations grade credit metrics 2016 INVESTOR DAY | 3 MAY 2016 43

  44. Slide 44: Managing Funding Risk

    FUNDING FOR THE FUTURE MANAGING FUNDING RISK Percentage Total drawn of Dec 15 DEC 151 GROUP DEBT  Hedging interest debt A$’000 debt rates (98% hedged) and currency (100% hedged), consistent with relevant debt A$12,194M instrument  Investment grade credit metrics  Bank debt  USD notes  Diversifi

  45. Slide 45: Group Debt Maturity as at Dec 15

    FUNDING FOR THE FUTURE GROUP DEBT MATURITY AS AT DEC 15 A$’000 Dec 15 2016 INVESTOR DAY | 3 MAY 2016 45

  46. Slide 46: Working with Government Partners

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE WORKING WITH GOVERNMENT PARTNERS TONY ADAMS

  47. Slide 47: Opportunities to Enhance Traditional Project Roles

    WORKING WITH GOVERNMENT PARTNERS OPPORTUNITIES TO ENHANCE TRADITIONAL PROJECT ROLES Transurban demonstrating value to government during each project phase Identify transport Network design Procurement Community and Delivery solutions stakeholder engagement 2016 INVESTOR DAY | 3 MAY 2016 47

  48. Slide 48: Delivering Efficiencies Through Improved Procurement Process

    WORKING WITH GOVERNMENT PARTNERS DELIVERING EFFICIENCIES THROUGH IMPROVED PROCUREMENT PROCESS YEAR 1 YEAR 2 YEAR 3 TRADITIONAL PROCESS  Benefits of Transurban’s approach to NorthConnex Decision to Proceed procurement process: Reference Design Prelim EA, Prepare EIS, Exhibit and Sub Report – Greater

  49. Slide 49: Minimising Traffic Disruption During CityLink-Tulla Widening Delivery

    WORKING WITH GOVERNMENT PARTNERS MINIMISING TRAFFIC DISRUPTION DURING CITYLINK-TULLA WIDENING DELIVERY  Shared objective with Government TIME PERIODS ALL LANES ARE OPEN ON CITYLINK DURING CONSTRUCTION to reduce impact on road users  All lanes on CityLink open during peak periods 54% 46% 42%  Addi

  50. Slide 50: CityLink-Tulla Widening Construction on Track

    POSITIONING FOR THE FUTURE CITYLINK-TULLA WIDENING CONSTRUCTION ON TRACK  Contractors working around the clock  Bolte Bridge to West Gate Freeway traffic switch implemented March 2016. Travel times in line with modelling  Partnership between CityLink, VicRoads and Victoria Police on 80km/h speed

  51. Slide 51: Greater Washington Area

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE GREATER WASHINGTON AREA JENNIFER AUMENT

  52. Slide 52: Network Strategy

    GREATER WASHINGTON AREA NETWORK STRATEGY  Deliver value to customers to increase traffic and revenue and position for expansion opportunities  Expand 95 Express Lanes to the north and south  Continue competitive bids for 66 Express Lanes projects  Leverage industry position into new North Americ

  53. Slide 53: Value Proposition for Customers

    POSITIONING FOR THE FUTURE VALUE PROPOSITION FOR CUSTOMERS 95 EXPRESS LANES: DAILY PERFORMANCE EXAMPLE  15% reduction in incidents on 95 Express Lanes since 100  Time savings conversion to HOT 90 — General purpose lanes average time — Express Lanes average time 80  Average >40% higher 70 speeds o

  54. Slide 54: Interpreting Express Lanes' Performance

    EXPRESS LANES INTERPRETING EXPRESS LANES’ PERFORMANCE GWA EXPRESS LANES: AVERAGE WEEKDAY REVENUE TOLL ROADS EXPRESS LANES FUNDAMENTALS 300 95 EXPRESS LANES Corridor demand driven by 250 population and employment REVENUE ($’000) 200 growth, land use and network 150 495 EXPRESS LANES capacity constrai

  55. Slide 55: Maintaining Investment Discipline

    EXPRESS LANES MAINTAINING INVESTMENT DISCIPLINE FORECAST REVENUE COMPARISON FOR EXPRESS LANES PROJECTS  Commitment to accurate forecasting – alignment of interest as long-term operator  In-house traffic team understands nuances of forecasting Express Revenue Lanes projects, particularly in GWA  E

  56. Slide 56: Success of Express Lanes Creating New Opportunities

    POSITIONING FOR THE FUTURE SUCCESS OF TRANSURBAN'S EXPRESS LANES CREATING NEW OPPORTUNITIES 95 CORRIDOR Expanding network through existing concession  395 Express Lanes - exclusive negotiations with VDOT to expand to the north by ~13km  In-principle agreement executed to expand to the south by ~3k

