Apa Group · ASX:APA
Apa — Macquarie Securities Australia Conference 2009
24 slides from Apa's conference presentation, May 7, 2009
Slide 1: ASX Release: CFO Presentation to Macquarie Securities Australia Conference
For personal use only ASX RELEASE 7 May 2009 The Manager Company Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Dear Sir or Madam Company Announcement I attach the following announcement for release to the market: • CFO Presentati
Slide 2: Macquarie Securities Australia Conference
For personal use only Macquarie Securities Australia Conference Ross Gersbach, Chief Financial Officer Sydney, 7 May 2009
Slide 3: APA Group overview
APA Group overview For personal use only APA is Australia’s leading gas transmission and distribution infrastructure owner and operator – Gas transmission and distribution: gas pipelines, interconnected gas storage facilities across Australia, and gas distribution networks in Queensland and New So
Slide 4: High quality gas infrastructure portfolio
High quality gas infrastructure portfolio For personal use only Australia has an abundance of natural gas reserves – 56,700 PJ of 2P reserves, with almost half (26,100 PJ) in eastern Australia Increasing demand for gas – particularly gas fired power generation APA delivers gas from all major g
Slide 5: APA's strengths
APA’s strengths For personal use only Unrivalled gas asset footprint – largest gas transporter of natural gas across Australia by pipeline length, capacity and volume Integrated portfolio of gas pipeline assets – providing revenue and operating synergies Attractive growth opportunities – enhan
Slide 6: APA's strategy
APA’s strategy For personal use only Maximise value for securityholders by Focusing on gas infrastructure assets in Australia’s growing gas market and further enhance APA’s portfolio of assets Capturing revenue and operational synergies from APA’s significant asset base Pursuing opportunities
Slide 7: Proven financial performance
Proven financial performance EBITDA Operating cash flow For personal use only 500 200 192 450 431 180 400 160 350 140 123 300 120 249 $m $m 250 100 200 80 150 60 100 40 50 20 0 0 FY2004 FY2005 FY2006 FY2007 FY2008 HY2009 FY2004 FY2005 FY2006 FY2007 FY2008 HY2009 Operating cash flow per security Dist
Slide 8: Strong performance in 1H09
Strong performance in 1H09 For personal use only Financial highlights Underlying revenue (excluding pass-through) $368 million, up 20% Underlying EBITDA $249 million, up 16% Underlying operating cash flow $123 million, up 12% Underlying operating cash flow per security 25.8 cents, up 3.3%
Slide 9: Stable and secure revenue
Stable and secure revenue For personal use only More than 90% of APA’s revenues are derived from price regulated (natural monopoly) assets and long-term contracts Tariffs are set by regulation for price regulated assets, but existing contract terms remain Tariffs commercially negotiated for al
Slide 10: Regulatory overview
Regulatory overview For personal use only Regulatory resets are spread out over five years, with on average one reset per year – Next major asset reset is 1 January 2010 – Goldfields Gas Pipeline AER Review of WACC for regulated electricity transmission & distribution: – Regulated electricity as
Slide 11: Diversified customer base
Diversified customer base For personal use only APA’s revenue stream is diversified across customers and FY08 revenue (excluding pass-through) industries by customer type 5% Other Customers are among the largest Government 5% in the energy market and include businesses BHP (A+), Origin Energy (B
Slide 12: Integrated pipelines facilitate retail market dynamics
Integrated pipelines facilitate retail market dynamics For personal use only Small number of retailers across east Australian gas and electricity markets – Three largest retailers (excluding NSW electricity) supply majority of the East Australian retail market Retailers’ gas portfolios are diver
Slide 13: Increased demand for natural gas
Increased demand for natural gas Natural gas and Australian primary energy consumption Growth rates For personal use only It is estimated that Australia’s underlying 7.0% gas demand will grow an average of 4%* 6.0% annually over the next 10 years. Key Natural gas Total 5.0% growth drivers include:
Slide 14: Increased pipeline capacity requirements for power generation
Increased pipeline capacity requirements for power generation For personal use only APA primarily sells pipeline capacity – Gas fired power generation requires pipeline capacity and gas throughput: Baseload generation – capacity and gas volumes throughout the year Peak/intermediate generation
Slide 15: Capital expenditure and timing is discretionary
Capital expenditure and timing is discretionary For personal use only APA has a low level of stay-in-business capex which is required annually – up to $20 million per annum – Bulk of the assets are underground and require a minimal level of maintenance capex – APA controls the timing of non-critic
Slide 16: Secure long term debt portfolio
Secure long term debt portfolio For personal use only Cash and committed undrawn facilities of $710 million at 31 December 2008, with $300 million MTN repaid in March 2009 Recent debt raising experience – $165 million bilateral debt facility - August 2008 – $538 million of non-recourse debt rais
Slide 17: Capital management and refinancing
Capital management and refinancing For personal use only Debt maturing in the next 18 months: – $900 million syndicated bank facility – June 2010 – $102 million USPP 2003 Tranche A – September 2010 Refinancing strategy – Access diverse markets and broader range of financing options – Reduce disc
Slide 18: Summary
Summary For personal use only APA continues to deliver value to its securityholders through growth in distributions and operating cash flow Quality portfolio of gas infrastructure assets throughout Australia Direct management and operational control over APA’s assets and investments delivers f
Slide 19: Supplementary information
For personal use only Supplementary information May 09 Æ 18
Slide 20: APA's gas infrastructure business
APA’s gas infrastructure business For personal use only May 09 Æ 19
Slide 21: APA business segments
APA business segments FY2008 EBITDA % 1 For personal use only Australia’s largest gas pipeline owner, present in each mainland state and territory APA manages and operates all its major gas transmission and distribution assets Gas transmission pipelines: 79% – Approximately10,000 km of high pr
Slide 22: Disclaimer
Disclaimer For personal use only The information contained in this presentation is given without any liability whatsoever to Australian Pipeline Trust or APT Investment Trust or any of its related entities (collectively “APA Group”) or their respective directors or officers, and is not intended to c
Slide 23: Delivering Australia's energy
For personal use only Delivering Australia’s energy For further information visit APA’s website www.apa.com.au May 09 Æ 22
Slide 24: ASX Release: further information and contacts
For personal use only ASX RELEASE 7 May 2009 For further information please contact: Investor enquiries: Media enquiries: Chris Kotsaris Joanne Collins Investor Relations APA Group Kreab Gavin Anderson Telephone: (02) 9693 0049 Telephone: (02) 9552 8939 Mob: 0402 060 508 Mob: 0423 029 932 Email: chr
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