Atlas Arteria · ASX:ALX
Atlas Arteria — Macquarie Atlas Roads — Shareholder Meeting (April 2017)
30 slides from Atlas Arteria's shareholder meeting presentation, Apr 13, 2017
Slide 1: Macquarie Atlas Roads 2017 Annual General Meetings
Macquarie Atlas Roads Limited Macquarie Atlas Roads International Limited ACN 141 075 201 EC43828 Level 7, 50 Martin Place Telephone 612 8232 3333 The Belvedere Building SYDNEY NSW 2000 Facsimile 612 8232 4713 69 Pitts Bay Road GPO Box 4294 Internet: www.macquarie.com/mqa Pembroke HM08 SYDNEY NSW 11
Slide 2: 2017 Annual General Meeting
Macquarie Atlas Roads Limited Macquarie Atlas Roads International Limited 2017 Annual General Meeting 13 April 2017
Slide 3: 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 4: 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 5: MQA structure
MQA structure Macquarie Atlas Roads (MQA) MARL stapled MARIL Manager: MFA Adviser: MFA UK, European and US toll road US toll road investments investments MARL – Macquarie Atlas Roads Limited (Australian public company) MARIL – Macquarie Atlas Roads International Limited (Bermudan mutual fund com
Slide 6: Meeting structure
Meeting structure 01 Introduction and Chairpersons’ Address – Nora Scheinkestel, Jeffrey Conyers 02 Chief Executive Officer’s Address – Peter Trent MARL 2017 AGM Resolutions and Polls 03 MARIL 2017 AGM Resolutions and Polls 04 Closure of Meeting 05 Refreshments 06 Voting Results announced to ASX MAC
Slide 7: Chairpersons' Address
APPENDIX Chairpersons’ Address Nora Scheinkestel – MARL Chairman Jeffrey Conyers – MARIL Chairman MACQUARIE ATLAS ROADS
Slide 8: Chairpersons' Address
Chairpersons’ Address Agenda items Distribution growth Portfolio asset performance Reshaping the portfolio Structure Management fees Environmental and social responsibility Portfolio focus and strategy MACQUARIE ATLAS ROADS PAGE 6
Slide 9: Distribution growth
Distribution growth Double digit distribution growth achieved annually since 2013 MQA commenced distributions to MQA distributions (cps) securityholders in 2013 20.0 18.0 18.0 cps distribution paid in FY16, up 12.5% on FY15 16.0 20.0 cps distribution guidance for FY17, 13.2 up 11.1% on FY161 1
Slide 10: Portfolio highlights
Portfolio highlights MQA’s portfolio delivered an improved performance in 20161 EBITDA Strong asset performance during 2016 Revenue 6.3% • Growth in traffic, revenue and EBITDA across all portfolio assets during 2016 5.4% • Disciplined capital management at portfolio assets Traffic Reshaping of asse
Slide 11: MQA structure
MQA structure MQA is an externally managed stapled entity listed on the ASX MQA Stapled MARL MARIL Macquarie Management and Advisory Agreements MFA Greenway APRR ADELAC Warnow Tunnel M6 Toll 100%1 20.14% 20.15%2 70% 100%3 22km commuter 43km tolled 2,323km 20km commuter 2km toll road and route into g
Slide 12: MQA performance
MQA performance Enhanced portfolio value demonstrated through 39%1 compound annual growth rate over seven years MQA Share Price Performance2 A$7.00 A$6.00 A$5.00 A$4.00 A$3.00 A$2.00 A$1.00 - 2010 2011 2012 2013 2014 2015 2016 2017 1. From 25 January 2010 to 31 December 2016. 2. From 25 January 2010
Slide 13: Management fees
Management fees MQA outperformed benchmark by 63.2% over the 12 months to 30 June 2016 MQA vs Benchmark Performance1 Performance Fees A$7.00 Benchmark outperformance resulted in MQA Benchmark performance fee of A$134.1m in 2016, payable A$6.00 in 3 equal instalments – 1st instalment of A$44.7m app
Slide 14: Environmental and social responsibility (ESR)
Environmental and social responsibility (ESR) MQA is committed to ensuring environmental and social risks are identified, assessed and managed responsibly at both the MQA corporate level and at the portfolio companies MQA’s ESR Report can be viewed on MQA’s website at: www.macquarieatlasroads.com/es
Slide 15: Portfolio focus and strategy
