2022 Corporate Report

2022 Corporate Report for the year ended 30 June 2022

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Our year in numbers How we created value for our stakeholders

3 . 78 road injury crash index— below target of 4.25 or less

paid in distributions to security holders $ 1.2 B

$ 4M 2 ND 3 . 09 7 towards social investment programs More than contractor recordable injury frequency rate— below target of 4.20 or less

highest-rated motorway infrastructure company— Global Real Estate Sustainability Benchmark for Infrastructure (2021)

major infrastructure projects in development or delivery

40 : 40 : 20 progressed gender balance across our workforce, in line with our target—40% men, 40% women, 20% any gender/non-binary

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Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Who we are We are a leading global toll road developer and operator with 21 assets and seven development projects across five regions. Our purpose To strengthen communities through transport. Our strategy By understanding what matters to our stakeholders, we create road transport solutions that make us a partner of choice.

Our investment proposition

We balance growth in distributions and investment to create long-term value.

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Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

For the best viewing experience, download this report

Contents

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Letter from the Chair and CEO

Project updates

25

Governance

75

6

Customers

29

Board of Directors

80

About this report

Communities

35

8

Risk management

Our people

45

82

Working with our stakeholders

12

Government and Industry

51

About Transurban Our roads and projects Executive Committee

15

Business partners and suppliers

57

16

Investors

65

18

Business strategy

20

Global trends

22

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

—Reporting suite— FY22 Corporate Report 1 —(this report) The holistic performance of Transurban in FY22 including our Financial Statements

and Sustainability Supplement. FY22 Results Presentation

Management presentation of financial and non-financial results, including non- statutory analysis. FY22 Climate Change Disclosure 2 Our response to the Task Force on Climate-related Financial Disclosures’

(TCFD) recommendations. FY22 Sustainability Data 2

Financial statements

Sustainability supplement

Glossary 244 10-year history 246 Key contacts 247 Security holder information

Our progress against the UN Sustainable Development Goals and other sustainability performance data. Corporate Governance Statement Statement made in accordance with the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th Edition). Tax Transparency Report Overview of our corporate structure, approach to tax and tax position for FY21 —available late August 2022. Modern Slavery Statement Overview of how we identify, manage and mitigate the specific risks of modern slavery in our operations and supply—available late 2022.

A ll available on our website transurban.com

Acknowledgment of Country Transurban acknowledges the Traditional Owners of the lands across Australia—in particular where we own and operate toll roads—and we pay respect to Elders past, present and emerging. As caretakers and custodians of transportation in urban communities we have a deep respect for Indigenous communities and culture and seek to celebrate pride in Country through engagement with, and providing opportunities for, Aboriginal and Torres Strait Islander peoples. We also celebrate connection to Country through artwork and design elements in our infrastructure. To achieve our purpose—to strengthen communities through transport—we will continue to foster positive and sustainable relationships with all communities, while progressing our efforts to contribute to Australia’s reconciliation journey.

1 W e have integrated some of our Sustainability Supplement into our FY22 Corporate Report. This approach provides additional information on our non-financial performance (including environmental, social and governance performance) and our progress in achieving our Sustainability Strategy 2 Previously incorporated in our Sustainability Supplement

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Letter from the Chair and CEO

traffic numbers for the full year were down slightly overall, declining by 0.5%. The key financial metrics of the period ended 30 June 2022 included a 5.7% increase in proportional toll revenue to $2,626 million and 3.5% growth in proportional EBITDA to $1,900 million. Free Cash inclusive of Capital Releases increased by 19.8%, which supported our full-year distribution of 41 cents per security. We were pleased to pay more than $1.2 billion in distributions to security holders during the year. The return of traffic to our roads once government restrictions lifted throughout the year reflects the value that our customers continue to see in terms of travel- time savings, reliability and safety in our assets, which are crucial transport corridors in areas where population, employment and economies are expected to grow. These are first-class assets and, along with our pipeline of developments and opportunities, we are confident in our ability to continue delivering value not only for investors, but for all our stakeholders. Our balance sheet is in a robust position, which can support near and longer-term growth opportunities. Combined with the positive trend in traffic performance and project delivery, we have a meaningful base for generating cash flow. Macro-economic environment While rising inflation is impacting economies globally, almost 70% of our roads have toll escalations of CPI or greater. This provides inflation protection in this environment. Our debt is also hedged to provide protection against near-term interest rate increases. Around 98% of our existing debt book is fully hedged and during FY22 we refinanced more than $3.4 billion of debt at better interest rates on average to give us lower exposure to current market rates and volatility. Listening to our stakeholders Over the past year, we embarked on an extensive exercise to test our understanding of our stakeholders’ views. We heard from more than 4,000 community members and 100 business partners. We interviewed investors, government partners and employees, and analysed thousands of pieces of customer feedback. This is something we do every few years to understand, anticipate and address what is important to our stakeholders so that we can confidently deliver on our strategy:

