Atlas Arteria · ASX:ALX
Atlas Arteria — Macquarie Atlas Roads — Shareholder Meeting (April 2015)
43 slides from Atlas Arteria's shareholder meeting presentation, Apr 17, 2015
Slide 1: 2015 Annual General Meeting
Macquarie Atlas Roads Limited Macquarie Atlas Roads International Limited 2015 Annual General Meeting 17 April 2015
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 h
Slide 4: 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 5: Boards of directors
Boards of directors Macquarie Atlas Roads Limited David Walsh (Chairman) Independent Director Marc de Cure Independent Director Richard England Independent Director Nora Scheinkestel Independent Director John Roberts Non-Executive Director Macquarie Atlas Roads International Limited Jeff
Slide 6: Management, registry, scrutineer, legal counsel
Management, registry, scrutineer, legal counsel Macquarie Atlas Roads Management Peter Trent Chief Executive Officer Mary Nicholson Chief Financial Officer Registry Maria Dzopalic Computershare Auditor (and scrutineer for voting) Craig Stafford PricewaterhouseCoopers External Legal Counsel
Slide 7: Meeting structure
Meeting structure 01 Introduction and address by Chairmen – David Walsh, Jeffrey Conyers 02 Address by Chief Executive Officer – Peter Trent MARL 2015 AGM Resolutions and polls 03 MARIL 2015 AGM Resolutions and polls 04 Closure of meeting 05 Refreshments 06 Voting results announced to ASX MACQUARIE
Slide 8: Chairmen’s Address
Chairmen’s Address David Walsh - MARL Chairman Jeffrey Conyers - MARIL Chairman MACQUARIE ATLAS ROADS
Slide 9: Chief Executive Officer’s Address
Chief Executive Officer’s Address Peter Trent MACQUARIE ATLAS ROADS
Slide 10: MQA snapshot
MQA – snapshot Total road length Total km travelled >2,300km 22.9bn motorways across 4 countries during 2014 MACQUARIE ATLAS ROADS PAGE 9
Slide 11: MQA snapshot
MQA – snapshot Total road length Total km travelled >2,300km 22.9bn motorways across 4 countries during 2014 Market capitalisation Performance A$1.77bn 419% as at 13 April 2015 benchmark outperformance since listing1 1. Calculated as at 13 April 2015. Benchmark represents S&P/ASX 300 Industrials Acc
Slide 12: MQA – the first five years
MQA – the first five years • APRR: minority acquisition, tax grouping, capex contracts • Dulles Greenway: internalisation of operations and maintenance, completion of improvement projects • Improvement in operating performance, EBITDA margin Asset performance ✓ MACQUARIE ATLAS ROADS PAGE 11
Slide 13: MQA – the first five years
MQA – the first five years • APRR/Eiffarie refinancings in 2012 and 2015 • Improvement of APRR credit ratings from BBB- to BBB+ • M6 Toll restructure De-risking • Exit of underperforming assets: and simplification South Bay Expressway, Transtoll, Indiana Toll Road Asset ✓ performance ✓ MACQUARIE ATL
Slide 14: MQA – the first five years
MQA – the first five years • Commencement of distributions in 2013 • Five distributions paid to date totalling 24.9cps (A$125m) • Guidance of 10.0cps for 2H 20151 Distributions • Distributions since 2H 2014 have included a capital return component De-risking and simplification 10.01 8.2 ✓ 6.0 5.0 As
Slide 15: MQA – the first five years
MQA – the first five years • Listed on ASX in January 2010 at A$0.615 with a focus on value recovery • Share price as at 13 April 2015: A$3.46 Value recognition • Total value delivered to investors of Distributions A$1.6bn1 7.0 MQA Accumulation Index De-risking ✓ 6.0 and simplification Benchmark2 5.
