Earnings Call: H2 2021

Aug 9, 2021

Great. Thank you and welcome everyone and thank you for joining us for our full year results briefing. And again, I hope that wherever you are listening to this, that you're safe and well. Today, I'm joined by our CFO, Michelle Jabko, and together, we'll take you through the presentation. We have lodged the ASX this morning and there's lots of material as well that supports the release as well. And I encourage you when you get a chance to look at our corporate report and some of the other mobility report and information that we've released this morning as well. We have our Investor Relations team on the call monitoring the call. And if we don't get to your questions, please follow-up with the team and we will get you a response. Today's presentation hopefully will take about 40 minutes and then we'll follow-up that with questions. So hopefully everyone's got the investor presentation in front of them, and we'll move right to Slide 4 and talk about some of the highlights. So the FY 'twenty one marked the 1st full year of the COVID-nineteen impacts for Transurban. And despite the challenges posted by the pandemic this past year, we believe we have demonstrated the resilience of our business model, we've strengthened our balance sheet and we continue to invest for long term growth. And I'll kick off this morning's presentation with some of the highlights for the period. So we'll start with traffic, which we saw trending up through FY 2021. Of course, this situation is continuing to evolve with the government mandated restrictions currently imposed in Sydney and Melbourne, and of course, they've just lifted in parts of Queensland, and I'll return to this topic though in a few moments. In Sydney, we opened NorthConnex, the M8 and we started tolling on the M5 East during the first half. And pleasantly, the assets outperformed our expectations even in FY 2021 conditions and they've also driven traffic across the wider networks such as the M2 and the M7. We're also very pleased to be selected as the preferred developer for Phase 1 of the Maryland Express Lanes project. This is our first project in collaboration with the Maryland Department of Transportation. And if we stay in North America, as everyone knows, in December of 2020, we announced the sale of a 50% stake in our 95 and 495 Express Lane assets and their associated development projects, which sets us up for accelerated growth in the region. We did continue to pay distributions throughout the pandemic as well as substantially invest in our growth pipeline. And now finally, with new members of the executive team having joined during this last year, we have the right capability for us to achieve our next phase of value creation and growth for the company going forward. I'll move to Slide 5 now and talk about some of the results summary. Traffic and proportional revenue were roughly flat year on year with the impacts from lower traffic largely offset by the contribution of new assets that opened during the year. Free cash was down 13%, primarily reflecting the impact of COVID on EBITDA in Melbourne and North America as well as increases in costs related to investment and strategic growth projects, which Michel will take you through later and largely relate to Transurban Chesapeake. The full year distribution was 128% covered by free cash, given the Board has elected though to retain the capital releases from WestConnex within the business for future growth. But still, we were more than 100% cash covered even excluding capital releases. Our statutory profit result reflects a $3,700,000,000 gain in relation to the 15% sale of the Transurban Chesapeake assets, realizing significant value for security holders for these long term quality assets and we're very excited to have our partners in that project. We've continued to make progress on the Westgate Tunnel project, although it is still a challenging situation. We've included a lot of information in this pack, and I'll talk further on this topic in a minute. Turning to Slide 6. Just a reminder of our long term strategy, which is to provide transport solutions that offer real and lasting benefits to cities and communities. On Slide 7, you'll see that both our strategy and our investment proposition have been tested they remain unchanged. We now operate 21 assets in 5 markets with an average concession life of 25 years in Australia and 46 years in North America. We have confidence that the core fundamentals of our assets will support long term traffic growth, supplemented by a strong opportunity pipeline, which continues to grow. We believe our ability to listen to our stakeholders and develop solutions to meet their needs is core to our competitive advantage as we seek to work with governments to help them fulfill their long term infrastructure plans in some of the most dynamic cities in the world. We're focused on maintaining financial strength and flexibility, so the business can meet its growth ambitions as well as growing distributions over time. So getting into a bit more detail, if I move to Slide 8, talk a bit about the traffic overview. Shows the performance of traffic over the last 8 quarters. And you can clearly see the recovery trend through the period, supported by our diversity across our markets and accelerated by the contribution of the new assets in the portfolio. Slide 9, we've provided a lot more detail, not only of what happened last year, but what's happening over the last few weeks or last month. And you can see in the markets with relatively few restrictions like Brisbane and Sydney, there was a positive trend through the second half, with both markets, again, recovering to pre pandemic levels. That contrasted with Melbourne, where we saw repeated and extended lockdowns through the second half. And the ongoing restrictions like masks being enforced indoors directly impacts the working environment and therefore the patronage on our roads. And finally, in North America, we saw a steady positive trend through the second half corresponding to the vaccine rollout in Virginia, Maryland and Montreal, where the vaccines now exceed between 55% 65% in those jurisdictions. This coincides with an improvement in pricing on the Express Lane assets as well. Unfortunately, we have seen now government mandated restrictions reimposed in Sydney, Melbourne and Brisbane during July August. While this is not where we wanted to be at the start of the new financial year, we have the experience and the data to give us confidence that when restrictions are lifted and they will be eventually traffic will bounce back and it tends to come back very strongly and quickly. Moving to some of the highlights in relations to what we've been working with our customers for the last year. Been more focused obviously the never on delivering for what we have is almost 9,000,000 customers now that choose our roads for various reasons, whether it's travel time savings, safety or just more reliable travel. One of the best tools we have in our toolkit is our data, and we have a lot of it. Our customers are taking over 2,000,000 today, and we analyze this alongside feedback received through our Voice of Customer program and substantial other research that we undertake. And many of the changes that we make in our systems or our processes are direct feedback from our customers and such things like decision point signage campaigns that are currently being undertaken. We're also building an extensive support on building on our extensive support, which we rolled out during the pandemic to support our customers and then it's now being embedded in supporting those customers in financial need or hardship. In our most recent initiative for the millions of our linked customers across Australia, we'll provide the chance to claim prizes, including electric vehicles and free tolls as part of our efforts to help get people moving again and support the COVID vaccine rollout program across the various states. If I move now to Slide 11, and you'll have seen this opportunity pipeline previously. It continues to be large and growing and it's balanced between both greenfield and asset enhancement opportunities and some M and A activities. We're also delighted to see Brisbane named as the host city for the 2,032 Olympics and believe it's a potential catalyst to accelerate infrastructure and investment in Southeast Queensland with the private sector having an important role to play. Likewise, we are very optimistic on the opportunities