Apa Group · ASX:APA
Apa — Merger or Acquisition (June 2011)
20 slides from Apa's merger presentation, Jun 23, 2011
Slide 1: ASX Release cover letter
For personal use only ASX RELEASE 23 June 2011 The Manager Company Announcements Office 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: • Presentation
Slide 2: APA expands its infrastructure portfolio: $300 million institutional equity raising
For personal use only APA expands its infrastructure portfolio $300 million institutional equity raising 23 June 2011 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS
Slide 3: Disclaimer
Disclaimer For personal use only This investor presentation (Presentation) is issued by APA Group (APA Group), which comprises Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) (of which Australian Pipeline Limited (ACN 091 344 704) is the responsible entity).
Slide 4: Disclaimer (cont)
Disclaimer (cont) For personal use only Investment risk: An investment in APA Group stapled securities is subject to investment and other known and unknown risks, some of which are beyond the control of APA Group. None of APA Group, any of its related bodies corporate or any other person or organisa
Slide 5: Equity raising overview
Equity raising overview For personal use only $300 million institutional placement Offer size Approximately 78 million new APA securities (14% of issued capital) New securities not entitled to FY11 final distribution but otherwise rank equally Securities with existing APA securities Fixed pr
Slide 6: APA well positioned in a growing industry
APA well positioned in a growing industry For personal use only Unrivalled gas asset footprint – Largest transporter of natural gas 2,456 PJ across Australia (1) Stable and secure cash flow 68,889PJ – Regulated & contracted revenue Attractive growth opportunities 32,551 PJ – Enhancing capacity
Slide 7: 11-year history of delivering value & growth
11-year history of delivering value & growth For personal use only Total securityholder returns since listing 600 APA total securityholder returns 16.5% p.a. CAGR 500 S&P/ASX 200 accumulation index S&P/ASX 200 Utilities accumulation index 400 300 200 100 0 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 J
Slide 8: Strategy for sustainable, profitable growth
Strategy for sustainable, profitable growth For personal use only Continue to maximise value for APA’s investors Secure long-term cash flow underpinned by contractual or regulatory arrangements Enhancing APA’s portfolio of gas infrastructure assets in Australia’s growing gas market – Abundant dome
Slide 9: Use of proceeds
Use of proceeds For personal use only Emu Downs 80 MW operating wind farm in Western Australia, and 130 MW acquisition - development rights for an adjacent site wind farm and Financial close by early July 2011 development Secure revenue, with long term PPA contracts for electricity and site Re
Slide 10: Sources and use of proceeds
Sources and use of proceeds For personal use only Committed/expected capital expenditure Funding sources (estimate) Energy infrastructure acquisitions Equity raising proceeds: Emu Downs $171 million Institutional placement $300 million Acquisition costs $ 9 million(1) DRP (4) $ 50 million $180 milli
Slide 11: Emu Downs
Emu Downs For personal use only Acquisition price of $171 million (1) SWIS HV electricity – Represents FY12 EBITDA multiple of approx. 8.5 times transmission line – Represents a multiple of approx. $2.2 million per installed MW 130 MW – Operating cash flow per security accretive in FY12 developmen
Slide 12: Energy solutions for customers
Energy solutions for customers For personal use only The acquisition enhances existing APA Geraldton assets, with delivery of total energy solutions for customers – Emu Downs is located close to APA’s Parmelia Gas Pipeline and associated Mondarra Gas Storage Facility Mondarra Gas Storage Facility
Slide 13: A strategic acquisition
A strategic acquisition For personal use only Strategic objectives Why Emu Downs? Leveraging APA’s Well located to complement and enhance APA’s existing assets – the Parmelia Gas Pipeline and Mondarra Gas Storage Facility gas infrastructure APA’s gas pipeline and/or storage services provide infr
Slide 14: Committed or planned capital projects
Committed or planned capital projects For personal use only Amadeus Gas Pipeline Buy-out of the residual position of the lease (2011) Roma Brisbane Pipeline Capacity expansion (2011-2012) Mondarra Gas Storage APA Gas Network Facility Expansion into new housing Expanding storage areas capacity and ca
Slide 15: Financial impact
Financial impact For personal use only Post equity raising and acquisition Gearing reduces from 70.1% (1H11) to an estimated 67%(1) Capital raising strengthens APA’s credit metrics and further underpins investment grade credit ratings from Standard & Poor’s (BBB) and Moody’s (Baa2) FY11 guidan
Slide 16: Summary
Summary For personal use only APA is Australia’s largest natural gas infrastructure business, owning and/or operating 12,700 km gas pipelines across Australia Successful history of delivering value and growth – Total securityholder return CAGR of 16.5% per annum since listing in 2000 APA is de
Slide 17: Supplementary information
For personal use only Supplementary information Not for distribution or release in the United States or to U.S. persons 16
Slide 18: APA asset and investment portfolio
APA asset and investment portfolio For personal use only APA Group assets and investments 20 Gas transmission and Asset Management distribution Commercial and/or operational services to: 17 Queensland - Energy Infrastructure Investments 23 20 NORTHERN (1) Roma Brisbane Pipeline - Envestra Limited TE
Slide 19: FY11 interim result summary
FY11 interim result summary For personal use only Consistent financial performance 1H11 – Increasing key financial measures Operating cash flow $170 million up 6% – Maintaining cash flow stability and Revenue excluding pass-through $370 million up 8% revenue certainty EBITDA $264 million up 8% – M
Slide 20: For further information contact
For personal use only For further information contact Chris Kotsaris Investor Relations, APA Group Tel: +61 2 9693 0049 E-mail: chris.kotsaris@apa.com.au Delivering Australia’s energy or visit APA’s website www.apa.com.au Not for distribution or release in the United States or to U.S. persons 19