FY22 has again been a year of significant milestones for Transurban.

reached an agreement on revised project delivery terms, including a new completion date of late 2025. While the delay and additional cost has been disappointing, this project is critical for the efficient and safe movement of people and goods in Melbourne by providing an alternative to the often heavily congested West Gate Bridge, as well as adding more than 18 kilometres of new traffic lanes on the West Gate Freeway. It is expected to create more than 6,000 jobs and generate around $11 billion in economic benefits for the State of Victoria. It remains a financially attractive investment for Transurban and will be another valuable project for security holders for years to come. FY22 financial results While traffic was impacted by government restrictions particularly in our key markets of Sydney and Melbourne in the first half of FY22, we were pleased to see traffic volumes grow as the year progressed. In the final quarter of FY22, average daily traffic exceeded FY19 by 5.8%. Compared to FY21,

A major highlight was our acquisition, as part of the Sydney Transport Partners consortium, of the remaining 49% of WestConnex from the NSW Government to take Transurban’s total ownership interest to 50%. Once complete, WestConnex will form a 70 kilometre network, providing efficient and safer travel between industrial and freight hubs as well as catering for Sydney’s growing western suburbs. With close to 40 years 1 remaining on its concession life, cash flows generated from WestConnex will underpin distributions to our security holders for decades to come. We would like to take this opportunity to thank our security holders for their backing of the $4.2 billion equity raising in FY22, which underpinned the acquisition of this world-class asset, which is not only transformational for Sydney, but for Transurban as well. Another milestone was the start of tunnelling on our West Gate Tunnel Project in Melbourne after Transurban, the Victorian Government and the D&C subcontractor

From left: CEO Scott Charlton and Chair Lindsay Maxsted

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Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Chair’s message This year’s Corporate Report

“By understanding what matters to our stakeholders, we create road transport solutions that make us a partner of choice”. These solutions come in many forms— from multi-billion-dollar infrastructure projects such as extending our Express Lanes in the US to create faster and more efficient travel choices, to enhancing technologies and rewards programs for our customers and supporting community organisations. Safety plays a critical role in many of our transport solutions. Our efforts begin right from the outset of our asset design and span our business from operations to research and education programs such as improving child car seat safety. We track our on-road performance using a Road Injury Crash Index (RICI)—the number of serious injury crashes per 100 million vehicle kilometres travelled on our roads. In FY22, pleasingly we achieved a RICI of 3.78, 11% lower than our target RICI of no more than 4.25. Our solutions also respond to the urgent and very real need to reduce greenhouse gas (GHG) emissions and to minimise our environmental impacts. ESG initiatives During FY22, we continued to make significant progress on a number of Environment, Social and Governance (ESG) initiatives that reinforce our sustainable business practices as well as our commitment to reduce our GHG emissions. We have committed to net zero emissions by 2050 from our operations, supply chains and major project developments and have also set targets for significant reductions by 2030 (see page 37). Our transition to renewable energy sources in FY22 led to a 46% reduction in GHG emissions compared to the previous year and we are now sourcing two thirds of our electricity from renewable sources. While our customers’ GHG emissions are not formally within our control, we recognise their impact on the environment and continue to educate our customers about efficient driving to reduce GHG emissions and fuel use. Further, by choosing our roads over alternate stop-start routes, drivers can save an average of 27% in GHG emissions. 2 During the year, we also launched initiatives to encourage the take up of electric vehicles (EVs). This included a campaign to support Australia’s COVID-19 vaccine rollout by offering vaccinated customers the opportunity to win an EV.

The need for climate action was put sharply into focus this year with major flooding in Queensland and NSW. Natural disasters such as these highlight the importance of resilience in both our operations and the design and construction of our assets. We will continue to work to better understand the financial implications that climate change may present for our operations and assets. Our progress is reported in our FY22 Climate Change Disclosure , which is available on our website. Recognising that sustainability is part of everyday business for Transurban, this year we have integrated more of our previous standalone Sustainability Supplement into this report. This approach endeavours to present the most holistic view of our performance. Our approach to sustainability is guided by our ongoing commitment to the United Nations (UN) Global Compact and the UN Sustainable Development Goals (UN SDGs). We have identified the UN SDGs that are most relevant to our business, and we report annually on how we are contributing to these global goals. Our achievements for FY22 are available in our Insights hub on our website. FY23 outlook As the world continues to adapt the way in which they move about, and with domestic and international travel returning, we feel confident that customers will continue to see value in using our assets. In FY23, we also look forward to progressing our development projects, in particular in Sydney. Civil works are complete on the final stage of WestConnex—the M4-M5 Link—and the project is expected to open to traffic in 2023. Project developments such as this, position us well for growth in the coming year. The Board has also issued guidance that it expects the FY23 distribution to be 53.0 cps representing approximately 30% growth on FY22. This will be subject to the Group’s distribution policy (page 73), traffic performance and macroeconomic factors, and timing of distributions from subsidiaries. 3 While FY22 again presented uncertainties, the team at Transurban maintained its focus on delivering for all our stakeholders. The Board would like to take this opportunity to thank all employees for their hard work and dedication in achieving so many milestones during the year.

