Apa Group · ASX:APA
Apa — FY2014 Earnings Presentation
32 slides from Apa's earnings presentation, Aug 20, 2014
Slide 1: Financial Results Year ended 30 June 2014
For personal use only Financial Results Year ended 30 June 2014 20 August 2014
Slide 2: Result overview and strategic highlights
For personal use only Result overview and strategic highlights Mick McCormack Managing Director and CEO APA FY14 Results Presentation 2
Slide 3: Value creation and innovation: FY14 highlights
Value creation and innovation For personal use only FY14 highlights Developing opportunities in a dynamic industry – Expanding and extending our infrastructure portfolio $1 billion of organic projects completed or in progress – Grid services in the east and west providing tailored gas transporta
Slide 4: Another solid financial performance
Another solid financial performance For personal use only $ million 2014 2013 (1) Change Normalised results (2) EBITDA 747 662 up 13 % Net profit after tax 200 175 up 14 % Operating cash flow (3) 440 433 up 2% Operating cash flow per security (cents) 52.6 56.0 down (6) % Statutory results EBITDA 747
Slide 5: Developing growth capital projects across Australia
Developing growth capital projects across Australia Continued expansion and enhancement of APA’s gas infrastructure portfolio, with many growth For personal use only opportunities unique to APA – $1 billion capital projects completed or in progress in FY14 Committed projects underwritten by long
Slide 6: East coast grid services creating value
East coast grid services creating value Customer take-up of grid services For personal use only – New short and longer term gas transportation Gladstone agreements across multiple pipelines – Storage services available throughout the grid, close to source or end use Wallumbilla – Flexibility servi
Slide 7: Developing an integrated Western Australian portfolio
Developing an integrated Western Australian portfolio Gas supply security and flexibility For personal use only – Mondarra Gas Storage Facility expansion commenced commercial operation July 2013 – Underpinned by 20 year contract with Synergy (electricity PILBARA PIPELINE SYSTEM generator/retailer)
Slide 8: Focus on safety and operational excellence
Focus on safety and operational excellence Health and safety For personal use only – Long-term safety goal of Zero Harm – LTIFR 7.3 a program of continuous improvement 6.1 – Decrease of LTIFR(1) to 0.7, down from 2.1 4.9 Enhancing infrastructure operations and 2.2 2.1 maintenance 0.7 – Consolida
Slide 9: Financial performance
For personal use only Financial performance Peter Fredricson Chief Financial Officer APA FY14 Results Presentation 9
Slide 10: Reconciliation – statutory and normalised results
Reconciliation – statutory and normalised results For personal use only $ million 2014 2013(1) Change Normalised Significant Statutory Normalised Significant Statutory Normalised items items Revenue excluding pass-through(2) 992.5 - 992.5 919.5 - 919.5 7.9 % EBITDA 747.3 - 747.3 661.9 101.7 763.6 12
Slide 11: EBITDA by business segment
EBITDA by business segment For personal use only FY14 EBITDA by business segment $ million 2014(1) 2013(1,2,3) Change Energy Energy Infrastructure Investments Asset Queensland 212.8 163.7 30.0 % Management 9.1% 7.5% New South Wales 106.6 112.1 (4.9)% Victoria & South Australia 116.9 124.7 (6.3)% Que
Slide 12: EBITDA
EBITDA For personal use only $105.9 million $747.3 million $661.9 million ($20.6 million) $641.3 million Energy Investments Asset Management 16.5% Energy Infrastructure FY13 EBITDA Divested business FY13 EBITDA Growth FY14 EBITDA (continuing business) (historic continuing business) APA FY14 Results
Slide 13: Energy Infrastructure: Queensland
Energy Infrastructure Queensland For personal use only EBITDA $240m South West Queensland Pipeline $213 million New short term agreements $200m Moomba compression Construction nearing completion $160m South West Wallumbilla compression Queensland Pipeline Long-term agreement for compression $1
Slide 14: Energy Infrastructure: New South Wales, Victoria & South Australia
Energy Infrastructure EBITDA $120m $107 million New South Wales For personal use only Three agreements to transport increased gas $80m volumes north from Victoria, commencing Jan 2014, Jan 2015 and Jun 2015 Moomba A new 7-year grid services agreement, mainly $40m Sydney utilising the Moomba Sydn
Slide 15: Energy Infrastructure: Western Australia & Northern Territory
Energy Infrastructure Western Australia & Northern Territory For personal use only Goldfields Gas Pipeline Expansion project nearing completion EBITDA $200m Pilbara Pipeline System $187 million Amadeus 12 months’ contribution Gas Pipeline Additional revenue agreements $160m Emu Downs Wind Farm
Slide 16: Asset Management and Energy Investments
