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

Operating performance

Waterfall chart Figure 19: Free cash flow reconciliation

1,531

17.6%

1,259

16

1,176

103

21 65

12

94

1,000

(83)

(12)

(13)

(27)

FY21 Free Cash excluding Capital Releases

EBITDA 100% owned entities

Distributions non-100% owned entities

Maintenance and other movements

Net finance costs 100% owned entities

Working capital

FY22 Free Cash excluding Capital Releases

FY22 distribution

FY22 Free Cash

Sydney

Melbourne

Brisbane

North America

Corporate

Key drivers EBITDA from 100%-owned assets The decrease in EBITDA from 100%-owned assets primarily reflected a year-on-year decrease in traffic in Sydney combined with an incremental increase in the cost base, with the prior year comparatively less impacted by government-mandated COVID-19 restrictions. EBITDA from 100%-owned assets is also impacted by the partial divestment of Transurban Chesapeake, with the Free Cash contribution from these assets now captured within the distributions from non-100% owned assets. While traffic was broadly flat compared to FY21, proportional toll revenue increased 5.7% year on year, driven by inflation- linked toll escalations across Transurban’s Australian markets and the A25 in Canada. Overall growth in costs was due to annual escalations, investments in new or enhanced capability, accounting-related changes and new assets, partially offset by divestments.

Distributions from non-100% owned assets There was an increase in distributions from non-100% owned assets with Transurban Chesapeake paying its first post-divestment distribution and incremental distributions resulting from the increased ownership in WestConnex. This was partly offset by reduced distributions from the Eastern Distributor, due to traffic impacts, increased tax payments and debt amortisation payments. Maintenance and other movements There was a small favourable movement due to the deconsolidation of Transurban Chesapeake assets from Group reporting.

Net finance costs from 100% owned assets Net finance costs declined due to the reduction in interest paid associated with Transurban Chesapeake following the partial divestment. Working Capital The favourable movement in working capital compared to FY21 was primarily timing related. Capital Releases Capital Releases in FY22 comprised $255 million from WestConnex and $100 million from NorthConnex, compared to $278 million from WestConnex in FY21.

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