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ASX ANNOUNCEMENT
Tuesday 12 November 2013
The Manager Company Announcements Office Australian Securities Exchange Level 45, South Tower Rialto 525 Collins Street MELBOURNE VIC 3000 ELECTRONIC LODGEMENT
Dear Sir or Madam
2013 Annual General Meeting – Chairman, CEO and Remuneration Committee Chairman addresses
In accordance with ASX Listing Rule 3.13.3, please find attached the addresses and accompanying slide presentation to be given by Asciano’s Chairman, Chief Executive Officer and Remuneration Committee Chairman at the Annual General Meeting to be held today at 10.00am. Yours faithfully
Fiona Mead Company Secretary
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Annual General Meeting
12 November 2013
AGM Speeches
*Slide 1 – Asciano Limited – Annual General Meeting*
MALCOLM BROOMHEAD:
Good Morning Ladies and Gentlemen.
My name is Malcolm Broomhead, Chairman of Asciano Limited. On behalf of my fellow
Directors, I welcome you to our company’s 2013 Annual General Meeting. I also welcome
shareholders listening to our meeting today through our webcast facilities.
Before we start, can you please ensure your mobile phones are switched off or to silent.
*Slide 2 – Evacuation Instructions*
I also want to make sure you are familiar with the evacuation procedures we will follow in the
unlikely event of an emergency.
In the event of an emergency, you will hear an evacuation alarm. Please follow the
instructions of the wardens and assemble at the primary evacuation point for the Exhibition
Centre, which is shown in the colour red and labelled as area number one on the slide
behind me.
**Slide 3 – Asciano Limited – Annual General Meeting**
This is a properly constituted meeting and a quorum is present. I therefore declare the 2013
Annual General Meeting of Asciano Limited open.
Let me start by introducing my fellow Directors, our Chief Financial Officer and our Company
Secretary.
Seated on my immediate right, is Fiona Mead our Company Secretary. Next along is John
Mullen, our CEO and Managing Director. Next to John is Roger Burrows, our Chief
Financial Officer. Next to Roger are our Non-Executive Directors, Chris Barlow, Peter
George, Shirley In’t Veld, Geoff Kleemann, Bob Edgar and Ralph Waters.
Our Auditor, KPMG, is present today, represented by lead auditor, Mr Steven Gatt.
Also present today are a number of Asciano’s senior leadership team, who will be available
to answer any questions you may have following the close of the formal meeting. I
encourage all of you to take this opportunity to engage with our senior managers to learn
more about the performance of our business.
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**Slide 4 – Disclaimer**
The Notice of Meeting was distributed to shareholders on 10 October 2013 and with your
consent, I propose to take the notice as being read. I also draw your attention to the
disclaimer slide which you can now see in front of you.
**Slide 5 – Agenda**
I will start the meeting today with some brief comments on our performance in the 2013
financial year and then provide an overview of Asciano’s ongoing development around its
four core values of Safety, Customer, People and Teamwork, and Performance. I will also
make some comments on the area of sustainability where we have taken some steps this
year. I would then like to touch on the current business environment and the reforms we
believe need to be made to assist Australian business to continue to compete and grow in
the increasingly competitive global marketplace.
I will then ask our Managing Director and CEO, John Mullen, to run through some of the key
operational highlights from 2013 and provide an update on trading conditions for the first
quarter of the 2014 financial year. We will then provide the opportunity for those present to
ask questions on the presentations or any other topics of general interest in the Company’s
activities.
Following question time we will move into the formal business of the meeting. The Chairman
of the Remuneration Committee, Mr Chris Barlow, will address the meeting when we
consider the resolution relating to the Remuneration Report. I ask that any questions relating
to the Remuneration Report be held till this time.
The next items of business are to consider the re-election of directors after which we will
consider the item relating to the grant of rights to the Chief Executive Officer.
I note that voting on all resolutions will be conducted by a poll. I will then formally close the
meeting following which light refreshments will be served.
**Slide 6 – Chairman’s Address**
The 2013 financial year has been another successful one for Asciano. Our Managing
Director and CEO, John Mullen, has completed his second full year as CEO and under his
leadership, we have achieved another strong result and continued the successful execution
of our five year strategic business plan.
This is my fourth year at Asciano, and I am honoured to lead the Board of a company which
plays such an important role in Australia’s economy.
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**Slide 7 – Year in Review**
Throughout 2013, we have implemented a number of strategic business initiatives to
improve the company’s performance. We also continue to embed our core values of
Performance, Customer, Safety and People and Teamwork, and I would like now to provide
a brief summary of highlights from the last year in each of these areas.
Performance
In terms of financial performance, I am pleased to report that Asciano has continued to
deliver strong year-on-year revenue and earnings growth. Despite difficult macroeconomic
conditions, underlying net profit after tax and minority interests increased to $348.1 million,
an increase of 39%. John will go through the result in more detail however I am also pleased
to report that on the basis of the strength of the result we declared a fully franked final
dividend of 6.25 cents per share, a 56.3% increase over the same period in the previous
financial year. The final dividend takes the full year dividend paid to a fully franked 11.5
cents per share. The dividend policy introduced by the Board in 2011 has been reviewed
and out payout ratio band will be expanded from 20 to 30% to 20 to 40% of net profit before
material items, a decision reflecting the Board’s confidence in Asciano’s improving cash flow
profile.
Customer
In the customer space, we have continued to invest in major projects to boost customer
service, productivity and efficiency and place the business in a strong position to capitalise
on a recovery in markets.
The ongoing investment in the business is an example of continued private sector
investment in new infrastructure to continue to drive productivity improvements across our
industry. We remain committed to working with government on new projects and regulatory
reforms that will further enhance the efficiency of Australia’s transport and logistics network,
a subject I will touch on a little later.
Finally in the customer space, over the last year we have also significantly increased our
focus on developing a customer centric culture, acknowledging that first-class customer
service is vital to our ongoing success. We introduced our first ever Group-wide customer
survey to help us understand what we do well and where we need to focus more and we
have a plan in place in order to address some of those areas where we need to improve.
Safety
Improving safety performance has continued to be a focus for the Board and Senior
Leadership Team. As you know, our safety goal is to ensure all our employees return Home
Safely Every Day. Over the last year we have taken steps to strengthen our overarching
safety management framework, improve our safety management and reporting systems and
further enhance our safety culture.
