Apa Group · ASX:APA
Apa — Macquarie Australia Conference 2024
28 slides from Apa's conference presentation, May 9, 2024
Slide 1: APA Presentation – Macquarie Australia Conference (ASX announcement)
APA Group Limited ACN 091 344 704 | APA Infrastructure Trust ARSN 091 678 778 | APA 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 9 May 2024 ASX ANNOUNCEMENT APA Gr
Slide 2: Macquarie Australia Conference
For personal use only Macquarie Australia Conference 9 May 2024 APA Macquarie Conference Presentation 2024 1
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by APA Group Limited (ACN 091 344 704) statements about market and industry trends, which are based on interpretations as responsible entity of the APA Infrastructure Trust (ARSN 091 678 778) and of current market conditions and are subject to risk fact
Slide 4: Acknowledgement of Country
For personal use only Acknowledgement of Country At APA, we acknowledge the Traditional Owners and Custodians of the lands on which we live and work throughout Australia. We acknowledge their connections to land, sea and community. We pay our respects to their Elders past and present, and commit to
Slide 5: Safety share: Pilbara Energy System integration
Safety share: the Pilbara Energy System integration has allowed a sharing of best practice between the teams to strengthen our safety practices Pilbara Energy System Driver safety For personal use only Pilbara Energy System adopting the APA approach to driver safety Safety signage APA is looking to
Slide 6: APA is Australia's leading ASX-listed energy infrastructure operator and developer
APA is Australia’s leading ASX-listed energy infrastructure operator and developer ASX listed Power generation(3) For personal use only → $27bn portfolio of assets(1) → 342 MW Wind → Market cap of $11bn(2) → 311 MW Solar → EBITDA of $1.7bn in FY23 → 39 MW BESS → 884 MW gas fired generation Gas infra
Slide 7: Investment thesis: Attractive distributions and significant growth opportunities
Investment thesis: Attractive distributions and significant near and long-term growth opportunities For personal use only 01 02 03 04 05 Stable business FY24 EBITDA of Attractive distribution Strong pipeline $100bn+ addressable with over 90%(1) of ~$1.9bn(2) with high yield of 6.5%(3) of FY24-26 gro
Slide 8: Our strategy is unchanged: four market segments with competitive advantage
Our strategy is unchanged: we remain focused on the four market segments where we have a competitive advantage Priority areas APA's competitive advantages in priority markets For personal use only Remote grid – Contracted Renewables and Firming $27bn* Australia's leading independent, Australian list
Slide 9: Creating securityholder value through deployment of capital
Creating securityholder value through the deployment of capital in markets where we can generate attractive financial returns Indicative returns above our post tax WACC(1) Capital allocation foundations For personal use only 5%+ 01 Execute on value accretive growth opportunities with disciplined inv
Slide 10: Robust capital allocation framework
We deliver value through our robust capital allocation framework that drives disciplined prioritisation of initiatives For personal use only Productivity improvements Investment Organic growth Strategic acquisitions Free Cash Flow (FCF) Distribution target Return to 60-70% of FCF securityholders Oth
Slide 11: Focus of today
Focus of today 01 02 For personal use only Growth Regulatory opportunities considerations Timing of growth opportunities Regulatory review of South West Queensland Pipeline (SWQP) APA Macquarie Conference Presentation 2024 10
Slide 12: Growth opportunities
For personal use only Growth opportunities Port Hedland Power Station
Slide 13: We have four large levers for near-term growth
We have four large levers for near-term growth For personal use only Electricity Pilbara Transmission Beetaloo Other Decarbonising mining Connecting renewable Bringing critical new Remote grids, pipeline in the Pilbara with energy zones to supply to the Northern expansions and gas renewables, firmin
Slide 14: Sequencing of growth opportunities supporting funding of major construction projects
