#1QUEENSLAND AND QTC Daintree River Bends, The Daintree Rainforest Queensland 30 June 2023 edition AUDAX AT FIDELIS QUEENSLAND TREASURY CORPORATION#2LEGAL NOTICE This document and the information herein (the 'Information') is distributed by Queensland Treasury Corporation (QTC) as an information source only. The Information should not be construed as an offer, recommendation, invitation, or inducement, to subscribe for or purchase any security of QTC. The Information does not constitute, and is not intended to be, financial or other advice and is not to be relied upon as the basis for any investment or other decision. Investors should seek their own professional advice tailored to their own particular financial circumstances in relation to any investment they may consider making. QTC expressly excludes any warranties concerning the currency, accuracy, completeness, availability or suitability of the Information. 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In addition, in the United Kingdom, this information is addressed to and directly only at qualified investors who (i) are persons who have professional experience in matters relating to investments and who fall within the definition of 'investment professionals' as defined in Article 19(5) of the Financial Services and Markets 2000 (Financial Promotion) Order 2005 (the FPO); (ii) are persons falling within Article 49(2)(a) to (d) (high net worth companies, unincorporated associations etc) of the FPO and (iii) are other persons to whom they may otherwise lawfully be communicated. All such persons together being referred to as 'Relevant Persons'. Furthermore, the Information is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Any person who is not a Relevant Person should not act or rely on this information. United States: Save for QTC's US MTN program, the securities, borrowing programs and facilities described in this document have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered, sold or resold within the United States or to 'US Persons' (as defined in Regulation S under the Securities Act) unless in accordance with an effective registration statement or an exemption from registration under the Securities Act. The Information is intended only for (i) persons resident or located outside the United States and (ii) persons resident or located in the United States that are 'qualified institutional buyers' (QIBS) within the meaning of Rule 144A under the Securities Act, and may not be accessed by or provided to persons resident or located in the United States who are not QIBS. Europe: The Information is intended only for persons in member states of the European Economic Area who are 'Qualified Investors' within the meaning of Article 2(e) of Regulation (EU) 2017/1129, as amended. Japan: The Information is intended only for (i) persons resident or located outside Japan and (ii) persons resident or located in Japan that are 'qualified institutional investors' (tekikaku-kikan-toshika) (QII) as defined in Article 2 Paragraph 3 Item 1 of the Financial Instruments and Exchange Act of Japan (act No.25 of 1948, as amended) and may not be accessed by or provided to persons resident or located in Japan who are not Qlls. QTC 2#3Queensland Treasury Corporation (QTC) QTC is committed to protecting and advancing the financial interests of Queensland QTC is the central financing authority for the Queensland Government and provides financial resources and services for the State. With a statutory role to advance the financial interests and development of the State, QTC works in partnership with Queensland Treasury and its clients to: ■ deliver sustainable and cost-effective borrowings for its clients - managing the State's funding program in global capital markets, ■ advance the financial interest and development of Queensland - partnering to solve complex commercial, policy and economic issues, and protect Queensland's financial interests and delivering better financial outcomes - helping identify opportunities for clients to minimise costs and risks, working closely with them on their balance sheet management and centralising the management of borrowings, cash investments and foreign exchange. All data and charts in this book are as dated. Forecasts and projections: ■ 2022-23 is actual as at 30 June 2023 ■ Queensland Government fiscal forecasts refer to 2023-24 Queensland Government fiscal projections refer to 2024-25 to 2026-27 Queensland Government economic forecasts refer to 2022-23 to 2024-25 Queensland Government economic projections refer to 2025-26 and 2026-27 30 June 2023 edition QTC 3#4Contents QUEENSLAND Overview Queensland's Economic Standing Queensland's Labour Market Economic Drivers Queensland's Fiscal Position Queensland's Commitment to ESG Summary Of Key Points QUEENSLAND TREASURY CORPORATION Overview Credit Ratings Funding QTC's Borrowing Program Summary Of Key Points APPENDICES QTC's Funding Instruments 5 6 7 8 9 13 19 22 24 25 26 30 35 37 38 46 QTC 4#5Whitehaven Beach, Queensland QUEENSLAND AUDAX AT FIDELIS, QUEENSLAND TREASURY CORPORATION#6WESTERN AUSTRALIA Perth Darwin NORTHERN TERRITORY SOUTH AUSTRALIA Cairns Townsville Mount Isa Gladstone. QUEENSLAND Adelaide Brisbane Gold Coast. QUEENSLAND ■ AUD447 billion Gross State Product (GSP) 1 ■ 3.7% real GSP annual growth rate² ■ 5.4 million people³ ■Rated AA+/Aa1 NEW SOUTH WALES Sydney ACT Canberra VICTORIA Melbourne TASMANIA AUSTRALIA ■ AUD2,308 billion Gross Domestic Product (GDP)1 ■2.9% real GDP annual growth rate² 26.3 million people³ Rated AAA by all major rating agencies Hobart Data sources: Australian Bureau of Statistics, Bloomberg. 