Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — SP AusNet — FY2008/09 Earnings Presentation
34 slides from Singapore Exchange's earnings presentation, May 12, 2009
Slide 1: ASX & SGX-ST Release: 2008/09 Full-Year Results
ASX & SGX-ST Release 12 May 2009 TO: ASX Limited Singapore Exchange Securities Trading Limited SP AusNet 2008/09 Full-Year Results Release and Investor Presentation Please find attached SP AusNet’s 2008/09 Full-Year Results Release and Investor Presentation. Susan Taylor Company Secretary For furthe
Slide 2: Delivering Growth in Underlying Earnings
ASX & SGX-ST Release 12 May 2009 SP AusNet 2008/09 Full-Year Results Delivering Growth in Underlying Earnings 2008/09 Earnings (A$M, comparison to prior period) Actual Underlying 1 Variance to Prior Year 2 Total Revenues 1,169.4 1,169.4 up 10.8% EBITDA 709.6 709.6 up 9.5% EBIT 457.2 500.5 up 11.9% N
Slide 3: SP AusNet 2008/09 Full-Year Results
ASX & SGX-ST Release 12 May 2009 SP AusNet 2008/09 Full-Year Results SP AusNet (ASX Code: SPN) today lodged its full year results with the ASX & SGX-ST reporting a 9.5% increase in Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) and a 5.4% increase in underlying Net Profit After
Slide 4: Outlook
ASX & SGX-ST Release 12 May 2009 Outlook SP AusNet recognises that current economic conditions, in both Australia and the global economy, may result in changes to its operating environment over the longer term. In order to maintain its prudent capital structure, support its strong investment grade c
Slide 5: Operational Review
Operational Review Attachment SP AusNet 2008/09 Operational Review SP AusNet’s assets include Victoria’s high voltage electricity transmission network, an electricity distribution network located in eastern Victoria and a gas distribution network in western Victoria. As a diversified energy networks
Slide 6: Operational Review: Victorian bushfires
Operational Review Attachment In early February 2009, the state of Victoria was impacted by bushfires. The Victorian Government subsequently established a Royal Commission of Inquiry into the Victorian bushfire crisis and SP AusNet is extending its full support and assistance to the Inquiry. On 16 A
Slide 7: SP AusNet Full-Year Results 2008/09
SP AusNet Full-Year Results 2008/09 12 May 2009 1
Slide 8: Disclaimer
Disclaimer The SP AusNet Group (SP AusNet) comprises SP Australia Networks (Transmission) Ltd (SP AusNet Transmission), SP Australia Networks (Distribution) Ltd (SP AusNet Distribution) (together, the Companies) and their subsidiaries (as defined by the Corporations Act 2001 (Cth) (Corporations Act)
Slide 9: Overview of Results
Overview of Results Financial Performance Operational Review Outlook Notes: All references to ‘$’ are Australian dollars unless otherwise stated. 3
Slide 10: Overview of Results
Overview of Results Financial Performance Operational Review Outlook 4
Slide 11: Delivering growth in underlying earnings
Delivering growth in underlying earnings 2008/09 Full Year Highlights ($Am, comparison to prior year) Variance to Actual Underlying1 Prior Year2 Revenues 1,169.4 1,169.4 10.8% EBITDA 709.6 709.6 9.5% EBIT 457.2 500.5 11.9% NPAT from Continuing Operations 146.9 177.2 5.4% Final Distribution per stapl
Slide 12: Maintaining tax effective distributions
Maintaining tax effective distributions FY09 Distribution Components 14 11.854 12 10 30% Final 38% Aust. cents per unit 8 5.927 11.27 11.564 6 4 Interim 32% 5.927 2 FY09 Tax Deferred Return of Capital 29.5% 0 FY07 FY08 FY09 Interest Income 38.2% Fully Franked Dividend 32.3% Delivered on 2008/09 guid
Slide 13: Financial Performance
Overview of Results Financial Performance Operational Review Outlook 7
Slide 14: Strong underlying performance
Strong underlying performance Revenue Growth 720 Underlying EBITDA* Growth 1,200 700 1,150 680 1,100 710 A$’M A$’M 660 1,050 1,169 640 1,000 620 1,019 1,055 648 950 600 636 900 580 FY07 FY08 FY09 FY07 FY08 FY09 520 Underlying EBIT* Growth 180 Underlying NPAT* Growth 500 175 170 480 165 A$’M 460 500
Slide 15: Growth in underlying NPAT
Growth in underlying NPAT* Full Year to 31 March 2009 (A$M) 300 270 61 240 114 210 50 180 6 A$M 150 120 90 177 168 60 30 0 NPAT FY08 Revenue Operating Costs Net Finance Income Tax NPAT FY09 & Depreciation Costs * FY09 adjusted for non-cash impairment of meters to be replaced under Advanced Metering
Slide 16: Distributions from operating cash flow
Distributions from operating cash flow Full year to 31 March 2009 (A$M) 700 600 500 311.0 A$M 400 662.7 300 328.5 245.1 461.7 200 26.6 100 133.2 - Cash from Net interest Distribution DRP Cash flow pre Net Cash Capex Operations payments capex borrowings * Total net capex on cash basis. Net borrowings
Slide 17: Growth in capital expenditure
