Slide 1: Financial Results Half year ended 31 December 2013
For personal use only Financial Results Half year ended 31 December 2013 19 February 2014
Slide 2: Result overview and strategic highlights
For personal use only Result overview and strategic highlights Mick McCormack Managing Director and CEO 1H 2014 Results Presentation 2
Slide 3: Clear strategy and growth capability
Clear strategy and growth capability Recent pipeline acquisitions exceeding expectations For personal use only – Secure revenue with further revenue step up from new contracts still to come – Growth opportunities with Wallumbilla and Moomba compression projects – Existing infrastructure creates op
Slide 4: Solid financial performance
Solid financial performance For personal use only $ million 1H14 1H13 (1) Change Normalised results (2) EBITDA 399 322 up 24% Net profit after tax 121 96 up 25% Operating cash flow (3) 217 213 up 2% Operating cash flow per security (cents) 25.9 29.8 down (13%) Statutory results EBITDA 399 421 down (
Slide 5: Growth capital projects across Australia
Growth capital projects across Australia Continued expansion and enhancement of APA’s gas infrastructure portfolio For personal use only Committed projects underwritten by long term revenue contracts and/or regulatory arrangements FY 2014 FY 2015 FY 2016 Moomba Sydney Southern lateral expansion
Slide 6: East coast grid adapting to market changes
East coast grid adapting to market changes New gas transportation agreements across For personal use only the east coast grid – Multi pipeline agreements on VTS, MSP, Compression expansion SWQP and RBP Gladstone Wallumbilla and Moomba – New short term SWQP agreements due to capacity available from
Slide 7: Financial performance
For personal use only Financial performance Peter Fredricson Chief Financial Officer 1H 2014 Results Presentation 7
Slide 8: Reconciliation – Statutory and normalised results
Reconciliation – Statutory and normalised results For personal use only $ million 1H14 1H13(1) Normalised Significant Statutory Normalised Significant Statutory items items Revenue excluding pass-through(2) 509.6 - 509.6 452.1 - 452.1 EBITDA 398.9 - 398.9 321.9 99.2 421.1 Depreciation and amortisati
Slide 9: Solid financial performance
Solid financial performance For personal use only $ million 1H14(1) 1H13(1,2) Change Revenue excluding pass-through(3) 509.6 452.1 12.7% EBITDA 398.9 321.9 23.9% Depreciation and amortisation (74.7) (63.8) (17.1)% EBIT 324.2 258.1 25.6% Net interest expense (164.0) (140.2) (17.0)% Pre-tax profit 160
Slide 10: EBITDA by business segment
EBITDA by business segment For personal use only $ million 1H14(1) 1H13(1,2) Change 1H14 EBITDA(2) by business segment Energy Energy Infrastructure Investments Asset 9.6% Queensland 108.8 64.3 69.2 % Management 8.6% New South Wales 62.2 58.5 6.3% Victoria & South Australia 62.4 75.0 (16.8%) Queensla
Slide 11: Energy Infrastructure: Queensland and New South Wales
Energy Infrastructure Queensland New South Wales For personal use only Full 6 month contribution of South West Queensland Three agreements on the Moomba Sydney Pipeline (consolidated Oct 2012) and Roma Brisbane Pipeline, transporting increased gas volumes Pipeline expansion (commissioned Sep 201
Slide 12: Energy Infrastructure: Victoria, SA, WA and NT
Energy Infrastructure Victoria & South Australia Western Australia & Northern Territory For personal use only Decrease in regulated tariffs on the Victorian Expanded Mondarra Gas Storage Facility Transmission System with commencement of the commenced commercial operation (Jul 2013) new access ar
Slide 13: Asset Management and Energy Investments
Asset Management and Energy Investments Asset Management EBITDA For personal use only $60m Services to APA’s investments One-off customer contributions for relocating APA $40m $34.5m infrastructure One-off customer contributions $20m $20m Contracted Average $8.9m/a services $10m $0m $0m 1H11 1H1
Slide 14: Operating cash flow
Operating cash flow For personal use only $ million 1H14 1H13 Normalised EBITDA 398.9 321.9 Less borrowing costs (157.8) (116.4) Less equity accounted earnings (36.5) (26.3) Add dividends received 28.4 29.4 Other – including working capital (16.4) 3.9 HDF fee payments (8.3) (68.8) Operating cash flo
Slide 15: Fully covered distributions
Fully covered distributions On target to deliver distribution guidance for FY 2014 For personal use only cents 1H14 distribution payout 60 56.0 ratio(1,2) of 67.5% 51.9 52.6 52.5 48.2 Distribution components: 50 16.86 cents profit distribution 40 0.64 cents capital distribution 35.5 17.50 cents
Slide 16: Capital expenditure
Capital expenditure $ million 1H14 1H13 For personal use only Growth capex Committed growth capex Regulated - Victoria 14.9 13.4 $500m Major Projects Queensland 93.6 23.7 $400m New South Wales 4.8 13.4 $300m Western Australia 39.1 112.0 $200m Other 11.4 14.9 148.9 164.0 $100m Total growth capex 163.
