Atlas Arteria · ASX:ALX

Atlas Arteria — Macquarie Atlas Roads — Macquarie Australia Conference 2016

27 slides from Atlas Arteria's conference presentation, May 2016

  1. Slide 1: Macquarie Atlas Roads - Macquarie Australia Conference

    Macquarie Atlas Roads Macquarie Australia Conference May 2016

  2. 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

  3. 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

  4. Slide 4: Table of contents

    Table of contents 01 Overview 4 02 APRR 7 03 Dulles Greenway 19 04 Summary 25 MACQUARIE ATLAS ROADS PAGE 3

  5. Slide 5: Overview

    1 Overview MACQUARIE ATLAS ROADS

  6. Slide 6: MQA portfolio

    MQA portfolio Global infrastructure operator and developer listed on ASX 200 with market capitalisation of A$2.5bn1 MQA (50%)2 (100%)3 (20.14%) (70%) Warnow Dulles Tunnel APRR 70% 20.14% Greenway 50%2 M6 Toll 100%3 2,323km motorway 22km commuter Located in network in route into Germany and UK easter

  7. Slide 7: MQA value proposition

    MQA value proposition Delivering distribution growth and enhancing portfolio value MQA Distributions (cps) Distributions Guidance 18.01 Distribution Capital growth  16.0 growth 13.2 9.0  Distribution growth underpinned by improved operational performance of existing portfolio assets  Retained ass

  8. Slide 8: APRR

    2 APRR MACQUARIE ATLAS ROADS

  9. Slide 9: APRR overview

    APRR overview APRR is the concessionaire of a 2,323km motorway network located in the east of France 2015 Performance Concessions Traffic APRR 2.7% Concession Expiry: 22.2bn VKT Nov 2035 Road Length: 1,894km Revenue AREA Concession Expiry: 3.0% Sep 2036 €2,213.8m Road Length: 410km ADELAC (49.9%) EB

  10. Slide 10: APRR snapshot

    APRR snapshot Growth maintained through economic cycles €m APRR EBITDA1 and France GDP Growth2 1,750 3.0% 1,589 1,520 1,500 1,475 2.0% 1,399 1,428 1,326 1,250 1,208 1,244 1,265 1.0% 1,000 (0.0%) 750 (1.0%) 500 1,068 (2.0%) 924 9413 974 841 888 250 (3.0%) 0 (4.0%) 2001 2002 2003 2004 2005 2006 2007 2

  11. Slide 11: APRR milestones

    APRR milestones Further value delivered through key achievements during the past 12 months In-principle agreement reached with Successful APRR bond issuances: Toll increases implemented on the French State: €1bn of bonds issued at or below 1.5%, 1 February 2016: APRR & AREA concession extensions rep

  12. Slide 12: APRR traffic

    APRR traffic Total 2015 traffic up 2.7% against pcp, reaching 22.2bn vehicle kilometres travelled (VKT) Light Vehicles (Annual) Heavy Vehicles (Annual) VKTbn VKTbn 19.5 3.4 +2.9% +2.6% 19.0 3.3 18.5 3.2 18.0 3.1 17.5 3.0 17.0 2.9 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015

  13. Slide 13: APRR traffic correlation

    APRR traffic correlation Light vehicle traffic remains correlated to real household disposable income Heavy vehicle traffic remains correlated to French manufacturing and imports APRR Light Vehicles and Economic Indicators1,2 APRR Heavy Vehicles and Economic Indicators1,2 115 115 110 110 105 105 100

  14. Slide 14: French lending environment

    French lending environment Continued lending growth to non-financial corporations suggests expansion of business activity Loans to Non-Financial Corporations (Annual Growth Rate)1 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 1. Source: Bank of France,

