Creating Stakeholder Value slide image

Creating Stakeholder Value

Supporting distribution growth Long-term distribution growth expected to be supported by traffic growth, inflation-linked toll escalations and balance sheet capacity Traffic growth expected to drive long-term distributions 2,000 1,500 1,000 500 Near-term protection from hedging and inflation-linked tolls¹ 400 Growth in asset base over time to support 150 120 300 traffic volumes and distributions 90 60 200 € 100 30 0 The benefit of a 1% increase in CPI is likely to be greater than the cost impact of 1% higher interest rates, in the near term used in sensitivity analysis chart Latest CPI data is higher than CPI FY12 FY14 FY16 FY18 FY20 Gross distributions ($M) FY22 FY24 Total asset length FY26 Capacity available to internally fund new assets ($B) Illustrative CPI revenue impact FY22-FY25 - price escalation at annualised June 2021 quarter CPI + 1% on FY21 revenue Illustrative interest rate impact FY22-FY25 - near term debt maturities refinanced at interest rate of 5% (1% above Transurban's current average cost of debt) Illustrative margin impacts 1H22 73.0% - 74.0% 3.4 Corporate liquidity² -4.5-5 Expected Capital Releases (FY22-25) Anticipated capex pipeline (FY22-26) 2.3 67.5% 65.9% 1H22 Group EBITDA margin4 Accounting adjustments 1H22 Group EBITDA margin New assets and divestments COVID traffic impacts 1H22 Group EBITDA margin (pro-forma) 1H22 EBITDA margin would have been around 73-74% had traffic volumes been in line with pre-COVID levels Balance sheet capacity available internally to fund current pipeline in the near term³ 1. Refer to slide 44 footnotes 4 and 5 for further details. 2. As at 31 December 2021 net of 1H22 distribution payment. 3. Potential to use a portion of the additional Capital Releases, resulting from the increased stake in WestConnex, to minimise dilution in Free Cash per security. 4. Excluding accounting adjustments including reclassification of SaaS expenditure and non-cash impacts on maintenance models. Refer to 1H22 Results dated 17 February 2022 for further information. Transurban 10
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