We also thank our security holders for your ongoing support of Transurban and commend this report to you as an excellent summary of our performance in FY22. I would like to take this opportunity to thank my fellow Board members as well as the broader Transurban team for their commitment and dedication to the ongoing success of Transurban. I look forward to speaking with you further at my final Transurban AGM on 20 October 2022. In that time, Transurban has realised many milestones from our entry into the Queensland market to the creation of 85 kilometres of Express Lanes in the US, to the successful partnership that acquired Sydney’s WestConnex network. Achievements such as these are the result of a talented and committed team that is steadfastly focused on creating long-term value for our investors and other stakeholder groups. marks my final as Chair of Transurban as I have announced my retirement at the conclusion of this year’s Annual General Meeting (AGM) in October. Transurban is an exceptional business and I am extremely proud of our achievements since joining the Board in 2008 and becoming Chair in 2010.

Lindsay Maxsted Chair and Independent Non-executive Director

Scott Charlton Chief Executive Officer and Executive Director

1 R emaining concession life as at 30 June 2022 for each concession on a non-revenue weighted basis with each concession expiring in December 2060 2 Transurban internal calculation based on vehicle type, distance travelled and COPERT emission modelling tool 3 D istributions to be determined by relevant Board discretion at the time

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Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Thank you for reading Transurban’s FY22 Corporate Report. These pages explain both the structure of this report and our approach to integrating the United Nations Sustainable Development Goals (UN SDGs) into the reporting frameworks that guide us. About this report

Scope and content Our FY22 Corporate Report provides an overview of Transurban’s operations and performance during the financial year (1 July 2021 to 30 June 2022). The report covers our financial and non-financial performance and details how we create value for our six key stakeholder groups: • investors • customers • communities • our people • business partners and suppliers • government and industry. Integrated approach Our reporting approach is guided by two initiatives that drive integrated, accessible, measurable, and comparable reporting: • Global Reporting Initiative (GRI) that establishes standardised sustainability impact reporting across industries and sectors • International Integrated Reporting Framework (IIRF) that provides a clear, concise and comparable format for integrated reporting across strategy, governance, performance and prospects. This report is also informed by recommendations from: the Task Force on Climate-related Financial Disclosures (TCFD); the Sustainability Accounting Standards Board (SASB); and the UN SDGs.

Our approach to sustainability This year, we have integrated some of our Sustainability Supplement into this report. This approach provides additional information on our non-financial performance, including environmental, social and governance (ESG), and progress in achieving our Sustainability Strategy. Transurban’s Sustainability Strategy— centred around four pillars (people, planet, places and partnerships)—is aligned with the UN SGDs most relevant to us and our stakeholders, and is supported by objectives, targets and indicators. This strategy guides us in identifying, understanding and responding to social and environmental issues in support of Transurban’s purpose —to strengthen communities through transport. Our strategy helps us create real and lasting benefits for all our stakeholders. Responsibility for this strategy and its associated work program is embedded right across our business. Our specialist Sustainability team drives this process, including by providing strategic advice and reporting on progress, trends and emerging themes to our Board and Executive Committee.  A standalone response to the TCFD and detailed sustainability data tables are available in our Insights Hub, insights.transurban.com

Compliance statement Our FY22 Corporate Report includes key disclosures under Australian legislation. Our Directors’ Report page 91 and Financial Statements page 120 have been prepared in accordance with the Corporations Act 2001 (Cth). Our Financial Statements have also been prepared in accordance with Australian Accounting Standards. The basis of preparation of our Financial Statements is provided on page 129. PricewaterhouseCoopers has conducted an independent audit of the Financial Statements and Remuneration Report. Auditor’s Independence Declaration is available on page 119. Detailed information on the audit is available on pages 21 6 to 225. The sustainability data methodology used in this report is available in the Sustainability Supplement section of this report, including a KPMG-issued limited assurance statement on page 239. Select non-financial data points within this report are estimates, informed by part-year data and previous-year trend analysis. The remaining information in this report has been reviewed internally. This report contains certain forward- looking statements. See page 245 for a notice regarding these statements.

