TRANSURBAN
DISCLAIMER
This publication is prepared by the Transurban Group comprising Transurban Holdings Limited (ACN 098 143 429), Transurban Holding Trust (ARSN 098 807 419) and Transurban International Limited (ACN 121 746 825).
The responsible entity of Transurban Holding Trust is Transurban Infrastructure Management Limited (ACN 098 147 678) (AFSL 246 585). No representation or warranty is made as to the accuracy, completeness or
correctness of the information contained in this publication. To the maximum extent permitted by law, none of the Transurban Group, its Directors, employees or agents or any other person, accept any liability for any loss arising
from or in connection with this publication including, without limitation, any liability arising from fault or negligence, or make any representations or warranties regarding, and take no responsibility for, any part of this publication
and make no representation or warranty, express or implied, as to the currency, accuracy, reliability, or completeness of information in this publication. The information in this publication does not take into account individual
investment and financial circumstances and is not intended in any way to influence a person dealing with a financial product, nor provide financial advice. It does not constitute an offer to subscribe for securities in the Transurban
Group. Any person intending to deal in Transurban Group securities is recommended to obtain professional advice.
UNITED STATES
These materials do not constitute an offer of securities for sale in the United States, and the securities referred to in these materials have not been and will not be registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an exemption from registration.
© Copyright Transurban Limited ABN 96 098 143 410. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise, without the written permission of the Transurban Group.
2
TRANSURBAN SNAPSHOT
AUSTRALIA’S LARGEST PRIVATELY OWNED TOLL ROAD OPERATOR
•
•
•
•
Transurban is Australia’s largest privately owned toll road operator
o ownership interests in 15 toll road assets (13 Australia, 2 US)1
o urban toll road networks in areas of congested traffic
o demonstrated strong and resilient traffic volumes over time
Long-term concessions
o weighted-average length of c. 29.9 years
o embedded inflation protection for Australian assets
Ranked 13th on the ASX, with a market capitalisation of A$22.4Bn as
at 9 September 2016
Senior debt ratings of:
o Baa1 (stable) (Moody’s)
o BBB+ (stable) (S&P)
o A- (stable) (Fitch)
LONG-LIFE TOLL ROAD NETWORKS
ESSENTIAL URBAN INFRASTRUCTURE
EMBEDDED INFLATION PROTECTION FOR
AUSTRALIAN ASSETS
COMMITTED TO STRONG INVESTMENT
GRADE CREDIT METRICS
1. Operates 15 toll roads under 14 Concession Agreements — Gateway and Logan toll roads in Queensland operate under a single concession.
3
STRATEGY
To be the partner of choice with governments
providing effective and innovative urban road infrastructure
utilising core capabilities
Network
planning
/ forecasting
Community
engagement
Development
/ delivery
Technology
Operations
Customer
management
4
MULTI-LAYERED BUSINESS
1. Estimated spend reflects 100% of the total project cost not Transurban’s share.
2. As the 66 Express Lanes is a competitive process, and the 95 Express Lanes Atlantic Gateway
Project is in early negotiations, these projects have not been included in Transurban’s $9 billion
development pipeline.
5
TRANSURBAN OPERATES IN A REGULATED
ENVIRONMENT
CONCESSION DEEDS
INDEPENDENT REGULATION
LIGHT HANDED MONITORING
Example
industries
Toll roads
Utilities including electricity, water,
gas
Airports, railway and some ports
Pricing
freedoms
Australian tolls fixed from date of
concession with defined escalation.
Other charges are set out in
concession deeds, legislation or
agreed with client (cost recovery)
Prices reset periodically (around
every five years) to allow agreed
return hurdles to be met based upon
a regulated asset base
Price monitoring by the ACCC.
Commercial arrangements with users
renegotiated periodically
Customer
choice
Road users have alternatives
including non-tolled roads and other
modes of transport
Choice at retailer level but
monopolies around distribution
infrastructure
Limited alternatives for consumers
and users (airlines, shipping lines)
Volume
risk
Demand risk borne by toll road
owner, including shortfalls in revenue
or higher than anticipated costs
Prices can be adjusted annually to
allow costs to be covered and margin
earned even if volumes fall
Price reset is a commercial
negotiation which covers cost
recovery, volumes
and returns
6
NETWORK OVERVIEW
HISTORY
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
CityLink
M1-CityLink Upgrade
CityLink-Tulla Widening
Hills M2
Hills M2 Upgrade
M7
ED & M5 1
M5 Widening
Cross City Tunnel
Gateway, Logan, Clem7 & GBB
Legacy Way 2
2
AirportLinkM7
495 Express Lanes
95 Express Lanes
Transurban D&C projects – road opening date
Acquired
Upgrade project
1
2
Acquired as part of takeover bid of Sydney Roads Group
Acquisition of Queensland Motorways
SYDNEY NETWORK
INTEGRAL PART OF SYDNEY’S ORBITAL RING ROAD
OVERVIEW / HIGHLIGHTS
•
Six operational toll roads representing 41% of proportional FY16 toll revenue
•
Hills M2, Lane Cove Tunnel and the Cross City Tunnel are wholly owned; Eastern
Distributor, Westlink M7 and M5 are partially owned alongside other investors
•
Remaining life under the concession agreements ranges from 10 years to 32 years
•
Network investments on Hills M2 and M5 across FY11-15 have delivered enhanced
traffic flows
•
NorthConnex (50% owned by Transurban) currently under construction
KEY STATISTICS – NEW
SOUTH WALES
Sydney population
(2015)1
1.
2.
3.
4.
5.
6.
Australian Bureau of Statistics, catalogue 3218 Regional Population Growth, June 2015.
Australian Bureau of Statistics , catalogue 5220 Australian National Accounts: State Accounts,
2014-15.
Australian Bureau of Statistics, catalogue 9309 Motor Vehicle Census, January 2016.
Average Daily Trips are calculated by dividing the total number of trips on each toll road by the
number of days in the period. A trip represents a vehicle passing through a designated toll point
on the relevant toll road, with the exception of Westlink M7 where one trip represents a vehicle
passing under two toll points on the relevant toll road.
Toll revenue includes service and fee revenue.
EBITDA margins are calculated using toll revenue including service and fee revenue.
Gross State Product
growth (2005 - 2015)2
Number of vehicles
(2016)3
HISTORICAL DATA
4.9m
FY14
FY15
FY16
CAGR
(%)
Traffic (ADT)4
‘000
543
581
625
7.3
Proportional toll
revenue5
A$m
580
702
799
17.4
Proportional
EBITDA
A$m
466
558
637
16.9
%
80.3
79.6
79.7
n/a
2.0%
5.4m
EBITDA margin6
9
MELBOURNE NETWORK
MELBOURNE’S CRITICAL URBAN TOLL ROAD
OVERVIEW / HIGHLIGHTS
1.
