Apa Group · ASX:APA
Apa — Macquarie Australia Conference 2023
26 slides from Apa's conference presentation, May 4, 2023
Slide 1: APA Presentation - Macquarie Australia Conference ASX Announcement
APA Group Limited ACN 091 344 704 | APA Infrastructure Trust ARSN 091 678 778 | APA 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 4 May 2023 ASX ANNOUNCEMENT APA Gr
Slide 2: Strengthening communities through responsible energy
For personal use only Strengthening communities through responsible energy Macquarie Australia Conference May 2023
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by APA Group Limited (ACN 091 344 704) as responsible entity of the estimates. A number of important factors could cause actual results or performance to differ materially from such APA Infrastructure Trust (ARSN 091 678 778) and APA Investment Trust (A
Slide 4: Acknowledgement of Traditional Custodians
In the spirit of reconciliation APA For personal use only acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present, and extend that respect to all Aboriginal and Torres Strait Island
Slide 5: Building momentum with a focus on three priority areas
We are building momentum across the business with a relentless focus on three priority areas For personal use only Our Operational Creating People Excellence Value APA Macquarie Conference May 2023 4
Slide 6: Partner of choice in delivering infrastructure solutions for the energy transition
APA’s strategy is to be the partner of choice in delivering infrastructure solutions for the energy transition Contracted An effective transition Renewables For personal use only requires energy that is and Firming Electricity Transmission Reliable We are supporting Australia’s energy transition thr
Slide 7: Creating value as the partner of choice for the energy transition
Creating value as the partner of choice, delivering infrastructure solutions for the energy transition A customer-focused strategy… For personal use only Resource Energy Supply Large Commercial Government Industry and Wholesale and Industrial …meeting the needs of our customers where we have a compe
Slide 8: Attractive opportunities in resource intensive areas via bundled solutions
Attractive opportunities in resource intensive areas via bundled solutions facilitating decarbonisation efforts For personal use only $25bn $20bn 81% Contracted VRE and Gas pipelines and Of companies in the Firming – Off grid CO2 Transmission Metals and Mining sector Customer Drivers have a scope 1
Slide 9: A trusted partner that can bundle solutions for lower emissions energy
A trusted partner that can bundle solutions to facilitate reliable, affordable and lower emissions energy Variable renewable energy For personal use only Indicative microgrid structure Gas-powered generation supported by battery storage Mining site End user APA Macquarie Conference May 2023 8
Slide 10: Case studies: Gruyere and Mount Isa
Case studies | Gruyere and Mount Isa For personal use only Completed project Current project Gruyere Gold Mine Hybrid Power Station ~$218m Queensland North West Power System >$1bn invested invested 13MW 4.4MW 88MW Transmission solar capacity BESS solar capacity 64MW 198km 324MW Lateral gas gas power
Slide 11: Attractive opportunities in electricity transmission via renewable energy zones
Attractive opportunities in electricity transmission via renewable energy zones For personal use only 125 GW 35 REZs $50bn+ REZ development 2049-50 Renewable Energy Zones Additional VRE Shortlisted across New transmission Step Change scenario1 capacity by 20502 eastern Australia3 investment4 REZ are
Slide 12: Eastern Australia has significantly more coal generation than more progressed regions
Eastern Australia has significantly more coal generation compared to more progressed regions where gas plays a key role in firming renewables 100% For personal use only Other 4% 3% 3% Nuclear 21% 15% Renewables Hydro 32% 80% Coal 33% Gas 8% 66% 38% 60% 15% 38% 2% 40% 2% 67% 46% 20% 40% 33% 30% 4% Ea
Slide 13: Net Zero Australia study confirms need to increase gas power capacity
Future energy The Net Zero Australia1 study confirms the need to materially increase gas power capacity to support the energy transition → Ensuring system security will require a variety of technologies. All scenarios determine a need to increase gas fired power For personal use only generation. A m
Slide 14: Gas supply is essential for reliability and affordability over the transition
Gas supply is essential to ensure our energy system maximises reliability and affordability over the transition UK electricity prices day ahead baseload contracts – monthly average3 For personal use only Monthly average (GBP/MWh) 400 350 300 250 Jan-Dec 21 200 +189% 150 100 Commencement 50 of Russia
Slide 15: APA's defensive characteristics provide a solid foundation
APA's defensive characteristics provide a solid foundation to play a significant role in Australia's energy transition Contracts provide revenue certainty1,2 Diversification of customers and industry exposures1,2 4% 3% 11% For personal use only 8% 1% 25% Energy Capacity charge revenue Utility ~87% R
Slide 16: Closing Remarks
Closing Remarks For personal use only We have a clear strategy which is We have a proven track record in We are well positioned to partner with customer driven across four primary developing and operating energy government to support Renewable asset classes infrastructure Energy Zones We have experi
Slide 17: Q&A Session
Q&A Session For personal use only APA Macquarie Conference May 2023 16
Slide 18: Appendix
Appendix For personal use only APA Macquarie Conference May 2023 17
Slide 19: APA is well positioned to benefit from rising inflation
APA is well positioned to benefit from rising inflation Drawn debt EBITDA For personal use only Revenue Majority of APA’s revenue is indexed to inflation1 Fully hedged/fixed with average maturity of 6.2 yrs2 High EBITDA margins3 EBITDA as % of revenue CPI linked revenue Drawn debt hedged or fixed at
Slide 20: APA is a leading Australian energy infrastructure business
APA is a leading Australian energy infrastructure business playing a key role in the transition of Australia's energy system For personal use only Delivering secure, reliable and affordable energy Diverse energy infrastructure portfolio • Operating critical infrastructure to deliver energy to reside
Slide 21: Existing APA operational footprint across energy infrastructure assets
Existing APA operational footprint diversified across a range of energy infrastructure assets For personal use only APA Macquarie Conference May 2023 20
Slide 22: Group Structure
Group Structure Group structure APA Infrastructure Trust APA Investment Trust (APA Infra) (APA Invest) • APA Group is listed as a stapled structure on the Australian For personal use only APA Group Limited Securities Exchange (ASX:APA) (Responsible Entity) • APA is comprised of two registered manage
Slide 23: Normalised financials
5 year normalised financials Financial Performance 1H23 1H22 FY22 FY21 FY20 FY19 FY18 Revenue $m 1,498.9 1,384.4 2,732.4 2,605.3 2,590.6 2,452.2 2,386.7 Revenue excluding pass-through(1) $m 1,231.9 1,117.7 2,236.6 2,144.5 2,129.5 2,031.0 1,941.4 Underlying EBITDA(2) $m 878.9 857.7 1,692.3 1,628.8 1,
Slide 24: Sources for market size
Sources for market size (slide 6) • Off-grid Firming – APA analysis including reference to AECOM’s Australia’s Off-grid Clean Energy Market Report, https://arena.gov.au/knowledge- bank/australias-off-grid-clean-energy-market-research-paper/ For personal use only • Gas Firming & Contracted VRE On-gri
Slide 25: Thank you
Thank you For personal use only APA Macquarie Conference May 2023 24
Slide 26: For further information
For personal use only For further information Andrew Gibson General Manager, Investor Relations M: +61 437 169 292 E: andrew.gibson@apa.com.au www.apa.com.au