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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. 57
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