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Asciano Group

FY12 Final Results Presentation

Twelve months ended 30 June 2012

1

• This presentation includes “forward-looking statements.” These can be identified by words such as “may”, “should”, “anticipate”, “believe”,

“intend”, “estimate” and “expect”. Statements which are not based on historic or current facts may be forward-looking statements.

• Forward-looking statements are based on assumptions regarding Asciano’s financial position, business strategies, plans and objectives of

management for future operations and development and the environment in which Asciano will operate.

• Forward-looking statements are based on current views, expectations and beliefs as at the date they are expressed and which are subject to

various risks and uncertainties. Actual results, performance or achievements of Asciano could be materially different from those expressed

in, or implied by, these forward-looking statements. The forward-looking statements contained in this presentation are not guarantees or

assurances of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the

control of Asciano, which may cause the actual results, performance or achievements of Asciano to differ materially from those expressed or

implied by the forward-looking statements. For example, the factors that are likely to affect the results of Asciano include general economic

Disclaimer

2

implied by the forward-looking statements. For example, the factors that are likely to affect the results of Asciano include general economic

conditions in Australia; exchange rates; competition in the markets in which Asciano does and will operate; weather and climate conditions;

and the inherent regulatory risks in the businesses of Asciano. The forward-looking statements contained in this presentation should not be

taken as implying that the assumptions on which the projections have been prepared are correct or exhaustive.

• Asciano disclaims any responsibility for the accuracy or completeness of any forward-looking statement. Asciano disclaims any responsibility

to update or revise any forward-looking statement to reflect any change in Asciano’s financial condition, status or affairs or any change in the

events, conditions or circumstances on which a statement is based, except as required by law.

• The projections or forecasts included in this presentation have not been audited, examined or otherwise reviewed by the independent

auditors of Asciano. Unless otherwise stated, all amounts are based on A-IFRS and are in Australian Dollars. Certain figures may be subject to

rounding differences. Any market share information in this presentation is based on management estimates based on internally available

information unless otherwise indicated.

• You must not place undue reliance on these forward-looking statements.

• This presentation is not an offer or invitation for subscription or purchase of, or a recommendation of securities. 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.

• This presentation is unaudited. Notwithstanding this, the presentation includes certain financial data which is extracted or derived from the

Full Year Financial Report for the year ended 30 June 2012 which has been audited by the Group’s Independent Auditor.

Highlights

Financial Analysis

Outlook

1

2

3

Agenda

3

Questions & Answers4

John MullenManaging Director and CEO

4

FY12 Highlights

Strong financial

performance in tough

environment

� Revenue up 11.7%. EBIT up 14.4%. NPAT up 42.8%

� Strong EPS growth of 42%1111

� 25% increase in full year dividend

� ROCE improved 84bps to 10.5%, on track to reach WACC by FY15

Strengthened funding

profile

� Balance sheet restructure complete, new banking facilities deliver greater flexibility, lower

funding costs and longer duration tenure

� Funding capacity available for growth opportunities across the business

Strong underlying volume growth and refocused business drives growth in earnings

New customer contracts

secured and base

contracts rolled

underpinning future

earnings base

� Extended and expanded relationships with three key Container Terminals customers

� New contracts secured in PN Coal lift annualised contracted coal tonnage in FY14 to 176mtpa

� Key Intermodal customers re-signed early on long term contracts with volume increases

� New bulk commodity rail opportunities secured and services increased to take advantage of

strong agricultural cycle

� New Bulk Ports & Stevedoring contracts secured including services to the Gorgon project

� Autocare new customer contracts signed. Largest customer renewed for further 3 years

5

Strategies in place to

deliver further

performance improvement

� 14% improvement in LTIFR, still significant room for improvement

� Strong turnaround of Bulk Ports & Stevedoring businesses continuing, benefits starting to flow

through to earnings, well positioned for future growth

� Redevelopment and investment underway to further improve Container Terminal returns

� Continued focus on committed improved growth, performance and returns

� 5 year strategic plan still firmly on track

1. The prior period comparative has been adjusted to assume the 1 for 3 share consolidation that was effective December 2011 was also effective in the prior period

Highlights – PN Rail

Financial

performance

� Revenue up 14.6%

� EBIT up 13.3%

� ROCE improved 140bps to 15.5%

Strong underlying volume growth achieved as well as continued efficiency improvements...

� Two additional, take or pay grain trains contracted with Cargill commenced January 2012

� New contract with Emerald Group for two take or pay grain trains commenced July 2012

� New Bulk shuttle service contracts for Linfox and Toll into Port BotanyCustomers and business

growth

6


deliver further


� Ongoing focus on BIP initiatives delivered benefits of $16m

� Further efficiency improvements in fuel usage, slot and path utilisation, labour efficiency

� Exploring fleet rationalisation and locomotive cascading

� New Bulk shuttle service contracts for Linfox and Toll into Port Botany

� Construction of new freight terminal in Perth; K&S and Toll to become anchor tenants

� Agreement reached for the movement of 650k tonnes pa of Hot Rolled Coil steel for BlueScope commencing in FY13 Q2

� Steel Link contract renewed with BlueScope and Arrium for 7 years, starting Jan 2014

Highlights – PN Coal

Financial

performance


� EBIT up 26.6%


Strong underlying volume growth and renewed performance based contracts drive growth

� New 10 year, 8.5mtpa contract signed with Rio Tinto Coal Australia in Queensland to commence in November 2013

� New 15 year contract signed with Bandanna Energy for the movement of up to 4mtpa in Queensland from July 2014

