Performance Update JP Morgan Transportation & Utility Investor - PowerPoint PPT Presentation

Performance Update JP Morgan Transportation & Utility Investor Forum April 18-19, 2018

Participants and Resources 2 E-470 Public Highway Authority Jason Myers Finance Director Jaime Heitman Controller Email: investorrelations@e-470.com Website: www.e-470.com/Pages/AboutUs/Investor-Relations.aspx Stifel – Municipal Advisor Michael Lund Director Disclaimer & Disclosures: The information set forth in this report is provided for convenience and is not provided in connection with an offer to buy or sell any securities. The information is provided as of the date of the report. Material changes may have occurred with respect to the information since that date, and the Authority has not undertaken to update or revise the information if such changes occur. Accordingly, the report must not be considered current as of the day you access it.

Authority Overview 3 47 centerline miles on eastern perimeter of  Denver Metro Area Serves DIA and commuting customers  Board of Directors – 8 voting members, 8 non-  voting members Political subdivision of the State  1991 – First five miles opened, one of the first  toll roads to implement open road tolling (ExpressToll) 2003 – Final section was opened, completing  the 47 mile semi-circle 2009 – Discontinued cash collection in the  lanes, introduced License Plate Toll (LPT) 2014 to present – Back Office and Customer  Services for new CO Managed Lane facilities

Authority Update 4 2017 Accomplishments  Annual certification – asset conditions deemed “excellent”  Clean financial statement audit  Debt Service coverage at 2.12 vs. budget of 1.75  Highest traffic year in history; Highest toll revenues ever recorded  Successful remarketing in March of $138 million of variable rate debt  Master Capital Plan completion  Toll Rate Study completion; new toll rate policy adopted  Continued to be a successful toll integrator & back office provider for State of Colorado

Master Capital Plan Study 5  Level of Service Study-Maintain “C”  Roadway widening  Interchange improvements & additions  Continued maintenance improvements  Paving, lighting, signing, safety, etc.  Accommodate growth along corridor  Growth projected to double by 2040  Identify and implement mobility solutions – stay ahead of demand  Capture capital, infrastructure, replacement needs between 2018- 2040  Authority is evaluating the timing and project plans for these costs  Intent to cash fund capital projects Board approved in December 2017; available on website

Toll Methods 6  ExpressToll  ExpressToll customers prepay their accounts  Transponder in vehicle  1.6 million transponders in the marketplace  Branding and technology used on all Colorado facilities  74% of E-470 2017 toll revenue was ExpressToll  97% Collection Rate  License Plate Toll (LPT)  Front and rear image taken of license plate(s)  Registered owner of vehicle receives a monthly bill  LPT customers pay a premium over ExpressToll  Branding and technology used on E-470 and CDOT facilities  86% collection rate of billable tolls in 2017

New Toll Rate Schedule 7 • Previous Toll Rate Policy (2011 to 2017) • Annual incremental increases equaling $0.25 every 3 years for ExpressToll rates • LPT had a 25% premium over ExpressToll • New Toll Rate Structure (2018 to 2020) • Board approved in November 2017; summary report on website • Structure chosen to try and: • Promote ExpressToll account conversions from LPT • Reward our large customer base (ExpressToll) • Enhance toll revenue • Provide more flexibility in the future to maneuver toll rates for future needs • Three-Year Schedule ( Subject to annual board approval)

Historical Transaction Trends 8 4% Growth in 2017 Transactions over 2016 109% of Budgeted Transactions in 2017 99% of 2017 Projected Transactions* 8,500 8,000 2018 7,500 2017 7,000 6,500 2016 6,000 2015 Thousands 5,500 2014 5,000 4,500 2013 4,000 2016 Transactions: 79,975,235 2012 2017 Transactions: 83,175,170 3,500 2018 YTD Transactions: 12,017,484 3,000 2,500 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC * 2017 Projections are based on the 2017 CDM Smith Bring Down Letter

Annual Transactions & Revenue 2009 to 2017 2017 vs. 2016 Toll Revenues - 111% 2017 vs. Budgeted Toll Revenues - 111% 2017 vs. Projected* Toll Revenues – 103% 225 200 175 150 Millions 125 100 75 50 Nine Year Growth in Toll Revenues - 139% 25 Nine Year Growth in Transactions – 73% - 2009 2010 2011 2012 2013 2014 2015 2016 2017 Traffic Volume 47,972,713 51,297,941 52,080,386 53,965,816 58,402,732 66,365,038 74,609,047 79,975,235 83,175,170 Toll Revenue $89,487,115 $94,309,891 $107,722,486 $116,744,889 $129,181,918 $150,404,512 $173,039,512 $192,810,649 $213,765,649 * 2017 Projections are based on the 2017 CDM Smith Bring Down Letter