2.
3.
4.
5.
6.
Australian Bureau of Statistics, catalogue 3218 Regional Population Growth, June 2015.
Australian Bureau of Statistics , catalogue 5220 Australian National Accounts: State Accounts,
2014-15.
Australian Bureau of Statistics, catalogue 9309 Motor Vehicle Census, January 2016.
Average Daily Trips are calculated by dividing the total number of trips on each toll road by the
number of days in the period. A trip represents a vehicle passing through a designated toll point
on the relevant toll road, with the exception of Westlink M7 where one trip represents a vehicle
passing under two toll points on the relevant toll road.
Toll revenue includes service and fee revenue.
EBITDA margins are calculated using toll revenue including service and fee revenue.
•
Transurban’s largest single asset, 34% of proportional FY16 toll revenue
•
Urban toll road forms part of Melbourne’s most important traffic corridor
•
Long track record; operational since 1999 with the concession to 2035
•
Wholly owned by Transurban with no external asset level debt
•
Creditors have direct security over CityLink
•
Proposal for Western Distributor in Stage 4 negotiations with State Government
FY14
FY15
FY16
CAGR
(%)
‘000
793
816
824
1.9
Toll revenue5
A$m
570
615
660
7.6
EBITDA
A$m
469
523
564
9.7
%
82.3
85.0
85.5
n/a
KEY STATISTICS – VICTORIA
HISTORICAL DATA
Melbourne population
(2015)1
4.5m
Traffic (ADT)4
Gross State Product
growth (2005 – 2015)2
2.1%
Number of vehicles
(2016)3
4.7m
EBITDA margin6
10
BRISBANE NETWORK
HIGH QUALITY, STRATEGIC NETWORK
OVERVIEW / HIGHLIGHTS
•
Six toll roads representing 16% of proportional FY16 toll revenue
•
Transurban Queensland acquired in July 2014
•
Transurban owns a 62.5% interest in Transurban Queensland alongside Australian
Super (25%) and Abu Dhabi Investment Authority (12.5%)
•
Financial close was reached on the acquisition of AirportlinkM7 on 1 April 2016
•
Concession agreement life ranges from 35 years to 49 years
•
Integration is progressing well and expected to be completed by 2018
KEY STATISTICS –
QUEENSLAND
Brisbane population
(2015)1
1.
2.
3.
4.
5.
6.
Australian Bureau of Statistics, catalogue 3218 Regional Population Growth, June 2015.
Australian Bureau of Statistics , catalogue 5220 Australian National Accounts: State Accounts,
2014-15.
Australian Bureau of Statistics, catalogue 9309 Motor Vehicle Census, January 2016.
Average Daily Trips are calculated by dividing the total number of trips on each toll road by the
number of days in the period. A trip represents a vehicle passing through a designated toll point
on the relevant toll road, with the exception of Westlink M7 where one trip represents a vehicle
passing under two toll points on the relevant toll road.
Toll revenue includes service and fee revenue.
EBITDA margins are calculated using toll revenue including service and fee revenue.
Gross State Product
growth (2005 - 2015)2
Number of vehicles
(2016)3
HISTORICAL DATA
2.3m
FY14
FY15
FY16
CAGR
(%)
Traffic (ADT)4
‘000
295
303
343
7.8
Proportional toll
revenue5
A$m
n/a
265
313
18.1
Underlying
proportional EBITDA
A$m
n/a
185
218
17.8
%
n/a
69.6
69.9
n/a
3.1%
3.9m
EBITDA margin6
11
GREATER WASHINGTON AREA NETWORK
STRATEGICALLY LOCATED ON CONGESTED CORRIDOR
OVERVIEW / HIGHLIGHTS
1.
2.
3.
4.
5.
6.
7.
United States Census Bureau
Bureau of Economic Analysis
Virginia Department of Motor Vehicles
The Transurban Group transferred Pocahontas 895 to the non-recourse lenders of the asset in May
2014
Average Daily Trips are calculated by dividing the total number of trips on each toll road by the
number of days in the period. A trip represents a vehicle passing through a designated toll point on
the relevant toll road, with the exception of 495 Express Lanes and 95 Express Lanes where one trip
represents a vehicle passing under two toll points on the relevant toll road.
Toll revenue includes service and fee revenue.
EBITDA margins are calculated using toll revenue including service and fee revenue.
•
Two wholly owned toll road assets representing 9% of proportional FY16 toll revenue
•
495 Express Lanes opened in November 2012 and the 95 Express Lanes opened in
December 2014
•
Concessions to 2087
•
High occupancy toll (HOT) lanes
•
Dynamic tolling (no contractual toll price limits)
KEY STATISTICS – VIRGINIA
HISTORICAL DATA4
Population (2015)1
8.4m
Traffic (ADT)5
Gross State Product
growth (2005 - 2015)2
2.1%
Number of vehicles
(2015)3
CAGR
FY14
FY15
FY16
‘000
31
75
85
65.6
Proportional toll
revenue6
A$m
35
75
174
123.0
Proportional
EBITDA
A$m
7
33
86
250.5
19.5
43.4
49.5
n/a
(%)
8.0m
EBITDA margin7
%
12
Corridor demand driven by
population and employment
growth, land use and network
capacity constraints
GWA EXPRESS LANES: AVERAGE WEEKDAY REVENUE
350
REVENUE ($’000)
FUNDAMENTALS
300
95 EXPRESS LANES
250
200
150
495 EXPRESS LANES
100
50
0
Sep-12
INCREMENTAL
CONSIDERATIONS
Express Lanes demand driven
by general purpose lane
congestion, trip purpose and
user familiarity
Higher demand leads to
increased average toll price
Sep-13
Sep-14
Sep-15
Sep-16
495 EXPRESS LANES: CONSISTENT TRENDS YEAR ON YEAR
REVENUE ($’000)
EXPRESS LANES
TOLL ROADS
INTERPRETING EXPRESS LANES’ PERFORMANCE
300
FY16
250
200
FY15
150
FY14
100
FY13
50
0
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
13
LENS FOR CONSIDERING FUTURE MARKETS
Demographics
NETWORK POTENTIAL IN NORTH AMERICA’S
MOST CONGESTED CITIES
50%
Individuals’ propensity
to pay tolls
40%
San Francisco
Vancouver
Congestion level
Government readiness /
willingness for PPP
Greater Washington Area (GWA)
Seattle
30%
Los Angeles
Toronto
Miami
Orlando
Chicago
Houston
20%
Denver
Dallas-Fort Worth
Boston
10%
Charlotte
Bubble size
represents network
potential
San Antonio
Network potential
Norfolk / VA Beach
0%
0
5
10
Population (millions)
15
20
Source: Tom Tom 2014 Data
14
PROJECT PIPELINE
FY17
FY18
COMMITTED
PROJECTS1
FY19
FY20
FY21
FY22
NORTHCONNEX ($1.3 billion)
CITYLINK TULLA WIDENING ($1.0 billion)
WEBB DOCK ACCESS
MONASH FREEWAY UPGRADE2
($3.5 - $4.0 billion)
WESTERN DISTRIBUTOR
EXCLUSIVE
NEGOTIATIONS1,2
LOGAN ENHANCEMENT PROJECT ($281 million)
INNER CITY BYPASS ($50 million)3
395 EXPRESS LANES (US$250 - $300 million)
95 EXPRESS LANES SOUTHERN EXTENSION (US$25 million)
95 EXPRESS LANES ATLANTIC GATEWAY PROJECT4
COMPETITIVE
BIDS2
TRANSURBAN ESTIMATED ANNUAL
CAPITAL CONTRIBUTION1,4
1.