  57. Slide 57: Lens for Considering Future Markets

    LONG-TERM FOCUS LENS FOR CONSIDERING FUTURE MARKETS NETWORK POTENTIAL IN NORTH AMERICA’S Demographics MOST CONGESTED CITIES 50% Government readiness / 40% Vancouver San Francisco Los Angeles willingness for PPP Toronto Congestion level Greater Washington Area (GWA) Seattle 30% Miami Orlando Chicago

  58. Slide 58: Sydney

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE SYDNEY ANDREW HEAD

  59. Slide 59: Sydney Network Strategy

    SYDNEY NETWORK STRATEGY  Deliver NorthConnex safely and successfully — demonstration project for Transurban’s network model  Drive O&M of our assets towards best practice  Prepare for WestConnex sell down  Continue to propose other network development opportunities 2016 INVESTOR DAY | 3 MAY 2016

  60. Slide 60: Benefits of First Generation Projects Coming Through

    SYDNEY BENEFITS OF FIRST GENERATION PROJECTS COMING THROUGH PROJECT ASSETS BENEFITS M2 Upgrade  M2  LCT and Military Road E-Ramp  M7 Lane Cove Road  LCT and Military Road E-Ramp East Facing Ramp  M2  M7 M5 Widening  M5 South  M7 (South) NorthConnex  M7 truck toll multiplier  Other network

  61. Slide 61: Best Practice Delivery

    NORTHCONNEX – DEMONSTRATION PROJECT FOR TRANSURBAN’S NETWORK MODEL BEST PRACTICE DELIVERY Safety Community and Stakeholder Engagement Sustainability Environment 2016 INVESTOR DAY | 3 MAY 2016 61

  62. Slide 62: Enhancing Operations in Preparation for Future Growth

    POSITIONING FOR THE FUTURE ENHANCING OPERATIONS IN PREPARATION FOR FUTURE GROWTH O&M EXCELLENCE CONTINUOUS IMPROVEMENT 2014 M2 and LCT operations brought in-house Invested in capability 2015 Renegotiated ED maintenance contract to remove evergreen term Improving quality 2016 Commenced discussions wi

  63. Slide 63: Significant Future Opportunity in Sydney

    LONG-TERM FOCUS SIGNIFICANT FUTURE OPPORTUNITY IN SYDNEY NorthConnex  $3 billion Transurban project in construction, linking the M1 Pacific Motorway to the M2 Motorway  Due for completion late 2019 Northern Beaches Link  $2.4-3.1 billion project linking Northern Beaches to Warringah Freeway  Pro

  64. Slide 64: Melbourne

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE MELBOURNE VIN VASSALLO

  65. Slide 65: Melbourne Network Strategy

    MELBOURNE NETWORK STRATEGY  Improve lane availability and throughput via operational improvements  Improve capacity on network by delivering CityLink-Tulla Widening project  Work with government partners to enhance network, through delivery of Western Distributor  Demonstrate best practice in O&

  66. Slide 66: Improving Incident Management to Increase Lane Availability

    POSITIONING FOR THE FUTURE IMPROVING INCIDENT MANAGEMENT TO INCREASE LANE AVAILABILITY  Introduction of a Freeway Management System (FMS) enables Transurban to move from an ‘attendance’ to ‘safe clearance’ 1 incident response model − Vehicle removed from asset as soon as possible − Transurban not r

  67. Slide 67: Extensive Community and Stakeholder Engagement Progressing

    POSITIONING FOR THE FUTURE EXTENSIVE COMMUNITY AND STAKEHOLDER ENGAGEMENT PROGRESSING MID-LATE 2015 EARLY-MID 2016 MID-LATE 2016 EARLY-MID 2017 2017-2018 WE ARE PHASE 1 PHASE 2 HERE PHASE 3 PHASE 4 PHASE 5 Consultation on proposal Consultation on concept Ongoing discussion on Public exhibition of Up

  68. Slide 68: Feedback Influencing Project Design

    POSITIONING FOR THE FUTURE FEEDBACK INFLUENCING PROJECT DESIGN TUNNEL / DESIGN IMPROVED ACCESS UPGRADE TO WALKING POWER LINES POSITION TO PORT AND CYCLING PATHS  Two tunnel designs  Direct connections to  Increased bicycle and  Up to 14 overhead power under consideration both east and west walki

