Atlas Arteria · ASX:ALX
Atlas Arteria — Macquarie Atlas Roads — Macquarie Australia Conference 2017
28 slides from Atlas Arteria's conference presentation, May 2017
Slide 1: Macquarie Atlas Roads
Macquarie Atlas Roads Macquarie Australia Conference May 2017
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 ha
Slide 4: Table of Contents
Table of Contents 01 Overview 4 02 APRR 7 03 Dulles Greenway 18 04 Summary 25 MACQUARIE ATLAS ROADS PAGE 3
Slide 5: Overview
1 Overview MACQUARIE ATLAS ROADS
Slide 6: MQA portfolio
MQA portfolio ASX listed global infrastructure developer, operator and investor, with a A$3.1bn market capitalisation1 MQA APRR ADELAC Greenway Warnow Tunnel 20.14% 20.15%2 100%3 70% 20km4 commuter road 22km commuter route into 2,323km4 motorway network 2km toll road and tunnel in connecting Annecy,
Slide 7: Portfolio focus and strategy
Portfolio focus and strategy Providing investors with access to long-dated, predictable and growing cash flows Strategy to grow distributions Improving total securityholder returns and enhance portfolio value Active asset Disciplined capital MQA Distributions to Securityholders management management
Slide 8: APRR
2 APRR MACQUARIE ATLAS ROADS
Slide 9: APRR overview
APRR overview APRR is the concessionaire of a 2,323km1 motorway network in the east of France MQA ownership 20.14% APRR Concession Expiry: Nov 2035 Road Length: 1,895km AREA Concession Expiry: Sep 2036 Road Length: 408km ADELAC2 Concession Expiry: Dec 2060 Road Length: 20km1 1. Note the APRR network
Slide 10: APRR results
APRR results Strong operating performance, resulting from continued growth across light and heavy vehicle traffic supplemented by the annual February 2016 toll increases 2016 Results 2016 Traffic and Revenue by Vehicle Type 23.1bn VKT 32% Traffic +3.7% 15% Light vehicles Traffic Heavy vehicles Reven
Slide 11: APRR light vehicle traffic correlation
APRR light vehicle traffic correlation Light vehicle traffic trending above growth in real household consumption and disposable income Light Vehicles and Economic Indicators1,2 115 110 105 100 95 90 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LV Traffic Real GDP Real Household D
Slide 12: APRR heavy vehicle traffic correlation
APRR heavy vehicle traffic correlation Heavy vehicle traffic continues to be correlated to overall economic activity Heavy Vehicles and Economic Indicators1,2 Rebased to June 20132 120 120 115 115 110 105 110 100 Rebased to June 2013 105 95 90 100 85 80 95 2005 2006 2007 2008 2009 2010 2011 2012 201
Slide 13: French lending environment
French lending environment Continued lending growth to non-financial corporations supports investment and expansion of business activity by domestic firms Loans to Non-Financial Corporations – Outstanding Amounts (Annual Growth Rate)1 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% - Jul-12 Jan-13 Jul-13 Jan-14 Jul-1
Slide 14: APRR earnings stability
APRR earnings stability Resilient earnings demonstrated through economic cycles APRR EBITDA and France GDP Growth1 €1,750m 1,685 6.0% 1,589 1,520 €1,500m 1,475 1,399 1,428 4.0% 1,326 1,265 €1,250m 1,208 1,244 1,068 2.0% €1,000m 0.0% €750m (2.0%) €500m 924 9412 974 841 888 (4.0%) €250m €0m (6.0%) 200
Slide 15: APRR financing costs
APRR financing costs APRR net interest decreased €44m in 2016, representing 16% reduction from pcp APRR credit ratings updated by both Standard & Poor’s (S&P) and Fitch during 2016: – S&P upgraded rating to A- (Stable Outlook) in November – Fitch revised rating to BBB+ (Positive Outlook) in Octobe
Slide 16: APRR operations
APRR operations Improving operations through active management in 2016 Harnessing Technology Environmental Investment Customers and Employees \ 97.5% of tolls collected via automated Committed to invest €50 million in Customer satisfaction ratings >95% transactions during 2016 green transporta
Slide 17: APRR current investments
APRR current investments Continued focus on growing and improving the existing network Network Investment Current Investment Projects Underway 2014-2018 Management Contract 2015 Stimulus Package 1) RCEA FRANCE interchange near Mâcon Start: 2016 Finish: 2020 2 Ongoing investment via Stimulus Packag
Slide 18: APRR commitment to network investment
APRR commitment to network investment Ongoing commitment to French infrastructure development Motorway Investment Plan APRR / AREA motorway investment January 2017 in-principle agreement1 €222m investment €800m investment plan across French motorway network Partly financed by local authorities
Slide 19: Dulles Greenway
3 Dulles Greenway MACQUARIE ATLAS ROADS
Slide 20: Dulles Greenway overview
Dulles Greenway overview Dulles Greenway is a 22km toll road in Loudoun County, northern Virginia Concession expiry Feb 2056 MQA ownership 100% economic interest1 MQA exercised pre-emptive right in Feb 2017 to acquire remaining 50% economic interest for US$445m − Consolidates ownership of a core por
Slide 21: Dulles Greenway 2016 results
Dulles Greenway 2016 results Strong traffic performance underpinned by continued corridor population growth and development Financial Performance1 vs Traffic US$m ADT 53,260 ADT 100 91.7 54,000 90 85.1 Traffic +4.3% 78.9 52,000 17.6 80 74.9 72.4 16.9 70 65.3 67.0 15.9 64.1 16.1 50,000 US$91.7m 14.1
Slide 22: Dulles Greenway traffic
Dulles Greenway traffic 3.7% average daily traffic growth over the last 12 months, with workday traffic growth outpacing non-workday growth, indicative of increased commuter usage and continued corridor growth Dulles Greenway Traffic Segmentation1 Quarterly Traffic Performance 114 ADT2 60,000 112 AD
Slide 23: Dulles Greenway corridor development
Dulles Greenway corridor development Well positioned to provide capacity as corridor develops Dulles Greenway operates as part of the broader transportation network within the greater Washington region Corridor network continues to develop, including the recent Gloucester Parkway extension (Aug
Slide 24: Dulles Greenway operations
Dulles Greenway operations Commitment to enhancing operations and service Harnessing Technology Operational Improvement Community and Safety 93.0% non-cash transactions in Improved EBITDA margin at Annual Drive for Charity campaign 2016, up 1% on pcp 80.9%1 with US$2.7m raised since 2006 82.
Slide 25: Dulles Greenway debt profile
Dulles Greenway debt profile Fixed-rate debt profile at TRIP II; amortisation locked in until 2056 with no refinancing requirements Existing debt profile of five senior debt tranches with a balance of US$1,028.5 million1 Bonds rated BBB- by S&P, Ba1 by Moody’s and BB+ by Fitch; insured by NPFGC2
Slide 26: Summary
Summary Continued focus on growing distributions and portfolio value Active asset management Disciplined capital management Financial performance Continual investment Investment opportunities Distribution growth Growth in traffic, revenue Retained asset level cash Investing in accretive, 18.
Slide 27: Questions
3 Questions MACQUARIE ATLAS ROADS
Slide 28: Macquarie Atlas Roads
Macquarie Atlas Roads Macquarie Australia Conference May 2017
Macquarie Atlas Roads — Macquarie Australia Conference 2017 on 6ix