Atlas Arteria · ASX:ALX
Atlas Arteria — FY2024 Earnings Presentation
55 slides from Atlas Arteria's earnings presentation, Feb 27, 2025
Slide 1: Atlas Arteria Results Presentation ASX Release
27 February 2025 ASX RELEASE Atlas Arteria Results Presentation for the year ended 31 December 2024 Atlas Arteria (ASX:ALX) is pleased to release the attached results presentation for the year ended 31 December 2024. ___________________________________________________________________________________
Slide 2: Ownership restrictions
Atlas Arteria Limited 2 Atlas Arteria International Limited For further details of ownership restrictions that apply to residents of the United States and other U.S. Persons that are not Qualified Purchasers, please see our website. https://www.atlasarteria.com/stores/_sharedfiles/US_Ownership/Atlas
Slide 3: 2024 Results Presentation
2024 RESULTS PRESENTATION for the twelve months ended 31 December 2024 27 February 2025 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Atlas Arteria → Results Presentation for the twelve months ended 31 December 2024 → 1
Slide 4: Important Information
Important Information Atlas Arteria accepts no obligation to correct or update any Disclaimer Forward Looking Statements forward-looking statement and, to the maximum extent The information in this presentation is given in good faith and This presentation may contain forward-looking statements permi
Slide 5: Important Information
Important Information Any U.S. Person that is not a Qualified Purchaser, or any investor No Offer acting for the account or benefit of any U.S. Person that is not a This presentation may not be distributed in the United States. Qualified Purchaser, is an “Excluded U.S. Person” and may not This prese
Slide 6: Contents
CONTENTS HIGHLIGHTS OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE OUTLOOK APPENDICES Atlas Arteria → Results Presentation for the twelve months ended 31 December 2024 → 4
Slide 7: Highlights
HIGHLIGHTS LIANE MOTORWAY, ADELAC, FRANCE Atlas Arteria → Results Presentation for the twelve months ended 31 December 2024 → 5
Slide 8: Highlights
HIGHLIGHTS Delivering on the strategy – building a global, diversified and sustainable toll road business Solid financial performance Achieving ESG targets • Statutory net profit after tax: $275.3m (2023: $256.3m) • Achieved scope 1 and 2 emissions reduction target of 25%3 by • Weighted average traf
Slide 9: 2024 Sustainability Performance
2024 SUSTAINABILITY PERFORMANCE Our targets 2024 performance Comments Safety Small Businesses1 and Corporate – LTI <= 1 ✓ 1 LTI at Skyway and 1 LTI at Dulles Greenway ✓ 0 at other Small Businesses and Corporate Higher prevalence of manual handling and slip Large Business2 – LTIFR <= 3 x LTIFR of 4.8
Slide 10: CEO Observations from First 100 Days
Portfolio of high-quality businesses, Focused executive team, reinforced by new with latent value opportunities talent, united behind a shared vision CEO OBSERVATIONS FROM FIRST 100 DAYS Responding to near-term challenges, Strong partnerships with key global in partnership with key stakeholders and
Slide 11: Delivering Value for All Investors
DELIVERING VALUE FOR ALL INVESTORS Clear strategic priorities to create investor value Atlas Arteria → Results Presentation for the twelve months ended 31 December 2024 → 9
Slide 12: Immediate Priorities
IMMEDIATE PRIORITIES Seeking to unlock Dulles Greenway cash flow potential Growing APRR network and addressing French tax challenges • New strategic approach being implemented utilising multiple avenues: • Progressing associated growth opportunities: ‒ Preparing for a new rate case application, incl
Slide 13: Efficient Portfolio Capital Management
EFFICIENT PORTFOLIO CAPITAL MANAGEMENT To facilitate strategic objectives and drive value Executed capital management initiatives at APRR enhancing Atlas Arteria’s free cash flow Optimising debt amortisation and capital releases across the portfolio to drive value Targeting future distributions of a
