Atlas Arteria · ASX:ALX
Atlas Arteria — Macquarie Atlas Roads — H1 2017 Earnings Presentation
36 slides from Atlas Arteria's earnings presentation, Aug 31, 2017
Slide 1: Macquarie Atlas Roads 2017 Half Year Results Presentation
Macquarie Atlas Roads 2017 Half Year Results Presentation 31 August 2017
Slide 2: Important notice and disclaimer
Important notice and disclaimer Disclaimer Macquarie Atlas Roads (MQA) comprises Macquarie Atlas Roads Limited (ACN 141 075 201) (MARL) and Macquarie Atlas Roads International Limited (Registration No. 43828) (MARIL). Macquarie Fund Advisers Pty Limited (ACN 127 735 960) (AFSL 318 123) (MFA) is the
Slide 3: Important notice and disclaimer
Important notice and disclaimer Japan These materials have been prepared solely for qualified institutional investors in Japan as defined under the Financial Instruments and Exchange Act of Japan (FIEA). They do not constitute an offer of securities for sale in Japan and no registration statement ha
Slide 4: Contents
Contents Overview 01 4 Peter Trent, Chief Executive Officer Financial Performance 02 9 Mark Goodrick, Chief Financial Officer Asset Review 03 14 Peter Trent, Chief Executive Officer
Slide 5: Overview
1 Overview Peter Trent Chief Executive Officer
Slide 6: 1H17 snapshot
1H17 snapshot MQA’s portfolio delivered continued growth in 1H171 Traffic Revenue EBITDA 2.6% 3.6% 4.9% Statutory Results 1H17 profit from operations: A$437.6m2 (1H16: A$54.2m) 1H17 Portfolio Growth in traffic, revenue and EBITDA across all portfolio assets during 1H17 Highlights Further portf
Slide 7: 1H17 portfolio asset results
1H17 portfolio asset results Growth in traffic, revenue and EBITDA across all assets during 1H171 APRR ADELAC Dulles Greenway Warnow 8.7% 4.9% 6.0% 4.4% 4.3% 3.5% 3.6% 3.5% 2.7% 3.0% 2.7% 1.2% Traffic Revenue EBITDA Traffic Revenue EBITDA Traffic Revenue EBITDA Traffic Revenue EBITDA Continued lig
Slide 8: Portfolio focus
Portfolio focus Continuing to generate long term value for MQA securityholders Providing investors with access to long-dated, predictable and growing cash flows MQA Portfolio Recent focus on delivering growth from within existing portfolio ̶ Consolidation of existing portfolio ownership Warnow A
Slide 9: Disciplined capital management
Disciplined capital management MQA’s portfolio is substantially protected from interest rate movements • Prudent and disciplined approach to portfolio capital management ̶ 6.7x pro-forma proportionate net debt / EBITDA1; significant reduction over last five years ̶ All asset borrowings have no recou
Slide 10: Financial Performance
2 Financial Performance Mark Goodrick Chief Financial Officer
Slide 11: Consolidated income statement
Consolidated income statement Statutory accounts 6 months ended 6 months ended 30 June 2017 30 June 2016 MQA Dulles MQA MQA A$m Corporate Greenway7 Total Total Total revenue and other income 391.71 17.4 409.0 3.1 Share of net profits of associates 81.72 - 81.7 210.83 Performance fees (8.0)4 - (8.0)
Slide 12: Consolidated balance sheet
Consolidated balance sheet Statutory accounts As at As at 30 June 2017 30 June 2016 MQA Dulles MQA MQA A$m Corporate Greenway4 Total Total Current assets 56.81 66.5 123.3 224.2 Investments in associates 737.6 - 737.6 950.9 Tolling concessions - 2,254.1 2,254.1 - Goodwill - 59.7 59.7 - Other non-curr
Slide 13: MQA corporate cash flow summary
MQA corporate cash flow summary Available cash (A$m) 1H17 1H16 Opening balance – 1 January 223.4 65.4 1. Distribution from Financière Eiffarie (FE) of €54.8m in March 2017 (1H16: €42.2m). Proceeds from Chicago Skyway sale - 137.3 Distribution from APRR1 77.1 62.7 2. Received a final management fee o
Slide 14: MQA distributions
MQA distributions 2H17 distribution guidance of 10.0 cps confirmed MQA Distributions (cps) 22.5 • Expect to declare mid September 2017 with payment by September end 20.0 18.0 • Wholly from MARIL, anticipated to comprise solely of a foreign dividend1 16.0 with no capital return component 13.2 10.0 FY
Slide 15: Asset Review
3 Asset Review Peter Trent Chief Executive Officer
Slide 16: APRR 1H17 results
APRR 1H17 results1 Traffic Revenue EBITDA 2.7% 3.5% 4.9% 11.2bn VKT €1,156.0m €871.8m2 Traffic performance driven by Revenue growth attributable to Continued EBITDA growth continued light and strong heavy a combination of increased traffic driven by strong revenue vehicle growth levels, better
Slide 17: APRR French economy
APRR French economy Improving French economy continues to support light and heavy vehicle traffic growth Household Disposable Income and Light Vehicle Traffic1 Import, Manufacturing and Heavy Vehicle traffic1 115 130 110 120 105 110 100 100 95 90 90 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 20
Slide 18: APRR resilient earnings through economic cycles
APRR French economy Resilient earnings demonstrated through economic cycles €m APRR EBITDA1 and France GDP growth2 1,750 6.0% 1,685 1,500 1,589 1,520 4.0% 1,475 1,428 1,250 2.0% 1,000 0.0% 750 1,399 1,265 1,326 1,208 1,244 (2.0%) 500 1,068 924 9413 974 1H 1H 841 888 1H 1H 1H 1H 831 872 730 791 694 7
Slide 19: APRR financial performance
APRR Financial performance Stable revenue growth with ongoing disciplined cost management Financial Performance (€m) Operational Update 1,600 74.9% 74.4% 75.4% 80.0% 70.6% 70.4% 71.0% Optimisation of toll collection through increased use of 1,400 70.0% automated transactions: 1,200 1,116.4 1,156.0
Slide 20: APRR ongoing network investment
APRR Ongoing network investment APRR continues to focus on growing and improving its existing network Capex Projects Current Investment Projects Underway 2014-2018 Management Contract 2015 Stimulus Package E) A6 1) RCEA widening, interchange Auxerre near Mâcon FRANCE 2) A36 Sévenans 5) RCEA intercha
Slide 21: APRR debt profile
APRR Debt profile Sustainable debt maturity profile with strong liquidity position • APRR investment grade credit rated by S&P (A- Stable Outlook) and Fitch (BBB+ Positive Outlook) • APRR/Eiffarie Net Debt balance of €8.5 billion as at 30 June 2017; representing 5.0x Net Debt / EBITDA €m APRR/Eiffar
Slide 22: APRR financing costs
APRR Financing costs Further interest saving opportunities remain over the medium term Opportunity to replace maturing APRR debt with lower-cost APRR/Eiffarie Cost of Debt2,3 facilities through 20191 ̶ APRR 1H17 net interest decreased €26 million, or 21%, on 1H16 APRR Fixed Eiffarie (maturing pre-
Slide 23: Dulles Greenway 1H17 results
Dulles Greenway 1H17 results1 Traffic Revenue EBITDA 1.2% 3.6% 4.4% 53,392 ADT US$46.7m US$37.8m Continuing growth in regional Revenue growth attributable to EBITDA performance primarily economic activity, population and higher traffic volumes and higher driven by revenue growth employment ave
Slide 24: Dulles Greenway traffic segmentation
Dulles Greenway Traffic segmentation Non-workday traffic reflective of continued demand for leisure and convenience travel. Overall traffic to be impacted by competing network improvements 110 Dulles Greenway Traffic Segmentation1 108 106 104 102 100 98 96 1H17 traffic performance vs pcp • Workday:
Slide 25: Dulles Greenway financial performance
Dulles Greenway Financial performance Consistent growth in EBITDA driven by increase in revenue and operating efficiencies Financial Performance (US$m) Operational Update 80.4% 81.0% 60 79.9% 77.9% 78.1% 78.1% 80.0% Disciplined cost management continued to drive EBITDA margin improvement 50 46.7 4
Slide 26: Dulles Greenway corridor development
Dulles Greenway Corridor development Well positioned to provide quality service and attract greater share of future corridor growth Local network factors and ongoing corridor Dulles Greenway Corridor construction works are anticipated to create some volatility in traffic over the next 24-36 months
Slide 27: Dulles Greenway growth outlook
Dulles Greenway Growth outlook Loudoun County remains one of the fastest growing and most affluent counties in US1 Recorded highest Virginian county investment Loudoun County Investment Inflows2 US$bn levels in FY172 4.0 3.3 Second-highest 2016 employment growth rate in 3.0 Virginia3 2.3 2.0 H
Slide 28: ADELAC 1H17 results
ADELAC 1H17 results1 Financial Performance (€m) vs Traffic (ADT) Traffic Traffic performance underpinned by 29,283 3.0% 35 increased commuter 28,439 27,142 29,283 ADT usage 26,042 27,000 24,610 30 26.8 25.3 23.3 4.6 25 21.8 22,000 20.1 4.9 4.5 Revenue Performance attributed 20 4.7 4.3 17,000 6.0
Slide 29: Warnow Tunnel 1H17 results
Warnow Tunnel 1H17 results1 Financial Performance (€m) vs Traffic (ADT) Traffic Traffic growth reflective of increased tourist 11,397 2.7% 7 12,000 11,097 10,828 usage 10,536 11,397 ADT 11,000 6 10,026 10,189 5.2 10,000 5.0 5 4.7 4.4 9,000 4.0 4.2 1.5 1.5 Revenue Performance supported 8,000 1.5
Slide 30: Summary
Summary Continued focus on growing distributions and portfolio value Active asset management Disciplined capital management Financial performance Continual investment Investment opportunities Distribution growth Growth in traffic, revenue Acquisition of remaining Investing in accretive, 10.0
Slide 31: Questions
4 Questions
Slide 32: Appendix
A APPENDIX
Slide 33: Cash flow: APRR to MQA securityholders
Cash flow APRR to MQA securityholders Cash flow: APRR to MQA securityholders Eiffarie/Financière Eiffarie (FE) APRR dividend A add APRR tax instalments to FE B add Other1 C less Eiffarie net interest D less FE tax payments/provisions E Distributable cash F=A+B+C–D–E less Debt repayment G Cash availa
Slide 34: Cash flow: APRR to MQA securityholders (cont'd)
Cash flow APRR to MQA securityholders (cont’d) Cash flow: APRR to MQA securityholders Eiffarie/Financière Eiffarie (€m) (100%) 2H15 1H16 2H16 1H17 APRR dividend 245 287 6401 326 add APRR tax instalments to FE 176 183 159 217 add Other2 (0) 0 (128)3 (7) less Eiffarie net interest (87) (86) (88) (86)
Slide 35: MQA statutory accounts
MQA statutory accounts Statutory accounts for the half year ended June 2017 Statutory accounting MQA equity accounts all assets except Dulles Greenway, which is now controlled and consolidated following the acquisition of the remaining 50% estimated economic interest in May 2017 Equity accounting
Slide 36: Proportionately consolidated financial performance
Proportionately consolidated financial performance Actual Pro Forma Actual A$m 6 months ended 30 Jun 17 6 months ended 30 Jun 161 Change vs pcp 6 months ended 30 Jun 162 Proportionate revenue 387.3 373.8 3.6% 378.0 Proportionate operating expenses (92.4) (92.8) 0.4% (95.4) Proportionate EBITDA from
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