2.
3.
4.
66 EXPRESS LANES4
$0.9B
$1.6B
$1.5B
$1.2B
$0.8B
$0.2B
Estimated spend reflects Transurban’s proportion of the total project cost.
Final funding requirement subject to confirmation of project scope and/or competitive procurement process and extent of government funding.
ICB project cost of $80 million as per media release from Brisbane City Council on 17 June 2016.
As the 66 Express Lanes is a competitive process, and the 95 Express Lanes Atlantic Gateway Project is in early negotiations, these projects have not been included in Transurban’s estimated annual capital
contribution.
15
LONG-TERM VALUE CREATION
REMAINING CONCESSION LIFE
CONCESSION EXTENSIONS
80
M5 WEST
WIDENING
M5
3.3 years to 2026
QUEENSLAND
MOTORWAYS
ACQUISITION
Gateway
Logan
Clem7
GBB
37 years
37 years
37 years
49 years
CITYLINK TULLA
WIDENING
CityLink
1 year to 2035
M2
2.1 years to 2048
M7
11.4 years to 2048
LCT
11.5 years to 2048
95 EXPRESS
LANES PROJECT
95 Express
Lanes
73 years to 2087
AIRPORTLINKM7
ACQUSITION
AirportlinkM7
37 years to 2053
70
60
50
40
29.9
years
30
20
10
0
NORTHCONNEX
PROJECT
Remaining Concession Years
Weighted Avg Concession Life
to 2051
to 2051
to 2051
to 2063
16
RESILIENCE OF TRANSURBAN ROADS
17
FINANCIAL OVERVIEW
CAPITAL MANAGEMENT STRATEGY
CONSISTENTLY
GROWING
DISTRIBUTIONS
EFFICIENTLY FUND
GROWTH
MAINTAIN STRONG
INVESTMENT GRADE
CREDIT METRICS
COST EFFICIENT
FUNDING THROUGH
MARKET CYCLES
19
CONSISTENT GROWTH IN DISTRIBUTIONS
■ ACTUAL
GROWTH DRIVERS
■ GUIDANCE
• Strong underlying network
traffic
• Embedded price escalation
across concessions
• Operational efficiencies across
technology, operations and
maintenance
Compound annual growth of greater than 10% since FY09 (inclusive of FY17 guidance)
22.0
22.0₵₵
24.0
24.0
₵ ₵
27.0₵
29.5₵
31.0₵
35.0₵
40.0₵
45.5₵
50.5₵
• Traffic uplift from development
projects
o improved traffic flows in key
corridors
1.
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
$281M
$324M
$389M
$429M
$456M
$594M
$764M
$901M
FY17
o toll price adjustments
AMOUNT
DISTRIBUTED1
Total amount distributed inclusive of DRP.
20
CAPITAL MANAGEMENT STRATEGY
STRONG METRICS (30 JUNE 2016)
Weighted average maturity
Weighted average cost of AUD debt
8.7 years
5.2%
CORPORATE CREDIT RATINGS
FUNDING STRATEGY
Moody’s
• Diversify where pricing is
favourable
S&P’s
Fitch
Weighted average cost of USD debt
Gearing (proportional debt to
enterprise value)1
FFO/Debt2
1.
2.
4.3%
33.3%
Baa1 (stable)
BBB+ (stable)
• Maintaining adequate
liquidity
A- (stable)
• Extend average tenor of debt
• Minimise refinance risk by
ensuring spread of debt
maturities over time
8.6%
Proportional drawn debt in AUD, CAD, CHF, Euro and USD debt converted at the hedged rate where cross currency swaps are in place. Unhedged USD debt converted at the spot exchange rate ($0.7426 at
30 June 2016). The security price was $11.99 at 30 June 2016 with 2,036 million securities on issue at 30 June 2016.
Based on S&P methodology. The impact of AirportlinkM7 has been annualised. Unadjusted FFO/Debt is 8.3% and on a cash tax basis FFO/Debt is 8.0% (AirportlinkM7 annualised).
21
CORPORATE DEBT MATURITIES
BY FINANCIAL YEAR – AS AT 30 JUNE 2016
2,000
1,800
1,600
Working Capital Facilities
Term Bank Debt
USPP
AMTN
EMTN
144A
Letters of Credit
A$ MILLION
1,400
1,200
743
1,000
800
4
600
300
400
60
133
200
350
165
300
233
809
254
833
240
300
219
206
218
FY020
FY21
FY22
706
94
FY17
FY18
FY19
FY23
FY24
FY25
FY26
FY27
FY28
FY29
FY30
FY31
FY32-41
FY42+
1. Debt is shown in the financial year in which it matures.
2. Debt values are in AUD as at 30 June 2016. CAD, Euro and USD debt are converted at the hedged rate where cross currency swaps are in place.
3. Unhedged USD debt is converted to AUD at the spot exchange rate ($0.7426 at 30 June 2016).
22
NON-RECOURSE DEBT MATURITIES
BY FINANCIAL YEAR – AS AT 30 JUNE 2016
1,800
80
1,600
73
1,400
525
520
A$ MILLION
1,200
350
405
800
Westlink M7
Cross City Tunnel
M5 South Western Motorway
Lane Cove Tunnel
495 Express Lanes
160
1,312
300
90
400
200
15
750
603
495
98
250
279
FY19
FY20
FY21
200
116
108
FY18
40
60
225
475
277
FY17
429
85
77
225
600
Eastern Distributor
Hills M2
95 Express Lanes
303
1,000
Transurban Queensland (incl AirportlinkM7)
FY22
FY23
FY24
200
203
FY25
FY26
406
302
FY27
FY28
200
FY29
FY30
FY31
326
FY32-41
FY42+
1. The full value of debt facilities is shown as this is the value of debt for refinancing purposes. This overstates Transurban’s ownership share of the debt.
