Apa Group · ASX:APA
Apa — Citi Australian Investment Conference 2009
23 slides from Apa's conference presentation, Oct 20, 2009
Slide 1: ASX Release: Citi Australian Investment Conference presentation
For personal use only ASX RELEASE 20 October 2009 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: • Citi Aust
Slide 2: APA Group – delivering security and growth
For personal use only APA Group – delivering security and growth Mick McCormack, Managing Director Citi Australian Investment Conference 20 October 2009
Slide 3: Outline
Outline For personal use only About APA APA FY2009 performance summary Security – Revenue – Capital management Growth – Natural gas demand – Gas fired generation – Carbon reducing legislation – APA expansion projects Summary 2
Slide 4: APA Group - Australia's largest natural gas infrastructure business
APA Group ‐ Australia’s largest natural gas For personal use only infrastructure business Australia has an abundance of natural gas reserves – 60,300 PJ of 2P reserves, with half in eastern Australia Demand for natural gas is increasing APA delivers gas from all major gas production sources to
Slide 5: APA's strengths
APA’s strengths For personal use only Unrivalled gas asset footprint – largest gas transporter of natural gas across Australia by pipeline length, capacity and volume Integrated portfolio of gas pipeline assets – providing revenue and operating synergies Attractive growth opportunities – enhan
Slide 6: APA's strategy
APA’s strategy For personal use only Maximise value for securityholders Focusing on gas infrastructure assets in Australia’s growing gas market and enhancing APA’s portfolio of assets Capturing revenue and operational synergies from APA’s significant asset base Pursuing opportunities that leve
Slide 7: Record full year result
Record full year result For personal use only Strong underlying fundamentals Underlying results (1) 2009 2008 Change Operating cash flow (2) $ 233.6 million $ 192.1 million up 22% Operating cash flow (2) per security 48.2 cps 42.7 cps up 13% Full year distribution 31.0 cps 29.5 cps up 5% Distributio
Slide 8: Strong segment performance in FY2009
Strong segment performance in FY2009 For personal use only Strong EBITDA growth in gas transmission and distribution 120 EBITDA split by segment Energy Assets sold to 100 investments EII Asset management 2008 5% 5% 7% 2009 80 Gas transmission $ million 60 and distribution 83% 40 EBITDA growth 20 G
Slide 9: Consistent and predictable performance
Consistent and predictable performance For personal use only Underlying operating cash flow Underlying EBITDA 250 $234 m 500 $459 m 200 400 $ million $ million 150 300 100 200 50 100 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2001 2002 2003 2004 2005 2006 2007 2008 2009 Operating cash flow per
Slide 10: FY2009 strategic and operational highlights
FY2009 strategic and operational highlights For personal use only Strong balance sheet Completed the establishment of Energy Infrastructure Investments Completed 2010 debt refinancing Business growth Capacity expansion of gas transmission pipelines Attractive investments Construction of th
Slide 11: Stable and secure revenue
Stable and secure revenue For personal use only More than 95% of APA’s revenue is derived from either price regulated (natural monopoly) assets or long‐term contracts Tariffs are set by regulation for price regulated assets, but existing contract terms remain (e.g. Goldfields Gas Pipeline, Roma
Slide 12: Prudent capital management
Prudent capital management For personal use only FY2009 metrics – Gearing(1) of 70.3%, reduced from 72.0% at 30 June 2008 – Interest Cover Ratio of 2.13x, increased from 1.86x in 2008 Equity raised – $79 million (Security Purchase Plan and Distribution Reinvestment Plan) Credit rating – S&P ‘B
Slide 13: Increased demand for natural gas
Increased demand for natural gas For personal use only Natural gas and Australian primary energy consumption Growth rates It is estimated that Australia’s 7.0% underlying gas demand will grow an 6.0% Natural gas Total average of 4%* annually over the next 5.0% 4.0% 10 years. Key growth drivers inc
Slide 14: Carbon reduction and renewable energy
Carbon reduction and renewable energy For personal use only Implementation of the Carbon Pollution Reduction Scheme (CPRS) and expanded Renewable Energy Target (RET) requires significant new generation investments in the next decade – $33 billion in new generation capacity, including back‐up gas f
Slide 15: Pipeline capacity for power generation
Pipeline capacity for power generation For personal use only APA primarily sells pipeline capacity – Gas fired power generation requires pipeline capacity and gas throughput: Baseload generation – capacity and gas volumes throughout the year Peak/intermediate generation – capacity and storage
Slide 16: Development and growth opportunities
Development and growth opportunities For personal use only Committed projects Northern expansion on the Victorian Transmission System Expansion of southern lateral on the Moomba Sydney Pipeline system Increase Moomba Sydney Pipeline storage and winter capacity in line with contracts Installa
Slide 17: Summary
Summary For personal use only Strong FY2009 results demonstrate strength of APA’s business APA continues to deliver value to its securityholders through growth in distributions and operating cash flow – at least 5% growth in distributions for FY2010 Quality portfolio of gas infrastructure asse
Slide 18: Supplementary information
For personal use only Supplementary information 17
Slide 19: APA's gas infrastructure business
APA’s gas infrastructure business For personal use only 18
Slide 20: APA business segments
APA business segments For personal use only FY2009 EBITDA % 1 Australia’s largest gas pipeline owner, present in each mainland state and territory APA manages and operates all its major gas transmission and distribution assets 83% Gas transmission pipelines: Gas – Approximately10,000 km of hig
Slide 21: Regulatory update
Regulatory update For personal use only APA’s major price regulated assets Regulatory resets over the next five years Regulatory resets are spread out over five years, with on average one reset per year – Next major asset reset is 1 January 2010 – Goldfields Gas Pipeline 20
Slide 22: Disclaimer
Disclaimer For personal use only The information contained in this presentation is given without any liability whatsoever to Australian Pipeline Trust or APT Investment Trust or any of its related entities (collectively “APA Group”) or their respective directors or officers, and is not intended to c
Slide 23: Delivering Australia's energy
For personal use only Delivering Australia’s energy For further information contact Chris Kotsaris 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 22
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