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

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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