Atlas Arteria · ASX:ALX
Atlas Arteria — Macquarie Atlas Roads — Macquarie Australia Conference 2014
26 slides from Atlas Arteria's conference presentation, May 7, 2014
Slide 1: Macquarie Atlas Roads - Macquarie Australia Conference
Macquarie Atlas Roads Macquarie Australia Conference Mayy 2014
Slide 2: Important notice and disclaimer
I Important t t notice ti and d 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
Slide 3: Important notice and disclaimer
I Important t t notice ti and d disclaimer di l i 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 regist
Slide 4: Contents
C t t Contents 1. Overview 4 2. APRR 8 3 3. Dulles Greenway 19 4. Questions 25 PAGE 3
Slide 5: Overview
Overview
Slide 6: MQA overview
MQA overview i Macquarie Atlas Roads (MQA) is a global toll road operator and developer MQA Listed Li t d on th the ASX (Top (T 200) Market Capitalisation of A$1.55bn1 19.44% Various % APRR 5 Other Toll Roads Located in US and Europe Accounts for ~85% of MQA's value Cash flow potential in the lo
Slide 7: MQA portfolio
MQA portfolio tf li MQA’s toll road investments are located in France, UK, USA and Germany1 1 MQA owns various percentage stakes in these assets 1. assets. 1. MQA owns various percentage stakes in these assets. PAGE 6
Slide 8: MQA evolution since listing
MQA evolution l ti since i lilisting ti Today, MQA’s focus is 2010 - 2012 2013 on growing i di dividends id d and growing the value of its portfolio. Listed on ASX in January Commencement of 2010 dividends for MQA Focus on value recovery shareholders Historical MQA Dividends (cps) APRR minor
Slide 9: APRR
APRR
Slide 10: APRR Europe's fourth largest motorway network
APRR E Europe’s ’ ffourth th llargestt motorway t network t k APRR represents half a century of motorway development across Eastern France Covers major trade and tourism routes through Western Europe Interconnection between France, Italy, Germany, Switzerland Links keyy cities including g Pari
Slide 11: APRR concessions
APRR C Concessions i APRR comprises four concessions APRR Concession Expiry: 2032 Road Length: 1,840km AREA Concession Expiry: 2032 Road Length: 394km ADELAC Concession Expiry: 2060 Road Length: 19km ML TUNNEL Concession Expiry: 2068 Road Length: 11km PAGE 10
Slide 12: APRR performance
APRR performance f Growth maintained through economic cycles EBITDA growth of 3.4% in 2013; EBITDA margin of 70.3% in 2013 APRR EBITDA (€m)1 and France GDP growth (%)2 €1,750m 3.0% 1,475 €1,500m 1,399 1,428 2.0% 1,265 1,326 €1,250m 1 208 1,244 1,208 , 1.0% €1,000m 0.0% 9413 974 1,068 888 924 €750m
Slide 13: APRR traffic analysis
APRR ttraffic ffi analysis l i Positive trend observed in 2013 continuing g in 2014 12 months to 31 December 2013 Revenue and traffic analysis 2013 – Traffic: +0.8%; Revenue: +3.0% 15% 33% 3 months to 31 March 2014 Traffic Toll LV Revenue – Traffic: +0.7%; Revenue: +2.2% HV 67% 85% Light vehicle
Slide 14: European economy outlook
E European economy outlook tl k French economic outlook improving p g France, Germany and Eurozone GDP forecasts1 2.50% 2.00% 1.50% 1.00% 0.50% 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 France Germany Eurozone 1. Consensus Economics: April 2014. PAGE 13
Slide 15: APRR free cash flow
APRR ffree cash h flflow Financière Eiffarie distributions, distributions and therefore MQA dividends dividends, reflect only a portion of APRR free cash flow APRR consistently generates cash flow in excess of net profit. The excess is used to fund capex and debt repayments p y at the APRR level
Slide 16: APRR capital expenditure
APRR capital it l expenditure dit Since 2006, ~€3.15bn €3.15bn has been spent to grow, improve and maintain the network $600m $500m 24 81 $400m 65 45 159 $300m 187 343 44 303 27 54 69 215 240 $200m 75 171 168 165 104 123 66 139 $100m 100 110 122 115 102 115 108 78 94 93 57 $0m 2003 2004 2005 2006 20
Slide 17: APRR management contracts - main projects
APRR managementt contracts t t – main i projects j t Under the 2014-2018 2014 2018 management contracts, APRR and AREA will invest ~€500m €500m in the network Widening Projects 1. A6 at Auxerre (Southbound) 2. A71 north of Clermont- Ferrand (Northbound) 3. A41 north of Annecy (both directions) Other
Slide 18: APRR cash flow to MQA
APRR cash h flflow tto MQA Potential to improve overall financing terms over time March 2014 receipt from Financière Eiffarie1 of €25.6m Anticipated receipt of ~€36m - €38m in September 2014 MQA HoldCo debt 19.44% of free cash flow – Margin 300bp (350bp Feb 2015) HoldCo swap p until June 2018 Ei
Slide 19: APRR/Eiffarie financing
APRR/Eiff i financing APRR/Eiffarie fi i 2014 APRR debt issuances – €500m EMTN issued due in 2020 (margin of 90bps over mid-rate swaps) coupon of 2.25% – €500m floating rate notes due in 2019 (margin of 75bps over 3 month EURIBOR) APRR/Eiffarie Debt Maturity Profile (€m)1 APRR/Eiffarie Cost of Deb
Slide 20: Dulles Greenway
Dulles Greenway
Slide 21: Dulles Greenway overview
D ll G Dulles Greenway overview i 22km toll road located in Loudoun County, one of the fastest growing US counties MQA economic ownership: ~50% Concession expiry: 25 February 2056 Regulated toll increases: – Escalate by greater of CPI +1%, Real GDP, or 2.8% until 2020 – By application to the S
Slide 22: Dulles Greenway performance
D ll G Dulles Greenway performance f EBITDA has grown strongly in spite of declining traffic Growth in EBITDA supported by toll increases and costs savings Toll increase application for 2014 was approved by the SCC and came into effect on 11 April 2014 EBITDA (US$m) vs traffic (ADT) US$m ADT 70
Slide 23: Dulles Greenway traffic corridor
D ll G Dulles Greenway traffic t ffi corridor id Dulles Greenwayy well p placed to p provide capacity p y as corridor develops p The Dulles Greenway has two key competitors – Route 7 and Waxpool Rd Competing roads have received considerable Route 7 capacity upgrades since 2005, diverting signifi
Slide 24: Dulles Greenway corridor
D ll G Dulles Greenway corridor id Demographic g p factors expected p to p progressively g y increase congestion g in corridor Dynamic Corridor (Population Growth p.a.%)1 3.0% 2.5% 2 0% 2.0% 1.5% 1.0% 0.5% -% Loudoun County Fairfax Co./Fairfax Arlington County Washington D.C. City/Falls y Church 201
Slide 25: Dulles Greenway financing
D ll G Dulles Greenway fifinancing i Debt 100% fixed rate bonds bonds, amortisation schedule locked in until 2056 No refinancing requirements Dulles Greenway Debt Maturity Profile (US$m) 700 250 Maturity profile for external debt as at 31 December 2013 (excl. future capitalised interest) Total futur
Slide 26: Questions
n Cc O £ D ® 5 S)
Macquarie Atlas Roads — Macquarie Australia Conference 2014 on 6ix