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Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Reporting what matters

Materiality review We have used both stakeholder feedback and reporting guidelines to determine the non-financial topics included in this report. Our business strategy—by understanding what matters to our stakeholders, we create road transport solutions that make us a partner of choice—is central to our reporting. Our stakeholder engagement activities, key issues identified and our responses to stakeholder issues are available on pages 12 to 13. Sustainability frameworks used include: GRI and SASB standards on pages 226 to 238; TCFD recommendations ; and UN SDGs .

Detailed risk management summaries are included on pages 85 to 88. Figure 1 summarises FY22’s highest- priority topics identified from the above materiality reviews, including how these topics address issues raised by various stakeholders and frameworks. The issues we have determined as the most material are generally covered within the relevant stakeholder section in this report. Topics deemed less significant are reported in the GRI Index (page 226).

For more than a decade, we have evaluated and prioritised topics that we believe are material to our business for inclusion in our reporting suite. A material issue is one that is significant for Transurban in terms of impact (actual or potential economic, environmental, and social impact) or influence (level of interest and potential to influence stakeholder decisions).

Figure 1: Material issues and alignment with stakeholders and reporting frameworks

Frameworks Corporate sustainability

Global sustainability

Investor frameworks

Stakeholder groups 1

GRI indicators

UN SDGs

SASB sector

TCFD relevance

Material issues in FY22 Road safety Our roads, research, and community safety initiatives

Customers; Community

3

9

416

Customers Customer satisfaction, hardship support, data privacy and cybersecurity Local communities Community engagement, social investment and creating community spaces Environment Climate change, energy and carbon, air quality, materials and biodiversity Health and safety Our employees, contractors and workplaces Wellbeing and diversity Supporting diversity, inclusiveness and fair work practices Supply chain Procurement practices, shared value and human rights including Modern Slavery Our business Financial performance, road effectiveness,

11

Customers

418

11

Community

413

Community; Investors

7

12

13

301, 302, 305

Our people; Business partners and suppliers 403

3

5

8

Our people

401, 405

Government and industry; Business partners and suppliers 204, 412

17

economic impact, job creation and response to COVID-19 pandemic

Investors; Government and industry

8

9

201, 203

Governance Strategy and risk management, legal and regulatory compliance and ethical business practices

Investors; Our people

17

205, 206

1 ‘Stakeholder groups’ refer to the main stakeholders where this issue is most relevant, but in many cases these issues overlap several or all stakeholder groups’ interests

9

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Recognitions Global Real Estate Sustainability Benchmark—Infrastructure (2021) Highest-rated listed infrastructure company, 2nd-highest-rated motorway infrastructure company globally Dow Jones Sustainability Index (2021) Member of DJSI World Index, equal 3rd- highest-rated transport company globally CDP (2021) Climate Change ‘Management’ level (B rating) MSCI AAA ESG rating since 2015 FTSE4Good Member of Global Index since 2004 FY22 UN SDG Progress Report Transurban is committed to the UN SDGs, which directly inform our Sustainability Strategy. This report details Transurban’s FY22 progress against the nine UN SDGs that are particularly relevant to Transurban and the associated targets and indicators that apply to our business. We believe more can be done to contribute to the UN SDG targets above and beyond the official indicator set. For this reason, we also list our own, Transurban-specific, indicators and targets

Workplace Gender Equality Agency (Australia) Employer of Choice Citation since 2015 Equileap Rated the 8th-best company globally and 2nd in Australia for gender equality Support the Goals 5-star-rated company for action on the UN SDGs Affiliations GRI Used for our sustainability reporting since 2006 TCFD All recommendations addressed and summarise our performance against these. A summary of our FY22 performance for each of the nine UN SDGs that are particularly relevant to Transurban, and trends towards 29 applicable targets— official and Transurban-specific—are provided in Figure 2 and Figure 3.

United Nations Global Compact Participant since 2009 Infrastructure Sustainability (IS) and Envision major project ratings 8 rated projects to date and 4 project ratings underway SASB Implementing reporting recommendations Science Based Targets initiative (SBTi) Validated greenhouse gas emission reduction targets Business for Societal Impact (B4SI) Measuring and verifying the social impact of our community investment

Figure 2: Summary of FY18-22 progress for UN SDG targets

Target met 23/29

79.3%

Improving 3/29 10.3% Declining 3/29 10.3%

 Find our sustainability performance data, including comprehensive UN SDG progress in our Insights Hub , insights.transurban.com

Figure 3: FY22 UN SDG performance summary

Progress to goal

UN SDG Relevance to Transurban

Key FY22 initiatives and highlights

Key FY22 performance metrics (FY18-22 trend/ target status) 1 • RICI; 3.78 (target ≤ 4.25) • Road user fatalities; 3 • Road Safety Action Plan completion rate; 89%

