Apa Group · ASX:APA
Apa — FY2013 Earnings Presentation
30 slides from Apa's earnings presentation, Aug 21, 2013
Slide 1: Financial Results Year ended 30 June 2013
Financial Results Year ended 30 June 2013 21 August 2013
Slide 2: Result overview and strategic highlights
Result overview and strategic highlights Mick McCormack Managing Director and CEO APA FY13 Results Presentation 2
Slide 3: Consistent strategy, core business growth
Consistent strategy, core business growth Focus on long term, low-risk and sustainable growth of our core business – gas pipelines and distribution infrastructure Expanding our core business FY 2013 activities ... achieving appropriate commercial returns for – HDF acquisition our investment – Pipe
Slide 4: Result overview
Result overview $ million 2013 2012 Change Normalised results (1) EBITDA 667 535 up 25 % Profit 179 140 up 27 % Operating cash flow 433 336 up 29 % Operating cash flow per security (cents) 56.0 52.5 up 7% Statutory results EBITDA 769 526 up 46 % Profit 299 131 up 129 % Operating cash flow 374 336 up
Slide 5: Successful HDF acquisition
Successful HDF acquisition Value accretive acquisition – Quality assets with secure long-term revenue PILBARA PIPELINE contracts and growth potential SYSTEM – Acquisition model exceeded Surprised on the upside SOUTH WEST QUEENSLAND – Growth projects underway on the SWQP – MOOMBA PIPELINE ADELAID
Slide 6: Growth capital projects across the portfolio
Growth capital projects across the portfolio Continued and/or completed $1.5 billion(1) expansion projects across the country – appropriate commercial returns and secure, long-term revenue FY 2013 FY 2014 FY 2015 Roma Brisbane Completed 10% increase Pipeline in pipeline capacity Moomba Sydney Comp
Slide 7: Strategic development of pipeline grids
Strategic development of pipeline grids APA’s east coast grid: APA’s WA infrastructure: > 7,000 km of pipelines Servicing north west mining region Darwin 5 major pipelines East coast grid 5 states and territories Gas transport and storage for Perth – Physical interface of pipelines – operating as
Slide 8: Safety and sustainability reporting
Safety and sustainability reporting Health and safety LTIFR 7.3 – Long-term safety goal of Zero Harm - program 6.1 4.9 of continuous improvement – Decrease of LTIFR(1) to 2.1, down from 2.2 2.2 2.1 Natural gas and carbon reduction – Carbon tax – direct cost impact immaterial due 2009 2010 2011 2
Slide 9: Financial performance
Financial performance Peter Fredricson Chief Financial Officer APA FY13 Results Presentation 9
Slide 10: Solid and consistent result
Solid and consistent result $ million 2013 2012 Change Normalised Significant Statutory Statutory Normalised Statutory items Revenue excluding pass-through(1) 919.5 - 919.5 758.0 21.3% 21.3% EBITDA 667.1 101.7 768.8 525.8 24.6 % 46.2 % Depreciation and amortisation (130.5) - (130.5) (110.4) (18.2)%
Slide 11: EBITDA by business segment
EBITDA by business segment $ million 2013 2012 Change Energy Infrastructure Queensland (1) 163.7 79.6 105.8 % FY13 EBITDA by business segment New South Wales 112.7 113.1 (0.4) % (continuing business) Energy Victoria & South Australia 125.7 123.1 2.2 % Investments Asset 8% Western Australia (2) & Nor
Slide 12: EBITDA contributions
EBITDA contributions $94.6 million $646.5 million $36.6 million $551.9 million $535.5 million ($20.2 million) $515.3 million Energy Investments 7.1% Asset Management Energy Infrastructure FY12 EBITDA FY12 EBITDA Divested business Divested business FY12 FY12EBITDA EBITDA Growth Growth FY13FY13 EBITDA
Slide 13: Energy Infrastructure: Queensland
Energy Infrastructure Queensland Roma Brisbane Pipeline 10% increase in capacity Commissioned September 2012 South West Queensland Pipeline Moomba compression facility Integration completed EBITDA 9 months earnings contribution $180m $163.7 million $160m Moomba compression $140m South West
Slide 14: Energy Infrastructure: New South Wales
Energy Infrastructure New South Wales Moomba Sydney Pipeline Completed 5 year expansion program Spare capacity recontracted January 2013 Commenced gas transportation services between Victoria and Sydney Young compressor station and control centre Focused recontracting program EBITDA $120m $1
Slide 15: Energy Infrastructure: Victoria & South Australia
Energy Infrastructure Victoria & South Australia Victorian Transmission System Gas volume increase of 5% due to cooler weather and gas exports to NSW Commissioned Euroa compressor station, part of Northern Augmentation Project, and Sunbury lateral Longford meter station upgrade Completed upgra
