Transurban Group Ltd. · ASX:TCL
Transurban — FY2007 Earnings Presentation
34 slides from Transurban's earnings presentation, September 2007
Slide 1: Consistent value creation - FY07 Results
Consistent value creation FY07 Results September 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 • Ownership and management of North American toll roads – Pocahontas Parkway • North American Development of Exclusive Opportunities – Capital Beltway – I-95 – Short l
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: Highlights
Highlights • Tulla Calder interchange completed and tracking to forecast • Opened additional lanes on Hills M2 • Completed SRG acquisition and delisted the company • Refinanced $600m of bank and SRG debt • TIFIA funding closed for Richmond Airport Connector • North American co-investment vehicle est
Slide 8: Financials
transurban Financials Slide 8
Slide 9: 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 10: 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 11: Capital Management
transurban Capital Management
Slide 12: 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 A- Weighted average maturity 7.61 yrs Weighted Average Cost of Debt (including fees) 6.57% Gearing (debt to enterprise value) 40% Interest Cover
Slide 13: 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 13
Slide 14: Australian asset update
Australian asset update Slide 14
Slide 15: 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 15
Slide 16: 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 16
Slide 17: 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 17
Slide 18: 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 18
Slide 19: Sydney Roads Group
transurban Sydney Roads Group
Slide 20: 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 20
Slide 21: Sydney Orbital Network
Sydney Orbital Network Slide 21
Slide 22: 2006 Sydney Network congestion (AM Peak)
2006 Sydney Network congestion (AM Peak) Slide 22
Slide 23: 2021 Sydney Network congestion (AM Peak)
2021 Sydney Network congestion (AM Peak) Slide 23
Slide 24: 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 24
Slide 25: North America
North America 17.02.06 Slide 25
Slide 26: 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 26
Slide 27: Pocahontas
Pocahontas FY07 • Traffic 3.1% • Revenue 8.7% News • TIFIA funding for Richmond Airport Connector • New developments announced for corridor Slide 27
Slide 28: 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 29: 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 29
Slide 30: 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 30 Full details in TCL ASX release – 22 August 2007
Slide 31: The Group is financially well positioned
• The Group is financially well positioned • Australian business is performing well • North American business is gaining momentum Slide 31
Slide 32: Slide 32
17.02.06 Slide 32
Slide 33: 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 34: 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 34