Performance metric comments Performance against RICI continues to improve over time with outperformance in FY22

Ensuring the safety, health and wellbeing of our people and safety of road users is vital to our ongoing success

• Outperformed Road Injury Crash Index (RICI) target • 91% of travel on our roads deemed to be four-star or better by Australian Road Research Board • NeuRA research on motorcycle fuel tank and seating posture injury risks • Continued mental health wellbeing program • Rated 2nd (Australia) and 8th (globally) for gender equality by Equileap • Workplace Gender Equality Agency Employer of Choice for Gender Equality citation 2021–23 • Improved Board gender diversity

l

We believe diversity in all its forms—including gender diversity—helps our business perform better

• Board diversity; 73%M/27%F l • Executive diversity; 44%M/56%F • Direct employee diversity; 57%M/43%F 2

Board diversity improved in FY22 with appointment of two new female directors (20% in FY21 to 27% in FY22)

l

1 F Y18-22 performance metrics trend: N/A = no data or trend not applicable; a = target met; l = no change; l = improving; l = declining (not all targets are included in Key FY22 performance metrics) 2 Non-binary represents 0.06% of our direct employees

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Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Progress to goal

UN SDG Relevance to Transurban

Key FY22 initiatives and highlights

Key FY22 performance metrics (FY18-22 trend/ target status) 1 • Proportion of energy purchased from renewables; 56% (N/A) • Installed renewable energy capacity; 231kW (N/A) • Energy-efficiency savings to date; 8.3% l • Gender pay gap; ≤1% • Employee recordable injuries; 0 • Contractor Recordable Injury Frequency Rate (RIFR); 3.09 (target ≤ 4.2) • Reconciliation Action Plan; 100% actions complete • Scope 1 and 2 absolute emissions; 106,392 tCO2e l • Scope 1 and 2 emissions per $M revenue; 45.8 tCO2e • Scope 3 emissions from purchased goods and services per million VKT; 32.9 tCO2e l • Scope 3 emissions from

Performance metric comments Significant improvements for FY22 as supply from renewable energy sources becomes dominant Substantial progress made towards energy- efficiency target

Meeting our energy needs mainly from renewable sources is dramatically reducing our direct greenhouse gas emissions

• Renewable energy supply started from Coopers Gap Wind Farm (QLD) in January and Bango Wind Farm (NSW) in June 2022 • Renewable energy supply arrangements now in place for all Australian markets and under investigation for US • Gender pay gap maintained at ≤1% • Enhanced parental leave policy • Released FY21 Modern Slavery Statement (December 2021) • Completed our second (Innovate) Reconciliation Action Plan • Rated or committed to rating the sustainability performance of 12 projects, worth approximately $25B to date

l

Targets met

We can help under- represented groups participate in and benefit from economic growth. Our roads are critical in moving people and goods within and around the urban areas where we operate—helping economies function and grow Our core business is providing and operating road infrastructure and we are committed to making it more sustainable and resilient to future climatic conditions Operating responsibly— socially and environmentally—will help us continue to be a partner of choice for governments and respected by communities and our customers Our projects and maintenance activities use significant amounts of materials. Efforts to reduce use and favour low carbon materials will lower our indirect greenhouse gas (GHG) emissions and help conserve resources We need to understand and prepare for the transition to a low-carbon environment and the physical impacts of climate change Partnering with other organisations committed to the UN SDGs and the opportunities and challenges they represent is vital to achieve greater impact sooner

l

Scope 1 and 2 absolute emissions decreased significantly as we transitioned to mainly renewable energy use

l

capital projects per $M capex; 138.5 tCO2e l

• More than USD45M provided to date to support public transit initiatives in Northern Virginia • More than 1,475 kilometres of cycle/pedestrian paths delivered or maintained to date • Provided community grants to support those affected by COVID-19 pandemic and flooding • Set waste management targets for the business • Continuing to use and promote lower-carbon materials • Continuing to support social enterprises throughout COVID-19 pandemic

• Compliance with air quality indicators for tunnel emissions; 100%

Target met

l

• > $130M Indigenous procurement spend to date (Australia) across more than 100 suppliers (N/A) • USD976M spend to date on disadvantaged business enterprises (DBEs) and small, women and minority- owned (SWaM) businesses in the US (N/A) • Existing assets assessed for climate risk; 100% • Major projects under construction assessed for climate change risk; 50%; 2/4 projects l

Australian Indigenous procurement growing through major projects and direct procurement

l

• CDP Supplier Engagement Leader • Climate risk assessments progressed for assets

