Atlas Arteria · ASX:ALX
Atlas Arteria — Macquarie Atlas Roads — UBS Australian Emerging Companies Conference 2012
22 slides from Atlas Arteria's conference presentation, April 2012
Slide 1: Macquarie Atlas Roads
MACQUARIE ATLAS ROADS UBS Australian Emerging Companies Conference April 2012 1
Slide 2: Disclaimer
Disclaimer Di l i 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 manager/advise
Slide 3: Disclaimer
Disclaimer H Hong K Kong This document has been prepared and intended to be disposed solely to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap. 571) of Hong Kong for the purpose of providing preliminary information and does not constitute any offer to the pub
Slide 4: Presentation agenda
Presentation agenda 1. Overview 5 2. APRR/Eiffarie 11 3. Outlook 20 4. Questions 22 4
Slide 5: 1. Overview
1. Overview
Slide 6: Snapshot
Snapshot MQA was created out of the restructure of Macquarie Infrastructure Group into two separate ASX-listed toll road groups, MQA and Intoll Listing Date 25 January 2010 Market Capitalisation1 $773,025,524 ASX Ranking Top 200 Toll Roads in Portfolio 6 Weighted average length of concession life re
Slide 7: Strategy & objectives
Strategy & objectives Commence dividend payments1 Manage debt mat maturities rities over time / de-risk assets Explore and maximise value by way of sale or securing dividend Deliver growth in the existing portfolio 1. Based on current outlook, dividends from MQA are anticipated to commence in 2013.
Slide 8: Portfolio
Portfolio Second largest g network in France and MQA’s flagship asset Bypasses the City of Birmingham (UK) and the Located in Loudoun County, County M6 motorway one of the fastest growing counties in the USA Runs full length of northern Indiana; a critical part of the inter-state route betwe
Slide 9: Structure
Structure Protects asset values and is integral to MQA’s strategy of value recovery MQA has no corporate level debt and A$16.1m in available cash1 Each asset is in a separate holding company structure All asset level debt is project finance, with no recourse to MQA or any other portfolio asset
Slide 10: Value proposition
Value proposition MQA is an investment vehicle for APRR/Eiffarie and Dulles Greenway plus additional value from other assets MQA = APRR/Eiffarie + Dulles Greenway + Other assets APRR/Eiffarie a mature operating network with an EBITDA of €1,398.6m1 representing a CAGR of 3.7% since 2007 APRR/Eiff
Slide 11: 2. APRR/Eiffarie
2. APRR/Eiffarie
Slide 12: APRR overview
APRR overview Europe’s fourth-largest motorway company operates a motorway network of almost 2,300km MQA ownership: ~19.4%1 Remaining concession life of 21 years Regulated toll increases: — 2011 - 2013: annual tariff increase of 85% CPI ex tobacco plus 0.5% under Contrats de Plan — Post 2013:
Slide 13: APRR network development
APRR network development 50 years old and close to completion with additional 18km planned up to 2015 APRR historical network build-out (km) 2011 Network length: 2,264km 1961 SAPL established to build 1994 and operate A6 (Paris- Addition of AREA Lyon) Network length >1,500km 1987 1963 Network length
Slide 14: APRR network investment
APRR network investment Over the last 6 years, €2.4bn has been spent to grow, improve and maintain the network APRR historical capital expenditure (€m) 500 450 92 99 400 84 350 88 300 91 250 171 104 303 104 200 343 150 215 123 100 188 159 50 81 45 24 54 - 2006 2007 2008 2009 2010 2011 Construction A
Slide 15: APRR EBITDA and French performance
APRR performance Robust performance demonstrated throughout economic downturn and oil spikes APRR EBITDA (€m), Average French diesel price and French GDP 1 50 1.50 1 399 1,399 5 0% 5.0% 1,326 1,244 1,265 1,208 1,068 974 2.5% French GDP F diesel price (€/L)) age French 1.25 0.0% Avera P (%) 1.00 -2.5
Slide 16: APRR traffic analysis
APRR traffic analysis Traffic grew 1.6% in 2011, equivalent to 3.3% above 2007 levels Light vehicle traffic (which comprised 85% of total VKT in 2011) is above pre-recession levels while heavy vehicles have not yet fully recovered H Heavy hi l performance vehicle f iis closely l l correlated l d
Slide 17: APRR operational efficiencies
APRR operational efficiencies Total costs increased 1.5% in 2011 however EBITDA margin continues to improve Operating Expenses (€m) Taxes and duties increased 10% reflecting EBITDA 69.2% increases in TAT and CET 650 68 4% 68.4% Margin 68.0% — TAT increased due mainly to higher traffic and an incre
Slide 18: APRR cash generation
APRR cash generation APRR generates substantial cash flow in excess of profit Surplus cash to fund capex and debt maturities (supplemented by bond issues) Group expected to naturally deleverage over time Tax grouping provides additional benefit from deductions at Eiffarie APRR profit vs operat
Slide 19: APRR cash flow to MQA
APRR cash flow to MQA Current structure is a legacy of original Simplified holding structure1 acquisition in 2006 and CNA debt terms MQA 19.4% 19 4% of free cash flow Holdco debt carries a margin of 300bps Eiffarie and cash sweep of 25% free cash flow (Holdco debt) APRR distributions 100% profit r
Slide 20: 3. Outlook
3. Outlook
Slide 21: 2012 Outlook
2012 Outlook Growing the existing portfolio APRR — 1Q ttraffic ffi expected t d to t be b weakk but b t improving i i for f 2012 b based d on lleading di iindicators di t — Toll increase in February 2012 to benefit revenue Other O portfolio f assets — Improving traffic performance for US roads g
Slide 22: 4. Questions
4. Questions
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