that may develop in the U. S. A. Given their support for a $1,000,000,000,000 bipartisan deal to overhaul the country's infrastructure. And we note that nearly $300,000,000,000 of that is earmarked for transportation projects. So in summary, there's plenty of opportunity for us to pursue in our core markets that are consistent with our strategy, and we believe that the macro trends are in our favor. Turning to one of the biggest opportunities in the near term is on Slide 12, which is the New South Wales Government sale of its remaining 45% stake in WestConnex. Transurban alongside our co investors in Sydney Transport Partners are intending to submit offers for both tranches of 24.5%. At this time, we're obviously quite limited in what we can say given the competitive process, but I want to make a few points on the funding. We are coming into this transaction with a strong balance sheet, particularly given the proceeds we have on hand from the sale of 50% of the Chesapeake assets as well as retain capital releases. If successful, we will likely raise equity to support the transaction as we have traditionally done in the past and we will retain some of our existing funds for additional growth projects. If we are in the position that we're coming to the market for equity, it will likely be similar to what we have done in the past regarding recognizing the benefits of rights issues in taking all factors of fairness and efficiency into account. In relation to our approach on WestConnex on Slide 13, we feel best placed to understand the value inherent in this WestConnex portfolio given our experience in operating the assets to 2018 and even doing the due diligence for 2, 3 years prior to that. This is a complex portfolio of assets, compromising over 4 50 kilometers of motorway, including 10 tunnel structures, to which a number of new assets will be connected over the next 10 years. We believe that we are the natural owners of this infrastructure given our direct experience in owning and operating these type of assets, particularly as these assets are both managed and operated by Transurban and STP. And again, notwithstanding the results of the transaction, STP retains operational control of WestConnex through to the end of the concession in 20 60. Now turning to one of the other major projects that we're working on and seeking to progress on the West Gate Tunnel, let me again reiterate the importance of this critical infrastructure project for Victoria. Everyone in Victoria knows an alternative to the West Gate Bridge is desperately needed to help provide quicker and safer trips for thousands of Melbourne Motorists. We share in the disappointment and frustration of the community from the delays and challenges because we know how transformative this project will be. This project began originally in 2015 with Transurban and the Victorian government undertaking a comprehensive project development and tender process. And the D and C subcontract was awarded to CPB John Holland joint venture in late 2017. Significant progress has been made to date on construction with our proportional $2,700,000,000 spent, but over $3,000,000,000 spent total on the project. However, we expect the tunneling to get underway in 2019 and this has not occurred due to changes in the classification of soil containing low levels of PFAS. The classification changes required a purpose built disposal facility for the tunneling spoil with associated environmental and planning approvals also contributing to the delay. These issues have resulted in a dispute between the parties. However, impacts associated with COVID and delays relating to relocation of utilities have also contributed to the disputes. We had hoped to have this project open for the community next year. As we discussed previously in other announcements, this is no longer achievable, we're unable to put a reliable time frame on the project and when the project will be complete until the TBMs commence. But if I turn to Slide 15, I think it's very important to understand that we are doing everything we can to help get this project on track. We've taken a number of steps keep construction moving, including providing cash flow support to the builder. And we are funding the preparation works for this boil disposal site to enable the tunneling to get underway as soon as possible. In parallel, the parties have agreed to a mediation process following an independent expert determination. However, legal pathways can always be pursued by any of the project parties under the existing contracts. And in relation to the disputed matters, in this regard, Transurban has been through a process and we remain confident in our position regarding our contractual rights and liabilities. So we wanted to be transparent that this is a difficult and complex issue, and the estimated cost to complete differ between the project parties, and there remains a number of matters to be resolved. But we believe the successful delivery of this project is in the interest of the community, and we're prepared to make further meaningful contributions to resolve the challenges, which we believe is required from all project parties given the circumstances and responsibilities under the contracts. A bit of update on what is actually happening on the project, because we can't lose sight of how much work has actually been done to date. There have been over 24,000,000 hours worked. And anyone who has driven through the project corridor recently will be starting to see the shaping up of 4 new lanes on the Westgate Freeway and instructions to bridge the Merabiong River and along Footscray Road. And we know people are sick of being stuck in congestion that residents are tired of trucks on their local roads. And when completed, the Westgate Tunnel will reduce 20 will take 20 minutes off their daily commute and we'll move over 9,000 trucks a day off of local streets. Talk about some of the other good work that Transurban is doing in the ESG space. These considerations are integral to our decision process at Transurban, if you look on Slide 17. And there's so much happening in this space. And I encourage everyone to click on links to some of our statements to everyone to go have a look at what's being done, it's impossible to try and summarize on 1 or 2 slides how much work the group is doing and we're very proud of it all. Some of the highlights are during the period, we increased our climate change initiatives with a net zero target by 2,050, and we're one of the first companies in the ASX 20 to have targets validated by the Science Based Targets initiative. Starting from next year, we expect to see our emissions profile reduce quite markedly, in line with the ramp up of our renewable energy used on our assets. Again, we published our corporate report today, our sustainability supplement, and that gives substantial detail on our integrated approach on different ESG issues. We are pleased to continue to engage more with the investment community on these issues and we welcome your feedback on our report and what we're doing. I'm now going to go through some quick highlights of the individual markets, and I'll jump to Sydney to start with, which is our largest market. Toll revenue actually grew by 19.2% over FY 2020 with traffic up 22.3%. As I mentioned, city traffic volumes benefited from the contributions from the M8, the M5 East and NorthConnex. However, even without the contribution of these new assets, traffic was up almost 5% on FY 'twenty and down just around 2% versus an unaffected COVID year of FY 'nineteen. In May, we also provided data and analysis as part of our response the New South Wales Parliament's inquiry into road tolling regimes, which is publicly available. And we welcome, again, an opportunity to engage with policymakers and take a pragmatic look at tolling regimes to potentially create a better proposition for our customers. We continue to work very actively with communities in Sydney. And during the financial year, we delivered some fantastic initiatives, including the West Gate sorry, the West Connects Canal to Creek public art program, which again you can see in some of our material. If you look at the Sydney portfolio and pipeline on Slide 2020 highlights some of the solutions we're providing to our customers and our communities. And we're making good progress on the detailed proposal for the M7 M12 project, this will play an important role in connecting the new Western Sydney Airport and the existing M7. We're hopeful that our