Transurban Group

Thank you for standing by and welcome to the Transurban Group FY25 results call. All participants are in recent only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Craig Stafford, General Manager, Investor Relations. Please go ahead.

Good morning everyone and thank you for joining us for Transurban's 2025 full year results briefing. Transurban acknowledges the traditional owners of the lands throughout Australia and we pay respect to Elders past and present. We acknowledge our roads and infrastructure are built on country. With deep respect we incorporate the voices of First Nation peoples in our approach supporting equitable access to mobility across communities. We're joined today by our CEO Michelle Jabco and CFO Henry Byrne and together they'll take you through the presentation that we lodged with the ASX earlier this morning. We realise it's a very busy day today. The presentation should take about 20 minutes which will leave us plenty of time for Q&A and maybe an early finish. I'll now hand over to Michelle to get us started.

Thanks Craig and good morning to everyone on the call. This year we worked hard to deliver and to set ourselves up for next year and beyond. We did what we said we were going to do and today's strong result shows that. We increased distributions by around 5% and outperformed our cost guidance. We increased revenue by 5.6%, traffic grew across all markets and we achieved 7.4% EBITDA growth, keeping our costs flat. We also took decisive action to be a more efficient, growth-ready business. This has given us a platform to increase our distributions by 6% next year, creating longer-term value for our stakeholders. Over the past year, we've spoken about some of the complexities we had to work through in our business. We needed to reset our cost base, we needed to demonstrate more value to our customers, and we needed to reset some of our relationships. We have strong momentum on all fronts, with some important milestones coming up in the year ahead. We're well progressed on New South Wales toll reform and closer to outcomes that are positive for all. We have three major projects opening in the next year, each offering significant benefits to road users. In Australia alone, these new roads are expected to save over 28,000 hours of travel time each day, bringing relief to fast-growing communities. And we're exploring new ways to grow using both traditional and innovative approaches. We've realised efficiencies across every part of our business, making us more agile with a sharper focus. And we've reallocated investment into our customers, bringing together our physical and digital infrastructure as a point of differentiation. With these foundations coming together, we're in a strong position to act on new growth opportunities and keep the momentum going. With traffic, we're seeing resilient growth across all markets. North America performed strongly this year, with traffic up 6.4%. Sydney and Brisbane delivered solid underlying growth, even with the impact of Cyclone Alfred in Brisbane. Large vehicle traffic grew strongly in Brisbane, up 4.1% for the year. WestConnex saw a boost from the opening of the Government's Sydney Gateway, cutting travel times to the airport by up to 17 minutes for a round trip. And as we've touched on before, construction projects impacted traffic growth in Sydney. They should start to ease in FY26. In Melbourne, traffic growth grew 1.2% with more airport-related trips and weekend traffic. Construction impacts started to abate through the year and office occupancy remains at around 60%. So let's now look at our markets a bit more closely, starting with Sydney. One of our biggest near-term priorities has been finding an outcome on toll reform that works for everyone. And we're optimistic we're getting closer to a solution. You would have seen recent commentary from the New South Wales government stating discussions are collaborative and constructive. We're continuing to work positively with government to deliver solutions that meet their priorities, while protecting the significant investment we've made in Sydney's road network. As part of these discussions, we're making good progress on initiatives like toll notice simplification. All of this has taken time. The network is complex and there are many stakeholders involved. And we expect that the government will have more to say later this year. Also in Sydney, our M7M12 integration project remains on track to open mid next year. And looking ahead, growing congestion in the northwest presents further opportunities to enhance our network as the city grows. In Melbourne, our longer term fundamentals remain strong, and we're well positioned to benefit from macro trends like population growth. We've also made significant progress on the Westgate Tunnel project. As you can see on the slide, we're more than 95% complete, which is a big move from even a few months ago. As we've noted before, projects like these are naturally complex and not done until we're done, but we're now firmly in the final stages. We're planning with the State for a successful opening and looking forward to easing congestion in Melbourne's west. There have been a number of reports that the contractor has had some challenges, none of which are new or have slowed the project down, and work continues at pace. Claims are not unusual at the end of the project, and if any claims are made, we'll assess them in the ordinary course. Our Brisbane market continues to show great potential. It has the fastest population growth of all our markets, with congestion being a key concern. And there's also a sense of excitement as we get closer to the 2032 Olympics. The Logan West upgrade is progressing as we undertake investigative works and engage with the community. While there's still work to do, we're planning to submit the binding upgrade proposal in 2026, which is a key milestone. And more recently, we welcomed the government's 2032 delivery plan, which includes upgrades on the Gateway motorway. We're working through the details of this with the state, with our roads being central to connecting sporting venues, tourism hubs and the broader city for the games, and supporting Brisbane's growing population. As I mentioned, North America was a real standout this year. For a business that makes up around 7% of our traffic, it's having an outsized impact, delivering nearly 25% of overall revenue growth. Drivers are clearly seeing the value in our express lanes and not just during the peak. We're seeing traffic grow even outside congested periods and our pricing reflects that value. While everyone is watching the US economy closely, we know that the need for infrastructure is very local. Today, North America contributes more revenue than it did five years ago, and we own 50% less. We're confident there's a lot more upside to come from our assets, particularly with the Northern Extension Project opening this year. And more broadly, our partnerships in the US are enabling us to explore new cities in fresh ways, striking the right balance between risk and returns and creating optionality for longer-term growth. Delivering clear value to customers really matters. It's an important differentiator, both as governments consider new projects and as new policies like road user charging emerge. This year we've continued to take clear, targeted steps to enhance the entire customer experience. With the new travel time savings feature in the linked app, customers can now see exactly how much time they're saving, bringing the benefits of our roads to life. And we're expanding our linked rewards program with good feedback from customers and our rewards partners. So we know there is substantial value to able to be unlocked in this space. You'll be aware of the significant organisational change we made this year. It was a hard decision and not one we took lightly. So when we announced the change, we acted quickly, decisively and with care for those impacted. It was hard, but we're confident it was the right decision. And we're already starting to see the benefits. We're operating with greater focus, becoming more nimble and dynamic. And importantly, the capital released is being reinvested for our future. This means improved outcomes for security holders, direct benefits for our customers and more efficient operations, making work easier for our people and strengthening the safety and performance of our roads for our customers. It's a big year ahead. We have nearly $13 billion worth of projects opening in the next year. These are significant milestones that will drive growth and unlock new value. Beyond that, and with a strong balance sheet behind us, we're engaged with partners in more than $10 billion of new project discussions across existing and new markets. And the initiatives I've outlined today, like our digital investments and our focus on customer personalisation, are opening doors to new types of opportunities. Take road user charging, for example. We're encouraged to see the federal government considering this as part of the Productivity Summit. And the New Zealand government also announced they'll be taking a modern approach to road user charging. With our customer focus and mobility expertise, we're examining ways to support these initiatives. So I feel really pleased with the progress we've made and I'm excited about the opportunities ahead. Let me now pass to Henry to take you through some more details on the result and then we'll come back and go through questions.