Slide 1: Financial Results Year ended 30 June 2013
For personal use only Financial Results Year ended 30 June 2013 21 August 2013
Slide 2: Result overview and strategic highlights
For personal use only Result overview and strategic highlights Mick McCormack Managing Director and CEO APA FY13 Results Presentation 2
Slide 3: Consistent strategy, core business growth
Consistent strategy, core business growth For personal use only Focus on long term, low-risk and sustainable growth of our core business – gas pipelines and distribution infrastructure Expanding our core business FY 2013 activities ... achieving appropriate commercial returns for – HDF acquisition
Slide 4: Result overview
Result overview For personal use only $ million 2013 2012 Change Normalised results (1) EBITDA 667 535 up 25 % Profit 179 140 up 27 % Operating cash flow 433 336 up 29 % Operating cash flow per security (cents) 56.0 52.5 up 7% Statutory results EBITDA 769 526 up 46 % Profit 299 131 up 129 % Operatin
Slide 5: Successful HDF acquisition
Successful HDF acquisition Value accretive acquisition For personal use only – Quality assets with secure long-term revenue PILBARA PIPELINE contracts and growth potential SYSTEM – Acquisition model exceeded Surprised on the upside SOUTH WEST QUEENSLAND – Growth projects underway on the SWQP – M
Slide 6: Growth capital projects across the portfolio
Growth capital projects across the portfolio Continued and/or completed $1.5 billion(1) expansion projects across the country For personal use only – appropriate commercial returns and secure, long-term revenue FY 2013 FY 2014 FY 2015 Roma Brisbane Completed 10% increase Pipeline in pipeline capac
Slide 7: Strategic development of pipeline grids
Strategic development of pipeline grids For personal use only APA’s east coast grid: APA’s WA infrastructure: > 7,000 km of pipelines Servicing north west mining region Darwin 5 major pipelines East coast grid 5 states and territories Gas transport and storage for Perth – Physical interface of pip
Slide 8: Safety and sustainability reporting
Safety and sustainability reporting Health and safety For personal use only LTIFR 7.3 – Long-term safety goal of Zero Harm - program 6.1 4.9 of continuous improvement – Decrease of LTIFR(1) to 2.1, down from 2.2 2.2 2.1 Natural gas and carbon reduction – Carbon tax – direct cost impact immateria
Slide 9: Financial performance
For personal use only Financial performance Peter Fredricson Chief Financial Officer APA FY13 Results Presentation 9
Slide 10: Solid and consistent result
Solid and consistent result For personal use only $ million 2013 2012 Change Normalised Significant Statutory Statutory Normalised Statutory items Revenue excluding pass-through(1) 919.5 - 919.5 758.0 6.6% 21.3% EBITDA 667.1 101.7 768.8 525.8 24.6 % 46.2 % Depreciation and amortisation (130.5) - (13
Slide 11: EBITDA by business segment
EBITDA by business segment For personal use only $ million 2013 2012 Change Energy Infrastructure Queensland (1) 163.7 79.6 105.8 % FY13 EBITDA by business segment New South Wales 112.7 113.1 (0.4) % (continuing business) Energy Victoria & South Australia 125.7 123.1 2.2 % Investments Asset 8% Weste
Slide 12: EBITDA contributions
EBITDA contributions For personal use only $94.6 million $646.5 million $36.6 million $551.9 million $535.5 million ($20.2 million) $515.3 million Energy Investments 7.1% Asset Management Energy Infrastructure FY12 EBITDA FY12 EBITDA Divested business Divested business FY12 FY12EBITDA EBITDA Growth
Slide 13: Energy Infrastructure: Queensland
Energy Infrastructure Queensland For personal use only Roma Brisbane Pipeline 10% increase in capacity Commissioned September 2012 South West Queensland Pipeline Moomba compression facility Integration completed EBITDA 9 months earnings contribution $180m $163.7 million $160m Moomba compress
Slide 14: Energy Infrastructure: New South Wales
Energy Infrastructure New South Wales For personal use only Moomba Sydney Pipeline Completed 5 year expansion program Spare capacity recontracted January 2013 Commenced gas transportation services between Victoria and Sydney Young compressor station and control centre Focused recontracting p
Slide 15: Energy Infrastructure: Victoria & South Australia
Energy Infrastructure Victoria & South Australia For personal use only Victorian Transmission System Gas volume increase of 5% due to cooler weather and gas exports to NSW Commissioned Euroa compressor station, part of Northern Augmentation Project, and Sunbury lateral Longford meter station upg
Slide 16: Energy Infrastructure: Western Australia & Northern Territory
Energy Infrastructure Western Australia & Northern Territory For personal use only Goldfields Gas Pipeline Construction progressing on compression and off-take facilities Mondarra Gas Storage Facility Expansion completed and operating Mondarra Gas Storage Facility commercially since July 2013 EB
Slide 17: Asset Management and Energy Investments