proposal for this project will enter the 3rd and final phase of the New South Wales Government's unsolicited proposal process later this year. Moving now to our Melbourne market update, where toll revenue fell by 17.6% and traffic volumes by roughly 24.5% on CityLink. The city continued to see impacts from repeated lockdowns through the second half, but overall performance did improve in the half. The Western Link continues to be impacted more significantly given exposure to the CBD and airport related traffic. That there are some exciting and interesting things coming forward, and we expect to see some improvements on Burnley Tunnel with a virtual reality trial this year using some lighting technologies from Japan to manage driver speed. We hope this will result in smoother traffic flow and less congestion in the tunnel. If I move now to the Melbourne sorry, the Brisbane market on Slide 23. In Brisbane, we saw toll revenue increase by 7.7% an average daily traffic increased by 6.2% and traffic was roughly flat on the FY 2019 levels. As I mentioned earlier, Brisbane has benefited from the least impacts of COVID of any of our markets. And although the government has put the city into lockdown several times in 2021, these restrictions have tended to be short and we've seen traffic bounce back quickly. In July, we began the process of transitioning 4 individual control centers into a new integrated center from which we'll eventually operate all 81 kilometers of our network across Brisbane, and it's been a fantastic initiative and will help both with safety and operations. Moving to North America. Traffic declined 13.3% on FY 'twenty and toll revenue declined by close to 40%, driven by lower average tolls across both 495 and 95 Express Lanes. Pleasingly, as I said, we've seen toll prices on both assets increase quarter on quarter throughout the year, reflecting the increasing traffic levels on these roads and growing congestion on the competing roads. In the U. S. A, more drivers are now using our mobile tolling app GoToll as well. In FY 'twenty one, we've expanded this service from Virginia to 4 additional states, including California, North Carolina, Georgia and Florida. So GoToll is now available in 43 roads across 5 states with the potential to reach tens of millions of drivers. And giving an update on our projects in the Greater Washington area on Slide 26. In Virginia, the government has accepted our binding proposal on the 495 Extension Project. Again, if everyone's familiar with that, it extends the express lanes by 3 kilometers toward the Maryland border. We expect to reach commercial and financial close on this project by mid well, by the end of this calendar year. Further south, we're making progress on FedEx, which is the extension of the 95 Express Lanes by 16 kilometers. The project is it's currently tracking behind schedule. However, we're collaborating with our D and C contractor on the construction challenges with work continuing in the meantime and we're about 40% complete on that project. Again, in Maryland, we're very pleased with the Phase 1 of the Express Lanes project, and it was reaffirmed as part of the long term plan the region by the Transportation Planning Board recently and the next step in the process is the Board of Public Works approval of our public private partnership agreement, which we expect to receive later in this week. If we look at the pipeline of opportunities or the slide with the projects, we're focused on the pipeline in North American market and feel we're well position, particularly given the recent introduction of our strategic partners in Transurban Chesapeake. We continue to engage with the Quebec government in relation to potential future opportunities in that region as well. And with that market overview, I'll now pass over to Michelle, who will walk through the financial results for the period. And welcome, Michelle, to your first results. Thanks, Scott, and good morning, everyone. I'm very pleased to be speaking with all of you today, this being my first result here at Transurban. As Scott This result reflects just how resilient our business model is and also demonstrates the capacity we've created To support our longer term growth. We know that distributions and growth are both important to you. You can see here on my first slide, 29, that we distributed around $1,000,000,000 to security holders in the past And also manage the balance sheet to ensure we have capacity to enhance longer term value. Our distributions were equal to 100% of free cash, excluding capital releases. If we add capital releases And also the net proceeds from our 50% sale of Transurban Chesapeake. We generated $3,500,000,000 which has strengthened our liquidity position And provided capacity to support growth. You can also see here that even with COVID restrictions throughout the year, Our revenue was flat at $2,500,000,000 What made the difference was the diversity of our business mix, resilience in commercial traffic And the benefit of new assets. And good cost management meant that EBITDA was $1,800,000,000 down 3% year on year, a good result Let me now take you through some of the detail and then I'll spend some time at the end Covering financial considerations for the coming year, recognizing that COVID related uncertainties continue in the near term. So starting with free cash on Slide 30. As I mentioned, free cash, excluding capital releases, was $1,000,000,000 And was all paid out to investors. This was 13% lower year on year. There are a few key points to call out here. Firstly, the largest driver was lower EBITDA from 100 percent owned operations, given COVID restrictions in Melbourne and North America. The North American outcome was exacerbated as Transurban Chesapeake became a non 100% owned asset on 1 April And therefore, deconsolidated from that date. This was partly offset by higher distributions from non wholly owned entities. Some of these entities released distributions that had been deferred or held back at the end of FY 'twenty and NorthConnex made its 1st distribution in FY 2021. The working capital movement that you can see of $49,000,000 Mostly reflects an increase in customer receivable balances back toward their pre COVID levels by 30 June. The movements in tax and net finance costs were largely because of one offs in the prior year. And net finance costs were also higher Because of initial interest payments on corporate debt raised in late FY 2020 to fund our development activity. So underlying free cash of $1,000,000,000 and then we brought forward $278,000,000 in capital releases into FY 2021 With our WestConnex U. S. Private placement, this was achieved at an average tenure of 14 years. Given the Board's decision to pay distributions out of free cash excluding capital releases, our free cash coverage was 128%. The next slide provides a brief overview of our statutory result, which was a profit of $3,300,000,000 This was largely driven by the gain on sale for 50% of Transurban Chesapeake, which reflects the long term value of these assets And was a real highlight of the year. Moving on to our proportional results on Slide 32, Which give you a good underlying view sorry, a good view of underlying business trends. Proportional EBITDA was 2.8% lower for the year or 2 point 4% if you look through the impacts of FX. This was a solid result, given the full year impacts of the pandemic, Including repeated lockdowns and restrictions on movement in our markets. On a like for like basis, toll revenue was down $94,000,000 Our Melbourne and North American assets were most affected with the impact in Greater in the Greater Washington area also impacted by reduced pricing With lower congestion on adjacent general purpose lanes. As Scott mentioned, traffic in Brisbane was generally higher than pre COVID And Sydney performed well, exceeding 2019 levels in the second half of the year. Commercial vehicles were resilient with all regions except Melbourne experiencing growth and commercial vehicles overall Our new assets helped offset the financial impacts of the pandemic And contributed $63,000,000 to the result after adjusting for divestments. The M8, M5 East and NorthConnex performed better than our pre COVID investment case expectations. And we had the benefit of additional ownership of the M5 West. Moving now to costs on Slide 33. We manage these well. You can see on the slide That underlying operations and maintenance costs were $10,000,000 lower in aggregate year on year. We achieved