Apa Group · ASX:APA
Apa — Shareholder Meeting (October 2009)
41 slides from Apa's shareholder meeting presentation, Oct 30, 2009
Slide 1: ASX Release: Annual Meeting announcement cover letter
For personal use only ASX RELEASE 30 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: • Chairman’
Slide 2: Chairman's Address
APA Group Annual Meeting 30 October 2009 APA Group 2009 Annual Meeting Chairman’s Address Ladies and gentlemen, For personal use only Despite the unprecedented environment and challenges of global financial markets, APA Group had a strong financial performance and steady, largely organic growth in t
Slide 3: Chairman's Address: capital management and security price
APA Group Annual Meeting 30 October 2009 from this crisis, we felt it was prudent to begin our refinancing program for the $1 billion of debt due in 2010 well ahead of time. In a tight credit environment, we received strong support from banks and global debt markets. Subsequent to the year under rev
Slide 4: Chairman's Address: strategic achievements and growth
APA Group Annual Meeting 30 October 2009 We completed the establishment of the an unlisted investment vehicle, Energy Infrastructure Investments, in December 2008, selling a number of APA’s annuity-style assets into the vehicle and attracting international industry experts, Marubeni Corporation and
Slide 5: Board and management remuneration
APA Group Annual Meeting 30 October 2009 Board and management remuneration Moving to another matter now – I have received a number of questions concerning the remuneration of APA’s Board and management. APA has both a strong Board and management team that have been key components of producing consec
Slide 6: Chairman's closing remarks
APA Group Annual Meeting 30 October 2009 commitment and dedication to the improvements within all areas of the company that have contributed to our continued success. Finally, I thank you, our valued and loyal securityholders, for your ongoing support of APA. For personal use only Page 5 of 5
Slide 7: Managing Director's Address
APA Group Annual Meeting 30 October 2009 APA Group 2009 Annual Meeting Managing Director’s Address Thank you Chairman and good morning ladies and gentlemen. For personal use only There are few industries presenting such a safe haven for investors as Australia’s natural gas infrastructure sector. Thi
Slide 8: Business performance
APA Group Annual Meeting 30 October 2009 Business performance Our chairman spoke earlier of our record underlying financial result this year. I would now like to talk briefly about the performance of each business segment and the key drivers of these results. For personal use only I’ll also outline
Slide 9: Queensland and New South Wales operations
APA Group Annual Meeting 30 October 2009 The downturn in the resources sector did not impact the pipeline. The Roma Brisbane Pipeline is the only pipeline delivering gas into Brisbane, and is physically interconnected with APA’s Gas Network that services south east Queensland, including southern Bri
Slide 10: New South Wales, Victoria and South Australia
APA Group Annual Meeting 30 October 2009 The additional capacity is required to meet winter peak demand, as well as gas storage within the pipeline. With the expected increase in gas-fired power generation we expect to see an increase in demand for pipeline capacity. For personal use only Recently w
Slide 11: Western Australia and Northern Territory
APA Group Annual Meeting 30 October 2009 There are some key areas of the draft where we disagree with the regulator. And as we have done many times before with our regulated assets, we will work closely with the regulator to seek to achieve a positive outcome. Our Parmelia pipeline and Mondarra gas
Slide 12: Growth drivers
APA Group Annual Meeting 30 October 2009 retailers, and to better understand and respond to the changing energy environment. Growth drivers As I outlined previously, we are progressing more than $200 million of growth For personal use only projects in the 2010 financial year. These projects will del
Slide 13: Building Australia's gas infrastructure
APA Group Annual Meeting 30 October 2009 Building Australia’s gas infrastructure We continue to work closely with our customers to develop the infrastructure and services they require to meet their business needs. For personal use only We will expand or augment our pipeline system, and in some cases