1 Fiscal year 2022 2 Long-run trend 3 As at 31 December 2022 Ratings: Queensland and QTC are rated AA+/A-1+/Stable by S&P Global and Aa1/P-1/Stable by Moody's. Australia is rated AAA/Stable by S&P Global and Aaa/Stable by Moody's. As at 30 June 2022. QTC 9#7-2.0 2008-09 2009-10 -1.0 2010-11 2011-12 1 Chain volume measure (CVM), 2020-21 reference year. ^ Shaded areas represent forecasts. Data sources: ABS National Accounts, Australian Treasury and Queensland Government 2023-24 Budgets. 2012-13 ANNUAL PER CENT CHANGE 6.0 7.0 LNG INVESTMENT Queensland's economic growth is expected to remain solid יוןויוןון GFC AND NATURAL DISASTERS LNG EXPORT RAMP-UP COVID-19 PANDEMIC 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23^ 2023-24^ 2024-25^ 2025-26^ QTC 7 2026-27^ ECONOMIC GROWTH, QUEENSLAND#8THOUSANDS OF PERSONS 2,400 2,500 2,600 2,700 2,800 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Data source: ABS, Queensland Government 2023-24 Budget. Mar-19 2,900 Jun-19 Sep-19 3,000 Employment growth back to pre-pandemic trend, unemployment rate to remain low Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Dec-20 Mar-21 Mar-21 Jun-21 Jun-21 EMPLOYMENT - ACTUAL (LHS) UNEMPLOYMENT RATE - ACTUAL (RHS) Sep-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 -- doo Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 QUEENSLAND'S LABOUR MARKET Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 EMPLOYMENT - FORECAST (LHS) UNEMPLOYMENT RATE - FORECAST (RHS) Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Dec-26 Mar-27 QTC 8 Jun-27 3 4 5 0 7 PERCENT 8 9#9PERCENT Diverse and resilient economy - industry split of output similar to Australia 100 ŏg 70 80 90 60 50 40 30 20 10 0 AUSTRALIA QUEENSLAND AUSTRALIAN STATES' ECONOMIC OUTPUT BY SECTOR¹ WESTERN AUSTRALIA NEW SOUTH WALES VICTORIA WHOLESALE AND RETAIL TRADE TRANSPORT AND COMMUNICATIONS PUBLIC SECTOR AND UTILITIES*** OTHER** NATURAL RESOURCES* MANUFACTURING HEALTHCARE AND SOCIAL ASSISTANCE FINANCE AND PROPERTY SERVICES EDUCATION AND TRAINING CONSTRUCTION AGRICULTURE 12021-22, gross value added, current prices. *Natural resources includes the extraction of naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. ** Other includes: dwellings; professional, scientific and technical services, accommodation and food services; other services; administrative and support services; arts and recreation. *** Public sector and utilities includes: public administration and safety; and electricity, gas, water, waste services. Data source: ABS. QTC 9#10AUD MILLION Higher commodity prices have seen a sharp increase in the value of Queensland's commodity exports 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2014-15 2015-16 QUEENSLAND'S TOTAL OVERSEAS EXPORTS1 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23^ 2023-24 2024-25 2025-26 2026-27^ ■THERMAL COAL ■METALS ■LNG AGRICULTURE OTHER GOODS ■SERVICES ■METALLURGICAL COAL 1 Nominal terms. Shaded areas represent forecasts. Data sources: ABS, Queensland Treasury. QTC 10#11More than three-quarters of goods exports go to the fast-growing Asian region QUEENSLAND'S GOODS EXPORTS BY COUNTRY1 1 Share of total value of goods exports, per cent. Data sources: ABS unpublished trade data for 2021-22, Queensland Treasury. Country JAPAN (18.2%) INDIA (17.0%) SOUTH KOREA (15.0%) CHINA (14.0%) VIETNAM (4.7%) ■TAIWAN (4.5%) NETHERLANDS (3.2%) ■MALAYSIA (2.6%) INDONESIA (2.5%) UNITED STATES OF AMERICA (2.2%) OTHER (16.1%) QTC 11#12Queensland has its own taxation powers and receives federal fiscal support The states' sources of revenue ■ Australian states and territories (states) impose taxes, duties and charges in areas distinct from those where the Australian Government has authority. Examples of state taxes include payroll taxes, royalties, stamp duties and land taxes. ■The Australian Government provides explicit and predictable financial support to all states in the form of: General purpose payments - 'untied' grants which are funded by the Goods and Services Tax (GST) revenue and are used for both recurrent and capital purposes. Payments for specific purposes - 'tied' grants to fund specific projects or programs in order to support service delivery and facilitate reforms. The Australian Government's Disaster Recovery Funding Arrangements, which provide partial (up to 75 per cent) reimbursement for eligible costs incurred as a result of natural disasters, are also classified as a payment for specific purposes. See Appendices for more information on tax sharing arrangements. QTC 12#13Queensland has a diversified revenue mix BUDGETED REVENUES 2023-24: AUD82.1 BILLION ■TAXATION REVENUE *(26.7%) BUDGETED TAXATION REVENUES 2023-24: AUD21.9 BILLION SALES OF GOODS AND SERVICES (8.4%) ROYALTIES AND LAND RENTS (8.9%) OTHER REVENUE (1.9%) INTEREST INCOME (3.9%) ■GRANTS INCL FROM AUST GOVT # (48.3%) ■DUTIES (34.8%) PAYROLL TAX (29.7%) MOTOR VEHICLE REGISTRATION (10.5%) LAND TAX (9.3%) GAMBLING TAXES AND LEVIES (9.2%) OTHER TAXES (6.5%) ■DIVIDEND AND TAX EQUIVALENT REVENUE (1.9%) * This comprises the taxes and levies listed in the budgeted taxation revenues chart. #Grants from the Australian Government are almost evenly split between general and specific purpose payments. General purpose payments include GST revenue grants, are 'untied' and used for both recurrent and capital