savings in a number of ways. For example, through resource and customer account management, lower tolling expenses and lower travel costs. All of this more than offset inflation and contracted cost increases. We achieved this while continuing to invest in our customers, Including the expanded link to Sys program to support vulnerable customers and investment in data and analytics to assist customers in making Form choices about using our roads and to guide future improvements. While costs increased 7.8% overall, this was due to new assets And higher investment into strategic growth projects. These include our opportunity pipeline in Sydney and North America And costs related to the Transurban Chesapeake transaction. So all in all, good cost management, but not at the expense of longer term investment. Moving now to margins on Slide 34. As you can see here, The proportional EBITDA margin was 70.3% for the year. While the full year outcome was 2% lower than last year, We saw good recovery in margins in the second half, as traffic recovered across a number of markets. You can see this in Sydney, Melbourne and North America. Brisbane was much less impacted by COVID to begin with. There were also some timing differences and one offs that flowed through to margins and we've called these out on the slide. These include the full year benefit from completion of the Logan Enhancement Project In August 2019, the ramp up phases and liquidated damages on the M8, M5 East and NorthConnex and the opening of the 395 Express Lanes. All in all, margin outcomes demonstrate the underlying resilience of our business model and relatively quick improvement when COVID restrictions ease. Moving now to the balance sheet on Slide 35, which is in really good shape. We currently have just under $6,000,000,000 of available cash and undrawn corporate debt facilities. This includes the net proceeds from the sale of 50 percent of Transurban Chesapeake and $278,000,000 in capital releases, Which was the first step towards our estimated $2,000,000,000 in capital releases by FY 2025. We also demonstrated through COVID that we've got significant financial covenant headroom and we've had really good continued access to markets, Raising $10,200,000,000 of debt across the group, 78% of which was to refinance existing or maturing debt. And we maintain strong investment grade credit ratings. All of this provides financial flexibility As well as support for our pipeline of committed and potential opportunities. Our overall debt tenure has reduced slightly from 8 point 4 to 7.7 years as we deconsolidated the Transurban Chesapeake debt post sale, which was relatively much longer dated. Excluding this, our weighted average maturity would have increased slightly to 8.5 years. Our weighted average cost of debt Has continued to come down with successful refinancing activity taking place throughout the year at favorable rates due to supportive capital markets. Our quality asset base, strong relationship with debt providers and the liquidity currently available in the market, All enabled us to build certainty for the future with almost all of our debt hedged and low refinancing risk. I show this in more detail on the next slide. As we spoke about at our Investor Day in May, we take a conservative through the cycle view our medium to long term interest rates and these form part of our stress testing approach. This helps inform us on a range of decisions, Including future capital releases and capacity to access additional funds for growth. Looking at our near term interest rate we're in good position. Firstly, almost 100% of our book was hedged at 30 June. And then if you look at the maturities coming through over the next 2 years. Most of them are above our average cost of funds. You can also see we have a very manageable quantum of debt to refinance in the coming year. Interest rates are obviously connected to inflation, which has correlation to our revenue. As you can see on the right hand side of this slide, most of our assets have CPI linked price escalations as part of their concessions. This will help to partly offset any interest rate increases over time. Moving now to Slide 37. Let me take you through some financial considerations for the coming year. As Scott said, COVID restrictions have continued into the new financial year. The diversity of our markets and essential nature of our roads Has continued to support the business. However, there is ongoing uncertainty in the near term. How this comes through in FY 'twenty two Will of course depend on the length and nature of any restrictions and the speed of recovery. It's really hard to give guidance. So what we've tried to do is set out some reference points on this slide that might help you estimate the impact of restrictions on proportional revenue as they arise. So for example, you can see here that based on FY 'twenty one data, a week of lockdown in Sydney had an impact of between $10,000,000 $12,000,000 on proportional revenue. The impact was Less in Melbourne at $7,000,000 to $9,000,000 per week, but the recovery period was longer. And in Brisbane, the impact was around $5,000,000 to $6,000,000 per week. The most recent lockdown in Sydney since the end of the financial year has had tougher restrictions than we saw in FY 2021, Including restricted construction activity, which is and this has reduced the movement of heavy vehicles. We saw impacts of around $16,000,000 to $18,000,000 per week in Sydney in the second half of July. And then in relation to costs, there are a few points to note here too. Firstly, there's been a change to the Australian accounting standard for software as a service, Which requires more of this spend to be expensed rather than capitalized. The impact in the coming year could be up to $30,000,000 There are some other unavoidable cost increases with insurance premiums going up by nearly 50% and subject to the length Of COVID restrictions, we could see some normalization of cost savings from FY 'twenty one. We're also planning some FTE increases to support our business in the next phase of growth. Although naturally, we'll consider the extent of these in the context of COVID So moving to my last slide. As I stand back from our financial performance for FY 2021, we've done much to support our ongoing investment proposition. Having started with Transurban just a few months ago, I've been impressed with the resilience of the balance sheet and business model. This stood us in good stead to manage through the pandemic, While continuing to pay distributions to security holders and support our people, customers and other stakeholders. And we built on this with the Transurban Chesapeake transaction and significant refinancing activity throughout the year. We have a portfolio of cash generative assets, including some of which are still in their ramp up phase. We'll continue to demonstrate strong financial discipline in the way we manage the business and the balance sheet. Clearly, we continue to face uncertainties given the unpredictability of COVID and its right to remain prudent. All of this will help support our committed and future development pipeline and distributions for investors. Thank you. And I'll now hand back to Scott. Thanks, Michelle. Well done. I should make a comment about Sydney as well. I think it's interesting data and hopefully that will help you with your models or analysis and how we go forward. And Michelle's comment about Sydney, since we've seen government then lift the restrictions on construction, we've seen it bounce back to those previous sort of numbers pre the construction restrictions. So that's good to see. And we support doing everything we can to support the construction industry in New South Wales getting back to work as well. In addition to the presentation material on our results in our corporate report, we also published what is in the 3rd of our sort of industry reports. As you know, we spend a lot of time at Investor Day talking about future trends, strategy, the data we have, the analysis that we do on a market is really one of the strengths of Transurban. So we provided a report today, and we were looking and talking to the different markets about, again, the changing in mobility habits, both in the short term and considerations around long term. Again, what this data is showing with COVID and the restrictions that are happening is a continuing preference for private vehicles over public transportation. This will continue to put additional pressure on