2017 Operating Budget Results 10 (Unaudited) 2017 Actual 2017 Budget % Budget Revenue Toll Revenue (net) $213,765,649 $192,081,000 111% Other Revenue (net) 35,800,144 28,372,000 126% Total Revenues 249,565,793 220,453,000 113% Total Operating Expenses (46,165,326) (51,786,750) 89% Less: VRF Bonds Debt Service (1,066,228) NET REVENUES $202,334,239 168,666,250 120% Sr. Bonds Debt Service 95,246,810 96,380,350 99% Debt Service Coverage 2.12 1.75

Debt Service Coverage 11 2.2 $210,000,000 $185,000,000 2 $160,000,000 1.8 $135,000,000 $110,000,000 1.6 $85,000,000 1.4 $60,000,000 $35,000,000 1.2 $10,000,000 1 -$15,000,000 2012 2013 2014 2015 2016 2017 Net Revenue $108,844,386 $120,716,683 $142,592,354 $162,110,926 $185,449,484 $202,334,239 Senior Debt Service $74,737,478 $81,657,745 $83,630,014 $91,119,525 $97,231,865 $95,246,810 Debt Service Coverage 1.46 1.48 1.71 1.78 1.91 2.12 Authority DS Coverage Requirement – 1.30 (per bond resolutions)

2018 Operating Budget 12 (Unaudited) February YTD 2018 % Total 2018 YTD Actual Budget Budget Budget Revenue Toll Revenue (net) $31,314,719 $29,139,008 107% $222,618,000 Other Revenue (net) 6,296,048 5,530,249 114% 28,969,000 Total Revenues 37,610,767 34,669,257 108% 251,587,000 Total Operating Expenses (7,352,582) (9,790,736) 75% (54,745,700) NET REVENUES $30,258,185 24,878,521 122% 196,841,300 Less: VRF Bonds Aggregate (244,125) Debt Service Due Sr. Bonds Debt Service (16,954,726) (16,947,433) 100% (101,684,600) Debt Service Coverage 1.94

Capital Budget 2017 Results and 2018 Budget 13 (Unaudited) Total 2017 Total 2017 Actual Budget 2018 Budget Renewal & Replacement Roadway Maintenance $ 4,132,814 5,446,500 3,181,500 Facility Maintenance & Other R&R 3,227,257 6,370,357 3,215,500 Software & Hardware Upgrades 8,739,879 12,131,843 11,303,000 Construction Projects and Other Interchange Improvements 27,010 1,000,000 12,450,000 Road Widening – Parker to Quincy 49,946,105 49,825,000 1,200,000 Road Widening – Quincy to I-70 Design 0 0 2,000,000 Pavement Resurfacing 0 0 10,060,000 Other Capital Projects/Requirements 243,396 4,290,800 4,850,800 Total Capital Projects $66,316,461 $79,064,500 $48,260,800 * All R&R and Construction funding is from the Capital Improvements Fund; no bond proceeds are used to increase the Authority’s outstanding debt

Fund Balances 14 12/31/2015 12/31/2016 12/31/2017 Reserves & Restricted Accounts* Senior Debt Service Reserve** 127,467,000 125,132,000 123,161,000 Operating Reserve 8,326,000 8,810,000 8,855,000 Tower-Pena Ramp Financing Account 3,207,000 3,207,000 3,207,000 VRF Bonds Restricted Account 3,055,000 583,000 - Subtotal Reserves Accounts 142,055,000 137,732,000 135,223,000 Unrestricted Accounts Rainy Day Reserve Account 10,380,000 10,483,000 10,548,000 Senior Bonds Defeasance Account 22,467,000 32,279,000 57,462,000 Capital Improvements Fund Accounts 127,413,000 144,234,000 151,822,000 Subtotal Unrestricted Accounts 160,260,000 186,996,000 219,832,000 302,315,000 324,728,000 355,055,000 Total Fund Balances * Does not include balances within the Trust Revenue, Sr. Debt Service or VRF Debt Service Funds ** Includes $25.0 million surety policy from MBIA/NPFG Note: All balances are rounded

Interoperability in Colorado 16 COLORADO TOLL FACILITIES Toll Roads:  E-470  Northwest Parkway  Express Lanes:  US 36 (Phase I and II)  I-25 (Central & North Segment II)  I-70 (MEXL)  Express Lanes (In Progress):  I-25 North Segment III (2019)  C-470 (2019)  Express Lanes (TBD by HPTE):  I-25 North Segment 7 & 8 (2020?)  I-70 Central (2022?)  ExpressToll Services Provided:  Back Office/Customer Service/Billing  Toll Integration/Installation Services  All back office and toll integration costs incurred on behalf  of others are 100% recovered by the Authority per the Tolling Services Agreements (TSA)

Current Debt Structure 16 Actual Debt Service 1997B 200B 2004A 2004B 2006B 2007A-1 2007B-1 2007C-1 Series 2007D-1 Series 2010A Series 2010C Series 2015A Series 2017A Series 2017B Debt Service (as of 2000 OS) Debt Service (as of 2011A OS) 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 -