Portfolio focus and strategy Providing investors with access to long-dated, predictable and growing cash flows Strategy to grow distributions and enhance portfolio value Active asset Disciplined capital Investment Distribution management management opportunities growth Leveraging core Retained asset
Slide 16: Chief Executive Officer's Address
APPENDIX Chief Executive Officer’s Address Peter Trent MACQUARIE ATLAS ROADS
Slide 17: MQA overview
MQA overview Global infrastructure developer, operator and investor listed on the ASX Total road length Total km travelled ~2,390km 23.5bn Across four countries On MQA roads in 20161 2016 distribution Total securityholder return 18¢ 18 cents 29% Per MQA stapled security In 20162 1. Excludes ADELAC a
Slide 18: Portfolio highlights
Portfolio highlights Continued focus on growing distributions and unlocking further portfolio value Active asset Disciplined capital Investment Distribution management management opportunities growth Total returns to securityholders APRR Dulles Greenway Warnow Tunnel ▲6.0% ▲8.8%1 ▲5.1%2 ▲5.1% EBITDA
Slide 19: Portfolio highlights
Portfolio highlights Continued focus on growing distributions and unlocking further portfolio value Active asset Disciplined capital Investment Distribution management management opportunities growth Total returns to securityholders ~€44m reduction in net interest expense at APRR Manage debt costs
Slide 20: Portfolio highlights
Portfolio highlights Continued focus on growing distributions and unlocking further portfolio value Active asset Disciplined capital Investment Distribution management management opportunities growth Total returns to securityholders • Key commuter route in growing urban corridor Dulles Greenway • 10
Slide 21: Portfolio highlights
Portfolio highlights Continued focus on growing distributions and unlocking further portfolio value Active asset Disciplined capital Investment Distribution management management opportunities growth Total returns to securityholders Listed Today 2010 2017 Market Cap Market Cap A$278m A$2.9bn2 Index
Slide 22: APRR overview
APRR overview APRR is the concessionaire of a 2,323km motorway network in the east of France MQA ownership 20.14% APRR Concession Expiry: Nov 2035 Road Length: 1,894km AREA Concession Expiry: Sep 2036 Road Length: 410km ADELAC1 Concession Expiry: Dec 2060 Road Length: 20km 1. APRR holds a ~50% inter
Slide 23: APRR 2016 results
APRR 2016 results Strong operating performance resulting from continued growth across light and heavy vehicle traffic supplemented by the annual February 2016 toll increases 23.1bn VKT Light Vehicles Heavy Vehicles VTKm VTKm 20,000 3,500 +4.5% Traffic +3.7% +3.6% 19,500 3,400 €2,327.7m 19,000 3,300
Slide 24: 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 25: APRR operations
APRR operations Improving operations through active management in 2016 Harnessing Technology Environmental Investment Customers and Employees 97.5% of tolls collected via Committed to invest €50m in 2016 customer satisfaction automated transactions (55.9% green transportation ratings over 95%
Slide 26: 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 27: Dulles Greenway overview
Dulles Greenway overview Dulles Greenway is a 22km toll road in Loudoun County, northern Virginia MQA ownership 100%1 Concession expiry February 2056 Corridor dynamics Key commuter route connecting Leesburg in Loudoun County to the greater Washington area Loudoun County is one the fastest growing an
Slide 28: 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 29: 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 2016, up 1% on pcp 80.9%1 campaign with US$2.7m raised 82.6% Automati
Slide 30: 2017 Annual General Meeting
Macquarie Atlas Roads Limited Macquarie Atlas Roads International Limited 2017 Annual General Meeting 13 April 2017
Macquarie Atlas Roads — Shareholder Meeting (April 2017) on 6ix