2. Debt is shown in the financial year in which it matures.
3. Debt values are in AUD as at 30 June 2016. CHF and USD debt are converted at the hedged rate where cross currency swaps are in place.
4. The A$303 million maturing in FY21 are part of the 495 Express Lanes senior bonds maturing in FY48. This tranche will be refinanced as per the financing structure agreed with the sole holder, J.P. Morgan.
5. 95 Express Lanes and 495 Express Lanes maturities show final maturity dates.
23
HEDGING PROFILE1
• 99% hedged as at 30
June 2016
• Refinances are
managed early
14,000
GWA
Brisbane
Sydney
Corporate
Fixed
12,000
10,000
A$ MILLION
• Hedge tenor is
matched to the tenor
of debt on 98%2 of
drawn debt
16,000
8,000
6,000
4,000
2,000
FY16 FY18 FY20 FY22 FY24 FY26 FY28 FY30 FY32 FY34 FY36 FY38 FY40 FY42 FY44 FY46 FY48
1. Calculated on the full value of drawn debt including 100% of non-recourse drawn debt. Non AUD debt is converted at the hedged rate where cross currency swaps are in place. Unhedged USD debt is converted at the spot
exchange rate ($0.7426 at 30 June 2016).
2. A$62 million drawn working capital maturing in FY18 is unhedged. A$303 million PAB for 495 Express Lanes maturing in FY48 and are hedged to FY28.
24
POSITIONING FOR THE FUTURE
TECHNOLOGY AND CUSTOMER STRATEGY
TOLLING TECHNOLOGY
ROADSIDE SERVICES
CENTRAL BACK OFFICE SERVICES (GLIDe)
(PHYSICAL INFRASTRUCTURE)
ASSET SERVICES
DATA CAPTURE
 Identifies the
vehicle/eTAG
 Records
characteristics of
the trip
 Transfers trip data
for processing
TRIP
CONSTRUCTION
 Vehicle trip
construction and
pricing
 Licence plate
recognition
TOLL COLLECTION
 Links trip to
customer account
 Integrates with
external toll road
providers and
retailers
RETAIL SERVICES
CUSTOMER
MANAGEMENT
 Customer account
management
 Tag management
 Account payments
 Enforcement
processing
26
SIGNIFICANT OPPORTUNITIES EMERGING
THROUGH TECHNOLOGY
TECHNOLOGY
• Road network pricing opportunities
• Efficient road network operations
• Optimised traffic management
• Expanded customer interfaces
27
NETWORK MANAGEMENT OPPORTUNITIES
BENEFIT S
NOW
MEDIUM TERM
LONG TERM
ROADSIDE MEASURES
SHIFT TO SMART VEHICLES
DRIVERLESS VEHICLES
•
Variable speed signs
•
Internet-connected vehicles
•
•
Lane use management
•
Accurate vehicle tracking
•
Over height detection
•
•
Weight-in-motion sensors
Real-time communication
with drivers
Driverless vehicles
communicating with
centralised systems
•
•
Effective traffic control
Reduced damage to
infrastructure
Improved road safety
•
New road user pricing
models
Improved traffic
management
Richer data and analytics
Integrated road user
experience
•
Increased utilisation of road
assets
Optimisation of traffic flows
Resulting in increased
network capacity and more
efficient travel times
•
•
•
•
•
•
28
PREPARING FOR TECHNOLOGY ADVANCES
Technology advances impacting
capacity:
 Connected and autonomous
vehicles (CAVs)
 Vehicle platooning
 Designated lanes
Potential for 10-25% increase
in motorway capacity by 2030s
Vehicle platooning
Safety benefits from reduced
human error
Potential to double capacity in dedicated CAV lanes
Dedicated lanes for CAVs
29
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 throughput
30
IMPROVING CUSTOMER EXPERIENCE FOR NONACCOUNT HOLDERS
 Improving the transition to account holders and streamlining the enforcement process:
First time fee
waiver program
Campaigns to convert
non-account
customers
More than 95% of infringement
recoveries retained by State/Council
Authority in Australia
Proactive outbound
communications
to customers
Innovating through
partnerships
In the USA, Transurban manages
penalty and court process and collects
and retains the majority of enforcement
recoveries
31
EXPANDING CUSTOMER BASE
Transurban has an Australian customer base of over 3 million customers and a US1 customer base of
3.5 million customers
30%
CORPORATE CUSTOMERS
Travel time savings,
performance reporting,
partnerships
95%
of customers are
account holders
70%
5%
of customers have
no arrangement and
require additional
services /
enforcement
Focus on
transitioning
to account
holders and
streamlining
enforcement
RETAIL CUSTOMERS
Apps, self serve,
travel time savings
1.
US Customer Base based on cumulative unique transponders used on the assets.
32
DEVELOPMENT
OPPORTUNITIES
NEXT GENERATION DEVELOPMENT
OPPORTUNITIES
SYDNEY
NEXT GENERATION DEVELOPMENT
OPPORTUNITIES
MELBOURNE
NEXT GENERATION DEVELOPMENT
OPPORTUNITIES
BRISBANE
NEXT GENERATION DEVELOPMENT
OPPORTUNITIES
GREATER
WASHINGTON
AREA
APPENDIX
TOLL ROAD OPERATIONS
BUILD
OPERATE
MAINTAIN
Opportunity for development identified or
Government initiates a tender process for a
particular project
Collection of tolls from customers
Concession deeds state that Transurban must
maintain the asset
Proposal developed - considering geography,
feasibility, community engagement, technical
issues, cost and potential funding sources
All tags in Australia must work on all other toll
roads
Maintenance is recurring and non-recurring,
generally cyclical, depending on wear and tear
Proposal submitted to government and details
negotiated
Customers can have an account with any tag
retailer (Transurban or external)
Annual recurring maintenance includes: line
marking, road sweeping.
Expensed directly to P&L
If accepted, Transurban appoints a D&C (design
& construct) contractor to construct the asset.
Daily, each retail company logs into a secure hub
to swap details of customer trips owing and
receivable from each other
Non-recurring (major) maintenance includes:
surface re-sheeting, structural works
Maintenance provision raised and expensed to
P&L.
Upon completion, Transurban takes delivery of
the road and commences operations
Provision raised to reflect the level of wear and
tear on the road at a given point in time
39
STAPLED STRUCTURE
TRANSURBAN HOLDINGS LIMITED (THL)
TRANSURBAN HOLDING TRUST (THT)
•
The listed Transurban Group (TCL) comprises of three separate legal entities – THL, THT and TIL.
•
Each equity security comprises one share in THL, one unit in THT and one share in TIL.
