Apa Group · ASX:APA
Apa — Craigs Investment Partners Investor Day October 2015
28 slides from Apa's conference presentation, Feb 11, 2016
Slide 1: Connecting Markets Creating Opportunities
Connecting Markets Creating Opportunities Peter Fredricson, Chief Financial Officer October 2015
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) the responsible entity of the Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) (APA Group). Summary information: This presentation contains summary information abou
Slide 3: Australia's largest gas pipeline owner by pipeline length, capacity and volume
Australia’s largest gas pipeline owner by pipeline length, capacity and volume APA Overview (Ticker: APA AU) Market capitalisation A$9.5 billion (as at 30 September 2015) ASX rank S&P/ASX 50 Credit Rating S&P: BBB (outlook Stable) Moody’s: Baa2 (outlook Stable) Assets owned/ ~ $19 billion operated G
Slide 4: Maximising value for securityholders
Maximising value for securityholders Indexed to 100 from listing date, 13 June 2000 to 30 June 2015 Source: IRESS data Normalised results exclude one-off significant items, reflecting APA’s core earnings from operations. CAGR: 14.8% APA Group | Craigs Investment Partners Investor Day | October 2015
Slide 5: FY15 EBITDA Bridge
FY15 EBITDA Bridge 11.6% organic growth achieved in FY2015 APA Group | Craigs Investment Partners Investor Day | October 2015 5
Slide 6: Developing growth projects across the country
Developing growth projects across the country Continue to connect resources to markets by working with our customers Committed projects underwritten by long term revenue contracts and/or regulatory arrangements Provision of new services responding to customers’ needs and developing new opportu
Slide 7: East Coast Grid – Australia's gas superhighway
East Coast Grid – Australia’s gas superhighway A gas superhighway offering unprecedented levels of service innovation and flexibility: – ~30 gas receipt and ~100 gas delivery points – Storage (in-pipe, LNG) – Interruptible haulage and storage services – Capacity trading and in-pipe trades – Multi-
Slide 8: Wallumbilla Gladstone Pipeline – US$4.6bn acquisition
Wallumbilla Gladstone Pipeline – US$4.6bn acquisition Welcome addition to APA’s East Coast Grid – Financial close on 3 June 2015 – 4 weeks of contribution to APA earnings – Addition of Gladstone delivery point to the East Coast Grid – 20-year take-or-pay contracts with two highly credit-worthy cou
Slide 9: Western Australia & Northern Territory
Western Australia & Northern Territory Solid organic growth in the emerging Perth region energy precinct Serving mining operations in the Pilbara and Goldfields regions Possible pipeline routes to connect the NT and the East Coast Grid NT Link – bids submitted, final bidder announcement expect
Slide 10: Sustainable growth in Distributions
Sustainable growth in Distributions APA’s Distribution Policy Fully covered by Operating Cash Flow Regard for capital needs of the +4.8% business and economic conditions on FY14 Grow generally in line with Operating Cash Flow Sustainable over the long term Soft target of 60 - 70% payout
Slide 11: Outlook and FY2016 Guidance
Outlook and FY2016 Guidance Statutory EBITDA for FY2016 expected within a range of $1,275 million to $1,310 million Includes US$ denominated contribution from Wallumbilla Gladstone Pipeline of approximately US$355 million Net interest costs for FY2016 expected within a range of $500 million to
Slide 12: Connecting gas resources to gas markets
Connecting gas resources to gas markets Organic growth Darwin – Capacity expansions, enhancements and new services – New services and more flexible contracts supplement traditional take-or-pay Dynamic energy market conditions Gladstone – Assist customers to manage energy needs and portfolios – I
Slide 13: Focus on Safety and Operational Excellence
Focus on Safety and Operational Excellence Health and safety – Long-term safety goal of Zero Harm – a program of continuous improvement – Decrease in LTIFR(1) to 0.64, down from 0.80 – Second year of a 3-year HSE Strategic Improvement Plan Enhancing infrastructure operations and maintenance Dami
