Slide 1: ASX Release: Interim Results Presentation
For personal use only ASX RELEASE 22 February 2012 The Manager ASX Market Announcements 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: • Interim Resu
Slide 2: Financial Results Half year ended 31 December 2011
For personal use only Financial Results Half year ended 31 December 2011 22 February 2012
Slide 3: Result overview and strategic highlights
For personal use only Result overview and strategic highlights Mick McCormack Managing Director and CEO 1H 2012 Results Presentation 2
Slide 4: Delivering on strategy
Delivering on strategy For personal use only Optimised our energy infrastructure portfolio – Continued work on capacity expansion projects – pipelines and gas storage – New capacity expansions announced – Goldfields Gas Pipeline – Gas-fired energy development for Mt Isa – Sell down of APA Gas Netw
Slide 5: Solid result
Solid result For personal use only 1H12 1H11 Change $ million $ million Revenue excluding pass-through (1) 400 370 up 8% EBITDA before significant items(2) 289 254 up 14% Profit before significant items (2) 76 63 up 21% Operating cash flow (3) 157 170 down (8%) Operating cash flow per security (3) (
Slide 6: Operational and strategic highlights
Operational and strategic highlights Assets operating at full capacity – contracted and regulated For personal use only – Customer requirements for additional capacity is supplied by organic expansions Xstrata – Work progressed on expansion projects – Mondarra Gas Storage mine Facility and pipelin
Slide 7: Strategic highlights: APA off-market offer for HDF
Strategic highlights For personal use only APA off‐market offer for Hasting Diversified Utilities Fund (HDF) Rationale – HDF Epic Energy pipelines form a natural fit with APA’s assets – Enhanced gas transmission pipeline network – benefits securityholders (HDF and APA) and customers Process upda
Slide 8: Financial performance
For personal use only Financial performance Peter Fredricson Chief Financial Officer 1H 2012 Results Presentation 7
Slide 9: Solid financial performance
Solid financial performance For personal use only 1H12 1H11 Change $ million $ million Total revenue excluding pass-through (1) 399.6 369.8 8.1 % Total revenue 530.5 554.7 (4.4%) EBITDA (2) 278.9 263.9 5.7 % EBIT 222.6 219.0 1.7 % Net interest expense (131.7) (124.5) (5.7%) Tax (24.9) (24.2) (3.0%)
Slide 10: Significant items - reconciliation
Significant items - reconciliation For personal use only 1H12 1H11 $ million $ million EBITDA 278.9 263.9 Significant item Profit on sale of Allgas, less transaction costs (10.4) Share of EII2 investment allowance benefit 9.8 EBITDA before significant items 289.3 254.0 Profit after tax 66.0 70.2 Sig
Slide 11: EBITDA by business segment
EBITDA by business segment For personal use only 1H12 1H11 1H12 EBITDA Change by business segment $ million $ million Energy Infrastructure Energy Investments Queensland 61.0 54.9 11.2 % Asset 8% Management New South Wales 60.2 52.9 13.7 % 5% Qld Victoria & South Australia 66.8 62.0 7.8 % 21% Wester
Slide 12: Energy Infrastructure: Queensland
Energy Infrastructure Queensland EBITDA ($m) For personal use only 70 Roma Brisbane Pipeline $61.0m – Expansion project progressing – compression 60 and looping – Repairs on easement following 2011 50 summer floods Diamantina Power Station, Mt Isa – joint 40 development of – 17-year energy suppl
Slide 13: Energy Infrastructure: New South Wales
Energy Infrastructure New South Wales EBITDA ($m) For personal use only 70 Continued Moomba Sydney Pipeline $60.2m mainline expansion program 60 – 4th year in 5-year expansion program 50 Increased northern gas flow – Victoria to New South Wales 40 First full 6 months additional capacity 30 ava
Slide 14: Energy Infrastructure: Victoria & South Australia
Energy Infrastructure Victoria & South Australia EBITDA ($m) For personal use only 70 $66.8m Lower gas volumes due to milder weather impact, offset by annual tariff increase 60 – 6% decrease in gas flows to 125 PJ 50 Capital works continued for additional peak capacity and supply security 40 – E
Slide 15: Energy Infrastructure: Western Australia & Northern Territory
Energy Infrastructure Western Australia & Northern Territory EBITDA ($m) For personal use only 70 $64.5m Mondarra Gas Storage Facility 60 – Commenced construction of surface works Emu Downs wind farm 50 – first six months of ownership 40 Amadeus Gas Pipeline – first six months under ownership
Slide 16: Asset Management and Energy Investments
Asset Management and Energy Investments Asset Management EBITDA ($m) For personal use only 30 Sell down of APA Gas Network (Allgas) into joint venture GDI (EII) 20 $14.0m – APA remains manager and operator of the gas network under a 10-year agreement 10 (plus 2 x 5-year options) Higher level of
Slide 17: Fully covered distributions
Fully covered distributions use only On target to deliver distribution guidance 60 51.9 52.6 48.2 1H12 distribution payout 50 ratio(1) of 69.2% (2) 42.7 39.7 Distribution components: 40 For personal 8.42 cents profit distribution 34.4 8.58 cents capital distribution 30 cents 32.75 29.5 31.0 24.7
