Transurban Group (TCL) Status update summary

Toll Reform Overview

• NSW toll reform delivers cost-of-living relief, system improvements, and targeted price reductions, including a permanent weekly cap ($60, $50 until July 2027), two-way tolling on the Eastern Distributor at 53% of the current rate, and new vehicle classes and standardized truck multipliers.

• Toll reductions apply to the M7, M2, Lane Cove Tunnel, and Cross City Tunnel, with the M7 toll cap reduced and a new motorcycle class at half the car toll.

• The M7-M2 Widening Project will add 17 km of capacity, funded by the NSW Government, with construction expected 2028-2031.

• Toll notice digitisation, removal of administration fees, and enhanced customer support, including an Independent Tollway Ombudsman, improve customer experience.

• Implementation is subject to definitive agreements and regulatory approvals, with final execution expected by the second half of 2026.

Financial and Operational Impacts

• Concessionaires remain value neutral through equalization payments, early monetisation of concession and promissory notes, and government funding for the M2/M7 widening.

• Equalization payments offset financial impacts of price and traffic changes, paid over five years from 2028 to 2032, and are treated as income for distribution purposes.

• No negative impact on near-term distributions is expected, subject to traffic and macroeconomic factors.

• Early repayment of $0.1b in Concession Notes (Eastern Distributor) and $0.5b in Promissory Notes (Hills M2) is expected in 2028.

• Credit rating agencies have responded positively, and financier consents are expected in coming months.

Customer and Traffic Benefits

• Over $300 million has been returned to drivers since January 2024 via the weekly toll cap, with average Sydney motorists spending AUD 12.45 per week and significant savings for frequent drivers.

• By 2029, some commuters are expected to save around 9% per trip, with notable benefits for Western Sydney drivers.

• No observed induced demand from the toll cap operation over two and a half years.

• Truck toll multipliers are standardized, with more trucks benefiting from the cap, and the multiplier increase will help fund freight industry benefits.

• Enhanced customer experience includes digital notifications, removal of late fees, and improved dispute resolution.