Apa Group · ASX:APA
Apa — Australian Pipeline Trust — H1 2004 Earnings Presentation
22 slides from Apa's earnings presentation, Feb 26, 2004
Slide 1: Half Year Results, 26 February 2004
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Slide 2: Half Year Results in Summary
Half Year Results in Summary $M 30.0 - 20.0 - 10.0 - 0.0 - 11.3 22.1 19.0 2001 2002 2003 NPAT (after minorities) 2003 Net profit after tax & minorities: + 4.05% from pcp. Australian Pipeline Trust O-
Slide 3: Half Year Results in Summary
Half Year Results in Summary SM 429.1 138.4 141.0 150 100 50 - 2001 2002 2003 Revenue - Total revenue: +1.9% from pcp - Pipeline revenue: -2.61% from pcp ” Allother revenue @ Pipeline Revenue - includes SCP Equity Contribution Australian Pipeline Trust O-
Slide 4: Agenda
Agenda Significant Events Financials Productivity Commission Regulators and our Pipelines Outlook Summary Australian Pipeline Trust O-
Slide 5: OG PET Sa Toss oe aE SO se
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Slide 6: Significant Events
Significant Events US Private Placement raises A$496 million Intention to vest unitholders with voting rights announced at Information Meeting 2003 Revocation decision on Moomba to Sydney Pipeline Final Determination by ACCC on Moomba to Sydney Pipeline Fire at Santos Production Plant (post balance
Slide 7: Financials
Financials TotalR evenue * 141.0 138 4 19 EBITDA 70 1 70.2 <0 14> Profitaftertax & m nortes 22 1 213 3.8 Eammngs perunt (cents) 90 87 34 D istribution perunt (cents) 115 115 - Net hhterestC over (tm es) 24 25 NetTangbk AssetBackng peruni** $1.77 $1.80 <1 67> GearngRato (% ) 63.1 62.7 * Includes SCP
Slide 8: Financial Summary
Financial Summary Half Year Revenue Breakdown $M 129.1 138.4 141.0 150 7 0 3 2 | hterest & 0 therR evenue | @0 therP pelme Revenue 100 - MP welme Revenue-SCP Equity C ontrbution 50 - MP peline Revenue - Transportation 0 - 2001 2002 2003 Australian Pipeline Trust O-
Slide 9: Financials
Financials EBITDA 70.1 70.2 <0.14> Depreciation & Amortisation 12.2 12.3 0.81 Net Interest Expense 22.7 24.2 6.2 Profit before Tax 35.2 33.7 4.5 Income Tax Expense 12.9 12.3 <4.9> Net Profit after Tax & Minorities 22.1 21.3 3.8 Australian Pipeline Trust O-
Slide 10: Financials: Pipeline Revenue
Financials Pipeline Revenue * Expected downturn in GTD revenue on MSP reduced by: - - Roma to Brisbane Pipeline increase due to impact of looping from previous years - Carpentaria Gas Pipeline increase due to new compressor now operating - equity contribution from investment in Goldfields Gas Transm
Slide 11: Financial Summary: Revenue for Half Year by Pipeline
Financial Summary Revenue for Half Year by Pipeline $m go MSP - Moomba to Sydney 50 + RBP - Roma to Brisbane CGP - Carpentaria Gas 40 7 AGT - Amadeus Gas Trust 30 + GGT - Goldfields Gas Transmission 20 + MWP - Mid Western Pipeline 10 + Ba oc 0 + t + t ml MSP AGT RBP CGP GGT MWP @Passthrough Revenue
Slide 12: Financials: Expenses
Financials Expenses * Operating and management costs reduced by 9.9% on pcp, mainly due to a one-off adjustment from Amadeus Gas Trust * Net borrowing costs reduced by $1.5 m (6.3%) on pcp following renegotiation of hedge contracts Australian Pipeline Trust O-
Slide 13: Half Year Distribution Maintained
Financials Half Year Distribution Maintained TotalD is tribution iheom e Distribution Franked Com ponent - Unfranked Com ponent 6.5 5.0 CapitalD istrbution 0.0 0.0 0.0 2.0 Next D istrhbution + Distribution reinvestment plan remains active - 2.5% discount. * Actual paid comprises the final distributi
Slide 14: Productivity Commission Draft Report
Productivity Commission Draft Report Productivity Commission’s draft report:- — emphasises an alternative less costly form of regulation is warranted and should be invoked only where service providers have substantial market power — substantially endorses transmission pipeline industry’s arguments s
Slide 15: Productivity Commission Draft Report
Productivity Commission Draft Report Recommendations: — light-handed monitoring as alternative to cost-based price regulation — focus to be on economic efficiency — raising threshold for applying cost-based regulation approach — better guidance for approvals of access arrangements and reference tari
Slide 16: Regulators and Our Pipelines
Regulators and Our Pipelines Moomba to Sydney Pipeline System ¢ Revocation Decision — Minister decided on partial revocation — following 3rd party appeals, APA has joined action to review Minister’s decision — Australian Competition Tribunal hearing in May 2004 Australian Pipeline Trust O-
Slide 17: Regulators and Our Pipelines
Regulators and Our Pipelines Moomba to Sydney Pipeline System ¢« Final Access Arrangement — ACCC released its final determination despite Minister’s decision on revocation — Merit Review before Australian Competition Tribunal in late March 2004 — recent decisions in relation to GasNet and Epic (Moom
Slide 18: Regulators and Our Pipelines
Regulators and Our Pipelines Goldfields Gas Transmission Pipeline ¢ Western Australian Supreme Court determined that State Agreement not enforceable by GGT — decision impacts on GGT argument that regulated tariffs are unnecessary — discussion with Government to address impact of decision — GGT await
Slide 19: Regulators and Our Pipelines
Regulators and Our Pipelines Queensland Pipelines * Roma to Brisbane Pipeline and Carpentaria Gas Pipeline NCC recommended that Queensland Gas Access Arrangement “not effective” if upheld then existing contractual arrangements may be destabilised APA and Queensland Government continue to oppose reco
Slide 20: Outlook
Outlook ¢ APA will maintain profit growth through: - asset diversity and acquisition - increased throughput in existing systems * Industry rationalisation is well under way - external costs of mounting bids may impact full year results if APA is not successful ¢ Current level of distributions to be
Slide 21: Gas pipeline industry rationalisation has commenced and APA is active
Gas pipeline industry rationalisation has commenced and APA is active Asset diversity and acquisition are fundamental to our growth strategy Productivity Commission report will provide necessary stimulus for this industry Regulatory issues are still a major workload The business remains sound and pr
Slide 22: ey ere a a
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