Slide 16: MQA – the first five years
MQA – the first five years MQA is well positioned for future growth Growth Continue to apply disciplined capital management to grow existing portfolio Value recognition value and distributions Identify and assess accretive Distributions opportunities that will complement the existing portfolio D
Slide 17: APRR overview
APRR overview APRR represents half a century of motorway development across eastern France Europe’s fourth largest motorway network Links key cities, including Paris, Lyon, Geneva Covers major trade and tourism routes through western Europe Interconnection between France, Switzerland, Italy an
Slide 18: APRR – 2014 results
APRR – 2014 results Traffic Revenue EBITDA1 +1.6% +2.4% +3.0% 21.7bn VKT €2,149.2m €1,520.3m 1. Results represent performance of APRR on a standalone basis. On a consolidated APRR and Eiffarie/FE basis, 2014 EBITDA was €1,519.4m. The difference results from €0.9m of operating expenses at the Eiffari
Slide 19: APRR traffic
APRR traffic Improved traffic volumes despite challenging economic conditions Traffic growth vs pcp 2.5% 2.0% ~1.8% 1.5% 1.0% 0.5% -% 1H 12 2H 12 1H 13 2H 13 1H 14 2H 14 1Q 15 (0.5%) (1.0%) (1.5%) (2.0%) MACQUARIE ATLAS ROADS PAGE 18
Slide 20: APRR performance
APRR performance Earnings growth maintained through economic cycles APRR EBITDA (€m)1 and France GDP growth (%)2 €1,750m 3.0% 1,520 €1,500m 1,475 2.0% 1,399 1,428 1,326 1,208 1,244 1,265 €1,250m 1.0% €1,000m 0.0% €750m (1.0%) €500m 3 1,068 (2.0%) 888 924 941 974 841 €250m (3.0%) €0m (4.0%) 2001 2002
Slide 21: APRR/Eiffarie – refinancing completed
APRR/Eiffarie – refinancing completed Sustainable debt maturity profile created; APRR liquidity position strengthened APRR (€1.8bn revolving credit facility) and Eiffarie (€1.5bn term loan) Following S&P upgrade in November 2014, APRR rated BBB+ (Stable outlook) by both S&P and Fitch APRR/Eiffar
Slide 22: APRR financing costs outlook
APRR financing costs outlook Financing costs expected to continue to reduce over time €2.4bn of debt issued during 2014 at effective rates of 0.769%1-2.25% for maturities ending 2019-2025 €4.8bn of fixed debt maturing from 2015-2019 with an average cost of 5.4% APRR Bonds: Mid-Yield to maturity2
Slide 23: APRR/Eiffarie – other developments
APRR/Eiffarie – other developments Background to recent events In September 2014, French competition authority raised concerns regarding profitability of French motorways This led to negative media and political attention Motorway operators including APRR (Operators) and the French State initi
Slide 24: APRR/Eiffarie – other developments (cont’d)
APRR/Eiffarie – other developments (cont’d) Key terms of the in-principle agreement Compensation for 2013 land tax increase and 2015 tariff deferral via supplemental toll increases Stimulus package of €3.2bn sector-wide capital investment plan in exchange for concession extensions – Capital work
Slide 25: Dulles Greenway – 2014 results
Dulles Greenway – 2014 results Traffic Revenue EBITDA +3.0% +5.3% +7.1% 48,443 ADT US$78.9m US$63.0m MACQUARIE ATLAS ROADS PAGE 24
Slide 26: Dulles Greenway – performance
Dulles Greenway – performance Revenue growth and effective cost control have led to consistent growth in EBITDA Improving traffic trends evident since 2012 1Q 2015 traffic 3.4% above pcp Regional development anticipated to support traffic growth over the longer term EBITDA (US$m) vs Traffic (A
Slide 27: Dulles Greenway corridor
Dulles Greenway corridor Corridor traffic expected to continue to increase with regional growth Dulles Greenway corridor Corridor population growth p.a.%1 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Loudoun County Fairfax Arlington County Washington D.C. Co./Fairfax City/Falls Church 2010-15 2015-2
