Atlas Arteria · ASX:ALX
Atlas Arteria — Macquarie Atlas Roads — Macquarie Australia Conference 2015
31 slides from Atlas Arteria's conference presentation, May 2015
Slide 1: Macquarie Atlas Roads – Macquarie Australia Conference
Macquarie Atlas Roads Macquarie Australia Conference May 2015
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 h
Slide 4: Table of Contents
Table of Contents 01 Overview 4 02 APRR 7 03 Dulles Greenway 23 04 Other 28 Questions 30 MACQUARIE ATLAS ROADS PAGE 3
Slide 5: Overview
1 Overview MACQUARIE ATLAS ROADS
Slide 6: MQA overview
MQA overview Global toll road operator and developer listed on ASX (Top 200) with market capitalisation of A$1.71bn1 MQA 20.14% 50.0%2 Various % Dulles Other APRR Greenway Assets A 2,278km motorway network in A 22km commuter route into Located in US and Europe Eastern France Washington DC Ca
Slide 7: MQA value progression
MQA value progression Distributions underpinned by operational performance Capital growth Distribution growth MQA Share Price Performance (A$) MQA Distributions (cps) 4.0 MQA Share Price (LHS) 10.02 3.0 Benchmark1(LHS) 8.2 6.0 2.0 5.0 3.3 1.0 2.4 0.0 2010 2011 2012 2013 2014 2015 1H 13 2H 13 1H 14
Slide 8: APRR
2 APRR MACQUARIE ATLAS ROADS
Slide 9: APRR overview
APRR overview APRR represents half a century of motorway development across eastern France Europe’s fourth largest motorway network Links key cities, including Paris, Lyon, Geneva Covers major trade and tourism routes through western Europe Interconnection between France, Switzerland, Italy an
Slide 10: APRR concessions
APRR concessions APRR comprises four concessions APRR Concession Expiry: 20321 Road Length: 1,854km AREA Concession Expiry: 20321 Road Length: 394km ADELAC (50%) Concession Expiry: 2060 Road Length: 19km ML TUNNEL Concession Expiry: 2068 Road Length: 11km 1. In-principle agreement reached with Frenc
Slide 11: APRR – 2014 results
APRR – 2014 results Traffic Revenue EBITDA1 +1.6% +2.4% +3.0% 21.7bn VKT €2,149.2m €1,520.3m 1. Results represent performance of APRR on a standalone basis. On a consolidated APRR and Eiffarie/FE basis, 2014 EBITDA was €1,519.4m. The difference results from €0.9m of operating expenses at the Eiffari
Slide 12: APRR traffic analysis
APRR traffic analysis 12 months to 31 December 2014 Revenue and traffic analysis 2014 – LV traffic up 1.6% vs pcp – HV traffic up 1.5% vs pcp 3% 15% LV 32% 3 months to 31 March 2015 Traffic HV Revenue – LV traffic up 1.8% vs pcp Other Revenue 65% – HV traffic up 1.9% vs pcp 85% Light vehicles – Half
Slide 13: APRR traffic – light vehicles
APRR traffic – light vehicles Light vehicle traffic correlated to real household disposable income Correlation to consumer confidence is weak APRR Light vehicles and economic indicators1,2 110 100 90 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Consumer Confidence Disposable Income LV
Slide 14: APRR traffic – heavy vehicles
APRR traffic – heavy vehicles Heavy vehicles correlated to French manufacturing Foreign trade volumes an additional factor APRR Heavy vehicles and economic indicators1,2 110 100 90 80 70 60 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Imports Manufacturing HV Traffic 1. Moving 12 month a
Slide 15: Bank lending in France
Bank lending in France Lending growth since mid 2014 implies expansion of business activity Loans to non-financial corporations (annual growth rate)1 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% (1.0%) (2.0%) Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 1. Bank of France: February 2015; annual growth rate is c
Slide 16: Bank lending in Euro area
Bank lending in Euro area Growth in overall lending to private sector turns positive after 34 months of contraction Euro area loans to private sectors (annual growth rate)1 1.0% 0.5% -% (0.5%) (1.0%) (1.5%) (2.0%) (2.5%) (3.0%) Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 1. European Central Ban
Slide 17: APRR performance