Customers and business

growth

7


deliver further


� Work on Greta and Nebo continued, scope of work at Nebo expanded

� Invested $610m in rolling stock and infrastructure to meet growing contract haulage

requirements

� Detailed modelling of Hunter Valley congestion issues and options

� New 15 year contract signed with Bandanna Energy for the movement of up to 4mtpa in Queensland from July 2014

� New contracts with Anglo American and Middlemount commenced in January 2012

� Signed a new 10 year contract with Bloomfield in the Hunter Valley effective 1 July 2012

� Focus on execution of new contracts that commenced 1 July 2012 with Anglo American and commences 1 January 2013 with BHP Mitsui Coal (BMC)

Highlights – Terminals & Logistics

Financial

performance


� EBIT up 8.5%

� ROCE improved 69bps to 8.3% (30.8% excl. Goodwill)


growth

New customer contracts deliver strong growth in volumes

� 5 year agreement with Maersk signed in July 2011 for pro forma volume of 650,000

containers pa

� Rolled over agreement with Mediterranean Shipping Company (MSC) for a further 3 years

with a 2 year option from January 2012 for pro forma volume of 550,000 containers pa.growth

8


deliver further


� “Knuckle” lease at Port Botany completed, facilitating an extension of the lease across the

entire terminal to 30 June 2043

� $348m Port Botany upgrade and automation investment announced, increasing capacity

from 1.15m TEU to 1.6m TEU and delivering the flexibility to double capacity over time

� Completed enterprise agreement runs to 30 June 2015

� BIP initiatives delivered $7.3m in benefits despite delays in finalising the EA

with a 2 year option from January 2012 for pro forma volume of 550,000 containers pa.

� Expanded agreement with China Express Services (CAX) to include Brisbane and Sydney

Highlights - Bulk & Automotive Port Services

Financial

performance

� Revenue up 4.5% (10% on underlying basis)

� EBIT up 45.3%


Strong growth and EBIT turnaround of bulk port, stevedoring and related logistics businesses...

� Renewal of long term contracts including NYK, Arrium, Westlink, Swire and Shell

� Secured contract with Agility Services for the provision of marine transport services to the

supply base for the Gorgon project in Western Australia


growth

9


deliver further


� Negotiations on EA covering bulk ports and stevedoring activities continuing

� Evaluation of acquisition opportunities

� BIP initiatives delivered $7m in benefits

supply base for the Gorgon project in Western Australia

� Extension of Western Port management contract for a further 5 years to 2017

� Secured other contracts emerging for resource projects including those at Gladstone

� Contract with Mitsubishi recently extended for three years to 2015.

� Secured new contracts with Porsche and Proton

ROCE Improvements

31

18.5 18.5

%

Group ROCE improved 84bps despite impacts of considerable WIP and impact of industrial

relations issues

PN Coal

14.112.9

10.4

13.2

8.3

Terminals & Logistics Bulk Ports &

Automotive Services

15.5

9.6

7.6

PN Rail

9.6

Group

10.511.6

FY12 ROCE excluding GoodwillFY12 ROCE Pre WIPROCE FY12ROCE FY11

10

FINANCIAL ANALYSISAngus McKay, CFO

11

14%

26%

23%

37%

Bulk & Auto Port Services

Terminals & Logistics

PN Rail

PN Coal 9%

34%

24%

33%

Bulk & Auto Port Services


PN Rail

PN Coal

FY12 Revenue Split by Division FY12 EBITDA Split by Division

Growth in Earnings

Historical Revenue by Division ($m)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

FY12

3,530

FY11

3,153

FY10

2,898

FY09

2,853

FY08

2,933Bulk & Auto Port Services


PN Rail

PN Coal

Historical EBITDA by Division ($m)

0

100

200

300

400

500

600

700

800

900

1,000

FY12

951

FY11

833

FY10

755

FY09

674

FY08

668Bulk & Auto Port Services


PN Coal

PN Rail

12

Earnings Summary

� Total revenue increased 11.7%. Growth in PN Coal,

PN Rail, Terminals & Logistics and Autocare was

primarily driven by new contracts and underlying

growth in volumes

� EBITDA growth across all divisions was driven by the

growth in volumes and BIP initiatives. Growth was

negatively impacted by the $15.6m turnaround on

the pcp in the valuation of accruals relating to

employee benefits. BAPS EBITDA growth reflects the

benefits of the restructure of the business over the

Earnings driven by strong underlying growth in volumes

Twelve Months Ended 30 June $’mRestated

FY111111 FY12 %Change

Revenue and other income 3,093.3 3,456.7 11.7

-PN Coal 826.0 933.3 13.0

-PN Coal (net of access) 578.0 690.4 19.4

-PN Rail 1,154.7 1,323.2 14.6

-Terminals & Logistics 700.2 781.2 11.6

-Bulk & Automotive Port Services 471.9 492.9 4.5

-Corporate (59.6) (73.9) 24.0

EBITDA 816.8 907.7 11.1

EBIT 539.1 616.7 14.4 benefits of the restructure of the business over the

period

� Net financing costs benefitted from lower overall

funding costs following the restructure of the Group’s

banking facilities and the full year impact of the

funding raised in FY11 in the international 144a/Reg S

debt capital markets

� Dividend per share increased 25% and reflects a

payout ratio at the top end of the stated range of 20-

30%

1. Restatement relates to the voluntary change in accounting policy for the treatment for taxation for customer contracts as detailed in Note 1 of the statutory accounts

2. The prior period comparative has been adjusted to assume the 1 for 3 share consolidation that was effective December 2011 was also effective in the prior period

