Apa Group · ASX:APA
Apa — Australian Pipeline Trust — H1 FY2003 Earnings Presentation
30 slides from Apa's earnings presentation, Mar 5, 2003
Slide 1: Australian Pipeline Trust Interim Results 6 Months to 31 December 2002
Slide 2: Half Year Results in Summary
Half Year Results in Summary APA Strongly Positioned $M 25 9 21.3 20 - 15 + 2000 2001 2002 NPAT (after minorities) Australian Pipeline Trust O- @ 2002 Net profit after tax: +12.1% from pcp
Slide 3: Half Year Results in Summary
Half Year Results in Summary $M 125.1 129.1 138.4 150 100 50 + 2000 2001 2002 Revenue - Total revenue: +7.2% from pcp - Pipeline revenue: +7.0% from pcp ” Other Revenue @ Total Pipeline Revenue - includes SCP Equity Contribution Australian Pipeline Trust O-
Slide 4: Agenda
Agenda ¢ Operational Review * Financials * Regulators & Our Pipelines * Energy Policy - The Road Ahead * Gas Pipeline Industry ¢ Opportunities * Summary Australian Pipeline Trust O-
Slide 5: OG PET Sa Toss oe aE SO se
OG PET Sa Toss oe aE 0 SO se a a fo | Ae — i. : ee i ic : a ae ee i (ae ee a = ee a ' Le eo a Coes . Se oe a ie eee Coe eos et tenet on Siete ioe is ne ae Cee en
Slide 6: Operational Review
Operational Review * Moomba Sydney Pipeline (NSW, QLD, ACT, SA) — Stable revenues from GTD; — New contract with AGL post 2006. * Roma to Brisbane Pipeline (Qld) — Revenue increased; — Capacity expanded. Australian Pipeline Trust O-
Slide 7: Operational Review
Operational Review * Carpentaria Gas Pipeline (Qld) — Revenue increased; — Capacity expanded. * Goldfields Gas Transmission Pipeline (WA) — Revenues increased; — Capacity increase imminent. Australian Pipeline Trust O-
Slide 8: Operational Review
Operational Review ¢ Acquisition of a minority interest in Goldfields Gas Transmission effective 1 January, 2003; APA increasing interest to 48.5%; another step in our strategy of acquiring minority interests in our pipelines; the price meets APA strategic and investment criteria; Australian Pipelin
Slide 9: Operational Review
Operational Review ° Westlime Pipeline (WA) shutdown. Small pipeline - no revenue impact, and Windimurra Pipeline (WA) running on reduced throughput due to temporary shutdown of the vanadium mine. Australian Pipeline Trust O-
Slide 10: Financial Summary
Financial Summary Total Revenue 138.4 129.1 7.2 EBITDA 70.2 66.1 6.2 Profit after tax & minorities 21.3 19.0 12.1 Earnings p.u (cents) 8.7 7.8 11.5 Interim Distribution p.u. (cents) 10.0 10.0 Net Interest Cover (x) 2.5 24 Net Asset Backing per unit * $1.80 $1.80 * Reflects return of capital in the d
Slide 11: Financial Summary
Financial Summary Half Year Revenue Breakdown $M 125.1 429.1 138.4 150 Miiterest& 0 therRevenue 100 ther P pelme Revenue MP pelne Revenue-SCP Equity Contrbution 50 + GP pelme Revenue - Transportation 2001 Revenue Australian Pipeline Trust O-
Slide 12: Financial Summary
Financial Summary EBITDA 70.2 | 66.1 6.2 Depreciation & Amortisation 12.3 12.8 Net Interest Expense 24.2 22.9 (5.7) Profit Before Tax 33.7 30.4 10.9 Tax 12.3 11.3 Minorities 0.14 0.15 Net Profit After Tax 21.3 19.0 12.1 Australian Pipeline Trust O-
Slide 13: Financial Summary
Financial Summary Performance strengthened by « Increased revenues due to: - — Completion of Roma -Brisbane Pipeline capacity expansion -looping; — Increased throughput on Carpentaria Gas Pipeline. ¢ Increased equity contribution from Goldfields Gas Transmission Pipeline due to higher underlying rev
Slide 14: Financial Summary
Financial Summary Revenue for Half Year by Pipeline $M 80 4 MPipeline Revenue WP assthrough Revenue 52.1 593 MSP - Moomba to Sydney 60 4 43.5 RBP - Roma to Brisbane 21 2.0 41.2 CGP - Carpentaria Gas AGT - Amadeus Gas Trust GGT - Goldfields Gas Transmission MWP - Mid Western Pipeline 40 4 133 41.9 9
Slide 15: Financial Summary
Financial Summary Cash Flow Statement ¢ Cash flow from operating activities (excl interest) up 11.4 % from $66.5 million to $74.1 million due to:- — Higher profit during the period; — Working capital management. * Capital Investment - $12.9 million: — RBP - looping stage 6; — CGP - compressor. ¢ Dis