Slide 18: Major capital expenditure for 1H12
Major capital expenditure for 1H12 1H12 1H11 For personal use only Description of 1H11 major projects $ million $ million Growth capital expenditure Regulated Victoria Transmission System 13.2 Northern augmentation project, Euroa compression 13.5 APA Gas Networks (Qld) 8.4 Includes southern network
Slide 19: Capital management
Capital management For personal use only Cash and committed undrawn facilities of $835 million at 31 December 2011 – Includes funds released from sale of APA Gas Network (Allgas) . Metrics 31 Dec 2011 30 Jun 2011 Gearing (1) 63.4 % 66.2 % Interest cover ratio 2.19 times 2.03 times Average intere
Slide 20: Capital management strategy
Capital management strategy For personal use only Managing balance sheet to maintain minimum investment grade credit rating metrics – Standard & Poor’s BBB; Moody’s Baa2 Refinancing program focused on extending debt maturity, diversifying funding sources and reducing borrowing costs – Next refin
Slide 21: Outlook and guidance
For personal use only Outlook and guidance Mick McCormack Managing Director and CEO 1H 2012 Results Presentation 20
Slide 22: Sustainable long term growth
Sustainable long term growth Strategic imperatives For personal use only Optimising our energy infrastructure portfolio – Enhance, extend, protect or complement APA’s existing portfolio – Expansions, acquisitions and new 1,184 PJ developments – Maximise long term growth 3,816 PJ Maintaining secure
Slide 23: Developing real growth opportunities
Developing real growth opportunities Capital projects with secure, long term returns For personal use only Diamantina Power Station Goldfields Gas Pipeline Joint development of 242 MW Capacity expansion – gas-fired generation compressor stations and compressor upgrades Mondarra Gas Storage Roma Bris
Slide 24: Guidance for FY 2012
Guidance for FY 2012 For personal use only No change to full year EBITDA and distribution guidance EBITDA – expected within the range of $530 million to $540 million Distribution – at least equal to FY2011 total distributions per security, that is at least 34.4 cents per security Interest cost g
Slide 25: Supplementary information
For personal use only Supplementary information 1H 2012 Results Presentation 24
Slide 26: Financials: Key financial ratios
Financials Key financial ratios For personal use only 1H12 1H11 Operating cash flow per security (1) (cents) 24.7 31.0 Weighted average securities on issue (million) 637.2 547.8 Distribution payout ratio (1) 69.2% 53.6% Earning per security (cents) 10.4 12.8 Interest cover ratio (times) 2.19 2.06 Ge
Slide 27: Financials: Cash flow
Financials Cash flow For personal use only 1H12 1H11 $ million $ million Operating cash flow 157.1 169.8 Distributions (net of DRP) 79.3 57.6 Available operating cash flow 77.8 112.2 Operating cash flow per security (cents) 24.7 31.0 Distributions per security (cents) 17.0 16.5 Distribution payout r
Slide 28: Financials: Revenue analysis by business segment
Financials Revenue analysis by business segment For personal use only 1H12 1H11 $ million $ million Change Energy Infrastructure Queensland 86.2 83.3 3.5% New South Wales 71.9 64.3 11.8% Victoria & South Australia 85.3 79.6 7.2% Western Australia & Northern Territory 96.7 77.4 24.9% Energy Infrastru
Slide 29: Total committed debt facilities at December 2011
Financials Total committed debt facilities at 31 December 2011 For personal use only Facility Facility amount(1) Tenor 2011 Bilateral borrowings $300 million(2) 3 years, maturing in July 2014 (3 x $75m) and August 2014 ($75m) 2011 Bilateral borrowings $150 million 5 years, maturing in October 2016 2
Slide 30: Regulatory update
Regulatory update APA’s major price regulated assets For personal use only Regulatory resets over the next five years Calendar year 2012 2013 2014 2015 2016 Roma Brisbane Pipeline Victorian Transmission System Goldfields Gas Pipeline Current regulatory period Next regulatory period Regulatory re
Slide 31: APA Group profile
APA Group profile For personal use only APA is Australia’s largest natural gas infrastructure business – Energy Infrastructure: natural gas pipelines and interconnected gas storage facilities across Australia – Asset Management: provision of asset management, operating and maintenance services to
Slide 32: APA asset and investment portfolio
APA asset and investment portfolio For personal use only APA Group assets and investments 21 Energy Infrastructure Asset Management 17 Queensland Commercial and/or operational services to: (1) Roma Brisbane Pipeline - Envestra Limited 24 21 NORTHERN (2) Carpentaria Gas Pipeline - GDI (EII) - Allgas
Slide 33: Disclaimer
Disclaimer For personal use only 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 su
Slide 34: For further information contact
For personal use only For further information contact Delivering Australia’s energy Chris Kotsaris Investor Relations, APA Group Tel: +61 2 9693 0049 E-mail: chris.kotsaris@apa.com.au or visit APA’s website www.apa.com.au