2024 Corporate Report

Financial statements

Section B: Notes to the Group financial statements for the year ended 30 June 2024

Section B: Notes to the Group financial statements for the year ended 30 June 2024

B9

Dividends/distributions and free cash (continued)

Distribution policy and free cash calculation The Group typically aligns distributions with free cash generated. The Group calculates free cash as follows:

2024

2023 $M $M

Cash flows from operating activities Add back transaction and integration costs 1

1,631

1,459

9

Add back payments for maintenance of intangible assets

152

134

Less debt amortisation of 100% owned assets 2

(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 Less cash flow from operating activities related to maintenance obligations 4 Adjust for distributions and interest received from non-100% owned entities M1 Eastern Distributor distributions Transurban Queensland distributions and shareholder loan note payments 5

(556)

(518)

(61) (62)

(60)

25

47

559 320 400

232 212 176

NWRG distributions and shareholder loan note payments 5 STP JV distributions and shareholder loan note payments 5

TC distributions A25 distributions

30 21

33 12

Free cash

2,459

1,726

Weighted average securities on issue (M) 6

3,090

3,081

Free cash per security (cents)—weighted average securities

79.6

56.0

1. For the year ended 30 June 2023, transaction and integration costs include transaction costs related to the sale of the Group’s controlling interest in A25. 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 $108 million (2023: $98 million). 3. Includes tag purchases. 4. Relates to commercial payments received from third parties in connection with the Group's construction contracts, to be used for future remediation activities (refer to Note B17). 5. Distributions and shareholder loan note payments include capital releases received from Transurban Queensland of $275 million (2023: $nil), NWRG of $96 million (2023: $nil) and STP JV of $134 million (2023: $27 million). Excluding these capital releases, free cash per security is 63.2 cents (2023: 55.2 cents). 6. The weighting applied to securities is based on their eligibility for distributions during the year and consequently can be different from the weighted average number of securities calculated in Note B8 Earnings per stapled security. Franking credits 2024 2023 $M $M Franking credits available for subsequent periods based on a tax rate of 30% (2023: 30%) 150 128 Franking credits available for subsequent periods relate to Airport Motorway Holdings Pty Ltd $147 million (2023: $112 million) and Transurban Holdings Limited $3 million (2023: $16 million). Distribution provision accounting policy 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 declared and authorised once they are approved by the Board, are announced to equity holders and are no longer at the discretion of the entity.

139

138

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