Asset Management and Energy Investments Asset Management For personal use only EBITDA $60m Increased operator fees from Envestra due to $45.4 million Envestra revenue increases $40m One-off Full year contribution of asset management customer contributions revenue – GDI (EII) $20m Contracted Cu
Slide 18: Distribution payout metrics
Distribution payout metrics For personal use only $432.6 million ($58.3 million) Normalised Payments operating cash flow incurred by HDF $374.4 million $ million Statutory Management fees 3.1 operating cash flow $295.3 million Incentive fees 28.5 Distributions Bid defence costs 26.7 TOTAL 58.3 68.2%
Slide 19: Fully covered distributions
Fully covered distributions For personal use only Distributions in line with guidance for FY 2013 cents FY13 distribution payout 60 56.0 ratio(1) of 68.2% 51.9 52.6 52.5 50 48.2 42.7 40 34.4 35.0 35.5 30 32.8 29.5 31.0 20 10 0 FY08 FY09 FY10 FY11 FY12 FY13 (1) Distribution payout ratio: distributi
Slide 20: Capital expenditure
Capital expenditure For personal use only $ million 2013 Major projects in FY13 2012 Growth capex Regulated (1) 22.6 Victoria Transmission System 43.5 Major Projects Queensland expansion 80.8 Roma Brisbane Pipeline ; Wallumbilla and Moomba compression 35.7 New South Wales expansion 24.1 Moomba Sydne
Slide 21: Strong balance sheet
Strong balance sheet For personal use only $ million 30 June 2013 30 June 2012 Change Current assets 280 585 (52)% Property, plant and equipment 5,280 3,472 52% Other non-current assets 2,138 1,439 49% Total Assets 7,699 5,496 40% Current debt 81 - - Other current liabilities 411 301 37% Total curre
Slide 22: Capital management
Capital management Cash and committed undrawn facilities of $972 million at 30 June 2013 For personal use only . Metrics 30 Jun 2013 30 Jun 2012 Gearing (1) 62.8 % 65.0 % Interest cover ratio 2.30 times 2.48 times Average interest rate applying to drawn debt(2) 7.35 % 7.39 % Interest rate exposu
Slide 23: Capital management: debt maturity profile
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 (30 June 2013) $1,000m $800m $600m $400m $515m $735m $525m $536m $200m $414m $271m $295m $289m $3
Slide 24: Outlook and guidance
For personal use only Outlook and guidance Mick McCormack Managing Director and CEO APA FY13 Results Presentation 24
Slide 25: Growth across the portfolio
Growth across the portfolio Continued east coast grid development For personal use only – Demand for trans-pipeline and other services – Moomba Sydney Pipeline recontracting Diamantina and – FEED for Vic to NSW infrastructure Leichhardt Power Stations Continued expansions projects Goldfields Gas
Slide 26: Envestra rationale and update
Envestra rationale and update For personal use only Core business – gas distribution – Core competencies – operation and ownership of gas infrastructure – Operator since 2007 Largest shareholder and service provider – Align ownership with full operational control and – retain value created by in
Slide 27: Outlook and guidance for FY 2014
Outlook and guidance for FY 2014 For personal use only Outlook Continue development of expansion projects East coast gas grid development Guidance EBITDA – expected within a range of $715 million to $730 million – 11% to 13% increase on 2013 EBITDA(1) Net interest cost – expected within a ra
Slide 28: Supplementary information
For personal use only Supplementary information APA FY13 Results Presentation 28
Slide 29: Significant items - details
Significant items - details For personal use only $million 2013 Significant items impacting EBITDA Incurred by APA Write back of transaction costs in respect of Allgas sale 18.6 Gain on APA’s previously held interest in HDF 142.3 Transaction and integration costs on acquisition of HDF (16.9) 144.0 I
Slide 30: Revenue by business segment
Revenue by business segment For personal use only $ million 2013 2012 Change Energy Infrastructure Queensland (1) 217.5 112.2 93.8 % New South Wales 139.3 138.4 0.6 % Victoria & South Australia (2) 164.7 163.4 0.8 % Western Australia & Northern Territory 219.9 195.9 12.2 % Energy Infrastructure tota
Slide 31: Debt facilities
Debt facilities Total committed debt facilities at 30 June 2013 For personal use only Facility Drawn $million(1) amount amount Tenor 2011 Bilateral borrowings (2) 300 175 3 years maturing July and August 2014 2011 Bilateral borrowing 150 0 5 years maturing October 2016 2011 Syndicated facility (3) 9
Slide 32: Regulatory update
Regulatory update APA’s major price regulated assets For personal use only Regulatory resets over the next five years 2013 2014 2015 2016 2017 2018 Victorian Transmission System Goldfields Gas Pipeline Roma Brisbane Pipeline Current regulatory period Next regulatory period Roma Brisbane Pipeline
Slide 33: APA profile
APA profile APA is Australia’s largest natural gas infrastructure business For personal use only – 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 manage
Slide 34: APA asset and investment portfolio
APA asset and investment portfolio For personal use only APA FY13 Results Presentation 34
Slide 35: 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 36: 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