While there is still work to do, it is pleasing that our safety performance is moving in the right
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direction. Across the Company in 2013, I’m pleased to say we achieved a 20.5%
improvement in our recordable injury frequency rate performance and a 32.3% improvement
in our lost time injury frequency rate performance.
A priority for the next year is the implementation of our Critical Safety Essentials program,
which is aimed at better isolation and management of our critical operational safety risks.
People & Teamwork
Finally, efforts to further develop our company culture, to improve our employee engagement
and to strengthen our leadership right across the business have remained an important
priority for John and his team.
Over the last year we have continued our efforts to build leadership capability and engage
our people through a shared vision and unified culture. Key initiatives have included the
rollout of Values Workshops across the business to heighten the awareness and
understanding of our business values and how our employees can live them every day,
along with the implementation of new development programs for our executive and emerging
leaders.
These initiatives are an important part of our ongoing development as a leading organisation
in the Australian transport and logistics industry. It is pleasing to see that our second
Company-wide employee engagement survey showed that engagement amongst our
employees continues to improve.
**Slide 8 – Sustainability**
We are also pleased that this year we have launched our inaugural Sustainability Report to
provide greater transparency on our economic, environment and social performance. Many
of these non-financial issues are becoming a greater priority and focus for our key
stakeholders, including our customers, employees and for many of you, our shareholders.
For this reason, the launch of the report is an important development for Asciano. The report
was launched last month as part of our online 2013 Annual Reporting suite and measures
our performance in managing our key sustainability issues during the 2013 financial year.
The report is also an important part in the development of our broader sustainability
program, which is being overseen by Shirley In’t Veld and the Board Sustainability
Committee. Over the last year we have been busy building the foundations of this program
and I am pleased that at this year’s AGM we will be providing more information to
shareholders on our approach in this area of our business.
Shirley and a number of our team will be at our sustainability booth down in the foyer after
today’s meeting to provide you more information on our sustainability approach and
performance. I encourage you to visit the booth and to access and provide feedback on our
2013 Sustainability Report.
**Slide 9 – Board Matters and Corporate Governance**
The role of the Board of Directors is to continue to generate shareholder value through
oversight of Asciano’s strategic plan and management, and by ensuring appropriate risk
controls are maintained. All members of the Board are unified in our goal of seeing the
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company continue to deliver strong performance.
For this reason, I am committed to ensuring we have a mix of Directors with the right skills
and experiences, and that we continue to have stability in leadership at a Board level. In this
respect, I advise that Mr Peter George, who resigns under Article 9.2(a) of our Constitution,
is standing today for re-election.
Peter has made a substantial contribution to Asciano, having served on the Board since the
Company was listed in 2007. Peter was Chair of Asciano’s Audit and Risk Management
between 2007 and 2012, overseeing a substantial improvement in the Company’s financial
processes and risk management systems during this time. He has remained a member of
this Committee, along with the Nomination and Succession Planning Committee, and our
Sustainability Committee.
Today we will ask you to continue our strong leadership at a Board level by re-electing Peter
George as a Non-Executive Director. You will hear more about Peter’s skills and experience
later in the meeting.
**Slide 10 – Business Environment
In closing, I would like to make some comments about the business environment in which
we operate and the microeconomic reforms that we believe can support further efficiency
and productivity improvements across our industry.
As you know, Asciano is an important driver of Australia’s economy. We handle and haul the
millions of tonnes of commodities, goods, products and other materials that keep Australian
businesses and households running. Asciano is also a barometer of the productivity of
Australia’s supply chain and the efficiency of Australia’s broader business operating
environment.
The Board and management team are committed to elevating the efficiency and productivity
of our operations and we continue to take steps to elevate our performance. For example, in
our container terminals division, service performance hit an all-time high in the last quarter,
with 97% on-time coastal window performance, while labour productivity has also improved.
Our $348 million investment in the Port Botany redevelopment project will further elevate the
productivity and efficiency of our terminal operations.
Yet we continue to be burdened by an over-regulated industrial relations environment. While
we are committed to working with all our employees to create harmonious, balanced and
productive workplaces, we believe some changes could be made to the current industrial
relations regulatory framework to promote productivity and improve Australia’s
competitiveness in the global economy. For this reason, we support the new Coalition
Government’s commitment to reviewing and improving the Fair Work Act through the
Australian Productivity Commission. However, it is important to move toward appropriate
change sooner rather than later.
The focus of reforms should be on providing employers with greater flexibility in agreement
making and the ability to work directly with their employees to agree and implement
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workplace agreements that meet both parties’ needs. More specifically, if we are to address
some of the current challenges, it is essential that all parties be held to common standards
and that appropriate recourse be available when these standards are not met.
In addition, the circumstances under which protected action can be taken also need to be
reviewed. Under the current laws, confirmed in recent case law, the concept of ‘genuinely
trying to reach an agreement’ is very loose and takes no account of whether claims are
unrealistic, aggressive or whether negotiations have gone as far as they can. This promotes
drawn out negotiations and sets up an adversarial environment between employee and
employer, which in turn has a negative impact on workplace productivity. Similarly,
bargaining content should be restricted to matters between the employee and employer, with
a focus on what our employees’ need, not on what interests their bargaining representative
may wish to pursue outside the employment relationship.
These changes are critical if the nation is to maintain our competitiveness and standard of
living.
Efforts to boost productivity and efficiency also continue to be a focus in our Pacific National
Rail division. The business has set a target of achieving 95% on-time arrivals for its freight
services, a target that represents a transformative change for an industry that has for too
long accepted service unreliability as the norm. It is pleasing to note that over the last 6
months, the business has achieved a significant improvement in on-time performance, for
example, achieving 88% of freight on time in our Intermodal business. However, there is
clearly still a long way to go to demonstrate that rail can be as efficient and reliable as other
forms of freight transport.
Yet, here too, the industry is burdened by over regulation and limited by an infrastructure
and competition policy framework that has failed to promote productivity in the freight
network. For example, efforts to move toward national regulation of the rail industry, such as
through the establishment of a National Rail Safety Regulator, have been slow to be
implemented, and have not been focussed where they would have the greatest benefit. A
freight train travelling from Brisbane to Perth still goes through six access providers, with six
different access agreements, operating under five economic regulatory regimes.
