Apa Group · ASX:APA
Apa — Merger or Acquisition (September 2021)
17 slides from Apa's merger presentation, Sep 24, 2021
Slide 1: APA presentation on its Superior Proposal to AusNet Services
Australian Pipeline Ltd ACN 091 344 704 | Australian Pipeline Trust ARSN 091 678 778 | APT Investment Trust ARSN 115 585 441 Level 25, 580 George Street Sydney NSW 2000 | PO Box R41 Royal Exchange NSW 1225 Phone +61 2 9693 0000 | Fax +61 2 9693 0093 APA Group | apa.com.au 24 September 2021 ASX ANNOU
Slide 2: Superior Proposal for AusNet Services
For personal use only Superior Proposal for AusNet Services Sales Desk Presentation 24 September 2021
Slide 3: Disclaimer
disclaimer For personal use only This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) as responsible entity of the Australian Investors should form their own views as to these matters and any assumptions on which any forward-looking statements are Pipeline Trust (ARSN
Slide 4: APA is a leading Australian owned energy infrastructure business
APA is a leading Australian owned energy infrastructure business For personal use only Compelling 6.0% FY22 distribution yield1 APA has deep experience in owning and operating energy infrastructure 53.0c 50.0c 51.0c • Servicing 1.4m network customers and ~100 47.0c 43.5c 45.0c wholesale customers •
Slide 5: Summary of APA's Superior Proposal
Summary of APA’s Superior Proposal For personal use only Superior • Proposal to acquire 100% of AusNet Services (“AusNet”) shares for $2.60 per share(1) via scheme of arrangement (the “Proposal”) Proposal • Under the Scheme, all AusNet shareholders would receive $1.820 cash and 0.0878 APA securities
Slide 6: Creating Australia's flagship energy infrastructure business through the proposed acquisition of AusNet
Creating Australia’s flagship energy infrastructure business through the proposed acquisition of AusNet For personal use only Uniquely positioned to deliver infrastructure solutions critical to the nation’s energy transition Electricity infrastructure Gas infrastructure ~$35bn ~$29bn Transmission(4)
Slide 7: AusNet is a highly attractive business
AusNet is a highly attractive business For personal use only One of the largest electricity network operators Predictable earnings and Exposure to growing in Australia cash flows energy markets 94% of FY21 EBITDA generated Deep skill and experience in • $11.2 billion Regulated & Contracted Asset Bas
Slide 8: AusNet's predictable earnings and cash flows
AusNet’s predictable earnings and cash flows For personal use only Historical financials(1) History of consistent RCAB(4) growth +4.7% $m FY16 FY17 FY18 FY19 FY20 FY21 • RAB: $0.7bn growth $10.8b $11.2b Revenue2 1,919 1,882 1,910 1,862 1,978 1,925 expected by FY26 $10.3b $9.8b $8.9b $9.4b % Growth (
Slide 9: Increasing exposure to electrification
Increasing exposure to electrification For personal use only APA standalone Pro-forma merged business(1) Power Generation, contracted electricity and others 20% 11% Electricity distribution Underlying Underlying EBITDA EBITDA Electricity transmission 13% $1.6bn $2.8bn 58% Gas Gas Power Generation, 8
Slide 10: Fast tracks the potential to unlock long term growth opportunities in the Australian energy transition
Fast tracks the potential to unlock long term growth opportunities in the Australian energy transition For personal use only Organic growth pipeline Market opportunities Unlocking growth with a combined business Gas $1.3 billion organic $8 billion market • Accelerates APA to be Australia’s flagship
Slide 11: Case study: significant grid investment required to support Renewable Energy Zones
Case study: significant grid investment required to support Renewable Energy Zones (REZs) For personal use only NSW and Victorian Renewable Energy Zones • State Governments developing REZs to combine infrastructure and attract private investment • State Governments seeking to increase project contes
Slide 12: APA has deep experience in owning and operating energy infrastructure
APA has deep experience in owning and operating energy infrastructure For personal use only Infrastructure Stakeholder Climate Social Performance development management Announced ambition for net zero Positive active engagement with Commercial development Regulatory management operations emission by
Slide 13: Unique opportunity to create value for APA and AusNet investors
Unique opportunity to create value for APA and AusNet investors For personal use only Standalone AST valuation Immediate value for Revenue growth and Accelerates growth investors synergies • Creates the scale, balance Remove AST’s growth constraints • Proposal is expected to be • Capturing growth sh
Slide 14: APA's Superior Proposal delivers optimal mix of value and certainty for AusNet shareholders
APA’s Superior Proposal delivers optimal mix of value and certainty for AusNet shareholders For personal use only Full and fair value Attractive premium to current trading levels • Substantial premium to recent trading levels and compelling value for AusNet shareholders • AusNet shareholders electin
Slide 15: Proposal consistent with comparable energy infrastructure transactions
Proposal consistent with comparable energy infrastructure transactions For personal use only Regulated electricity asset EV / RCAB transaction comparables Mean: 1.55x 1.66x 1.60x 1.62x 1.57x 1.53x 1.46x 1.41x APA’s offer (2021) Brookfield’s SKI offer (2021) TransGrid (2020) Endeavour Ausgrid (2016)
Slide 16: APA's Superior Proposal comparison to the Brookfield Proposal
APA’s Superior Proposal comparison to the Brookfield Proposal For personal use only APA’s Superior Proposal Brookfield’s Proposal 1 Value $2.60 per share(1) $2.50 per share 2 FIRB conditionality Not subject to FIRB approval FIRB approval required 3 Timing 4 weeks confirmatory due diligence 8 weeks m
Slide 17: Creating Australia's flagship energy infrastructure business
Creating Australia’s flagship energy infrastructure business For personal use only APA is a leading Australian owned energy infrastructure business with a diverse portfolio of high-quality long-life assets A leading Australian owned energy Experienced local management team with the skills and capabi