#1AURIZON Aurizon Holdings Limited ABN 14 146 335 622 ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT 8 June 2021 Aurizon Investor Day Please find attached an ASX announcement including a copy of the 2021 Investor Presentation slides for release to the market. The Investor Presentation will be delivered via webcast which will commence at 1.00 pm AEST. This presentation will be accessible via the Company's website: https://services.choruscall.com.au/webcast/aurizonau-210608.html Kind regards M.W David Wenck Company Secretary The attached ASX announcement and Investor Presentation has been authorised for lodgement by the Aurizon Holdings Limited Board of Directors. T +61 7 3019 9000 | F +61 7 3019 0720 | Company [email protected] Level 8, 900 Ann St, Fortitude Valley QLD 4006 Australia | GPO Box 456 Brisbane QLD 4001 Australia#2AURIZON ASX Announcement Date: 8 June 2021 You in Tube Aurizon Investor Day Aurizon today is providing a presentation at an Investor Day in Newcastle (attached) detailing the Company's strategy to continue to deliver sustained value for investors and customers. As part of the presentation, Aurizon is re-affirming FY2021 guidance for Earnings Before Interest and Tax (EBIT) in the range of $870 - $910 million. Key aspects of today's presentation include: A demonstration of potential demand scenarios for thermal and metallurgical coal markets, built on potential drivers of Asian economic growth including global power generation mix and steel production together with an explanation of how Aurizon uses these scenarios in its business decisions. The opportunity for the Bulk business (all above rail haulage, except coal) to target new markets as it expands across supply chains, including port and terminal services, and taps into growing demands for inputs to renewables and batteries, infrastructure development and global food consumption. Realising this growth opportunity would change the commodity mix for coal and non-coal revenue in the Aurizon portfolio. Transformation, productivity initiatives and cost reduction will remain key drivers for the Company's financial and operational performance. Commentary from the MD & CEO Andrew Harding: "Our strategic aim is to ensure Aurizon's core business is highly efficient and resilient in a changing market environment, while enabling the continuing growth of our Bulk business. With the re-balancing of our portfolio mix, Aurizon remains well-positioned to support shareholder returns and re-investment in the business." For more information: Investors: Chris Vagg +61 409 406 128 Media: Mark Hairsine +61 418 877 574#3Aurizon Investor Day 8 June 2021 AURIZONⓇ#42021 INVESTOR DAY Disclaimer AURIZON. NO RELIANCE ON THIS DOCUMENT This document was prepared by Aurizon Holdings Limited (ACN 146 335 622) (referred to as "Aurizon" which includes its related bodies corporate (including Aurizon Operations Limited)). Whilst Aurizon has endeavoured to ensure the accuracy of the information contained in this document at the date of publication, it may contain information (including third party information) that has not been independently verified. Aurizon makes no representation or warranty as to the accuracy, completeness or reliability of any of the information contained in this document. Aurizon owes you no duty, whether in contract or tort or under statute or otherwise, with respect to or in connection with this document, or any part thereof, including any implied representations or otherwise that may arise from this document. Any reliance is entirely at your own risk. DOCUMENT IS A SUMMARY ONLY This document contains information in a summary form only and does not purport to be complete and is qualified in its entirety by, and should be read in conjunction with, all of the information which Aurizon files with the Australian Securities Exchange. Any information or opinions expressed in this document are subject to change without notice. Aurizon is not under any obligation to update or keep current the information contained within this document. Information contained in this document may have changed since its date of publication. NO INVESTMENT ADVICE This document is not intended to be, and should not be considered to be, investment advice by Aurizon nor a recommendation to invest in Aurizon. The information provided in this document has been prepared for general informational purposes only without taking into account the recipient's investment objectives, financial circumstances, taxation position or particular needs. Each recipient to whom this document is made available must make its own independent assessment of Aurizon after making such investigations and taking such advice as it deems necessary. If the recipient is in any doubt about any of the information contained in this document, the recipient should obtain independent professional advice. NO OFFER OF SECURITIES Nothing in this presentation should be construed as a recommendation of or an offer to sell or a solicitation of or subscription or invitation of an offer to buy or sell securities in Aurizon in any jurisdiction (including in the United States), nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. This document is not a prospectus and it has not been reviewed or authorized by any regulatory authority in any jurisdiction. This document does not constitute an advertisement, invitation or document which contains an invitation to the public in any jurisdiction to enter into or offer to enter into an agreement to acquire, dispose of, subscribe for or underwrite securities in Aurizon. SCENARIO ANALYSIS (AND ASSOCIATED CASH FLOW MODELLING) AND ESG TARGETS This document also contains scenario analysis of long-term coal scenarios (and associated cash flow modelling) and ESG targets. The scenario analysis (and associated cash flow modelling) that informs this document was undertaken by Aurizon, supported by an expert third party. The analysis is based on the information available at the date of this document and/or the date of Aurizon's planning processes or scenario analysis processes. There are inherent limitations with scenario analysis and it is difficult to predict which, if any, of the scenarios might eventuate. Scenarios are neither predictions nor forecasts and do not constitute definitive outcomes for Aurizon. We do not assign probabilities and future performance may be outside of the ranges presented. Scenario analysis and the outcomes of those scenarios rely on assumptions that may or may not be, or prove to be, correct and may or may not eventuate, and scenarios may be impacted by additional factors to the assumptions disclosed. STATEMENTS ABOUT THE FUTURE This document contains "forward-looking statements". The words "expect", "anticipate", "likely", "intend", "should", "could", "may", "predict", "plan", "propose", "will", "believe", "forecast", "estimate", "goals", "aims", "target" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements. The forward-looking statements are not based on historical facts, but rather on current beliefs, assumptions, expectations, estimates and projections of Aurizon. These statements are not guarantees or predictions of future performance, and involve both known and unknown risks, uncertainties and other factors, many of which are beyond Aurizon's control. As a result, actual results or developments may differ materially from those expressed in the forward-looking statements contained in this document. Aurizon cautions against reliance on any forward-looking statements or guidance. Except as required by applicable regulations or by law, Aurizon is not under any obligation to update these forward-looking statements (or scenario analysis) to reflect events or circumstances that arise after publication. Past performance is not an indication of future performance. NO LIABILITY To the maximum extent permitted by law in each relevant jurisdiction, Aurizon and its directors, officers, employees, agents, contractors, advisers and any other person associated with the preparation of this document, each expressly disclaims any liability, including without limitation any liability arising from fault or negligence, for any errors or misstatements in, or omissions from, this document or any direct, indirect or consequential loss howsoever arising from the use or reliance upon the whole or any part of this document or otherwise arising in connection with it. 2#5024 C AURIZON Acknowledgement of Country We acknowledge the Awabakal and Worimi People, the Traditional Custodians of the land we are on today. We pay our respects to the elders past, present and future for they hold the memories, the traditions, the culture and hopes of Aboriginal Australia. We must always remember that under the ballast, sleepers, rail systems and office buildings where Aurizon does business, was and always will be traditional Aboriginal land. Photo: Unveiling of locomotive artwork during NAIDOC Week 2020, a design the features sacred sites from the local area, created by local Indigenous artist John Robinson AURIZON#62021 INVESTOR DAY Executive team presenting today Andrew Harding Managing Director & CEO George Lippiatt Chief Financial Officer & Group Executive Strategy Pam Bains Group Executive Network Edward McKeiver Group Executive Coal Clayton McDonald Group Executive Bulk AURIZON.