Atlas Arteria · ASX:ALX
Atlas Arteria — Macquarie Atlas Roads — Morgan Stanley Institutional Investor Briefing (April 2011)
27 slides from Atlas Arteria's conference presentation, Apr 5, 2011
Slide 1: Macquarie Atlas Roads – Morgan Stanley Institutional Investor Briefing
MACQUARIE ATLAS ROADS MORGAN STANLEY – INSTITUTIONAL INVESTOR BRIEFING 5 APRIL 2011
Slide 2: Disclaimer
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 manager/adviser of MA
Slide 3: Disclaimer
Disclaimer Hong Kong This document has been prepared and intended to be disposed solely to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap. 571) of Hong Kong for the purpose of providing preliminary information and does not constitute any offer to the public
Slide 4: Agenda
Agenda 1. Overview 2. Recent Performance 3. Portfolio - Core Assets 4. Outlook 5. Questions Note: Dollar amounts throughout the presentation are Australian Dollars unless stated otherwise 4
Slide 5: 1. Overview
1. Overview
Slide 6: MQA Snapshot
MQA Snapshot MQA was created out of the restructure of Macquarie Infrastructure Group into two separate ASX-listed toll road groups, MQA and Intoll 2011 Listing Date 25 January 2010 Market Capitalisation1 A$866,242,412 Shares on Issue 452,345,907 ASX Ranking Top 200 Toll Roads in Portfolio 6 Country
Slide 7: MQA Portfolio
MQA Portfolio MQA’s toll road investments are located in France, UK, USA and Germany 7
Slide 8: MQA Structure
MQA Structure MQA's structure is integral to its strategy MQA has no corporate level debt and A$31.9m cash1 Each asset is in a separate holding company structure All asset level debt is project finance, with no recourse to MQA or any other portfolio asset There are no cross-default or cross-
Slide 9: Strategy & Objectives
Strategy & Objectives DI S CI MQA PL to commence IN dividend payments1 ED CA PI TA Refinance Eiffarie (APRR Holdco) L debt 2011/12 M AN AG Enhance the three core assets EM EN T Deliver growth in the existing portfolio 1. Timing and amount of any future dividends will depend on the final terms of Eif
Slide 10: MQA Performance
MQA Performance MQA has outperformed the benchmark by 208%1 since listing on 25 January 2010 MQA Security price vs. Benchmark performance 2.50 20,000 MQA Market volume 18,000 MQA Close price 2.00 16,000 S&P/ASX 300 Industrials Accumulation Index2 14,000 Market volume ('000s) Close price (A$) 1.50 12
Slide 11: MQA Valuation Considerations
MQA Valuation Considerations APRR is MQA’s largest asset APRR + Dulles Greenway + M6 Toll + Non-Core Assets = MQA Not including the value in assets other than APRR/Eiffarie, MQA’s market capitalisation1 would imply an APRR/Eiffarie valuation at ~10.4x EV/EBITDA as at December 2010. Metrics will cont
Slide 12: 2. Recent Performance
2. Recent Performance
Slide 13: 2010 Highlights
2010 Highlights Solid performance during 12 months to 31 December 2010 Positive results despite heavy winter conditions impacting MQA Pro Forma Performance FY to 31 December 20101 traffic in both first and fourth quarters of 2010 4.5% Revenue growth2 5.4% 5.4% EBITDA growth2 4.5% 72.1% portf
Slide 14: 2010 On Track
2010 On Track Initiative Status Comments 98.2% ownership of APRR to date APRR Minority Acquisition 3 Improves cash flow, credit metrics and refinance outlook All free capital allocated to APRR minority purchase; no Disciplined Capital 3 capital raising required or planned; no corporate debt Manageme
Slide 15: 3. Portfolio – Core Assets
3. Portfolio – Core Assets
Slide 16: APRR/Eiffarie
APRR/Eiffarie Concession expiry 31 December 2032 (APRR, AREA) 31 December 2042 (Maurice Lemaire) 31 December 2060 (ADELAC) Tolling Escalation by 0.5% in 2010 85% of inflation (CPI ex tobacco) plus 0.5% annually to 2013; 0.7% of inflation from 2014 Taxe d'aménagement du territoire adjustm
Slide 17: APRR/Eiffarie - Performance
APRR/Eiffarie - Performance 2010 represents another strong year of growth EBITDA Performance1 12 months to December 2010: traffic +2.6%, revenue 12 Months ended 31 Dec (€m) +4.3%, EBITDA +4.8% 68.0% 68.4% — Heavy winter conditions in Q1 and Q4 impacted light 67.0% 67.8% vehicle traffic (85% of tot
Slide 18: APRR/Eiffarie – Refinancing Considerations
APRR/Eiffarie – Refinancing Considerations Continued growth throughout economic downturn and 2008 oil spike APRR’s resilient performance recognised by Increased shareholding and fiscal consolidation credit markets - €1.25bn bonds issued since materially improve Eiffarie’s cash flows Jan 10 Eif
Slide 19: Dulles Greenway
Dulles Greenway Concession expiry 15 February 2056 Tolling Fixed toll increases until Dec 2012 From 2013 to 2020, escalate by greater of CPI +1%, Real GDP, or 2.8% By application to the SCC thereafter Ownership 50% estimated economic interest Length 22km Location / Strategic Located in
Slide 20: Dulles Greenway - Performance
Dulles Greenway - Performance Positive financial performance despite traffic outturn EBITDA Performance 12 months to December 2010: traffic -3.5%, revenue 12 Months ended 31 Dec (US$m) +1.8%, EBITDA +3.8% — Heavy winter conditions – over 50” snow – negatively 73.0% 73.1% impacted traffic and costs
Slide 21: M6 Toll
M6 Toll Concession expiry 31 January 2054 Tolling Market based tolling Ownership 100% Length 42 km Location / Bypasses the City of Birmingham and Strategic the M6 Motorway, one of the most Attraction congested motorways in the UK Significant industrial, housing and economic development o
Slide 22: M6 Toll - Performance
M6 Toll - Performance EBITDA maintained through recession by active EBITDA Performance management 12 Months ended 31 Dec (£m) 12 months to December 2010: traffic +3.2%, revenue 87.4% 87.9% +5.8%, EBITDA +7.3% 86.9% 86.6% — Strong recovery in traffic throughout year partially offset by 83.1% heavy
Slide 23: M6 Toll - Financing
M6 Toll - Financing £1.0bn of debt maturing August 2015 M6 Toll Debt Maturity Profile (£m) providing 4.5 year window to assess refinancing 100.0% 1,000 Asset performance is expected to satisfy all obligations and covenants 800 until debt maturity DSCR: 2.01x (1.40x lock up) as at 31 600 December
Slide 24: 4. Outlook
4. Outlook
Slide 25: The Road Ahead
The Road Ahead APRR is key to releasing yield for MQA investors with remaining value in portfolio to contribute incremental value in medium to long term Jun 2011 Dec 2011 Jun 2012 Dec 2012 2010 APRR Minority Acquisition Disciplined Capital Management 5.4% growth in EBITDA APRR Debt issuance and liqu
Slide 26: Management's Outlook
Management’s Outlook Overall positive trend in portfolio’s 2010 results expected to continue in 2011 — Current high oil prices may cause short-term softness in light vehicle traffic across the portfolio with further potential softness on UK traffic over the next 12-18 months due to austerity measu
Slide 27: 5. Questions
5. Questions
Macquarie Atlas Roads — Morgan Stanley Institutional Investor Briefing (April 2011) on 6ix