Similarly, while we know the benefits of moving freight via rail can only be achieved with
infrastructure that can accommodate heavier and longer trains, the length and stacking of
containers on trains continues to be limited by the need to travel through tunnels on the
metropolitan network and by the length of passing loops along key freight routes. Greater
investment in new rail infrastructure, such as through an inland rail network on the east coast
of Australia, would help unlock the productivity benefits of rail while leading to better social
outcomes, such as through reduced congestion, better road safety and improved
environmental outcomes.
As a major rail and truck operator, Asciano also believes that to drive freight efficiency the
government must press forward on the Heavy Vehicle Charging and Investment Reform
agenda. If the supply side and direct charging reform processes proceed together, then
these reforms will deliver economic efficiency and widen the funding base for additional
investment in new roads infrastructure.
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Finally, with regard to competition policy in the rail industry, governments around Australia
must continue to support increased competition between operators by maintaining the
benefits of ownership separation between below and above rail assets and, where this is not
the case, ensure strong and effective access regulation is in place. This is particularly
important in Queensland, where the consultation process has commenced on Aurizon’s new
below rail network access undertaking. It is important the regulator in Queensland continues
to remain vigilant in protecting the benefits that above rail competition has delivered and, for
this reason, Asciano and our coal customers strongly oppose the undertaking as it is
currently drafted.
**Slide 11 – Outlook**
John will go through the outlook and business prospects for Asciano over the next twelve
months, however I will conclude by saying that, as you know, Asciano’s performance
remains inextricably linked to the strength of the Australian economy and demand for
Australia’s mineral and agricultural commodities in overseas markets.
The diversity of our portfolio of businesses will continue to provide a buffer in what we
believe will be an uncertain economic environment and our business improvement and
efficiency initiatives will again to be a focus over the course of the next year. John and his
Senior Leadership Team will also continue to ensure customer service and safety remain
a priority.
In closing, on behalf of the Board of Directors, I would like to thank all our shareholders for
their ongoing support. I would also like to acknowledge and thank John and his Senior
Leadership Team, along with all Asciano’s employees, for their efforts in helping us achieve
another year of strong performance.
I will now hand over to our Managing Director and CEO, John Mullen.
JOHN MULLEN:
**Slide 12 – CEO Address
Thank you Malcolm and good morning everyone.
Firstly I would like to add my thanks to all of our employees who contributed to another good
year of growth in fiscal year 13 despite the tough economic head winds which had a major
impact on our Pacific National Rail and Terminals divisions in the second half of the year. I
would also like to thank our customers and other key stakeholders for working with us and
supporting us through what have been challenging times for everyone. Lastly, deep thanks
also to our shareholders for continuing to support us on the Asciano journey.
Today I would like to give you an overview of the fiscal year 13 operating highlights and the
progress we have made against the key five year targets we established in September 2011
to drive shareholder value. I will then give you an update on trading conditions for the first
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few months of FY14 across our divisions.
**Slide 13 – 2013 Highlights
Asciano again reported good growth in the fiscal 13 year despite very weak market
conditions in 2 of our major divisions. I believe that this result demonstrates:
The underlying strength of the company’s operating businesses
The relatively defensive nature of our businesses in tough times
Our cost reduction and business improvement focus and delivery
Our competitive position which enabled us to maintain our existing customers and win
new business, and finally
Despite the tough times two of our divisions are reporting good organic growth; our Coal
division which reported a 7.8% increase in volumes and our Bulk Ports & Autocare
businesses which reported significant growth in vehicle movements, storage days, and
volumes at some ports.
In light of the current environment, there has been, and continues to be, an increased focus
on our business improvement program and accelerating returns to shareholders from the
significant capital investment program we have made over the last few years:
For example we reduced capital expenditure by 30% or $200m compared to the previous
corresponding period
Free cashflow after capital expenditure was positive ($11m) before acquisitions and
dividend. This is 2 years earlier than committed to the market
In 2013 our BIP came in $45.7m well ahead of our budget of $25m. This means that we
have achieved cumulative benefits of $82m since FY12. As a result, we remain on track
to meet and probably exceed the $150m target we set in 2011
Terminals did a particularly good job in terms of reducing costs in the face of a difficult
environment. Operating costs declined 4.4% despite wages increases of 4.25% including
superannuation and a 7.6% increase in lease expenses
Our balance sheet metrics continue to improve
ROCE was up again to 11.0%. 3 divisions are now at or ahead of our Group WACC. The
Terminals division reported a ROCE of 7.2% however the return on the physical assets
in the business was 25.8%
Excluding legacy goodwill group ROCE now exceeds 18%
Despite the climate, the Company continued to invest in the business to maintain its
competitive position and to establish a platform for growth when the market improves. We
have not been sitting on our hands...
In Pacific National Coal we have developed two new facilities at; Greta in NSW and
Nebo in North Queensland both world class and innovative rail provisioning and
maintenance facilities
Port Botany container port redevelopment currently underway; State-of-the-art
technology and facilities
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In Pacific National Rail our Perth, Sydney, and Melbourne terminals have been upgraded
and we have commenced a significant locomotive repowering
Complete overhaul and modernisation of Asciano’s IT platforms
The Bulk and Automotive Port Services division has completed the C3 and Mountain
Industries acquisitions.
**Slide 14 –Status Against Five Year Objectives- growth
Asciano is now two and a half years into a 5 year strategic plan aimed at improving
shareholder returns following a difficult past through improvements across a broad range of
metrics including:
Financial Performance
Balance Sheet
Investor returns
Cultural and structural.
As I discussed last year we established multiple objectives for the five year plan and given
the difficulties in forecasting volume growth in the current environment we were never going
to hit every one every year however I am pleased to report that:
We are continuing to hit most metrics most years
Where one metric such as EBIT is below the 15% CAGR forecast, the corollary is that
we have made faster progress on free cashflow & ROCE
We are comfortable that our turnaround is on track and our overall objectives will be
achieved
A few examples of the business meeting its targets include:
Overall Group revenue growth is holding up quite well despite really challenging
economic conditions impacting two of our divisions, Pacific National Rail and Terminals
& Logistics
Our cost structure remains a focus given the current environment and we believe that it
is in good shape with our business improvement program on track and ahead of
expectations
EBIT growth in FY13 was 12% however given the current weak trading conditions we do
not believe we will meet this target in FY14. However over the five years we still believe
we will average growth rate of 10-15% which is a reasonable result in this environment.
