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

—Case study—

Understanding what matters to our investors

WestConnex is one of the largest road infrastructure projects in the world and a key component of the NSW Government’s integrated transport plan to ease congestion and connect communities. WestConnex acquisition

eligible institutional investors taken up. All eligible retail security holders were also invited to participate in the entitlement offer. The offer price of $13.00 per security represented an 8.3% discount to Transurban’s closing price of $14.18 on 17 September 2021.

When complete, WestConnex will comprise a ~70-kilometre network linking Sydney’s west with the Sydney CBD, Sydney Airport and Port Botany. Around 40% of Sydney’s population is expected to live within five kilometres of WestConnex by 2031 1 . In FY22, Transurban, with its Sydney Transport Partners (STP) consortium members—AustralianSuper, Tawreed and a new partner, the Caisse de depot et placement du Quebec (CDPQ)—were successful in acquiring the remaining 49% equity stake in WestConnex from the NSW Government. This acquisition increased STP’s total ownership of WestConnex to 100%. Transurban owns 50% of STP. WestConnex is expected to deliver long-term value due to benefits including its long remaining concession life, traffic resilience, and defined pricing escalation mechanism. WestConnex benefits from the structural growth drivers of Sydney by providing a critical connection linking the population and employment centres in Sydney’s west and southwest to key economic centres. WestConnex provides critical connections for the commercial road transport industry, with 80% of the greater Sydney freight task undertaken by road and is well positioned to benefit from new government projects expected to be required to support expected future population growth.

WestConnex has close to 40 years concession life remaining. 2 The additional ownership in WestConnex, including the extension to the M5 West concession from 2026, extends Transurban’s weighted average concession life to approximately 30 years. 3 The strong fundamentals of WestConnex along with the upside potential of Greater Sydney economic growth and future infrastructure is expected to support long-term Group Free Cash generation and distributions for security holders. The FY22 distribution included an additional amount of 2.7 cents per security as a result of the additional ownership in WestConnex, providing an offset to short- term dilution from the transaction. Through the NSW Government’s bid process, the stake was acquired for $11.1 billion, including stamp duty, alongside our co-investors. Transurban’s contribution to the acquisition was funded through a combination of new equity and existing corporate liquidity with most coming from a fully underwritten $3.97 billion pro rata accelerated renounceable rights offer to eligible security holders. This offer structure was identified as the best way to recognise the support of our existing security holders, many of whom are long-term investors. The entitlement offer was well supported with 93% of entitlements available to

“We feel privileged to take Sydney Transport Partners’ holding in this critical asset to 100%. This transaction is expected to support Free Cash growth and distributions for Transurban security holders for the life of

the concession” Scott Charlton, Transurban CEO

1 In 2031, based on Deloitte Access Economics estimates and Transurban’s own internal estimates and assessments 2 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 3 P ro-forma remaining concession life as at 30 June 2022 with each concession weighted based on the contribution to Transurban’s total proportional revenue for FY22 in each concession’s respective region as reported in Transurban’s audited financial statements


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