Atlas Arteria · ASX:ALX
Atlas Arteria — Investor Day (November 2021)
52 slides from Atlas Arteria's investor day presentation, Nov 17, 2021
Slide 1: Atlas Arteria 2021 Investor Day
ATLAS ARTERIA 2021 INVESTOR DAY 17 November 2021
Slide 2: Important Information
IMPORTANT INFORMATION Disclaimer Forward Looking Statements No Offer The information in this presentation is given in good faith and This presentation may contain forward-looking statements This presentation does not constitute an offer to sell, or the derived from sources believed to be accurate at
Slide 3: Agenda
AGENDA CEO WELCOME & GROUP STRATEGY DULLES GREENWAY Graeme Bevans, CEO at Atlas Arteria Renée Hamilton, CEO at Dulles Greenway Pierce Homer, Director of Dulles Greenway ECONOMIC UPDATE James Lerner, Director US Operations at Atlas Arteria Jean-François Robin, Global Head of Research, Corporate & Inv
Slide 4: CEO Welcome & Group Strategy
CEO WELCOME & GROUP STRATEGY Graeme Bevans Chief Executive Officer & Managing Director of ATLAX Atlas Arteria > 2021 Investor Day > 4
Slide 5: Key Takeaways
KEY TAKEAWAYS Positive outlook for drivers of traffic in Europe while US traffic continues its recovery Political and economic environment in France remains supportive of growth Continuing to work with key stakeholders at the Greenway Developing key internal capabilities to underpin future investmen
Slide 6: The Atlas Arteria Business
THE ATLAS ARTERIA BUSINESS Atlas Arteria Portfolio Virginia, United States Luxembourg Dulles Greenway European HQ Atlas Arteria Portfolio APRR ADELAC WARNOW TUNNEL DULLES GREENWAY Virginia, United States Luxembourg Rostock, Germany Dulles Greenway European HQ Warnow Tunnel Ownership: 31.14% Ownershi
Slide 7: Who is Atlas Arteria?
WHO IS ATLAS ARTERIA? We leverage our strategic, operating and financial positions to create value for all stakeholders Global owner and operator of toll roads Nimble team with strong track record in successful investing and unlocking value in complex multi-party transactions Atlas Arteria has a hig
Slide 8: How is Atlas Arteria Executing its Strategy?
HOW IS ATLAS ARTERIA EXECUTING ITS STRATEGY? Strategic Framework 1 Reduce legacy complexity to maximise our value 2021 Key Strategic Outcomes: 2 Maximise operational efficiencies in existing businesses • Capital restructure at Warnow Tunnel diversifies Atlas Arteria’s sources of cash flow 3 Discipli
Slide 9: Strategic Achievements in the 2½ Years Since Internalisation
STRATEGIC ACHIEVEMENTS IN THE 2½ YEARS SINCE INTERNALISATION Internalised management to remove Macquarie from the APRR structure Significantly decreased head office management costs relative to fees formerly paid to Macquarie Restructured the shareholders agreement for APRR to remove value destroyin
Slide 10: Attractive Investment Proposition
ATTRACTIVE INVESTMENT PROPOSITION Strong growth potential within and external to the current portfolio A uniquely experienced team and culture, with a proven track record of executing complex multi-party transactions to unlock value Resilient balance sheet with good liquidity Strong distribution yie
Slide 11: Economic Update
ECONOMIC UPDATE Jean-François Robin Global Head of Research, Corporate & Investment Banking at Natixis Atlas Arteria > 2021 Investor Day > 11
Slide 12: Traffic Update
TRAFFIC UPDATE Ryan Reynolds Director Forecasting and Analysis Atlas Arteria > 2021 Investor Day > 12
Slide 13: Internal Team of Traffic Forecasting Experts
INTERNAL TEAM OF TRAFFIC FORECASTING EXPERTS A global team of traffic forecasting experts, utilising internally developed traffic forecasting models to optimise our existing businesses and assist in future expansion opportunities Our team Our role Understanding the business • Internal team of data •
Slide 14: The APRR Network