Slide 14: Distributions Overview
DISTRIBUTIONS OVERVIEW Distribution guidance of 40 cps for 2025 and distribution policy implemented Atlas Arteria distributions – by period earned (cps) • 2024 distribution guidance of 40 cps reaffirmed Chicago Skyway TEILD TST acquisition imposed4 imposed • 2025 distribution guidance of 40 cps1 • D
Slide 15: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Access to capital markets Operating free cash flow from existing portfolio (Ability to access debt and equity financing) Debt restructuring opportunities Atlas Arteria free cash flow1 (Portfolio regearings to unlock excess capital) Proceeds from future capital Distributi
Slide 16: Operational Performance
OPERATIONAL PERFORMANCE WARNOW TUNNEL, GERMANY Atlas Arteria → Results Presentation for the twelve months ended 31 December 2024 → 14
Slide 17: Proportional Toll Revenue and EBITDA
PROPORTIONAL TOLL REVENUE AND EBITDA Stable traffic and CPI-linked tolls underpinned revenue growth in 2024; EBITDA growth reduced by the TEILD Proportional toll revenue by business – up 5.1% vs 2023 levels Proportional EBITDA by business – up 0.4% vs 2023 levels 2,500 1,500 APRR Group ADELAC APRR G
Slide 18: APRR Group Operational and Financial Update
APRR GROUP OPERATIONAL AND FINANCIAL UPDATE Financial performance supported by strong revenue growth, but negatively impacted by the TEILD Operational and financial performance vs. 20231 Traffic Toll revenue EBITDA EBITDA margin +0.4% +4.4% -1.1% -0.2% Financial highlights Operations, development an
Slide 19: Chicago Skyway Operational and Financial Update
CHICAGO SKYWAY OPERATIONAL AND FINANCIAL UPDATE Toll increases drove a robust revenue outcome Operational and financial performance vs. 20231 Traffic Toll revenue EBITDA EBITDA margin -2.8% +5.3% +3.9% -1.1% Financial highlights Operations, development and delivery 35 - 36 cps • Traffic (from 32 cps
Slide 20: Dulles Greenway Operational and Financial Update
DULLES GREENWAY OPERATIONAL AND FINANCIAL UPDATE Continued gradual traffic improvement driving higher revenue Operational and financial performance vs. 20231 Traffic Toll revenue EBITDA EBITDA margin +5.9% +6.9% +5.8% -0.7% Financial highlights Operations, development and delivery 35 - 36 cps • Traf
Slide 21: Warnow Tunnel Operational and Financial Update
4 - 5 cps (from 7 - 8 cps) WARNOW TUNNEL OPERATIONAL AND FINANCIAL UPDATE Toll increases and strong traffic driving higher revenue Operational and financial performance vs. 20231 Traffic Toll revenue EBITDA EBITDA margin +5.6% +14.2% +17.3% +2.1% Financial highlights Operations, development and deli
Slide 22: Financial Performance
FINANCIAL PERFORMANCE DULLES GREENWAY, US Atlas Arteria → Results Presentation for the twelve months ended 31 December 2024 → 20
Slide 23: 2024 Financial Summary
2024 FINANCIAL SUMMARY Net profit after tax: $275.3m Proportional toll revenue: $1,838.7m Proportional EBITDA: $1,381.1m +7.4% vs 2023 +5.1% vs 2023 +0.4% vs 2023 Operating free cash flow: $527.1m Centralised costs: $39.1m Operating free cash flow Distributions per security: 40.0 cps Excludes CEO tr
Slide 24: Atlas Arteria Income Statement
ATLAS ARTERIA INCOME STATEMENT Solid APRR traffic drives profitability, plus gain arising from MAF2 capital increase in July 20241 A$m 2024 2023 % change Dulles Greenway and Warnow Tunnel toll revenue higher due to traffic Toll revenue 145.0 133.2 9% growth and weakening of the AUD against the USD a
Slide 25: Proportional Results
PROPORTIONAL RESULTS Atlas Arteria Proportional EBITDA increased 0.4% driven by CPI-linked toll increases & traffic growth, despite imposition of TEILD APRR Group ADELAC Excluding impact of APRR/ADELAC equity Warnow Tunnel dilution and net FX impact Chicago Skyway Dulles Greenway 75.8 1,375.0 1,378.
