Atlas Arteria · ASX:ALX
Atlas Arteria — Investor Presentation (May 2020)
50 slides from Atlas Arteria's investor presentation, May 28, 2020
Slide 1: Equity Raising: Restructuring the Balance Sheet for Flexibility and Growth
Atlas Arteria Equity Raising Restructuring the Balance Sheet for Flexibility and Growth 28 May 2020 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 2: Disclaimer
2 Disclaimer Atlas Arteria comprises Atlas Arteria Limited (ACN 141 075 201) This Presentation is based on summary information about the No person is authorised to give any information or make any (“ATLAX”) and Atlas Arteria International Limited (Registration No. current activities of Atlas Arteria
Slide 3: General Securities Warning; Not for distribution in the United States; Non-IFRS information
3 General Securities Warning Not for distribution in the Non-IFRS information United States This Presentation is for information purposes only and is not a This Presentation may not be distributed or released in the United This Presentation includes certain financial measures that are not prospectus
Slide 4: Forward-looking statements; Eligibility of investors
4 Forward-looking statements Eligibility of investors This Presentation may contain certain forward-looking To the maximum extent permitted by the law, ATLAX, ATLIX, Investors acknowledge and agree that determination of eligibility of statements. The words “anticipate”, “believe”, “expect”, their re
Slide 5: Contents
5 Contents 01 Offer Summary 02 Business Update 03 Equity Raising Overview 04 Investment Proposition Appendices NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 6: Offer Summary
6 1 Offer Summary Photo of APRR, source: APRR NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 7: Restructuring the Balance Sheet for Flexibility and Growth
7 1. Restructuring the Balance Sheet for Flexibility and Growth Equity raising via a A$420 million underwritten placement and SPP • Atlas Arteria today announces an equity raising to restructure its balance sheet, enhance resilience in uncertain times and provide additional capacity for growth Equit
Slide 8: Business Update
8 2 Business Update Photo of APRR, source: APRR NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 9: Managing Through the COVID-19 Pandemic with Signs of Improved Traffic
9 2. Managing Through the COVID-19 Pandemic with Signs of Improved Traffic Core focus on the safety of our people and customers, business continuity and financial resilience Health and safety our • The safety of our people and customers is our #1 priority primary focus • Appropriate safety and busin
Slide 10: Liquidity Update
10 2. Liquidity Update Atlas Arteria is well positioned to weather the COVID-19 pandemic with strong liquidity Item Amount (A$m)1 • At the corporate level, Atlas Arteria will continue to be Existing cash2 311 Atlas Arteria will have well placed from a liquidity perspective with c. A$118 c. A$118 mil
Slide 11: Capital Management Strategy
11 2. Capital Management Strategy Managing capital for a sustainable business The approach • Dual focus on cash flow and balance sheet to enable flexibility in funding for future growth Maintaining balance between debt and equity funding over time − MIBL Facility repayment provides significantly inc
Slide 12: APRR Business Update
12 2. APRR Business Update APRR continues to operate through COVID-19, while focusing on the safety of its people and customers • The French Government has implemented economic support schemes totalling €450 billion • First phase of easing of restrictions commenced on 11 May and continues until 2 Ju
Slide 13: APRR Traffic Update
13 2. APRR Traffic Update Traffic is recovering as lock down measures are eased APRR traffic rebounding strongly APRR change in traffic in 2020 (% change vs same week prior year) Ascension 11 May: easing Day long • Traffic started to rebound in late April of restrictions 11 May: weekend even before
Slide 14: RCEA (A79) Project Update
14 2. RCEA (“A79”) Project Update The A79 project provides an opportunity for APRR to operate the first free flow concession in France Project status Project description • A part of the Central Europe Atlantic Road (RCEA), a • The A79 Project will upgrade 89km of existing sub-section of the RCEA to
Slide 15: Opportunity Pipeline in France
15 2. Opportunity Pipeline in France Equity raising strategically positions APRR to take advantage of new projects • In February 2018, the Strategic Committee for Infrastructure in France identified a number of road projects on its infrastructure agenda − As part of this plan, by 2027, France expect
Slide 16: Dulles Greenway Business Update
16 2. Dulles Greenway Business Update Northern Virginia still in lock down with unclear timing for easing of restrictions • Border limitations imposed in February 2020 on entry of Chinese foreign nationals, with similar limitations imposed on a range of other countries from March 2020 • Financial st
