Atlas Arteria : Q4 2021 Traffic and Revenue Update

For personal use only

27 January 2022

ASX RELEASE

Toll Revenue and Traffic Statistics Update for Q4 2021

Atlas Arteria (ASX:ALX) today released a strong overall traffic and toll revenue result for the December quarter 2021 (Q4 2021), underpinned by the performance at APRR.

The tables below show the changes in traffic and toll revenue compared to the same periods in 2019 and 2020.

					Traffic vs prior corresponding period
				vs.Q4 2020			vs.Q4 2019	vs. 2020		vs. 2019
APRR	Total VKT*	36.1%			2.3%		19.5%		(5.6%)
ADELAC	Total traffic	41.7%			(5.1%)		15.4%		(17.7%)
Dulles Greenway	Total traffic								(35.1%)
25.5%			(27.4%)		13.3%
Warnow Tunnel	Total traffic	3.0%			(11.7%)		(4.3%)		(11.6%)
Weighted Average			34.9%			(0.7%)		18.6%		(8.4%)
				Toll Revenue vs prior corresponding period
				vs.Q4 2020			vs.Q4 2019		vs. 2020		vs. 2019
APRR	EUR		27.8%		4.4%		17.5%		(2.6%)
ADELAC	EUR		43.2%		(0.8%)		15.4%		(15.8%)
Dulles Greenway	USD		29.8%		(23.9%)		16.2%		(32.9%)
Warnow Tunnel	EUR		5.9%		(8.7%)		(1.8%)		(8.2%)
Weighted Average			27.8%		1.5%		17.1%		(5.5%)

• Vehicle kilometres travelled
  _________________________________________

1 Weighted averages are based on portfolio revenue allocations from Atlas Arteria's b eneficial interests in its businesses, in A$ using the average foreign currency exchange rates in the corresponding period (Q4 2021 USD = 1.3722 AUD and EUR = 1.5694 AUD, and in 2021 USD = 1.3326 AUD and EUR = 1.5756 AUD).

Atlas Arteria Limited	Atlas Arteria International Limited
ACN 141 075 201	EC43828
Level 1, 180 Flinders Street, MELBOURNE 3000	4th Floor, Cedar House, 41 Cedar Avenue
	Hamilton HM12 BERMUDA

Atlas Arteria Limited	2
Atlas Arteria International Limited

For personal use only

APRR and ADELAC

Traffic at APRR for the 12 months ending 31 December 2021 was 19.5% higher than 2020 and 5.6% lower than 2019. Toll revenue was 17.5% higher than 2020 and 2.6% lower than 2019 with the strong recovery in light vehicle traffic during 2021 impacting the average tolling mix.

Traffic at APRR in Q4 2021 was the highest Q4 traffic performance recorded by APRR, finishing 36.1% higher than Q4 2020 and 2.3% higher than Q4 2019. Light vehicle traffic continued its strong performance, up 44.8% on Q4 2020, and 2.1% above Q4 2019 levels. This was against a strong Q4 2019 during which traffic was elevated as a result of the French Pension Reform strikes which caused major disruptions to the French train network in particular.

Heavy vehicle traffic also remained strong during the quarter, ending Q4 2021 5.2% higher than Q4 2020 and 3.0% higher than Q4 2019. For the 12 months ending 31 December 2021, heavy vehicle traffic was 10.0% higher than 2020 and 0.6% higher than 2019.

Despite COVID-19 case numbers rising from early November, mobility restrictions remained relatively relaxed in France, with the focus instead on expanding the booster vaccination rollout. From mid- December, health pass validity for over-65s became contingent on receiving a booster vaccination within 7 months of the second dose, and children aged 5 and over became eligible for vaccination. As at 31 December 2021, around 74% of the French population are fully vaccinated and around 37% have received their booster shot.

APRR Traffic

	9.0					Heavy Vehicle VKT		Light vehicle VKT
	8.0
(VKTbn)	7.0
6.0
	5.0
Trips	4.0			6.3						6.1				6.7
4.5	5.1	4.8	4.1					4.0		4.9
3.0						3.6
	2.0										3.4
							2.2
	1.0	1.0	1.0	0.9	1.0	0.9	0.8		0.9	1.0	1.0	1.0	0.9	1.0
	-
	Q1 19	Q2 19	Q3 19	Q4 19	Q1 20	Q2 20	Q3 20	Q4 20	Q1 21	Q2 21	Q3 21	Q4 21

Traffic at ADELAC also recovered over the summer months, to finish 2021 15.4% higher than 2020 with toll revenue increasing 15.4%. This was a strong result for a largely commuter-based road. Traffic at ADELAC in Q4 2021 was 41.7% higher than Q4 2020, and 5.1% lower than Q4 2019, a period that saw elevated traffic due to the strikes in December 2019.

Dulles Greenway

Traffic at the Dulles Greenway in Northern Virginia continued to recover with the gradual return of commuters and the overall increase in mobility in the region over the year.

Traffic in Q4 2021 was 25.5% higher than Q4 2020 but remained 27.4% below Q4 2019. Commuters in the US continued to return to the office during the period, which contributed to rising weekday traffic along the Greenway, while rising retail and recreation mobility are likely to have contributed to increased overall traffic. Over the quarter, workday traffic was on average 32% below 2019 levels, whilst weekend and public holiday traffic was on average only 10% below 2019 levels.