purposes. Specific purpose payments are 'tied' and used to fund specific projects or programs in order to support service delivery and facilitate reforms. Data source: Queensland Government 2023-24 Budget. QTC 13#14Higher commodity prices have prevailed through 2022-23 but are expected to moderate in 2023-24 PERCENTAGE POINT CONTRIBUTION 40.0 30.0 20.0 10.0 0.0 -10.0 -20.0 GROWTH IN KEY REVENUES -30.0 2018-19 2019-20 2020-21 2021-22 2022-23^ 2023-24^ 2024-25^ 2025-26^ 2026-27^ GST ROYALTIES TAXES 1 Annual contribution to growth in key revenues. Total is the annual growth of the sum of the three categories. ^ Shaded areas represent forecasts. Data source: Queensland Government 2023-24 Budget. TOTAL QTC 14#15Health and education are the State's major operating expenses, while transport infrastructure is the biggest area of focus in terms of capital expenditure GGS1 BUDGETED OPERATING EXPENDITURE: 2023-24: AUD84.3 BILLION NFPS² BUDGETED CAPITAL EXPENDITURE: 2023-24: AUD15.2 BILLION HEALTH (28.8%) EDUCATION (23.5%) ECONOMIC AND OTHER SERVICES* (15.3%) ■TRANSPORT (11.2%) SOCIAL WELFARE, HOUSING AND OTHER COMMUNITY SERVICES (12.2%) ■PUBLIC ORDER AND SAFETY (9.0%) TRANSPORT (30.4%) ECONOMIC AND OTHER SERVICES (31.8%)* EDUCATION (9.8%) HEALTH (9.9%) SOCIAL WELFARE, HOUSING AND OTHER COMMUNITY SERVICES (10.2%) PUBLIC ORDER AND SAFETY (8.0%) 1 GGS - general government sector. 2 NFPS - non-financial public sector. * Mainly includes expenditures on economic services and those not classified elsewhere. NFPS capital expenditure includes expenditure in the Energy sector; ie, Queensland Energy and Jobs Plan capital expenditure. Data source: Queensland Government 2023-24 Budget. QTC 15#16Data source: Queensland Government 2023-24 Budget. 0 AUD MILLION 5,000 2013-14 EDUCATION 10,000 2014-15 15,000 2015-16 20,000 2016-17 PUBLIC ORDER AND SAFETY 25,000 2017-18 The State will undertake a large capital program over the coming years 2018-19 2019-20 2020-21 "Economic and Other Services' includes capital spending related to the Queensland Energy and Jobs Plan. Note, this chart shows purchases of non-financial assets for the Non-financial Public Sector. It does not include capital grants or leases. ^ Shaded areas represent forecasts. 2021-22 SOCIAL WELFARE, HOUSING AND OTHER COMMUNITY SERVICES ■ ECONOMIC AND OTHER SERVICES* 2022-23^ NON-FINANCIAL PUBLIC SECTOR CAPITAL SPENDING 2023-24^ HEALTH TRANSPORT 2024-25^ 2025-26^ QTC 16 2026-27^#17AUD MILLION -10,000 -15,000 -5,000 0 15,000 10,000 5,000 2001-02 2002-03 2003-04 2004-05 2005-06 Dotted lines represent forecasts. Data source: Queensland Government 2023-24 Budget. 2006-07 2007-08 General government sector operating and fiscal balances have improved 2008-09 NET OPERATING BALANCE (FORECAST) NET OPERATING BALANCE (ACTUAL) 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 GENERAL GOVERNMENT SECTOR NET OPERATING AND FISCAL BALANCES 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 FISCAL BALANCE (FORECAST) FISCAL BALANCE (ACTUAL) 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 QTC 17#18-50 2015-16 PERCENT (%) 0 50 50 2016-17 100 2017-18 Dotted lines represent forecasts. Data source: 2023-24 Budget: QLD, WA, VIC, SA and 2023 Pre-election Budget Update: NSW. 150 2018-19 200 2019-20 Queensland's debt levels relative to revenue are expected to remain below other jurisdictions over the forward estimates 2020-21 NEW SOUTH WALES VICTORIA QUEENSLAND -WESTERN AUSTRALIA 2021-22 2022-23 GENERAL GOVERNMENT NET DEBT TO REVENUE RATIOS1 2023-24 2024-25 2025-26 2026-27 SOUTH AUSTRALIA QTC 18#19Queensland's sustainability policy initiatives for economic growth and development The Queensland Government has embedded sustainability considerations into policy and budget settings to promote sustainable economic growth and development for better communities now and into the future. The state is advancing its sustainability priorities by leveraging its economic strengths and competitive advantages to drive a growing, innovative economy and job creation. Achievement of these priorities are at the centre of the state's ESG credentials, one of the enablers of the state's economic strategy. More jobs in more industries Participation in the economy and community PRIORITIES 01 Better services Improve the lives of Queenslanders (Health and Education) Protecting Queenslanders' lifestyle Supporting the State's growing population (Equitable access to services and opportunities) 111 احمد بهم Climate change (Transition and Physical) Natural capital $ % Economic and Fiscal performance QTC 19#20Queensland's commitment to positive Environmental, Social and Governance (ESG) outcomes The Queensland Government is identifying and mitigating potential sustainability risks, including through proactive actions and investments to enhance Queensland's ESG standards. ■ The State has identified several material sustainability risks and is proactively implementing policy initiatives to manage them. ESG Factor Climate change Natural Capital Social Governance (economic and fiscal) Policy initiatives taken to: transition to a low carbon future by lowering greenhouse gas emissions address the physical impacts arising from climate change by embedding adaptation and resilience ■ manage the balance of resources used between industry, the community and safeguarding the natural environment ■includes surface and underground water management, biosecurity, aquaculture, forestry management and environmental protection. support an