Apa Group · ASX:APA
Apa — Investor Presentation (August 2019)
35 slides from Apa's investor presentation, Aug 21, 2019
Slide 1: APA Group investor pack
APA Group investor pack. For personal use only As at 21 August 2019
Slide 2: Thanks for your interest in APA
Thanks for your interest in APA. For personal use only In this pack you’ll find: • Snapshot, Strategy and Value Proposition 4 - 10 • Company Structure 12 - 13 • Financial Metrics 15 - 18 • Gas Market Overview 20 - 22 • Asset Specific Information 24 - 33
Slide 3: APA overview
For personal use only APA overview 3
Slide 4: Snapshot of APA
snapshot of APA …a leading Australian energy infrastructure business For personal use only Assets owned/operated Market capitalisation >A$21 billion A$12.4 billion (as at 19 August 2019) A$0.6 billion (as at 30 June 2000) Gas transmission(1) 15,425 km transmission pipelines Credit ratings Moody’s: B
Slide 5: Our footprint
our footprint Darwin APA assets and investments Integrated Operations Centre For personal use only APA operated assets Gas-fired power station Other natural gas pipelines Gas processing plant Electricity interconnectors Gas storage LNG plant Northern Territory Wind Farm Natural Gas & ethane 2P reser
Slide 6: APA's strategy
APA’s strategy • Deliver services our customers value consistent with our Customer Promise For personal use only • Continue to strengthen asset and stakeholder management, development and operational capabilities • Our growth focus is to enhance our portfolio of: – gas transmission pipelines – power
Slide 7: Our value proposition
our value proposition “…owner and operator of energy infrastructure underwritten by long term contracts with highly creditworthy counterparties…” For personal use only Quality & diversified infrastructure Ongoing Low risk organic business growth model 7
Slide 8: Why invest in APA?
why invest in APA? Uniquely integrated energy infrastructure portfolio Interconnected gas transmission pipeline grid / quality infrastructure For personal use only ~91% assets Provide customers with flexibility – multi asset and/or multi service contract options Integrated Operations Centre
Slide 9: Reliable guidance (historical)
reliable guidance (historical) • Stable cash flows For personal use only • Low risk business model • Majority take or pay contracts with CPI adjustments • Revenue weighted average contract tenor remains >12 years • Established customer relationships • Quality and diversified asset portfolio $1,800m
Slide 10: Capital expenditure
capital expenditure Growth capex: >$400 m pa average over the last 5 years >$300 m pa average over the last 10 years For personal use only A$m $900m 856 $800m $700m ~$300-$400 growth $600m 581 capex p.a over the next 2-3 years $500m 447 397 396 $400m 334 341 302 * $300m 249 194 $200m 173 135 $100m $
Slide 11: Company structure
For personal use only company structure 11
Slide 12: Group structure
group structure • APA Group is listed as a stapled structure on the Group Structure Australian Securities Exchange (ASX:APA) For personal use only APA Group Securityholders • APA is comprised of two registered managed investment schemes: Australian Pipeline Trust APT Investment Trust Australian Pi
Slide 13: Internal management team
internal management team Rob Wheals Sam Pearce Chief Executive Officer and Managing Director Group Executive Networks and Power For personal use only Sam is responsible for the operation and management of APA Rob was appointed APA’s Chief Executive Officer and Group’s fully and minority owned gas di
Slide 14: Financial metrics
For personal use only financial metrics 14
Slide 15: Five year financials
5 year financials Financial Performance (Statutory) FY2019 FY2018 FY2017 FY2016 FY2015 Revenue $m 2,452.2 2,386.7 2,326.4 2,094.3 1,553.6 Revenue excluding pass-through(1) $m 2,031.0 1,941.4 1,888.3 1,656.0 1,119.2 For personal use only EBITDA $m 1,573.8 1,518.5 1,470.1 1,330.5 1,269.5 Depreciation
Slide 16: Five year financials (con't)
5 year financials (con’t) For personal use only EBITDA by Segment (Excluding Significant Items) FY2019 FY2018 FY2017 FY2016 FY2015 EBITDA (Continuing businesses) Energy Infrastructure East Coast: Queensland $m 1,010.1 962.2 925.4 855.8 340.1 New South Wales $m 149.4 147.1 149.5 121.7 120.8 Victoria
Slide 17: Distributions and TSR returns
distributions and TSR returns APA’s distributions have increased every year for 19 years 17.4% compound annual growth rate pa For personal use only TSR cents 2500 60.0 TSR: 2,036.9%(1) since listing CAGR: 17.4% pa 47.0 50.0 2000 45.0 43.5 41.5 38.0 40.0 35.5 36.3 34.4 35.0 1500 32.8 31.0 29.5 28.0 3
Slide 18: Capital management
capital management APA’s parameters for capital management and distributions For personal use only Capital Management: • Retain our 2 credit ratings at Baa2/Stable (Moody’s) and BBB/Stable (S&P) to facilitate access to global debt capital markets • Fund growth with an appropriate mix of funds retain