Slide 17: Dulles Greenway Traffic Update
17 2. Dulles Greenway Traffic Update Traffic at Dulles Greenway is recovering slowly as restrictions remain in place Dulles Greenway traffic Dulles Greenway change in traffic in 2020 (% change vs same week prior year) recovering slowly % change vs same week prior year • Major snow events over the Ja
Slide 18: Warnow Tunnel Business Update
18 2. Warnow Tunnel Business Update Limited COVID-19 outbreak in Rostock • The German government implemented temporary border controls and limited non-essential travel from 16 March − Gradual reopening of different sectors from 6 May • Mecklenburg-Vorpommern (state in which Warnow Tunnel operates) c
Slide 19: Warnow Tunnel Traffic Update
19 2. Warnow Tunnel Traffic Update Smaller impact on traffic from COVID-19 given low case numbers in the region Warnow Tunnel traffic has Warnow Tunnel traffic in 2020 (% change vs same week prior year) rebounded strongly Ascension Day long weekend % change vs same week prior year 30.0% • Traffic ha
Slide 20: Equity Raising Overview
20 3 Equity Raising Overview Photo of APRR, source: APRR NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 21: Equity Raising Overview
21 3. Equity Raising Overview • Fully underwritten placement ("Placement") to raise A$420 million Offer Structure & Size • A non-underwritten Security Purchase Plan (“SPP”) to raise up to A$75 million 1 • Placement proceeds, together with cash relating to the H2 2019 distribution which has now been
Slide 22: Security Purchase Plan Details
22 3. Security Purchase Plan Details • Atlas Arteria will also offer Eligible Securityholders1 the opportunity to participate in a non-underwritten SPP • Eligible Securityholders will have the opportunity to apply for up to A$30,000 of New Stapled Securities free of any brokerage and SPP overview ot
Slide 23: Offer Timetable
23 3. Offer Timetable Placement Date Trading halt, announcement of Placement and SPP 28 May 2020 Placement bookbuild 28 May 2020 Trading halt lifted and announcement of Placement results 29 May 2020 Settlement of New Stapled Securities issued under the Placement 2 June 2020 Allotment and normal trad
Slide 24: Funding Sources and Uses
24 3. Funding Sources and Uses Sources1 €m A$m Placement equity raising 244 420 Cancelled H2 2019 distribution guidance 92 158 Cash on hand 20 35 Total Sources 356 613 Uses1 €m A$m Repayment of existing MIBL Facility 350 603 Equity raising transaction costs 6 10 Total Uses 356 613 • Additional proce
Slide 25: Pro-forma Balance Sheet
25 3. Pro-forma Balance Sheet Atlas Arteria reported Impact of APRR Impact of Atlas Arteria balance sheet Impact of APRR Distribution Impact of Repayment of MIBL pro-forma A$m (as at 31 December 2019) Transaction4 (via MAF2)5 Placement1 Facility3 balance sheet2 Cash and cash equivalents 1,450 (1,245
Slide 26: Pro-forma Balance Sheet – Basis of Preparation
26 3. Pro-forma Balance Sheet – Basis of Preparation Basis of Preparation Notes to the Pro-forma Balance Sheet • Atlas Arteria prepares its financial statements in accordance with Australian 1. The impact of equity raising includes the costs of the capital raising and Accounting Standards. The accou
Slide 27: Investment Proposition
27 4 Investment Proposition Photo of APRR, source: APRR NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 28: Attractive Investment Proposition
28 4. Attractive Investment Proposition Atlas Arteria is well positioned to weather the COVID-19 pandemic with strong liquidity and improved flexibility to pursue future growth opportunities following the repayment of the MIBL Facility Ongoing operational focus on safety, our people and customers St
Slide 29: Thank You
29 Thank You Q&A Contact for investors Jeanette Royce| Director, Investor Relations Australia : 1800 621 694 International: +61 (0) 438 493 692 investors@atlasarteria.com Photo of APRR, source: APRR NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 30: A Further Information
30 A Further Information Photo of APRR, source: APRR NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 31: MIBL Facility and APRR Covenants
31 MIBL Facility and APRR Covenants The MIBL Facility has more restrictive terms than the APRR facilities • APRR default leverage ratio of 7.0x and no lock-up test • The MIBL Facility has a default leverage ratio of 6.7x, reducing to 6.0x, and a lock-up leverage ratio of 6.2x, reducing to 5.5x • The
Slide 32: Atlas Arteria Summary Corporate Structure
32 Atlas Arteria Summary Corporate Structure Stapled ATLAX (Australia) ATLIX (Bermuda) 13.43% 86.57% economic interest (via loans) Dulles Greenway 100% Third Party Investors Eiffage MIBL 33.71% 4.00% 62.29% Eiffage MAF / MAF2 100% Warnow Tunnel 50% + 1 share 50% - 1 share Tax consolidated group Fina
Slide 33: B Key Risks