3. Calculated on dividends declared divided by NPAT before material items after tax.

4. To provide comparability of EPS between periods EPS of the Asciano Group (assuming the Trust was fully consolidated for the whole of the 2011 financial year )have

been provided

EBIT 539.1 616.7 14.4

Net interest and associated costs (249.5) (220.4) (11.7)

Profit before tax and material items 289.6 396.3 36.8

Material items before tax (69.2) (13.2) (80.9)

Tax expense (50.3) (140.4) 179.1

Net profit after tax 170.0 242.7 42.8

Earnings per share2,417.3¢ 24.7¢ 42.8

Dividends per share26.0¢ 7.5¢ 25

Payout ratio 3 30.0% 28.6% -

Cash conversion 89.8% 97.8% 798 bps

ROCE 9.6% 10.5% 84 bps

ROCE excl WIP 10.2% 11.6% 143 bps

ROCE excl GW 17.7% 18.5% 78 bps

ROCE excl WIP & GW 19.8% 22.4% 268 bps

13

EBIT growth of 14% driven by increased volumes and BIP initiatives

Group - EBIT Bridge

5.83.6

4.415.6

8.5

2.8

16.0

36.8

616.7

139.9

214.8

$’m

BIP: Business improvement program

1. Cost of Industrial disputes includes $21m for Terminals & Logistics incurred this year compared to $8m in the pcp plus $3m for the cost to PN Coal of the industrial

dispute at Port Kembla Coal Terminal

Weather/ Congestion

Actuarial Valuation

Asset SalesCost of industrial disputes¹

BIPCosts/OtherPrice/Mix/ Volume

Legal Settlements

FY11 EBIT

539.1

FY12 EBITOtherIncidents

14

PN Coal - EBIT Bridge

EBIT growth of 27% driven by new contract growth

4.63.052.8

107.1

223.3

$’m

9.0

3.0

10.5

FY12 EBITPort Kembla Industrial disputes

Congestion WeatherFY11 Reported EBIT

165.9

FY11 EBIT Restated

Price/Mix/Volume

176.4

CostsCorporate Charges Adj

15

*Change in corporate cost allocation reflects the decision to more accurately reflect usage of services

EBIT growth of 13% driven by volume growth and ongoing business improvement initiatives

PN Rail - EBIT Bridge

0.7

3.6

15.9

10.1

23.6212.6

$’m


16

14.5

Asset SalesIncidentsBIPCostsPrice/Mix/VolumeFY11 EBIT Restated

187.6

Corporate Charges Adj

FY11 Reported EBIT

173.1

FY12 EBIT


EBIT growth of 8.5% driven by container volume growth and asset sales over the period

Terminals & Logistics – EBIT Bridge

$’m

14.2

2.87.3

4.413.0

4.110.652.9

74.0

7.0150.1

170.4

157.1



1. The cost of industrial disputes was $8m in FY11, $15m in FY12 H1 and $6m in FY12 H2

Labour costsCostsPrice/ Mix /Volume

FY11 EBIT Restated

Asset Sales*Corporate Charges Adj

FY11 Reported

EBIT

Legal settlements

FY12 EBITBIPDiscontinued businesses and write

offs

Industrial disputes¹

Rent increases

17

EBIT growth of 45% driven by a restructuring of the business over the last eighteen months

Bulk & Automotive Port Services - EBIT Bridge

$’m

8.4

4.00.9

3.57.0

3.5

10.1

5.0

40.5

66.1

45.5

FY12 EBITDecrease in amortisation

Bluescope Restructure

Lost contract Kia

Japan/ Thailand

BIPCostsPrice/ Mix /Volume

Restated FY11 EBIT

Corporate Changes Adj*

FY11 EBIT

18



Cash Flow

A 22% increase in operating cash flow for the period driven by strong growth in earnings

Twelve months ended 30 June ($’m) 2011 2012

Operating cash flow pre tax and interest 733.3 887.7

Cash tax paid (4.2) (46.4)

Cash net interest (231.7) (233.5)

Operating cash flow after tax and interest 497.5 607.8

Sustaining capex¹ (118.8) (163.3)

Growth capex¹ (297.1) (655.9)

� Operating cash flow post tax and interest increased

22% reflecting strong growth in earnings, 800bps

improvement in cash conversion and timing

differences

� Proceeds from the sale of PPE reflects the sale of

surplus properties across the Group

� Cash tax paid is low relative to tax expense but is

expected to be more reflective of tax expense goingFree cash flow 81.6 (211.4)

Proceeds from sale of PPE 39.1 16.9

Net financing 84.8 0.0

Dividends (29.3) (63.5)

Other 6.9 9.7

Change in cash 183.2 (249.1)

Opening cash 215.3 398.5

Closing cash 398.5 149.4

Cash conversion (%) 89.8 97.8

1. Includes capital expenditure recorded as inventory on the balance sheet

expected to be more reflective of tax expense going

forward following the full utilisation of tax losses in

FY12

� The improvement in cash conversion reflects a

reduction in working capital requirements following

improved cash collection over the pcp

� The increase in “Other” relates primarily to the sale

of the Autostrad™ technology intellectual property to

Cargotec Corporation

19

Capital Expenditure

New contracts underpin increased investment in the business, disciplined approach to allocation

