2019 (Previous Corresponding Period: Year Ended 30 June 2018)
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Transurban Group Appendix 4E Year ended 30 June 2019 (Previous corresponding period: Year ended 30 June 2018) The Transurban Group (the Group) comprises the following entities: Transurban Holdings Limited (ABN 86 098 143 429) Transurban Holding Trust (ARSN 098 807 419) Transurban International Limited (ABN 90 121 746 825) Results for announcement to the market1 Statutory results compared to the prior period Revenue from ordinary activities increased 26.3 per cent to $4,166 million; Profit from ordinary activities after tax decreased 63.7 per cent to $170 million; Profit from ordinary activities after tax excluding significant items decreased 46.8 per cent to $260 million; Earnings before depreciation and amortisation, net finance costs, equity accounted investments and incomes taxes (EBITDA) increased 21.0 per cent to $1,996 million; EBITDA excluding significant items increased 21.0 per cent to $2,021 million; Net profit attributable to security holders of the stapled group decreased 64.7 per cent to $171 million; and Net profit attributable to security holders of the stapled group, excluding significant items decreased 48.4 per cent to $261 million. Proportional results compared to the prior period Toll revenue increased 10.3 per cent to $2,581 million; EBITDA decreased 4.4 per cent to $1,696 million; EBITDA excluding significant items increased 12.3 per cent to $2,016 million; and Free cash increased 25.7 per cent to $1,527 million. Distributions Amount per Franked Security amount per cents Security % Final distribution (declared prior to balance date) 28.0 - Final dividend (declared prior to balance date) 2.0 100 30.0 Interim distribution for the current year 28.0 - Interim dividend for the current year 1.0 100 29.0 Final distribution (prior year) 25.5 - Final dividend (prior year) 2.5 100 28.0 For personal use only Record date for determining entitlements to the final current 28 June 2019 year distribution and dividend Date of payment of final distribution 9 August 2019 1 Figures used for calculating percentage movements are based on whole numbers. Distribution Reinvestment Plan Under the Distribution Reinvestment Plan (DRP), security holders may receive additional stapled securities in substitution for some or all cash distributions in respect of their stapled securities. The last date for the receipt of an election notice for participation in the DRP was 1 July 2019 and the participation rate was 3 per cent. No discount has been applied when determining the price at which stapled securities will be issued under the DRP for the current period distribution. Explanation of results For further explanation of the results please refer to the accompanying ASX Release and “Our Business Performance” within the FY19 Corporate Report. This document includes presentation of results on a statutory as well as non-statutory basis. The non- statutory basis includes proportional toll revenue, proportional EBITDA, underlying proportional EBITDA and free cash. Significant items are those items where their nature is sufficiently significant to the financial statements and not in the ordinary course of business. These items have been disclosed in Note B6 to the Financial Statements of the FY19 Corporate Report. Proportional results Proportional EBITDA excluding significant items is one of the primary measures that the Board uses to assess the operating performance of the Group, with an aim to maintain a focus on operating results and associated cash generation. It reflects the contribution from individual assets to Transurban’s operating performance and permits a meaningful analysis of the performance of the Group’s assets. Proportional EBITDA is the aggregation of EBITDA from each asset multiplied by Transurban’s percentage ownership as well as the contribution from central Group functions. Proportional EBITDA is reconciled to the statutory income statement in Note B4 to the Financial Statements of the FY19 Corporate Report. Free cash Free cash is the primary measure used to assess the cash performance of the Group. It represents the cash available for distribution to security holders. Free cash is broadly calculated as: Statutory cash flow from operating activities; Add back transaction and integration costs related to acquisitions; Add back payments for maintenance of intangible assets; Add capital releases from 100% owned assets; Less debt amortisation of 100% owned assets; Less cash flow from operating activities from consolidated non-100% owned assets; Less allowance for maintenance of intangible assets for 100% owned assets; and Add distributions and interest received from non-100% owned entities, adjusted to exclude debt amortisation for Interlink Roads