Slide 28: Dulles Greenway – other developments
Dulles Greenway – other developments Distribution outlook No distributions expected before 2019 State Corporation Commission (SCC) hearings The Greenway has undergone an extensive regulatory hearing process with the SCC during 2013 and 2014 with respect to the current toll rate structure. The SC
Slide 29: Other assets – 2014 results
Other assets – 2014 results Chicago Skyway Warnow Tunnel Traffic Revenue EBITDA Traffic Revenue EBITDA +0.2% +1.0% +0.7% +1.7% +5.2% +5.3% MACQUARIE ATLAS ROADS PAGE 28
Slide 30: Other corporate updates
Other corporate updates Indiana Toll Road Update ITR filed a pre-packaged Chapter 11 plan on 22 September 2014 A binding sale and purchase agreement for ITR was signed in March 2015, with financial close expected by June 2015 Gross receipts to MQA of US$25m (US taxes will apply) Outlook 1H 2
Slide 31: Questions
Questions MACQUARIE ATLAS ROADS
Slide 32: Formal Business of Meetings
Formal Business of Meetings Macquarie Atlas Roads Limited 2015 AGM Macquarie Atlas Roads International Limited 2015 AGM MACQUARIE ATLAS ROADS
Slide 33: Agenda items
Agenda items MARL 2015 AGM Item 1: Receipt of Financial Accounts and Reports Resolution 1: Adoption of Remuneration Report Resolution 2: Re-appointment of Director – Marc de Cure Resolution 3: Re-appointment of Director – Nora Scheinkestel MARIL 2015 AGM Item 1: Receipt of Audited Financia
Slide 34: Voting cards
Voting cards MACQUARIE ATLAS ROADS PAGE 33
Slide 35: Notices of Meeting
Notices of Meeting MARL 2015 AGM and MARIL 2015 AGM To be taken as read MACQUARIE ATLAS ROADS PAGE 34
Slide 36: MARL 2015 AGM: Item 1
MARL 2015 AGM: Item 1 MARIL 2015 AGM: Item 1 MARL 2015 AGM Financial Accounts and Reports “To receive and consider the Financial Report of MARL and the Directors’ and Auditor’s Reports, for the financial year ended 31 December 2014.” MARIL 2015 AGM Audited Financial Statements “To note the laying of
Slide 37: MARL 2015 AGM: Resolution 1
MARL 2015 AGM: Resolution 1 MARL 2015 AGM Resolution 1 – Adoption of Remuneration Report “That MARL adopt the Remuneration Report included in the MQA 2014 Annual Report for the financial year ended 31 December 2014.” MACQUARIE ATLAS ROADS PAGE 36
Slide 38: MARIL 2015 AGM: Resolution 1
MARIL 2015 AGM: Resolution 1 MARIL 2015 AGM Resolution 1 – Re-appointment of PricewaterhouseCoopers as Auditor “That PricewaterhouseCoopers be re-appointed as auditor of MARIL until the conclusion of the next Annual General Meeting and that the Directors be authorised to determine their remuneration
Slide 39: MARL 2015 AGM: Resolutions 2 and 3
MARL 2015 AGM: Resolutions 2 and 3 MARIL 2015 AGM: Resolutions 2, 3 and 4 MARL 2015 AGM Resolution 2 – Re-appointment of Director – Marc de Cure “That Marc de Cure be re-appointed as a director of MARL.” Resolution 3 – Re-appointment of Director – Nora Scheinkestel “That Nora Scheinkestel be re-appo
Slide 40: Proxy votes
Proxy votes MARL 2015 AGM FOR OPEN AGAINST ABSTAIN Resolution 1 Resolution 2 Resolution 3 MARIL 2015 AGM FOR OPEN AGAINST ABSTAIN Resolution 1 Resolution 2 Resolution 3 Resolution 4 MACQUARIE ATLAS ROADS PAGE 39
Slide 41: Voting cards
Voting cards MACQUARIE ATLAS ROADS PAGE 40
Slide 42: Formal Business of Meetings
Formal Business of Meetings Macquarie Atlas Roads Limited 2015 AGM Macquarie Atlas Roads International Limited 2015 AGM MACQUARIE ATLAS ROADS
Slide 43: Macquarie Atlas Roads Limited
Macquarie Atlas Roads Limited Macquarie Atlas Roads International Limited 2015 Annual General Meeting 17 April 2015
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