Slide 26: Atlas Arteria Cash Flow for 2024
ATLAS ARTERIA CASH FLOW FOR 2024 APRR dividends to Atlas Arteria (€m) Corporate cash flows (A$m) Cash balance (A$m) 609.5 Net corporate cash flow of 42.0 cps €40m debt amortisation in 2H 2024 at FE funded by €200m special distribution made by APRR to 25.6 FE (100% basis). €160m remaining after 39.1
Slide 27: Debt Maturity Profile
DEBT MATURITY PROFILE Debt maturity profile (Euro-denominated for 2025-2029)1,2 Debt maturity profile (US dollar-denominated for 2025-2029)1 APRR Dulles Greenway 1,800 FE debt facility Financière Eiffarie 600 Chicago Skyway refinanced on Warnow Tunnel 1,600 25 February 20253 500 1,400 47 1,200 400 2
Slide 28: Funding and Liquidity
FUNDING AND LIQUIDITY As at 31 December 2024 Weighted Average Proportion of Net Debt/(Cash) Liquidity Credit Rating (Local Currency) Cost of Debt3 Fixed Rate Debt Fitch: A Stable Outlook APRR Group (incl. FE)1,2 €7,589.3m €4,036.2m 2.0% 88.7% S&P: A- Stable Outlook ADELAC €627.8m €27.5m 3.3% 85.5% n
Slide 29: Outlook
OUTLOOK CHALON NORD INTERCHANGE, APRR, FRANCE Atlas Arteria → Results Presentation for the twelve months ended 31 December 2024 → 27
Slide 30: Delivering Value from Our Diverse Portfolio
DELIVERING VALUE FROM OUR DIVERSE PORTFOLIO Distributions Immediate priorities Long term opportunities • 2024 distribution guidance of • Seek to unlock Dulles Greenway cash • Invest in strategic partnerships to 40 cps reaffirmed flow potential drive mutual competitive advantage • 2025 distribution g
Slide 31: Q&A Contact for Investors
Q&A Contact for investors Tess Palmer Director, Investor Relations +61 (0) 499 972 339 investors@atlasarteria.com Atlas Arteria → Results Presentation for the twelve months ended 31 December 2024 → 29
Slide 32: Appendix A: Additional Financial Information
APPENDIX A ADDITIONAL FINANCIAL INFORMATION CALUMET RIVER BRIDGE, CHICAGO SKYWAY, US Atlas Arteria → Results Presentation for the twelve months ended 31 December 2024 → 30
Slide 33: Atlas Arteria Consolidated Balance Sheet
ATLAS ARTERIA CONSOLIDATED BALANCE SHEET As at As at Statutory accounts 31 December 2024 31 December 2023 A$m Current assets 366.5 345.1 Investments accounted for using the equity method 5,149.3 5,097.2 Tolling concessions 2,215.4 2,103.5 Goodwill 14.7 14.3 Other non-current assets 516.1 484.6 Total
Slide 34: Proportionate Result by Business
PROPORTIONATE RESULT BY BUSINESS Toll revenue 2024 (Local Currency) 2024 (A$m)1 Ownership2 100% Proportional 100% Proportional APRR Group3 30.8%4 3,001.3 929.6 4,922.7 1,524.8 ADELAC 30.9%4 74.0 22.9 121.3 37.6 Warnow Tunnel 100% 16.5 16.5 27.0 27.0 Chicago Skyway 66.7% 129.8 86.5 196.8 131.2 Dulles
Slide 35: Analyst Notes
ANALYST NOTES Key considerations APRR Capital Management Initiatives: Release of cash reserve to cover FE debt repayments • €200m of cash held at an APRR subsidiary (associated with accumulated retained earnings) was released and paid to APRR by way of dividend in June 2024 • APRR paid up this amoun
Slide 36: Analyst Notes (cont.)
