Joint Statement by Baillieu Limited Chairperson David Trude and Managing Director Gavin Powell

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Transurban Group (TCL) SNAPSHOT

Profile: Transurban (TCL) is Australia’s largest private toll road operator and has interests in Australia and North America. Assets include Melbourne’s CityLink and Sydney’s Lane Cove Tunnel, Eastern Distributor, M2, M5 and M7 motorways. TCL designs, constructs, finances and operates toll roads and is also involved in researching new vehicle and road safety technology.

History: Transurban listed on the ASX in 1996. Its first toll road was CityLink, a 22km road in Melbourne. CityLink opened the Western Link in August 1999 and Southern Link in December 2000. Upgrades to the Southern Link and Western Link were completed in 2010 and 2017 respectively. During FY19, the CityLink  concession end date was extended from 2035 to 2045. In September 2018, Transurban acquired 25.5% of WestConnex through the Sydney Transport Partners Joint Venture. In October 2019, TCL acquired the remaining 34.62% interest in the M5 West for $459m.

Earnings composition: In FY19, assets located in Sydney generated $856m, or 42%, of total proportional EBITDA (earnings before interest, tax, depreciation and amortisation). Melbourne generated $716m (36%), Brisbane generated $293m (15%) and North America generated $210m (10%).

Most recent result – 1H20: Proportional EBITDA increased 9.5% on the prior corresponding period (pcp) to $1,094m. Proportional toll revenue – which is indicative of TCL’s stake in its assets – was $1,396m, an 8.6% increase on the pcp. During the half the new M4 tunnels, the Logan Enhancement Project and the 395 Express Lanes projects were opened. Average daily traffic (ADT), a key driver of TCL’s toll revenue, increased 2.3% on the pcp. Free cash – representing cash available for distribution – increased 29.6% on the pcp to $927m. A distribution of 31 cents per security (cps) for 1H20 had previously been declared (FY20 distribution guidance 62cps).

Company outlook: Currently, the NorthConnex and New M5 projects in Sydney are scheduled for completion by the end of 2020. TCL’s FY20 distribution guidance is 62cps, an increase of 5.1% from 59cps in FY19.

Important dates: March quarter results are scheduled for 16 April 2020. Investor day is scheduled for 4 May 2020. FY20 results are scheduled for 12 August 2020.

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