#72021 INVESTOR DAY Agenda 1 Strategic Objectives 2 Capital Allocation and Free Cash Flow [break] 3 Bulk Update 4 Coal Update 5 CO 6 Andrew Harding, Managing Director & Chief Executive Officer George Lippiatt, Chief Financial Officer & Group Executive Strategy Clay McDonald, Group Executive Bulk Ed McKeiver, Group Executive Coal Network Update Pam Bains, Group Executive Network Q&A AURIZON. 5#8Overview Andrew Harding Managing Director & CEO AURIZONⓇ#92021 INVESTOR DAY Safety performance TRIFR results driven by low-severity strain injuries with LTIFR improving 28% AURIZON. Total Recordable Injury Frequency Rail Process Safety (RPS) Lost Time Injury Frequency Rate (LTIFR) Rate (TRIFR) Incidents per million person-hours worked 11.07 Incidents per million train kilometres travelled Incidents per million person-hours worked 9.92 10.06 4.74 4.79 3.75 -28% 4.38 3.18 FY2019 FY2020 YTD FY2021* FY2019 FY2020 YTD FY2021* 2.30 FY2019 FY2020 YTD 2021* > Slight deterioration in TRIFR due to restricted work injuries. Higher numbers of low severity body sprains from walking on uneven ground and upper body manual handling strains > Maintained RPS performance (fatality prevention measure). However, increase in low severity yard derailments in second half of FY21 > Includes employees and contractors *Year-To-Date (to 30 April 2021) 7#102021 INVESTOR DAY Overview of Aurizon's operations Aurizon is Australia's largest rail-based transport business, with diversified, cross-commodity exposure through above and below rail services, and port terminals AURIZON. Legend Coal CQCN (Network) Bulk • City/town Port FY2020 Port Hedland Karratha Dampler Geraldton⚫ Morawa Perth Kwinana Bunbury Mullewa Broome Poronjori WESTERN AUSTRALIA Leonora Kalgoorlle Kambalda Esperance Albany Revenue $3,065m EBITDA $1,468m EBIT $909m Free cash flow $715m ROIC 10.9% Wyndham Darwin Calrns NORTHERN TERRITORY QUEENSLAND Townsville Cloncurry Mt Isa Bowen Hughenden. Phosphate Hill Collinsville Newlands Mackay Goonyelle Alice Springs ● Winton ● Longreach⚫ SOUTH AUSTRALIA Quilple Broken Hil Crystal Brooke Adelalde Emerald Charleville NEW SOUTH WALES Murtoa VICTORIA Melbourne 1. Calculated using 1HFY2021 revenue (ex-Access). Coal revenue allocated based on volume split Gunnedah Rockhampton Gladstone Bundaberg Gymple Brisbane →⚫Newcastle ●Sydney Wollongong Canberra TASMANIA Hobart Below Rail AURIZON. Network • дав Critical infrastructure supporting ~90% of Australian metallurgical coal export volume Above Rail Regulated below rail asset base Linked to Asian steel production and energy generation Coal Largest hauler of metallurgical coal in Australia ABOVE RAIL REVENUE¹ Only rail operator with services to all nine coal export terminals on East Coast 32% 34% ■ Linked to Asian steel production and energy generation 34% Bulk Operations in Queensland, Western Australia and New South Wales Metallurgical Coal Rail, road and port services Commodities hauled linked with economic growth and minerals associated with emerging technology such as battery storage, renewable energy and electric vehicles Thermal Coal Bulk 8#112021 INVESTOR DAY Pride in our ESG1 contribution Aurizon continues to build a stronger and sustainable business AURIZON. NET-ZERO COMMITMENT BY 2050... › Climate Strategy and Action Plan released in October 2020 > Continued advocacy for rail in the transition to a low-carbon economy > Minimising emissions: Reducing loco diesel and coal dust emissions Electrical fleet and testing battery locos › Avoiding or offsetting impacts on native biodiversity Sustainability disclosures Leading rating for 7th consecutive year² • Annual Sustainability Report • Reporting against TCFD³ since 2017 ...WHILE WE SUPPORT OUR REGIONS AND COMMUNITIES... > Updated safety strategy > Gender Balance Action Plan to increase proportion of women in our workforce > Formally committed to reconciliation through our Reconciliation Action Plan > Over 400 initiatives supported through Community Giving Fund > Founding member of Regional Australia Council 2031 › Partnerships with Queensland Firebirds and Orange Sky ROS irdsQld irdsQld AURIZON ARENA ...AND LEAD THROUGH TRANSPARENT GOVERNANCE › Board provides sustainability oversight and direction > Code of Conduct linked to our values: Safety, People, Integrity, Customer and Excellence > Scenario analysis considers climate- related transition risks > First Modern Slavery Statement published in 2020 1. Environmental, Social and Governance 2. By the Australian Council of Superannuation Investors (ACSI) for corporate sustainability reporting in Australia 3. Task Force on Climate-related Financial Disclosures. See annual Sustainability Report available on Aurizon website 9#122021 INVESTOR DAY Climate Strategy and Action Plan Aurizon is committed to a target of net-zero operational emissions by 2050 Net-zero operational emissions by 2050 THREE KEY PILLARS Manage Risk and Build Resilience Deliver Decarbonisation Create Carbon Abatement Opportunities TRACKING TOWARDS NET-ZERO OPERATIONAL EMISSIONS INITIATIVES Climate Strategy and Action Plan Implementation Technology Pathway AURIZON. חוחות $ Minimising our Operational Emissions Electricity Consumption on Aurizon's Electrified Network Infrastructure Partnerships and Collaboration Technology Investment Through the Future Fleet Fund Renewable Energy Carbon Offsets Further information about the Climate Strategy & Action Plan can be found on Aurizon's website 10 10#13AURIZON. 2021 INVESTOR DAY Metallurgical coal market Steel is an integral link to economic development. The metallurgical coal-dependent method of steel production commands almost three-quarters (1.3 billion tonnes) of global steel production Apparent Steel Use (Crude Steel Equivalent) per capita | GDP per capita: 20191 Global Crude Steel Production | Blast Furnace-Basic Oxygen Furnace Share³ 2.0bt Apparent Steel Use (crude steel equivalent) per Capita (kg) 800 600 400 200 population India China South East Asia² Japan Germany United States Australia 1.5bt 1.Obt +3% 72% 74% 0.5bt 69% 65% 55% 58% 61% 0.Obt 1990 1995 2000 2005 2010 2015 2019 Other Methods Blast Furnance-Basic Oxygen Furnace India: Crude Steel Production (By Method)4 125mt 100mt With the exception of COVID-impacted 2020, crude steel production in India has sequentially increased each year over the past three decades 75mt 50mt 25mt +8% Omt 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 GDP per capita (PPP dollars) 1990 1995 2000 2005 2010 2015 2020 № Total Non-BF-BOF BF-BOF 1. GDP (Purchasing Power Parity; international dollars) - International Monetary Fund, Population - International Monetary Fund, Apparent Steel Usage & Apparent Steel Use per Capita - World Steel Association 2. South East Asia (Select nations): Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam 3. World Steel Association 4. World Steel Association. 2020 production split by method not available +112% 11#142021 INVESTOR DAY Thermal coal market From a share of just 35% in 1990, Asia currently comprises over 80% of the import market. In 2020, 98% of Australian thermal coal export volume was destined for this region Asia: Thermal (Steam) Coal Import Volume | Share of Global Thermal (Steam) Coal Import Volume1 South East Asia (ex-Indonesia): Coal-Fired Generation Capacity (GW)² 1,000mt 900mt 800mt 700mt 600mt 500mt 400mt 300mt 200mt 35% 100mt Omt 1990 1995 2000 2005 2010 2015 Thermal (Steam) Coal Import Volume [LHS] Share of Global Thermal (Steam) Coal Import Volume [RHS] 100 85% 82% 80 80% 60 75% 40 40 70% 23 23 20 20 51 52 45 42 39 36 28 24 65% 0 2012 2013 2014 2015 2016 2017 2018 60% Planned In Construction New Builds 55% Average Age of Coal-Fired Electricity Capacity³ 50% Typical economic life (40 years)4 45% 40% 35% 13 years 13 years 30% AURIZON. 33 33 13 52 52 www. 2019 2020 2021 Const. Planned Existing Retirements 24 years 19 years 17 years 11 years 42 years 34 years China India 1. International Energy Agency, Coal Information 2020. Thermal (Steam) includes anthracite and bituminous/subbituminous thermal coal 2. S&P Global Market Intelligence World Electric Power Plants Database (March 2021) Japan South Korea Taiwan South Europe East Asia5 North America 3. S&P Global Market Intelligence World Electric Power Plants Database (March 2021) as at 2021, capacity weighted. Countries ordered by absolute capacity (left to right), followed by South East Asia. Europe and North America added for reference only. 4. International Energy Agency, World Energy Investment 2018 12 5. South East Asia (excluding Indonesia)#15AURIZON. 2021 INVESTOR DAY Bulk market Demand growth for bulk commodities will be led by the transition to clean energy technologies and rising food consumption Australia supply growth forecast (CAGR 2020-2026) Selected commodities¹ 20% Australian exploration expenditure Selected base metals² A$800m Mt 15% 10% 16.1% 5% 0% -5% Lithium A$600m A$400m 5.4% A$200m 3.5% 3.5% 1.1% Nickel Zinc Iron ore Copper IEA: Mineral demand from clean energy technologies³ 30 20 20 10 2040 2010 2020 2030 2040 IEA: Stated Policies 2030 IEA: Sustainable Development Electricity networks EVs and battery storage Other low-carbon power generation Wind Solar PV A$0m 2016 2017 2018 2019 2020 Food consumption: Calorie consumption per capita4-5 Food supply (Kcal/capita/day) 4,000 3,500 Vietnam China 3,000 ● Thailand 2,500 India Japan ● Germany United States Australia 2,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 GDP per capita (PPP) 1. Office of the Chief Economist - Research and Energy Quarterly (March 2021) 2. Australian Bureau of Statistics (March 2021 dataset), Selected base metals includes: copper, silver, lead, zinc, nickel and cobalt. 