� Capital expenditure projects in FY12 included rolling

stock for new contracts in PN Coal and PN Rail, the

provisioning and maintenance facilities in PN Coal and

new equipment in the Container Terminals and Bulk

Ports businesses

� The top end of the range for capital expenditure in

FY13 has been lifted primarily due to expenditure

budgeted in FY12 flowing into FY13 and additional

investment in the Terminals & Logistics division

595

858

511496

700-800m

800-930m

$’m

* Includes capital expenditure recorded as inventory on the balance sheet

investment in the Terminals & Logistics division

associated with the Port Botany redevelopment

project and equipment upgrade

� The increase in forecast capital expenditure in FY14

primarily relates to expenditure in Terminals &

Logistics associated with the Port Botany

redevelopment, investment in rolling stock in PN Rail

and PN Coal and PN Rail engine replacements

� Based on current investment plans capital

expenditure is forecast to decline post FY14

20

107 115 119163

245

358

235

FY14FFY13FFY12

100

FY11

62

FY10

38

FY09

144

416

Sustaining Capex

Growth Capex - rest of Asciano

Growth Capex - Coal

Capital Expenditure

FY13 Capital Expenditure expected to be in the range $700-800m

� Investment in PN Coal in FY13 is once again supported

by signed contracts scheduled to commence over the

period FY13-FY15. Investment in PN Coal in FY13 will

be lower than the $610m in FY12

� Capital expenditure in Terminals & Logistics is

primarily focused around the redevelopment of Port

Botany and the equipment upgrade occurring at all

four container terminals

400

$’m

� PN Rail capital expenditure is being directed towards

the upgrade of freight terminals in NSW, Victoria and

Perth and rolling stock to meet the growth in demand

for services, new contracts and replacement of

inefficient old equipment

� BAPS expenditure is related to new prime movers and

trailers in Autocare and new equipment in Bulk Ports

& Stevedoring to fulfill new contracts

� Capital expenditure in Corporate relates to the

upgrading and outsourcing of AIO’s IT infrastructure

21

Corporate

20

Bulk Ports &

Auto. Port

Services

39

Terminals

& Logistics

190

PN Rail

150

PN Coal

Potential Projects

Growth Capex

Sustaining Capex

Business Improvement Program

Business Improvement Program (BIP) delivered $36.8m in initiatives over the period

PN Rail15.9

Corporate

6.6

BAPS 7.0

$’m

38 38

50

50

38 38

50

50

148148

196

233

45

61

53

$’m

Cumulative BIP savings FY12 BIP divisional split

22


7.3

BAPS 7.0

� BIP initiatives delivered savings across fuel, slot utilisation, crewing arrangements, productivity improvements, telecommunications,

property, fleet replacement, restructure of under performing sites and yard efficiencies

� The longer than anticipated time associated with finalising the Terminals EA has resulted in delays to the implementation of planned

BIP initiatives in Terminals & Logistics. This resulted in BIP targets for FY12 not being met however BIP targets for Terminals & Logistics

are still expected to be achieved over the five year time frame

� AIO remains confident in achieving the $150m in BIP savings over the 5 year plan period

40

62 62 63 7062 62 63 70

FY10

19

29

FY09

19

29

FY08

38

FY11 FY12

53

CorporatePN Coal Patrick*PN Rail

*Patrick – Includes Terminals & Logistics and BAPS

Cash Flow to Net Debt

$’m 214.3

63.4

23.4

46.4233.5

2,708.8

802.3

2,260.0

A 21% increase in operating cash flow before interest & tax (OCFPIT) assisted in funding the

increase in capital investment for new contracts

Net interestOCFPIT

887.7

June 12 Net DebtNon-cash itemsDividends paidOther*Net capex #TaxJune 11 Net Debt

23

*Includes $25.6m proceeds from the sale of businesses during the year

# Cash capex net of sale proceeds

Financial Profile

Facility Type Maturity

Drawn

A$'m

Undrawn

A$’m

Syndicated bank facility ¹ Revolving working capital Oct-13 137.2 12.8

Syndicated bank facility Revolving cash advance Oct-14 650.0 -

Syndicated bank facility Revolving cash advance Oct-16 100.0 550.0

US$ bonds 2 144a/ Reg S Sep-15 428.8

US$ bonds 2 144a/ Reg S Apr-18 727.6

US$ bonds 2 144a/ Reg S Sep-20 643.2


Reconciliation of Loans and Borrowings

24


Total hedged A$ equivalent balance 2,929.4 562.8

Less: working capital facility drawn as bank guarantees ¹ (87.2)

Less: unamortised discount on US$ bonds (6.0)

Less: unamortised debt issuance costs (17.1)

Less: unrealized foreign exchange gain on US$ bonds (89.1)

Add: fair value adjustments to US$ bonds 128.2

Loans and borrowings as per balance sheet at 30 June 2012 2,858.2

Cash and liquid assets as at 30 June 2012 (149.4) 149.4

Net debt / available liquidity as at 30 June 2012 2,708.8 712.2

Notes:

1. Drawings under the working capital facility comprise $50m in cash and $87.2m in performance bonds and bank guarantees

2. Outstanding amounts for US$ bonds are shown at the hedged A$ balances

Debt Maturity Profile

$’m

800

700

600

500

400

25

� As a result of the recent refinancing Asciano has no outstandings due until FY14 and a weighted average debt maturity of 5.3 years

400

300

200

100

0

FY23FY22FY21FY20FY19FY18FY17FY16FY15FY14FY13FY12

BondsDrawn bank facilitiesUndrawn bank facilities

Balance Sheet - Gearing

Net Debt to EBITDA (x)* EBITDA to net interest (x)*

6.5x

3

4

5

6

7

3.3x

3.7x

4.3x

2.5

3

3.5

4

4.5

5

26

3.5x

2.8x 3.0x

0

1

2

3

FY09 FY10 FY11 FY12

2.0x

3.3x

0

0.5

1

1.5

2

FY09 FY10 FY11 FY12

* Net interest and EBITDA based on rolling 12 month period

� Leverage for the period increased primarily due to the utilisation of cash balances for growth capital expenditure