**Slide 15 –Status Against Five Year Objectives – returns and business performance
Whilst earnings growth is not quite as good as originally forecast due to the weaker than
anticipated trading environment there has been better than expected performance in other
areas:
Tough economic times have meant cutting costs and pruning back capital expenditure
This has resulted in the Company reaching a free cashflow positive position excluding
acquisitions 2 years ahead of plan
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As a result of the stronger cashflow dividends have been increased by 25% in 2012 and
53% in 2013.
We established a number of other objectives outside of financial objectives including:
Establishing a quality management team
Culture change which has included a number of major programmes around Customer,
Employee Engagement and Diversity; and
Safety which despite quantum levels of improvement over the last couple of years
remains a key focus across the Group and where we expect to make further significant
gains over the next few years.
**Slide 16 – Update – Pacific National Coal
Moving to the trading conditions in the first quarter of the 2014 fiscal year.
As you can see from this slide our Coal haulage division has had an excellent start to the
fiscal year reporting a 16.5% increase in tonnage hauled in the first quarter compared to the
same quarter last year, driven by organic growth in the NSW market and new contracts and
organic growth in the Queensland market.
Indications are that the current strong haulage volumes will continue into the end of this
calendar year.
As highlighted previously, changed planning and operational processes within PN Coal and
the broader Hunter Valley Coal Chain have yielded significant throughput benefits for the
division and more importantly our customers with very strong coal haulage volumes
delivered in the Hunter Valley in the first four months of the financial year (17% NTK
increase compared to pcp). This is further demonstrated by average cycle times for Pacific
National Coal in the central Hunter Valley and Gunnedah Basin being reduced by ~8% over
the last two months compared to the previous corresponding period as a result of the
changed processes, supported by recently completed port infrastructure expansions,
liberating the benefits of the Greta train support facility and consistent availability of coal for
haulage. This level of performance has significantly reduced the historical gap between
consolidated contracted volumes and delivered volumes, including performance in October
which set a new performance record and exceeded contracted volumes.
This month the division has commenced a new 8.5mtpa contract in Queensland with Rio
Tinto Australia from its Hail Creek and Kestral mines in Queensland.
The commencement date for the 4pmtpa haulage contract with Bandanna Energy for its
proposed Spring Creek mine in Queensland has been delayed until 1 January 2016.
**Slide 17 – Update –Pacific National Rail
Turning now to our intermodal and bulk rail haulage division Pacific National Rail.
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The weak trading conditions experienced in the second half of fiscal year 13 have continued
into the start of the 2014 fiscal year.
Intermodal volumes were down 2.6% in the first quarter compared to the previous
corresponding quarter driven by very weak volumes travelling east-west across the country.
Steel volumes and north-south volumes were stronger however this was not sufficient to
offset the negative leverage in the business caused by lower volumes on the dominant east-
west route.
Bulk volumes were down significantly on the same period last year however we expect to
make up most of this volume over the remainder of the year as good export grain harvests in
Victoria and Southern NSW are hauled and we commence additional services secured over
the last six months.
New contracts secured over the last few weeks in both Bulk and Intermodal make us more
confident that the Pacific National Rail FY14 full year EBIT result will now only be below last
year in the order of 5%, the bottom end of the range we released with our quarterly result
announcement to the market in October.
**Slide 18 – Update – Terminals and Logistics
Moving to our Terminals & Logistics division, container lifts were up 6.3% for the first quarter
compared to the previous corresponding period which reflected a swing back to Patrick in
market share with three month rolling market share moving back to approximately 49%.
Underlying container market growth for the period was in the order of 2% and has remained
volatile into the second quarter of the fiscal year.
Based on feedback from our key customers we continue to forecast 1-2% market growth in
container volumes for the FY14 year.
The benefits that flowed from the better than anticipated container volumes in the first
quarter were offset by weak rail volumes in the Logistics business which experienced similar
market conditions to Pacific National Rail’s intermodal business.
The division is currently focused on the redevelopment of our container terminal at Port
Botany in Sydney including the development of the land adjacent to the existing terminal
called the “knuckle” and the automation of the site. This project is on schedule and on
budget, and we continue to expect to go live with the automated site in the middle of 2014.
**Slide 19 – Bulk and Automotive Port Services
Finally moving to our fourth business division the Bulk and Automotive Port Services
division.
This division is expected to report further growth in earnings in FY14 although at a lower
growth rate than in FY13.
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The division has continued to benefit from the ongoing strong growth in imported car
volumes both in stevedoring and in the storage and handling areas of our business.
The division has also benefited from the contribution of 100% ownership of the C3 business
which is performing above the expectations we had at the time of the acquisition.
However, stevedoring activity levels over the quarter were impacted by lower volumes on the
Agility contract servicing the Gorgon project in Western Australia. Stevedoring activity levels
at other ports were mixed over the quarter.
The acquisition of Mountain Industries was completed at the end of October and will
contribute positively to earnings in FY14.
**Slide 20 – Medium Term Note Issue
Turning to the balance sheet, I am pleased to report that our finance team has continued to
manage our debt profile to ensure that we have access to diversified funding sources with
long term tenure to match the profile of the cashflows generated by the business.
On September 20 we settled an offering of 10 year medium term notes to the value of
GBP300m which has extended our weighted average debt maturity profile to 5.6 years1.
Naturally we had a call to make between cheaper, short term bank debt or more expensive
longer term debt that provides greater risk mitigation for the future. Whilst there was a
negative impact on our interest costs, we elected to take the safer routes of longer term debt
and remain conservative in our outlook. Our interest cover, however, remains very
respectable at over 5 times so we are confident that this was the right decision.
The proceeds from this raising will be used to reduce senior indebtedness outstanding under
Asciano’s shorter term banking facilities.
**Slide 21 – Outlook
Finally then, let me turn to the outlook for the business for the remainder of FY14.
We continue to believe that the Company is well positioned to report further growth in EBIT.
Pacific National Coal and our Bulk and Automotive Ports division are both expected to report
growth in revenue and EBIT for the full year driven by new contracts, the contribution from
recent acquisitions and underlying market growth.
Consistent with all our previous communication, however, we believe FY14 will be another
challenging year for both Pacific National Rail and our Terminals & Logistics division given
that domestic economic demand is expected to continue to be soft and consumption trends
volatile.