Slide 19: Gas market overview
gas market overview For personal use only 19
Slide 20: Gas demand, supply, price trends
gas demand, supply, price trends Gas supply and demand East coast gas demand & production Contingent and Prospectives AEMO 2019 Gas Statement of Opportunities: For personal use only 2,500PJ 2P Undeveloped • Gas Supply from existing and committed gas 2P Developed AEMO gas demand forecast developments
Slide 21: Regulation of Australian gas pipelines
regulation of Australian gas pipelines APA pipelines by regulation type • In FY2019, 8.3% of APA’s EBITDA in Energy Infrastructure was For personal use only from full regulated assets • Gas pipelines are regulated by the Australian Energy Regulator (AER) or, the Economic Regulation Authority of West
Slide 22: Regulation of Australian gas pipelines (con't)
regulation of Australian gas pipelines (con’t) Schedule of regulatory For personal use only reset dates for APA Access • Apply for a term, generally 5 years arrangement • Set out the terms and conditions of third party access, including • At least one reference service that is commonly sought by cus
Slide 23: Asset specifics
For personal use only asset specifics 23
Slide 24: History - Energy Infrastructure business segment
history - Energy Infrastructure business segment 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Roma Brisbane Pipeline 85%,60 TJ/d 100%, 208 TJ/d 233 TJ/d Bi-directional Carpentaria Gas Pipeline 70%, 90 TJ/d 100%, 102 TJ/d 119 TJ/d Bi-directi
Slide 25: History - Energy Investments and Asset Management segments
history - Energy Investments and Asset Management segments For personal use only 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 SEA Gas Pipeline 33.3% 50% Allgas Gas Distribution Network 100% 20% AGN (Envestra) 17% 30.6% 33% 0%, O&M until 2027 Daandine and X41 Power Stati
Slide 26: Historical normalised EBITDA by asset - Energy Infrastructure
historical normalised EBITDA by asset – Energy Infrastructure $ millions FY15 FY16 FY17 FY18 FY19 East Coast Grid For personal use only Wallumbilla Gladstone Pipeline 35.8 475.2 488.0 515.9 542.4 South West Queensland Pipeline 188.3 240.3 242.4 244.3 250.0 Moomba Sydney Pipeline and other NSW pipeli
Slide 27: Wallumbilla Gladstone Pipeline, QLD
Wallumbilla Gladstone Pipeline, QLD Mount • Delivers gas to Gladstone for LNG export Isa For personal use only • Fully contracted revenue through to 2035, derived Queensland through take-or-pay GTAs with foundation shippers Wallumbilla (BG Group & CNOOC) with two 10 year options to Gladstone Gladsto
Slide 28: East Coast and Central Region
East Coast and Central Region APA’s 7,600 plus kilometre integrated pipeline grid on the east coast of FY2019 Revenue by customer industry Australia has the ability to transport gas seamlessly from multiple gas For personal use only Industrial & Others production facilities to gas users across four
Slide 29: Western Australia
Western Australia APA services a range of customers in Western Australia within Revenue by customer industry the resources, industrial and utility sectors. APA’s assets enable For personal use only Energy our customers to have a reliable energy source to supply their Industrial & Others 2% 12% iron
Slide 30: Power generation - gas and renewables
power generation - gas and renewables Diamantina Power Station in Queensland • APA owns and/or operates a portfolio of gas, wind and solar power generation assets totalling ~908 MW For personal use only • Assets are located in Queensland, South Australia and Western Australia • Our key power generat
Slide 31: Mid stream processing and storage
mid stream processing and storage Orbost Gas Processing Plant • Located approximately 375km east of Melbourne on the Victorian east coast For personal use only • Connects Cooper Energy’s Sole gas field to eastern Australian gas market • Processes up to ~70 TJ/day (from Q4 CY2019) • Scope within the
Slide 32: Asset Management business segment
Asset Management business segment • Provides asset management and operational services for most of APA’s energy infrastructure assets, energy investments, as well as to third parties. For personal use only • Generally provided under long-term contracts (e.g. AGN contract until 2027) • Covers assets
Slide 33: Energy investments business segment
Energy investments business segment For personal use only 33
Slide 34: 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 35: For further information contact
For personal use only For further information contact: Jennifer Blake Group Head of Investor Relations Tel: +61 455 071 006 E-mail: jennifer.blake@apa.com.au Or visit the APA website at: www.apa.com.au 35