THE APRR NETWORK The top 10 routes account for 80% of the traffic APRR Light Vehicles, Typical VKT APRR Network Map 3,000 Top 40% of LV VKT France Luxembourg 2,500 Germany Metz PARIS 2,000 Nancy Next 40% of LV VKT 1,500 Next 10% of LV VKT Troyes 1,000 80% of traffic is from A5 the top 10 routes 500
Slide 15: Light Vehicle Travel Purpose at APRR
LIGHT VEHICLE TRAVEL PURPOSE AT APRR Diversified trip purposes across both the network and time of year • North and Central: The A6 Nord and Sud are long roads traversing between • Summer: During the summer, total traffic increases and trips are tilted major cities. They are primarily used for visit
Slide 16: Traffic Recovery at APRR
TRAFFIC RECOVERY AT APRR The 2021 European summer saw traffic reach record levels • Mobility across France has been at its highest since the beginning of the COVID pandemic – a lack of restrictions and strong domestic tourism demand helped APRR serve a record number of customers over Q3 2021 APRR Tr
Slide 17: Heavy Vehicle Demand Drivers
HEAVY VEHICLE DEMAND DRIVERS The APRR network is a critical part of Trans-European trade routes Trans-European TEN-T transport corridors French and Spanish Trade with Western APRR breakdown by LV and HV intersect at APRR Europe (exports and imports by weight) (based on 10 year average) North Sea Fra
Slide 18: Key Factors for Understanding APRR Traffic
KEY FACTORS FOR UNDERSTANDING APRR TRAFFIC Economic conditions, trans-European trade and changes to transport policies are all expected to influence demand Key Factors The Current Environment Light Vehicles Domestic employment and household consumption Supportive domestic economic conditions Success
Slide 19: Traffic Recovery at Dulles Greenway
TRAFFIC RECOVERY AT DULLES GREENWAY Traffic has been steadily recovering in line with workplace mobility • While traffic continues to recover, mobility data suggests that there remains further improvement required to return to pre COVID levels Dulles Greenway Trips Loudoun County Mobility Data Retai
Slide 20: Traffic at the Greenway in Line with the Dulles Toll Road
TRAFFIC AT THE GREENWAY IN LINE WITH THE DULLES TOLL ROAD Traffic along the Greenway – Dulles Toll Road corridor has been affected by reduced commuting during the COVID-19 pandemic Traffic Recovery post-COVID along the VA-267 Corridor Dulles Greenway Dulles Toll Road 10% Percentage change in trips v
Slide 21: Return in Off-Peak Traffic Driving Recovery
RETURN IN OFF-PEAK TRAFFIC DRIVING RECOVERY Off-peak traffic recovering to pre COVID-19 levels, with peak traffic recovery affected by workplace mobility • Prior to the COVID-19 Dulles Greenway, average hourly trip counts, both directions (August) pandemic, peak periods accounted for ~30% of total t
Slide 22: COVID Cases Correlated to Use of the Greenway
COVID CASES CORRELATED TO USE OF THE GREENWAY Increase in public confidence and commuter traffic could be linked to a decline in COVID-19 case numbers • Over Q3, Virginia Greenway traffic vs. Virginia COVID-19 cases experienced an outbreak of the Delta variant Greenway trips Virginia COVID-19 cases
Slide 23: Key Factors for Understanding Greenway Traffic
KEY FACTORS FOR UNDERSTANDING GREENWAY TRAFFIC Long term economic conditions, growing public confidence and return to the work place are all expected to influence demand Key Factors The Current Environment High income region with population growth and ongoing urban Economic conditions in Loudoun Cou
Slide 24: Understanding the key drivers of traffic at our businesses
By understanding the key drivers of traffic at our businesses we can optimise our existing business and better evaluate future opportunities Atlas Arteria > 2021 Investor Day > 24
Slide 25: APRR
APRR Vincent Portal-Barrault Chief Operating Officer Atlas Arteria > 2021 Investor Day > 25
Slide 26: The APRR Team