� Net debt comprises loans and borrowings as reported on balance sheet less cash and liquid assets

Net Financing Costs

Twelve months ended June $’m 2011 2012 Drivers of net finance expense

Interest expense (244.0) (217.7) • Expect FY13 WACD of less than 8%

• Payable on gross hedged debt outstanding ($2,842m at

June-12)

Interest income 20.1 15.1

Amortisation of capitalised borrowing costs (10.2) (4.9) • Amortise at future run rate of approximately 25% p.a.

diminishing value

Commitment and other facility fees (13.9) (10.2) • Commitment fee on undrawn balances at 50% of average

bank margin

27

� Financing cost savings during the period were associated with new debt facilities announced in October 2011

� FY13 weighted average cost of debt is forecast to be lower than 8%

� At the end of the period debt was 75% hedged at fixed rates. Foreign currency risk is fully hedged

bank margin

• Bank guarantee fee on outstandings at average bank margin

Unwind of discount on long term provisions (2.6) (2.7)

Material items (53.2) (13.2) • No further material items expected in FY13

Net finance expense (303.8) (233.6)

Tax expense rate increased from 17.4% to 35.4%

Twelve months ended 30 June $’mRestated¹

20112012 % chg

Profit before tax and before material items 289.7 396.3 36.9

Material items (69.2) (13.2) (81.0)

Profit before tax and after material items 220.3 383.1 73.9

Income tax at 30% (2010: 30%) 66.1 114.9 73.9

Capital losses recognised (6.2) (5.0) (24.2)

Non assessable equity accounted profit (4.6) (5.2) 13

Tax Expense

Non assessable equity accounted profit (4.6) (5.2) 13

Removal of rights to future income deduction from prior years - 20.1 -

Other (18.9) 8.9 -

Total income tax expense recognised in the Income Statement 50.3 140.4 179.1

Effective Tax rate 17.4% 35.4%

1. The restatement relates to the voluntary change in accounting policy for the treatment of taxation of the rights to future income contracts as detailed in Note 1 of the

Statutory accounts

Tax expense increased 179% to $140.4m representing an effective tax rate of 35.4% for the year ended 30 June 2012 compared with 17.4%

in the pcp. The difference in the effective tax rate in FY12 as compared with the corporate tax rate of 30% has primarily been driven by the

following:

� In the 31 December 2011 financial statements, Asciano foreshadowed a possible increase in tax expense due to changes in the tax

consolidation legislation.

� The profit on the sale of assets offset by capital losses over the period

� Provision of $15.4m raised in relation to the potential application of section 974-80 of the Income Tax assessment Act 1997. No

assessment has been received at this time

� Non assessable equity accounted profit 28

Material items reconciliation

Material items declined significantly on pcp

Twelve months ended June ($’m) Restated 2011 2012

EBITDA 816.8 907.7

Restructure costs (17.4) -

Operating profit before individually material items, depn & amortisation 799.4 907.7

Impairment of intangibles (3.0) -

Impairment reversal / (impairment) of PP&E 4.4 -

29

Impairment of goodwill - -

Depreciation & amortisation (277.7) (291.0)

Profit (loss) before financing costs and tax 523.1 616.7

Net finance & fees before significant items (249.5) (220.4)

Swap de-designation and write off of establishment fees (53.2) (13.2)

Profit (loss) before tax 220.3 383.1

Tax expense (50.3) (140.4)

Profit (loss) after tax 170.0 242.7

� The FY12 material item relates to the writedown of the unamortised up-front costs relating to the Company’s banking facilities

replaced in October 2011

OUTLOOKJohn Mullen

30

External Environment

� Trading conditions remain challenging across the Australian economy.

� Despite these challenges Asciano has met its objectives and continues to perform well but we do not see this

environment changing dramatically in the coming year.

� Asciano remains well positioned with good underlying fundamentals in each core market;

• Coal fundamentals still positive despite price fluctuation. Strong growth in Queensland

• Rail business still growing above GDP driven by bulk, agriculture and resilient demand

Asciano is well positioned to continue to deliver earnings growth despite macro headwinds

31

• Container volumes still growing despite worldwide shipping industry downturn

• Stevedoring market growth strong. 2012 calendar year on track to be a record year for automotive sales

• Most contracts are volume based so little exposure to direct commodity prices

� Diversification across multiple, related business units further dilutes risk to Asciano overall

� Significant percentage of revenue on Take or Pay basis with new ToP contracts still being signed

� New contracts and rollover of existing customer contracts further underpin AIO’s earnings base

� Longevity of customer commitments in most divisions a significant positive

� Limited exposure to overseas markets, especially Europe

� Labour cost and productivity remain a difficult but manageable issue

Outlook – PN Rail

Outlook Strategic Priorities

� Underlying growth in Intermodal is expected to remain at

GDP+ with the demand for Express services continuing to be

above this rate of growth

� New and renewed existing contracts in FY12 will underpin and

drive growth in FY13

• Following a new contract with the Emerald Group and

additional services for Cargill, PN Rail expects to operate 19

� Focus on BIP initiatives will continue

• Ongoing focus on fuel consumption, slot utilisation and

crewing

• Benchmarking performance reveals further upside

� Service performance and customer retention

• The Intermodal business will be focused on growing volume

through improving the service performance of rail over road

New Bulk and Intermodal contracts will underpin and drive further growth in FY13

additional services for Cargill, PN Rail expects to operate 19

export grain trains in FY13 H1 (compared to 13 train sets in

pcp) and 19 train sets in FY13 H2 (compared to 17 export

train sets in FY12 H2)

• Additional shuttle services for Linfox and Toll Holdings into

Port Botany

• Agreement with Bluescope for the haulage 650K tonnes pa of

product between Port Kembla and Western Port. This is

expected to commence FY13 Q2.

