Slide 1: ASX Release: 2011 Full Year Results presentation
For personal use only ASX RELEASE 24 August 2011 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: • 2011 Full
Slide 2: Financial Results Year ended 30 June 2011
For personal use only Financial Results Year ended 30 June 2011 24 August 2011
Slide 3: Result overview and strategic highlights
For personal use only Result overview and strategic highlights Mick McCormack Managing Director and CEO 2011 Result Presentation 2
Slide 4: Another solid result
Another solid result For personal use only 2011 2010 Change $ million $ million Operating cash flow 290 268 up 8% Revenue excluding pass‐through (1) 720 660 up 9% EBITDA (2) 492 460 up 7% Profit (3) 109 100 up 8% Operating cash flow per security (cents) 52.6 51.9 up 1% Distribution per security (cen
Slide 5: Delivering growth, security and value
Delivering growth, security and value For personal use only Enhancing our position in a growing market – Expanding our energy infrastructure portfolio across Australia in line with increasing demand for gas and energy Secure operations and earnings – Revenue underpinned by long term contracts or
Slide 6: Strategic and operational highlights: expanding energy infrastructure
Strategic and operational highlights For personal use only Expanding APA’s energy infrastructure and investments Amadeus Gas Pipeline Acquired (buy‐out of the Facilitating the development residual balance of the lease) of gas‐fired power generation in Mt Isa Roma Brisbane Pipeline Completed lateral
Slide 7: Secure revenue and operations, strong balance sheet
Strategic and operational highlights For personal use only Secure revenue and operations, strong balance sheet Long term revenue agreements with highly credit‐worthy parties for expansion and acquisitions – Four new contracts with average term of around 20 years Successful debt refinancing and e
Slide 8: Creating value by maintaining or increasing earnings
Strategic and operational highlights For personal use only Creating value by maintaining or increasing earnings Developing total energy solutions for customers – Using scale and industry expertise to provide customised services across assets – Proposed gas fired power station for Mt Isa would prov
Slide 9: Sustainability reporting
Sustainability reporting For personal use only Health and safety – Long‐term safety goal of Zero Harm ‐ program of continuous improvement – Increase of LTIFR (1) to 6.2 13 lost time injuries, 11 of which were back and knee related Program in place to minimise the risk of these types of injurie
Slide 10: Financial performance
For personal use only Financial performance Peter Fredricson Chief Financial Officer 2011 Result Presentation 9
Slide 11: Solid, consistent result
Solid, consistent result For personal use only 2011 2010 Change $ million $ million Total revenue excluding pass‐through (1) 720.3 659.5 9.2 % Total revenue 1,102.0 989.5 11.4 % EBITDA (2) 492.1 460.0 7.0 % EBIT 391.8 368.5 6.3 % Net interest expense (247.1) (229.4) (7.7%) Tax (35.9) (38.7) 7.3 % Ne
Slide 12: EBITDA by business segment
EBITDA by business segment For personal use only 2011 2010 EBITDA split by segment $ million $ million Change Energy Infrastructure Energy Investments Queensland 106.8 103.3 3.4 % Asset 5.5% New South Wales 101.3 96.8 4.6 % Management 7.9% Victoria & South Australia 115.9 105.7 9.6 % Qld Western Aus
Slide 13: Energy Infrastructure: Queensland
Energy Infrastructure For personal use only Queensland Roma Brisbane Pipeline – Completion of lateral to large industrial customer – Commenced major expansion project, underpinned by revenue agreements – Flood damage and repairs Repairing the Roma Brisbane Pipeline post floods Berwyndale Wallumb
Slide 14: Energy Infrastructure: New South Wales
Energy Infrastructure For personal use only New South Wales Moomba Sydney Pipeline expansion – 3rd year in 5‐year expansion program (FY11 capex $8 million, with total spend to date of $59 million) – Compressor reconfiguration ($6 million) – Fully contracted – gas transportation and Young Wagga loo
Slide 15: Energy Infrastructure: Victoria & South Australia
Energy Infrastructure For personal use only Victoria & South Australia Increased gas flow due to a cooler winter – 8% increase in gas flows to 246 PJ Northern augmentation program completed – Wollert compressor station upgrade, Springhurst and flow reversal Wollert compressor station, northern V
Slide 16: Energy Infrastructure: Western Australia & Northern Territory
Energy Infrastructure For personal use only Western Australia & Northern Territory Goldfields Gas Pipeline – 10% reduction in access arrangement reference tariffs (from August 2010), affecting ~40% of APA’s GGP revenue – Merits review process underway Mondarra Gas Storage Facility Darwin city ga
Slide 17: Asset Management and Energy Investments
Asset Management and Energy Investments For personal use only 38.7 Asset Management EBITDA $ million 40 Increased revenue from Envestra asset 20 management and additional third party work ‐ Added asset management of Wagga Wagga gas 2008 2009 2010 2011 network acquired by Envestra Energy Investme
Slide 18: Major capital expenditure
Major capital expenditure (1) For personal use only 2011 2010 Description of 2011 major projects $ million $ million Growth capital expenditure Regulated Victoria Transmission System 33.4 Northern augmentation project 32.3 APA Gas Networks (Qld) 16.1 Includes southern network expansion 21.2 Major Pr
Slide 19: Funding FY11 growth capital expenditure
Funding FY11 growth capital expenditure For personal use only 2011 $ million Growth capital expenditure 498 Funds Operating cash flow 290 Less distributions, SIB capex, debt and security issue costs, and cash retained (227) Cash 63 63 12% Distribution Reinvestment Plan 52 Institutional placement (1)
Slide 20: Fully covered distributions