Overall, we continue to expect results in line with previous announcements to the market for
growth in both revenue and EBIT for the year, albeit at a slower rate of growth than we saw
in 2013.
1 As at 30 September 2013
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We continue to focus on the things that are within our control and in particular on costs and
our business improvement program, capital expenditure levels, asset efficiency, and
improving the returns on capital invested.
We will continue to focus on synergies and efficiencies across the business with a number of
new programs commenced over the last six months.
Despite the environment, we will continue to invest in our businesses to ensure that the
underlying assets are well maintained and are positioned to drive productivity and customer
service improvements and to ensure that the business is well positioned to capture both
organic and inorganic growth opportunities that we expect to emerge over the medium term.
Even with the restraints that we are imposing on ourselves in respect of capital expenditure,
by the time we finish the current capital expenditure programme we will have completely
renewed the physical assets of our business from the difficult days of under-investment in
the past, and will have assets, equipment, and premises of which our customers, our
employees, and our shareholders can be proud.
We remain comfortable with the current group structure however we will always look at
opportunities that could add value to the business and make economic sense; and as
demonstrated over the last twelve months we are prepared to make acquisitions where they
meet strict return hurdles and are accretive for shareholders.
Thank you again for your attendance today and your ongoing support as shareholders and I
will now hand you back to Malcolm for a question and answer session and the more formal
part of the meeting.
MALCOLM BROOMHEAD:
**Slide 22 – Questions**
Ladies and Gentlemen, before we move to the formal items of business to be considered at
today’s meeting, you will now have the opportunity to ask questions or make comments of a
general nature. I would ask that you hold any questions specifically related to the
Remuneration Report until we deal with that item when they will be addressed by Mr Barlow,
the Chairman of the Remuneration Committee.
I would like to ask shareholders present today to remember that this is a meeting for all
shareholders. If any shareholder has a question relating to their personal circumstances, this
can be raised with the Company and Computershare representatives present in the
registration area after the meeting.
For those present who are eligible to and who wish to ask a question, please move to one of
the microphones which are located in the room. I ask that you show your handset or your red
card to the microphone attendant and give them your name. If we can’t answer your
question in full today we will work to provide you with a response after the meeting. Please
limit yourself to one question at a time.
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<Questions from the audience>
Ladies and Gentlemen, I will now turn to the formal business of the meeting.
**Slide 23 – Formal Business of the Meeting**
There are 4 items of business before this meeting today.
In order to ensure that the views of all shareholders are taken into account I will declare a
poll on all items of business before the meeting where a vote is required. I will declare each
poll to be open individually following discussion of that item. Voting on the poll for each
motion will remain open until voting has been completed on that resolution. I will show a
slide for each resolution which shows the proxy position with respect to that resolution and I
will also declare the manner in which I intend to vote undirected proxies. I will then show the
interim result of the poll for that resolution once voting has been completed.
**Slide 24 – Computershare instruction**
When you registered for the meeting you would have been given a white plastic smartcard. If
you have not already done so, please insert your card into the slot at the top of the handset
with the barcode at the bottom and facing towards you.
When inserted correctly a welcome message will appear briefly on screen. Then you will be
returned to the holding screen where your name will now appear at the top of the display.
Once voting begins, your voting options will appear on the handset screen. To vote FOR the
resolution, press 1; to vote AGAINST, press 2 or if you wish to ABSTAIN from voting, press
3.
The word ‘received’ will appear briefly on screen confirming your vote has been cast.
You will then be returned to the voting options, the vote you selected will now be indicated
by a cross.
If you wish to change your mind simply select a new option by pressing 1,2 or 3. Your
original vote will be cancelled and your new selection will be counted.
Any appointed proxies should vote in the same method, that is to press 1,2 or 3. This will
cast any open votes you have available; instructions given to you by the shareholder will
automatically be cast as directed when the poll is closed.
Once a poll is closed the results will be displayed on screen showing the combination of
votes cast in the room and proxies received prior to the meeting. If any shareholder has a
query regarding the voting process or use of the handsets, please raise your hand and a
Computershare representative will come and assist you.
The results of the poll will be available immediately after voting on that resolution is
completed and will also be announced on the ASX and on the Company’s website following
the conclusion of the meeting.
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I appoint Scott Hudson of Computershare Investor Services as the Independent Returning
Officer.
The persons entitled to vote on this poll are all shareholders, representatives and attorneys
of shareholders, and proxyholders. All persons entitled to vote will be provided with a
handset.
Before we proceed with the formal business, as you would probably be aware, the laws that
apply to voting on resolutions relating to the remuneration of key management personnel
changed last year. In general, the Company’s key management personnel (which includes
the directors and those executives who are disclosed in the Remuneration Report) as well as
their closely related parties are prohibited from voting any undirected proxies on such
resolutions. There are also some specific rules regarding the Remuneration Report
resolution which I will mention when we get to that Item of Business.
If there is any person present who believes they are entitled to vote but have not registered
to vote, would you please raise your hand and a member of Computershare’s staff will assist
you.
If you require any assistance throughout the meeting, Asciano and Computershare staff are
here to assist you.
**Slide 25 - Formal Business**
I turn now to the first Item of Business on the agenda, the consideration of the Financial
Statements and Reports for the Company. The Corporations Act requires the Board to lay
the Financial Report, the Director’s Report and the Auditor’s Report for the last financial year
before the Annual General Meeting. The Corporations Act does not however require a vote
of shareholders on this resolution.
**Slide 26- Financial Statements**
I now turn to the floor and ask for any other questions from those present concerning the
Company reports.
[Questions from the floor on the Accounts]
If there are no further questions I declare that the reports have been received and
considered at the meeting.
In accordance with the Notice of Meeting I now move onto Item 2, adoption of the
Company’s Remuneration Report for the financial year ended 30 June 2013. I note that,
while the vote on this item is advisory only and does not bind the Company or its directors,
the Board and Remuneration Committee certainly takes into consideration the feedback we
receive from shareholders.
I would like to introduce Mr Chris Barlow, the Chairman of our Remuneration Committee.
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Chris will take a few minutes to provide you with a brief summary of the approach we have
taken to our Remuneration arrangements and Remuneration Report this year.
CHRIS BARLOW:
**Slide 27 – Chairman of Remuneration Committee Address**
Thank you Malcolm and good morning to you all.