THE APRR TEAM The APRR Group’s ~3,100 employees are dedicated to our customers and network • The APRR Group is a large team of ~3,100 employees Paris • Over 200 different field and office-based professions providing Troyes Toul Stuttgart a very diverse range of expertise Germany Orléans • Maintained
Slide 27: French Government's Sustainability Priorities
FRENCH GOVERNMENT’S SUSTAINABILITY PRIORITIES Concession motorways account for ~6% of all national GHG emissions and ~20% of all transport GHG emissions Environmental Agenda Transport Sector • Policies and targets have been implemented over recent years • Several targets have been set for the transp
Slide 28: APRR Commitment to Electric Vehicle Charging Stations
APRR COMMITMENT TO ELECTRIC VEHICLE CHARGING STATIONS Objective is for all service areas across network to be equipped with EV charging stations by the end of 2022 Roll out plan for electric vehicle charging stations across APRR and AREA motorway 32% 51% 65%- 100% at end 2020 by 30 June 2021 70% by
Slide 29: APRR and the French Government's Sustainability Priorities
APRR AND THE FRENCH GOVERNMENT’S SUSTAINABILITY PRIORITIES Protecting animal species • A wide range of structures have been built on the APRR network to protect animal species: − biological corridors − wildlife crossings and tunnels − observatories − bat roosts • Under the 2018 motorway investment p
Slide 30: APRR and the French Government's Sustainability Priorities
APRR AND THE FRENCH GOVERNMENT’S SUSTAINABILITY PRIORITIES Optimising water management • APRR and AREA have unveiled new multi-year water resource protection programs within the existing investment plans • Water basins are designed to collect rainwater from the road, regulate it and treat it before
Slide 31: APRR and the French Government's Sustainability Priorities
APRR AND THE FRENCH GOVERNMENT’S SUSTAINABILITY PRIORITIES Preservation of the environment • APRR incorporates several measures in order to preserve and enhance the natural environment around the APRR network: − Trees and shrubs are planted along the motorway in order to preserve the landscape and a
Slide 32: A48/A480 Renewal Project – Focus on the Isère Viaduct
A48/A480 RENEWAL PROJECT – FOCUS ON THE ISÈRE VIADUCT Bringing together two structures from different eras and with different technologies to improve customer experience and safety • The Isère viaduct is both a complex and spectacular project currently taking place on the A480 at the entrance to Gre
Slide 33: Key Takeaways
KEY TAKEAWAYS The EU Health Pass has facilitated a strong return to “life as normal” over the summer in France APRR is well positioned to help the French Government meet their ESG commitments Despite COVID-19 restrictions, APRR is delivering on their capital projects Atlas Arteria > 2021 Investor Da
Slide 34: How Do We See the French Environment
HOW DO WE SEE THE FRENCH ENVIRONMENT Jean-Georges Vincent Malcor Portal-Barrault Non-Executive Director Chief Operating Officer Atlas Arteria Atlas Arteria > 2021 Investor Day > 34
Slide 35: Dulles Greenway
DULLES GREENWAY Renée Hamilton Dulles Greenway Chief Executive Officer Atlas Arteria > 2021 Investor Day > 35
Slide 36: The Dulles Greenway Team
THE DULLES GREENWAY TEAM A small but agile team with longevity and deep experience • Management at the Greenway is a small but agile team with a strong sense of comradery, highlighted Leesburg during the pandemic Rockville • Wealth of institutional knowledge Maryland − Several employees have been Du
Slide 37: Celebrating Our Achievements
CELEBRATING OUR ACHIEVEMENTS Significant achievements and progress made in 2021 Streamlined toll payment options to optimise operations, improve traffic flow and increase safety at the toll plazas Improved the layout of the maintenance yard for increased efficiency and safety Partnered with the Loud
Slide 38: Continued Focus on Capital Improvements