educated, healthy and skilled community ■ includes education, health services, social welfare, public order, diversity and opportunity, cyber security and safety provide robust frameworks that support Ministers and accountable officers to provide oversight and discharge their obligations strong economic and fiscal management is fundamental to achieving government's objectives and good governance ESG The 2022 Queensland Sustainability Report sets out how the government has established its priorities for and approach to managing sustainability risks. The report provides information on key policies being implemented and reports against performance measures. Scan for the 2022 QSR Report QTC 20#21Queensland's action on climate change The Queensland Government has set targets for reducing emissions while creating jobs. Emissions targets ■ 30% emissions reduction below 2005 levels by 2030 ■Zero net emissions by 2050 Renewable energy targets 50%¹ by 2030 ■70%¹ by 2032 80%¹ by 2035 The Queensland Energy and Jobs Plan released in September 2022 outlines how Queensland plans to transform its energy system over time to include more wind, solar and storage to deliver clean, reliable and affordable energy to provide power for generations. The Queensland Climate Action Plan 2030 outlines the State's investments and actions to reach its emissions and renewables targets, create jobs and drive economic growth. The trajectory towards the 2030 targets builds on the investments and actions already taken, with priorities identified in key sectors including electricity, transport, agriculture, buildings and land. 1 For the purposes of measuring performance against this target, the Queensland Government currently reports a measure of renewable energy generation in Queensland as a proportion of electricity consumption within Queensland (excluding exports). le, An estimate of the proportion of electricity consumed in Queensland that is generated from renewable sources. QTC 21#22Summary of key points The State of Queensland has: ■ a diverse and resilient economy transparent and well-established fiscal arrangements with the Australian Government ■ State-owned assets that generate dividend payments ■ a unique position with financial holdings greater than its defined benefit superannuation and other long term obligations ■ General Government debt levels relative to revenue that are less than other large states ■ a commitment to positive ESG outcomes, and ■ a rating of AA+/Stable/A-1+ by S&P Global and Aa1/Stable/P-1 by Moody's. See Appendices for more information on tax sharing arrangements and ratings. QTC 22#23THIS PAGE IS INTENTIONALLY LEFT BLANK QTC 23 23#24Glass House Mountains, Sunshine Coast, Queensland Queensland Treasury Corporation AUDAX AT FIDELIS, QUEENSLAND TREASURY CORPORATION#25QTC is government-owned and its debt is government guaranteed QTC is the central financing authority for the Queensland Government and provides financial resources and services for the State TREASURER OF QUEENSLAND Elected Official GOVERNMENT GUARANTEE QUEENSLAND TREASURY Under Treasurer (Chief Executive) Queensland Treasury's role is to: provide core economic and fiscal advice to the State Government of Queensland ■ assist Government with the management of its finances prepare an annual State Budget collect and administer State revenue, and ■ conduct economic and statistical research. QUEENSLAND TREASURY CORPORATION State's Central Financing Authority Queensland Treasury Corporation's role is to: ■deliver sustainable and cost-effective borrowings for our clients ■ advance the financial interests and development of Queensland ■protect Queensland's financial interest and deliver better financial outcomes provide public sector financial education and economic and market research, and ■ facilitate FX hedging and international payments. Queensland State Government Guarantee The Treasurer of Queensland, on behalf of the Queensland State Government, guarantees: ■all of QTC's obligations under all debt securities issued by QTC, and ■ QTC's payment obligations to counterparties under derivative transactions governed by ISDA agreements. QTC 25 25#26QTC is rated AA+/Aal Credit ratings QTC carries the same credit ratings as the State of Queensland - founded on its wealthy and diverse economic base, established institutional framework, significant liquidity levels and Federal fiscal support. Queensland has financial holdings greater than its superannuation obligations. LOCAL CURRENCY S&P Global Long-term AA+ Short-term A-1+ Moody's Long-term Aa1 Short-term P-1 Outlook Stable Outlook Stable As at 30 June 2023. FOREIGN CURRENCY S&P Global Long-term AA+ Short-term A-1+ Outlook Stable Moody's Long-term Aa1 Short-term P-1 Outlook Stable QTC 26#27Consolidated asset base Clients O Principally Queensland's public sector (also entities guaranteed, supported or approved by the State). ■ 128 borrowing clients (government- owned corporations, government departments, local governments and statutory bodies). ■207 investors in QTC's Capital Guaranteed Cash Fund (government- owned corporations, government departments, local governments and statutory bodies). As the State's central financing authority, QTC only charges for services on a cost recovery basis. MARKET VALUE - AS AT 30 JUNE 2023 State Capital markets operations investment operations# QTC consolidated AUD bn AUD bn AUD bn Loan to clients 91.4 91.4 Liquidity/management reserves* 28.0 28.0 Sub-total 119.4 119.4 Assets under 10.3 10.3 management-client deposits Other managed investments# Total 43.4 43.4 129.7 43.4 173.1 As at 30 June 2023 (unaudited). *Excludes any QTC bonds held as assets. *The Queensland Government transferred to QTC the States' long-term assets which are held to meet the future superannuation and other long-term obligations of the State. These assets are managed by QIC Limited. QTC 27#28Since 1988, QTC has funded the State's public sector programs LOANS TO CLIENTS1 (MARKET VALUE) AUD 91.4 BILLION QUEENSLAND TREASURY DEPARTMENT (AUD 39.9 BILLION) GOVERNMENT OWNED CORPORATIONS (AUD 27.9 BILLION) STATUTORY BODIES² (AUD 17.2 BILLION) LOCAL GOVERNMENT ENTITIES (AUD 5.9 BILLION) OTHER ENTITIES (AUD 0.2 BILLION) QUEENSLAND GOVERNMENT DEPARTMENTS3 (AUD 0.3 BILLION) As at 30 June 2023 (unaudited). 