Slide 14: Safety and conclusion
APA Group Annual Meeting 30 October 2009 We have improved our safety performance during the year, and with particular focus on early recognition and reporting of potential safety risks, we will continue to focus on improving safety across the business. Conclusion For personal use only APA is in a st
Slide 15: Chairman's address
For personal use only Chairman’s address APA Group Annual Meeting 30 October 2009 APA Group Annual Meeting 2009 Æ 1
Slide 16: APA's consistent performance
APA’s consistent performance For personal use only Underlying Operatingoperating cash flow cash flow Underlying EBITDAEBITDA 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 Operatin
Slide 17: Record financial results
Record financial results For personal use only Strong growth in all key financial measures FY 2009 Revenue $959 million 7% EBITDA $459 million 7% Net profit $110 million 34% Operating cash flow $234 million 22% Operating cash flow per security 48.2 cents 13% Distribution per security 31.0 cents 5.1%
Slide 18: APA distribution growth
APA distribution growth For personal use only Growing distributions by at least 5% 2009 full year distribution of 31.0 cents per security – an increase of 5.1% Distributions are well covered by operating cash flow Surplus cash contributes to funding further business growth APA Group Annual Mee
Slide 19: Prudent capital management
Prudent capital management For personal use only Strengthened balance sheet Capital raising from APA securityholders – Continued operation of the Distribution Reinvestment Plan (DRP) and Security Purchase Plan (SPP) – $79 million capital raised in 2009 through the DRP and SPP Strong support for
Slide 20: Security price performance
Security price performance For personal use only Total returns 13 June 2000 (listing) to 30 September 2009 400 223% total return since listing 13% annualised APA security price 300 $2.75 (1 Jul 08) 200 $3.17 (30 Sep 09) 100 0 Jun‐00 Jun‐01 Jun‐02 Jun‐03 Jun‐04 Jun‐05 Jun‐06 Jun‐07 Jun‐08 Jun‐09
Slide 21: Strategic achievements
Strategic achievements For personal use only Establishment of Energy Infrastructure Investments (EII) – Sale of assets, with transaction funds of $647 million used to pay down debt – APA retains 19.9% interest in EII, and continues to operate the assets under a long X41 Power station, Mt Isa, sold
Slide 22: Structure and governance
Structure and governance For personal use only Security sale facility for holdings less than $1,000 – Reduction in number of securityholders by almost 27,000 or 26% – Reduction in administration costs Constitutional changes – Update Australian Pipeline Trust and APT Investment Trust constitution
Slide 23: Outlook
Outlook For personal use only Focus on ensuring APA delivers secure and growing operating cash flow Continue enhancing APA’s portfolio of gas infrastructure assets First quarter 2010, business is performing in line with expectations Distribution guidance Increase in FY 2010 distributions of
Slide 24: Managing Director's address
For personal use only Managing Director’s address APA Group Annual Meeting 30 October 2009 APA Group Annual Meeting 2009 Æ 10
Slide 25: Australia's largest gas infrastructure business
Australia’s largest gas infrastructure business For personal use only Australia has an abundance of natural gas reserves … with increasing demand for natural gas APA delivers gas from all major gas production sources to all major gas markets … transporting more than 50% of natural gas used in Au
Slide 26: Business segment performance
Business segment performance For personal use only EBITDA growth across all business segments FY 2009 change Gas transmission and distribution (1) $384 million 14% Asset management $30 million 7% Energy Investments $22 million 21% Assets sold to EII (2) $23 million 53% Total underlying EBITDA $459 m
Slide 27: APA's gas infrastructure portfolio: Queensland
APA’s gas infrastructure portfolio For personal use only Queensland Carpentaria Gas Pipeline ‐ New Transportation agreements ‐ New compressor station at Davenport Downs ‐ 15% increase in pipeline capacity Roma Brisbane Pipeline ‐ Working with customers to expand the pipeline in line with Mt Isa thei
Slide 28: APA's gas infrastructure portfolio: New South Wales