Slide 17: Capital management
Capital management For personal use only Cash and committed undrawn facilities of $809 million at 31 December 2013 . Metrics 31 Dec 2013 30 Jun 2013 Gearing (1,2) 63.8% 62.8% Interest cover ratio 2.29 times 2.30 times Average interest rate applying to drawn debt (2) 7.19% 7.35% Interest rate exp
Slide 18: Capital management
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 (31 December 2013) $1,000m $800m $600m $285m $480m $400m $515m $735m $536m $200m $414m $271m $295
Slide 19: Outlook and guidance
For personal use only Outlook and guidance Mick McCormack Managing Director and CEO 1H 2014 Results Presentation 19
Slide 20: Diamantina and Leichhardt power stations
Diamantina and Leichhardt power stations For personal use only Project update Diamantina Power Station – February 2014 Commissioning phase underway – Generating units progressively brought on line – First power delivered to North West Power System in early October 2013 – Currently providing 70 MW
Slide 21: Connecting eastern and northern regions
Connecting eastern and northern regions For personal use only Strategic initiative to connect the Northern Territory and the east coast Darwin – Pipeline linking APA’s east coast grid and Northern Territory pipelines Benefits and rationale – Linking existing APA pipeline infrastructure – Connect
Slide 22: Envestra merger proposal
Envestra merger proposal Update Rationale For personal use only APA and Envestra agree to progress steps to scheme of Core business – gas distribution arrangement vote (announced 17 December 2013) Largest shareholder and service – Offer consideration of scrip and cash revised, provider with im
Slide 23: Outlook and guidance for FY2014
Outlook and guidance for FY2014 For personal use only Outlook Continued construction and development of expansion projects Commence Northern Territory – east coast interconnection feasibility study Progress Envestra merger proposal Guidance EBITDA – expected within a range of $730 million to
Slide 24: Supplementary information
For personal use only Supplementary information 1H 2014 Results Presentation 24
Slide 25: Revenue by business segment
Revenue by business segment For personal use only $ million 1H14 1H13(1) Change Energy Infrastructure Queensland 132.3 86.7 52.6% New South Wales 74.1 71.1 4.3% Victoria & South Australia 81.0 95.8 (15.4%) Western Australia & Northern Territory 127.1 107.0 18.8% Energy Infrastructure total 414.5 360
Slide 26: Balance sheet
Balance sheet For personal use only $ million 31 Dec 2013 30 Jun 2013 Change Current assets 240 280 (14.3%) Property, plant and equipment 5,398 5,280 2.2% Other non-current assets 2,188 2,139 2.3% Total Assets 7,826 7,699 1.6% Current debt - 81 nm Other current liabilities 318 411 (22.7%) Total curr
Slide 27: Debt facilities
Debt facilities Total committed debt facilities at 31 December 2013 For personal use only Facility Drawn $million(1) amount amount Tenor 2011 Bilateral borrowings (2) 400 285 5 years maturing December 2018 2011 Bilateral borrowing 150 0 5 years maturing October 2016 2011 Syndicated facility (3) 967
Slide 28: 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 29: APA asset and investment portfolio
APA asset and investment portfolio For personal use only 1H 2014 Results Presentation 29
Slide 30: 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 31: 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