•
The individual securities within each stapled security cannot be traded separately.
•
THL has been identified as the parent entity of the stapled group, in accordance with accounting standards.
TRANSURBAN INTERNATIONAL LIMITED (TIL)
PURPOSE OF STAPLE:
•
Large initial capital investment and debt funding required for infrastructure development leads to accounting losses during the early years of the project (due to
amortisation) which prevents payment of dividends.
•
The majority of the Australian operating assets are structured as a Company and a Trust.
•
Trusts allow regular distributions to be made to investors in the early years. Each operating Transurban asset Trust pays distributions to THT which then
distributes to investors.
•
Regular distributions allow a stapled structure to efficiently access equity and debt markets.
•
Stapled structures are generally used for infrastructure assets which required large upfront capital investment.
40
SUMMARISED GROUP STRUCTURE
TRANSURBAN HOLDINGS LIMITED (THL)
CORPORATE
ENTITIES
100% owned
Including:
Employing entity
Financing entity
Trustee entities
Not consolidated
equity accounting
Consolidated
75.1%
1.
2.
3.
TRANSURBAN HOLDING TRUST (THT)
ROAD/OPERATING ENTITIES
OTHER ENTITIES
ROAD/OPERATING
ENTITIES
CORPORATE ENTITIES
Holding entity employing US-based staff
Companies operating and maintaining
roads
Trusts holding asset and financing
Transurban Finance Trust
CityLink Melbourne Limited
CityLink Trust
Westlink Partner Holding
entities
Hills Motorway Limited (M2)
Hills Motorway Trust (M2)
Transurban DRIVe Holdings LLC
100%
LCT MRE Pty Limited (LCT)
LCT MRE Trust (LCT)
Capital Beltway Express LLC
100%
Transurban CCT P/L (CCT)
Transurban CCT Trust (CCT)
95 Express Lanes LLC
100%
Airport Motorway Limited (ED)
Airport Motorway Trust (ED)
62.5%
Queensland Motorways Pty Ltd
62.5%
Transurban Queensland Holdings 1 P/L 2
62.5%
APL Co Pty Limited
TQ APL Asset Trust
50.0%
NorthWestern Roads GroupPty Limited3
NorthWestern Roads Group Trust3
50.0%
TRANSURBAN INTERNATIONAL LIMITED (TIL)
1
Interlink Roads Pty Limited (M5)
Built, operates and maintains road, and has
own borrowings. Funding from non
recourse borrowings.
Includes Logan Motorway and Gateway Motorway
Includes Go Between Bridge, Clem 7 and Legacy Way
Includes Westlink M7 and NorthConnex
Transurban Queensland Property Trust
OPERATING ASSET PORTFOLIO
OVERVIEW
CITYLINK
M5
M2
ED
M7
NORTHCONNEX
LCT
CCT
Melbourne
Sydney
Sydney
Sydney
Sydney
Sydney
Sydney
Sydney
Aug 2005
Opening date
Dec 2000
Aug 1992
May 1997
Dec 1999
Dec 2005
Under Construction
Mar 2007
Remaining concession period
19 years
10 years
32 years
32 years
32 years
28 years1
32 years
19 years
Concession end date
Jan 2035
Dec 2026
Jun 2048
Jul 2048
Jun 2048
Jun 2048
Jun 2048
Dec 2035
22km in 2 sections
22km
21km
6km
40km
9km
3.8km
2.1km
Length – surface
16.8km
22km
20.4km
4.3km
40km
–
0.3km
0 km
Length – tunnel
5.2km
–
0.6km
1.7km
–
9km
3.5km
2x2
2x3 some sections
2.1km
2x2
2x3 some ramp
sections
PHYSICAL DETAILS
Length – total
Lanes
2x4 in most sections
2x3
2x3
2x3
2x2 some sections
2x2
2x2
100%
50%
100%
75.1%
50%
50%
100%
100%
34.0%
6.4%
13.1%
8.8%
n/a
4.6%
3.1%
A$660m
A$125m
A$170m
n/a
A$89m
A$60m
OWNERSHIP
TCL ownership
FINANCIAL
% of proportional FY16 group toll
revenue2
FY16 proportional toll revenue
A$255m
4.9%
A$95m
TOLLING
Truck multiplier
1.
2.
3.
4.
LCV: 1.6x
HCV: 1.9x (3x)3
2.79x (3x)4
3x
2x
2.33x (3x)4
3x
2.67x (3x)4
Concession period from expected opening date late 2019.
Transurban's proportional share of asset toll revenue relative to Transurban's total proportional toll revenue (in Australian dollars) for the financial year ended 30 June 2016.
HCV multiplier to increase on 1 April 2017.
Truck toll multiplier at 30 June 2016. Multiplier gradually increasing to 3 times cars. Multiplier to reach 3 times cars on M5 on 1 October 2016 and the M7 and LCT on 1 January 2017.
2x
OPERATING ASSET PORTFOLIO
GATEWAY
MOTORWAY
LOGAN
MOTORWAY
CLEM7
GO BETWEEN
BRIDGE
LEGACY
WAY
AIRPORTLINKM7
495 EXPRESS
LANES2
95 EXPRESS
LANES2
OVERVIEW
Brisbane
Brisbane
Brisbane
Brisbane
Brisbane
Brisbane
Greater
Washington Area
Greater
Washington Area
Opening date
Dec 1986
Dec 1988
Mar 2010
Jul 2010
Jun 2015
Jul 2012
Nov 2012
Dec 2014
Remaining concession period
35 years
35 years
35 years
47 years
49 years
37 years
71 years
71 years
Concession end date
Dec 2051
Dec 2051
Aug 2051
Dec 2063
Jun 2065
Jun 2053
Dec 2087
Dec 2087
Length – total
23.1km
38.71 km
6.8km
0.3km
5.7km
6.7km
22km
46.6km
Length – surface
23.1km
38.71 km
2.0km
0.3km
1.1km
1.0km
22km
46.6km
4.8km
–
4.6km
5.7km
–
–
2x2
2x2
2x3
2x2 HOT lanes
2 and 3 reversible
HOT lanes
PHYSICAL DETAILS
Length – tunnel
Lanes
–
–
6,8 and 10
(various) 12
Gateway Bridge
2x2
2x2
62.5%
62.5%
62.5%
62.5%
62.5%
62.5%
100%
100%
6.7%
5.6%
1.6%
0.4%
0.9%
0.9%
3.9%
5.0%
A$131m
A$108m
A$32m
A$8m
A$17m
A$17m
A$76m
A$98m
LCV – 1.5x
HCV – 2.65x
LCV – 1.5x
HCV – 2.65x
LCV – 1.5x
HCV – 2.65x
LCV – 1.5x
HCV – 2.65x
LCV4 – 1.5x
HCV4 – 2.65x
LCV – 1.5x
HCV – 2.65x
No multiplier
trucks >2 axle
not permitted
No multiplier trucks
>2 axle not permitted
OWNERSHIP
TCL ownership
FINANCIAL
% of proportional FY15 group toll
revenue3
FY15 proportional toll revenue
TOLLING
Truck multiplier
1.
2.
3.
4.
Length includes 9.8km of Gateway Extension Motorway.
On 29 June 2015, Transurban acquired the remaining equity interest in both the 495 and 95 Express Lanes.
Transurban's proportional share of asset toll revenue relative to Transurban's total proportional toll revenue (in Australian dollars) for the financial year ended June 30, 2015.
Calculated based on the non-discount car and truck toll, which applied from 2 May 2016.
95 AND 495 EXPRESS LANES
FY16
FY16
16km (10 miles)
45km (28 miles)
10.1km (6.2 miles)
21.6km (13.4 miles)
39,711
45,233
AVERAGE DAILY REVENUE
$151,786
$194,841
AVERAGE WEEKDAY REVENUE
$199,702
$254,695
7:00-9:00am | 4:00-7:00pm
6:00-9:00am | 4:00-7:00pm
$4.51
$6.58
15%
34%
PERIOD
LENGTH OF FACILITY
AVERAGE TRIP LENGTH
AVERAGE DAILY TRAFFIC
PEAK PERIOD
AVERAGE TOLL PAID
HIGH OCCUPANCY AND EXEMPT VEHICLES
44
TOLLING ESCALATION
EMBEDDED INFLATION PROTECTION
MOTORWAY
ESCALATION
CityLink
Escalated quarterly by the greater of quarterly CPI or 1.1065 per for the first 16 years, then quarterly by CPI. This is subject to a cap of annual
CPI plus 2.5%, which cannot be exceeded.
M2
Escalated quarterly by the greater of quarterly CPI or 1%.
LCT
Escalated quarterly by quarterly CPI. The toll cannot be lowered as a result of deflation, however, until inflation counteracts the deflation
the toll cannot be increased.
ED
Escalated quarterly by the greater of a weighted sum of quarterly AWE and quarterly CPI or 1%.
M7
Escalated or deescalated quarterly by quarterly CPI.
M5
Escalated quarterly by quarterly CPI. The toll cannot be lowered as a result of deflation, however, until inflation counteracts the deflation the toll
cannot be increased.
CCT
Escalated 4% annually to December 2011; 3% annually to December 2017; CPI to concession end.
Logan Motorway
Tolls escalate annually at Brisbane CPI.
Gateway Motorway
Tolls escalate annually at Brisbane CPI.
Clem7
Tolls escalate annually at Brisbane CPI.
Go Between Bridge
Tolls escalate annually at Brisbane CPI.
Legacy Way
Tolls escalate annually at Brisbane CPI.
AirportlinkM7
Tolls escalate annually at Brisbane CPI.
495 Express Lanes
Dynamic, uncapped.
95 Express Lanes
Dynamic, uncapped.
45
TAX PROFILE
TCL’s network has required
more than
SIGNIFICANT
INVESTMENT
$23B
 Infrastructure assets require billions of dollars in upfront capital investment,
leading to accounting and tax losses in early years
1
of investment to develop
TCL estimates investors have
paid more than
STAPLED
STRUCTURE
$800M
in tax since 2002
1.
2.
3.
 Funding costs are deductible but subject to tax in lender’s hands
 Critical to investment appeal and ability to fund long term infrastructure projects
 Enables payment of distributions to security holders
 Distributions are ultimately taxed in the hands of investors
2
Prudent gearing of
TAX
INTEGRITY
 International and Australian accounting and tax principles require amortisation
of capital investment
35-45%
consistent with listed
infrastructure assets
This does not include ongoing costs for operations and maintenance.
Based on an assumed security holder profile.
Transurban Limited Holdings Consolidated Tax Group.
 Transurban3 rated ‘lower risk’ and ‘lower consequence’ taxpayer, the lowest
rating by the Australian Tax Office
 Fully compliant with Australian and international tax law
 No entities located in tax havens
 No artificial transfer pricing to shift profits overseas
TAX
•
The Transurban Group is subject to taxes in Australia and the USA.
•
THL and TIL are taxpayers liable to pay tax.
•
THT operates as a flow-through trust and is not a taxpayer so not liable to pay tax itself. Instead, security holders pay tax on the distributions they receive from
THT.
1
1.
•
Trust income/losses not included in tax payable
calculation
•
Equity accounted results relate to profit from
investments in M5 and M7
•
Tax rate differential: Relates to US tax rate of 39%
applicable to US entities
•
Non-deductible stamp duty: relates to stamp duty paid
on the AirportlinkM7 acquisition
Extract from 30 June 2016 financial statements – note B7.
47
TAX GROUPS
TCL SECURITY HOLDERS
FRANKED DIVIDENDS
TRUST DISTRIBUTIONS
THL
THT
TIL
THL TAX
GROUP
CityLink
Melbourne Limited
CityLink Trust
Hills Motorway
Limited
Hills Motorway
Trust
LCT MRE Pty
Limited
LCT Trust
CCT Pty Ltd
CCT Trust
Citylink
CCT
M2
LCT
FRANKED
DIVIDENDS
INTEREST ON
LOAN NOTES
TRUST
DISTRIBUTIONS
Interlink Roads
Pty Limited
Transurban
Queensland
Holdings Pty Ltd
Transurban
Queensland
Invest Trust
M5
(50%)
TQ
(62.5%)
INTEREST
ON SLNs
NorthWestern
Roads Group
Pty Ltd
NorthWestern
Roads Group
Trust
NWRG
(50%)
TRUST
DISTRIBUTIONS
Airport
Motorway
Limited
Airport
Motorway Trust
M1 EASTERN DISTRIBUTOR
(75.1%)
DIVIDENDS1 (WITH
FOREIGN TAX
CREDITS)
DRIVeUS TAX
Group
DRIVe
Transurban
Express Lanes
(100%)
1. Potential dividends with some foreign tax credits in the long term.
48
INTANGIBLE ASSETS
Transurban’s operating assets are primarily long-life intangible assets (concession
1
assets), as well as assets under construction and goodwill resulting from business
combinations.
Concession assets:
•
Represent the Group’s right to operate roads under Concession agreements.
Valued at either:
o Construction value
o Purchase price (for concessions purchased as an asset acquisition)
o Fair value (for concessions purchased as part of a business combination –
such as Transurban Queensland)
•
Amortised on a straight line basis over the term of the concession agreement.
Assets under construction:
•
The costs of construction or upgrade works that are not yet complete
•
Excludes construction of NorthConnex which is accounted for in equity accounted
investments.
1.
Extract from 30 June 2016 financial statements – note B16.
49
MAINTENANCE PROVISION
1
•
Maintenance provision represents the discounted estimated cost of maintaining and
repairing the concession assets representing one full cycle of each assets
replacement
•
Concession deeds state that the roads are to be maintained to an acceptable
standard and must in the condition set out in the deed on handback
•
Estimated cost is recorded at present value, based on engineer’s assessment of
required future works
•
Additions to provision each year based on annual assessment and wear and tear on
the roadway
•
Maintenance of the assets operates in cycles, with the maintenance provision only
representative of the current cycle
Cycle 2
Cycle 1
Provision build up
Cash outflow
•
Total provision $920m at 30 June 2016
•
Recurring (regular) maintenance costs expensed to the P&L
P&L expense
during the year including O&M management and costs such
as land care management, wall washing and inspections
Year 0
1.
Year 5
Year 10
Extract from 30 June 2016 financial statements – note B17.
•
Unwinding of discount relates to net present value calculation.
Shown as a finance cost in the P&L.
50
SECURITY STRUCTURE
CORPORATE DEBT
ASSETS
•
Secured against CityLink and distributions from other assets
•
All senior secured lenders/noteholders rank pari passu
•
Transurban
Holdings Limited
Stapled Security
Transurban
Holdings Trust
Transurban
International Limited
(Guarantor & Security
Provider)
(Guarantor & Security
Provider)
(Guarantor & Security
Provider)
Funded by Non-Recourse Debt1
Hills M2 (100%)
Lane Cove Tunnel (100%)
Cross City Tunnel (100%)
Transurban Limited
Eastern Distributor (75.1%)
(Guarantor & Security
Provider)
Westlink M7 (50%)
Transurban
Finance Company
(Issuer & Security
Provider)
Transurban
Finance Trust
M5 Motorway (50%)
(Security Provider)
2
Transurban Queensland (62.5%)
CityLink
(100%)
Corporate Security
Trust
495 Express Lanes (100%)
Equity distributions
95 Express Lanes (100%)
1. Percentages represent Transurban’s ownership interest.
2. Transurban Queensland includes AirportlinkM7
51
FUNDING STRUCTURE AT 30 JUNE 2016
Transurban
Bank Debt1
Capital Markets
Debt1
Government Debt1
Non-Recourse
NSW
M5
A$0.7B
M2
A$0.8B
M7
A$1.3B
ED
AMTN
A$0.3B
ED
A$0.2B
Corporate Debt
QLD
GWA
CCT
A$0.3B
AMTN
A$0.5B
LCT
Term Debt
A$0.2B
USPP
US$0.6B
A$0.1B
PABs
US$0.2B
PABs
US$0.2B
EMTN
€1.6B
LCT
A$0.2B
A$ PP
A$0.2B
TIFIA
US$0.7B
TIFIA
US$0.3B
Maple
C$0.3B
495 Express Lanes
95 Express Lanes
AMTN
A$0.3B
EMTN
CHF$0.2B
USPP
US$0.9B
A$0.1B
TQ
A$1.4B
144A
US$0.6B
Airportlink
M7
A$1.0B
1.
2.
Capital Markets
Debt facilities including undrawn available facilities, in the base currency of debt before hedging.
Corporate working capital facilities are bilateral facilities and can be drawn in AUD and/or USD
Bank Debt
Working
Capital2
A$1.0B
SHAREHOLDER LOAN NOTES
•
•
Shareholder loan notes (SLN) are used by Transurban as a form of investor funding.
The Group has notes in relation to: North Western Roads Group (NWRG) and Transurban Queensland (TQ).
NWRG shareholder loan notes:
1.
•
The NWRG issue SLNs to Transurban and other consortium
partners to facilitate funding of the NorthConnex project. Funds
provided by Transurban are receivable from the NWRG once
NorthConnex operations commences
•
The SLN receivable by Transurban is recorded as a non-current
asset (held-to-maturity investment) on the Group balance sheet
•
NWRG is an equity accounted investment
1
Extract from 30 June 2016 financial statements – consolidated balance sheet.
53
FREE CASH CALCULATION
FREE CASH CALCULATION
SOURCE OF INFORMATION/EXPLANATION
Cash flows from operating activities
(refer Group Statutory accounts)
Statutory Transurban Holdings Limited operating cash flow (includes cash inflow from M5 TNLs).
Add back transaction and integration costs
related to acquisitions (non-100% owned
entities)
Transaction and integration related cash payments incurred on the acquisition of AirportlinkM7 and QM in pcp.
Add back payments for maintenance of
intangible assets
For statutory purposes payments for maintenance are classified as operating activities. For the calculation of free cash Transurban removes these
payments and replaces them with increases or decreases to the maintenance provision recognised in the Statement of Comprehensive Income
(refer below). This provides a smoother representation of maintenance spend and reflects the incurrence of the damage through the facilities use.
Less cash flow from operating activities from
consolidated non-100% owned entities
100% of the operating cash flows of ED and TQ are included in the statutory results however the distribution received by Transurban from these
entities better reflects the cash available for distribution to Transurban security holders. The cash flows from operating activities are therefore
eliminated and, where applicable, replaced with distributions received.
Less allowance for maintenance of intangible
assets for 100% owned assets
Expenditure for maintenance of intangible assets is provided for over the period of the facilities use. The annual charge to recognise this provision
reflects the yearly damage to the facility requiring maintenance. Also includes allowance for expenditure on electronic tags within
100% owned tolling businesses.
Adjust for distributions and interest
received from non-100% owned entities
ED distribution
Cash distribution received from ED by Transurban.
M5 distribution and TLN interest
Cash distribution received from M5 by Transurban and interest received on Transurban's long term loan to M5 (represents a portion of Transurban's
ownership interest).
TQ distribution and shareholder loan note
interest
Cash distribution received from TQ by Transurban and interest received on Transurban’s long term loan to TQ (represents a portion of
Transurban’s ownership interest).
NWRG distribution
Distributions received from the NWRG equity accounted investment.
