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

Traffic growth is expected to be supported by new assets and long-term structural trends including population, employment and economic growth. Outlook

While traffic performance has shown resilience in the context of weather-related impacts, we recognise there is likely to be fluctuations around long-term growth trendlines and will continue to monitor and analyse changing mobility trends. This includes people’s workplace arrangements, the acceleration of online shopping and the preference for private-vehicle travel over public transport. In the current macro environment of rising inflation and interest rates, the business is well positioned with almost 70% of our assets having embedded inflation-linked toll escalation, which provides a built-in buffer in an inflationary environment. As at 30 June 2022, around 98% of our debt book is fully hedged which gives us very low exposure to near-term interest rate increases. The combination of inbuilt inflation protection and a balance sheet structured on conservative views around interest rates positions us well for growth throughout the cycle.

We have optionality to pursue near and longer-term growth opportunities in our core markets which, coupled with our long-term investment horizon, will enable the company to continue to take a disciplined approach in growing the portfolio to create long-term value while balancing growth in distributions to security holders. FY23 distribution expected to be 53.0 cps representing approximately 30% growth on FY22. This will be subject to the Group’s distribution policy as outlined below, traffic performance and macroeconomic factors, and timing of distributions from subsidiaries. 1 Distribution policy 1 Distribution is expected to be in line with Free Cash excluding Capital Releases, with the following exception. As previously stated, the acquisition of an additional 24.5% interest in WestConnex, 2 Transurban is likely to use a portion of the additional WestConnex Capital Releases 3 received in the two years following the transaction to minimise dilution in Free Cash per security associated with the equity raising.

Figure 22: Projects under development or delivery

1 Distributions to

be determined by relevant Board discretion at the time

2 Transurban’s proportional ownership in

WestConnex through its equity investment in STP JV increased from 25.5% to 50% on 29 October 2021 3 Additional releases received due to Transurban’s higher equity interest in WestConnex. Timing uncertain and subject to a variety of factors, including the relevant asset’s performance, debt capital market and broader macroeconomic conditions and amount of Capital Releases remain

Greater Washington Area 495 Express Lanes Northern Extension 95 Express Lanes Maryland Express Lanes Project—Phase 1

Sydney M4–M5 Link

Rozelle Interchange 2 M7–M12 Integration and Delivery

Melbourne West Gate Tunnel Project

Capital Beltway Accord Fredericksburg Extension


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