Atco Ltd. Class I · TSX:ACO.X
Atco Ltd. Class I — Merger or Acquisition (September 2018)
21 slides from Atco Ltd. Class I's merger presentation, Sep 12, 2018
Slide 1: Neltume Ports Investment Investor Presentation
NELTUME PORTS INVESTMENT INVESTOR PRESENTATION SEPTEMBER 12, 2018
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER Statements made by representatives for ATCO Ltd. and Canadian Utilities Limited and information provided in this presentation may be considered forward-looking statements. By their nature, such statements are subject to numerous known and unknown risks and uncertainties and therefor
Slide 3: Nancy C. Southern, Chair & Chief Executive Officer
NANCY C. SOUTHERN CHAIR & CHIEF EXECUTIVE OFFICER
Slide 4: Investment Summary
INVESTMENT SUMMARY ATCO is purchasing a 40 per cent interest in Neltume Ports for approximately $450M CAD. 40% 60% • 16 port operations & 3 stevedoring businesses • In 4 countries: Chile, Uruguay, Argentina and Brazil NELTUME PORTS INVESTMENT INVESTOR PRESENTATION 4
Slide 5: Organizational Structure
ORGANIZATIONAL STRUCTURE 100% 52.4% 40% 100% Structures & Logistics Energy Ports and Real Estate Infrastructure Transportation The Neltume investment represents a fourth pillar in ATCO’s global portfolio. NELTUME PORTS INVESTMENT INVESTOR PRESENTATION 5
Slide 6: ATCO Focus: Global Essential Services
ATCO FOCUS: GLOBAL ESSENTIAL SERVICES Energy Real Estate Housing Logistics & Water Transportation Agriculture NELTUME PORTS INVESTMENT INVESTOR PRESENTATION 6
Slide 7: Strategic Rationale
STRATEGIC RATIONALE Investment with a Exposure to Strong macro Portfolio, industry, trusted long-term growing global factors and and geographic partner with trade and economic diversification shared values transportation tailwinds NELTUME PORTS INVESTMENT INVESTOR PRESENTATION 7
Slide 8: Siegfried W. Kiefer, President & Chief Strategy Officer
SIEGFRIED W. KIEFER PRESIDENT & CHIEF STRATEGY OFFICER
Slide 9: Neltume Ports Overview
NELTUME PORTS OVERVIEW • Neltume Ports is a leading port operator and developer with a diversified range of terminals across South America and is headquartered in Santiago, Chile o 16 port terminals in 4 countries: Chile, Uruguay, Argentina and Brazil o 2 stevedoring companies in Chile, 1 in Uruguay
Slide 10: Neltume Ports Operations
NELTUME PORTS OPERATIONS BY CARGO TYPE BY GEOGRAPHY 5% 11% Brazil Container 33% Approx. Approx. 20% Uruguay 51 M 48% Break Bulk 51 M Tonnes Tonnes Chile Bulk 64% Argentina 19% *Based on 100% of volumes of ports where Neltume Ports has an ownership stake NELTUME PORTS INVESTMENT INVESTOR PRESENTATION
Slide 11: Neltume Ports Diversified Earnings
NELTUME PORTS DIVERSIFIED EARNINGS BY APPROXIMATE EARNINGS MIX Multi- Minerals & Purpose Resources Containers NELTUME PORTS INVESTMENT INVESTOR PRESENTATION 11
Slide 12: Port Overview
PORT OVERVIEW PERCENT TERMINAL Puerto Angamos (PANG) Montecon (MON) PORT COUNTRY KEY CARGO OWNERSHIP TYPE Terminal Puerto Arica 35% CHL Container Mixed Terminal Puerto Angamos 40% CHL Multi Copper Terminal Graneles del Norte 40% CHL Dry Bulk Coal Puerto Mejillones 50% CHL Dry Bulk Coal/Copper Termin
Slide 13: Strong Volume Growth
STRONG VOLUME GROWTH Consistent and growing volumes support stability of cash flows 55 2010 - 2017 50.8 4000 50 12% Cargo CAGR 3500 45 7% Container CAGR 3000 40 35.7 35.8 35.5 35 33.8 2500 30 29 2476 26.7 2320 2147 2228 2000 25 22.5 2047 1767 1814 1500 20 1546 15 1000 10 500 5 0 0 2010 2011 2012 201
Slide 14: Growth Driven by Macroeconomic Tailwinds
GROWTH DRIVEN BY MACROECONOMIC TAILWINDS Strong macro economic growth indicators: FORECASTED AGGREGATE GROWTH • Latin American GDP to outpace Canadian GDP growth 16% • Chile has been one of Latin America’s fastest‐growing economies 14% averaging 3.5% GDP growth over the last 8 years. 12% • Global t
Slide 15: Growth Due to Rising Copper Global Demand
GROWTH DUE TO RISING COPPER GLOBAL DEMAND GLOBAL FORECASTED COPPER CONSUMPTION Exposure to Growing Copper Global Demand: 26 • Chile represents approximately 28% of global copper production and owns the largest copper reserves in the world. 25 • Copper supply deficit starting in 2020 is expected to M
Slide 16: Brownfield Growth Potential
BROWNFIELD GROWTH POTENTIAL • A portion of ATCO’s investment may be used for berth expansions or additions of multi- purpose berths. • Berth expansions create increased draft that allows terminals to receive bigger ships & larger volumes. • Berth extensions or adding berths create additional growth
Slide 17: Growth by Acquisition and Construction
GROWTH BY ACQUISITION AND CONSTRUCTION Acquisition of Rio Estiba and Increased Awarded port Construction of participation in Tender of TPS TGN Montecon, Sagres and Ontur via the Construction of Awarded port Partnership takeover of Puerto Mejillones tender of TPA TPS/MSC Schandy 1995 1996 2000 2003 2
Slide 18: Dennis A. DeChamplain, Senior Vice President & Chief Financial Officer
DENNIS A. DECHAMPLAIN SENIOR VICE PRESIDENT & CHIEF FINANCIAL OFFICER
Slide 19: Neltume Ports Investment Financial Highlights
NELTUME PORTS INVESTMENT FINANCIAL HIGHLIGHTS • The Neltume investment is expected to be accretive to earnings per share in the first full year of ownership and thereafter. • Neltume generated approximately $90 million USD of EBITDA in 2017. • ATCO will fund its investment in Neltume with a combinat
Slide 20: Key Highlights
KEY HIGHLIGHTS Geographic EPS Accretion Additional platform for Diversification continued growth Energy Real Estate Housing Logistics & Water Transportation Agriculture NELTUME PORTS INVESTMENT INVESTOR PRESENTATION 20
Slide 21: Neltume Ports Investment Investor Presentation
NELTUME PORTS INVESTMENT INVESTOR PRESENTATION SEPTEMBER 12, 2018