Climate change risk assessments for FredEx and Project NEXT projects delayed to FY23

l

• Work underway to identify financial impacts of climate change

• Key partnerships in FY22 with NeuRA, Kidsafe (road safety); The Smith Family, The Salvation Army, Northern Virginia Family Services (community); MECLA (materials); Landcare (biodiversity)

• No metrics for this SDG N/A

l

1 F Y18-22 performance metrics trend: N/A = no data or trend not applicable; a = target met; l = no change; l = improving; l = declining (not all targets are included in Key FY22 performance metrics) 2 N on-binary represents 0.06% of our direct employees

11

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Working with our stakeholders

Customers

Communities

Our people

• Ongoing customer listening program; customer research panel; qualitative and quantitative research. • Customer channels: app; website; phone; social media; retail outlets. • Digital, print and outdoor advertising; phone and SMS; newsletters; social media.

• Surveys: community, business partner and supplier; corporate trust and mobility trends. • Events; community liaison groups; information sessions; site tours. • Digital, print and outdoor advertising; newsletters; social media; letter drops, door knocking; phone and SMS; media coverage. • Partnerships; grant programs; school and grassroots activities. • Processes and governance: transparency in project design, decisions and delivery; and project operations benefits and impacts; listening to, and responding to, stakeholders including post- construction. • Road works and construction: notification of disruption; planning of works and minimising impacts of construction on residents and the environment. • Environmental and social performance: GHG emissions and air quality; supporting vulnerable communities and people; family violence support; driver safety and education. • Processes and governance: developed a Social Licence Framework to maximise impact and stakeholder benefit; enhanced sharing of road safety research, education and outcomes; engaged communities on project developments and current works’ impacts. • Road works and construction: engaged communities on project development and works’ impacts; adhered to robust guidelines and regulations for environmental management. • Environmental and social performance: provided additional community grants to ease pandemic (NSW, VIC, NA) and flood (QLD) impacts; continued partnerships (including NeuRA, Kidsafe, The Smith Family, The Salvation Army, Northern Virginia Family Services, 9/11 Pentagon Memorial Fund, and La fondation les petits trésors); expanded public art/education programs (Canal to Creek, CityLink Kids, West Gate Kids); hosted open days, events and competitions.

• All-employee listening program and pulse-check surveys. • All-employee meetings (virtual, in-person, hybrid). • Internal communication channels: intranet; instant message; email; signage. • Quarterly/annual awards and recognition programs. • People leader forums. • Belonging and wellbeing events. • Health, safety, and wellbeing: diversity, inclusion and respect in the workplace. • Career paths: skills and capability development; ongoing career opportunities. • Workforce engagement: key talent retention and attraction; flexible working access; connection and collaboration.

• Value of toll road travel: on-road experiences (such as signage, congestion); road incident alerts; fees and charges. • Interacting with us: interaction convenience and ease; cybersecurity, data protection and privacy; infringement processes. • Rewards and support: enhanced rewards program; competitions; support for vulnerable customers.

• Value of toll road travel: education on avoiding fees and charges; new tools to inform travel decisions and improve value certainty; added roads to our GoToll app. • Interacting with us: delivered improved digital platform experiences and functionality; used data and analytics to identify pain points; continued focus on cybersecurity capability. • Rewards and support: expanded Linkt Customer Rewards program; customer competitions; expanded Linkt Assist program; supported customers experiencing hardship via new partnership program.

• Health, safety, and wellbeing: mandatory Health, Safety and Environment Action Plans for all teams; delivered Belonging and Wellbeing program with mental wellbeing focus; ran Respect at Work program, including mandatory sexual harassment prevention learning module. • Career paths: provided on-demand access to 7,000+ online learning programs; maintained career resource hub and activity program. • Workforce engagement: supported flexible working, including via collaborative technologies; conducted annual pay reviews to maintain pay equity gap of less than 1% and to account for Australian superannuation guarantee increases; refreshed parental leave policy.

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Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

We conducted a listening exercise across all stakeholder groups in Australia and North America to align our future direction with their needs.

Read more on page 36

Business partners and suppliers

Government and industry

Investors

• State/federal government and agency inquiry submissions. • Industry partnerships, memberships, and event participation. • Partnering on shared issues (for example, road safety). • Official and regulator meetings; research and business updates; MP engagement on initiatives, grants and competitions; asset milestones and event attendance. • Future-ready infrastructure: innovative and sustainable transport solutions and population growth alignment; electric vehicle (EV) uptake/education; road-user charging. • Environmental initiatives: emissions- reduction targets; sustainable construction practices. • Data-led economic insights: urban mobility trends. • Community support: road safety; supporting vulnerable communities including COVID-19 pandemic and flood impacts and responses. • Future-ready infrastructure: progressed seven major infrastructure projects with governments; provided data to and attended public hearings on NSW Parliament Inquiry into Road Tolling Regimes; worked with government and industry to advance trials on connected transport technology and EVs. • Environmental initiatives: renewable energy agreements; ventilation optimisation; energy-efficient lighting; sustainable construction initiatives. • Data-led economic insights: shared research insights on mobility trends, economic activity and sustainability initiatives. • Community support: consulted with government on Transurban Road Safety Centre research; delivered customer hardship initiatives; supported Australian Government vaccine rollout via competition incentives.

