Atlas Arteria · ASX:ALX
Atlas Arteria — Macquarie Atlas Roads — FY2012 Earnings Presentation
36 slides from Atlas Arteria's earnings presentation, Feb 22, 2013
Slide 1: Macquarie Atlas Roads Full Year Results Presentation
MACQUARIE ATLAS ROADS FULL YEAR RESULTS PRESENTATION 31 DECEMBER 2012 1
Slide 2: Disclaimer
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 manager/adviser of MA
Slide 3: Disclaimer
Disclaimer Hong Kong This document has been prepared and intended to be disposed solely to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap. 571) of Hong Kong for the purpose of providing preliminary information and does not constitute any offer to the public
Slide 4: Presentation agenda
Presentation agenda 1. Overview 5 2. Financial Performance 8 3. Asset Review 16 4. Questions 27 Appendix 28 4
Slide 5: 1. Overview
RRR RRERE 1 a, =m 1. Overview
Slide 6: 2012 snapshot
2012 snapshot Positive EBITDA growth continues in spite of difficult economic conditions 2012 Statutory results summary Revenue and other income: A$93.5m (2011: A$91.9m) Loss after income tax : A$124.4m (2011: A$289.5m loss) 2012 Portfolio highlights APRR EBITDA continues to be resilient with
Slide 7: 2012 segmented results
2012 segmented results Revenue and EBITDA increased on five portfolio toll roads reflecting toll increases and ongoing cost control initiatives APRR increased EBITDA by 2.1% with toll increases and cost control mitigating lower traffic US traffic flat to positive with solid EBITDA performance
Slide 8: 2. Financial Performance
2. Financial Performance Mary Nicholson, Nicholson Chief Financial Officer
Slide 9: MQA statutory accounts
MQA statutory accounts Statutory accounting MQA consolidates the results and balances of its controlled asset (M6 Toll) MQA equity accounts its non-controlled assets: — APRR, Dulles Greenway, Chicago Skyway, Indiana Toll Road, Warnow Tunnel E it accounting Equity ti Initially recognise assets
Slide 10: Consolidated profit & loss account
Consolidated p profit & loss account Statutory accounts – Year ended 31 December 2012 Non- MQA Total MQA Total MQA controlled Year ended Year ended A$m Corporate M6 Toll assets 31 Dec 12 31 Dec 11 Total revenue and other income 0.4 93.1 - 93.5 91.9 Financing costs - (104.6) - (104.6) (102.6) Managem
Slide 11: Consolidated balance sheet
Consolidated balance sheet Statutory accounts – as at 31 December 2012 Non- MQA Total MQA Total MQA controlled As at As at A$m Corporate M6 Toll assets 31 Dec 12 31 Dec 11 Current assets 19.1 43.3 - 62.4 64.0 Investments in associates - - 702.8 702.8 753.4 Property, plant and equipment - 746.7 - 746
Slide 12: MQA cash flow summary
MQA cash flow summary Available cash A$m Opening balance – 1 January 2012 17.3 Distribution from Financière Eiffarie (FE) of Distributions from assets 10.0 €8.0m in September 2012 reflecting part payment from APRR 1H 2012 profit I t Interest t on corporate t cash h balances b l 04 0.4 Transtoll li
Slide 13: MQA dividend
MQA dividend MQA 1H 2013 dividend guidance of 2.4 cents per security 100% foreign unfranked dividend from MARIL Anticipated 2013 receipts from Financière Eiffarie March 2013 ~€14.5m (~A$18.6m1) September 2013 ~€18m - €20m March 2013 FE distribution derived from remaining undistributed 1H 2012 AP
Slide 14: APRR free cash flow
APRR free cash flow FE distributions, and therefore MQA dividends, reflect only a portion of APRR free cash flow APRR consistently generates cash flow above net profit Undistributed cash is reinvested in the business through capital expenditure and debt repayment Pro forma full year 2012 FE Gr
Slide 15: French tax reforms
French tax reforms Recent French tax changes APRR structure diagram 3% tax on dividends paid outside a tax consolidated group Eiffage and Macquarie subsidiaries managed funds Use of previously accumulated tax losses limited to 50% of current year net taxable income Equity plus shareholder loans
Slide 16: 3. Asset Review
3. Asset Review Peter Trent, Trent Chief Executive Officer
Slide 17: APRR/Eiffarie: APRR 2012 results
APRR/Eiffarie APRR 2012 results Traffic -1.7% Impacted b by challenging economic en environment ironment 21.1bn VKT Revenue +0.8% Supported by increases in tolls and higher fees from retail and €2,038.6m telecommunication facilities EBITDA1 +2.1% Benefited from opex savings €1,427.5m EBITDA
Slide 18: APRR traffic
APRR/Eiffarie APRR traffic LV and HV decreased by 1.3% and 3.8% respectively during 2012 Total traffic lower despite extra day reflecting weak economic environment, principally felt by HV Weak economic conditions are expected to continue during 2013 APRR traffic vs French manufacturing1 8.0% 4.0
Slide 19: French economy
APRR/Eiffarie French economy French economic outlook continues to be uncertain France GDP forecasts1 2 5% 2.5% 2.0% 1.5% 1.0% Oct-12 Apr-12 0.5% Sep-11 Apr-11 Oct-10 Apr-10 -% % 2012 2013 2014 2015 2016 2017 1. International Monetary Fund (IMF). 19
Slide 20: APRR operations