• This additional task will form part of the new 7 year Steel Link

contract which commences 1 January 2015 with Bluescope

and Arrium

• Magnetite contract for Xstrata commenced April 2011 with

one train consist; second commenced August 2011

through improving the service performance of rail over road

� Bulk commodity development opportunities

• Opportunities continue to be explored with a focus on

developing innovative solutions to meet industry needs

� Asset replacement and cascading programme

• Group wide evaluation of locomotive cascading

• Ongoing focus on maintenance programme to extend life and

improve reliability

32

PN Rail - Focus on BIP

Achievements to date

� Optimise the assets

• Improvement in Intermodal slot utilisation (wagon slots

used on each service) of 8.2% since FY09

• Improvement in locomotive utilisation (locomotive HP

capacity used) of 4.2% since FY09

� Cost reductions

• Improved fuel consumption with a 6.4% reduction in

litres per GTK (gross tonne kilometre) since FY090

1

2

3

4

5

6

7

8

9

Slot Utilisation%

33

0

FY12FY11FY10

Cumulative Slot Utilisation Improvement

0

1

2

3

4

5

6

7

FY11FY10 FY12

Cumulative Litres per GTK improvement

%

0

1

2

3

4

5

FY12FY11FY10

Cumulative Loco Utilisation Improvement

%

Fuel Consumption Locomotive Utilisation

Outlook – PN Coal


� The full year impact of new contracts commenced in January

2012 in Queensland will have a positive impact on FY13 result

• 10.9mtpa contract with Anglo American in Queensland

• 3mtpa contract for Middlemount mine (JV between Yancoal

(Gloucester Coal) and Peabody (Macarthur Coal)) in

Queensland

� A 3.5mtpa contract with Anglo American commenced on 1 July

� Focus on resolving congestion issues in the Hunter Valley

• Working with key stakeholder groups including ARTC,

HVCCC, port operators and coal producers

• Impacts are expected at least until ARTC holding roads are

completed

� Focus on productivity and operational efficiency to improve

returns in the Hunter Valley

New contracts and a focus on operational efficiencies expected to drive growth in FY13

� A 3.5mtpa contract with Anglo American commenced on 1 July

2012 expected to ramp up over FY13.

� A contract for the movement of up to 4.2mtpa with BHP Mitsui

Coal commencing 1 January 2013

� New contracts secured in FY12 take FY14 annualised

contracted tonnage to 176m tonnes

• Rio Tinto 10 year 8.5mtpa performance based contract in

Queensland to commence November 2013

• Bandanna Energy 4mtpa performance based contract in

Queensland expected to commence July 2014

returns in the Hunter Valley

� Completion of work on Nebo and Greta provisioning and

maintenance facilities and commencement of operation

• Construction and fit out work at Nebo is being finalised

and the transition to full operations has commenced

• Completion at Greta in NSW expected December 2012

� Focus on identifying and managing downside risk in current

uncertain macro environment

� Continue to look at ways to achieve a competitive advantage

through the offer of an integrated solution

34

Outlook – Terminals & Logistics


� AIO growth in container volumes will be dependent on:

• Market growth rates have slowed will be dependent on

Australian economic environment

• The rapidly changing structure of shipping line consortia and

services coming into Australia may affect market shares

� New contracts secured in FY12 and productivity improvements

should have a positive impact on FY13 volume growth and

� Ongoing assessment of AIO’s competitive response to entry of

third competitor including strong customer focus and

differentiated service offerings

� Lift performance of Port Botany through improved

productivity

• Need to lift PB terminal performance to provide a seamless

East Coast service to customers

Focus on driving productivity improvements and leveraging strategic assets to cement

competitive position in the market

should have a positive impact on FY13 volume growth and

margins:

• A new three year contract signed with NEAX to include

services to East Swanson Dock as well as existing services to

Fisherman Islands and Port Botany

• A full year contribution from the contract with MSC that

commenced on 1 January 2012

• A reduction in the volume subcontracted or lost through

vessel omissions caused by industrial action during FY12

• Improvement in productivity and customer service following

the implementation of new rostering and work practices and

additional quay cranes and yard equipment

� Robust plans to defend market share and compete with new

entrants

East Coast service to customers

� Focus on execution of Port Botany development project

• Development of the “Knuckle” to ensure the extension of the

lease over the expanded Port Botany terminal until 2043

• Ensuring a seamless experience for our customers during the

development period

• Ensure automation rollout is successful as key to achieving

efficiency improvements

� Focus on options and opportunities to expand container port

capacity at Port of Melbourne

• Part of negotiations over the early termination of Webb Dock

lease

� Continue to develop improved land side logistics services to

enhance our value proposition to the ultimate freight owners

35

Container Terminals Scorecard

Fisherman Islands Port Botany East Swanson Dock

FY12 Coastal Window Performance % 95 30 71

FY12 Labour cost per lift $ 61.6 109.7 72.6

Terminal performance scorecard reflects the benefits that can be delivered for customers, employees

and shareholders through the introduction of more efficient and productive work practices