3. International Energy Agency (IEA) - The role of critical minerals in clean energy transition. Key minerals included: cobalt, copper, lithium, nickel and rare earth elements 4. GDP (Purchasing Power Parity; international dollars): International Monetary Fund (2019 data), Population: International Monetary Fund (2019 data) 5. Food Supply: Food & Agriculture Organisation of the United Nations (kcal/capita/day, 2018 data) 13#162021 INVESTOR DAY Our value creation record Despite changed external environment, Aurizon's cashflows remain stable and the focus on transformation continues HIGHLIGHTS ✓ Negotiated and executed UT5 De-risked the Coal contract book ✓ Executed Bulk turnaround and delivered Phase 1 growth ✓ Dividends maintained at 100% of Net Profit After Tax for past six years ✓ Ongoing cost transformation ✓ Corporate restructure providing additional balance sheet capacity Announced Climate Strategy and Action Plan ✓ Established Aurizon Port Services AURIZON. STRONG HISTORY OF SHAREHOLDER RETURNS1 $5.0b $4.0b $3.0b $2.0b $1.0b $0.0b 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 Buy-back Dividends Paid 1. Cumulative. Dividends paid is shown during the period where the cash dividend was paid (rather than reporting period that the dividend was based on) 14#17H 3817 3817 Strategic Objectives AURIZONⓇ#182021 INVESTOR DAY Investor Day objective Share our confidence in Aurizon's long-term outlook CASH FLOW Long term cash flows resilient in multiple coal volume scenarios COAL and NETWORK Detailed view of long-term demand drivers BULK GROUP CAPITAL LEVERS Expanded potential market opportunity and Aurizon's position for success Flexibility to changing demand with multiple redeployment opportunities AURIZON. 16#192021 INVESTOR DAY Focus of our businesses Each Aurizon Business Unit has a unique focus, but all are aligned to enterprise objectives COAL > Continue transformation and productivity push > ROIC and FCF focus for management > Prudent capital investment based on scenario analysis BULK > Growing markets and new adjacencies > Revenue and earnings growth focus > Attractive opportunities to deploy capital (and redeployment from Coal) NETWORK > Embed UT5 for regulatory certainty > Enhance supply chain efficiency > Reduce costs and improve throughput ENTERPRISE › Capital efficiency to support shareholder returns and accretive growth > Improve supply chains to support robust long term demand for key commodities AURIZON. 17#20AURIZON. 2021 INVESTOR DAY Coal demand scenarios Aurizon uses six scenarios to test fleet capacity, capital investments and haulage opportunities OUR PROCESS > We form a view on the future of coal through our internal Strategy in Uncertainty framework Scenarios are built on fundamental drivers of economic growth, global power generation mix, steel production and investment in new supply Scenarios are reviewed regularly and produce a range of outcomes over OUR SIX SCENARIOS Commodity Strong · Current Economics Port Constrained Australia Mine/Regulatory Constrained Australia · Carbon Constrained Asia 600mt > 20 years. However, modelling 500mt indicates positive annual growth rates for five of six scenarios in the first 400mt decade 300mt 200mt Rapid Decarbonisation Australia: Coal Export Volume (million tonnes) 100mt 2010 2015 2020 2025f 2030f 2035f 2040f SCENARIO INFORMATION > Scenarios and associated free cash flow modelling used in this presentation (and transcript) are based on current information detailed on slides 22-33 and the appendix > There are inherent limitations with scenario analysis and it is difficult to predict which, if any, of the scenarios might eventuate > The scenarios are not predictions or forecasts and do not constitute definitive outcomes for Aurizon > We do not assign probabilities and future performance may be outside of the range of the scenarios and associated free cash flow modelling presented > We have relied on assumptions that may not prove to be correct and they may not eventuate. The scenarios and associated free cash flow modelling may be impacted by additional factors to those assumed by us 18#212021 INVESTOR DAY Our strategic aim Resilient Network and Coal business supporting Bulk growth and shareholder returns AURIZON. UNDER THE SCENARIOS TESTED, MODELLING INDICATES RESILIENT AVERAGE ANNUAL FREE CASH FLOW OVER 20 YEARS1 Resilient coal and network businesses Safety, cost, productivity and capital focus supports Bulk growth Growing bulk business with new markets Our aspiration to achieve 20-25% market share in 10 years within a ~$1.25bn market profit pool would imply ~$250- 300m EBIT2 Evolving mix reduces thermal coal exposure Targeted bulk growth would result in revenue from thermal coal falling to less than 20% of Above Rail portfolio by 2030 1. Modelled average annual Free Cash Flows of between $500m and $650m. Figures are in nominal Australian dollars for the period to FY40. Aurizon uses six Strategy in Uncertainty scenarios to inform planning processes. As noted on slide 2 these are scenarios (and associated cash flow modelling) not predictions or forecasts and do not constitute definitive outcomes for Aurizon. It is difficult to predict which, if any, of these scenarios might eventuate. Further details of the scenarios, assumptions and levers to model free cash flow are described in detail on slides 22-33 2. Market share opportunities assume Aurizon secures a portion of an available range of organic and inorganic growth. There are no guarantees that Aurizon will secure any or all growth opportunities 19#222021 INVESTOR DAY Bulk market opportunity Bulk accounts for 32% of above rail revenue - new bulk markets are not correlated to coal demand and provide the potential to double Bulk's EBIT over ten years ESTIMATED MARKET SIZE: $1.25BN in 2030 OUR ASPIRATION TO ACHIEVE 20-25% MARKET SHARE WOULD IMPLY $250-300M AURIZON BULK EBIT1 > Bulk Rail Market Traditional Aurizon market › Strong presence in WA and QLD › Additional addressable volumes have increased estimated market size by ~$100m > Aurizon's market share ~33% Estimated market EBIT $350m + New Markets Customers want end-to-end solutions > Value from integration in a fragmented market › Significantly larger than rail: Road and Coastal Shipping to support Rail Port Services Rail Maintenance Estimated market EBIT $600m + 1. Market share opportunities assume Aurizon secures a portion of an available range of organic and inorganic growth. There are no guarantees that Aurizon will secure any or all growth opportunities. Growth > Demand for bulk commodities benefits from strong tailwinds: Economic growth Infrastructure development Food consumption Battery development Energy transition Estimated market EBIT $300m AURIZON. 20 20#23ORM Walding Services Cutting Capital allocation and Free Cash Flow George Lippiatt CFO & Group Executive Strategy BRIDGESTONE AURIZON#242021 INVESTOR DAY Context FY2021 has highlighted Aurizon's financial resilience AURIZON. FY20211 > Performance inline with $870-910m guidance despite coal volume softness > Strong Free Cash Flow forecast of ~$700m > Interim dividend maintained at 100% of NPAT › Supportive debt markets enabling maturity profile to be extended FUTURE Scenario outcomes applied to inform long-term decision making > Resilience of free cash flow generation tested under a wide range of volume scenarios² > Fleet supports long-term customer demand and mix change towards Bulk via ability to cascade coal locomotives > Principal focus on capital productivity (ROIC) and Free Cash Flow Continued discipline in capital deployment to support shareholder returns Over $4 billion returned to shareholders over past six years 1. Subject to audit and normal year-end processes. ~$700m FCF includes $100m net proceeds from sale of Acacia Ridge (refer slide 33) 2. Aurizon uses six Strategy in Uncertainty scenarios to inform planning processes. As noted on slide 2 these are scenarios (and associated cash flow modelling) not predictions or forecasts and do not constitute definitive outcomes for Aurizon. It is difficult to predict which, if any, of these scenarios might eventuate. Further details of the scenarios, assumptions and levers to model free cash flow are described in detail on slides 22-33. Estimated average annual free cash flow range is $500-650m over 20 years under all scenarios 22 22#252021 INVESTOR DAY Historical Free Cash Flow Recent cash flows have been stable following a post IPO investment cycle KEY MESSAGES 1 Post-IPO investment to support volume growth 2 Capital discipline and operational efficiency improvement 3 FCF has been stable Free Cash Flow $1,500m $1,000m $500m $0m -$500m and resilient from FY17 ^After interest payments -$1,000m 1 2 AURIZON. Coal Volume 250mt 3 200mt 150mt 100mt -$1,500m 50mt FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21f Operating Cash Flow^ [LHS] Investing Cash Flows [LHS] Free-Cash Flow^ [LHS] Above Rail Coal Volume [RHS] Network Coal Volume [RHS] 23#26AURIZON. 