the roads, which we're already reverting to pre COVID norms during peak periods in FY 'twenty one. And we expect, as restrictions release or the vaccine rollout makes substantial progress, that will be the case going forward. And in parallel, at the same time here in Australia as well as we see overseas, we're having a declining road funding model with the uptake of 0 emission and high efficiency vehicles, which we see various discussions at state governments and the press and regarding what that mean going forward. We've long been an advocate for the adoption of 0 emission vehicles or electric vehicles as well as a need for a fair long term road funding system. So in producing this kind of research and working with our partners in the industry and government, we look forward to playing a constructive role in this complex area that we believe will eventually lead to more efficient, fair in Integrated Transport Networks. And again, if you go have a look at that report, which is you can link to it from the investor presentation, I think you find a lot of very interesting data and material and analysis. So moving to the last slide and the few comments on the outlook. Again, we have to reiterate that our performance this year will remain sensitive to the government responses and economic conditions in each of our markets, including the pace of the vaccine rollout. But I think the good news for our long term investors and security holders it is that our experience gain since the COVID, we have many reasons to be confident and optimistic that when the restrictions are lifted, traffic will rebound and then that will be underpinned by the essential nature of our road networks and diverse reasons that the customers continue to use our toll roads. Michelle has highlighted the funding availability and optionality that we have to support our development projects as well as, again, what I've said is the largest pipeline of future growth opportunities that I've seen since we've been at Transurban. But as always, and I think I've been consistent, we've all been consistent in this, we will focus on balancing the distributions for our security holders. We understand how important that is, but also creating long term value while we maintain our capital discipline. As Michelle said and as the Board's reiterated, in this financial year, we will pay distributions in line with free cash, excluding any capital releases and that the capital releases will be retained for future growth and balance sheet strength. Again, we are very focused on creating lasting value, not only for our investors, but for all of our stakeholders. We look forward to reporting on our achievements in each of these areas in the next financial year. But in the final wrap up, I'd like to mostly thank the team at Transurban who've worked so hard through this very difficult period to contribute to these results. I'd like to thank our security holders who continue to support us and for everyone attending today's call. And with that now, we'll open to questions for Michelle and myself. Thank you. Thank Your first question comes from Rob Koh from Morgan Stanley. Please go ahead. Good morning. Thanks very much for the presentation. Just a question on the mobility trends report. I guess This is now, I think, the 3rd iteration of that. Can you comment on how predictive the survey results have proved to your traffic forecasting? Yes, they've been pretty I mean, again, when you're forecasting, there's 2 different kind of forecasts. When you're doing strategic sort of network forecasting, Rob, you're forecasting over 20, 30, 40 years, you're not reforecasting on a sort of a daily basis. But what it does show is that we've got consistent results now through all three surveys that basically show an uptick in private vehicles versus public transport, particularly over the near and medium term. It also continues to show that still I think it's still between 85% and low 90% still want to get back to the office. So I think while there'd be some shorter term impacts, we still think again the longer term trends and other issues will favor our assets in the longer term. So it's fairly consistent even though we've gone for a long fairly long period with the COVID. Okay, great. Thank you. My next question relates to management KPIs and long term incentives. I'm reading the remuneration report section. It suggests that you're moving to full year testing, But from 3 years, but there's no inclusion of a free cash flow metric in FY 'twenty two Similar to last year, I guess given that you're now able to give us pretty granular financial impact estimates for COVID like Slide 30 Can you talk to when you might expect to put free cash flow growth back into the KPI metrics? Yes, I think that would be a preference of the Board and we were looking at it this year. But with the unpredictability, given the amount lockdowns and restrictions very difficult, which would mean potentially constantly looking at adjusting that because it would be either unfair to management or it would just require a lot of potential adjustments because of just the uncertainty of what we're seeing until we get the vaccine rollout. So I think once we get to more stable arrangement in relation to lockdowns that, that will be something the Board will certainly consider. And I would say, it's up Board's decision, I would say there would be a preference to add that back, Rob. But until there's a bit more certainty around what's going to happen with lockdowns. It's very hard to use that as an incentive. Yes, yes, understand. And just on those estimates, this is Slide 37, where you've called out rough financial impacts. Do those revenue impacts include the toll forgiveness initiatives, which I think historically haven't been huge numbers, But it's still very important to social license. Yes. Look, I think in the overall scheme, I think that's just you can use those as the numbers that's close enough it's not going to and again, those are the rough estimates are circa those numbers. Each lockdown has its own anomalies or is a little bit different, but we just thought that was a good guide to consider. Yes. I think The ranges we've provided, I think it will be within those. Yes. Okay. Thank you. That's very helpful. Yes. And just, I guess, Last question, if I can have one more. Can you give us a sense, Ms. Jebko, of the kind of length of time that we'd need to remain in lockdown For debt covenants to be heading down to lockdowns. Is this something you could give us? Yes. I mean, what I can say is we do a lot of Stress testing of the balance sheet, and there's significant headroom on our covenants. So covenants are not The concern? It's kind of an impossible question, because it matters what the kind of lockdown, how it affects individual assets. I think to Michelle's comment, something I wouldn't say we don't worry, we obviously look at it, stress test it. But given the liquidity, what we've been through previously, where we are vaccine rollouts where we are with the states probably handling it in better than they or having a little more level of certainty than we did in the first this time, I think we're pretty confident with our position, Rob. All right. That's clear. Thank you very much. Appreciate it. No worries. Thank you. Your next question comes from Owen Birrell from RBC. Please go ahead. Hey, guys. Just a couple of questions from me. I'd like to just start with the Westgate Tunnel project dispute update, some really good numbers in there. I appreciate you guys being able to provide those to us. I just wanted to confirm firstly The estimate of the D and C subcontractor construction costs, you said that it could increase in the order of 3,300,000,000 Can I just confirm, is that $3,300,000,000 total cost to the subcontractor? Or is that $3,300,000,000 in addition to the 2.7 that they're already contracted for. No, the original contract, I think, was I have to go back to the original. Yes, their total original sum of the project was $6,700,000 but the D and C contract was less than that because that included a bunch of other issues, I have to go back on to the exact number, but that 3.3 is the cost overrun of the original contract. Right. So that's in addition to whatever they Yes. Correct. Okay. Now you've mentioned that that cost will ultimately have to be, I guess, borne by all parties through some sort of commercial settlement. Can you confirm that you're including the Victorian government Within that grouping? Yes, I think there's 2 