Slide 14: Questions
Questions APA Group | Craigs Investment Partners Investor Day | October 2015 14
Slide 15: Appendix
Appendix APA Group | Craigs Investment Partners Investor Day | October 2015 15
Slide 16: FY15 statutory and normalised results
FY15 statutory and normalised results $ million 2015 2014 Change Statutory Significant Normalised Statutory Significant Normalised Normalised items items Revenue excluding pass-through(1) 1,119.2 - 1,119.2 992.5 992.5 12.8% EBITDA – continuing businesses(2) 838.5 17.2 821.3 697.2 - 697.2 17.8% EBITD
Slide 17: FY15 result: EBITDA by business segment
FY15 result: EBITDA by business segment % of Historical EBITDA by business segment(1) $ million 2015 2014 Change EBITDA(3) Energy Infrastructure Queensland 340.1 234.5 45.1% 38.0% New South Wales 120.8 115.6 4.5% 13.5% Victoria & South Australia 132.1 130.0 1.6% 14.8% Western Australia & Northern Te
Slide 18: FY15 Operational summary – Energy Infrastructure
FY15 Operational summary – Energy Infrastructure Expansion of the East Coast Grid capacity and service offerings continues: Revenue Split by Contract Type − EBITDA from APA’s East Coast Grid increased by 16.1% prior to inclusion of WGP − WGP financial close reached on 3 June 2015, contributing $35
Slide 19: EBITDA by pipeline
EBITDA by pipeline APA Group | Craigs Investment Partners Investor Day | October 2015 19
Slide 20: Stable and predictable cashflows
Stable and predictable cashflows Customers associated with many contracted assets provide essential services: – Regulated gas distribution systems – Major power generation facilities FY2015 Revenue by Customer Credit Rating FY2015 Revenue by Customer Industry Segment Stable and predictable cash fl
Slide 21: FY15 Operational summary – Energy Investments & Asset Management
FY15 Operational summary – Energy Investments & Asset Management Asset Management Underlying earnings continue to grow Reduction in one-off customer contributions for relocating APA infrastructure, however still generate around $10m p.a. on average in the long term Energy Investments Increased
Slide 22: Corporate overheads stay flat vs growth
Corporate overheads stay flat vs growth Corporate costs have remained flat over the last 5 years vis-à-vis growth of the business Corporate costs as a portion of EBITDA from continuing operating businesses is at 8.2% This is expected to further improve in FY16 with additional revenue and EBITD
Slide 23: Capital expenditure
Capital expenditure $ million FY15(1) FY14(1) Committed growth capex Growth capex Regulated - Victoria 136.1 65.5 Major Projects Queensland 104.4 206.6 New South Wales 12.1 13.2 Western Australia 64.2 73.2 Other 26.3 23.8 Total growth capex 343.1 382.5 Stay in business capex 50.6 45.1 Customer contr
Slide 24: Capital management
Capital management Cash and committed undrawn facilities of around $1.6 billion as at 30 June 2015(1) . Metrics(2) 2015 2014 Gearing (3,4) 63.4% 64.2% Interest cover ratio 2.59 times 2.31 times Average interest rate applying to drawn debt (4) 6.76% 7.12% Interest rate exposure fixed or hedged 94
Slide 25: Capital management
Capital management APA has received solid support from international debt capital markets Maintaining diversity of funding sources and spread of maturities (1) Does not include the US$4 billion syndicated bridge facility executed in November 2014 which is, as yet, undrawn APA Group | Craigs Invest
Slide 26: Debt facilities
Debt facilities Total committed debt facilities at 30 June 2015 Facility Drawn $million amount amount Tenor 2013 Bilateral borrowing 200 0 5 years maturing December 2018 2014 Syndicated facilities (1) 1,100 125 2.25, 3.25 and 5.25 year trances maturing September 2016, 2017 and 2019 2003 US Private p
Slide 27: APA FY15 Results Presentation
27 APA FY15 Results Presentation 27 APA Group | Craigs Investment Partners Investor Day | October 2015
Slide 28: Delivering Australia's energy
For further information contact Yoko Kosugi Delivering Australia’s energy Investor Relations, APA Group Tel: +61 2 9693 0049 E-mail: yoko.kosugi@apa.com.au or visit APA’s website www.apa.com.au
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