2021 INVESTOR DAY Aurizon's Strategy in Uncertainty (SiU) framework SiU uses scenarios to test market drivers and evaluate capital, fleet and haulage opportunities OUR APPROACH › Assess fundamental drivers of seaborne demand for metallurgical and thermal coal > We also consider more subjective factors, such as government policy and trade considerations › Assess Australian supply considering current and future production > Scenarios also include Bulk commodity outlook to provide an integrated Group view STRATEGY IN UNCERTAINTY: KEY DRIVERS Metallurgical coal demand Thermal coal demand GDP GDP Climate policy Crude steel production Scrap availability Steel production method Domestic coal supply / import reliance Climate policy Energy intensity Energy generation and capacity mix Coal-generation fleet pipeline Domestic coal supply / import reliance Australia coal supply Operating coal mine production Australia Bulk demand Trade flows Export infrastructure Global competitiveness Domestic coal requirements Climate policy Coal mine project pipeline Infrastructure development Food consumption Energy transition Australia mine projects pipeline Australia mine life Convertible road volumes (to rail) FOCUS OF FOLLOWING PAGES 24 24#272021 INVESTOR DAY Coal volume scenarios1 A broad range of potential volume outcomes over 20 years AUSTRALIA: COAL EXPORT VOLUME (MILLION TONNES) 600mt 500mt 400mt 300mt 200mt AURIZON. Growth 20-30 | 20-40 个个 100mt Legend >2% 2010 2015 2020 2025f 2030f 2035f 2040f favourable CAGR 1 Commodity Strong 3 Port Constrained Australia 5 Carbon Constrained Asia >2% 2- Current Economics 4 Mine/Regulatory Constrained Australia -6 Rapid Decarbonisation adverse CAGR increase/ decrease vs. today 1. As noted on slide 2 these are scenarios (and associated cash flow modelling) not predictions or forecasts and do not constitute definitive outcomes for Aurizon. It is difficult to predict which, if any, of these scenarios might eventuate. Further details of the scenarios, assumptions and levers to model free cash flow are described in detail on slides 22-33. Additional scenario commentary provided in the appendix. 25#282021 INVESTOR DAY Coal volume scenarios¹ (continued) The six scenarios are based on potential outcomes to drive divergent thinking, enabling the stress-testing of the business AURIZON. Commodity Strong Higher seaborne coal demand from Asia & accelerated GDP growth No new climate change policies implemented No Australian mine/port constraints Current Economics BOF-BF2 share of crude steel production retained as dominant method of steel production in Asia Coal-fired power plants maintain typical economic life and new capacity limited to South East Asia and those under construction (globally) No Australian mine/port constraints Port Constrained Australia Port capacity constrained in Central Queensland No Australian mine constraints Equivalent GDP and demand trajectory as Current Economics Mine/Reg. Constrained Aust. New coal mines limited to probable near-term opportunities with no new greenfield capacity from 2025 Existing mine production extended where possible, no port constraint Equivalent GDP and demand trajectory as Current Economics Carbon Constrained Asia Lower GDP growth. China self sufficient in thermal coal from 2032 Earlier coal-fired power plant closure due to policy and renewables Rapid Decarbonisation Staggered retirement of global coal-fired electricity capacity, targeting oldest to newest plants. Complete closure by 2032 -20% share of global steel making is hydrogen-based DRI/EAF³ by 2040 BF-BOF2 share of global steel production reduces to -40% Australia: Coal Export Volume Australia: Coal Export Volume Australia: Coal Export Volume Australia: Coal Export Volume Australia: Coal Export Volume Australia: Coal Export Volume 2020 2030 2040 2020 2030 2040 2020 2030 2040 2020 2030 2040 2020 2030 2040 2020 2030 2040 1. As noted on slide 2 these are scenarios (and associated cash flow modelling) not predictions or forecasts and do not constitute definitive outcomes for Aurizon. It is difficult to predict which, if any, of these scenarios might eventuate. Further details of the scenarios, assumptions and levers to model free cash flow are described in detail on slides 22-33. Additional scenario commentary provided in the appendix. 2. Blast Furnace-Basic Oxygen Furnace 3. Direct Reduction Iron/Electric Arc Furnace 26#29AURIZON. Application of SiU Scenarios Aurizon draws upon six scenarios to guide decision-making in specific aspects of its business 2021 INVESTOR DAY Commodity volume scenarios 1 Commodity strong 2 Current Economics 3 Port Constrained Australia 4 Mine/regulatory constrained Australia 5 Carbon constrained Asia 6 Rapid Decarbonisation Where we use SiU scenarios Growth Capex decisions Evaluate investment options for new capital outlays $ Example Outcomes Include: Investing/not investing to grow rollingstock fleet Stay-in-business Capex decisions Customer contracts Optimise capital allocation and sustaining capex profile Locomotive and wagon overhauls, redeploying fleet to other markets Assess customer viability to underpin customer strategy and contracting New customer contracts, extensions and rate relief value trades Free Cash Flow / Valuation considerations Test business resilience and key drivers of business value Stress testing FCF and valuation, implementing no-regret FCF levers Strategic business portfolio decisions Future-proof business model and underlying portfolio exposure Prioritising growth markets, targeted cost- out and capability development Where we don't use SiU scenarios Guidance & Budgets (1-4 Years) Bottom-up contract volumes and short-term market conditions applied 27 27#302021 INVESTOR DAY Free Cash Flow methodology Across our key scenarios, we consider how Aurizon's businesses could be impacted and what Free Cash Flow levers are available COMMODITY VOLUME SCENARIOS AURIZON. TRANSLATED INTO FREE CASH FLOW IMPLICATIONS BASED ON MODELLING OF KEY AURIZON BUSINESS CHARACTERISTICS OPEX Met. VS Thermal VS Bulk Contract / Corridor Dynamics / Economics regulatory structure and fleet options 1 Commodity Strong 2 Current Economics 3 Port Constrained Australia 4 Mine/regulatory constrained Australia 5 Carbon Constrained Asia 6 Rapid Decarbonisation Scenarios 2, 4, 5 & 6 used for FCF modelling A Australian coal resilience B Aurizon regulated/contracted revenue C Aurizon cost base flexibility D Aurizon fleet versatility D Volume Revenue CAPEX E Aurizon Bulk counter-cyclicality (Growth 28#312021 INVESTOR DAY Carbon Constrained Asia: Illustrative example Aurizon Free Cash Flow is resilient¹ in response to global coal volume fluctuations AURIZON LEGEND: >2% favourable >2% adverse increase/decrease vs. today INDICATIVE IMPACT TO KEY METRICS (BASED ON ASSUMPTIONS MODELLED 2020-2040): CARBON CONSTRAINED ASIA SCENARIO [ Global Coal Demand (Volumes) Global Demand Mt (CAGR) Volume Competitive Australian Coal Exports Aus. Supply Mt (CAGR) Aurizon Contracted Volumes Revenue Aurizon Revenue OPEX Aurizon Opex CAPEX Aurizon Capex² Aurizon Free Cash Flow AZJ Mt (CAGR) AZJ $ (CAGR) AZJ $ (CAGR) AZJ $ (% delta) AZJ $ (CAGR) AURIZON THERMAL MET. NETWORK BULK AZJ GROUP MARKET дав AURIZON CAGR Compound Annual Growth Rate 1. As noted on slide 2 these are scenarios (and associated cash flow modelling) not predictions or forecasts and do not constitute definitive outcomes for Aurizon. It is difficult to predict which, if any, of these scenarios might eventuate. Further details of the scenarios, assumptions and levers to model free cash flow are described in detail on slides 22-33 2. Capex CAGR not meaningful, therefore expressed as a % delta in annualised average Capex under the scenario relative to present-day expenditure 29 29#322021 INVESTOR DAY Free Cash Flow levers Levers are available to seek to preserve Free Cash Flow under volume downside scenarios without compromising safety or reliability Free Cash Flow Levers AURIZON. Opex Efficiency > 'Variabilise' cost structure to reduce spend as volumes decline > Right-size cost base Capex Optimisation > Eliminate avoidable spend on Coal assets › Optimise spend on Bulk assets by avoiding sustaining capex through fleet redeployment Incremental FCF via Fleet Cascade › Actively redeploy surplus assets to support incremental growth opportunities in Bulk Asset Disposal > Short term lease and/or sale of surplus assets 30#332021 INVESTOR DAY Free Cash Flow assumptions Assumptions have been applied based on Aurizon's business model and current view of our scenarios1 FCF DRIVER AURIZON. ASSUMPTION APPLIED > Volume Mines at intersection of supply-demand equilibrium removed immediately from tonnage profile > > Revenue > No active market share adjustments Reduction in haulage tariffs, particularly downside scenarios Network regulatory model remains, WACC increases from FY27 based on forward curve POTENTIAL UPSIDE • Mines continue to operate at <100% with ramp- down over subsequent year(s) • Competitors withdraw or fail to make commensurate investments in capacity • Increased WACC from higher risk free rates or other inputs POTENTIAL DOWNSIDE • Weaker system economics place further downward pressure on volumes • More competition drives over-capacity and further pressure on margins • Risk free rates remain low maintaining low WACC • Regulatory model does not hold › Operating ratio held flat OPEX > > CAPEX Growth Productivity savings limited by growing diseconomies of scale (as volumes decline) Above Rail Capex elasticity with volumes < 0.8 in all scenarios (i.e., % reduction in Capex always less than % reduction in volume) > Small incremental market share capture of Bulk Rail market (aided by fleet cascade from coal) • Cost structures move towards North American Class 1 operators (~65%) Future automation benefits • Capex elasticity closer to 1:1 Capture higher share of redefined Bulk Rail and Non-Rail markets > Gearing held flat with no step-change in credit margin Other Reduce credit margin based on potential for new sources of financing • Further diseconomies of scale limit cost- savings • • Higher cost of doing business (e.g., compliance, procurement) in Rapid Decarbonisation Capex elasticity less than 0.5:1 Lack of Bulk Rail opportunities to absorb re- deployable coal fleet Bulk BU materially underperforms on growth and margins over FY22-40 • Reduce credit rating and apply ESG related debt risk premium 1. As noted on slide 2 these are scenarios (and associated cash flow modelling) not predictions or forecasts and do not constitute definitive outcomes for Aurizon. It is difficult to predict which, if any, of these scenarios might eventuate. Further details of the scenarios, assumptions and levers to model free cash flow are described in detail on slides 22-33. Additional scenario commentary provided in the appendix 31#342021 INVESTOR DAY Fleet cascade provides asset base flexibility Coal fleet most exposed to thermal coal is most useful for our Bulk growth ambitions ASSET Above Rail Units (#) WDV1 ($bn) QLD WA NSW Locomotives 600 $1.2 68% 17% 14% Wagons 12,500 $1.0 62% 24% 14% 35% >40% Facilities 11 $0.8 Darwin Thermal exposure Inter-operability Below Rail Wyndham CQCN n/a $5.0 Broome E #1 100 2,500 ($0.1bn) Port Hedland Karratha Dampler Mullewa Geraldton Morawa WESTERN AUSTRALIA Leonora Porenjort Kalgoorlie Kambalda N.A. Porth Kwinana 100% Bunbury Esperance 5 Thermal exposure Albany Inter-operability WA 1. For simplification, rounded numbers have been provided for assets and Written Down Value (WDV) 2. Units exclude wagons held in storage NORTHERN TERRITORY Alice Springs SOUTH AUSTRALIA Townsville t Bowen Cairns QUEENSLAND Cloncurry Mt Isa Hughenden Collinsville Phosphate Hill Winton Longreach Emerald Charleville Quilple Broken Hill Crystal Brook Legend Coal - CQCN (Network) Bulk City/town Port Adelaide ( NEW SOUTH WALES Murtoa VICTORIA O Melbourne Mackay Rockhampton Gladstone Bundaberg Gymple Brisbane Newcastle Sydney Wollongong Canberra TASMANIA Hobart AURIZON. QLD ($2.1bn) #1 400 E 8,200 5 100 2,000 95% >40% Thermal exposure Inter-operability NSW ($0.8bn) 32 32#35AURIZON. 2021 INVESTOR DAY Free Cash Flow scenarios1 Under the scenarios tested, modelling indicates average annual free cash flow over 20 years of -$500-$650m AURIZON FREE CASH FLOW ($M) COAL VOLUME SCENARIO4 $734 $704 $669 $715 $700 2 Current Economics $100 $165 3 Port Constrained Х Х Х Х 4 Mine / regulatory constrained Australia ~$500-$650m 5 Carbon constrained Asia $600 $550 6 Rapid Decarbonisation FY17 FY18 Sale of Rail Grinding FY19 FY20 FY21f Underlying Free Cash Flow Scenario Avg. FY22- FY40 Sale of Acacia Ridge² X Dividends Paid³ 1. As noted on slide 2 these are scenarios (and associated cash flow modelling) not predictions or forecasts and do not constitute definitive outcomes for Aurizon. It is difficult to predict which, if any, of these scenarios might eventuate. Further details of the scenarios, assumptions and levers to model free cash flow are described in detail on slides 22-33. 2. Net of tax (Rail Grinding tax of $38m paid in FY21 and Acacia Ridge tax of $32m paid in FY21) 3. Dividends paid is shown during the period where the cash dividend was paid (rather than reporting period that the dividend was based on) 4. Commodity Strong scenario not modelled in detail but average annual (nominal) cash flows estimated to be greater than $650m over the period to FY40 33#362021 INVESTOR DAY AURIZON. Shareholder returns Stable cash flows have historically provided certainty on distributions with strong balance sheet providing optionality for capital management or growth AVERAGE PER YEAR¹ OPERATING CASH FLOWS $1.1b Д DEMONSTRATED DISCIPLINE TO RETURN CAPITAL WHEN APPROPRIATE Cumulative Shareholder returns since FY2016 ($b)² $5.0b > $1.3bn share buy-backs completed since 2016 > Additional debt funding capacity of ~$900m available under current BBB+/Baa1 credit rating thresholds SUSTAINING & GROWTH CAPEX ($0.5b) $4.0b > Outcome of ongoing ATO declaratory relief proceedings does not affect ability to execute future on-market buybacks but may impact short-term dividend franking levels $3.0b DIVIDENDS (100% PAYOUT) SURPLUS FREE CASH FLOW ($0.5b) ↓ $0.1b (FOR GROWTH OR CAPITAL MANAGEMENT) 1. Average of FY2016-FY2020 2. Dividends paid is shown during the period where the cash dividend was paid (rather than reporting period that the dividend was based on) $2.0b $1.0b $0.0b 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 Buy-back Dividends Paid 34#372021 INVESTOR DAY Funding update With resilient Free Cash Flow, Aurizon's credit profile is strong and debt markets remain supportive EFFECTIVE RAISINGS EXTENDED MATURITY PROFILE1 IMPROVED METRICS > Network: Issued 10-year, $500m A$ Medium Term Note (AMTN) in Sep 2020, with 2.9% coupon > Aurizon Operations: Issued debut 7-year, $500m AMTN in March 2021 with 3.0% coupon › Bank debt: No maturities until FY23 with $1.5bn in available liquidity as at 31 May 2021 1. As at 31 May 2021 2. Calculated on drawn debt, excluding working capital facility 3. S&P/Moody's 500 50 75 50 150 290 300 778 711 AURIZON. CURRENT 1HFY20 Weighted average maturity (years)2 4.5 4.0 Group interest cost on 4.3% 4.5% drawn debt Operations & Network BBB+/ BBB+/ 500 500 Credit Ratings³ Baa1 Baa1 460 425 FY22 FY23 FY24 FY25 FY26 FY27 82 FY28 FY29 FY30 FY31 INTEREST RATES > 89% fixed to end FY2021 and 86% for FY2022-23, floating beyond FY2023 to align with Network WACC reset > Interest costs expected to trend lower consistent with hedging profile Operations: Undrawn Bank Debt Network: Undrawn Bank Debt Operations: Drawn Bank Debt Network: Drawn Bank Debt Network: EMTN Operations: AMTN Network: AMTN 35#38Bulk Update Clay McDonald Group Executive Bulk POMR AURIZON#392021 INVESTOR DAY Growing Bulk Build off our existing Bulk base and expand across the value chain Expand across the supply chain Production-to-port capability to better serve customers Aspire to double the size of the business Targeting a larger market1 (EBIT profit pool) From To ~$1.25b Safe & reliable operations executed by professional and empowered people A Flexible, agile and responsive to customers EBIT growth Net Revenue EBIT ~$250m 5x +2x #1 Today Med Term Aspiration Rail Expanded supply chain Innovative solutions across Efficient and cost effective supply chain solutions 1. Refer to additional detail on slide 20 AURIZON. 37#402021 INVESTOR DAY Well-positioned for growth Successfully turned the Bulk business around, and the next phase of growth is underway Aurizon Bulk EBIT Phase 2 growth . • Expanded product mix Production-to-port capability Services across modes (not just rail) . Turnaround and Phase 1 growth Underpinned by safe, agile, efficient operations ✓ Cost base optimisation ✓ Contract negotiations/ variations ✓ Incremental rail growth >$100m ~2x ($14m) Where we started (FY17) Where we are today (FY21) Where we want to be AURIZON. 38#412021 INVESTOR DAY AURIZON. Bulk value chain Our customers' needs drive our broader focus on Bulk logistics, which we expect to be ~$1.25bn profit pool in ten years Drivers for expansion out from current rail core Customers increasingly want end-to-end, integrated solutions Australian and global players are building end- to-end capability There is value from integration and taking out friction in supply chain steps Opportunity to aggregate and make the asset base more efficient Targeted methodology to estimate profit pools across the heavy haul bulk value chain Estimated overall bulk commodity volumes by commodity type, geography and value chain step Exclusion of bulk volume considered not addressable (e.g. Pilbara Majors' iron ore) Industry intelligence informed price and margin assumptions by commodity and region to give a profit pool sizing Basin plans informed an aspirational and path-dependent view of Aurizon's Bulk business size ~$1.25bn expected profit pool in FY30 39#422021 INVESTOR DAY Bulk: Australian mine projects There are over 1,400 mine projects1 across Australia, with copper, iron ore and nickel the dominant commodities Copper Iron Ore Nickel Zinc Lanthanides Lead Molybdenum Phosphate Graphite Tin Potash Lithium All Others Perth. 1. S&P Market Intelligence (Mine projects: Commodities - excludes precious metals, Project status - exploration to pre-production) AUSTRALIA Brisbane Melbourne Sydney AURIZON. 