issues. What we say is, we think it's most important. First of all, we believe it's still a fantastic project and the most important thing is get the project done as quickly and efficiently as possible. And we think the best way to do that is to reach a commercial settlement between all three parties that are involved. In order to do that, we believe all parties have to contribute in a meaningful way. That's what we're saying. However, if that is not achievable, then we can obviously there's legal pathways under the existing contracts and legal pathways will result in whatever the courts say is liable, who's liable for the disputes and the outcomes. We prefer to try and reach commercial settlement and move this project as quickly as possible. But to do that, all three parties are you contribute. So, Joe, just clarify. On the D and C original D and C subcontract was around 5,000,000,000 approximately $5,000,000,000 out of the $6,700,000,000 Okay. So that increase in cost of $3,300,000,000 can I just confirm whether that Includes the $132,000,000 spoil disposal site activation work or is that separate? Look, we're not going to get into like the fine details of all that, but I think we'll just leave it at that. We think that to finish the project, it's going to cost $3,300,000 That's our estimate is backed up by an independent third party. And as you said here, the D and C subcontractor is claiming a higher amount than that. It wouldn't surprise you that and I have been on that side of the table that it wouldn't surprise you that normally D and C contractors claim as much as possible and then yes, but that's our estimate and independent parties back that up. And just to confirm, the delay in the delivery of West Okay. Tunnel, does that in any way affect the timing of the extension commencement On all the nature of the extension on the ceiling tolling. It doesn't affect the timing. So but under the contract, there's liquidated damages and other recourse to the contractor for being late that would compensate us for delays in completion, but it doesn't extend the concession extension isn't tied to completion date of the project. Okay. And look, just a final question for me. Actually, this is probably more for Just wondering why the Chesapeake assets are now equity accounted given that you own 50% and you control the asset? It's because we don't control the asset in the way the board and other, arrangements set up in the shareholders agreement. So we operate the assets. We operate the assets, Owen. But, with the way the Board and decisions are made at the Board, it's under the accounting standards, we're not deemed not to control the asset. Because it's a separate entity and separate board. Separate decision and our partners have equal say in budgets and other things, which is the same arrangements in WestConnex and some of our other Thank you. Your next question comes from Ian Myles from Macquarie. Please go ahead. Hi, guys. Just a quick question. In your commentary, you talked about retention of some of the Proceeds associated with the sale of Chefskya CapEx. Just wanted to get more clarity, what's the thought process why you may need to retain that given you've still got Hi, Nat, given you've still got probably $1,700,000,000 of capital leases to come through your existing roads, which would fund levels of growth. I well, good morning, Ian. Good morning. Yes, I think yes, good to hear you. Look, I think well, I know, I think I mean, the Board and management, as Michelle has said, tend to be on the more conservative side. We have 10 when we've done major projects to come to the market to raise equity associated with those projects. That's most likely, again, going to be the case in WestConnex, where there's 1 or 2 tranches that's raised and so then that leaves us, obviously, as you said, with some excess capital. And we expect we've got the M7, M12 coming. We I have Project NEXT and other things coming. Appreciate that, that may leave us with some capital, but we tend to be, I guess, a little bit more conservative in these times in relation to the balance sheet and funding, so we just wanted to make sure that it was pretty transparent that if we were to win portions of WestConnex, we're most likely to come to the market. Okay. And on the M12 M7, can you maybe give a little bit of color? Are you talking about Being the actual constructor of the M12 itself or just the intersection to the M7? Yes, yes. That's a good That's a good Process? That's a good question. Yes, it's really just the, what we're proposing and it hasn't been accepted by the government, so it's still down the government. What the proposal is, we would do the interchange because it's obviously on our asset, on our land, affects our road, which we can manage disruption better. So it would be the interchange between the M12 and the M7, the widening of the M7. But obviously, the interchange is a substantial interchange, not too dissimilar from what you see at M4, M7. And does your proposal on that M7 Require significant upgrading like the M4 and change as well? No, not Not substantial, no. It does require obviously works on ramps and things like that, but not that's not the substantial portion. Thank you. Your next question comes from Ben Bradshaw from Barrene Jolly. Please go ahead. Yes. Hi, Scott. Good morning. I just have a few questions in relation to Westgate. Firstly, I was wondering if you could talk just broadly about Indicative timeframes that you would be expecting for, I suppose, the affected soil to be, If you like, remove from the relevant areas and taken to the designated sites. And if you could just also comment, please, around whether the facilities are Able to receive the soil, assuming the dispute is able to be resolved or whether they're still under construction. Yes. So we're, as we said in our presentation, we're financing the to the activation of the high quality site. So we believe that site should be and it has all its environmental and planning approvals. We believe that site should be available and ready to take spoil early next year. So there will be a location that Ben can take the spoil from the site and it's capable of taking all of the spoil, so that one site can take all the spoil. So yes, we believe that, that will be available very early next year. And just as a follow-up to that, is construction progress in the tunnels, is that able to be managed, I suppose, concurrently to Removing affected soil or is it predicated on having the site made good, the soil taken away and then commencing construction? No, no, no. The way we're just talking about so to be clear, there's PFAS soil that has been taken away from the site already. So the tunnel portals, both the entry and exit tunnel portals have basically been near, well, I think certainly the entry ones are completed. The exit ones are near completion as well. And so there has been PFAS removed, taken to licensed landfills and dealt with, it's just a quantum of the spoil that comes out of the TBMs and the TBM spoil, when they start turning, deliveries is into a spoil shed on-site and that can store about a day's worth of 24 hours, maybe 36, maybe 48 hours of the TBMs turning, depends on the speed, can store that much spoil and that spoil needs to be taken to a spoil disposal site. So really, what we're talking about is once the TBM start, you need to be able to have a site that continuously can take the spoil in order to keep the TBM production moving forward. So that's what we're talking about, just the quantum and being able to ensure that progress in supply of construction. I mean, on the other side, there has been a tremendous amount of work being done both on the East and the West. And again, the precast yard, I think we're well over 60% with all the tunnel linings and all the other precast structures. So massive amount of work being done on the supply chain to provide the TBMs. And now that we have a spoil site, hopefully, we'll move to production in the next few months. Great. Thank you. So just a final question. You mentioned in the presentation that should the dispute not be able to be resolved commercially, it potentially will head to the courts. I'm just wondering, is Project cancellation, one of the possible scenarios, if you do go down that path, is it to what extent is it a concern to you that the project may be Not able to be completed or resolved in the courts and therefore be canceled. We certainly think the project can be completed. There is a spoil site now available. The