Atlas Arteria · ASX:ALX
Atlas Arteria — Macquarie Atlas Roads — H1 2016 Earnings Presentation
36 slides from Atlas Arteria's earnings presentation, Aug 30, 2016
Slide 1: Macquarie Atlas Roads 2016 Half Year Results Presentation
Macquarie Atlas Roads 2016 Half Year Results Presentation 30 August 2016
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: Table of contents
Table of contents 01 Overview 4 Peter Trent, Chief Executive Officer 02 Financial Performance 7 Mark Goodrick, Chief Financial Officer 03 Asset Review 13 Peter Trent, Chief Executive Officer MACQUARIE ATLAS ROADS PAGE 3
Slide 5: Overview
1 Overview Peter Trent Chief Executive Officer MACQUARIE ATLAS ROADS
Slide 6: 1H16 snapshot
1H16 snapshot 1H16 delivered an improved performance across the portfolio1 Traffic Revenue EBITDA 4.2% 6.0% 5.9% Statutory results • 1H16 profit from operations: A$54.2m (1H15: A$40.3m) Portfolio highlights • Strong asset performance reflective of higher traffic volumes and toll increases on APRR an
Slide 7: 1H16 segmented results
1H16 segmented results Growth in traffic, revenue and EBITDA across all assets during 1H161 APRR Performance consistent with an improvement in the 4.1% French economic environment Traffic Revenue growth supported by improved traffic volumes 5.6% Revenue and mix and 2016 toll increases EBITDA E
Slide 8: Financial Performance
2 Financial Performance Mark Goodrick Chief Financial Officer MACQUARIE ATLAS ROADS
Slide 9: Consolidated income statement
Consolidated income statement Statutory accounts Income includes M6 Toll management fee, interest income and Warnow Tunnel services fees A$m 1H16 1H15 Income 3.1 1.7 Share of associates’ results includes: Share of net profits of associates 210.8 68.3 – US$103.9m receipt from Chicago Skyway (2015
Slide 10: Consolidated balance sheet
Consolidated balance sheet Statutory accounts Increase in current assets reflects cash proceeds As at As at received from Chicago Skyway sale A$m 30 Jun 16 31 Dec 15 Current assets 222.0 83.6 Investments in associates includes APRR and Dulles Greenway accounted for using the equity Investments i
Slide 11: MQA cash flow summary
MQA cash flow summary US$103.9m received following the Chicago Skyway Available cash (A$m) 1H16 1H15 sale (still held in US$) Opening balance – 1 January 65.4 30.1 Proceeds from Chicago Skyway sale 137.3 - Distribution from Financière Eiffarie (FE) of €42.2m in March 2016 Distribution from APRR
Slide 12: Management fee waiver
Management fee waiver Commencing 1 July 2016, base management fees payable by MQA were reduced to a flat 1.00% per annum for all market capitalisations Fee waiver to remain in effect until further notice by Macquarie Contract: Management and Revised Arrangement: Base Market Capitalisation Adviso
Slide 13: MQA distributions
MQA distributions 2H16 distribution guidance of 9.0 cps confirmed MQA Distributions (cps) Expect to declare mid September 2016 with payment by September end Paid Guidance Wholly from MARIL, anticipated to include foreign dividend and capital 20.0 9.0 return components1 16.0 13.2 FY17 distributio
Slide 14: Asset Review
3 Asset Review Peter Trent Chief Executive Officer MACQUARIE ATLAS ROADS
Slide 15: APRR 1H16 results
APRR 1H16 results Traffic Revenue EBITDA 4.1% 5.6% 5.1% 10.9bn VKT €1,116.4m €831.1m1 Continued traffic growth across Revenue growth underpinned by Ongoing disciplined cost light and heavy vehicles a combination of improved traffic management Benefited from the leap year and performance, bet
Slide 16: APRR traffic analysis
APRR Traffic analysis Growth momentum continued across both light and heavy vehicle traffic Light Vehicles1 Heavy Vehicles1 Total Vehicles1 6.0% 6.0% 6.0% 6.0% 5.0% 5.0% 5.0% 4.1% 4.0% 4.0% 4.0% 3.7% 3.0% 3.0% 3.0% 2.0% 2.0% 2.0% 1.0% 1.0% 1.0% - - - 2H13 1H14 2H14 1H15 2H15 1H16 2H13 1H14 2H14 1H15
Slide 17: APRR traffic correlation
APRR Traffic correlation Light vehicle traffic remains correlated to real household disposable income Heavy vehicle traffic remains correlated to French manufacturing and imports APRR Light Vehicles and Economic Indicators1,2 APRR Heavy Vehicles and Economic Indicators1,2 115 115 110 110 105 105 100
Slide 18: APRR French lending environment
APRR French lending environment Continued lending growth to non-financial corporations implies further expansion of business activity Loans to Non-Financial Corporations (Annual Growth Rate)1 5.9% 4.9% 3.9% 2.9% 1.9% 0.9% (0.1%) Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 1. Sourc
Slide 19: APRR earnings
APRR Earnings Resilient earnings demonstrated through economic cycles €m APRR EBITDA1 and France GDP growth2 1,750 6.0% 1,589 1,520 1,475 1,500 1,399 1,428 4.0% 1,326 1,244 1,265 1,208 1,250 2.0% 1,000 0.0% 750 1,068 (2.0%) 500 888 924 9413 974 841 1H 1H 791 831 (4.0%) 250 0 (6.0%) 2001 2002 2003 20
Slide 20: APRR financial performance