ANALYST NOTES (CONT.) Key considerations APRR Group profit consolidation adjustments • The consolidation adjustments reflect differences in accounting between the APRR standalone (prepared under French GAAP) and APRR consolidated accounts (prepared under IFRS). The 2024 adjustment of negative €24.5m
Slide 37: Analyst Notes (Free Cash Flow Definition)
ANALYST NOTES (FREE CASH FLOW DEFINITION) Refined and formalised definition Comparison to previous Notes (Used for distributions from 1 January 2025) approach • APRR and ADELAC amortisation does not currently impact distributions given distributions are NPAT based + Distributions received from APRR
Slide 38: APRR Financial Performance
APRR FINANCIAL PERFORMANCE APRR financial performance supported by robust revenue growth, but negatively impacted by the TEILD €m (100%)1 2024 2023 % change • Growth in operating revenue reflects higher tolls at APRR and AREA of c. 3.0% from 1 February 2024 Traffic (VKTm) 26,197.1 26,095.7 0.4% Oper
Slide 39: Appendix B: About the Business
APPENDIX B ABOUT THE BUSINESS DULLES GREENWAY, US Atlas Arteria → Results Presentation for the twelve months ended 31 December 2024 → 37
Slide 40: The Atlas Arteria Business
THE ATLAS ARTERIA BUSINESS Virginia, United States Ownership: 30.82% Dulles Greenway Luxembourg United States HQ European HQ APRR 2,316km motorway network in Eastern France Rostock, Germany 2035 concession expiry1 Warnow Tunnel Ownership: 30.82% A79 88km east-west transversal link 2068 concession ex
Slide 41: ESG Investment Proposition
ESG INVESTMENT PROPOSITION Our purpose is to connect communities through transportation. At Atlas Arteria, we lead by example and actively address climate change impacts, while striving to meet all our environmenta l, social and governance goals. This commitment is central to our values and crucial
Slide 42: APRR Group – Overview
APRR GROUP – OVERVIEW APRR Group heavy and light vehicle traffic Heavy vehicle VKT Light vehicle VKT Toll revenue 3,001 2,874 2,686 2,468 Toll revenue (€m) Total VKT (m) 2,100 21,100 21,952 22,079 19,284 15,856 3,557 3,911 4,004 4,144 4,118 2020 2021 2022 2023 2024 APRR Group EBITDA & EBITDA margin
Slide 43: ADELAC – Overview
ADELAC – OVERVIEW ADELAC traffic Total trips Toll revenue 74.0 68.1 61.1 Toll revenue (€m) 47.7 Total trips (m) 41.4 10.8 11.3 11.6 8.9 7.7 2020 2021 2022 2023 2024 ADELAC EBITDA & EBITDA margin EBITDA EBITDA margin 84.3% 86.7% 81.9% 83.2% 81.4% ADELAC is a 20km road that provides a strategic link b
Slide 44: APRR – Contractual Toll Regime
APRR – CONTRACTUAL TOLL REGIME APRR & AREA contractual toll regime ADELAC contractual toll regime • Tolls escalate annually in February by a percentage of French CPI, plus supplemental increases • Under the concession contract, tolls typically increase each year in February by French CPI as agreed w
Slide 45: APRR – French Taxes
APRR – FRENCH TAXES Corporate Income Tax Territorial economic contribution (CET) Motorway Specific Tax (TAT) • The current corporate tax rates in France are shown in the • The territorial economic contribution (Contribution • The French Tax Code requires motorway companies to pay a tax table below:
Slide 46: Warnow Tunnel – Overview