TBMs are sitting there, so we certainly believe the project can be completed. And again, our focus is on getting the project waited. Unfortunately, there are 2 other parties involved in this that we don't have control over and we're all collectively working together at this moment to to try and find a commercial resolution. But as we said, if we can't, then it falls back to the contracts and everyone has obligations under the contract. And everyone's obligation to the contract is to deliver the project as well. So, we think it's pretty clear. But again, we're working hard to do what we can to advance the project and commercially resolve it. But we just have to be transparent that it may not be resolved commercially and then therefore, there's recourse to the parties under the contracts. Thanks. Thank you. Your next question comes from Cameron MacDonald from E&P. Please go ahead. Good morning. Thanks, Scott. While we're on West Gate Tunnel, can I'll ask a couple of questions on that. So do you let's just assume On the numbers you've given $3,300,000,000 each party has to cop up $1,100,000,000 Are you anticipating getting anything In return from that additional cost or you or is it just an increased cost of delivery of the existing project? Kim, thanks. So I mean, again, we're trying to resolve it commercially. I don't want to go in through negotiations. But again, I think we're looking to make a meaningful contribution and not get anything in return other than the delivery of the project. But I'm not going to go into negotiations or allocation, but looking for making a meaningful contribution but not getting anything in return for that other than the project delivered. Does that mean that once the project is opened and operational, we could be staring At a write down of the investment? No, we don't believe so. Okay. Thank you. The other question actually I had was actually for Michelle. So if I look at page 5759 The proportional interest that you paid on Page 57 It was 808,000,000 versus sorry, 59,000,000 versus the proportional interest of the assets We've actually incurred at 1 just under $1,150,000,000 like and I appreciate that I'm sure I have to match up 100%, but that's a pretty big spread. So what's the difference between the proportional interest incurred and the interest Tate, please. Once the expenses that come through the P and L and so that's page 57. 59 Shows you effectively how you get from that. There are a whole lot of non cash items that then take you through to the interest you pay, the interest we paid. So you can see those non cash items set out on Page 59. And is that a do you Think that that's a usual differential that we should be thinking through? There It depends. So some of the so if I go through the columns, the discounts and unwinds, etcetera, will depend on things like FX on rates moving, because that just changes the value of some of our some of the assets and liabilities we've got on the balance sheet, totally non cash. It's Just mark to market effectively. The interest capitalization can change over time, although That's only $47,000,000 of the number. And then the others are small. So the biggest one that I think you might see move around is that discount unwinds And revaluations. And so this kind of maintenance provisions and then the foreign currency. Yes. The derivatives. Yes. So it's the accounting standard that makes it harder than ever to Well, I focus in on the net interest paid number. I think that's the more meaningful number because that's the one that impacts Our cash, so that's the one, if I was you, I would focus in on. Okay. Thank you. And then last question Thank you, Michelle. When you look at and obviously the Chesapeake transaction was an example of this. There's an extraordinary demand for Yes, for traditional infrastructure assets at the moment, as you've seen for a number of bids that have been going around and you've done this before where you partnered with people for new Rather parties for new assets, Chesapeake, you've sort of demonstrated the value of the underlying asset. Are there other assets, particularly in Australia, which you think You could do a similar transaction with, which would then minimize the dilution of an equity raising to the open market and potentially Demonstrate the underlying value of some of these assets. Is that something you've thought about? I may take that one. Michelle can add her comments. So again, Cam, I guess every asset is up for sale. If somebody wants to to pay more for what we think it's worth if someone were to do that. But we think it's very important that we've got particular assets. Some of them can be from time to time complementary to each other in certain markets, but we consider all those options. Transurban Chesapeake wasn't done on the basis that we wanted to necessarily realize the value in the asset, that was the secondary benefit. It was we wanted the right partners in that business to grow faster. We're now set as we need to do and we'll continue to use our partners in Queensland and WestConnex and Northwest Rhodes Group, so bulk of our assets now comes out of our joint ventures with our partners. So that is the case. But yes, we do look at it, but we do feel we're set at the moment and there's no need to go down that path. Thank you. Thanks, Kim. Thank you. Your next question comes from Suraj Navani from Citigroup. Please go ahead. Hi, Mohitian team. Just a couple of quick ones. So firstly, on capital releases, you add 2.78 $1,000,000 in this period, which is prior to which is contrary to prior expectations of it being 0 this year. I guess, firstly, what changed there? And secondly, can you give a sense of any timing around the future capital releases, Especially over the next couple of years. Yes. I'll make some maybe some high level comments and let Michel go through the details. So we still expect to have over $2,000,000,000 including the $278,000,000 We were able to bring that forward just a few months because of the good performance on the M5 East and the M8. So that came out of WestConnex just toward the into the year, really good job by the Treasury team. So well done, team. They're here watching, listening, making sure I don't make a mistake. But I'll let Michelle give a little bit more detail. Yes. So to Scott's point, we brought it forward because of the asset and also The financial markets were quite conducive to being able to do that. We haven't given specific guidance on exactly when the other capital releases will occur, out to 2025 and probably best to continue that. We just continue to monitor the market. But that will happen. We still expect them to happen, as we set out over the course of the next few years till 2025. And some of them may be a bit, again, sensitive to COVID restrictions and timing there, but we still expect it to be meaningful over the next few years. Thanks, Alan. In terms of Distribution, just looking ahead, obviously some roads had to basically withdraw distribution that they were paying because of COVID impact, would you expect something similar in FY 'twenty two to happen? So it will depend. I mean, some of them So the 100% owned assets, it's all on just done on free cash anyway. So for the non 100% owned assets, there are some timing differences. So some of them actually you'll get a little bit of benefit from the fact that they ended FY 2021 In good spot and we were sort of we're a bit lower, in 'twenty one because of how they ended FY 'twenty. So there are some ups and downs, but we'll have to see how the COVID restrictions pan out. And then Transurban Chesapeake used to be 100% owned And now is less than 100% owned. So we take the distributions. They haven't been paying Distributions, although the assets are starting to perform better. So I think the summary is we just have to wait. We'll wait and see, but there's still pretty strong performance from the end of last year and there's more headroom this year than there was last year in the assets because of the new assets. So we're still hopeful, particularly the Australian assets will be paying their distributions. The North American ones it just depends on some timing issues, but they're not material contribution at this point to the overall distribution. Okay. That makes sense. And just one Final one for you, Scott. Sorry to hop on about this, but maybe on the West Gate Tunnel project, Obviously, it's up for negotiation. Can you just give a sense of timing around any resolution? Or at least what sort of timing are you mentally thinking about? Mentally, like the timing tomorrow would be great. I mean, we're trying we're going through a mediation process. We're trying to do it as quickly as possible. Like I said, the spoil site would be available early next year. Ideally, we'd like to have it commercially resolved in the next few months in preparation for the spoil a disposal site. So I mean all parties are working together to try and get it resolved. But we just have to be transparent that it may not be the case. Okay. Thank you. Thank you. Your next question comes from Anthony Mala from Jefferies. Please go ahead. Good morning, all. Just two quick questions, if I could. Melbourne traffic, obviously, is down. It's it's fairly resiliently down, I guess, as a consequence of just how long those Mulburians have been in lockdown. But are you still confident Outside of, I guess, traffic returning into Tullamarine Airport that Melbourne will return to pre COVID levels. Is that still the base case? And we've seen that obviously in Sydney and Brisbane, but obviously, it looks like Melbourne is going to take a lot longer to get back to that point if it does. Thanks, Anthony. Good morning to you. Look, I think it's a couple of issues. 