1 Figures are rounded. 2 Includes Queensland water entities, universities, grammar schools and water boards. 3 Includes other bodies within the public accounts. QTC 28#29QTC has a conservative approach to risk management Approximately 84 per cent of QTC's counterparty credit exposures are rated AA- or higher. ■ All types of financial risk, including interest rate, foreign exchange and counterparty risk, are managed within QTC's Board approved risk parameters. Enterprise risk management processes are independent to operational activities. ■Risk provisions are in line with industry best practice. ■ Diversified funding instruments and regular issuances are used to mitigate funding risks. A portfolio of diverse, liquid financial securities is held to meet the State's liquidity requirements. ■ Market credit exposure is restricted to dealings with counterparties rated BBB+ or higher. COUNTERPARTY CREDIT EXPOSURES AAA CATEGORY (7.0%) AA CATEGORY (76.9%) A CATEGORY (15.1%) BBB+ CATEGORY (1.0%) As at 30 June 2023. Note: A and AA categories comprised of A+, A, A- and AA+, AA, AA-rated counterparties. Excludes cash held at bank. May not add to 100% due to rounding. QTC 29#30QTC uses a diverse range of funding instruments FUNDING SOURCES BY INSTRUMENT (FACE VALUE) ~AUD127.3 BILLION As at 30 June 2023. Figures are rounded. AUD benchmark bonds are complemented by a range of diverse funding instruments with maturities from seven days to 27 years AUD BENCHMARK BONDS (72.6%) AUD NON-BENCHMARK BONDS (4.5%) ■GREEN BONDS (8.3%) ■FLOATING RATE NOTES (9.3%) AUD TREASURY NOTES (3.8%) CAPITAL INDEXED BONDS (0.2%) EURO MEDIUM TERM NOTES (0.8%) ■US & EURO CP (0.2%) OTHER (0.3%) QTC 30#31A diverse investor base by geography and type ■ QTC's domestic and global investors include central banks and other sovereign investors, multi-national finance, superannuation and investment corporations, and major domestic and international banks. Approximately 23% of Australian semi-issuance is held offshore.¹ ■ QTC's established issuance program is built on more than 30 years' experience in global capital markets. ■New bond lines may be offered in the US to 'qualified institutional buyers' pursuant to Rule 144A. ASSET MANAGERS/ INSURANCE COMPANIES HEDGE FUNDS BANK BALANCE SHEETS TRADING DESKS OFFICIAL INSTITUTIONS Data Source: Australian Bureau of Statistics. QTC 31#32AUD benchmark bond lines are QTC's principal source of funding ■ 13 established lines 10,000 with various maturities 9,000 across the curve. ■New bond lines issued 8,000 under the domestic 7,000 program may be offered in the US to 6,000 'qualified institutional buyers' pursuant to Rule 144A. ■In January 2023, AUD MILLION 5,000 4,000 3,000 QTC issued a new 4.5% 2035 Benchmark Bond. QTC AUD BENCHMARK BONDS, OUTSTANDINGS BY MATURITY TOTAL: AUD 92,400m as at 30 June 2023 2,000 1,000 0 -1,000 -2,000 4.25% 5.75% 4.75% 3.25% 2.75% 3.25% 3.25% 3.50% 1.75% 21-07-23 22-07-24+ 21-07-25 21-07-26 20-08-27 21-07-28 21-08-29 21-08-30 21-08-31 1.50% 2.00% 1.75% 4.50% 20-08-32 22-08-33 20-07-34 22-08-35 ISSUANCE FYTD As at 30 June 2023. +Not 144A Capable. QTC trades in its own securities in the open market. Such securities may be held, resold or cancelled at QTC's discretion. QTC 32#33Non-benchmark bonds complement AUD benchmark bonds ■ QTC monitors the market to issue other 3,500 instruments, taking 3,000 into account investor demand, client funding requirements and 2,500 market conditions. ■In March 2023, QTC issued a new 4.5% 2033 Green Bond. ■In August 2022, QTC issued a new 2028 Floating Rate Note at 3mBBSW +2.5bps. AUD MILLION 2,000 1,500 1,000 500 0 QTC AUD NON-BENCHMARK BONDS, OUTSTANDINGS BY MATURITY TOTAL: AUD 28,367m as at 30 June 2023 -500 3.00% 22-03-24 3m B BSW 3m B BSW 3m B BSW +23.5 +1 +9 25-11-24 03-03-26 15-04-27 3m B BSW 1.25% 1.50% 4.50% 6.50% 2.50% 2.75% 2.25% 2.25% 4.20% 2.25% +2.5 06-03-29 20-08-30+ 10-03-31 02-03-32 09-03-33 14-03-33+ 16-04-40 20-11-41 20-02-47 28-10-50 25-02-28 ■FLOATING RATE NOTE ■GREEN BOND ■CAPITAL INDEXED ■NON-BENCHMARK BOND ■ISSUANCE FYTD As at 30 June 2023. †Not 144A Capable. QTC trades in its own securities in the open market. Such securities may be held, resold or cancelled at QTC's discretion. Note: The 2.75% 20 Aug 2030 outstandings do not include indexation of AUD151.6 million. QTC 33#34QTC Green Bonds Supporting Queensland's pathway to climate resilience and an environmentally sustainable economy 요 Eligible project and asset pool of approximately AUD16.83 billion, of which approximately AUD10.554 billion of green bond proceeds have been allocated. CY QTC green bonds on issue are certified by the Climate Bonds Standard Board on behalf of the Climate