Slide 1: Financial Results Half year ended 31 December 2015
For personal use only Financial Results Half year ended 31 December 2015 24 February 2016
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). For personal use only Summary information: This presentation contains su
Slide 3: Results overview and strategic highlights
For personal use only Results overview and strategic highlights Mick McCormack Managing Director and CEO APA 1H 16 Results Presentation 3
Slide 4: Summary financial performance
Summary financial performance $ million 1H 16 1H 15(5) Change For personal use only Normalised results (1) EBITDA from continuing operations 667.6 401.3 Up 66.3% Net profit after tax(2) 99.5 111.2 Down 10.5% Operating cash flow (3) 462.1 263.2 Up 75.6% Operating cash flow per security (cents) 41.5 3
Slide 5: APA – an infrastructure success story
APA – an infrastructure success story For personal use only Ready and responding to the dynamic gas market HY16 highlights – Enhancing our infrastructure – Inter‐connecting markets East Coast Grid continues to evolve and deliver for customers: – Bi‐directional capability WGP full period contri
Slide 6: Connecting Australia to its energy future
Connecting Australia to its energy future For personal use only EGP Continue to connect commissioned resources to markets by working with our Mondarra RBP bi‐ expansion directional customers capability Committed projects Full IOC transition underwritten by long completed term revenue contracts S
Slide 7: End to end customer commitment
End to end customer commitment Customer focused investments in: For personal use only Assets – Interconnected network (WGP, SWQP) – Expansions (East Coast Grid, EGP, compressor stations) – Augmentations (bi‐directional flows, storage capabilities) Systems Integrated Operations Centre Enterpr
Slide 8: East coast gas market undergoing transformation
East coast gas market undergoing transformation Significant volumes required to keep the LNG trains running For personal use only Gas volumes will not always be steady PJs 2500 Annual East Coast Gas Consumption Example gas volume profile of LNG train ramp up 2000 1500 1000 500 0 Residential & Co
Slide 9: Providing optionality for customers delivers opportunities
Providing optionality for customers delivers opportunities Some can be planned, others may not be For personal use only Example gas profile of 4 LNG trains ramping up Sample gas profile of 4 LNG trains ramping up, with 1 train down for 2 weeks Options for the customer/opportunities for APA: Store
Slide 10: Financial performance
For personal use only Financial performance Peter Fredricson Chief Financial Officer APA 1H 16 Results Presentation 10
Slide 11: Reconciliation – statutory and normalised results
Reconciliation – statutory and normalised results For personal use only $ million 1H 16 1H 15 Change Normalised Significant Statutory Normalised Significant Statutory Normalised items items Revenue excluding pass‐through(1) 812.5 ‐ 812.5 522.7 ‐ 522.7 55.5 %(3) EBITDA – continuing businesses 667.6 ‐
Slide 12: 1H16 result: EBITDA by business segment
1H16 result: EBITDA by business segment % of $ million 2015 2014 Change For personal use only EBITDA(2) Historical EBITDA by business segment(1) Energy Infrastructure Queensland 426.7 146.5 191.2% 59.9% New South Wales 63.3 63.7 (0.6%) 8.9% Victoria & South Australia 69.8 76.2 (8.4%) 9.8% Northern T
Slide 13: 1H16 EBITDA Bridge
1H16 EBITDA Bridge For personal use only 66.3% overall EBITDA growth and 10.1% organic EBITDA growth (ex WGP) achieved APA 1H 16 Results Presentation 13
Slide 14: 1H16 Operational summary – Energy Infrastructure
1H16 Operational summary – Energy Infrastructure For personal use only Expansion of the East Coast Grid (‘ECG’) capacity and service offerings continues: − EBITDA from APA’s ECG increased by 13.5% (excl. WGP) Revenue Split by Contract Type or 95.5% (incl. WGP) − WGP contributed $235 million − Orga
Slide 15: EBITDA by pipeline
EBITDA by pipeline East Coast Grid + Northern Territory West Coast Grid For personal use only APA 1H 16 Results Presentation 15
Slide 16: 1H16 Operational summary – Asset Management & Energy Investments
1H16 Operational summary – Asset Management & Energy Investments For personal use only Asset Management Underlying earnings continue to grow One‐off customer contributions for the period were similar to previous period Energy Investments Increased contribution from EII, GDI (EII), and SEA Gas
Slide 17: Corporate overheads remain under control
Corporate overheads remain under control For personal use only Corporate costs have remained relatively flat over the last 5 years vis‐à‐vis growth of the business Increase for the period relate to a number of one‐off items including cost of APA’s unsuccessful bids for NEGI and Iona Corporate