In presenting the Asciano Remuneration Report, I would like again to reinforce how we link
our reward structure to key drivers of the business and then outline what has been achieved
by the management team in the last financial year.
As I said last year, our approach to remuneration is based on clearly linking management
reward with outcomes that matter to our shareholders.
This year, our management team has delivered a really strong performance in challenging
economic times and so as you would expect there are strong rewards for the achievement of
the goals set by the Board.
PAUSE
In the 2013 financial year, we carried out a clean sheet review of our remuneration
framework with Ernst & Young, and we considered various alternatives, but ultimately we
decided stability was best for our shareholders and management and so made no
substantial changes.
As a result we continue to use both short and long term incentive plans to reward
performance.
**Slide 28 – Short Term Incentive Plan**
Let me start with the Short Term plan.
We have maintained our balanced scorecard approach and continue to prioritise our targets
around financial performance, safety, customer and individual performance. We allocated
our targets like this.
Earnings before Interest and Tax was our measure of financial success and was weighted
at 50%. The very important safety improvements targets constituted 15%, while customer
service and individual performance goals accounted for 15% and 20% respectively of
potential STI.
There is a deferral component in this plan that requires 25% of the award to be allocated in
share rights. This helps to ensure our management team’s interests are well aligned to those
of our shareholders. In simple terms, if your shares do well so do theirs.
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**Slide 29 – Short Term Incentive Plan Results**
Now let’s look at what the Short Term Plan delivered. As you have heard; last year, despite
some challenging operating conditions, Asciano delivered excellent performance against our
set goals. You can see this reflected in the corresponding STI payments made to the
Company’s executive team.
In particular, we saw excellent performance from our Coal and Ports & General Stevedoring
divisions which have delivered particularly strong rewards for both David Irwin and Philip
Tonks. For David, this includes the additional retention incentive we put in place two years
ago, in part responding to investor feedback regarding the importance of maintaining him in
the role, heading our newest and rapidly expanding business.
We are pleased to see that he has achieved the targets set against this additional incentive.
**Slide 30 – Long Term Incentive Plan**
Turning now to our long term incentive scheme which is designed to align our executive’s
interests with those of our shareholders.
In 2013, we maintained a consistent approach to our plan using two measures, Return on
Capital Employed and Relative Total Shareholder Return
With the vesting of our FY10 LTI Plan we are now seeing our strong performance start to
deliver some value for our management team. Of course this value is linked to share price,
demonstrating again the alignment between our reward process and shareholder value.
**Slide 31 – **Senior Executive Take Home Pay FY13**
As John Mullen has indicated, next year we believe will be a tough year and demonstrating
constraint in relation to pay is essential. The CEO, CFO and the Board are leading by
example and having no salary increases in FY14. In addition the average increases across
our Key Management Personnel will only be 1.8%.
**Slide 32 – FY14 Remuneration Structure **
The remuneration structure introduced in the 2012 financial year has proven particularly
effective in aligning our executive reward with Asciano’s achievements. The correlation
between the company’s strong performance and the higher rewards to management from
their at risk pay component is clear for all to see.
We will continue to focus on driving and rewarding executive performance to deliver the
Company’s strategy and business objectives and ultimately the growth in wealth of its
shareholders.
I will take it that you have all read the detailed information included in our Remuneration
Report and I hope this demonstrates our commitment to being open and transparent in our
Remuneration policy and outcomes.
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**Slide 33 - Questions from the floor on the Remuneration Report**
Thank you for your attention. I will be happy to take any questions you may have.
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In the event of an emergency, please take your
instructions from the venue wardens who will guide you
to an evacuation point.
Emergency Evacuation Procedures
2013 Annual General Meeting 2
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• 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 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.
Disclaimer
2013 Annual General Meeting 4
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AGENDA
FORMAL BUSINESS
1. Chairman’s address
2. CEO’s address
3. Outlook
4. Questions
5. Formal business of the meeting
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• Performance – Strong revenue and earnings growth
– Underlying revenue up 10.6% to $3.6 billion
– Underlying NPAT up 39.2% to $348.1 million
– Full year dividend fully franked 11.5 cents per share
• Customer – New state-of-the-art maintenance facilities
– Port Botany redevelopment project
– Development of customer centric culture
• Safety – 20.5% improvement in RIFR
– 32.3% improvement in LTIFR
• People & Teamwork – Focus on improving leadership capability and employee engagement
Year in Review
2013 Annual General Meeting 7
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• Inaugural sustainability report launched
• Greater transparency on economic, environment and
social performance
• Development of broader sustainability program
Sustainability
2013 Annual General Meeting 8
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• Board committed to delivering shareholder value
• Stability in leadership at Board level
• Re-election of Peter George as Non-Executive
Director: – Board member since 2007
– Chair of Asciano’s Audit and Risk Committee 2007-2012
– Member of Nomination and Succession Planning Committee and
Sustainability Committee and remains a member of the Audit and
Risk Committee.
