Corporate Report for the year ended 30 June 2022
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Section B: Notes to the Group financial statements for the year ended 30 June 2022
Section B: Notes to the Group financial statements for the year ended 30 June 2022
B10 Dividends/distributions and free cash (continued) Distribution policy and free cash calculation The Group typically aligns distributions with free cash generated. The distributions declared during FY22 are 122% covered by FY22 free cash (including capital releases). The Group calculates free cash as follows:
2022
2021
$M 982
$M 893
Cash flows from operating activities Add back transaction and integration costs 1
13 97
30 88
Add back payments for maintenance of intangible assets
Less debt amortisation of 100% owned assets 2
(14)
(10)
Less cash flow from operating activities related to non-100% owned entities Less allowance for maintenance of intangible assets for 100% owned assets 3,4
(369)
(376)
(60)
(78)
Adjust for distributions and interest received from non-100% owned entities M1 Eastern Distributor distributions Transurban Queensland distributions and shareholder loan note payments
—
54
186 267 364
165 170 342
NWRG distributions and shareholder loan note payments STP JV distributions and shareholder loan note payments
TC distributions
65
—
Free cash 5
1,531
1,278
Weighted average securities on issue (millions) 6
3,071
2,737
Free cash per security (cents)—weighted average securities
49.9
46.7
1. For the year ended 30 June 2022, transaction and integration costs comprise transaction costs relating to the Group's acquisition of an additional proportional equity interest in WestConnex through its equity investment in STP JV of 24.5%. For the year ended 30 June 2021, transaction and integration costs related to the Group's disposal of 50% of its interest in TC and integration costs paid in relation to M5 West. 2. From the date of the initial WestConnex acquisition in 2018, debt amortisation from M5 West has been added back to this figure due to the M5 West concession arrangement being transferred to the WestConnex ownership consortium at the end of the current M5 West concession agreement in 2026. Debt amortisation of 100% owned assets has been adjusted by $90 million (2021: $85 million). 3. The prior comparative period includes allowance for maintenance of intangible assets classified within discontinued operations. 4. Includes tag purchases. 5. Free cash for the year ended 30 June 2022 includes $255 million (2021: $278 million) capital release from STP JV and $100 million (2021 $nil) capital release from NWRG. In the absence of these capital releases, the free cash per security was 38.3 cents. 6. The weighting applied to securities is based on their eligibility for distributions during the year and consequently can be different to weighted average securities calculated in Note B9 Earnings per stapled security. Franking credits
2022
2021
$M 131
$M 115
Franking credits available for subsequent periods based on a tax rate of 30% (2021: 30%)
Franking credits available for subsequent periods relate to Airport Motorway Holdings Pty Ltd $103 million (2021: $75 million) and Transurban Holdings Limited $28 million (2021: $40 million). Distribution provision A provision for distribution is recognised for any distribution declared and authorised on or before the end of the reporting period, but not distributed by the end of the reporting period. These distributions are provided for once they are approved by the Board, are announced to equity holders and are no longer at the discretion of the entity.
146 146
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