Pty Ltd. Net tangible asset backing 30 June 2019 30 June 2018 $ $ Net tangible asset backing per stapled security* 3.53 2.83 (*) - Net tangible assets used as the basis for this calculation include the concessions and permits relating to the operational assets of the Group. Assets of this type are characterised as intangibles For personal use only under Australian Accounting Standards. Entities over which control has been gained or lost The Group gained control over Interlink Roads Pty Ltd on 18 September 2018. From the date of acquisition to 30 June 2019, revenue of $248 million and a statutory loss after taxation of $25 million was included in the profit or loss with regard to Interlink Roads Pty Ltd. Excluding significant items related to the acquisition, Interlink Roads Pty Ltd contributed a net loss after taxation of $16 million, influenced by amortisation recorded following the acquisition. Investments in associates and joint venture entities The Transurban Group has investments in the following associates and joint venture entities: Name of company Ownership interest Net profit contribution to the Transurban Group 2019 2018 2019 2018 % % $M $M North Western Roads Group Trust 50.0 50.0 - - North Western Roads Group Pty Ltd 50.0 50.0 - - NorthConnex State Works Contractor 50.0 50.0 - - Pty Ltd Interlink Roads Pty Ltd 65.4 50.0 10 33 Bluedot Innovation, Inc. 20.0 20.0 (1) - STP Project Trust 50.0 - (152) - STP Asset Trust 50.0 - (191) - STP PT Pty Ltd 50.0 - - - STP AT Pty Ltd 50.0 - - - (334) 33 1. Transurban’s share of net profits of the North Western Roads Group are not recognised due to the North Western Roads Group’s historical accumulated loss position. 2. The $10 million net profit contribution to the Transurban Group from Interlink Roads Pty Ltd is presented above through 18 September 2018, the date of disposal of the Group’s equity accounted investment in Interlink Roads Pty Ltd. Other information required by Listing Rule 4.3A The remainder of information requiring disclosure to comply with Listing Rule 4.3A is contained in the FY19 Corporate Report (which includes the Directors’ Report) and an ASX Release. Audit This report has been based on accounts which have been audited by the Group’s auditors. A copy of the unqualified audit report can be found in the attached FY19 Corporate Report. Amanda Street Company Secretary 7 August 2019 For personal use only Corporate Report For personal use only For the year ended 30 June 2019 19 59 cents per stapled security distributed in FY19, Our FY19 growth of 5.4% on FY18 performance highlights 374K hours average workday travel-time savings Up to 78% safer roads than comparable alternatives 4 major projects opened to traffic New M4 Tunnels1, Logan Enhancement Project2, Purchased Gateway Upgrade North and 51% Inner City Bypass upgrade of WestConnex For personal use only as part of Sydney Transport Partners Consortium 1 New M4 Tunnels were substantially completed in FY19 and opened to traffic on 13 July 2019 2 Logan Enhancement Project completion works are underway and expected to be finalised in August 2019 Linkt Assist hardship program established 2.0% average daily traffic growth Tunnelling completed on $15M 2 reduction in fees due to fee and enforcement projects reform enhancing positive outcomes for NorthConnex and New M5 customers Committed to Financial For personal use only Inclusion Action Plan Contents 6 Introduction and overview Our Chairman and CEO begin the Corporate Report with a review of the year’s performance and their outlook for the future. This is followed by an overview of who we are and what we stand for, along with a summary of our roads and projects. We outline our strategy and how this helps us create value for all of our stakeholders. We also detail how we engage with our stakeholders and respond to their feedback. An overview of the major external factors influencing our business now and into the future concludes this section. For personal use only 6 About this report 8 Chair’s message 9 CEO’s message 10 About us 12 Our strategy 14 Engaging our stakeholders 16 External influences Reporting suite— all available at transurban.com/ 18 investor-centre Our business performance FY19 Corporate Report— this report Here we detail our activities and 60 The holistic performance of progress against our business Transurban in FY19 including priorities. We have divided Directors’ our Financial Statements. the information into our main Report stakeholder groups to capture FY19 Results the value we have created for Presentation The Directors’ Report for each of them. FY19 has been prepared Management presentation of financial and non-financial As required by the Corporations in accordance with the requirements of the results including non- Act 2001, this section also statutory analysis. includes commentary