Slide 16: Energy Infrastructure: Western Australia & Northern Territory
Energy Infrastructure Western Australia & Northern Territory Goldfields Gas Pipeline Construction progressing on compression and off-take facilities Mondarra Gas Storage Facility Expansion completed and operating Mondarra Gas Storage Facility commercially since July 2013 EBITDA Pilbara Pipeline
Slide 17: Asset Management and Energy Investments
Asset Management and Energy Investments Asset Management EBITDA $60m Increased operator fees from Envestra due to $45.4 million Envestra revenue increases $40m One-off Full year contribution of asset management customer contributions revenue – GDI (EII) $20m Contracted Customer contributions o
Slide 18: Distribution payout metrics
Distribution payout metrics $432.6 million ($58.3 million) Normalised Payments operating cash flow incurred by HDF $374.4 million $ million Statutory Management fees 3.1 operating cash flow $295.3 million Incentive fees 28.5 Distributions Bid defence costs 26.7 TOTAL 58.3 68.2% 68.2% ofof normalised
Slide 19: Fully covered distributions
Fully covered distributions Distributions in line with guidance for FY 2013 cents FY13 distribution payout 60 56.0 ratio(1) of 68.2% 51.9 52.6 52.5 50 48.2 42.7 40 34.4 35.0 35.5 30 32.8 29.5 31.0 20 10 0 FY08 FY09 FY10 FY11 FY12 FY13 (1) Distribution payout ratio: distribution payments (2) as a p
Slide 20: Capital expenditure
Capital expenditure $ million 2013 Major projects in FY13 2012 Growth capex Regulated (1) 22.6 Victoria Transmission System 43.5 Major Projects Queensland expansion 80.8 Roma Brisbane Pipeline ; Wallumbilla and Moomba compression 35.7 New South Wales expansion 24.1 Moomba Sydney Pipeline 18.9 Wester
Slide 21: Strong balance sheet
Strong balance sheet $ million 30 June 2013 30 June 2012 Change Current assets 280 585 (52)% Property, plant and equipment 5,280 3,472 52% Other non-current assets 2,138 1,439 49% Total Assets 7,699 5,496 40% Current debt 81 - - Other current liabilities 411 301 37% Total current liabilities 492 301
Slide 22: Capital management
Capital management Cash and committed undrawn facilities of $972 million at 30 June 2013 . Metrics 30 Jun 2013 30 Jun 2012 Gearing (1) 62.8 % 65.0 % Interest cover ratio 2.30 times 2.48 times Average interest rate applying to drawn debt(2) 7.35 % 7.39 % Interest rate exposure fixed or hedged 83.
Slide 23: Capital management
Capital management Maintain strong BBB/Baa2 investment grade ratings Maintain funding flexibility – internal cash flows plus additional equity and/or debt Debt maturity profile (30 June 2013) $1,000m $800m $600m $400m $515m $735m $525m $536m $200m $414m $271m $295m $289m $300m $296m $113m $126m
Slide 24: Outlook and guidance
Outlook and guidance Mick McCormack Managing Director and CEO APA FY13 Results Presentation 24
Slide 25: Growth across the portfolio
Growth across the portfolio Continued east coast grid development – Demand for trans-pipeline and other services – Moomba Sydney Pipeline recontracting Diamantina and – FEED for Vic to NSW infrastructure Leichhardt Power Stations Continued expansions projects Goldfields Gas Pipeline Wallumbilla
Slide 26: Envestra rationale and update
Envestra rationale and update Core business – gas distribution – Core competencies – operation and ownership of gas infrastructure – Operator since 2007 Largest shareholder and service provider – Align ownership with full operational control and – retain value created by industry skills within A
Slide 27: Outlook and guidance for FY 2014
Outlook and guidance for FY 2014 Outlook Continue development of expansion projects East coast gas grid development Guidance EBITDA – expected within a range of $715 million to $730 million – 11% to 13% increase on 2013 EBITDA(1) Net interest cost – expected within a range of $330 million to
Slide 28: Questions
Questions APA FY13 Results Presentation 28
Slide 29: Disclaimer
Disclaimer This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) the responsible entity of the Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) (APA Group). Summary information: This presentation contains summary information abou
Slide 30: Delivering Australia's energy
For further information contact Chris Kotsaris Delivering Australia’s energy 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