  69. Slide 69: Western Distributor Project Progressing on Schedule

    POSITIONING FOR THE FUTURE WESTERN DISTRIBUTOR PROJECT PROGRESSING ON SCHEDULE FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 WEBB DOCK ACCESS COMMUNITY CONSULTATION IN-PRINCIPLE AGREEMENT EXECUTED WITH STATE RELEASE OF RFT PUBLIC EXHIBITION OF EES COMMENCES MONASH FREEWAY UPGRADE PROJECT WORKS WESTERN DIS

  70. Slide 70: Leading the Way on Managed Motorways

    POSITIONING FOR THE FUTURE LEADING THE WAY ON MANAGED MOTORWAYS Working with VicRoads to implement common FMS across the network Components of a FMS:  Lane use management system – Increased control of traffic – Increased capability to manage incidents safely  Ramp metering – Improves flow of traff

  71. Slide 71: Brisbane

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE BRISBANE WESLEY BALLANTINE

  72. Slide 72: Brisbane Network Strategy

    BRISBANE NETWORK STRATEGY  Complete integration of TQ and AirportlinkM7 – Roll-out GLIDe – Align O&M model with Transurban’s national approach  Assist Government to successfully deliver Gateway Upgrade North project  Achieve financial close on Logan Enhancement Project  Explore further opportuni

  73. Slide 73: Integration Program on Schedule

    EXECUTING STRATEGY INTEGRATION PROGRAM ON SCHEDULE EXPECTED COMPLETION 2016 LATE 2017 ONGOING PHASE 1 PHASE 2 PHASE 3 Organisation structure Technology O&M 90% 50% 10% complete complete complete  TQ organisational  Work underway to align  O&M contracts to be structure aligned to back office syste

  74. Slide 74: Focused on Phase 3: O&M Stage of Integration Program

    EXECUTING STRATEGY FOCUSED ON PHASE 3: O&M STAGE OF INTEGRATION PROGRAM CURRENT STATE FUTURE STATE Individual Routine Road Operations Assets Maintenance Gateway GMS Governance Transurban  External service providers Motorway (Ventia /Lendlease) Routine Asset currently managing road Broadspectrum mai

  75. Slide 75: AirportlinkM7 Benefiting from Opening of Legacy Way

    ACQUISITION STRENGTHING PORTFOLIO AIRPORTLINKM7 BENEFITING FROM OPENING OF LEGACY WAY AIRPORTLINKM7 ADT GROWTH JAN 2015 – MAR 2016 Integration plan ADT (‘000) OPENING OF LEGACY  90-day integration plan WAY 60 FY15 ADT  Target state: FY16 ADT – Head count reduced by ~90% 55 – Single tolling brand w

  76. Slide 76: Legacy Way Revenue at Higher End of Expectations

    ACQUISITION STRENGTHING PORTFOLIO LEGACY WAY REVENUE AT HIGHER END OF EXPECTATIONS  Traffic continues LEGACY WAY WEEKLY REVENUE SINCE OPENING to grow $600,000  Full tolls $550,000 introduced 2 May 2016 $500,000 EASTER HOLIDAY PERIOD $450,000 $400,000 $350,000 CHRISTMAS HOLIDAY PERIOD $300,000 Jul

  77. Slide 77: Opportunities Arising from Network Position

    POSITIONING FOR THE FUTURE OPPORTUNTIES ARISING FROM NETWORK POSITION  Working with Queensland Government to identify opportunities to improve service delivery  Control room consolidation  Improved customer experience – Coordinated signage and information – Integrated incident response and manage

  78. Slide 78: Wrap-Up

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE WRAP-UP SCOTT CHARLTON

  79. Slide 79: Summary: Near-Term Focus

    NEAR-TERM FOCUS: POSITIONING FOR THE FUTURE SUMMARY PROJECT PIPELINE OPERATIONS TECHNOLOGY POLICY  $11 billion project  Deliver best in class  Investing in Intelligent  Deliver findings of road pipeline asset O&M Transport Systems and usage study value added transport  One project underway  Co

  80. Slide 80: Summary: Medium to Long-Term Focus

    MEDIUM TO LONG-TERM FOCUS: POSITIONING FOR THE FUTURE SUMMARY Next generation development opportunities in each market Sustained growth profile Strategically positioning for Increased throughput technology advances and lane availability Transurban is Policy reform is inevitable preparing for change

  81. Slide 81: Glossary

    2016 INVESTOR DAY: POSITIONING FOR THE FUTURE GLOSSARY

  82. Slide 82: Glossary

    GLOSSARY ADT Average Daily Traffic HOT High Occupancy Toll Lane API Application Program Interface IEEE Institute of Electrical and Electronics Engineers AUD Australian Dollars KMS Kilometres BCG Boston Consulting Group KM/H Kilometres per hour BMS Brisbane Motorways Services LCT Lane Cove Tunnel BTS

Transurban — Investor Day (May 2016) on 6ix