Bonds Initiative. Committed to a high standard of transparency - annual reporting and independent third-party assurance. ELIGIBLE PROJECT AND ASSET POOL APPROXIMATELY AUD16.83 BILLION* Climate Bonds Programmatic Certification from CBI provides a more streamlined certification process for greater flexibility in issuance. QTC's Green Bond Framework and QTC's 2023 Green Bond Annual Report is available at: https://www.qtc.qld.gov.au/institutional-investors/green- bonds As at 30 June 2023. *QTC portfolio of nominated assets valued as at 31 December 2022 as appears in DNV 2023 Annual Programmatic Assurance Statement. "Any future allocation of Green Bond proceeds to the Scheme may be deferred until it is substantially recommissioned to a 'ready to use' state. GOLD COAST LIGHT RAIL STAGE 1 (492.2M) GOLD COAST LIGHT RAIL STAGE 2 (211.0M) NEW GENERATION ROLLING STOCK (949.5M) TILT TRAINS ROLLING STOCK (27.1M) CITYTRAIN ROLLING STOCK (496.8M) CITYTRAIN NETWORK (3,195.2M) REDCLIFFE PENINSULA LINE (290.8M) CYCLEWAYS (197.2M) SUNSHINE COAST SOLAR FARM (34.9M) WARWICK SOLAR FARM (68.0M) GOLD COAST DESALINATION PLANT (780.2M) WATER TREATMENT PLANTS (1,719.3M) PIPELINES AND OTHER (2,983.8M) DAMS AND WEIRS (3,479.9M) "WESTERN CORRIDOR RECYCLED WATER SCHEME (1,907.4M) QTC 34#35QTC's 2022-23 indicative term debt borrowing program Following the Queensland 2023-24 State Budget released on 13 June 2023, QTC estimates it will borrow AUD15.5 billion of term debt in the 2023-24 financial year. ■ AUD89 billion capital program over the next four years. ■ In addition to the total term debt requirement, QTC expects to maintain a minimum of approximately AUD5.0 billion. of short-term debt. Requirements State² 2023-24 2024-25 AUD M¹ AUD M¹ 2025-26 AUD M¹ 2026-27 AUD M¹ 6,600 13,100 13,600 14,800 Local Government and other entities³ 1,400 1,200 1,000 700 Total new money 8,000 14,300 14,600 15,500 Net term debt refinancing4 7,500 8,400 9,800 11,400 Total term debt requirement 15,500 22,700 24,400 26,900 As at 13 June 2023. 1 Numbers are rounded to the nearest AUD100 million. 2 Includes general government and government-owned corporations. 3 Other entities include: universities, grammar schools, retail water entities and water boards. 4 Includes term debt maturities, net issuance undertaken in advance of borrowing requirements and scheduled client principal repayments. Note: Funding activity may vary depending upon actual client requirements, the State's fiscal position and financial market conditions. QTC 35#36QTC's 2023-24 funding strategy and annual term debt issuance Funding Strategy QTC'S ANNUAL TERM DEBT ISSUANCE (ACTUAL AND FORECAST)* 30,000 QTC's 2023-24 funding strategy is likely to include the following, subject to market conditions and client funding requirements: ■ A programmatic approach to issuance, including syndication, tenders and reverse enquiry. ■ AUD benchmark bonds as the principal source of funding, including new AUD 2036 or longer maturities. ■ Other term debt, which may include green bonds, floating rate notes AUD MILLION 25,000 20,000 15,000 10,000 5,000 and non-AUD denominated bonds. Maintaining a minimum of approximately AUD5.0 billion of short-term debt outstandings. 0 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 ACTUAL NET TERM DEBT RAISED NET NEW MONEY NET NEW MONEY - STATE GOVERNMENT OTHER CLIENTS NET TERM DEBT REFINANCING As at 13 June 2023. *Does not include short-term debt of approximately AUD5.0 billion each year. Actual net term debt raised is calculated from Annual Borrowing Program release to the release of the next Annual Borrowing Program. QTC 36#37Summary of key points. Queensland Treasury Corporation: ■ funds the Queensland Government public sector ■ is 100 per cent government-owned ■ has all debt security and derivative ISDA obligations fully guaranteed by the State of Queensland ■ issues debt that carries the following credit rating (identical to the State of Queensland) ■ S&P Global: AA+/Stable/A-1+ Moody's: Aa1/Stable/P-1 ■ has 13 AUD benchmark bond lines on issue ■ has an indicative term debt borrowing program of AUD15.5 billion for 2023-24 employs a conservative and transparent funding strategy, and ■ has more than 30 years' experience in global debt capital markets. See Appendices for further details. QTC 37#38Trinity Beach, Cairns, Queensland Appendices AUDAX AT FIDELIS, QUEENSLAND TREASURY CORPORATION#39Queensland Treasury Corporation AUDAX AT FIDELIS QUEENSLAND TREASURY CORPORATION About QTC ■ Founded in 1988, Queensland Treasury Corporation (QTC) is a corporation sole, constituted by the Under Treasurer in accordance with the Queensland Treasury Corporation Act 1988. ■ QTC has responsibility for the State of Queensland's debt funding and financial risk management. In its funding role, QTC borrows funds in the domestic and international markets by issuing a variety of debt instruments. ■Its clients include Queensland Government departments and agencies, local governments, government-owned corporations, and statutory bodies and universities. ■ QTC is able to capture significant economies of scale and scope in the issuance, management and administration of the State's debt. QTC 39#40Queensland State Government Guarantee The Treasurer of Queensland, on behalf of the State Government, guarantees: ■ QTC's obligations under the debt securities issued by QTC, and ■ QTC's payment obligations to counterparties under derivative transactions governed by ISDA agreements. In respect to all