Investor Presentaiton
AURIZON.
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.
57View entire presentation