Asset Management and Energy Investments Asset Management For personal use only EBITDA $80m Increase in one-off customer contributions for relocating APA infrastructure $56 million One-off customer One-off customer contributions $40m $30m contributions Contracted $20m services Average $10m/a $10m $
Slide 17: Fully covered distributions
Fully covered distributions For personal use only cents 60 56.0 50 51.9 52.6 52.5 52.6 FY14 distribution payout ratio(1,2) of 68.9% 40 Distribution components: 35.0 35.5 36.3 35.61 cents profit distribution 30 32.8 34.4 0.64 cents capital distribution 20 36.25 cents 0 10 2.1% growth in distrib
Slide 18: Capital expenditure
Capital expenditure For personal use only $ million 2014(1) 2013(1) Growth capex Regulated - Victoria 65.5 22.6 Committed growth capex Major Projects $400m Queensland 206.6 80.8 New South Wales 13.2 23.8 $300m Western Australia 73.4 208.9 Other 23.8 29.0 $200m 317.0 342.6 Total growth capex 382.5 36
Slide 19: Capital management
Capital management Cash and committed undrawn facilities of around $800 million at 30 June 2014 For personal use only . Metrics 30 Jun 2014 30 Jun 2013 Gearing (1,2) 64.2% 62.8% Interest cover ratio 2.31 times 2.30 times Average interest rate applying to drawn debt (2) 7.12% 7.35% Interest rate
Slide 20: Capital management: debt maturity profile
Capital management Maintain strong BBB/Baa2 investment grade ratings For personal use only Maintain funding flexibility – internal cash flows plus additional equity and/or debt Debt maturity profile (30 June 2014) $1,200m $1,000m $200m $800m $40m $225m $120m $600m $510m $280m $425m $400m $515m $
Slide 21: EBITDA guidance for FY15
EBITDA guidance for FY15 Statutory continuing business EBITDA expected within a range of $1,170 million to $1,190 million For personal use only Normalised continuing business EBITDA $740 million to $760 million – 6% to 9% increase on FY14 Normalised EBITDA(1) ($50 m) (1) Excluding significant item
Slide 22: Outlook and guidance
For personal use only Outlook and guidance Mick McCormack Managing Director and CEO APA FY14 Results Presentation 22
Slide 23: Well positioned and equipped for growth
Well positioned and equipped for growth Darwin Organic growth For personal use only – Capacity expansions in line with customer requirements – Grid enhancement and service developments Brownfield and greenfield Gladstone developments – Eastern Goldfields Pipeline Moomba Brisbane – NT – east coas
Slide 24: Outlook and guidance for FY 2015
Outlook and guidance for FY 2015 Outlook For personal use only Continued construction and development of expansion projects East coast gas grid development Continued Northern Territory – east coast interconnection feasibility study Guidance Statutory EBITDA expected within a range of $1,170
Slide 25: Supplementary information
For personal use only Supplementary information APA FY14 Results Presentation 25
Slide 26: Revenue by business segment
Revenue by business segment For personal use only $ million 2014 2013(1) Change FY14 Revenue split Energy Infrastructure Queensland (1) 271.7 217.5 24.9% Other < 1% Regulated (revenue subject to New South Wales 133.6 139.3 (4.1)% price regulated tariffs) 23% Victoria & South Australia 156.4 164.7 (5
Slide 27: Balance sheet
Balance sheet For personal use only $ million 30 June 2014 30 June 2013 Change Current assets 203 280 (28) % Property, plant and equipment 5,574 5,280 6% Other non-current assets 2,196 2,139 3% Total Assets 7,973 7,699 4% Current debt - 81 - Other current liabilities 374 411 (9) % Total current liab
Slide 28: Debt facilities
Debt facilities Total committed debt facilities at 30 June 2014 For personal use only Facility Drawn $million(1) amount amount Tenor 2011 Bilateral borrowing 150 110 5 years maturing October 2016 2011 Bilateral borrowings (2) 400 280 5 years maturing December 2018 2014 Syndicated facilities (3) 1,25
Slide 29: Regulatory update
Regulatory update APA’s major price regulated assets For personal use only Regulatory resets over the next five years Victorian Transmission System access arrangement – AER final decision (May 2013) reviewed by Australian Competition Tribunal, decision Sep 2013 – Recovered approximately $20m in
Slide 30: APA asset and investment portfolio
APA asset and investment portfolio For personal use only APA FY14 Results Presentation 30
Slide 31: Disclaimer
Disclaimer This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) the responsible entity of the Australian Pipeline For personal use only Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) (APA Group). Summary information: This presentation contains su
Slide 32: For further information contact
For personal use only For further information contact Chris Kotsaris Delivering Australia’s energy 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