Financial statements | Contents
Section B: Notes to the Group financial statements for the year ended 30 June 2025
B9
Dividends/distributions and Free Cash (continued)
Distribution policy and Free Cash calculation Free Cash is the primary measure used to assess the cash performance of the Group and generally represents the cash available for distribution. This measure is not defined under AAS and should be considered in conjunction with statutory disclosures. During the period, the Group revised the basis for calculating Free Cash. From 1 July 2024, the Group calculates Free Cash by aligning to proportional EBITDA (refer to Note B4) and adjusting for certain cash items, including net finance costs paid, debt fees paid, amortisation of debt and income taxes paid. The revised Free Cash definition is more aligned with operational performance, removes timing impacts and variability and improves predictability. The Group typically aligns distributions with Free Cash generated, with expected Free Cash cover of 95% – 105% for the financial year. The Group calculates Free Cash as follows: 2025 2024 5 Note $M $M Proportional EBITDA (new presentation) B4 2,676 2,651 Add: Non-recurring items 1 172 — (Less): Proportional net finance costs paid (784) (740) (Less): Proportional debt fees paid (19) (14) Add: Proportional debt amortisation 2 2 10 Add: M5 West maintenance cash expense 3 17 — (Less): Proportional income taxes paid (56) (40) Free Cash 2,008 1,867 Add: Movements in cash reserves 93 132 Add: Proportional capital releases 558 505 Free Cash (including cash reserves and capital releases) 4 2,659 2,504
Weighted average securities on issue (M) 5
3,106
3,090
Free Cash per security (cents)—weighted average securities (new presentation)
64.7
60.4
1. Relates to the ConnectEast litigation liability costs (for prior period roaming fees charged) and restructuring costs recognised during the period that have been excluded from Free Cash. Refer to Note B2 for further detail. 2. Debt amortisation on assets that are within the final 12 years of their concession life will be deducted. The M5 West's debt amortisation is not deducted due to the M5 West concession arrangement being transferred to WCX ownership at the end of the current M5 West concession arrangement in 2026. Certain non-100% owned assets partially fund their maintenance cash expense via financing cash flows. These financing cash flows are added back. 3. M5 West maintenance cash expense has been added back due to it entering its final maintenance cycle prior to the transfer of ownership to WCX in 2026. 4. Free Cash (including cash reserves and capital releases) previously reported for year ended 30 June 2024: $2,459 million. 5. The weighting applied to securities is based on their eligibility for distributions during the reporting period and consequently can be different to weighted average number of securities calculated in Note B8 Earnings per stapled security. 6. Comparatives have been restated to align with current period presentation. Franking credits 2025 2024 $M $M Franking credits available for subsequent periods based on a tax rate of 30% (2024: 30%) 184 150 Franking credits available for subsequent periods relate to Airport Motorway Holdings Pty Ltd $181 million (2024: $147 million) and Transurban Holdings Limited $3 million (2024: $3 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.
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