APRR/Eiffarie APRR operations EBITDA margin at 70.0% Operating expenses (ex operating taxes) broadly flat since 2006 €800m 80.0% 67.8% 68.0% 68.4% 69.2% 70.0% 67.0% 64.0% €600m 60.0% 1 232 229 231 236 240 264 258 €400m 40.0% 153 162 149 139 156 140 133 €200m 20.0% 209 209 210 220 218 219 220 €0m -
Slide 21: APRR profit
APRR/Eiffarie APRR profit APRR’s profit impacted by increased net interest expense in 2011 and 2012 €550m 17 ((25)) 82 €500m (40) (57)) (5 €450m 7 6 (36) 17 6 419 (1) (4) €400m D&A, provisions, other D&A, provisions, other 395 392 g taxes g taxes Net profit 2010 Net profit 2012 Net profit 2011 erest
Slide 22: APRR liquidity
APRR/Eiffarie APRR liquidity Strong liquidity position with manageable maturity profile APRR generated €871m of operating cash flow (pre-capex) Over €1.4bn available cash/liquidity as at 31 December 2012 Consolidated debt ratios (including Eiffarie) remain solid as at 31 December 2012 — Consol
Slide 23: Other developments
APRR/Eiffarie Other developments Ratings Fitch initiated coverage of APRR with BBB+ (stable) Completion of APRR acquisition APRR compulsory acquisition completed Delisted from Euronext Paris on 18 December 2012 Looking forward Toll increase of 1.94% on 1 February 2013 — Final increase under
Slide 24: Dulles Greenway 2012 results
Dulles Greenwayy 2012 results Traffic -0.2% 0 2% Flat but for the effects of Hurricane Sandy 46,342 ADT Benefited from a milder winter Revenue +8.1% Supported by January 2012 increase in tolls US$72.4m EBITDA +11.8% Reflects higher tolls and increased cost efficiencies US$58.2m EBITDA marg
Slide 25: Dulles Greenway other developments
Dulles Greenwayy Other developments Toll increase of 3.02% approved by SCC on 22 January 2013 (Actual tolls rounded downwards to the nearest US$0.05) New SCC hearing into Dulles Greenway tolls has been set for April 2013. The Dulles Greenway will be required to defend its toll rates Base traff
Slide 26: Other assets
Other assets 2012 results Assets Traffic Revenue EBITDA Comments Traffic performance was flat for 2012 reflecting the contrasting effects of road works on competing M6 Toll sections of the M6 motorway and the weak economic -0.0% +3.8% +2.4% conditions in the UK. IIncrease in i speedd lilimit it on t
Slide 27: 4. Questions
RRR RRERE 1 ar tea! 4. Questions
Slide 28: Appendix
RRR RRERE 1 ar tea! Appendix
Slide 29: Cash flow: APRR to MQA shareholders
APRR/Eiffarie Cash flow: APRR to MQA shareholders Cash flow: APRR to MQA shareholders (€m) Eiffarie/FE 2H 2012 APRR dividend A 121 add APRR tax instalments to FE B 117 less Other1 C 2 less Eiffarie net interest D (103) less FE tax payments/provisions E (35) Distributable cash F=A+B–C–D–E 103 less De
Slide 30: MQA free cash flow
APRR/Eiffarie MQA free cash flow Cash flow: APRR to MQA shareholders FY 2012 APRR free cash flow (€m) 871 Eiffarie net interest (€m) (184) Eiffarie opex1 (€m) (1) Tax grouping (€m) 174 Consolidated free cash flow (€m) 859 MQA’s proportionate share (19.44%) (€m) 167 MQA’s proportionate share in A$ (1
Slide 31: Eiffarie minimum cash sweep
APRR/Eiffarie Eiffarie minimum cash sweep Year Period end Minimum cash sweep (€m) 2012 June 14 December 30 2013 June 47 December 44 2014 June 53 December 46 2015 0 5 June Ju e 161 6 December 153 2016 June 243 December 114 31
Slide 32: APRR capital expenditure
APRR/Eiffarie APRR capital expenditure Since 2006, ~€2.75bn has been spent to grow, improve and maintain the network 2006 110 215 45 2007 122 343 24 2008 115 5 303 81 8 2009 102 171 159 2010 115 104 187 2011 108 123 54 2012 94 168 27 €0m €100m €200m €300m €400m €500m €600m Maintenance1 Additional in
Slide 33: Statutory accounts vs Management Information Report (MIR)
Statutory accounts vs Management Information Report (MIR) Statutory result for the period Proportionally consolidated financial performance M6 Toll results consolidated. Non-controlled toll road asset results Aggregation of operating results of proportionate interests in all toll road included in sh
Slide 34: Proportionately consolidated performance
Proportionately consolidated performance Actual Pro Forma Actual Year ended Year ended Change vs Year ended A$m 31 Dec 12 31 Dec 111 2 pcp 31 Dec 112 Operating revenue 683.6 671.0 1.9% 712.2 Operating expenses (179.7) (181.4) (1.0%) (193.8) EBITDA from road assets 503.9 489.6 2.9% 518.4 EBITDA margi
Slide 35: Reconciliation: statutory results to proportionate earnings
Reconciliation Statutory results to proportionate earnings A$m $ Year ended 31 Dec 12 Year ended 31 Dec 11 Loss attributable to MQA security holders (124.4) (289.5) M6 Toll related adjustments: Non-cash financing costs 30.5 47.9 Depreciation and amortisation net of maintenance capex 21.7 26.4 Operat
Slide 36: Reconciliation: cash flow and cash balance
Reconciliation Cash flow and cash balance A$m $ Year ended 31 Dec 12 Year ended 31 Dec 11 Net statutory operating cash flows 45.3 44.9 M6 Toll related adjustments: Toll revenue received (106.3) (105.4) Interest and other income received (3.9) (4.1) Net indirect taxes paid 16.9 18.5 Payments to suppl