Slide 18: Capital expenditure
Capital expenditure For personal use only $ million 1H16(1) 1H15(1) Committed growth capex Growth capex Regulated ‐ Victoria 36.0 55.5 Major Projects Queensland 12.6 78.5 New South Wales 7.1 0.6 Western Australia 79.1 14.1 Other 12.5 13.3 Total growth capex 147.2 162.0 Stay in business capex 24.7 28
Slide 19: Capital management
Capital management For personal use only Cash and committed undrawn facilities of around $1.1 billion as at 31 December 2015 . Metrics(1) Dec 2015 Jun 2015 Gearing (1, 2) 63.7% 63.4% Interest cover ratio 2.52 times 2.59 times Average interest rate applying to drawn debt (1, 3) 5.69% 6.76% Intere
Slide 20: Debt maturity profile
Debt maturity profile For personal use only 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 1H 16 Results Presentation 20
Slide 21: Fully covered distributions
Fully covered distributions For personal use only On target to deliver increased distribution guidance 1H 16 distribution payout ratio(1,2) of 45.8% Distribution components: 19.0 cents profit distribution nil capital distribution 19.0 cents FY16 distribution guidance of 41.5 cents per security
Slide 22: Outlook and FY2016 Guidance
Outlook and FY2016 Guidance Based on current operating plans and available information, EBITDA for FY2016 expected within a range of For personal use only $1,275 million to $1,310 million Includes US$ denominated contribution from Wallumbilla Gladstone Pipeline of approximately $470 million Ne
Slide 23: Outlook
For personal use only Outlook Mick McCormack Managing Director and CEO APA 1H 16 Results Presentation 23
Slide 24: Connecting gas markets and resources
Connecting gas markets and resources Stand ready to assist customers For personal use only navigate dynamic markets – Investments to enhance our infrastructure – Delivery of flexible and innovative services to supplement traditional take‐ or‐pay contracts – Delivery of reliable and secure source o
Slide 25: Questions
For personal use only Questions APA 1H 16 Results Presentation 25
Slide 26: Supplementary information
For personal use only Supplementary information APA 1H 16 Results Presentation 26
Slide 27: APA Group structure
APA Group structure For personal use only APA is a stapled vehicle comprising two registered managed investment schemes: – Australian Pipeline Trust (ARSN 091 678 778) – APT Investment Trust (ARSN 115 585 441) is a tax pass‐through trust Australian Pipeline Limited (ACN 091 344 704) is the respo
Slide 28: Australia's largest gas pipeline owner by pipeline length, capacity and volume
Australia’s largest gas pipeline owner by pipeline length, capacity and volume For personal use only APA Overview (Ticker: APA AU) Market capitalisation A$9.9 billion (as at 22 February 2016) Normalised Continuing Business EBITDA(1) ASX rank S&P/ASX 50 Credit Rating Moody’s: Baa2 (outlook Stable) S&
Slide 29: Stable and predictable cashflows
Stable and predictable cashflows For personal use only 1HY16 Revenue by Customer Credit Rating 1H16 Revenue by Customer Industry Segment Stable and predictable cash flow from regulated assets and long term contracts with quality customers APA 1H 16 Results Presentation 29
Slide 30: Balance sheet
Balance sheet For personal use only $ million 31 Dec 2015 30 Jun 2015 Change Current assets 438.0 721.3 (39.3%) Property, plant and equipment 8,329.7 8,355.2 (0.3%) Goodwill and other intangibles 4,598.9 4,696.7 (2.1%) Other non‐current assets 873.9 879.7 (0.7%) Total Assets 14,240.5 14,652.9 (2.8%)
Slide 31: Debt facilities
Debt facilities For personal use only Total committed debt facilities at 31 December 2015 Facility Drawn $million amount amount Tenor 2015 Bilateral bank facilities 200 0 4.2 and 5.2 year tranches maturing December 2019 and 2020 2015 Syndicated bank facilities 830 125 2.25, 3.25 and 5.25 year tranch
Slide 32: Regulatory update
Regulatory update APA’s major price regulated assets For personal use only Regulatory resets over the next five years Goldfields Gas Pipeline Access Arrangement Review – WA regulator issued a draft decision in December 2015. APA has responded and challenged the regulator’s position that would re
Slide 33: Economic regulation of gas pipelines and networks
Economic regulation of gas pipelines and networks Regulator The Australian Energy Regulator (AER) is responsible for the economic regulation of gas transmission and distribution For personal use only networks and enforcing the National Gas Law and National Gas Rules in all jurisdictions except Wes
Slide 34: APA 1H16 Results Presentation
For personal use only 34 APA 1H16 Results Presentation 34 APA 1H 16 Results Presentation
Slide 35: For further information contact
For personal use only 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