2022 Corporate Report

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

FY22 CEO Performance Priority Strategy and Development


• 495 Northern Extension project reached financial close and outperformed against approval base-case • Approval of M7–M12 integration and delivery to progress to the third stage of the NSW Government’s Unsolicited Proposals Process • Successful launch of ‘connected vehicle’ prototype as part of road user charging project • Additional value derived from NeuRA partnership with federal/state governments and communities • WGTP dispute settlement reached in the best interest of all stakeholders • Successful WestConnex bid, increasing proportional ownership to 50% • Successful customer offerings including vaccine uptake support and the electric vehicle competition across markets; above target performance in reputation and customer sentiment measures • Increase in talent and leadership bench strength following Executive Committee appointments in FY21 and further senior management appointments in FY22 • Awarded WGEA EOCGE citation for 9th consecutive year; ranked 2nd in Australia and 8th globally in Equileap’s FY22 Gender Equality Global Report • Asset Management and Operations Program delivering significant operational efficiencies and improvements across markets • Strong HSE performance with zero employee recordable injuries, contractor Recordable Injury Frequency Rate (RIFR) of 3.09 (FY21: 3.75 1 ) and Road Injury Crash Index (RICI) of 3.78 (FY21: 4.29) • Balance sheet well positioned, including strong liquidity levels, debt covenants and credit ratings through COVID-19 related traffic disruptions • Strong cost management driven partly by management actions (e.g. negotiated lower vendor costs, reduced consulting and marketing spend) and partly by external factors (e.g. COVID-19 related cost reductions)

Customer and Delivery

People and Leadership



Following another complex year, the Board assessed the CEO’s FY22 performance outcome with respect to the Group’s overall performance and taking into account the CEO’s performance against his KPIs. A key factor this year related to the WGTP dispute. This was a difficult situation with settlement being reached in December 2021, in the interests of all stakeholders. Other considerations included the successful bid for WestConnex which increased proportional ownership to 50% alongside strategically aligned partners and extended the Group’s weighted average concession life to approximately 30 years.

Numerous development opportunities continue to progress and the balance sheet remains strong, providing certainty and the ability to support future growth. Customer satisfaction increased as did trust scores, and there has been a continued focus on managing costs, HSE and supporting workforce productivity and wellbeing. The Board assessed the CEO’s performance against his KPIs and determined an individual result of 100% to which the Group outcome of 85.3% was applied. After also applying a material adjustment to reflect Executive accountability in relation to the WGTP

settlement, the CEO’s final performance outcome was 43% of target, representing 28% of maximum opportunity. The Board considers this result to be aligned with the experience and expectations of security holders and other stakeholders. FY22 Executive KMP STI outcomes The STI performance outcomes and awards for the CEO and Executive KMP, which include the application of individual Executive accountability impacts in relation to the WGTP dispute (as detailed on page 97), are provided in the following table.

STI Deferred equity 2 ($)

STI as a % of target opportunity

STI as a % of maximum opportunity

STI Outcome

Impact of WGTP

STI awarded ($)

STI Cash ($)

Current Executive KMP S Charlton



981,000 = 490,500 + 490,500



H Byrne



372,600 = 186,300 + 186,300



M Huey



428,500 = 214,250 + 214,250



M Jablko



656,300 = 328,150 + 328,150



S Johnson



327,900 = 163,950 + 163,950



S Moorfield



502,800 = 251,400 + 251,400



H Wehby



442,600 = 221,300 + 221,300



1 F Y21 Contractor RIFR reported at 3.90 in end of year reporting materials. Following an assurance process on WestConnex, additional contractor hours were recovered lowering the FY21 Contractor RIFR to 3.75 2 S ecurities are subject to a two-year restriction period following the end of the performance year. Securities will be granted in October 2022


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