  15. Slide 15: APRR operations

    APRR operations Disciplined cost management resulted in operating expenses remaining flat in 2015 €m Operating Expenses 800 80% 70.0% 70.3% 70.7% 71.8% 67.8% 68.0% 68.4% 69.2% 67.0% 64.0% 600 60% 232 229 231 236 240 2641 258 275 2922 301 400 40% 153 162 149 139 156 140 133 132 118 110 200 20% 209 20

  16. Slide 16: APRR operations

    APRR operations Active management of a 2,323km motorway network to deliver improved operations in 2015 Network Improvements Leveraging Technology  18km of new motorway  96% automated opened in 2015 (A719 transactions extension and A466 link)  54% ETC1 transactions  Refurbishment of ~100 rest  I

  17. Slide 17: APRR capital projects

    APRR capital projects Continued commitment to maintain and expand the existing network  Capital expenditure guidance (real as at December 2015) – 2016-2020: average ~€370m p.a. (includes 2014-2018 management contract and Stimulus Package) – 2021-2035: average ~€180m p.a. Management Contract (2014)

  18. Slide 18: APRR financing costs

    APRR financing costs Reduction in interest costs as maturing debt is progressively replaced at lower rates  Sustainable debt maturity profile with strong liquidity position  APRR rated BBB+ (Stable outlook) by both Standard & Poor’s and Fitch APRR/Eiffarie Pro Forma Debt Maturity Profile1(€m) APRR

  19. Slide 19: APRR bond issues

    APRR bond issues APRR issued €1.0bn of bonds during 2015  €500m bond at 1.50% due 2024  €500m floating rate note at Euribor+70bps due 2020  APRR also signed a €275m loan facility with the European Investment Bank (EIB), at an average margin of 39bps over Euribor at the time of drawdown APRR Bonds

  20. Slide 20: Dulles Greenway

    3 Dulles Greenway MACQUARIE ATLAS ROADS

  21. Slide 21: Dulles Greenway overview

    Dulles Greenway overview Dulles Greenway is a 22km toll road in Loudoun County, northern Virginia 2015 Performance Concession Traffic Ownership 5.4% 50% estimated 51,054 ADT economic interest Concession End Revenue 15 February 2056 7.9% Tolling Schedule US$85.1m 2014-2020: Tolls escalate by greater

  22. Slide 22: Dulles Greenway traffic

    Dulles Greenway traffic Total 2015 traffic up 5.4% against pcp, reaching 51,054 average daily traffic (ADT) ADT Workday Traffic (Annual) ADT Non-Workday Traffic (Annual) 60,000 +5.0% 34,000 +6.4% 58,000 30,000 56,000 26,000 54,000 22,000 52,000 50,000 18,000 2009 2010 2011 2012 2013 2014 2015 2009 2

  23. Slide 23: Dulles Greenway corridor growth

    Dulles Greenway corridor growth Corridor traffic expected to further increase with regional growth  Loudoun county is one of the fastest growing and most affluent counties in the US, with the 4th fastest population growth and the highest median income in 20141  Employment, population and housing u

  24. Slide 24: Dulles Greenway performance

    Dulles Greenway performance A combination of higher traffic volumes and toll increases have led to consistent growth in EBITDA  2016 toll increase implemented 23 February  State Corporation Commission toll review finalised September 2015; remains subject to appeal (US$m) Financial Performance vs T

  25. Slide 25: Dulles Greenway financing

    Dulles Greenway financing No refinancing requirements for the duration of the concession  Debt 100% fixed rate bonds, amortisation schedule locked in until 2056 (US$m) Dulles Greenway Debt Maturity Profile 500 250 Total debt service amount to be used in DSCR calculations1 489 Maturity profile for e

  26. Slide 26: Summary

    4 Summary MACQUARIE ATLAS ROADS

  27. Slide 27: Summary

    Summary Operational Portfolio Distributions Growth performance development  Growth in traffic,  1H16 distribution:  Simplification of portfolio  Primary focus remains revenue and EBITDA 9.0 cps through divestment of on supporting organic across all portfolio non-core assets growth within existin

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