domestic securities issued by QTC, section 32 of the Queensland Treasury Corporation Act 1988 provides a statutory guarantee of QTC's obligations to stockholders: Section 32 The due repayment of principal on inscribed stock issued in accordance with this Act and, where payable, the due payment of interest relating to the inscribed stock are guaranteed by the Treasurer, on behalf of the Government. Section 33 of the Queensland Treasury Corporation Act empowers the Treasurer to guarantee due payment of moneys and due performance of obligations in accordance with financial arrangements or other arrangements entered into by QTC. Such discretionary guarantees have been granted by the Treasurer and continue to operate in support of QTC's offshore debt facilities. All payments by the State Government under these guarantees are appropriated under section 34 of the Queensland Treasury Corporation Act, meaning they can be paid from the State's Consolidated Fund without any further legislative approval. QTC 40#41Key funding principles CONSERVATIVE Balanced debt maturity profile supported by liquid reserves PRUDENT TRANSPARENT Disciplined approach to financial risk management Comprehensive, regular market updates COMMITTED Valued long-term investor and intermediary relationships QTC 41#42Queensland's long-term assets ■ Queensland's long-term assets comprise investments set aside to fund long- term obligations of the State. These assets were transferred to QTC by the Queensland Government and in return QTC issued fixed-rate notes that provide a fixed rate of return. These assets are split into two investment funds: Long Term Assets Fund comprises assets to fund the State's defined benefit superannuation scheme and other long-term State initiatives. In 2008, the Queensland Government transferred assets to support the defined benefit superannuation scheme. Since June 2021, additional assets have been transferred to fund other long-term State initiatives. Total assets under management of the Long Term Assets Fund are approximately AUD35.1 billion as at 30 June 2023. ■ Queensland Future Fund comprises assets invested to reduce the debt of the State. In August 2020, the Queensland Future Fund and its first sub fund, the Debt Retirement Fund, were established under the Queensland Future Fund Act 2020. Total assets under management of the Queensland Future Fund are approximately AUD8.3 billion as at 30 June 2023. ■ The Long Term Assets Fund and the Queensland Future Fund are overseen by the State Investment Advisory Board and managed by Queensland Investment Corporation (QIC). They include cash, fixed interest, international equities and other diversified alternative investments. ■Queensland is in a unique position with financial holdings greater than its superannuation obligations. QTC 42#43Australia's federal and state system Federalism The Commonwealth of Australia ('Australian Government' or the 'Commonwealth') was formed as a federal union on 1 January 1901, when the six British colonies of New South Wales, Victoria, Queensland, South Australia, Western Australia and Tasmania were united as states in a federation. In addition to the six states, Australia has two territories - Northern Territory and the Australian Capital Territory - the latter hosting the nation's capital of Canberra. Powers Australian Government The Australian Parliament has power to legislate on specific matters of national interest, such as defence, external affairs, overseas and interstate trade and commerce, currency and banking. The Australian Government also has primary responsibility for overall economic management in Australia. For example, they have responsibility for monetary policy, national budget policy, fiscal policy and external policy. State Government The state parliaments retain powers over all matters other than those granted to the Australian Government under the Constitution. State powers include control over education, public health, police and justice, transport, roads and railways, industry, mining and agriculture, public works, ports, forestry, electricity, gas, and water supply and irrigation. QTC 43#44Distribution of GST States and territories (states) receive all revenue collected by the Australian Government via the Goods and Services Tax (GST). It is allocated using the principles of horizontal fiscal equalisation, which is designed to equalise the states' fiscal capacity to provide public services to the same standard. Under this system, some states with below average revenue raising capacity or above average spending requirements receive a larger share of GST (and vice versa). ■ The independent Commonwealth Grants Commission determines the annual allocation across the states. Examples of differences between states to raise revenue and their expenses Revenue Population Amount of minerals within a state's borders Affects the amount of royalties collected Expenses Number of elderly people Requires more health services As at 31 December 2022 Number and value of residential and commercial land or properties Affects the amount of Number and location of remote and regional areas It is more expensive to provide services and infrastructure in these locations Western Australia 2.8m land tax and stamp duty collected Northern Territory 0.3m QUEENSLAND 5.4m South Australia 1.8m New South Wales 8.2m Victoria 6.7m II Wages paid by businesses Number of school children Affects the amount of Dictates the number of Tasmania payroll tax