Apa Group · ASX:APA
Apa — Australian Pipeline Trust — FY2003 Earnings Presentation
28 slides from Apa's earnings presentation, Sep 3, 2003
Slide 1: Full Year Results - 12 Months to 30 June 2003
oe ae: | is LE UE ELE: _ CT VI) Ke, 2. LU Ue if LF Wey) pe LE LE MLO ME) _ Hae 7 Lo _ a cj de - My u sa ope SOON a a | hh LE Le ee Eo Bs _ ~~ Le ee, Ay ay _— Wa ee i CC hag ee) LL Ae Me % oo oo [ : Full Year Resu ts 12 Months to 30 June 2003 Jim McDonald Sydney, 3 September, 2003
Slide 2: Full Year Results in Summary
Full Year Results in Summary $M 41.0 37.1 2003 Net profit after tax: +10.63% from pcp. 2001 2002 2003 NPAT (after minorities) Australian Pipeline Trust O-
Slide 3: Full Year Results in Summary
Full Year Results in Summary $M Revenue 300 249.3 255.4 271.9 250 “| _ @ Other Revenue 200 - pirat ‘Pipeline Revenue includes SCP Equity 450 | Contribution 100 2001 2002 2003 Total Revenue: + 6.5% from pcp Australian Pipeline Revenue: + 4.9% from pcp _ Pipeline Trust O-
Slide 4: Agenda
Agenda = Operational Review m@ Financials = Regulatory Matters = Gas Supply m Outlook & Strategy = Opportunities = Summary Australian Pipeline Trust O-
Slide 5: OG PET Sa Toss oe aE SO se
OG PET Sa Toss oe aE 0 SO se a a fo | Ae — i. : ee i ic : a ae ee i (ae ee a = ee a ' Le eo a Coes . Se oe a ie eee Coe eos et tenet on Siete ioe is ne ae Cee en
Slide 6: Operational Review
Operational Review m@ Expansion of capacity and throughput through looping and compression and signing of new haulage contracts: - Looping Stage 6 on Roma to Brisbane Pipeline in QLD commissioned in October 2002; - Additional compressor on Carpentaria Gas Pipeline in QLD commissioned in December 200
Slide 7: Operational Review
Operational Review m@ Ongoing acquisition of minority interests in existing pipelines: - interest in Goldfields Gas Transmission (GGT) Pipeline in WA increased to 48.5% in April 2003. @ Securing additional haulage contracts: - agreement with AGL to transport increased volumes of gas in Moomba to Syd
Slide 8: Operational Review
Operational Review m@ Pipeline and mine closures in WA: - Westlime Pipeline shutdown. Small lateral pipeline - no revenue impact; - Mid West Pipeline running on reduced throughput due to temporary shutdown of the vanadium mine at Windamurra. Australian Pipeline Trust O-
Slide 9: Financials
Financials TotalP pelme Revenue * 257.2 2415 65 EBITDA 137.8 132 2 42 Proftaftertax & m nortes 410 37.1 10 6 Eamngs perunt (cents) 16.8 15 2 106 D istrbuton perunt (cents) 215 215 - NetinterestC over (tm es) 24 2A - EBITDA Maryn & ) 53 6 54.7 <0 2> NetTangbk AssetBackng peruni* $1.79 $1.76 177 * Inc
Slide 10: Financials
Financials Full Year Revenue Breakdown 300 249.3 255.4 271.9 14.7 Interest & Other Revenue 250 +-13:9-— 13.9 — » Other Pipeline Revenue @ Pipeline Revenue-SCP Equity Contribution 150 - m@ Pipeline Revenue - Transportation 100 - 50 - 0 = Australian 2001 2002 2003 Pipeline Trust ~, ard
Slide 11: Financials
Financials Contributors to Pipeline Revenue m@ Increased throughput from pipelines offset by reduction in revenue from the MSP: Full year impact of Looping Stage 5 on RBP; - Increased throughput on CGP; - Increased revenue from railway sleeper factories in Northern Territory; - Increased GGT contrib
Slide 12: Financials
Financials Revenue by Pipeline $M 110 100 90 80 70 60 50 40 30 20 10 0 1osa MSP - Moomba to Sydney 102 RBP - Roma to Brisbane CGP - Carpentaria Gas AGT - Amadeus Gas Trust GGT - Goldfields Gas Transmission MWP - Mid West Pipeline 264 o44 MSP AGT RBP CGP GGT MW P m2003) M2002 GGT - is equity accounte
Slide 13: Financials
Financials EBITDA 137.8 132.2 +4.2 Depreciation & Amortisation| 24.1 26.3 <8.4> Net Interest Expense 48.6 46.8 +3.8 Profit before Tax 65.1 59.1 +10.2 Tax 23.8 21.7 +9.6 Minorities 0.3 0.3 : Net Profit after Tax 41.0 37.1 +10.6 Australian Pipeline Trust O-
Slide 14: Financials
Financials Continued Growth in EBITDA and Cash Flow i Increased equity contribution ($2.6m) from Goldfields Gas Transmission Pipeline (GGT) reflecting: — higher underlying revenue; — acquisition of minority interest (TransAlta) in April 2003. m Offset by increased operating and management expenses (
Slide 15: Financials
