Apa Group · ASX:APA
Apa — Australian Pipeline Trust — Shareholder Meeting (October 2004)
17 slides from Apa's shareholder meeting presentation, Oct 20, 2004
Slide 1: ve — = = — si ee te: i —
ve — = = — si ee te: i —
Slide 2: Highlights
Highlights @ Fourth successive increase in net profit m Active management of capital resources a Achieved positive regulatory outcomes @ Involved in industry rationalisation @ Acquired Southern Cross Pipeline Group Assets Australian Pipeline Trust
Slide 3: Full Year Results in Summary
Full Year Results in Summary Net Profit after Tax and ) minorities (NPATM) $M 2004 NPATM: 140 - 121.3 +195.50% from pcp. 120 - 2004 NPATM: 100 - Normalised +9.6% from pcp. 80 - 60 - 40 - 30. 20 - 0 2001 2002 2003 2004 2004 Actual Normalised Australian Pipeline Trust
Slide 4: Financials: Non-recurring Items 2004
Financials Non-recurring Items 2004 $M Due diligence cost write-off (5.8) Mid West Pipeline write-off (19.9) Tax consolidation benefit - SCP 7.0 Non-recurring items before income tax (18.7) Tax effect of non-recurring items 2.1 Tax consolidation benefit - APA 92.9 Non-recurring items after income ta
Slide 5: Net Profit after income tax and minorities
Net Profit after income tax and minorities 121.3 41.0 Non-recurring items after tax 76.3 - Operating profit after tax and minorities 45.0 41.0 Australian Pipeline Trust
Slide 6: Full Year Results in Summary
Full Year Results in Summary $M 300 Revenue 250 + 200 + 150 + 100 249.3 255.4 271.9 278.1 i Other Revenue = Pipeline Revenue includes SCP Equity Contribution 2001 2002 2003 2004 2004 Actual Normalised Australian Pipeline Trust
Slide 7: Financial Summary: Revenue for Full Year by Pipeline
Financial Summary Revenue for Full Year by Pipeline MSP - Moomba to Sydney 120 RBP - Roma to Brisbane joo | °44mexm 936 CGP - Carpentaria Gas 80 4 AGT - Amadeus Gas Trust 60 | GGT - Goldfields Gas Transmission MWP - Mid West Pipeline MSP AGT RBP CGP GGT MWP. Pipeline Revenue 2004 @ Passthrough Reven
Slide 8: Financials Cont'd
Financials Cont'd EBITDA 135.1 133.9| 137.8 -2.8 Depreciation & Amortisation 22.6 22.6 24.1 +6.2 Net Interest Expense | 46.3 46.3| 48.6 +4,7 Profit before Tax 46.3 65.0 65.1 -0.2 Tax (75.2) 19.8 23.8 +16.8 Minorities 0.2 0.2 0.3 - Net Profit after Tax 121.3 45.0 41.0 +9.6 Australian Pipeline Trust
Slide 9: Financials Cont'd
Financials Cont’d Earnings per unit (cents) 49.2 18.3 16.8 +8.9 Cash Flow ($M) 82.3 82.3 90.6 -9.1 Gearing $746.0 million 59.1 62.5 63.3 Australian Pipeline Trust
Slide 10: Full Year Distribution Maintained
Financials Cont’d Full Year Distribution Maintained Total Distribution Income Distribution 17.0 Capital Distribution 4.5 Date of Final Distribution 27/09/2004 + Final profit distribution (2004) franked to 40%, at corporate income tax rate + Future distributions must be out of consolidated profits fi
Slide 11: Tax Consolidation
Financials Cont’d Tax Consolidation APA elected to be treated as single entity for tax from 1 July 2003. Increase in tax values resulted in an income tax benefit of $92.9m Accounting depreciation remains unchanged Effective tax rate will approximate to corporate tax rate Future distributions will be
Slide 12: Progress Update: Positive regulatory outcomes
Progress Update Positive regulatory outcomes @ Moomba to Sydney — Decision to partially revoke coverage — Australian Competition Tribunal rejects valuation methodology on access arrangements for MSP ~— ACCC has now appealed to Federal Court of Australia, outcome expected next calendar year Australia
Slide 13: Progress Update Cont'd
Progress Update Cont’d Positive regulatory outcomes Productivity Commission Final Report — Recommends lighter-handed regulation — Potential for “no coverage’ for 15 years on greenfields pipelines on case-by-case basis — Price regulation applies when net benefits outweigh monitoring costs — Regulated
Slide 14: Active Management of Capital Resources
Progress Update Cont’d Active Management of Capital Resources m Raised A$493.2 million (net) in US Private Placement market; @ Activated Distribution Reinvestment Plan; m@ Entered into tax consolidation; m Raised equity of $61.2 million (net) Australian Pipeline Trust
Slide 15: Outlook for 2005
Outlook for 2005 @ Acquisition of Goldfields and Parmelia assets will more than offset the contracted reduction in GTD payments; @ Emergence of competition and full retail contestability will begin to improve MSP revenues m Expectations of improved business in Queensland @ Distribution expected to b
Slide 16: APA Strategy
APA Strategy m™ Continue to grow profitability by: - - Filling our existing pipelines and expanding their capacity - Acquiring minority interests - Participating in industry consolidation - Diversifying into other transmission pipelines and complementary industries (gas treatment, water, power) Aust
Slide 17: Summary
Summary @ Strong performance m@ Acquired Southern Cross Pipeline Group assets m@ Positive regulatory outcomes tm Vill be involved in consolidation and diversification m Strong balance sheet Australian Pipeline Trust
Australian Pipeline Trust — Shareholder Meeting (October 2004) on 6ix