East Coast Container Terminal Performance

FY12 Lost time to injuries (LTIs) 2 77 11

FY12 Workers compensation cost $m 0.3 6.7 2.1

36

� Some of the variation across these performance metrics can be attributed to the difference in volume and type of freight flowing

through each terminal

� The throughput of Port Botany and East Swanson Dock is very similar with terminal layouts and equipment that is also very

comparable. There are significant improvements in safety, customer service and efficiency that can be achieved if the performance at

Port Botany can be lifted to match East Swanson Dock even before the significant benefits of automation are delivered

Outlook – Bulk & Automotive Port Services


� Volume growth will be determined by activity in the resources

and bulk commodities market and growth of the automotive

supply chain

� A number of new contracts signed and existing contracts

renewed in FY12

• Renewed a number of long term contracts in FY12 including

NYK, Arrium, Westlink, Swire and Shell

� Continue to focus on restructure of the business and

improvement in margins and business sustainability

� Work with Port of Melbourne Corporation and Victorian

Government to identify options for the movement of current

activities at Webb Dock

� Settle outstanding issues and finalise Stevedoring EA with the

MUA

Improved performance from both restructuring and increased revenue growth to continue

• In April 2012 secured a contract with Agility Services for the

provision of marine transport services to the supply base for

the Gorgon project off the coast of Western Australia

• Recently renewed contract with Mitsubishi for a three year

period

• Recently secured Porsche contract and pitching for a number

of other specialist brands

• In February 2012 AIO increased its ownership interest in the

Port of Geelong from 30% to 50%

• The division has exercised the option to renew the

management agreement for 5 years between Port of

Hastings Development Authority and Patrick to 2017 at

Western Port Bay in Victoria

MUA

� Continue to target new business opportunities around

strategic infrastructure projects

� Identify opportunities to expand ports portfolio and leverage

experience and skill set

� Autocare to look at opportunities to diversify and leverage

expertise and strategic assets

37

Outlook - Asciano

Outlook positive with Asciano well positioned to continue to deliver earnings growth

� Despite the difficult macro environment AIO has and will continue to focus on achieving its five year

business plan and meeting its financial targets

• Last 18 months have seen consistent delivery against those targets

• Although the macro environment may result in changes in the business mix and the timing of cost savings, the

management team still intends delivering on its original objectives

• Original goals of exceeding WACC and higher return performance within original timetable remain intact

� Continued de-risking of business to be further pursued

38

• Continued focus on high return, long term business opportunities. No chasing of market shares or volume growth on

low margins and increased focus on counterparty risk

� Continue to explore synergy opportunities from AIO’s existing portfolio and leveraging the supply chain

� Ongoing focus on lifting customer service levels through innovation and integrated service offerings

� Continued focus on cultural change, safety and sustainability and the creation of a highly motivated

workforce establishing a culture of performance through shared understandings of goals and objectives

• Significantly improve waterfront industrial relations environment

� Continued strong focus on cost efficiencies and productivity throughout all divisions

� Conditions unsuitable for more specific market guidance but update to be given at AGM

Appendices

39

Definitions

• Revenue - Revenue and other income

• Material items - Material items include continuing material items, discontinued material items and gains or losses on sale of

discontinued operations

• EBITDA - Profit before interest, tax, depreciation and amortisation (divisional EBITDA exclude corporate costs)

• EBIT - Profit before interest and tax (divisional EBIT exclude corporate costs)

• NPAT - Net profit after tax

• OCFPIT - Operating cash flow pre interest and tax

40

• OCFPIT - Operating cash flow pre interest and tax

• PCP - Prior corresponding period

• ROCE - Return on capital employed (EBIT / average capital employed) 12 months rolling

• EPS - Earnings per share (NPAT / weighted average number of shares outstanding)

• Capital employed - Net assets less cash, debt, other financial assets/liabilities, tax, and intercompany accounts (for divisional

ROCE)

• Cash conversion (group) - OCFPIT / EBITDA

• Cash conversion (divisional) - Operating cash flow / EBITDA

• Operating cash flow - EBITDA + change in net working capital

• BAPS – Bulk & Automotive Port Services

Result – PN Coal

27% EBIT growth driven by the contribution from new contracts

� Revenue growth net of access of 19.5% was driven by

new contracts that have commenced in Queensland

in the last eighteen months and a net weather benefit

over the period compared to pcp. Revenue growth

was positively impacted by the renegotiation of

contracts in the Hunter Valley.

� Tonnage hauled in Queensland increased 28% over

the period driven by new contracts and the reduced

impact of the wet season versus pcp. Tonnage hauled

Twelve mths ended June 2011 2012 % chg

Total Tonnes (‘m) 122 120 (1.6)

Total NTKs (‘m) 19,097 19,988 4.7

Revenue (net of access) ($m) 577.9 690.4 19.5

Access charges ($m) (248.1) (242.9) (2.1)

EBITDA ($m) 266.8 327.0 22.6

EBIT ($m) 176.4 223.3 26.6

41

impact of the wet season versus pcp. Tonnage hauled

in South East Australia declined 7.4% impacted by

lost tonnage in the pcp, industrial action at Port

Kembla Coal Terminal and ongoing Hunter Valley coal

chain congestion

� EBITDA increased 22.6% reflecting growth in revenues

and the transition of the contract base to take or pay

performance based contracts

� Depreciation over the period increased 19% reflecting

the deployment of new rolling stock for new

contracts that commenced over the period.