WARNOW TUNNEL – OVERVIEW Warnow Tunnel traffic Total trips Toll revenue 16.5 14.4 12.7 12.5 13.1 Toll revenue (€m) Total trips (m) 4.9 4.7 4.6 4.5 4.4 2020 2021 2022 2023 2024 Warnow Tunnel EBITDA & EBITDA margin EBITDA EBITDA margin 71.1% 68.3% 69.0% 68.9% 70.9% Warnow Tunnel is a 2km toll road wit
Slide 47: Warnow Tunnel – Toll Regime
WARNOW TUNNEL – TOLL REGIME • Tolls may be escalated annually and are subject to approval by the Ministry of Energy, Infrastructure and State Development for the State of Mecklenburg-Vorpommern • Toll increases are linked to pre-tax equity IRR of the concession as outlined below • Since 2013, Warnow
Slide 48: Chicago Skyway – Overview
CHICAGO SKYWAY – OVERVIEW Chicago Skyway heavy and light vehicle traffic Heavy vehicle trips Light vehicle trips Toll revenue 129.8 120.1 123.3 114.2 Toll revenue (US$m) Total trips (m) 84.9 12.4 12.6 11.7 11.4 9.2 1.2 1.4 1.5 1.4 1.3 2020 2021 2022 2023 2024 Chicago Skyway EBITDA & EBITDA margin EB
Slide 49: Chicago Skyway – Toll Regime
CHICAGO SKYWAY – TOLL REGIME Toll escalation linked to macroeconomic factors with a 2.0% floor, based on a 2-year look-back Toll escalates at the greater of: • There are six tolled vehicle classes based on vehicle axles: Annual US nominal GDP Annual US CPI growth 2.0% per annum — Class 2 vehicles ar
Slide 50: Chicago Skyway – United States Federal and State Tax
CHICAGO SKYWAY – UNITED STATES FEDERAL AND STATE TAX US Federal and State income tax rates • The majority of Chicago Skyway’s depreciable / amortisable Upstream tax profile • Chicago Skyway is subject to US Federal and Illinois State assets are depreciated / amortised for tax purposes over a Distrib
Slide 51: Dulles Greenway – Overview
DULLES GREENWAY – OVERVIEW Dulles Greenway traffic Total trips Toll revenue 77.8 72.8 67.1 Toll revenue (US$m) Total trips (m) 59.9 51.6 13.1 13.9 11.6 12.3 10.2 2020 2021 2022 2023 2024 Dulles Greenway EBITDA & EBITDA margin EBITDA EBITDA margin 77.1% 79.8% 78.7% 78.0% 73.8% Dulles Greenway is a 22
Slide 52: Dulles Greenway – Toll Regime
DULLES GREENWAY – TOLL REGIME Tolls on the Dulles Greenway are set on application by the Virginia State Corporation Commission (SCC) under the Virginia Highway Corporation Act (1988) (VHCA) • From 1 Jan 2022 onward, the SCC will determine the toll rates under the VHCA in accordance with Section §56-
Slide 53: Atlas Arteria Summary Corporate Structure
ATLAS ARTERIA SUMMARY CORPORATE STRUCTURE as at 31 December 2024 Stapled ATLAX (Australia) ATLIX (Bermuda) 13.43% Dulles Greenway 86.57% economic interest (via loans)1 100% 66.67%2 Third Party Investors MIBL CCPI 33.36% 61.64% 100% 5.00% Eiffage MAF / MAF2 100% Chicago Skyway 50% + 1 share Warnow Tu
Slide 54: Appendix C: References
APPENDIX C REFERENCES TOLL PLAZA, CHICAGO SKYWAY, US Atlas Arteria → Results Presentation for the twelve months ended 31 December 2024 → 52
Slide 55: Glossary of Terms
GLOSSARY OF TERMS ADELAC The concessionaire of the A41 north motorway FX Foreign Exchange TCFD Task Force on Climate-Related Financial Disclosures ALX Atlas Arteria GDP Gross Domestic Product TEILD Long-distance Transport Infrastructures Tax APRR Group Includes APRR, AREA and A79 concessions GHG Gre