Slide 16: Financial Summary
Financial Summary Distribution paid/payable to 31 Dec 02 TotalD istrbuton 5 0 5 0 10.0 Income -unfranked 3.0 3.0 6 .0 Capital 2.0 2 0 40 Date ofD istrbuton 20-Dec-02/31-M ar03 ¢ Distribution levels maintained Australian Pipeline Trust O-
Slide 17: Regulators & Our Pipelines
Regulators & Our Pipelines Moomba Sydney Pipeline (NSW, QLD,ACT, SA) td NCC recommends continuing coverage under National Gas Access Code; Minister is reviewing recommendation; Appeal to Australian Competition Tribunal or litigation remains an option, and ACCC pursuing access arrangement. Australian
Slide 18: Regulators & Our Pipelines
Regulators & Our Pipelines Goldfields Gas Transmission Pipeline (WA) Draft determination by Regulator ignored impact of State Agreement; GGT pursued litigation to recognise State Agreement; Epic decision caused Regulator to reconsider his position, and Litigation suspended pending Regulator’s delibe
Slide 19: Regulators & Our Pipelines
Regulators & Our Pipelines Roma-Brisbane & Carpentaria Gas Pipelines (QLD) e Both pipelines developed by agreement with QLD Government prior to National Gas Access Code; Both pipelines were derogated from the National Access Code; NCC has now (5 years on) recommended that both pipeline regimes are “
Slide 20: Energy Policy - Road Ahead
Energy Policy - Road Ahead ¢ There is still no national energy policy; * The National Gas Access Code is being strongly resisted by all pipeline owners; * On-going conflict between regulators, the NCC and the Gas Industry is impacting on the long- term investment in pipelines; ¢ The promised review
Slide 21: Pee
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Slide 22: Transmission Pipelines
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Slide 23: ee ne
ee ne ae Sea ce ogee NORTHERN / oo es TERRITORY eee a Be Be a oe ry ee oe SOUTH AUSTRALIA: ere ae oe imi ecm oto a ih I Oo ea. on ee oe ae ee cd = . — gs oa ae e fe e fe ae aaa: EG ooo Ta i (cee ce Se ee aie ee See Se cern te nen ane ee cae ee Secs enn
Slide 24: Gas Pipeline Industry
Gas Pipeline Industry Overview * Gas consumption expected to grow at 3.4% per year to 2020"; * Gas fired electricity expected to grow at 4.9% per year to 2020*; ¢ Major new gas supply needed by end of this decade, and * Anumber of overseas players are reviewing their investment in Australia. * ABARE
Slide 25: Opportunities
Opportunities Our goals remain the same ¢ To fill our existing pipelines; ¢ Continue acquiring minorities; ¢ Participate in the industry rationalisation, and ¢ Consider international opportunities. Australian Pipeline Trust O-
Slide 26: Opportunities
Opportunities * Coal Bed Methane — already delivering gas in Queensland, and — from 2007 contracted to deliver to Queensland and NSW. ¢ Northern Gas reduced in priority — PNG delayed but still active; — Timor Sea now unlikely; — Bonaparte Basin is insufficient for south east Australian market, and —
Slide 27: Opportunities
Opportunities ¢ Exploring complementary investment opportunities to diversify asset and regulatory risk: — coal bed methane; — gas treatment and storage; — power generation; — other pipeline activities. Australian Pipeline Trust O-
Slide 28: APA is well positioned
APA is well positioned * Broad range of pipeline assets; ¢ Strong balance sheet; ¢ Strong profit performance; ¢ Strong operating & maintenance back-up; ¢ Understands the regulatory environment; * Strong unit price performance, and ¢ Long term commitment to Australia. Australian Pipeline Trust O-
Slide 29: Summary
Summary Delivering secure revenues and profitability and managing regulatory issues; The urgency to develop northern Australia gas has reduced and we are exploring complementary opportunities; Gas pipeline industry rationalisation commenced and APA is active; We are on track to exceed FY2002 results
Slide 30: We Deliver
Australian Pipeline Trust — H1 FY2003 Earnings Presentation on 6ix