Slide 1: ASX release cover letter
For personal use only ASX RELEASE 22 August 2012 The Manager ASX Market Announcements Australian Securities Exchange 4th Floor, 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Dear Sir or Madam Company Announcement I attach the following announcement for release to the market: • 2012 Full Year
Slide 2: Financial Results Year ended 30 June 2012
For personal use only Financial Results Year ended 30 June 2012 22 August 2012
Slide 3: Result overview and strategic highlights
For personal use only Result overview and strategic highlights Mick McCormack Managing Director and CEO 2012 Results Presentation 2
Slide 4: Developing opportunities, creating value
Developing opportunities, creating value For personal use only Well positioned in a growing market – Expanding our energy infrastructure portfolio across Australia in line with increasing demand for gas and energy Track record of consistent financial performance – Remain a low risk but growing b
Slide 5: Another solid result
Another solid result For personal use only 2012 2011 Change $ million $ million Operating cash flow 336 290 up 16 % Revenue excluding pass-through (1) 758 720 up 5% EBITDA (2) 526 492 up 7% Profit (2) 131 109 up 20 % Operating cash flow per security (cents) 52.5 52.6 down (0)% Distribution per secur
Slide 6: Strong performance across the business
Strong performance across the business For personal use only Increase due to: ↑ Full year contribution from asset expansions – Young Wagga lateral (November 2010) and Moomba Sydney Pipeline (ongoing) ↑ General tariff increase across most assets ↑ Increased contribution from Energy Investments – Enve
Slide 7: Strategic and operational highlights
Strategic and operational highlights For personal use only Optimal use of assets: contracted and regulated assets near full capacity – Expansions supply additional capacity to meet customer requirements – ~ $300 million per annum over the next two years for committed and visible capital projects D
Slide 8: Strategic and operational highlights
Strategic and operational highlights For personal use only Delivering on growth strategy Major projects progress – Mondarra Gas Storage Facility expansion – Diamantina Power Station development Takeover offer for Hastings Diversified Utilities Fund Mondarra Gas Storage Facility, WA National cu
Slide 9: Sustainability reporting
Sustainability reporting For personal use only Health and safety – Long-term safety goal of Zero Harm - program of continuous improvement – Decrease of LTIFR (1) to 2.2, down from 6.2 – National APA health and safety system launched – “Safeguard” Natural gas and carbon reduction – Carbon tax – d
Slide 10: Financial performance
For personal use only Financial performance Peter Fredricson Chief Financial Officer 2012 Results Presentation 9
Slide 11: Diversified EBITDA
Diversified EBITDA For personal use only 2012 2011 FY 2012 EBITDA $ million $ million Change (continuing business) Energy Infrastructure Queensland 79.6 71.7 11.0 % Energy Investments New South Wales 113.1 101.3 11.7 % 8.1% Victoria & South Australia 123.1 115.9 6.2 % Asset Management Qld Western Au
Slide 12: Solid, consistent result
Solid, consistent result For personal use only 2012 2011 Change $ million $ million EBITDA before significant items 535.5 489.6 9.4 % Depreciation and amortisation (110.4) (100.4) 10.0 % EBIT 425.1 389.2 9.2 % Net interest expense (234.3) (247.1) (5.2)% Tax (50.4) (35.9) 40.6 % Net profit 140.3 108.
Slide 13: Energy Infrastructure: Queensland
Energy Infrastructure For personal use only Queensland Roma Brisbane Pipeline expansion – Completion of expansion project, including new revenue contracts, commenced August 2012 Dalby compressor station – Access Arrangement – AER’s final decision (10 August 2012) includes 8.75% tariff increase A
Slide 14: Energy Infrastructure: New South Wales
Energy Infrastructure For personal use only New South Wales Moomba Sydney Pipeline expansion – 4th year in 5-year expansion program – Young compressor upgrade – Fully contracted – gas transportation and Young compressor station and control centre storage services Young to Wagga lateral – Full ye
Slide 15: Energy Infrastructure: Victoria & South Australia
Energy Infrastructure For personal use only Victoria & South Australia Decreased gas flow due to milder weather and reduced gas use in generation – 6.5% decrease in gas flows to 230 PJ Euroa compressor station construction Victorian Transmission System – Northern augmentation stage 2 Sunbury l
Slide 16: Energy Infrastructure: Western Australia & Northern Territory
Energy Infrastructure For personal use only Western Australia & Northern Territory Goldfields Gas Pipeline – Commenced two pipeline expansions – Merits review process completed Mondarra Gas Storage Facility Mondarra Gas Storage Facility – First year construction of expanded facility Emu Downs
Slide 17: Asset Management and Energy Investments
Asset Management and Energy Investments For personal use only Asset Management Reduction in customer contributions Additional asset management – GDI (EII) Energy Investments Increased investment returns – Envestra Meter calibration Increased investment holding – HDF Additional investment r
Slide 18: Major capital expenditure
Major capital expenditure (1) For personal use only 2012 Description of 2012 major projects 2011 $ million $ million Growth capital expenditure Regulated Victoria Transmission System 35.1 Northern augmentation project, Sunbury looping 33.4 APA Gas Networks (Qld) 8.4 Includes southern network expansi
Slide 19: Fully covered distributions