Financials Pre and Post tax Profit +10% m Depreciation reduced by 8.4% primarily due to: — revised lifetime throughput on RBP following completion of Looping Stage 5 & 6. m@ Net interest expense increased 3.8% as a result of: — general rise in interest rates; — higher borrowing to fund capital expan
Slide 16: Financials
Financials Full Year Distribution Maintained TotalD istrbuton Incom e Distribution 105 17.0 155 - Franked Com ponent - - - -Unfranked Com ponent 10.5 17.0 15.5 CapialD istrbuton 45 45 6 .0 Date of FnalD istrbuton 25/093 * Income component increased by 1.5cpu * Distribution reinvestment plan now acti
Slide 17: Regulatory Matters
Regulatory Matters m@ Productivity Commission is reviewing National Gas Access Code. Report due in June 2004; m@ Awaiting Minister's decision on revocation of coverage of MSP; @ National Competition Council recommends that Queensland Gas Access Regime is “not effective”- opposed by APA & Queensland
Slide 18: Gas Supply
Gas Supply The Debate m@ ABARE indicates that natural gas supply will become critical by the end of the decade unless alternative supplies are developed; m@ Incumbent producers argue that there are sufficient reserves to meet supply over the next 20 years; @ ACIL indicated significant shortfall next
Slide 19: Gas Supply
Gas Supply The Real Issue What will the consumer ultimately pay? South East Australia needs competing natural gas to counter imminent depletion; Coal Bed Methane is an emerging viable alternative; Northern gas via Moomba remains the most likely long term solution. Australian Pipeline Trust O-
Slide 20: DTA EE RRR
DTA EE RRR © Fe Paced New Ge Dey ‘ithe Yume Oi borat cabg att rn Eieting pipelines BEEE Proposed pipelines nh Reserves are shown as 8 permentage of of total reserves. Ve. Estimated Australian Gas a 1 January 2000 = T7838 PU (AGSO 501)
Slide 21: Gas Supply - PNG Gas Pipeline Configuration
Gas Supply - PNG Gas Pipeline Configuration PNG producers continue to develop market for pipeline this decade; PNG pipeline is now routed to service key markets in: — South-east Australian markets via Mt Isa and Moomba; — Central Queensland markets - Gladstone and Townsville SWQ/Surat continue to su
Slide 22: Gas Supply - PNG Gas Pipeline Configuration
Gas Supply - PNG Gas Pipeline Configuration m@ Maximum use of existing infrastructure will include additional looping and compression: Enertrade pipeline from Townsville to Moranbah (and likely connection with Duke pipeline); Duke pipeline to service Gladstone and Wallumbilla; RBP to service Brisban
Slide 23: Outlook
Outlook m@ The next few years will provide major challenges for APA and the gas industry; m APA needs to expand its asset base, increase capacity and acquire minority interest to continue to grow profitability; m@ Gas transmission industry rationalisation is occurring and overseas investors are exit
Slide 24: Strategies
Strategies Our tasks remain the same: m@ To continue to increase profitability by: - Filling our existing pipelines; Continuing to acquire minorities; Participating in the industry rationalisation; Diversifying into other transmission pipelines and complementary industries. Australian Pipeline Trust
Slide 25: Opportunities
Opportunities Acquisition of new assets and minorities m@ EPIC Energy Speculation that it is for sale with assets including: — Dampier to Bunbury Pipeline; — Southwest Queensland Pipeline; — Moomba to Adelaide Pipeline m Goldfields Gas Pipeline APA recently increased its stake to 48.5%: — Minority i
Slide 26: Opportunities
Opportunities Diversifying our asset base m@ Industries complementary to the gas pipeline transmission business: — Power generation; — Production infrastructure including compression metering and drying plants. m Other pipeline transmission assets: — Oil pipelines; — Water pipelines. Australian Pipe
Slide 27: Summary
Summary Maintaining historical growth rates requires a step change in the business; Gas pipeline industry rationalisation has commenced and APA is active; Productivity Commission Review will help shape the gas industry; Future gas supply to Moomba is a critical issue; Australian Pipeline Trust O-
Slide 28: www.pipelinetrust.com.au
www.pipelinetrust.com.au
Australian Pipeline Trust — FY2003 Earnings Presentation on 6ix