APA’s gas infrastructure portfolio For personal use only New South Wales Moomba Sydney Pipeline ‐ incremental expansion of the Moomba main pipeline over next 4 years in‐line with contracts Central Ranges Pipeline ‐ acquired for $23.5 million ‐ close to Gunnedah Basin coal seam gas production Tamwort
Slide 29: APA's gas infrastructure portfolio: Victoria and South Australia
APA’s gas infrastructure portfolio For personal use only Victoria and South Australia Brooklyn city gate APA Group Annual Meeting 2009 Æ 15
Slide 30: APA's gas infrastructure portfolio: Western Australia
APA’s gas infrastructure portfolio For personal use only Western Australia Goldfields Gas Pipeline ‐ New transportation agreements ‐ 2 new compressor stations: Ned’s Creek and Wyloo West ‐ 20 % expansion of pipeline capacity Paraburdoo Newman Mondarra Gas Storage Facility ‐ Working with customers to
Slide 31: APA's gas infrastructure portfolio: Northern Territory
APA’s gas infrastructure portfolio For personal use only Northern Territory Wickham Point Pipeline ‐ 13 km pipeline completed 2009 ‐ Long term transportation DARWIN arrangement ‐ Sold into EII Ban Ban Springs Wadeye Bonaparte Gas Pipeline Daly Waters ‐ 287 km pipeline completed 2008 ‐ Long term tran
Slide 32: APA's energy investments
APA’s energy investments For personal use only Envestra Ltd Energy Infrastructure Investments SEA Gas Pipeline North Brown Hill Moomba Sydney wind farm Ethane Pipeline APA manages and/or operates its energy investments APA Group Annual Meeting 2009 Æ 18
Slide 33: Growth driven by natural gas use
Growth driven by natural gas use For personal use only Growing demand for natural gas ‐ 4% per annum Increased use of gas fired generation Natural gas and Australian primary energy consumption Growth rates 7.0% 6.0% Natural gas Total 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 3 5 7 9 1 3 5 7 9 7 9 1 -1 -1 -1
Slide 34: Building Australia's natural gas infrastructure
Building Australia’s natural gas infrastructure For personal use only Construction of new pipelines to supply gas from new source Incrementally increasing the Incrementally increasing the capacity of the pipeline to capacity of the pipeline to meet meet growing gas demand growing gas demand Construc
Slide 35: People, environment and safety
People, environment and safety For personal use only APA business model unique among peers – Fully operating business, with 1,100 operating, commercial and support personnel – APA personnel operating from 57 locations across the country – Extensive in‐house skills and experience – engineering, tec
Slide 36: Delivering security and growth
Delivering security and growth For personal use only Committed expansion projects are underpinned by secure agreements Focused on capturing further profitable growth opportunities provided by APA’s gas infrastructure portfolio Maintaining a strong balance sheet APA Group Annual Meeting 2009 Æ
Slide 37: Delivering Australia's energy
For personal use only Delivering Australia’s energy For more information on APA Group visit our website www.apa.com.au APA Group Annual Meeting 2009 Æ 23
Slide 38: Securityholders Questions and Answers
APA Group Annual Meeting 30 October 2009 APA Group 2009 Annual Meeting Securityholders Questions and Answers For personal use only In my address, and in the Managing Director’s address, we have already covered a number of questions we received in writing from securityholders. I’d now like to respond
Slide 39: Questions and answers: meeting location and participation
APA Group Annual Meeting 30 October 2009 investors holding more than half of the issued securities in APA are domiciled here in New South Wales. However, to reach as many of our investors as is reasonably possible we do a number of things: For personal use only • firstly, we invite all securityholde
Slide 40: Questions for the auditor and compliments
APA Group Annual Meeting 30 October 2009 to $5,000 in the past. With the approved changes to the constitutions, the Board will be able to offer this facility at various participation levels, up to a maximum of $15,000. Questions for the auditor For personal use only On the form sent with the notice
Slide 41: Contact and About APA Group
For personal use only ASX RELEASE 30 October 2009 For further information please contact: Investor enquiries: Media enquiries: Chris Kotsaris Matthew Horan Investor Relations APA Group Cato Counsel Telephone: (02) 9693 0049 Telephone: (02) 9212 4666 Mob: 0402 060 508 Mob: 0403 934 958 Email: chris.k