CONTINUED FOCUS ON CAPITAL IMPROVEMENTS Implementation of capital projects to improve the customer experience East End: West End: West End: Leesburg DTR Connector Lane Ramp Reconfiguration Bypass Improvements Widening (c. US$17m) (c. US$3m) (c. US$3m1) Invested more An additional eastbound lane The
Slide 39: Positioned for Growth
POSITIONED FOR GROWTH The Greenway is strategically located to capitalise on Loudoun County’s continued growth • Connects developing parts of western Loudoun Loudoun County Population Growth Median Household Income by Region (USD) County to the Dulles International Airport and major employment hubs
Slide 40: Toll Price Certainty at the Greenway
TOLL PRICE CERTAINTY AT THE GREENWAY Loudoun County residents have long supported plans to implement distance based tolling • Strong community preference for Distance On a stand alone basis, tolls on the Dulles Based Tolling (DBT) Greenway are in the mid to high end for On a per mile basis, the Dull
Slide 41: Key Takeaways
KEY TAKEAWAYS The team at Dulles Greenway is providing value to both customers and the broader community via capital projects and ESG initiatives Dulles Greenway is positioned in a growth corridor with strong fundamentals Continuing to work with stakeholders to deliver distance based tolling to our
Slide 42: How Do We See the Virginian Environment
HOW DO WE SEE THE VIRGINIAN ENVIRONMENT Pierce James Homer Lerner Director of Dulles Director US Operations Greenway & former Virginia Secretary of Transport Atlas Arteria > 2021 Investor Day > 42
Slide 43: Warnow Tunnel
WARNOW TUNNEL Yvonne Osterkamp Warnow Tunnel Managing Director Atlas Arteria > 2021 Investor Day > 43
Slide 44: The Warnow Tunnel Team
THE WARNOW TUNNEL TEAM Warnow Tunnel has facilitated the development of the region • Warnow Tunnel has a team of 36 employees based in Rostock • High performing team Warnemünde − Survey undertaken in 2020 revealed 83% of respondents either satisfied or very satisfied with Warnow Tunnel Warnow Tunnel
Slide 45: Sustainability Developments
SUSTAINABILITY DEVELOPMENTS Safety is paramount, but we are also focused on our people, customers and community and environmental stewardship Safety Our People • Implement recommendations of the • Safety measure taken to protect Warnow customer behaviour study employees during the COVID-19 to improv
Slide 46: Key Takeaways
KEY TAKEAWAYS The Warnow Tunnel is a critical transport route for the people of Rostock Continued focus on ESG to improve customer experience The team is well equipped to position the business for continued success Atlas Arteria > 2021 Investor Day > 46
Slide 47: Financial Update
FINANCIAL UPDATE Nadine Lennie Chief Financial Officer Atlas Arteria > 2021 Investor Day > 47
Slide 48: Capital Management
CAPITAL MANAGEMENT Managing capital for a sustainable business • Objective: Dual focus on cash flow and balance sheet to enable flexibility in funding for Maintaining balance future growth between debt and equity − Atlas Arteria corporate balance sheet held A$130m equivalent as at 30 June, and no ho
Slide 49: Sensitivity of Portfolio to Change in Interest Rates and CPI
SENSITIVITY OF PORTFOLIO TO CHANGE IN INTEREST RATES AND CPI Our businesses are positively impacted by increases in CPI, and rising interest rates have limited impact • Strong positive multiplier to rising inflation with tolls linked to inflation, and year-on-year growth leading to attractive valuat
Slide 50: Thank You Q&A
THANK YOU Q&A Contact for investors Australia: 1800 621 694 International: +61 (0)438 493 692 Atlas Arteria > 2021 Investor Day > 50
Slide 51: Sources
SOURCES Atlas Arteria > 2021 Investor Day > 51
Slide 52: Glossary of Terms
GLOSSARY OF TERMS ADELAC Autoroute des deux Lacs H1 First half S&P Standard & Poor’s ATLAX Atlas Arteria Limited H2 Second half VKT Vehicle kilometres travelled ATLIX Atlas Arteria International Limited HQ Head Office Warnow bn billions GHG Greenhouse Gas Tunnel Warnowquerung GmbH & Co., KG CPI Cons