40 40#432021 INVESTOR DAY Aurizon Port Services Townsville Newcastle AURIZON. Infrastructure: Hardstand upgrade nearing completion (100% increase in capacity) and development of unique direct rail access well progressed Connected: Strategically linked to the Mount Isa Minerals province Expanded Services: Connecting port, trucking and storage services to rail Simplicity: Simple operating and labour model that is scalable (currently operating at 50% capacity) Connected: Strategically linked to the Cobar Minerals province of NSW Expanded Services: Connecting port, materials handling and storage services to rail 41#442021 INVESTOR DAY Bulk continues to demonstrate agility Iron Ore: Mineral Resources Limited Agile Mobilisation: Increased fleet leased to MRL including redeployment of coal locomotives from the Hunter Valley Operational Flexibility: Additional mine load point with services now operating to Esperance Port & Kwinana Bulk Terminal Grain: South East Queensland • AURIZON. Short term opportunity to deploy stored QLD grain consists • Flexible labour model . Clear road to rail strategy Grain: Western Australia • • Surge capacity mobilised to deliver increased CBH volume in Geraldton region Full service Aurizon crewing and fleet solution deployed within weeks 42 42#452021 INVESTOR DAY Grow in a disciplined way Targeting 10% share of new segments with disciplined capital investment Port Hedland Karratha Dampler Broome WESTERN AUSTRALIA Leonora Mullewa Geraldtone Morawa Kalgoorile ●Peranjori Kambald Perth e Kwinana Bunbury Legend Coal CQCN (Network) Bulk City/town Port Esperance Alba Wyndham Darw AURIZON. NORTHERN TERRITORY Alice Springs SOUTH AUSTRALIA Tarcoola Calmns QUEENSLAND Townsle Cloncurry It Isa Bow Hughenden Phosphate Hill Collinsville Nawlands ( Mackay Goonyello Winton Longreach ockwater Rockhampton Emerald Meurs Charleville Quilple Broken Hill Crystal Brook Adelaide Toowoomba Gunnado Hunger Valley NEW SOUTH WALES Gladstone Bundaberg Gymple Psbane Newcastle Syd y Wollongong We will grow Bulk from our strong geographic presence Build on existing presence in WA and QLD Establish offerings in new basins in a prioritised way > Targeting ~10% of new heavy haul bulk segments Murtoa VICTORIA Melbourne Canberra TASMANIA Hobart "Behind-the- Inland storage gate" haulage and handling Rail transport Road transport Coastal shipping Port storage and handling 43#46Coal Update Ed McKeiver Group Executive Coal AURIZON 11 3833 3833 0 AURIZON#47AURIZON. 2021 INVESTOR DAY Coal Haulage Strategy With a strong contract book, Coal's mission is to improve ROIC and preserve cash flows while delivering excellent service, safely for our customers ROIC and cashflow focus Revenue pressure T Transformation and capital productivity Transformation to target unit cost and capital productivity improvements to mitigate revenue pressure and lift ROIC Optimise capital and fleet to strengthen key contracts and open Aurizon wide opportunities Service Excellence Maximise Enterprise Earnings & Valuation Continually Assess Capital Allocation Safe & Reliable Proactive Fleet Optimisation Minimise Capital Deployed 田 Delivering Customer Value XC Best Match Assets to Earnings Streams Efficient & Sustainable 45#482021 INVESTOR DAY Proactive management of contract pipeline AURIZON. Coal has a secure, long dated contract book, as demonstrated by contract wins announced today CONTRACT WINS AND RATES OUTLOOK COAL CONTRACT VOLUME EXPIRY BY YEAR1 AS AT 7 JUNE 2021 Contract extension and market share win 75 Anglo ✓ Goonyella: new agreement across various mines ✓ Blackwater: new agreement for German Creek mine ✓ Moura: extension of Dawson mine Million tonnes per annum 60 45 30 30 Expected to trend down over near term 15 Rates • • Contracts ending (New Acland, Stanwell, other Hunter Valley contract) Recontracting impacts 0 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Contracted volume expiry Contract movement from Dec 2020 1. Announced contract tonnages may not necessarily align with current contract tonnages. Incorporates contract extension options where applicable. Includes immaterial variations to volume/term not announced to market. This represents the forecasted contracted tonnes as at 7 June 2021 and includes nominations, options and other uncertain events that have the potential to cause variance in Aurizon contract tonnes 46#492021 INVESTOR DAY AURIZON. Integrated program will transform Safety, Service & Productivity Coal's Integrated Transformation Plan will continue to safely deliver unit cost and capital productivity improvements to mitigate revenue pressure and lift ROIC 1. PRECISION Fewer trains, more cycles Optimise cycle plans On time performance to plan Reduced train dwell Increased mainline velocity Improved crew utilisation ROIC influenced by: Yield (Costs, Pricing, Risk); and Capital Productivity (Throughput, Utilisation, Efficiency) 3. TRAINGUARD Supervisory Braking Control • SPAD reduction • Reduced disruption . Headway compression CONDITION MONITORING . Pathway to single driver SITE MINE Faster, Heavier, Safer 2. ASSET MANAGEMENT (ARAM¹) Improved reliability, less spend • Reduced failures in traffic Condition based maintenance Standard work practices • Component changeout . Optimised supply chains Improvement in traincrew productivity 1. Above Rail Asset Management PORT 4. TRAINHEALTH Real time data capture YARD • Improved train handling . Reduced energy consumption . Failure prevention Improvement in consist productivity Faster section run times Integrated Transformation Plan benefits Reduction in maintenance costs 47#502021 INVESTOR DAY Precision AURIZON. Releasing capacity and improving asset productivity in CQCN, Coal has focused on levers that improve yard discipline to deliver time back to the schedule CASE STUDY: BLACKWATER Disciplined focus on value levers in Coal have assisted in the delivery of a -2.5-hour reduction in yard time in Callemondah Callemondah Yard Improvement Safely built and deployed 124 wagon blocks¹ Shunting hours have reduced 35% per week against July 20 Reduced provisioning time by 30 mins for diesel consists and 20 mins for electric consists Electric consists now perform (on average) 3 cycles with no provisioning Introduced disciplined yard planning to reduce variation in operations and maintenance activities 98% on time departure at Callemondah Over 330 hours of consist time per week handed back to Network scheduling through improved yard execution. Equivalent to an additional two consists 1. Wagon block represents a group of 26 wagons 2. Comparison period March-May 2021 compared to March-May 2020 3. RE-Reliability Examination EE-Electronic Examination CASE STUDY: GOONYELLA In Goonyella, cycles per consist have increased -9%² through reduced consist downtime and ready to depart time Reduced plan yard time by 50 mins for every service Consists now perform (on average) 7 cycles with no provisioning Reduced consist downtime for maintenance activities (RE/EE³) by 40 hours per week (on average) by leveraging condition monitoring technology and completing more maintenance activities off train On Train Repair at Jilalan yard 48#51AURIZON. 2021 INVESTOR DAY Optimising maintenance ARAM1 is a multi-year transformation program improving maintenance strategies, planning and execution, driving improved asset availability and reliability HUNTER VALLEY ROLLINGSTOCK CANCELLATIONS 40 anes: 30 50 20 20 10 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jilalan wagon overhaul facility 0 CASE STUDY: 2800 CLASS COMPONENT CHANGE OUT (CCO) AT STUART DEPOT Traditional overhaul • Broad scope & long duration Fixed time interval • Early & more frequent change out of components CCO • . Scope & timing align with condition Component change spread over multiple intervals Longer component life Average 10-15% reduction in locomotive overhaul costs for 2800 class Average 25% reduction in loco downtime in overhaul - improved asset availability 1. Above Rail Asset Management CCO Engine Change at Stuart depot 49#522021 INVESTOR DAY Targeted investments in technology TrainGuard and TrainHealth will provide a step change in safety outcomes and productivity for Coal TRAINGUARD · Transform safety outcomes > 80% of SPADS¹ would have been prevented by TrainGuard Provides a pathway to driver only operations First deployment on Blackwater mainline 1HFY23 - project managing schedule delays attributed to supplier performance Future deployment stages are Goonyella mainline and Blackwater branch lines INDICATIVE BLACKWATER DEPLOYMENT TIMELINE AURIZON. TRAINHEALTH CASE STUDY2: REDUCING DRIVER VARIABILITY Section Run: October 2020 70 60 50 40 30 20 10 70 Section Run: April 2021 60 50 We are here now Factory Acceptance Testing complete Loco Final Rail installation complete DOO Implemented in FY23 (subject to consultation) 30 Safety Case 20 10 2021 Site Balise installation complete Integration Testing complete Callemondah to Bluff Business Solution Ready 0 Target run Impact of removal of TSR3 TrainHealth impact Median run Normal range (IQR) TrainHealth has contributed to a 5% improvement in the section run time above, driving improved TAT and performance. Over 1,600 coaching conversations Year-to-date 1. Signal Passed At Danger (SPAD). Based on the Blackwater and Goonyella corridors for the period June 2019 to May 2021 2. Based on a sample size of approximately 400 services in October 2020 and 1000 services in April 2021 for Blackwater section (20km) BW-03ML 3. Train Speed Restriction 50#53AURIZON. 2021 INVESTOR DAY Hunter Valley With a flat volume outlook, the focus in the Hunter Valley is around retaining existing contracts, service delivery, capital efficiency and cost transformation HUNTER VALLEY FOCUS AREAS NSW VOLUMES (mt) Footprint consolidation Workforce management Capital efficiency • Reduce four operating sites to three A A Optimise crew deployment models to better align resources to demand Maintenance optimisation (embed ARAM strategies) !!!!! • • • 29 29 47 43 44 41 38 34 62 55 52 59 58 Right sized and aligned the workforce to demand Enterprise Agreement renewal from November 2021 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Disciplined use of capital, investments to target cost out Cascade locomotives to Bulk for revenue opportunities • Hexham turning angle driving productivity Lengthen inspection intervals on rollingstock . Increase asset availability and reduce spares pool . Continue to progress Component Change Out (CCO) Leverage Branxton condition monitoring supersite Hexham 51 57#54X Network Update Pam Bains Group Executive Network AURIZON#552021 INVESTOR DAY Objectives for Network Provide earnings stability and enhance supply chain competitiveness through safe, reliable and efficient operations Embed UT5 Customer Agreement Enhance Supply Chain Competitiveness Drive Long Term Stability Realise benefits for all stakeholders Safety and performance culture Support Independent Capacity Assessment Process Customer aligned Maintenance & Renewals 00 Precision Planning and Operations Efficiency and innovation Regulated revenue Supporting metallurgical coal rich Bowen Basin 53 53 AURIZON.#56AURIZON. 2021 INVESTOR DAY UT5 Outcomes UT5 delivered significant regulatory reform and a range of material benefits for both customers and Network Key Features Capacity Assessment Reporting 10 year Agreement Maintenance & Operating Allowances Rebate Mechanism Key Benefits Long Term Certainty 10 year undertaking term (2017-2027) Capacity Review WACC Improved Return Transparency Efficiency Benefits Performance Independent review and mechanisms to remedy any deficits Return better reflects the risks of owning and operating the Central Queensland Coal Network Enhanced reporting & engagement on maintenance and renewals budgets Operating cost efficiencies retained by Aurizon Rebate mechanisms to incentivise performance 54#572021 INVESTOR DAY Independent Capacity Assessment Report (ICAR) Independent Expert currently assessing Deliverable Network Capacity (DNC) of the CQCN decision expected Q1 FY22 ICAR PROCESS IF APPLICABLE, THERE ARE THREE METHODS OF ADDRESSING CAPACITY DEFICIT Independent Expert completes ICAR (Expected Q1 FY22) Existing Capacity Deficit Identified No Existing Capacity Deficit Identified Network initial Stakeholder Consultation response (20 business days) WACC uplift triggered Rebate calculation period commences 1. Any addition expenditure to be added to the Regulatory Asset Base (RAB) Network and customers agree operating or maintenance changes to rail infrastructure, load outs, or rollingstock operations Customers have ability to relinquish capacity for no fee Network final response (3 months after ICAR) Network contributes up to $300m1 in capital expenditure if required to address any existing capacity deficit identified - AURIZON. 55#582021 INVESTOR DAY Maintenance and Renewals Strategy and Budget (MRSB) Constructive engagement provides benefits for both Network and Customers AURIZON. Key Benefits of MRSB Engagement Customers ✓ Visibility of future asset requirements and cost drivers Ability to influence asset management strategy for each Coal System Increased Network accountability to deliver planned maintenance and renewal activity Annual MRSB Approvals Process 30 November Network submits initial Draft MRSB for each Coal System to Rail Industry Group (RIG)1 1 January RIG Feedback provided to Network 21 January Network submits Final Draft MRSB to RIG Aurizon Network Flexibility to adjust costs based on asset need during regulatory period Annual process reducing potential forecast risk Customer pre-endorsement of renewal spend 14 February RIG advises End User voting outcome (Special Majority required) If an MRSB is not approved, RIG may propose an alternative budget Network may either accept the alternative or submit a proposal to the QCA for determination Outcome incorporated in annual Reference Tariff review process 1. RIG forum comprised of End Users, Access Seekers and Railway Operators (voting in each system restricted to End Users only) 56#59AURIZON. Capex ($m) 2021 INVESTOR DAY Capital requirements Capex is determined on an annual basis in consultation with customers who have influence on the strategy and budget KEY FEATURES OF REGULATORY ENVIRONMENT > Network earns a fixed return each year on the approved asset base > > > › Regulated Asset Base (RAB) is rolled forward annually with adjustments for inflation, depreciation, capital expenditure and asset disposals Capex is directly related to the safety and reliability of the supply chain > Network objective is to provide an appropriate level of asset renewal to promote the safety, reliability and performance while ensuring that Committed Capacity is delivered Compared to Above Rail, Network has less ability to flex capital expenditure budgets › Spend determined annually with customers on a system-by-system basis Network has agreed to fund expansions of (i) up to $300m (if HISTORICAL NETWORK CAPEX ($M) RAB ($b) LO 6 5.4 5.5 700 5.4 624 5.2 595 569 600 5 4.6 4.2 4.1 500 4.4 4 336 281 429 363 400 3 80 283 281 252 5 251 300 16 1 200 259 288 283 276 1 247 250 265 195 100 0 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 RAB [LHS] Growth [RHS] Non-Growth [RHS] 2 required) to address any Existing Capacity Deficit identified in the ICAR and (ii) thereafter up to $30m p.a where it would benefit more than one access holder or seeker under UT5 Following completion of GAPE and WIRP projects, Network's capex profile has stabilized and centered on sustaining activity Notes Value of asset renewal activities represented in the chart above reflects the capital expenditure incurred by Aurizon Network in a given year. By comparison, capital expenditure submitted for inclusion in the Regulated Asset Base (RAB) as per Schedule E of the 2017 Access Undertaking is on an 'as commissioned' basis Represents Pricing RAB at the beginning of relevant financial year and excludes AFDs. Note: Ballast undercutting expenditure capitalised for accounting purposes since 1 July 2011. Prior to FY20 ballast was expensed against the maintenance cost allowance and excluded from the RAB. From FY20 ballast undercutting expenditure is capitalised and included in the Capital Indicator/RAB. 57#602021 INVESTOR DAY Supply chain efficiency Network is focused on delivering a safe, reliable and efficient supply chain through Precision Planning and Operations and Innovative Efficiency Initiatives DISCIPLINED TRAIN OPERATIONS (DTO) DTO implemented across the CQCN to increase predictability ✓ Improving schedule adherence, reducing variability ✓ Increasing predictability for all stakeholders Enabling integrated above and below rail planning benefits CQCN CANCELLATIONS: OPERATOR & NETWORK CAUSED 400 300 ENHANCED PLANNING AND SCHEDULING AURIZON. Optimising planning and maintenance to deliver improved throughput Using transparency afforded by Advanced Planning and Scheduling (APS) technology to enhance capacity preservation Reduced 'clumping' of maintenance activities and roster adjustments to spread maintenance activities 7 days/week in Blackwater to improve train path distribution Modern Scheduling trial to deliver integrated above and below rail planning across all Coal systems SERVICES PLANNED NORMALISED PER PERCENTAGE OF NETWORK AVAILABILITY (BLACKWATER) 200 -35% 4,109 100 3,413 3,454 3,105 2,948 3,538 uullal 3,193 3,138 3,112 3,057 3,068 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY21 FY21 Average FY20 FY20 Average FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY21 Q1 FY21 Q2 FY21 Q3 58#612021 INVESTOR DAY AURIZON. Supply chain efficiency (continued) Network is focused on delivering a safe, reliable and efficient supply chain through Precision Planning and Operations and Innovative Efficiency Initiatives AUTOMATED TRACK INSPECTION SYSTEM (ATIS) Advanced inspection technology to improve reliability and efficiency › Trialling ATIS technology to deliver precise track and overhead alignment information at line speed from equipment mounted on coal carrying services Increased frequency of data capture will enable more timely defect identification, reduce delays and cancellations Enhanced predictive maintenance capability will improve maintenance planning, reduce cost and preserve usable capacity Project Milestones 2020 Track Geometry Measurement System Trial VALUE-ADDED TOOLS Providing crew the right equipment in the right place at the right time › Providing standardised value added equipment in order to: Reduce delays and double handling Increase crew productivity Minimise safety risks Example: Standardised Welder's Truck • HI-Ab Crane enables delivery of 6m rail and removal of scrap in one trip 2021 Overhead Wire Measurement System Trial 2022+ Rollout across CQCN1 1. Subject to Customer Approval Water tank & pump to manage hot works and any potential fire hazards • Inverter to charge battery powered equipment in field • Tail Gate lifter to lift equipment on & off truck and reduce manual handling • Increased fuel efficiency and reduced emissions 59 59#62Contact and further information Chris Vagg Head of Investor Relations & Group Treasurer +61 7 3019 9030 [email protected] James Coe Manager Market Intelligence & Investor Relations +61 7 3019 7526 [email protected] ASX: AZJ US OTC: AZNNY AURIZONⓇ#63Appendix ARCOK AURIZON#642021 INVESTOR DAY Coal volume scenarios Aurizon's first two scenarios are based on current and upside Asian demand trends 1 Commodity Strong 2020 2030 2040 Higher seaborne coal demand from Asia & accelerated GDP growth No new climate change policies implemented No Australian mine / port constraints 2 Current Economics 2020 2030 AURIZON. 