Slide 1: Financial Results Presentation – ASX Announcement
Australian Pipeline Ltd ACN 091 344 704 | Australian Pipeline Trust ARSN 091 678 778 | APT Investment Trust ARSN 115 585 441 Level 25, 580 George Street Sydney NSW 2000 | PO Box R41 Royal Exchange NSW 1225 Phone +61 2 9693 0000 | Fax +61 2 9693 0093 APA Group | apa.com.au 26 August 2020 ASX ANNOUNCE
Slide 2: Financial results year ended 30 June 2020
financial results year ended 30 June 2020. For personal use only 26 August 2020
Slide 3: Disclaimer
disclaimer This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) as responsible entity of the Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) (APA Group). For personal use only The information in this presentation does not conta
Slide 4: Results overview
For personal use only Celebrating years results overview Rob Wheals CEO & Managing Director
Slide 5: FY2020 highlights – sound results
FY2020 highlights – sound results $ million FY2020 FY2019 change For personal use only Statutory results Revenue excluding pass-through(1) 2,129.5 2,031.0 Up 4.8% EBITDA 1,653.9 1,573.8 Up 5.1% Net profit after tax 317.1 288.0 Up 10.1% Operating cash flow(2) 1,095.9 1,012.1 Up 8.3% Operating cash fl
Slide 6: COVID-19 Impact & response
COVID-19 Impact & response Impact of COVID-19 For personal use only APA’s Crisis Management Team activated in March 2020: • Liaise with regulators, government • Pivotal part of essential service supply agencies, industry groups, customers chain and suppliers • Customers first: • Ensure ongoing provi
Slide 7: Orbost Gas Processing Plant – Transition Agreement
Orbost Gas Processing Plant – Transition Agreement For personal use only • APA and Cooper jointly focused on Orbost Gas Processing Plant, VIC completing the plant to deliver additional gas supply to the market • Aligns goals between the parties to maximise stable processing capacity • Provides for t
Slide 8: Strategic Imperative highlights (1/4) – customer centric
Strategic Imperative highlights (1/4) customer centric For personal use only APA made progress in the journey to put customers at the centre through our Red Dot program and collaborating with Energy Charter signatories across the energy supply chain Red Dot Program Energy Charter • Customer Promise
Slide 9: Strategic Imperative highlights (2/4) – operational excellence
Strategic Imperative highlights (2/4) operational excellence (safety & sustainability) For personal use only ✓ 99.9% gas Health and safety Sustainability nomination • FY2020 TRIFR result 9.09 • Developing a Sustainability delivery Roadmap, including a Climate ability to Change Management Plan respon
Slide 10: Strategic Imperative highlights (3/4) – growth & innovation
Strategic Imperative highlights (3/4) growth & innovation Growth Darling Downs Solar Farm, QLD For personal use only • $1.7 billion plus growth capex FY2017 – FY2020 • $288 million growth capex in FY2020 • +5.1% EBITDA growth in FY2020 Contributing assets include: – Darling Downs Solar Farm (QLD) –
Slide 11: Strategic Imperative highlights (4/4)
Strategic Imperative highlights (4/4) Financial Stakeholder People & For personal use only Strength Relationships Culture +8.3% OCF/security Stakeholder engagement New operating model to 92.9 cents per security AGP & RBP regulatory clarity of roles processes Ample liquidity Agile response cash & com
Slide 12: Financial performance
For personal use only Celebrating years financial performance Peter Fredricson Chief Financial Officer
Slide 13: Summary results
summary results $ million FY2020 FY2019 Change APA made the following For personal use only Revenue excluding contributions to the 2,129.5 2,031.0 4.8% pass-through(1) broader economy EBITDA 1,653.9 1,573.8 5.1% during FY2020: Depreciation and amortisation (651.6) (611.4) (6.6%) • $1,102 million EBI
Slide 14: FY2020 result: EBITDA by business segment
FY2020 result: EBITDA by business segment For personal use only % of FY20 $ million FY2020 FY2019 Change EBITDA(1) Energy Infrastructure Queensland 1,007.9 1,010.1 (0.2%) 58.3% New South Wales 160.8 149.4 7.6% 9.3% Victoria & South Australia 104.2 116.0 (10.2%) 6.0% Northern Territory 19.9 19.2 3.7%
Slide 15: FY2020 EBITDA bridge – Energy Infrastructure