� The 139% increase in capital expenditure over the

period is underwritten by new customer contracts

commencing over the next two years and investment

in Nebo and Greta infrastructure

EBIT ($m) 176.4 223.3 26.6

EBITDA margin (%) 46.2 47.4 119 bps

EBIT margin (%) 30.5 32.3 182 bps

ROCE (%) 9.6 10.4 76 bps

ROCE excl WIP (%) 11.0 13.2 227 bps

Cash conversion (%) 101.3 106.3 493bps

Capital expenditure ($m) 255.3 610.1 139

Result – PN Rail

13.3% growth in EBIT driven by new contracts and BIP benefits

� Revenue growth of 14.6% was driven by a 9.8%

increase in Intermodal revenue and a 28.5% increase

in Bulk revenue

� Revenue growth reflects the benefits of new

contracts, a strong agricultural cycle and strong

demand for Intermodal services into Perth in Western

Australia

� EBITDA growth was boosted by the benefits flowing

Twelve mths ended June 2011 2012 % chg

Intermodal NTKs (‘m) 21,833.9 22,974.8 5.2

Intermodal TEUs (‘000) 676.6 694.0 2.6

Bulk NTKs (‘m) 4,282.9 5,645.6 31.8

Bulk tonnes (‘000) 13,663.5 16,707.4 22.3

Steel tonnes (‘000) 2,639 2,674 1.3

Total Revenue ($m) 1,154.7 1,323.2 14.6

42

� EBITDA growth was boosted by the benefits flowing

from the divisions BIP initiatives which contributed

savings of $16m in the period.

� EBITDA was negatively impacted by the increased cost

of derailments in the period and higher labor costs

associated with the recruitment and training of new

train crews to support the higher export grain volume

� Cash conversion improved due to a lower net working

capital requirement from improved cash collection

over the pcp.

� Free cash flow, after the 33.5% increase in capital

expenditure, increased 8.2% to $170.2m

Total Revenue ($m) 1,154.7 1,323.2 14.6

EBITDA ($m) 286.9 316.4 10.3

EBIT ($m) 187.6 212.6 13.3

EBITDA margin (%) 24.8 23.9 (90) bps

EBIT margin (%) 16.2 16.1 (10)bps

ROCE (%) 14.1 15.5 140 bps

Cash conversion (%) 91.8 98.5 700 bps

Capital expenditure ($m) 106.0 141.5 33.5

Result– Terminals & Logistics

Strong underlying container volume growth of 13.6% driven by gains in market share

� Revenue growth of 11.6% was driven by underlying

growth in container volume market share. Revenue

included legal claim settlement receipts of $2.8m on

pcp and asset sale proceeds of $14.2m offset to an

extent by $11.3m in costs associated with industrial

disputes

� Underlying revenue growth in the Container Terminals

business was 13.5% driven by an 11.9% increase in

lifts and a 13.6% increase in TEUs over the period

Twelve mths ended June 2011 2012 %chg

Container Volume - TEUs (‘000) 2,563 2,912 13.6

Container Volume - lifts (‘000)¹ 1,759 1,967 11.9

Revenue ($m) 700.2 781.2 11.6

EBITDA ($m) 210.8 225.6 7.0

EBIT ($m) 157.1 170.4 8.5

EBITDA margin (%) 30.1 28.9 (123)bps

43

lifts and a 13.6% increase in TEUs over the period

� EBITDA was impacted by a number of one-off items

including the impact of industrial disputes during the

year of $21m, combined with a 21% increase in labor

costs and a 31% increase in property costs over the

period. The result includes $14.2m profit made on the

sale of the automation technology intellectual

property

� EBIT growth benefited from the restructure of the

logistics business and the closure of some loss making

activities

EBITDA margin (%) 30.1 28.9 (123)bps

EBIT margin (%) 22.4 21.8 (62)bps

ROCE (%) 7.6 8.3 69bps

Cash conversion (%) 96.9 110.4 1352bps

Capital expenditure ($’m) 40.5 74.8 84.8

Result – Bulk & Automotive Port Services

45% EBIT growth driven by restructuring of the business over the last eighteen months

� Revenue growth of 4.4% was driven by an underlying

increase in volumes in the Stevedoring business and

the Autocare business. Stripping out the impact of

discontinued and restructured businesses revenue

increased 10.3%

� EBITDA growth of 19.2% was driven by a 22%

increase from the Bulk Ports & Stevedoring

businesses following a significant restructure over the

last eighteen months and a 12.9% increase in the

Twelve mths ended June 2011 2012 %chg

Vehicle storage days (‘000) 11,971 11,811 (1.3)

Vehicle movements (‘000) 977 944 (3.4)

Revenue ($m) 471.9 492.9 4.4

EBITDA ($m) 68.8 82.0 19.2

EBIT ($m) 45.5 66.1 45.3


44

last eighteen months and a 12.9% increase in the

contribution from Autocare. BIP initiatives delivered

$7m over the period.

� EBIT growth reflects the growth in the business

combined with the benefits of lower amortisation

due to the roll-off of customer contracts in the

Autocare business.

� ROCE improved significantly and is now well above

AIO’s WACC and reflects the significant restructuring

of the business over the last eighteen months.


EBIT margin (%) 9.6 13.4 376 bps

ROCE (%) 12.9 18.5 553 bps

Cash conversion (%) 107.8 81.0 (2681)bps

Capital expenditure ($’m) 11.8 17.6 48.8

Headcount

1,782

2,204

1,7621,818

2,349

7,446

6,873

20122011

FTE Headcount¹ increased 8.3% reflecting the growth in the business over the period

186

1,6901,782

1,011

242

1,7621,818

1,274

TotalCorporateBulk Ports & Automotive

Port Services

Terminals & LogisticsPN RailPN Coal

1. FTE (full time employee) as at year end

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