33 B Key Risks Photos of Dulles Greenway, source: David Madison photography NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 34: Key Risks
34 Key Risks INTRODUCTION Atlas Arteria’s financial position and performance, its distributions and the market price of Atlas Arteria securities may be adversely affected, sometimes materially, by a number of risk factors. Holders of Atlas Arteria securities (Atlas Arteria Securityholders) should ac
Slide 35: Key Risks
35 Key Risks Tolling and Revenue Collection Increases in tolls for many of Atlas Arteria’s toll roads are related to or require certain economic factors to be met such as GDP or inflation levels, sometimes in combination with a fixed benchmark. Movement (including as a consequence of the COVID-19 pa
Slide 36: Key Risks
36 Key Risks Foreign Exchange Risk All of Atlas Arteria’s businesses are located offshore, with cash reserves being the majority of Atlas Arteria’s Australian dollar denominated assets. This exposes Atlas Arteria Securityholders to fluctuations in foreign exchange rates, which affect the values of t
Slide 37: Key Risks
37 Key Risks Major Repairs, Maintenance Capital Expenditure and General Operating Costs Under the Concession Agreements, the concessionaires of each of Atlas Arteria’s toll roads must meet the cost of all major repairs and maintenance to the toll roads and general operating expenses – with no entitl
Slide 38: Key Risks
38 Key Risks Reliance on Key Contractors and Counterparty Risks Atlas Arteria may engage third party contractors and counterparties, including construction contractors, to carry out development and construction activities and to provide certain systems and services, including those relating to tolli
Slide 39: Key Risks
39 Key Risks Ability to Comply with Loan Terms and/or Refinance Risk Refinance risk is the risk that debt facilities may not be able to be refinanced on acceptable terms at or before their maturity, leading to potential loan default, economic loss or investment write-off. The investments within Atla
Slide 40: Key Risks
40 Key Risks Tax Risk Changes in tax law, tax rules or their interpretation may result in changes to the existing tax treatments in relation to Atlas Arteria’s underlying investments, which could materially adversely affect Atlas Arteria’s financial performance, distributions and the market price of
Slide 41: Key Risks
41 Key Risks Equity Markets Risks There are risks associated with any investment in listed securities. The market price of listed securities such as Atlas Arteria securities is affected by numerous factors. These factors include but are not limited to factors such as the impact of COVID-19 (or other
Slide 42: Key Risks
42 Key Risks OFFER SPECIFIC RISKS Dilution Risks You should note that if you do not participate in the Placement or the SPP, then your percentage security holding in Atlas Arteria will be diluted and you will not be exposed to future increases or decreases in Atlas Arteria’s security price in respec
Slide 43: Key Risks
43 Key Risks OFFER SPECIFIC RISKS (cont’d) Underwriting Risk Atlas Arteria has entered into a placement agreement (Placement Agreement) with UBS AG, Australia Branch and Macquarie Capital (Australia) Limited (Joint Lead Managers), pursuant to which the Joint Lead Managers have agreed to fully underw
Slide 44: C Placement Jurisdictions
44 C Placement Jurisdictions NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 45: Foreign Selling Restrictions
45 Foreign Selling Restrictions This document does not constitute an offer of new stapled securities ("New Stapled Securities") of Atlas Arteria in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Stapled Securities may no
Slide 46: Foreign Selling Restrictions
46 Foreign Selling Restrictions This document does not constitute an offer of new stapled securities ("New Stapled Securities") of Atlas Arteria in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Stapled Securities may no
Slide 47: Foreign Selling Restrictions
47 Foreign Selling Restrictions This document does not constitute an offer of new stapled securities ("New Stapled Securities") of Atlas Arteria in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Stapled Securities may no
Slide 48: Foreign Selling Restrictions
48 Foreign Selling Restrictions This document does not constitute an offer of new stapled securities ("New Stapled Securities") of Atlas Arteria in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Stapled Securities may no
Slide 49: Foreign Selling Restrictions
49 Foreign Selling Restrictions This document does not constitute an offer of new stapled securities ("New Stapled Securities") of Atlas Arteria in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Stapled Securities may no
Slide 50: atlasarteria.com
atlasarteria.com NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS