Investor Presentaiton
Capex Growth
-
GROWTH CAPEX IS DISCRETIONARY – MUST MEET INVESTMENT CRITERIA
350.0
300.0
250.0
200.0
-
Short to Medium Term Return Capex ($m)
150.0
88.2
100.0
189.6
81.4
78.7
127.3
194.3
172.1
128.7
50.0
98.9
84.3
0.0
FY18
FY19
FY20
FY21
FY22
Growth
Acquisitions
120.0
100.0
80.0
60.0
40.0
Medium to Long Term Return Capex ($m)
113.1
87.2
52.0
39.6
20.0
31.5
0.0
FY18
FY19
FY20
FY21
FY22
MLP Terminal
•
QUBE
Growth and acquisition capex is discretionary given Qube can select not to make the
investment if investment criteria are not met.
Growth capex typically results in quick incremental contributions to earnings as the assets are
deployed and contracts commence.
There may be a ramp up period (to full earnings potential) as a new operation is fully
established, particularly for large, complex new projects ie BlueScope rail contract.
Payments for larger assets may be staggered (progress payments) until final delivery and
commissioning of the asset, delaying the commencement of earnings.
Acquisition capex again typically delivers immediate contributions to earnings, albeit full
contributions to business case may take time based on a number of factors.
Targeted returns on capital (>10%) would typically take 1-3 years.
Bulk of spend to date has been on the IMEX terminal at Moorebank (MLP).
The carrying value of IMEX was impaired by $156m in FY21.
A further $140-160m forecast on the IMEX and Interstate terminals in FY23 (excluding
deferred consideration of $100m from LOGOS – relates to stage 1 of the Interstate).
Both assets will only reach breakeven once MLP is more fully built out and tenanted (likely ~3-
5 years) and the switch from road to rail is more fully embraced.
Achieving targeted returns likely to take ~5-7 years.
Qube also benefits from these assets across other parts of its network.
The Interstate terminal is forecast to cost $154m for stage 1. On completion Qube will own
65%, LOGOS 25% and NIC 10%.
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