1, trucks have still been very resilient in Victoria, which is great, or in Melbourne. I think the biggest thing, as I said earlier, with the Melbourne restrictions usually coming off, that still mask indoor mask restrictions have applied for a lot longer than other jurisdictions, and that has restricted particularly people coming back to the CBD. We were there for a period, I think 1 week. Henry is across from me. He's going to shake his head, hopefully. We were there for a period of week without masks and we saw the traffic getting to just sort of 7%, 8% below sort of pre COVID numbers. So, but, yes, so I think it's just more that the way Victoria comes out of restrictions, but hopefully when we get to that place, either vaccination or the number of cases are not in the community that we do think at that point, it will come back to pre COVID levels. And secondly, the U. S, you talked about this $300,000,000,000 of transport related Structured projects, is it something similar to what Australia has as far as those priority projects that you're focused on? And Obviously, Gotoll being extended into different states. Do we take anything from where that's gone into where your likely level of interest is? Look, I think we're not really looking outside of our I mean, there's other markets we keep an eye on, but we're not really looking outside of our core there's so much happening in our core markets. I think more importantly, as part of that transportation bill, there's more TIFIA funding, more support, which we will use on the Maryland Express Lanes hopefully potentially and public activity bonds and other things. So there's more support for funding arrangements for the projects that we're currently looking at, so it's more about that support, but it's just overall transportation coming a bigger focus in infrastructure. And I think over the medium term with our partners that we can look at more opportunities, but we're not typically looking after our core markets, given how much we have potential there, Anthony. But it's always good to see it, hopefully, some bipartisan support, which has been missing for a long time. Very good. Thank you. Thank you. Your next question comes from Richard Jones from JPMorgan. Please go ahead. Thanks. Scott, two quick questions, if I may. Just how long will tunneling at Westgate Tunnel take? It's a good question. I mean, look, yes, if you look at just high level, maybe in the size and length of the tunnels, just a rough estimate around 18 months. And then you've got another, I don't know, 6 to 9 months potentially of mechanical electrical fit out. So that's the kind of timing I would put on it, but I am an electrical engineer, so maybe I'm not the best person, but that's probably a decent rough estimate. Excellent. Okay. And just lastly, just in terms of your bid for WestConnex, is there any Sort of changing your ownership in Sydney Transport Partners. Are you interested or considering diluting that stake at 50% or will you keep that? Look, the partners in STP, it's working really well. So at this point, I think it's fair to assume that we'll continue with our same ownership percentage going forward. But again, if it makes sense from a strategy or capital perspective, we could look at options. But at this point I think it's safe to assume we'll continue with our same ownership percentage. Excellent. Thanks. Thank you. Your next question comes from Anderson Chow from Jarden Group. Please go ahead. Hi. Good morning, guys. Congratulations on a solid set of results. I had a lot of good questions already. I just had one question on the operating cost outlook for 2022 as you Yes, on Page 37 of the PBT. I just want to get a bit of sense of what sort of credit cost increase are we likely to see in As a percentage on 2021, especially what you called out that insurance premium has increased by about 50%. And also related to this, you also mentioned there are some new capabilities that you are looking at. It doesn't sound like Toro acquisition related. So I'm just wondering what these new capabilities could be and how much that could cost? Thank you. So it's a bit early to be specific on a in total magnitude. But if I sort of break it into some buckets, There are some knowns like the change in accounting policy and insurance premium, etcetera. And then there are some others that may go up. So depending on how COVID plays out and how restrictions play out, you could get a reversal of some of the savings we had. And if there's additional growth, you could get some more sort of toll related Cost increases. You still got normal inflation that you would expect. And then in terms of New FTE, we continue to invest in things like data and analytics, etcetera, in our project delivery capabilities. But again, as I mentioned in the presentation, how and when we make that investment, I think we'll wait and see depending on the revenue environment. Yes, nothing is but all the investment is made in the toll rider in the transport sector space. So it's enhancing our customer experience, it's cybersecurity, it's the stuff that we're doing in Melbourne on seeing if we can enhance the experience on the Burnley Tunnel. So all that is directed toward our toll road transport or future experience. So no, it's not looking outside of our sector. Okay. Thanks. Thank you. Thank you. Your next question comes from Justin Barrett from CLSA. Please go ahead. Good morning, team. Thanks very much for your time. I just wanted to check a couple of things on the edges. You've previously stated that you expect the Chesapeake distributions to come out of lockup in FY 2022. I just wanted to confirm, is that still your expectation? And is it still largely based around the actual performance of the assets there? Yes. So I think as we sit here today, you'd probably there might be a bit of a lag in the first half, but you probably expect in the second they'll come out of they'll start paying distributions. It's pretty small in the whole scheme of things now, given the transaction. Yes, sure. No problem. And look, one final one just quickly on Westgate. There's no requirement to the commercial matters To be actually resolved before the tunneling can commence, is there? No. We expect that when this oil site becomes available. We expect that the D and C contractors should turn on the TBMs and start tunneling. But so the commercial settlement and timing are not necessarily related, but we would like to get it all sorted as soon as possible so we can progress the project in the entirety and get moving as quickly as possible. Fantastic. Thanks for your time. Thank you. That does conclude the time we have for questions for today. I'll now hand back to Scott for closing remarks. Great. Thank you, everyone, and some very good questions. And I appreciate there's a whole lot of material in there. And you may have some follow-up questions. So Investor Relations team are Michelle and myself. Again, appreciate everyone's interest. We know it's the starting of reporting season and we're all in a COVID environments and good luck with the reporting season, and I'll see many of you over the video chats and so hopefully this will be the last time we do it over video and the half year we'll be in person. But thanks, everyone, and we'll speak to you soon.