• Major long-term partner shared-objective setting; pipeline and future works’ scope engagement; supplier working groups/ workshops. • Dedicated relationship managers. • Engagement on disadvantaged group employment barriers. • Decarbonisation and climate change mitigation actions. • Sustainability: supply chain engagement; decarbonisation performance; social procurement. • Industry leadership: major project learnings; supply chain risks (modern slavery, conflict-zone disruptions). • Partner engagement: long-term pipeline visibility; supplier confidence; relationship quality.

• Institutional and retail investor engagement; one-on-one meetings; twice-yearly surveys. • Results briefings (half and full year); hybrid annual Investor Day event; virtual Annual General Meeting (AGM); quarterly traffic releases; investor centre website; digital Investor Day Hub. • West Gate Tunnel Project tour. • Proxy adviser and ESG engagement. • WestConnex capital raising engagement. • Performance: distribution growth; project and asset performance; current and emerging risks, including broader economic conditions; ESG performance and initiatives. • Strategy and future: development opportunities; capital management; long-term value creation; long-term mobility trends. • Governance: organisational capability including Executive Committee and Board. • Performance: distribution growth supported by improvement in Free Cash; maintained a strong balance sheet; asset quality/diversification; demonstrated inflation benefit with near-term interest rate protection through inflation-linked toll escalation and debt hedging profile; maintained ESG leadership status and continued progress in key ESG areas. • Strategy and future: executed strategic initiatives and created longer-term value for security holders; increased WestConnex proportional ownership to 50% with strategically aligned partners;

• Sustainability: continued our Sustainable Procurement Program and supplier engagement activities. • Industry leadership: worked with suppliers and multi-stakeholder organisations to advance our Modern Slavery Act 2018 (Cth) response and reporting. • Partner engagement: implemented shared-value initiatives with key suppliers; halved payment terms for flood-impacted QLD small businesses; worked with suppliers to deliver on expected work pipeline.

ensured balance sheet capacity to fund existing near-term growth opportunities.

• Governance: continued focus on strengthening leadership capability; formal leadership programs; embedded Executive Committee and operating model.

13

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Figure 4: FY22 proportional toll revenue by market

48.1% Sydney

27.5% Melbourne

17.2% Brisbane

7.2% North America

14

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

As one of the world’s largest toll road developers and operators, our business is to get people where they want to go as quickly and safely as possible. About Transurban

21 assets in operation

9.7M customers globally

7 major infrastructure projects in development

9,000+ total workforce 3

2M trips daily across our roads

1996 listed on the ASX

wider transport networks. And our efforts are paying off: external research has found our roads are twice as safe as like roads. 1 Our purpose is to strengthen communities through transport and we aim to achieve this in many different ways. From our 24/7 traffic control room operators to the transport planners who forecast where congestion hot spots could be in a decade’s time, we are focused on making travel easier now and in the future. As a leading global toll road owner and operator, listed on the Australian Securities Exchange (ASX), Transurban represents one of the most significant infrastructure investment opportunities available to investors. We have more than 3,600 people 2 working across Australia and North America, as well as more than 5,000 subcontractors through the delivery of major projects. We foster an engaged and diverse workforce that prides itself on making a significant and lasting contribution to the cities and communities in which we operate. We also continuously challenge ourselves in how we respond to social and environmental issues—and we invest in

For us, this is about much more than laying asphalt and building tunnels. By understanding what matters to our stakeholders, we create road transport solutions that make us a partner of choice. Transurban’s roads connect key industry, freight, employment and community centres and keep cities moving safely and efficiently. Since opening CityLink in Melbourne in 1999, our company has grown to include 21 toll roads in Australia, the United States and Canada, with more on the way. We have 6 million customers in Australia and 3.7 million customers in North America. During the past two decades we have established a strong track record of partnering with governments to successfully deliver and manage key road infrastructure. We have seven major infrastructure projects in development or delivery in Australia and North America. These projects are designed to solve critical congestion issues and improve city connectivity, community liveability and economic growth. We have also built a reputation for bringing innovative solutions to our operations, using technology to improve safety and increase the efficiency of our own roads and cities’

both to create social inclusion and manage our environmental impacts. Our Social Licence Framework helps us identify the initiatives, investments and partnerships that will have the greatest social, economic and environmental benefits for the regions we

operate in (read more on page 43). Success for us means achieving our purpose and creating value for all our stakeholders.