collected schools and teachers needed 0.6m Australian Capital Territory 0.5m QTC 44#45Queensland's peers' credit ratings Australian Queensland Australian Capital Territory New South Wales Northern Territory South Australia Tasmania S&P Global AA+/Stable/A-1+ AAA/Negative/A-1+ AA+/Stable/A-1+ Not rated by S&P Rating agency Moody's Aa1/Stable/P-1 Rating withdrawn 20 August 2005 (from Aaa) Aaa/Stable/P-1 Aa3/Stable/-- AA+/Negative/A-1+ Aa1/Stable/P-1 AA+/Stable/A-1+ Aa2/Stable/P-1 Victoria AA/Stable/A-1+ Aa2/Stable/P-1 Western Australia AAA/Stable/A-1+ Aaa/Stable/P-1 As at 11 July 2023. According to information provided by S&P Global and Moody's. QTC 45#46Funding instruments Size $M Maturities available Currencies QTC has a diverse range of funding instruments in a variety of markets and currencies. The majority of QTC's funding is sourced through long-term debt instruments, with QTC's AUD benchmark bonds being the principal source of funding. Overview as at 30 June 2023 Short- term Domestic T-Note Unlimited Euro CP USD10,000 US CP USD10,000 Long-term AUD Bond Unlimited Euro MTN USD10,000 US MTN USD10,000 7-365 days AUD 1-364 days Multi-currency 1-270 days USD 13 benchmark lines: 2023-2035 AUD A range of non-benchmark lines (e.g. green bonds, FRNs etc) Any maturity subject to market regulations 9 months-30 years Multi-currency Multi-currency QTC 46#47AUD Benchmark Bond Distribution Group* ■ ANZ Banking Group Limited BofA Securities Citi Commonwealth Bank of Australia Deutsche Bank J.P. Morgan National Australia Bank ANZ BofA SECURITIES cíti Commonwealth Bank ☑ J.P.Morgan QTC's Fixed Income Distribution Group of 12 banks is committed to providing investors with two- way pricing in the secondary market, as well as supporting primary issuance activity. Nomura International plc RBC Capital Markets ■TD Securities UBS Investment Bank National Australia Bank NOMURA Capital Markets TD RBC Westpac Banking Corporation As at 30 June 2023. *Actual dealer legal entities may vary depending on the facility and location of the dealer. UBS Westpac Institutional Bank QTC 47#48Medium-Term Note (MTN) Programs Queensland State Government guaranteed Australian interest withholding tax exempt Multi-currency Euro and US programs Structured to meet investor requirements (currency, coupon, maturity etc.) Reverse enquiry placement through MTN Distribution Group Reverse enquiry placement through non-Distribution Group members ('Dealer for a Day') MTN Distribution Group* Euro MTN ANZ Banking Group Limited BofA Securities Citi Commonwealth Bank of Australia ■Deutsche Bank ■ J.P. Morgan National Australia Bank Nomura International plc RBC Capital Markets ■TD Securities UBS Investment Bank ■Westpac Banking Corporation US MTN ■ANZ Securities BofA Securities Citi Commonwealth Bank of Australia Daiwa Capital Markets Deutsche Bank Securities ■ J.P. Morgan ■NAB Securities, LLC RBC Capital Markets TD Securities UBS Investment Bank As at 30 June 2023. * Actual dealer legal entities may vary depending on the facility and location of the dealer. QTC 48#49Treasury Note (T-Note) and Commercial Paper (CP) programs. ■ Queensland State Government Guaranteed Australian, Euro and US programs AUD and multi-currency Reverse enquiry placement through dealer panels T-Note, Euro and US CP programs are Australian interest withholding tax exempt T-Note and CP Dealer Panels* Domestic T-Note ANZ Banking Group Limited Commonwealth Bank of Australia Deutsche Bank National Australia Bank Limited Westpac Banking Corporation Euro CP Barclays BofA Securities Citi UBS Investment Bank US CP ■ BofA Securities Citi UBS Investment Bank As at 30 June 2023. * Actual dealer legal entities may vary depending on the facility and location of the dealer. QTC 49#50Glossary ABS Australian Bureau of Statistics ISDA International Swaps and Derivatives Association APRA Australian Prudential Regulation Authority IWT Interest withholding tax AUD Australian dollar LNG Liquefied natural gas Budget Update Mid-Year Fiscal and Economic Review (mv) Market value CBI Climate Bonds Initiative MTN Medium-term note CGS Commonwealth Government Securities MYEFO Mid-Year Economic and Fiscal Outlook CIB Capital indexed bond QIC CP Commercial paper QTC Queensland Investment Corporation Queensland Treasury Corporation CPI Consumer price index RBA Reserve Bank of Australia DTC The Depository Trust Company RHS Right hand side ESG Environmental, Social, Governance SGG State Government Guarantee (Queensland) (fv) GDP Face value T-Note Treasury note Gross Domestic Product FRN ICMA Floating rate note International Capital Market Association QTC 50#51AUDAX AT FIDELIS QUEENSLAND TREASURY CORPORATION The Queensland Coat of Arms, represented in Queensland Treasury Corporation's logo, was granted by Queen Victoria in 1893 and symbolises her constitutional authority for the State. At the top, the State badge is surrounded by two stems of sugar cane. Below the badge, the shield features the heads of a bull and a merino ram, a sheaf of wheat, and a column of gold rising from a pile of quartz, over a spade and pick. These elements symbolise Queensland's strong agricultural and mining industries. In 1977, during her Silver Jubilee year, Queen Elizabeth II granted the Arms two 'supporters', a red deer and Queensland's native brolga. The State motto, Audax at Fidelis, means 'Bold but Faithful'. www.qtc.qld.gov.au T: +61 7 3842 4600 GPO Box 1096, Brisbane BLOOMBERG TICKER: QTC F: +61 7 3221 4122 Queensland Australia 4001