1 CMAA – OWNERS FORUM THE TRANSURBAN PERSPECTIVE Tony Adams May 3, 2010

2 TRANSURBAN  Toll road manager, investor and long- term partner in US and Australia  Financially secure, $7 Billion market capitalization and A- credit rating  40% owned by North American investors  More than 5 million customers worldwide  Dow Jones Sustainability Index of high-performing companies  Pioneered fully electronic tolling, customer service model 2

3 TRANSURBAN ASSETS LOCATIONS Melbourne, Australia Sydney, Australia Richmond, Virginia, USA Washington DC, USA

4 A MOTORWAY OPERATOR & ASSET OWNER  Long term focus – whole of life approach to the investment  Partnership with Government and community  Network perspective  Innovation – continuous asset improvement Vision: “Transurban is a values-based toll road owner and operator, delivering value to security holders and communities.” 4

5 PPP’s IN ACTION: CAPITAL BELTWAY HOT LANES

6 6 CAPITAL BELTWAY HOT LANES  Early 90’s plans cost prohibitive, highly disruptive to community and environment  Private sector proposed HOT Lanes as alternative  Completed under Virginia’s PPP legislation  14 miles, two new HOT lanes in each direction  First time introduction of HOV and transit network to Beltway and Tysons Corner  Replacement of more than $260 million of aging infrastructure  New choice to pay a toll for faster, more reliable travel time

7 CAPITAL BELTWAY PPP AS AN EXAMPLE  Nearly $2 billion transportation improvement project  80-year partnership agreement – Operator led example  Approximately $1.5 billion in private equity and debt  Key risks transferred to private sector, away from taxpayers  State grant and use of innovative federal loan programs  Stringent Performance regime  Partnership agreement includes key provisions to protect public interest  Revenue sharing  No non-compete  Transparency  Performance requirements

8 PPPs - PART OF THE SOLUTION  Challenges require broad spectrum of tools and strategies  PPPs part of the solution – not the “silver bullet”  Private partnerships can support governments in advancing major transportation improvements  Private capital  Innovative financing  Risk transfer  Financial incentives to continually improve efficiency, traveler experience and safety  Meet transportation needs more quickly 8

9 PPPs UNDER SCRUTINY  Market failures have placed increased scrutiny on the PPP model in Australia  Focus on winning the project rather than delivering ‘transportation outcomes’  Media and PPP opponents have focused on recent high profile project failures  Successful projects, such as Westlink M7, have not received the same level of attention  Scrutiny has rightly been placed on traffic forecasting and financial engineering for failed projects  The effects of the Global Financial Crises has put pressure on the PPP model for the delivery of toll roads  PPP market in the US is maturing and will evolve  Operator led examples are a more positive approach

10 BENEFITS OF THE OPERATOR-LED MODEL  The Operator-led model has a number of advantages over traditional procurement : Traditional Contractor ModelOperator-Led Model Efficient mechanism for “hard” asset delivery Partnership approach for the term of the concession Little focus on customer service provision Concessionaire interests aligned with Government, community & customers Focus on D&C and financing provision, not long term operation Focus on service delivery over the life of the asset Short-term view has seen bids won on unrealistic traffic forecasts Less incentive to inflate traffic forecasts Limited competitors increase bid pricing Long term equity protected through robust project metrics Lack of protection for long term equity holders 10

11 WHAT DELIVERS THE MOST VALUE?  A motorway operator who is also the asset owner:  Long term focus – whole of life approach to the investment  Partnership with Government and community  Network perspective  Innovation – continuous asset improvement

12 SUSTAINABILITY IN ACTION: CAPITAL BELTWAY HOT LANES

13 CURRENT CONGESTION  The Beltway currently experiences 6 to 8 hours of congestion per day*  The fifth worst congested region in the United States*  Commuters lose an average of 69 hours a year sitting in traffic*  Congestion costs the local economy nearly US$5.5 billion a year*  Minimal to no ability to build out corridor due to physical constraints and social impacts *Data from the Texas Transportation Institute

14 “While the HOT lanes project won’t single-handedly solve Northern Virginia’s traffic nightmare, it is a key piece in a complicated puzzle.” 14

15 SUSTAINABILITY: PROJECT SCOPE  Private proposal for HOT Lanes provided funding source, reduced impact from 350 homes and businesses to 8  Significant expansion of carpool and transit service  First-time bicycle and pedestrian access  Improved safety with bridge replacement  Enhanced evacuation and incident response  Dynamic pricing to manage traffic levels and reduce stop-and-go traffic, which can lead to reduced GHG emissions “HOT Lanes can create financial incentives to make public transport and carpooling more attractive…” - U.S. Dept. of Transportation

16 HOW HOT LANES WILL KEEP TRAFFIC MOVING

17 COMMITMENT TO CUSTOMERS AND COMMUNITY  Outreach surrounding construction  Community grant program  Signature partnership programs  Bike-to-Work  “Orange Cones. No Phones” Driver Safety Campaign  Robust consumer research to inform operations planning  New approach to on-road information and customer management

18 CONCLUSIONS  PPP’s are part of the solution – not the answer to all delivery methods and they are not a means of delivering non feasible projects  Operator led model delivers the most benefits  Demonstrated sustainability benefits  HOT Lanes becoming important tool in addressing growing congestion crisis in U.S. urban areas  Pricing is effective in managing traffic levels and providing congestion-free pathway for buses, carpools and toll-payers  Technology can provide improved safety, driver information and travel experience 18

19 DISCLAIMER This publication is prepared by the Transurban Group comprising Transurban Holdings Limited (ACN ), Transurban Holding Trust (ARSN ) and Transurban International Limited (ARBN ). The responsible entity of Transurban Holding Trust is Transurban Infrastructure Management Limited (ACN ) (AFSL ). No representation or warranty is made as to the accuracy, completeness or correctness of the information contained. To the maximum extent permitted by law, the Transurban Group, directors, employees or agents or any other person, do not accept liability for loss arising from or in connection with this publication including without limitation, any liability arising from fault or negligence. The information does not take into account individual investment and financial circumstances and is not intended in any way to influence a person dealing with a financial product, nor provide financial advice. It does not constitute an offer to subscribe for securities in the Transurban Group. Any person intending to deal in Transurban Group securities is recommended to obtain professional advice. United States These materials do not constitute an offer of securities for sale in the United States, and the securities referred to in these materials have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration. © Copyright Transurban Limited ABN All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the written permission of the Transurban Group.

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