Atlas Arteria Limited	3
Atlas Arteria International Limited

For personal use only

Dulles Greenway Weekly Traffic vs. LoudounCountyMobility

	Dulles Greenway Weekly Traffic	Workplace mobility	Retail and recreation mobility
weeksame2019	-						-	mobilityindex
(30%)						(30)
	(10%)						(10)
changepercentfrom	(20%)						(20)	Weeklyaverage
(70%)						(70)
	(40%)						(40)
	(50%)						(50)
	(60%)						(60)
Trips	1-Jan-21	1-Mar-21	1-May-21	1-Jul-21	1-Sep-21	1-Nov-21	1-Jan-22

Note: Mobility data for Loudoun County sourced from Google LLC "Google COVID-19 Community Mobility Reports"; https://www.google.com/covid19/mobility/

For the 12 months ending 31 December 2021, traffic and toll revenue at the Dulles Greenway increased by 13.3% and 16.2% respectively, compared to 2020. Toll revenues increased more than traffic numbers as a result of the SCC rate case outcome, which permitted an increase of 5.3% to off-peak tolls from 5 May 2021.

The grade separation works along Route 7 at Battlefield Parkway, which opened to traffic in June, were officially completed in November, improving traffic flows along this competing route.

					Dulles Greenway Traffic
	5.0		4.7	4.5	4.4
	4.2
(millions)	4.0					3.5						3.2	3.2
										3.0
	3.0							2.5	2.5	2.2
Trips	2.0						1.7
	1.0
	-
	Q1 19	Q2 19	Q3 19	Q4 19	Q1 20	Q2 20	Q3 20	Q4 20	Q1 21	Q2 21	Q3 21	Q4 21

Warnow Tunnel

At Warnow Tunnel, traffic for the 2021 year was impacted by strict social and mobility restrictions from January until May 2021, offset by the continuation of roadworks on competing routes, though to a lesser extent than in prior years, and particularly in 2019. As a result, traffic and toll revenue decreased by 4.3% and 1.8% relative to 2020, respectively.

Traffic in Q4 2021 was 3.0% higher than Q4 2020 and 11.7% lower than Q4 2019. Germany's fourth COVID-19 wave began in October 2021 which again resulted in the tightening of restrictions in November 2021, primarily for the unvaccinated. With around 70% of the German population fully vaccinated, this saw some restrictions impact Q4 2021 results.

Atlas Arteria Limited	4
Atlas Arteria International Limited

For personal use only

						Warnow Tunnel Traffic
	1.6							1.4
	1.4		1.2	1.3	1.3						1.3
(millions)	1.2	1.1				1.1	1.0		1.1		1.1		1.1
1.0									0.9
Trips	0.8
0.6
	0.4
	0.2
	-
	Q1 19	Q2 19	Q3 19	Q4 19	Q1 20	Q2 20	Q3 20	Q4 20	Q1 21	Q2 21	Q3 21	Q4 21

Toll revenue for the quarter was 5.9% higher than Q4 2020 and 8.7% lower than Q4 2019, which, relative to traffic performance, is a more favourable result given the higher toll prices in 2021.

Atlas Arteria Limited	5
Atlas Arteria International Limited

For personal use only

Appendix: Traffic and Operating Revenue

	Category	Oct-Dec	Change vs	Change vs	2021		Change vs	Change vs
	2021		2020		2019			2020	2019
	France
	APRR
	Revenue
	Toll Revenue (EUR millions)	631.6		27.8%		4.4%		2,468.2		17.5%	(2.6%)
	Vehicle Kilometres Travelled
	(millions)
	Light Vehicles	4,909		44.8%		2.1%		19,284		21.6%	(6.8%)
	Heavy Vehicles	1,002		5.2%		3.0%		3,911		10.0%	0.6%
	Total			36.1%		2.3%				19.5%	(5.6%)
	5,911				23,195
	ADELAC
	Revenue
	Total Toll Revenue (EUR millions)			43.2%		(0.8%)				15.4%	(15.8%)
	13.43				47.73
	Average DailyToll Revenue (EUR)	146,000		43.2%		(0.8%)		130,764		15.7%	(15.8%)
	Traffic
	Total Traffic (trips millions)			41.7%		(5.1%)				15.4%	(17.7%)
	2.48				8.89
	Average DailyTraffic	27,010		41.7%		(5.1%)		24,344		15.7%	(17.7%)
	United States
	TRIP II - Dulles Greenway
	Revenue
	Total Toll Revenue (USD millions)	16.80		29.8%		(23.9%)		59.93		16.2%	(32.9%)
	Average DailyToll Revenue (USD)			29.8%		(23.9%)				16.5%	(32.9%)
	182,558				164,188
	Traffic
	Total Traffic (trips millions)	3.17		25.5%		(27.4%)		11.56		13.3%	(35.1%)
	Average DailyTraffic			25.5%		(27.4%)				13.6%	(35.1%)
	34,456				31,662
	Germany
	Warnowquerung GmbH & Co. ―
	Warnow Tunnel
	Revenue
	Total Toll Revenue (EUR millions)	3.12		5.9%		(8.7%)		12.49		(1.8%)	(8.2%)
	Average DailyToll Revenue (EUR)	33,956		5.9%		(8.7%)		34,217		(1.6%)	(8.2%)
	Traffic
	Total Traffic (trips millions)	1.11		3.0%		(11.7%)		4.37		(4.3%)	(11.6%)
	Average DailyTraffic	12,048		3.0%		(11.7%)		11,967		(4.0%)	(11.6%)

Note: Figures may not add due to rounding differences. References to pcp are to the prior corresponding period.