FY2020 EBITDA bridge For personal use only Energy Infrastructure A$m 14
Slide 16: Low risk business model
low risk business model Energy Infrastructure revenue split • APA has robust risk management By revenue type For personal use only processes in place Capacity charge revenue: 79.1% Capacity charge revenue: 79.1% • Manage counterparty risks by: Regulated revenue: 8.0% Regulated revenue: 8.0% − Divers
Slide 17: Capital expenditure
capital expenditure $ million FY2020 FY2019 • FY20 Growth capex $287.7m Growth capex For personal use only • Over $1.7b invested in growth capex projects FY17-FY20 Regulated 46.5 30.6 Non-regulated • 5-10 year average capex has been $300 m-$400 m p.a. East Coast 207.4 208.6 • Stay-in-business capex
Slide 18: Capital management
capital management • Credit ratings: S&P BBB (outlook Stable, affirmed Feb 2020) For personal use only Moody’s Baa2 (outlook Stable, affirmed Feb 2020) • Strong credit metrics provide balance sheet flexibility • All outstanding debt is fully hedged into fixed interest rates out to FY2035 • Issued €6
Slide 19: Fully covered distributions
fully covered distributions • FY2020 distribution payout ratio(1) of 53.8% Franking Credits For personal use only • Components for FY2020 final distribution: • $85.3 million tax payable for FY2020 8.53 APT profit distribution 3.66 Franking credits (FY2019: $71.8 million) 11.74 APT capital distributi
Slide 20: Outlook & strategy
For personal use only Celebrating years outlook & strategy Rob Wheals CEO & Managing Director
Slide 21: Long-term success driven by fundamentals
Long-term success driven by fundamentals For personal use only • Growth in global energy demand • Resilience of our low risk business model through economic cycles • Portfolio of high-quality long-life assets • Strong skills and capability to navigate a constantly changing environment • Operational
Slide 22: Strategy remains relevant for energy transformation
Strategy remains relevant for energy transformation Demand for energy will continue. • Deliver services our customers value For personal use only Energy transformation is underway – requires a holistic consistent with APA’s Customer Promise response. • Continue to strengthen asset and stakeholder ma
Slide 23: A spectrum full of business opportunity for APA
A spectrum full of business opportunity for APA For personal use only low decarbonisation Illustrative deep decarbonisation $ Alternative Policy approaches $$$$ lowest investment highest investment Technology Transition Partial decarbonisation Net zero carbon Status quo decarbonisation (~50% by 2
Slide 24: Growth opportunities & progress
growth opportunities & progress ENERGY NORTH For personal use only EAST WEST FUTURE AMERICA “connect to “demand” “lower carbon” “core skillset” supply” - renewables - target regulated - firming power LDC / contracted - connection to - new infrastructure - new technologies gas transmission new gas su
Slide 25: Executive leadership team - finalised
Executive leadership team - finalised APA’s New Operating Model For personal use only Corporate Functions: Govern & Support Business Units: Execution People, Governance North Transformation Strategy & Infrastructure Safety & Finance & External Operations & Technology Commercial Development America C
Slide 26: Summary – FY2021 outlook
summary FY2020 – a solid result • EBITDA up 5.1% For personal use only • Operating cash flow up 8.3% • Growth capital expenditure continued - $287.7 million • Distribution of 50 cps, up 6.4%, plus 7.31 cps franking credits FY2021 Outlook • FY21 EBITDA guidance – $1,625 million to $1,665 million • FY
Slide 27: APA's uniquely integrated energy infrastructure
APA’s uniquely integrated energy infrastructure Assets and Investments Glossary For personal use only AGPGLOS Amadeus Gas Pipeline Darwin AL Agnew Lateral WPP BGP Bonaparte Gas Pipeline 734 PJ BGP BWSF Badgingarra Wind and Solar Farms BWP Berwyndale Wallumbilla Pipeline 16,830 PJ CGP Carpentaria Gas
Slide 28: For further information contact
For personal use only For further information contact: Jennifer Blake Head of Investor Relations Tel: +61 2 9693 0097 / +61 455 071 006 E-mail: jennifer.blake@apa.com.au Or visit the APA website at: www.apa.com.au 27