Fully covered distributions For personal use only 2012 distribution in line with guidance (at least 34.4 cps) 60 51.9 52.6 52.5 2012 distribution 48.2 payout ratio(1) of 67.0% 50 (2011: 65.7%) 42.7 40 cents 34.4 35.0 30 32.8 29.5 31.0 20 10 0 (1) Distribution payout ratio: 2008 2009 2010 2011 2012 t
Slide 20: Capital management
Capital management For personal use only Cash and committed undrawn facilities of $1,106 million at 30 June 2012 . Metrics 30 Jun 2012 30 Jun 2011 Gearing (1) 65.0 % 66.2 % Interest cover ratio 2.48 times 2.03 times Average interest rate applying to drawn debt 7.39 % 7.47 % Interest rate exposur
Slide 21: Capital management
Capital management For personal use only Refinancing program focused on extending debt maturity, diversifying funding sources and reducing borrowing costs 2012 Results Presentation 20
Slide 22: Capital management: Funding APA beyond July 2012
Capital management For personal use only Funding APA beyond 1 July 2012 . Sources $m Uses $m Existing cash and undrawn facilities 1,106 Cash component of revised HDF bid 336 Subordinated notes net proceeds 460 Repay existing drawn Epic facilities 1,375 New 1-year bank commitments 300 Transaction
Slide 23: Capital management strategy
Capital management strategy For personal use only Managing balance sheet to maintain minimum investment grade credit rating metrics – Standard & Poor’s BBB; Moody’s Baa2 Refinancing program focused on extending debt maturity, diversifying funding sources and reducing borrowing costs – Next refin
Slide 24: Outlook and guidance
For personal use only Outlook and guidance Mick McCormack Managing Director and CEO 2012 Results Presentation 23
Slide 25: Sustainable long term growth and value
Sustainable long term growth and value For personal use only Growth catalysts – Carbon reducing policies 1,123 PJ 17,384 PJ – Gas supply developments – New market participants 72,559 PJ – Resources projects 39,750 PJ Pipeline Energy Pipeline System Enhancing our portfolio 139 PJ – Optimal gas de
Slide 26: APA's off-market takeover offer for HDF
APA’s off-market takeover offer for HDF For personal use only Rationale – Retained Epic Energy pipelines form a natural fit with APA’s assets – Enhanced gas transmission pipeline network – benefits APA securityholders and customers Process update – Takeover offer announced (14 December) – cash a
Slide 27: Delivering value for securityholders
Delivering value for securityholders For personal use only Five years of growth – Operating cash flow CAGR of 17.4%(1) – EBITDA CAGR of 12.1% (1) – Total securityholder return of 92% Indexed to 100 from 30 June 2007 to 30 June 2012 Source: APA based on IRESS data (1) Compound annual growth rate (C
Slide 28: Outlook and guidance
Outlook and guidance For personal use only Outlook Continued construction and development of expansion projects Progress takeover offer for HDF Guidance EBITDA – expected within a range of $540 million to $550 million – Compared with $515 million (1) for FY12 – Based on APA’s continuing busine
Slide 29: Supplementary information
For personal use only Supplementary information 2012 Results Presentation 28
Slide 30: Key financial ratios
Financials Key financial ratios For personal use only 2012 2011 Operating cash flow per security (cents) 52.5 52.6 Weighted average securities on issue (million) 639.7 551.2 Payout ratio 67.0 % 65.7 % Earning per security (cents) 20.4 19.7 Interest cover ratio (times) 2.48 2.03 Gearing ratio 65.0 %
Slide 31: Cash flow
Financials Cash flow For personal use only 2012 2011 $ million $ million Change Operating cash flow 335.6 290.0 8.3 % Distributions (net of DRP) 163.6 130.9 Available operating cash flow 172.0 159.2 (3.3%) Operating cash flow per security (cents) 52.5 52.6 1.4 % Distributions per security (cents) 35
Slide 32: Revenue analysis by business segment
Financials Revenue analysis by business segment For personal use only 2012 2011 $ million $ million Change Energy Infrastructure Queensland (1) 112.2 107.7 4.2% New South Wales 138.4 126.7 9.3% Victoria & South Australia 163.4 153.3 6.6% Western Australia & Northern Territory 195.9 157.5 24.4% Energ
Slide 33: Total committed debt facilities at June 2012
Financials Total committed debt facilities at 30 June 2012 For personal use only Facility Drawn Facility amount amount Tenor $ million(1) $ million(1) 2011 Bilateral borrowings (2) 300 157 3 years maturing July and August 2014 2011 Bilateral borrowing 150 0 5 years maturing October 2016 2011 Syndica
Slide 34: Regulatory update
Regulatory update For personal use only APA’s major price regulated assets Regulatory resets over the next five years Calendar year 2012 2013 2014 2015 2016 Roma Brisbane Pipeline Victorian Transmission System Goldfields Gas Pipeline Current regulatory period Next regulatory period Roma Brisbane
Slide 35: APA Group profile
APA Group profile For personal use only APA is Australia’s largest natural gas infrastructure business – Energy Infrastructure: natural gas pipelines and interconnected gas storage facilities across Australia, and the Emu Downs wind farm in Western Australia – Asset Management: provision of asset
Slide 36: APA asset and investment portfolio
APA asset and investment portfolio For personal use only APA Group assets and investments 21 Energy Infrastructure Asset Management 17 Queensland Commercial and/or operational services to: (1) Roma Brisbane Pipeline - Envestra Limited 24 21 NORTHERN 21 (2) Carpentaria Gas Pipeline - GDI (EII) - Allg
Slide 37: Disclaimer
Disclaimer For personal use only 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). Summary information This presentation contains sum
Slide 38: 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