Performance targets

The performance of the output will be measured through the Output Measures noted below.

CRL Ltd’s Output Classes for the fiscal year 2022 relate to Health and Safety, Project Delivery, Funding Envelope, Sustainability and Social Outcomes, Community and Stakeholder Engagement.

DELIVER THE CITY RAIL LINK PROJECT

REVENUE ($'000) EXPENDITURE ($'000)

Deliver the Auckland City Rail Link project by 2024* 398 204,683

*Subject to determination of COVID-19 impact

STRATEGIC AREA OUTCOME PERFORMANCE TARGETS AND MEASURES

Health and Safety Build an underground rail link that is safe for constructors, operators, maintainers and users • An externally validated maturity assessment of the CRL HSE Management

System using the Risk Management Maturity Model (RM3) will achieve Level 3 (Standardised), and Level 4 (Predictable) in two or more areas by 30 June 2022 • Total Recordable Injury Frequency Rate (TRIFR) at or below seven injuries per million hours worked • Annual staff wellbeing survey completed and action plan in place • Publish an annual safety assurance summary report by 30 June 2022 reporting on safety for operations, maintenance, and users

Project Delivery Deliver a safe, operable, quality underground rail link in a timely manner • Complete C1 by December 2021 • Complete first tunnel boring machine (TBM) drive by February 2022 • Launch second TBM drive by May 2022 • Aotea Station – complete pilings and foundations works by March 2022 • Complete NAL Down Main line works by April 2022 • Complete award of C9 Britomart East works by December 2021

Funding envelope

Sustainability and Social Outcomes

Community and Stakeholder Engagement Achieve fiscal efficiency

Achieve sustainability excellence including social outcomes

Deliver a high level of communications and engagement • Meet delivery targets of approved Appropriation ($490m)** • Per the PDA, timely financial reporting of project costs on a cost to complete basis • Operate CRL Ltd’s corporate functions within the approved budget

• C1 to achieve “Excellent” Infrastructure Sustainability (IS) “as built” rating • C3 to achieve ‘’Excellent’ Infrastructure Sustainability (IS) ‘’design” rating • 95 per cent of construction demolition waste (including spoil) diverted from landfill • C3 to achieve 15 per cent reduction (versus design base-case) in embodied carbon of materials • Deliver social outcomes pilot "Progressive Employment Programme" with six rangatahi (young people) • Six Link Alliance construction contracts to be awarded to Māori and/or Pasifika small and medium sized enterprises by 30 June 2022

• Increased public participation through events (target 8) and site tours (target 25) • Build positive profile of the Project with videos (target 10), social media (target at least 5 posts a week), proactive media releases (target 25) and community newsletter (target 12) • Responsiveness (target 2 working days response to public enquiries)

*Oversite Development: whilst there is no specific target for 2021/22, development work continues, led by Kāinga Ora and Panuku Development Auckland (and supported by CRLL) on this important value creation and capture opportunity for Auckland and as a financial contributor to CRLL. The above is explained in detail in the Outcomes, Target Areas and Measures section of the Statement of Intent. With the upcoming completion of CRLL’s early works contracts (including C1) and expected award of the C9 contract we intend to update the Statement of Intent within FY2022. ** Appropriation reflects the Crown's 50% contribution to FY2022 project funding.

Forecast Financial Statements

The forecast financial statements (on pages 10-13) include a Statement of Forecast Comprehensive Revenue and Expenses, Statement of Forecast Financial Position, Statement of Forecast Changes in Equity and Statement of Forecast Cash Flows for the 2022 financial year.

CRL Ltd is funded to deliver the Project. Under the terms set out in the PDA, funding is recognised as share capital. Other funding received by CRL Ltd is by way of rental income from properties purchased to enable construction but not yet decommissioned, and interest on surplus cash balances. These items will be recorded as revenue in the Statement of Forecast Comprehensive Revenue and Expenses.

CRL Ltd incurs expenditure as part of its activities. Operating expenditure (i.e., the day-to-day running of CRL Ltd) and project expenditure (i.e., unable to be capitalised) is recorded in the Statement of Forecast Comprehensive Revenue and Expenses. This expenditure is funded by the Sponsors. Project expenditure that is capital in nature is recorded on the Statement of Forecast Financial Position as Capital Work in Progress. Assets are transferred to the shareholders as construction is completed for each asset.