Board Matters and Corporate Governance
2013 Annual General Meeting 9
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• Asciano barometer of productivity of Australia’s supply chain
• Board committed to elevating the efficiency and productivity of our
operations
• Over-regulated industrial relations environment
• Importance of general regulatory reform
• Maintenance of strong competition policy
Business Environment
2013 Annual General Meeting 10
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• Performance linked to strength of Australia’s economy
• Diversity of business activities provides buffer against weak
economic backdrop
• Focus on business improvement and efficiency initiatives
• Customer service and safety operational priorities
Outlook
2013 Annual General Meeting 11
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Strong result in 2013 with continued progress across most metrics
2013 Highlights
2013 Annual General Meeting 13
Financial Operational
• Underlying Revenue up 10.6%¹,² • Business diversification proving valuable
• EBIT up 12.5%¹ • Strong improvements in service performance
• Underlying NPAT & EPS up by 39.1%¹ • Rail, Coal, BAPS returns at or above WACC
• ROCE up to 11.0% • Terminals well above WACC ex goodwill
• BIP $45.7m cost reduction v target $25m • New contract wins – no major losses
• Capex 30% lower than plan • Major EA negotiations complete
• Operating cashflow up 11.3% to $988m • 32.3% improvement in LTIFR
• Free cashflow positive pre acquisitions • Continued investment in asset renewal
• 56.3% increase in final dividend on pcp • Tough conditions in Rail & Terminals
1. Pre material items
2. Net of Coal access For
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Asciano is tracking well against most metrics in a difficult environment
Five Year Objectives - Growth
Status Against Key Five Year Objectives
2013 Annual General Meeting 14
Target Objective Status Comment
Revenue Growth
5 year CAGR of 10%
• Coal volumes strong but pipeline slowing – expect 10 to
13% growth, net of access over the 5 years
• Rail on track historically but market very weak at present
• Terminals slow in 2013 but some signs of growth in 2014
• BAPS to continue strongly albeit slower than FY13
Operating Cost
5 year CAGR of 8%
• High fixed cost business impacts outcome in weak
volume environment
• Low growth divisions delivering lower or flat costs v pcp
Business Improvement Programme
$150m over 5 years to FY16 • Expected to exceed expectations
EBIT Growth
5 year CAGR of 15%
• Tracking between 10-15% 5 year CAGR to FY16 in a
very weak trading environment. Well positioned to benefit
from any cyclical economic upswing For
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Asciano is tracking well against most metrics in a difficult environment
Five Year Objectives – Returns
Status Against Key Five Year Objectives
Five Year Objectives – Business Performance
2013 Annual General Meeting 15
Committed Target Objective Status Comment
ROCE ; Group WACC by 2015
2-3% premium to WACC by 2017
On track to achieve targets
FCF positive by 2015 Ahead of original target given lower capital expenditure profile
Increased returns to shareholders On track – dividend increased by 25% in 2012 and 53% in 2013
Committed Target Objective Status Comment
A quality management team Strong team in place
Culture change Focus on customer advocacy, employee engagement, diversity
Safety Rapid improvement in metrics still significant potential For
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Growth driven by new contracts and strong volume growth across all regions
Update – Pacific National Coal
2013 Annual General Meeting 16
Net tonne kilometres increased 32.7% compared to the pcp reflecting a full period impact
from new contracts commenced over the last twelve months and strong organic growth in
volumes in all regions
Tonnes hauled versus contracted across the two regions for the quarter improved
significantly to 86.7% from 79.7% in the pcp
Expect strong volumes to continue through the second quarter benefiting from the
commencement in November 2013 of a new 8.5m tonne contract with Rio Tinto Coal
Australia
3 Months ended: Sept. ‘12 Sept. ‘13 %Chg
Net Tonne Kms (m) 5,330 7,071 32.7
Tonnes (m) 32.7 38.1 16.5
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Weak Intermodal and lower export grain volumes drive soft quarter
Update – Pacific National Rail
Intermodal NTKs declined 2.6% for the quarter over the pcp reflecting softer volumes on
the east-west corridor, offset to an extent by higher steel and north-south volume
Volumes remain tied to domestic economic activity, in particular activity in Western
Australia
Bulk Rail NTKs declined 18.7% for the quarter on the pcp primarily reflecting a 52%
decline in export grain tonnes over the quarter versus the pcp
Export grain volumes lower in 1H FY14. Volumes are expected to recover 2H FY14 driven
by forecasted above average grain harvests in Victoria and southern New South Wales,
combined with new export grain services
Recent new contracts in intermodal and bulk improve FY14 EBIT forecast to
approximately 5% below the pcp
2013 Annual General Meeting 17
3 Months ended: Sept. ‘12 Sept. ‘13 %Chg
PN Intermodal NTKs (m) 5,790 5,638 -2.6
Bulk Rail NTKs (m) 1,573 1,279 -18.7
Total PN Rail NTKs (m) 7,363 6,917 -6.1
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Growth driven by underlying market growth of 2-3% and share gains
Update – Terminals and Logistics
2013 Annual General Meeting 18
3 Months ended: Sept. ‘12 Sept. ‘13 %Chg
Container Lifts (‘000) 494 525 6.3
Container lifts increased 6.3% for the quarter driven by market share gains and underlying
market growth of 2-3%
All four terminals reported positive volume growth for the quarter with high single digit
growth at Port Botany and Fisherman Islands
Market share for the three month period is estimated to have been approximately 49%
Present indications are that peak season container volumes across the market will be
below peak FY13 levels. Asciano continues to expect container market growth in FY14 to
be 1-2%
Service performance has hit all-time highs with 97% on-time coastal window performance
reported for the quarter. Labour productivity likewise continues to improve
The focus of the Division is on the development of the “knuckle”, the automation of the
Port Botany terminal, improved employee relations, and enhanced customer service
delivery
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Solid growth driven by higher imported car volumes and general stevedoring
Update – Bulk and Automotive Port Services
Further growth in automotive activity levels compared to the pcp. Vehicle storage days are
expected to reduce in the second quarter of FY14 as manufacturers run down historically
high levels. Car stevedoring remained strong for the period
Stevedoring service activity levels over the quarter were impacted by lower volumes on the
Agility (Gorgon) contract. Activity levels were mixed across other ports
The C3 business continues to perform well and in line with expectations at the time of the
acquisition of the outstanding 50% in November 2012
The acquisition of Mountain Industries was completed at the end of October and is
expected to contribute positively to FY14 earnings
2013 Annual General Meeting 19
3 Months ended: Sept. ‘12 Sept. ‘13 %Chg
Vehicle Movements (‘000) 259 280 8.1
Vehicle Storage Days (‘000) 3,796 5,590 47.3
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Issue extends tenure and further diversifies funding sources.
Medium Term Note Issue
$’m
FY24 FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 FY15
380
FY14
US$ 144a Reg S Bonds
Drawn bank facilities as at 30 September 2013
Undrawn bank facilities as at 30 September 2013
GBP Medium Term Note Program
429
728
643
243
514
650
270
In September 2013 Asciano settled an offering of 10 year medium term notes to the value of
GBP300m (A$514m). The notes were issued at an all in rate swapped back to Australian dollars of
7.9%
The issue extended Asciano’s weighted average debt maturity to 5.6 years
Proceeds will be used to reduce senior indebtedness outstanding under Asciano’s bank facilities
1. As at 30 September 2013
2013 Annual General Meeting 20
380
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Outlook
2013 Annual General Meeting 21
Further growth in EBIT in FY14 expected despite soft domestic
economic conditions
• Difficult market conditions to continue but Asciano still forecasting earnings growth in FY14
– PN Rail market growth -4% to 0%, FY14 EBIT now expected to be approximately 5% below pcp
– Terminals & Logistics market growth 1-2% with the Division benefiting from swing in market share
– Coal revenues to benefit from strong market growth and contribution from new contracts
– BAPS growth to continue albeit at slower rate than 2013 but boosted by C3 and Mountain Industries
– Further growth in EBIT overall, but growth rate lower than FY13
• Increased focus on cost control, business and asset efficiency, and improved returns
– Despite lower top line growth, on track to deliver our ROCE targets
– Continuing to drive towards improved shareholder payouts and TSR growth
• Focus on working with our customers to innovate and adapt our service offerings
– Multiple programs to improve service performance and the competitive position of the Company
• Continue to develop currently expanding synergies across the Group
– Further supply chain integration of existing divisions
• Continue to generate value through acquisitions, partnerships and joint ventures
– Acquisition of C3 and Mountain Industries adding significant value
– Additional opportunities being sought
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Casting your vote
• Ensure that the smart card is inserted and
that the handset displays a welcome
message.
