Atlas Arteria · ASX:ALX
Atlas Arteria — UBS Australasia Conference 2022
21 slides from Atlas Arteria's conference presentation, Nov 14, 2022
Slide 1: Presentation to UBS Australasia Conference
14 November 2022 ASX RELEASE Presentation to UBS Australasia Conference Atlas Arteria (ASX:ALX) attaches the presentation prepared for today’s UBS Australasia Conference. ____________________________________________________________________________________ For further information please contact: Inve
Slide 2: Atlas Arteria Limited
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://atlasarteria.com/stores/_sharedfiles/US_Ownership/AtlasArte
Slide 3: UBS Australasia Conference 2022
UBS AUSTRALASIA CONFERENCE 2022 14 November 2022 Atlas Arteria → UBS Australasia Conference 2022 → 1 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Photo of AREA, source: Photec
Slide 4: Important Information
Important Information Disclaimer Forward Looking Statements Basis of Preparation The information in this presentation is given in good faith and This presentation may contain forward-looking statements All financial results are presented in Australian dollars unless derived from sources believed to
Slide 5: Important Information
Important Information U.S Ownership Restrictions Investors should note that Atlas Arteria neither has been, or will To monitor compliance with these foreign ownership be, registered under the U.S. Investment Company Act 1940 (the restrictions, the ASX’s settlement facility operator (“ASTC”) has “U.S
Slide 6: 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 with strategic position in APRR and agreement executed to acquire majority interest in Chicago Skyway Toll prices positively leveraged to hig
Slide 7: The Atlas Arteria Business
THE ATLAS ARTERIA BUSINESS Atlas Arteria’s portfolio to expand from four to five business with the Chicago Skyway acquisition expected to complete by the end of 2022 Atlas Arteria Portfolio Virginia, United States APRR ADELAC DULLES GREENWAY WARNOW TUNNEL Dulles Greenway Luxembourg Ownership: 31.14%
Slide 8: APRR Traffic Performance
APRR TRAFFIC PERFORMANCE An efficient, safe and cost effective network for customers APRR Traffic (as at 30 September 2022) Light Vehicle VKT Heavy Vehicle VKT Trips (VKTbn) 6.7 6.6 4.9 4.7 5.1 3.6 4.0 1.0 1.0 0.9 1.0 1.0 1.0 0.9 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 • APRR is a 2,386km motorway
Slide 9: Resiliance of APRR Network
RESILIANCE OF APRR NETWORK APRR’s tolling escalation framework and high margins have limited the impact of economic downturns APRR EBITDA has remained resilient despite periods of negative GDP growth Year where France annual real GDP growth was negative EBITDA France annual real GDP growth 6.8 Franc
Slide 10: Growth of the APRR Business
GROWTH OF THE APRR BUSINESS The French Government compensates for capex investment through toll increases or concession extensions on a project by project basis 2006 2014 2016 2023 APRR Management Contract Maurice Lemaire Tunnel Investment Plan privatised merged with APRR Concession (in process)1 To
Slide 11: Opening of the A79
OPENING OF THE A79 The completion of the A79 upgrade is an important milestone in the expansion of the APRR network Growing the network and improving safety for our customers • The A79 (also known as RCEA) commenced tolling on 4 November 2022 • The 48-year concession contract was signed with the Fre
Slide 12: Warnow Tunnel Traffic Performance
WARNOW TUNNEL TRAFFIC PERFORMANCE A reliable, cost-effective way for customers to travel across the river Warnow Tunnel Traffic (as at 30 September 2022) 1.3 1.2 1.1 1.1 1.1 1.0 0.9 Trips (millions) Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 • Warnow Tunnel is a 2km toll road with two lanes in each d
Slide 13: Dulles Greenway Traffic Performance
DULLES GREENWAY TRAFFIC PERFORMANCE Connecting growing, prosperous communities to connector roads and Washington DC Dulles Greenway Traffic (as at 30 September 2022) 3.2 3.2 3.2 3.2 3.0 2.7 2.2 Trips (millions) Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 • Dulles Greenway is a 22km tolled motorway in
Slide 14: Acquisition of Majority Interest in Chicago Skyway
ACQUISITION OF MAJORITY INTEREST IN CHICAGO SKYWAY Atlas Arteria to acquire a 66.67% majority interest in the Chicago Skyway Toll Bridge (“Chicago Skyway” or “Skyway”) Acquisition highlights – delivering on strategy and building a platform for continuing growth Platform for Growth • Ensures Atlas Ar
Slide 15: Skyway Acquisition Continues to Build the Platform
SKYWAY ACQUISITION CONTINUES TO BUILD THE PLATFORM Acquisition of majority interest in Skyway is an important step in Atlas Arteria’s growth as a global owner, operator and developer of toll roads 2018 – today Why acquire Skyway? Strengthen capital Internalisation Diversify and de-risk Leverage inte
Slide 16: Atlas Arteria Concession Life
ATLAS ARTERIA CONCESSION LIFE Acquisition of Skyway doubles Atlas Arteria’s average concession life, underpinning long-term value and cash flows for securityholders Concession Life1,2 APRR 2035 expiry3 13 years Warnow Tunnel 2053 expiry 31 years Dulles Greenway 2056 expiry 33 years ADELAC 2060 expir
Slide 17: Attractive Tolling Regime with Predictable Escalation
ATTRACTIVE TOLLING REGIME WITH PREDICTABLE ESCALATION Escalation predictability delivering c.19% toll growth over the next 2 years Toll Escalation Set at Maximum of Economic Factors and 2.0% Floor, with Macroeconomic Indicators Based on a 2-year Look-back 2023A 2024E 2022A (Based on 2021 variables,
Slide 18: Long-Term Benefits of Attractive Tolling Regime
LONG-TERM BENEFITS OF ATTRACTIVE TOLLING REGIME Skyway’s toll escalation formula delivers compounded toll escalation above individual macroeconomic variables Implied Toll Escalation Growth of 1.5x Inflation Long-Term Value Driven by an Attractive Tolling Regime • Skyway’s concession agreement allows
Slide 19: Transition of Chicago Skyway
TRANSITION OF CHICAGO SKYWAY On track to reach financial close of the acquisition in late 20221 Atlas Arteria will focus on the below key areas to ensure a smooth transition and long term successful relationship • Engage and collaborate transparently with Ontario Teachers' Pension Plan 1 Governance
Slide 20: Focus on Internal Growth Opportunities
FOCUS ON INTERNAL GROWTH OPPORTUNITIES Next 12 to 24 months to be focused on executing on internal growth opportunities and transition of Chicago Skyway APRR Dulles Greenway Warnow Tunnel • Ongoing dialogue with French Government • Remain focused on developing a long- • Warnow Tunnel now contributin
Slide 21: Thank You Q&A
THANK YOU Q&A For further information please contact: Investors: Tess Palmer Director, Investor Relations +61 (0) 438 493 692 investors@atlasarteria.com Atlas Arteria → UBS Australasia Conference 2022 → 19