Fully covered distributions For personal use only 2011 distribution in line with guidance 60 51.9 52.6 2011 distributions 48.2 50 payout ratio(1) of 42.7 65.7% (2010: 64.4%) 39.7 cents per security 40 30 34.4 31.0 32.75 28.0 29.5 20 10 0 2007 2008 2009 2010 2011 (1) Distribution payout ratio: total
Slide 21: Prudent capital management
Prudent capital management For personal use only Cash and committed undrawn facilities of $320 million at 30 June 2011 – Reduced debt headroom by cancelling $412 million undrawn syndicated bank facilities . 2011 metrics 2011 2010 Gearing (1) at 30 June 66.2 % 69.8 % Interest cover ratio at 30 Ju
Slide 22: Capital management strategy
Capital management strategy For personal use only Managing balance sheet to maintain minimum investment grade credit rating metrics – Standard & Poor’s BBB; Moody’s Baa2 Refinancing program focused on extending debt maturity, diversifying funding sources and reducing borrowing costs – Next refin
Slide 23: Outlook and guidance
For personal use only Outlook and guidance Mick McCormack Managing Director and CEO 2011 Result Presentation 22
Slide 24: Maintain strategy for profitable growth
Maintain strategy for profitable growth Continue to maximise value for securityholders For personal use only Enhancing APA’s portfolio of gas infrastructure assets in Australia’s growing energy market Capturing revenue and operational synergies Facilitating the development of gas related proje
Slide 25: Opportunities in the energy landscape
Opportunities in the energy landscape For personal use only Growth catalysts Carbon Carbon reducing measures increase price competitiveness of natural reduction gas policy – Natural gas produces 30 to 50 per cent of the carbon emissions produced by current coal technologies in generating electrici
Slide 26: Developing profitable growth opportunities
Developing profitable growth opportunities For personal use only Growth capital expenditure Developing opportunities that enhance the value of APA’s energy infrastructure portfolio Emu Downs Further expansion of APA’s wind farm pipelines to meet growing demand acquisition for gas transportation and
Slide 27: A cost effective energy solution for Mt Isa
A cost effective energy solution for Mt Isa For personal use only APA and AGL are jointly proposing a cost effective and sustainable electricity solution for energy users in Mt Isa and surrounding regions Energy efficient – 240 MW combined cycle plant, with high energy efficiency of 55% (compared
Slide 28: Maximising value for securityholders
Maximising value for securityholders Operating cash flow For personal use only Four years of organic growth 300 268 290 – Operating cash flow CAGR of 17.8%(1) 250 234 192 – EBITDA CAGR of 13.5% (1) 200 $ million – Total securityholder return of 46% 150 100 Total securityholder return 50 (4 financi
Slide 29: Capital management and distribution policy
Capital management and distribution policy For personal use only Capital management policy Continue to target strong BBB/Baa2 investment grade ratings through maintaining sufficient flexibility to fund organic growth and investment from internally generated and retained cash flows and, where appro
Slide 30: Guidance
Guidance For personal use only EBITDA – expected within a range of $530 million to $540 million Net interest cost – expected within a range of $260 million to $265 million Distribution – at least equal to FY2011 total distributions per security APA ‐ developing attractive growth projects and e
Slide 31: Supplementary information
For personal use only Supplementary information 2011 Result Presentation 30
Slide 32: APA profile
APA profile For personal use only APA is Australia’s largest natural gas infrastructure business – Energy Infrastructure: gas pipelines, interconnected gas storage facilities across Australia, gas distribution networks in Queensland and New South Wales, and Emu Downs wind farm in Western Australia
Slide 33: Financials: Key financial ratios
Financials For personal use only Key financial ratios 2011 2010 Operating cash flow per security (cents) 52.6 51.9 Weighted average securities on issue (million) 551.2 516.2 Payout ratio 65.7 % 64.4 % Earning per security (cents) 19.7 19.4 Interest cover ratio (times) 2.03 2.11 Gearing ratio 66.2 %
Slide 34: Financials: Cash flow
Financials For personal use only Cash flow 2011 2010 $ million $ million Change Operating cash flow 290.0 267.8 14.6 % Distributions (net of DRP) 130.9 103.1 Available operating cash flow 159.2 164.7 18.9 % Operating cash flow per security (cents) 52.6 51.9 7.7 % Distributions per security (cents) 3
Slide 35: Revenue analysis by business segment
Financials For personal use only Revenue analysis by business segment 2011 2010 $ million $ million Change Energy Infrastructure Queensland 164.3 151.2 8.7 % New South Wales 126.7 120.8 4.9 % Victoria & South Australia 153.3 138.9 10.4 % Western Australia & Northern Territory 157.5 155.4 1.4 % Energ
Slide 36: Total committed debt facilities at June 2011
Financials For personal use only Total committed debt facilities at 30 June 2011 Facility Facility amount (1) Tenor 2009 Bilateral borrowing (2) $150 million August 2014 2011 Bilateral borrowings (3) $225 million July 2014 2007 Syndicated facility (2) $900 million June 2012 2009 Syndicated facility
Slide 37: Regulatory update
Regulatory update For personal use only APA’s major price regulated assets Regulatory resets over the next five years Regulatory resets are spread out over five years, with on average one reset per year – Goldfields Gas Pipeline new access arrangement commenced on 20 August 2010 – APA Gas Network
Slide 38: APA asset and investment portfolio
APA asset and investment portfolio For personal use only 2011 Results Presentation 37
Slide 39: Disclaimer
Disclaimer For personal use only 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 sum
Slide 40: For further information contact
For personal use only For further information contact Delivering Australia’s energy Chris Kotsaris 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