• When the poll opens, the handset will
display the voting options, being;
– 1 to vote FOR the resolution
– 2 to vote AGAINST the resolution
– 3 to ABSTAIN your vote
• Press the appropriate button on the handset
to register your intentions
How to Vote
2013 Annual General Meeting 24
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“To receive and consider the consolidated Financial Report of the Company as well as the reports of the Directors and the Auditors for the financial year ended 30 June 2013.”
FINANCIAL
STATEMENTS AND
REPORTS
ITEM
1
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Short Term Incentive Plan
Asciano FY13 Short Term Incentive Plan Measures
EBIT 50% 90% of target must be achieved before
any payment. Overachievement is
uncapped.
SAFETY 15% Threshold must be achieved for 10%
payment. Target 15% payment. Stretch
22.5% payment . (Progressive payment
between Threshold and Stretch.)
CUSTOMER
SATISFACTION
15% Threshold must be achieved for any
payment. Maximum payment is 15%
PERSONAL GOALS 20% Each goal weighted. Maximum payment
is 20%.
2013 Annual General Meeting 28
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Short Term Incentive Results
Division
EBIT
(50%
weighting)
Safety
(15% weighting)
Customer
(15%
weighting)
Personal
Goals
(20%
weighting)
STI
Outcome
PN Coal 55% 12% (above Threshold) 15% (Target) 20% (Target) 102%
PN Rail 47% 0% (Not Met) 10%
(Threshold) 20% (Target) 77%
Terminals &
Logistics 44%
16% (above Target)
15% (Target) 20% (Target) 95%
Ports &
General
Stevedoring
130% 18% (above Target) 0% (below
Threshold) 20% (Target) 168%
Asciano
Group
49%
16%
(above Target)
13% (above
Threshold )
20% (Target)
98%
2013 Annual General Meeting 29
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Long Term Incentive Plan
FY13 OFFER
1 July 2012 – 30 June 2015
50%: Relative TSR Less than 50th percentile 0% vesting
Equal to 50th percentile 50% vesting
Between the 50th and 75th
percentile
An additional 2% of Rights will
vesting for each 1 percentile increase
above the 50th percentile
Equal to the 75th
percentile or above
100% vesting
50%: ROCE Less than Threshold
ROCE
0% vesting
Threshold ROCE 50% vesting
Between Threshold and
Target ROCE
Awards vest progressively. An
additional 2% of Rights vest for each
1 percentile increase above the 50th
percentile
ROCE target 100% vesting
2013 Annual General Meeting 30
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Senior Executive Take-Home Pay FY13
Fix
ed
An
nu
al
Rem
un
era
tion
Sh
ort T
erm
Incen
tive
FY
13 C
ash
paid
in O
ct (7
5%
)
an
d d
efe
rral
veste
d fro
m
FY
12 (1
2.5
%)
Veste
d L
on
g
Term
Incen
tive
Oth
er In
cen
tive
(Rete
ntio
n P
lan
& C
FO
sig
n o
n)
To
tal
Take H
om
e P
ay
– C
ash
Co
mp
on
en
t
Perfo
rman
ce
Rela
ted
Rem
un
era
tion
CEO
John Mullen
1,895,647
1,573,597
-
-
3,469,244
3,469,244
45%
CFO
Roger Burrows
KMP since 18 Feb 2013
297,035 294,300 - - 591,335 591,335 50%
Director
Terminals & Logistics
Alistair Field
627,023 244,016 - - 871,039 871,039 28%
Director PN Coal
David Irwin
683,417
609,295
84,575
79,892
1,457,149
1,292,712
53%
Director PN Rail
& CFO
Angus McKay
904,543
415,216
-
217,196
1,536,955
1,319,759
41%
Director
Ports & General Stevedoring
Philip Tonks
KMP since 1 Jan 2013
265,203 166,950 84,575 - 516,728 432,153 49%
2013 Annual General Meeting 31
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FY14 Remuneration Structure
LTI (c)
FAR (a)
Total remuneration a + b + c
FAR (a)
FY14 Construct
Total remuneration a + b + c
STI Deferral (b*25%)
STI Cash (b*75%)
LTI (c)
No change
No change
No change
FY13 Construct
STI MEASURES (No change)
EBIT
Safety
Customer
Personal Objectives
STI Deferral (b*25%)
STI Cash (b*75%)
2013 Annual General Meeting 32
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REMUNERATION
REPORT
“To adopt the remuneration report for the financial year ended 30 June 2013.”
ITEM
2
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“To consider and , if thought fit, pass the following resolution as an ordinary resolution: That Mr Peter George, who retires under Article 9.2(a) of the Company’s constitution and, being eligible, offers himself for election, be re-elected as a Director of the Company.”
RE-ELECTION OF
DIRECTOR
ITEM
3
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“To consider and , if thought fit, pass the following
resolution as an ordinary resolution:
That approval be given for the grant of a maximum of
473, 348 rights to acquire shares in the Company to the
Managing Director and Chief Executive Officer, Mr John
Mullen, in accordance with the rules of the Asciano Limited
Long Term Incentive Plan and that approval be given for
the purposes of sections 200B and 200E of the
Corporations Act 2001 for the giving of benefits to Mr John
Mullen under the Plan, on the terms summarised in the
Explanatory Notes.”
GRANT OF RIGHTS TO
CHIEF EXECUTIVE
OFFICER
– 2014 FINANCIAL YEAR
ITEM
4
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