Free cash
54
DISTRIBUTIONS - FUNDS FLOW
TCL SECURITY HOLDERS
TRUST DISTRIBUTIONS
FRANKED DIVIDENDS
THL
TIL
THT
TRUST
DISTRIBUTIONS
THL TAX
GROUP
CityLink
Melbourne Ltd
CityLink
Trust
Hills
Motorway Ltd
Hills
Motorway
Trust
LCT MRE Pty
Ltd
LCT Trust
CCT Pty Ltd
CCT Trust
CityLink
CCT
M2
LCT
(100%)
FRANKED
DIVIDENDS
Interlink Roads
Pty Ltd
M5
(50%)
INTEREST ON
TRUST
LOAN NOTES DISTRIBUTIONS
Transurban
Queensland
Holdings
No.1 Pty Ltd
Transurban
Queensland
Invest Trust
TRANSURBAN
QUEENSLAND
(62.5%)
TRUST
DISTRIBUTIONS
NWRG Pty
Ltd
NWRG
Trust
WESTLINK M7
(50%)
NORTHCONNEX
(50%)
TRUST
DISTRIBUTIONS
Airport
Motorway
Ltd
Airport
Motorway
Trust
M1 EASTERN DISTRIBUTOR
(75.1%)
DIVIDENDS
(WITH FOREIGN
TAX CREDITS)
DRIVeUS TAX
Group
DRIVe
Transurban
Express
Lanes
55
CONSTRUCTION REVENUE AND COSTS
Definition:
Recognition:
•
•
Revenue for/costs relating to the construction of service concession
assets.
•
The construction of service concession assets is managed by
date as a percentage of total forecast costs for each project).
•
Transurban, however the Group does not own the assets (as they
must be handed over to the Government in future).
•
Instead, Transurban receives the right to collect revenue from the
Whilst in progress: percentage of completion method (costs incurred to
The amount recognised each year is dependant on the number of
development projects being undertaken.
•
Construction revenue and costs recognised at $0 margin (offset on
P&L)
operation of the asset. This is why the motorways are recognised as
intangible assets and not property, plant and equipment.
56
GLOSSARY
GLOSSARY
TERM
ACCC
ADT
DEFINITION
Australian Competition and Consumer Commission
AMTN
Australian Medium Term Note
ATTENDANCE MODEL
Incident response focused on the rapid arrival to incidents to quickly make safe incident scenes.
Australian Dollars
AUD
Average Daily Traffic. ADT is calculated by dividing the total number of trips on each asset (transactions on CityLink) by the number of days in the period.
AWE
CAD
Average Weekly Earnings
CAV
Connected and Autonomous Vehicles
Cross City Tunnel
CCT
Canadian Dollars
CHF
CPI
Swiss Franc
CPS
CTW
Cents per Security
CityLink Tulla Widening
D&A
Depreciation and Amortisation
D&C
DRIVe
Design and Construct
DRP
Distribution Reinvestment Plan
Earnings Before Interest, Tax, Depreciation and Amortisation
EBITDA
Consumer Price Index. Refers to Australian CPI unless otherwise stated.
Direct Road Investment Vehicle. Transurban entity that holds an interest in the 495 and 95 Express Lanes.
ED
EMTN
Eastern Distributor
EUR
Euros
Euro Medium Term Note
GLOSSARY
TERM
FFO
FTSE
FMS
FREE CASH
DEFINITION
Funds From Operations
Financial Times Stock Exchange
Freeway Management System
FY
FX
GLIDe
GPS
GWA
HCV
HOT
HOV
ICB
Free cash is calculated as statutory cash flows from operating activities from 100% owned subsidiaries plus distributions and interest received from non-100%
owned subsidiaries, adjusted to include the allowance for maintenance of intangible assets and excludes cash payments for maintenance of intangible assets.
Financial year 1 July to 30 June.
Foreign Exchange
Tolling back office system.
Global Positioning System
Greater Washington Area
Heavy Commercial Vehicle
High Occupancy Toll
High Occupancy Vehicle
Inner City Bypass
INTEROPERABILITY CHARGES
LCT
LCV
M2
M5
M7
MFU
Toll road operators agree on charges for when one operator’s tag uses another operator's asset. These charges are not passed on to the customer.
Lane Cove Tunnel
Light Commercial Vehicle
Hills M2
M5 South West Motorway
Westlink M7
Monash Freeway Upgrade
GLOSSARY
TERM
MWH
NCX
N.M.
NOK
NPAT and NPBT
NWRG
O&M
OTHER REVENUE
PAB
PCP
PROP/PROPORTIONAL
RESULTS
DEFINITION
Megawatt Hour
NorthConnex
Not Meaningful
Norwegian Krone
Net Profit After Tax and Net Profit Before Tax
NorthWestern Roads Group
Operations and Maintenance
Other revenue includes interoperability charges, development and construction performance fees.
Private Activity Bond
Prior Corresponding Period
The proportional results are the aggregation of the results from each asset multiplied by Transurban’s percentage ownership as well as the
contribution from central group functions. Proportional EBITDA is one of the primary measures used to assess the operating performance of
Transurban, with an aim to maintain a focus on operating results and associated cash generation.
The EBITDA calculation from the statutory accounts does not include the EBITDA contribution of the M5 or M7 and includes the non-controlling
interests in TQ and ED.
QM
RFP
RFT
RICI
Queensland Motorways. Post acquisition, Queensland Motorways was renamed Transurban Queensland.
Request for Proposal
Request for Tender
Road Injury Crash Index. Serious road injury (an individual transported from, or receives medical treatment, at scene) crashes per 100 million vehicle
kilometres travelled.
M7 tolling brand.
Standard and Poor’s
ROAM
S&P
GLOSSARY
TERM
DEFINITION
SAFE CLEARANCE MODEL
Incident response focused on the rapid arrival and clearance of incidents to quickly and safely reopen all lanes of the road.
SIGNIFICANT ITEMS
Significant items include stamp duty, integration costs and transaction costs.
SERVICE AND FEE REVENUE
Service and fee revenue includes customer administration charges and enforcement recoveries.
SLN
Shareholder Loan Note. An interest bearing shareholder loan. Currently Transurban has SLNs on TQ.
TIFIA
Transportation Infrastructure Finance and Innovation Act
TOLL REVENUE
Toll revenue includes revenue from customers, specifically tolls, service and fee revenue.
TLN
Term Loan Note. An interest bearing shareholder loan. Currently Transurban has TLNs in place on NWRG and M5.
TQ
Transurban Queensland. Name change post acquisition of Queensland Motorways (QM). Transurban has a 62.5% interest in TQ.
U.S – CHANGES IN OWNERSHIP
IN THE US BUSINESS
USD
USPP
VDOT
WD
WGEA
WEIGHTED AVERAGE
COST OF DEBT
On June 29 2015, Transurban acquired the remaining equity interest in DRIVe. This acquisition increases Transurban’s equity interest to 100%
on both the 95 Express Lanes and 495 Express Lanes from 77.5% and 94% respectively. Changes to the US business refers to this change,
unless stated.
US Dollars
US Private Placement
Virginia Department of Transportation
Western Distributor Project
Workplace Gender Equality Agency
Calculated using proportional debt.
WEIGHTED AVERAGE MATURITY Calculated based on weighted average maturity of total group debt facility.