Sequencing of growth opportunities supporting the funding of major construction projects Illustrative timing: FY2025 FY2030+ For personal use only Cash flows Pilbara Construction Construction Cash flows Other (1) Construction Cash flows Electricity Cash Construction flows Transmission Cash Beetaloo
Slide 15: Regulatory considerations
For personal use only Regulatory considerations Badgingarra Wind farm South West Queensland Pipeline
Slide 16: The AER is reviewing the form of regulation for the South West Queensland Pipeline
The AER is reviewing the form of regulation for the South West Queensland Pipeline In FY23, the SWQP contributed 12% to The AER now has the power to initiate a process to For personal use only APA’s revenues(1) review the form of regulation applied to major pipelines Mar 2023: Changes to National Ga
Slide 17: Strong case for maintaining the status-quo for the SWQP
We believe we have a strong case for maintaining the status-quo, with published submissions supporting a no change position for the SWQP regulatory framework Returns on the SWQP Strong customer Existing arrangements For personal use only are not excessive relationships support investment • No exerci
Slide 18: Urgent investment in the East Coast Grid is required
The regulatory review occurs at time when urgent investment in the East Coast Grid is required to prevent capacity shortfalls Substantial shift in the recognised role of gas For personal use only When the legislation was being drafted the role of gas was uncertain. Today the role of gas and the need
Slide 19: LNG import terminals as alternative to domestic gas supply
If LNG import terminals are the alternative to domestic gas supply, we are likely to see increased energy costs and emissions, leaving Australian gas users exposed to global prices Relying on LNG imports to address winter supply If LNG imports set the price of gas all year, industrial For personal u
Slide 20: Dependency on LNG imports would put us back to 2021 prices
A dependency on LNG imports would put us back to 2021 when global LNG export prices were driving the price of domestic wholesale gas Comparison of east coast gas market, NEM and LNG netback prices(1) For personal use only AER State of the energy report 2023 “Following a noticeable increase from late
Slide 21: Q&A
For personal use only Directlink Q&A
Slide 22: Appendix
For personal use only Appendix Badgingarra Wind Farm
Slide 23: APA's operational footprint across energy infrastructure assets
APA’s operational footprint is across a range of energy infrastructure assets For personal use only APA Macquarie Conference Presentation 2024 22
Slide 24: Diversified business model
Diversified business model Characteristics of APA’s Energy 1% 1H24 Energy Infrastructure 3% 1H24 Energy Infrastructure Infrastructure (EI) revenue: 12% 1% by Revenue Type Revenue by Customer Industry For personal use only 5% Capacity charge revenue Segment 26% Regulated revenue Energy 7% ~87% Divers
Slide 25: Group structure
Group structure • APA Group is listed as a stapled structure on the Australian Securities Exchange GROUP STRUCTURE (ASX:APA) APA Infrastructure Trust APA Investment Trust • APA is comprised of two registered managed investment schemes: For personal use only (APA Infra) (APA Invest) – APA Infrastruct
Slide 26: 5-year normalised financials
5-year normalised financials Financial Performance 1H24 1H23 FY23 FY22 FY21 FY20 FY19 Total revenue $m 1,516 1,499 2,913 2,732 2,605 2,591 2,452 Total revenue excluding pass-through(1) $m 1,274 1,232 2,401 2,236 2,145 2,130 2,031 Underlying EBITDA(2) $m 930 879 1,725 1,692 1,629 1,650 1,570 Total re
Slide 27: Historical Underlying EBITDA by asset – Energy Infrastructure
Historical Underlying EBITDA by asset – Energy Infrastructure $ million 1H24 1H23 FY23 FY22 FY21(1) FY20(1) FY19 East Coast Grid Wallumbilla Gladstone Pipeline 321 297 620 578 550 539 542 South West Queensland Pipeline 145 132 262 245 233 254 250 Moomba Sydney Pipeline 75 73 126 136 152 161 149 For
Slide 28: For further information
For personal use only For further information Kynwynn Strong Michael Cox General Manager Investor Head of Media Relations & Relations & Capital Markets Financial Communications M: +61 410 481 383 M: +61 429 465 227 E: ir@apa.com.au E: michael.cox@apa.com.au www.apa.com.au