1 M onash University Accident Research Centre (MUARC), 2021 2 D irect workforce includes direct employees (which include casual, fixed term and permanent employees (excluding leave of absence and non-executive directors)) and temporary workers and workers contracted through our partner organisations 3 Total workforce includes direct workforce and sub- contractors working on major infrastructure projects 4 N o assurance can be given that these potential opportunities will eventuate on the timetable outlined or at all, or that Transurban will be able to participate in them. Transurban’s ability to participate in any future projects or acquisitions will be subject to, among other things, applicable government processes and the receipt of relevant regulatory approvals 5 On a calendar year basis 6 R ozelle Interchange is being delivered and funded by Transport for NSW 7 Transurban is not a sponsor of the Olympic Games, any Olympic Committees or teams

Figure 5: Opportunity and delivery pipeline

Next 5 years 5+ years

Region Projects in delivery and potential opportunities 4

Expected delivery 5

Sydney

WestConnex M4–M5 Link Rozelle Interchange 6

2023 2024

M7–M12 integration and delivery

Early development

Western Harbour Tunnel and Sydney Harbour Tunnel potential monetisation

l l l

M6 potential monetisation

Beaches Link potential monetisation

Melbourne

West Gate Tunnel Project

2025

North East Link potential monetisation

l

Brisbane

Gateway Motorway widening Logan Motorway widening

l l

Broader road enhancements including in relation to Brisbane 2032 7

l

North America

Fredericksburg Extension 495 Northern Extension

2023 2025

Maryland Express Lanes—Phase 1

Early development

l l l l

Capital Beltway Accord

Express Lanes enhancements and/or extensions

Future traditional toll road and Express Lanes acquisition opportunities

l l

Maryland Express Lanes Project future phases

Future opportunities in Quebec

l

15

Corporate Report for the year ended 30 June 2022

Introduction and overview

Business performance

Governance and risk

Directors’ report

Remuneration report

Financial statements

Sustainability supplement

Security holder information

Our roads and projects

Melbourne, Victoria

Sydney, New South Wales

AUSTRALIA

AUSTRALIA

NEW SOUTH WALES

Melbourne Airport

NorthConnex

Essendon Airport

M7

M2

M2

Lane Cove Tunnel

Military Road E-ramp

CityLink Western Link M2

SYDNEY HARBOUR TUNNEL

SYDNEY HARBOUR BRIDGE

Rozelle Interchange

Swanson Dock

M7

SYDNEY CBD

MELBOURNE CBD

M4

West Gate Tunnel Project

Cross City Tunnel

BOLTE BRIDGE

BURNLEY TUNNEL

M4–M5 Link

Eastern Distributor

WEST GATE BRIDGE

DOMAIN TUNNEL

CityLink Southern Link M1

M5 East

Sydney Airport

Webb Dock

M5 West

M8

VICTORIA

Moorebank Intermodal Terminal

Port Botany

CityLink 1

M5 West 2

100% 22 km 2045

100% 22 km 2026

M2

100% 21 km 2048

Projects West Gate Tunnel Project

Lane Cove Tunnel

100% 3.8 km 2048

100% 17 km 2045

Cross City Tunnel

100% 2.1 km 2035

Eastern Distributor

75.1% 6 km 2048

M7

50% 40 km 2048

M4 3

50% 14 km 2060

M8 3

50% 11 km 2060

M5 East 3

50% 10 km 2060

NorthConnex

50%

9 km 2048

Projects M4–M5 Link

50% 7.5 km 2060

Rozelle Interchange 4

50% 5 km 5 2060

Ownership (as at 30 June 2022) Length in kilometres

2 M 5 West will form part of the WestConnex M5 concession once the current concession expires in December 2026. During that period Transurban’s proportional ownership will be 50% based on its current ownership proportion in WestConnex 3 Transurban’s proportional ownership of WestConnex, through its equity investment in STP JV, increased from 25.5% to 50% on 29 October 2021 4 R ozelle Interchange is being delivered and funded by Transport for NSW 5 R ozelle Interchange is a complex design consisting predominantly of ramps. The length of lane kilometres is about equivalent to a five-kilometre motorway with two lanes in each direction

Concession end

1 Transurban manages incident response on about 45 kilometres of road on the following roads including: CityLink; Monash Freeway; Domain and Burnley tunnels; Bolte Bridge; Tullamarine Freeway; West Gate Bridge; and some sections of the West Gate Freeway

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