2040 Blast Furnace-Basic Oxygen Furnace (BOF-BF) share of crude steel production retained as dominant method of steel production in Asia Coal-fired power plants maintain typical economic life and new capacity limited to South East Asia and those currently under construction (globally) No Australian mine / port constraints Key assumptions 2020 2040f Key assumptions 2020 2040f GDP growth, Asia (CAGR to 2040) ~4.0%¹ Steel production, India BOF-BF share, Asia 100mt² 81%3 Coal-fired power generation, China Coal share of electricity mix, Asia Australian share of seaborne market 4,859TWh4 59%4 30%5 ~280mt -75%1 ~3,300TWh -20%1 -40% GDP Growth, Asia (CAGR to 2040) Steel production, India ~3.5%¹ BOF-BF share, Asia 100mt² 81%3 ~250mt -75%1 Coal-fired power generation, China Coal share of electricity mix, Asia Australian share of seaborne market 4,859TWh4 ~3,200TWh 59%4 -20%1 30%6 ~40% 1. Selected nations: China, India, Japan, South Korea, Taiwan, South East Asia (including Indonesia); 2. World Steel Association; 3. World Steel Association (2019 data); 4. International Energy Agency, Electricity Information 2020 (South East Asia; 2018, all other nations: 2019); 5. International Energy Agency, Coal 2020 (2019 data) 62#652021 INVESTOR DAY Coal volume scenarios Aurizon's second two scenarios test different Australian supply constraints 3 Port Constrained Australia 2020 2030 2040 Port capacity constrained in Central Queensland No Australian mine constraints Equivalent GDP and demand trajectory as Current Economics 4 Mine/Regulatory Constrained Australia 2020 2030 AURIZON. New coal mines limited to probable near-term opportunities with no new greenfield capacity from 2025 Existing mine production extended where possible, no port constraint Equivalent GDP and demand trajectory as Current Economics Key assumptions 2020 2040f Key assumptions 2020 2040f Australian coal terminal expansions Central Queensland coal terminal utilisation 70%1 No expansion 7 -85% Australian new coal developments Australian share of seaborne market ~30 mtpa capacity 30%2 -25% Australian share of seaborne market 30%2 7 -35% 1. Port/Terminal reporting (based on port/terminal nameplate capacity of 292mtpa); 2. International Energy Agency, Coal 2020 (2019 data) 2040 63 65#662021 INVESTOR DAY Coal volume scenarios Aurizon's final two scenarios assume lower Asian economic development and/or rapid decarbonisation effort 5 Carbon Constrained Asia 6 Rapid Decarbonisation 2020 2030 2040 Lower GDP growth. China self sufficient in thermal coal from 2032 Earlier coal-fired power plant closures 2020 2030 AURIZON. Staggered retirement of global coal-fired electricity capacity, targeting oldest to newest plants. Complete closure by 2032 ~20% share of global steel making is hydrogen-based Direct Reduced Iron/Electric Arc Furnace (DRI/EAF) by 2040 Key assumptions 2020 2040f Key assumptions 2020 GDP growth, Asia (CAGR to 2040) ~3.0%¹ BOF-BF3 share, Global Steel production, India 100mt² BOF-BF3 share, Asia 81%2 Coal-fired power generation, China Coal share of electricity mix, Asia Australian share of seaborne market 4,859TWH4 59%4 30%5 ~230mt ~70%1 ~1,000TWh -10%1 -40% BOF-BF3 share, Asia Coal-fired power generation, China Coal share of electricity mix, Asia¹ Assumed Average Life of Asian Coal Power Plants 72%2 81%2 4,859TWh4 59%4 لا ~20 years 2040f -40% -50%1 2040 1. Selected nations: China, India, Japan, South Korea, Taiwan, South East Asia; 2. World Steel Association (2019 data); 3. Blast Furnace-Basic Oxygen Furnace.4. International Energy Agency, Electricity Information 2020 (South East Asia; 2018, all other nations: 2019); 5. International Energy Agency, Coal 2020 (2019 data) 64#672021 INVESTOR DAY Australia Coal Summary 2020 Export¹ 371mt 2020 All Coal Export (By Destination)³ 104mt Asia: 94% 2020 All Coal Export (By Port)4 158mt 74mt State Split² 53mt 28% 46mt 101mt 71mt 40mt 20% 31mt 14% 23mt 30mt 12% 166mt (44%) 11% 206mt (56%) 8% 6% 7mt 4mt Japan China India South Korea Taiwan Rest of Asia Rest of World Newcastle Hay Point Gladstone Abbot Point Port Kembla Brisbane AURIZON. Export Revenue¹ $44b Total Production5 434mt Domestic Use6 61mt QLD NSW 2020 Metallurgical Coal Export (By Destination)1 45mt Coal Type¹ 2020 Thermal Coal Export (By Destination)1 73mt Asia: 89% Direct Employment7 Asia: 98% 39mt 31mt 200mt (54%) 172mt (46%) 35mt 26% 37% 18mt 23% 17mt 29mt 18% 22mt 23mt 38k Aust. Electricity Generation Share8 45% 11mt 10mt 18% 14mt 10% 11% 14% 6% 7% 11% 11% 7% Metallurgical Thermal India China Japan South Korea Taiwan Rest of Asia Rest of World Japan China South Korea Taiwan Vietnam Rest of Asia 5mt _2% Rest of World Royalties⁹ $5.0b Note: Due to different sources and rounding, the sum of individual elements may not equal the corresponding aggregate figure. Sources: 1.Australian Bureau of Statistics (ABS). 2.Respective port/terminal reporting. 3.ABS (includes anthracite, not otherwise shown). 4.Respective port/terminal reporting (Hay Point includes both Hay Point Coal Terminal and Dalrymple Bay Coal Terminal). 5.Office of Chief Economist (OCE) Resources and Energy Quarterly March 2021. 6.OCE Resources and Energy Quarterly March 2021 (FY20 data, calculated as production less export volume). 7.ABS Labour Account Australia (FY20 data). 8. Department of Industry, Science, Energy and Resources (2020), Australian Energy Statistics (FY2019 black coal only). 9.QLD Treasury Budget Strategy and Outlook (2020-21) - Budget paper No.2 (FY20 data), NSW Department of Planning, Industry and Environment (FY20 data) 65#682021 INVESTOR DAY Enterprise Agreements Enterprise Agreement # Staff Covered (approx.) Headline Increases Term Expiry Date Status (years) Year 1 Year 2 Year 3 Year 4 Aurizon Port Services¹ 45 3 Nov 2021 2.5% 2.5% 2.5% Bargaining NSW Coal 320 3 10 Nov 2021 2.5% 2.5% 2.5% Planning WA Rail Operations 370 4 30 June 2022 1.5% 2.0% 2.0% 2.25% Planning Traincrew & Transport Operations 2.5% 2.3% 2.25% QLD Coal 1240 3 11 Nov 2022 Complete Maintenance 2.0% 2.0% 2.0% Traincrew & Transport Operations 2.5% 2.3% 2.25% QLD Bulk 370 3 24 Jan 2023 Complete Maintenance 1.5% 2.0% 2.0% QLD Staff QLD Infrastructure WA Rollingstock Maintenance 90 00 800 4 30 Jan 2023 2.1% 2.1% 2.25% 2.25% Complete 540 4 27 May 2023 2.1% 2.1% 2.25% 2.25% Complete 4 10 May 2025 3.0% 3.0% 2.5% 2.0% Complete 1. As part of the acquisition of Townsville Bulk Storage and Handling (TBSH) in March 2020 (renamed Aurizon Port Services), the TBSH Enterprise Agreement transferred to Aurizon by operation of the Fair Work Act 2009. 66 99 AURIZON.#692021 INVESTOR DAY Glossary Metric Access Revenue AFD Average haul length Contract utilisation CQCN dGTK ESG Footplate hours Free cash flow (FCF) FTE FWC GAPE Gearing Gross Contracted NTKs GTKs Maintenance MAR Mtpa NTK Operating Ratio Opex Payload PIA QCA ROIC TCFD Take-or-Pay Underlying Velocity WACC WIRP Description Amounts received by Aurizon Network for access to the Network infrastructure under all Access Agreements Access Facilitation Deed NTK/Total tonnes Total volumes hauled as a percentage of total volumes contracted Central Queensland Coal Network Diesel fuel used per Gross tonne kilometre. GTK is a unit of measure representing the movement over a distance of one kilometre of one tonne of vehicle and contents including the weight of the locomotive & wagons Environment, Social & Governance A measure of train crew productivity Net operating cash flows less net cash flow from investing activities less interest paid Full Time Equivalent - The number of unique employee positions filled by all Aurizon employees (excluding contractors/consultants) as at period end. The NTK/Employee metric for the half year is annualised for comparative purposes and uses period-end FTE Fair Work Commission Goonyella to Abbot Point Expansion Net debt/(net debt + equity) Gross contracted tonnages multiplied by the loaded distances (calculated on a contract by contract basis) Gross Tonne Kilometres Maintenance costs exclude costs associated with traction, telecommunication, ballast and undercutting, rail renewals, flood repairs and derailments Maximum Allowable Revenue that Aurizon Network Pty Ltd is entitled to earn from the provision of coal carrying train services in the CQCN Million tonnes per annum Net Tonne Kilometre. NTK is a unit of measure representing the movement over a distance of one kilometre of one tonne of contents excluding the weight of the locomotive and wagons 1 - EBIT margin. Operating ratio calculated using underlying revenue which excludes interest income & significant items Operating expense including depreciation and amortisation The average weight of product hauled on behalf of Aurizon customers per service, calculated as total net tonnes hauled / total number of services Protected Industrial Action Queensland Competition Authority ROIC is defined as underlying rolling twelve-month EBIT divided by the average invested capital. The average invested capital is calculated as the rolling twelve-month average of net assets (excluding cash, borrowings, tax, derivative financial assets and liabilities) Task Force on Climate related Financial Disclosures Contractual Take-or-Pay provisions entitles Aurizon Network to recoup a portion of any lost revenue resulting from actual tonnages railed being less than the regulatory approved tonnage forecast Underlying earnings is a non-statutory measure and is the primary reporting measure used by Management and the Group's chief operating decision making bodies for the purpose of managing and determining financial performance of the business. Underlying results differ from the Group's statutory results. Underlying adjusts for significant/one-off items The average speed (km/h) of Aurizon train services (excluding yard dwell) Weighted average cost of capital Wiggins Island Rail Project 40 67 AURIZON.