APRR Financial performance Stable revenue growth with ongoing disciplined cost management Operating costs (excluding operating taxes and infrastructure payment) remained flat 1H16 EBITDA margin of 74.4% includes the full 2016 annual infrastructure payment of €15.8m – Normalised EBITDA margin of
Slide 21: APRR network investment
APRR Network investment Continued focus on growing and improving the existing network Network Investment Current Investment Projects Underway 2014-2018 Management Contract Stimulus Package 1) RCEA FRANCE interchange near Mâcon Start: 2016 Finish: 2019 2) A36 Sévenans 2 interchange Ongoing investme
Slide 22: APRR operations
APRR Operations Active management delivering improved operations in 1H16 Leveraging Technology Environmental Investment People and Safety 97% automated transactions in Committed to invest €50m in Over 20 million users annually 1H16 (96% in 1H15) green transportation infrastructure in France
Slide 23: APRR financing costs
APRR Financing costs Further interest saving opportunities remain over the medium term APRR interest expense decreased €29m in 1H16, down 19% from pcp €700m bond issued June 2016 at 99.201% of par with a coupon of 1.125%, 2026 maturity Sustainable debt maturity profile with strong liquidity po
Slide 24: Dulles Greenway 1H16 results
Dulles Greenway 1H16 results Traffic Revenue EBITDA 6.1% 10.0% 13.7% 52,764 ADT US$45.1m US$36.0m Workday peak and non-peak Revenue growth attributable to EBITDA performance primarily traffic benefited from regional higher traffic volumes and higher driven by revenue growth; economic expansion
Slide 25: Dulles Greenway traffic analysis
Dulles Greenway Traffic analysis Strong workday growth across peak and off-peak traffic Continued growth in peak traffic indicative of increased commuter usage Non-workday traffic continues to grow, reflecting increased leisure and convenience travel Dulles Greenway Traffic Segmentation1 108 6 m
Slide 26: Dulles Greenway financial performance
Dulles Greenway Financial performance Consistent growth in EBITDA 2016 toll increases implemented on 23 February 2016 Supreme Court appeal decision on toll regulation expected in 2H161 Positive cash flow generating; no distributions anticipated before 2019 US$m EBITDA Performance vs Traffic AD
Slide 27: Dulles Greenway operations
Dulles Greenway Operations Continued focus on operational efficiency and user experience Network Investment Operational Efficiency People and Community Major resurfacing at western end 93% non-cash transactions in Annual Drive for Charity (from Goose Creek to Leesburg 1H16 (92% in 1H15) campai
Slide 28: Dulles Greenway growth outlook
Dulles Greenway Growth outlook Loudoun County remains one of the fastest growing and most affluent counties in US1 Loudoun County recorded the highest investment levels by any Virginian county in FY162 Loudoun County’s total employment grew 6.3% in 2015, the third-fastest rate in US3 Employmen
Slide 29: Warnow Tunnel 1H16 results
Warnow Tunnel 1H16 results Financial Performance (€m) vs Traffic (ADT) Traffic Traffic growth for 1H16 2.5% reflective of increased 7 11,097 12,000 10,828 tourist usage 10,536 11,000 11,097 ADT 6 10,026 10,189 10,000 5.0 5 4.7 4.4 9,000 4.0 4.2 1.5 Revenue 8,000 Performance supported 4 1.3 1.5 1
Slide 30: Summary
Summary MQA continues to successfully deliver on its strategy to increase returns to securityholders STRATEGY TO GROW DISTRIBUTIONS AND ENHANCE PORTFOLIO VALUE Asset Strengthening Growing Investment performance1 balance sheet distributions outlook • Primary focus to support • Retained asset-level ca
Slide 31: Questions
4 Questions MACQUARIE ATLAS ROADS
Slide 32: Appendix
A Appendix MACQUARIE ATLAS ROADS
Slide 33: Cash flow: APRR to MQA security holders
Cash flow: APRR to MQA security holders Cash flow: APRR to MQA security holders 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 ava
Slide 34: Cash flow: APRR to MQA security holders (cont'd)
Cash flow: APRR to MQA security holders (cont’d) Cash flow: APRR to MQA security holders Eiffarie/Financière Eiffarie (€m) 2H14 1H15 2H15 1H16 APRR dividend 209 180 245 287 add APRR tax instalments to FE 147 181 176 183 add Other1 (1) 412 (0) 0 less Eiffarie net interest (120) (93) (87) (86) less FE
Slide 35: MQA statutory accounts
MQA statutory accounts Statutory accounts for the half year ended June 2016 Statutory accounting MQA equity accounts all assets All assets are non-controlled assets Equity accounting Initially recognise assets at acquisition value1 P&L Account: recognise share of accounting profits/losses fr
Slide 36: Proportionately consolidated financial performance
Proportionately consolidated financial performance Actual Pro Forma Actual 6 months ended 6 months ended Change vs 6 months ended A$m 30 Jun 16 30 Jun 151 pcp 30 Jun 152 Proportionate revenue 378.0 356.6 6.0% 347.0 Proportionate operating expenses (95.4) (89.6) (6.5%) (85.5) Proportionate EBITDA fro
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