APRR performance Earnings growth maintained through economic cycles APRR EBITDA (€m)1 and France GDP growth (%)2 €1,750m 3.0% 1,520 €1,500m 1,475 2.0% 1,399 1,428 1,326 1,208 1,244 1,265 €1,250m 1.0% €1,000m 0.0% €750m (1.0%) €500m 3 1,068 (2.0%) 888 924 941 974 841 €250m (3.0%) €0m (4.0%) 2001 2002
Slide 18: APRR/Eiffarie – refinancing completed
APRR/Eiffarie – refinancing completed Sustainable debt maturity profile created; APRR liquidity position strengthened APRR (€1.8bn revolving credit facility) and Eiffarie (€1.5bn term loan) Following S&P upgrade in November 2014, APRR rated BBB+ (Stable outlook) by both S&P and Fitch APRR/Eiffar
Slide 19: APRR/Eiffarie financing
APRR/Eiffarie financing Continued opportunity to lock in interest savings Continued reduction in net financing costs expected for APRR/Eiffarie in 2015 €4.1bn of fixed debt maturing at APRR from 20151 to 2019 with an average cost of 5.1% APRR/Eiffarie Debt Maturity Profile (€m)1 APRR/Eiffarie Co
Slide 20: APRR financing costs outlook
APRR financing costs outlook Recent APRR debt issues at historically low rates €2.4bn of debt issued during 2014 at effective rates of 0.769%1-2.25% for maturities ending 2019-2025 APRR Bonds: Mid-Yield to maturity2 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 1
Slide 21: APRR – political update
APRR – political update Background to recent events In September 2014, French competition authority raised concerns regarding profitability of French motorways This led to negative media and political attention Motorway operators including APRR (Operators) and the French State initiated discus
Slide 22: APRR – political update (cont’d)
APRR – political update (cont’d) Key terms of the in-principle agreement Compensation for 2013 land tax increase and 2015 tariff deferral via supplemental toll increases (2016-2023) Stimulus package capital investment plan in exchange for concession extensions APRR/AREA capital works − ~€720m as
Slide 23: Stimulus package - works
Stimulus package - works Total network length to be extended by 35km Updated capex guidance (real as at Dec 2014) – 2015-2019: average €430m p.a. (includes 2014-2018 management contract residual spend) – 2020-2035: average €180m p.a. APRR 1. A36 Sévenans interchange 2. A406 West/RCEA interchange n
Slide 24: Dulles Greenway
3 Dulles Greenway MACQUARIE ATLAS ROADS
Slide 25: Dulles Greenway – 2014 results
Dulles Greenway – 2014 results Traffic Revenue EBITDA +3.0% +5.3% +7.1% 48,443 ADT US$78.9m US$63.0m MACQUARIE ATLAS ROADS PAGE 24
Slide 26: Dulles Greenway – performance
Dulles Greenway – performance Revenue growth and effective cost control have led to consistent growth in EBITDA Improving traffic trends evident since 2012 1Q 2015 traffic 3.4% above pcp (compare: DTR traffic 0.8% above pcp) 2015 toll increase implemented in March; SCC toll review expected to
Slide 27: Dulles Greenway corridor
Dulles Greenway corridor Corridor traffic expected to continue to increase with regional growth Loudoun county continues to be the fastest growing county in northern Virginia, attracting over 40% of new housing starts in the region in 2014 Dulles Greenway corridor Corridor population growth p.a.%1
Slide 28: Dulles Greenway financing
Dulles Greenway financing Debt 100% fixed rate bonds, amortisation schedule locked in until 2056 No refinancing requirements Distributions anticipated from 2019 250 500 Dulles Greenway Debt Maturity Profile (US$m) 450 200 Maturity profile for external debt as at 31 December 2014 (excl. future ca
Slide 29: Other
4 Other MACQUARIE ATLAS ROADS
Slide 30: Other
Other M6 Toll MQA continues to receive management fees of £750,000 per annum (indexed) Possible additional receipt if asset is sold, dependent on sale price Indiana Toll Road Binding sale and purchase agreement for ITR signed in March 2015, with financial close expected by June 2015 Gross re
Slide 31: Questions
Questions MACQUARIE ATLAS ROADS
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