Growth in capital expenditure Full year to 31 March 2009 (A$M) 500 471.5 450 94.4 400 Maintenance 350 22.0 45.7 44% 300 47.0 A$M 250 200 178.1 150 Growth 56% 100 50 84.3 0 Dist Electricity Dist Gas Transmission Total Customer Company * Total capex on an accruals basis. Demand for energy infrastructu
Slide 18: Management fees
Management fees Full year to 31 Mar (A$M) 2009 2008 Variance Management Services Charge1 39.7 22.6 17.1 Performance Fees 12.3 18.3 (6.0) Total Management Fees 52.0 40.9 11.1 1. Management Service Charge for FY08/09 onwards will be calculated as direct reimbursement of actual cost of remuneration (in
Slide 19: Diversified debt portfolio by maturity and source
Diversified debt portfolio by maturity and source Debt maturity profile as at 8 May 2009 1,200 Net Debt as at 8 May 09: $4,212M - US$ and GBP debt shown as hedged rates 1,000 185 800 A$'M 600 935 400 775 485 537 200 435 407 400 53 0 CP 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
Slide 20: Sound fundamentals
Sound fundamentals Market Metrics 31 Mar 09 ASX SGX RAB Mar 09 $5.3bn Security Price A$0.91 S$0.98 $ Bn Market Capitalisation A$1.9bn S$2.1bn 6.0 RAB CAGR 5.3%* 5.0 Financial Metrics 31 Mar 09 31 Mar 08 Total Assets A$7.8bn A$7.4bn 4.0 Total Borrowings A$4.5bn A$3.7bn 3.0 Gearing (MTM1) 67% 58% 2.0
Slide 21: Operational Review
Overview of Results Financial Performance Operational Review Outlook 15
Slide 22: Networks summary
Networks summary • Over 90% of revenues regulated, providing predictable cashflows Total FY09 Revenue A$1,169.4m Diversified regulatory reset periods 5% 2% 2% 2008 2009 2010 2011 2012 2013 2014 15% 39% Electricity Transmission Electricity Distribution 91% regulated Gas Distribution Regulated revenue
Slide 23: Electricity transmission network
Electricity transmission network Operational Review Full Year Financial Highlights (A$M) 31-Mar-09 31-Mar-08 Variance % • Revenue uplift from commencement Revenue (A$M) 492.2 434.4 13.3% of new regulatory period EBITDA (A$M) 325.8 254.9 27.8% • Waubra windfarm connection EBITDA Margin 66.2% 58.7% -
Slide 24: Electricity distribution network
Electricity distribution network Operational Review Full Year Financial Highlights (A$M) 31-Mar-09 31-Mar-08 Variance % • Reliability improvement projects ahead Revenue (A$M) 509.2 463.5 9.9% of schedule EBITDA (A$M) 256.0 242.8 5.4% • Strong housing development & demand EBITDA Margin 50.3% 52.4% -
Slide 25: Electricity distribution network - Victorian Bushfires February 2009
Electricity distribution network - Victorian Bushfires February 2009 • Damage was sustained to less than 1% of SP AusNet’s electricity distribution Damage network during the Victorian bushfires of Feb 2009 assessment • No material impact on SPN’s FY 2008/09 results • Victorian government announced a
Slide 26: Gas distribution network
Gas distribution network Operational Review Full Year Financial Highlights (A$M) 31-Mar-09 31-Mar-08 Variance % • Increased volumes due to cooler Revenue (A$M) 179.2 167.7 6.9% weather conditions EBITDA (A$M) 127.8 125.6 1.8% • Growth in customer connections EBITDA Margin 71.3% 74.9% - Volume (PJ) 7
Slide 27: AER WACC Final Decision
AER WACC Final Decision • AER has been undertaking a review of the weighted average cost of capital (WACC) parameters to apply for regulatory proposals submitted between 1 May 2009 and 1 May 2014 Process • Proposed position released on 11 Dec 2008 • Final Decision released on 1 May 2009 • Provides r
Slide 28: Outlook
Overview of Results Financial Performance Operational Review Outlook 22
Slide 29: 2009/10 Outlook
2009/10 Outlook ¾ SP AusNet has today announced an accelerated non-renouncable pro-rata entitlement offer to raise up to A$415m* ¾ The offer will maintain SP AusNet’s prudent capital structure, support its existing A-range credit rating and enable continued access to capital markets to fund growth a
Slide 30: Questions
Overview of Results Financial Performance Operational Review Outlook Questions 24
Slide 31: Further Information and Contacts
Further Information and Contacts SP AusNet is a major energy network business, which owns and operates key regulated electricity transmission and electricity and gas distribution assets located in Victoria, Australia. Further information is on SP AusNet’s website: www.sp-ausnet.com.au For further in
Slide 32: Appendices
Overview of Results Financial Performance Operational Review Outlook Appendices 26
Slide 33: Segment Note - Detail
Segment Note - Detail Electricity distribution Gas distribution Transmission 2009 2008 2007 2009 2008 2007 2009 2008 2007 Regulated Revenue 437.8 417.4 384.9 171.4 147.5 146.4 456.1 391.6 380.8 Excluded Services 14.9 14.4 13.7 3.0 11.8 14.0 11.1 33.7 30.5 Customer Contributions 21.5 18.0 25.6 3.0 7.
Slide 34: AER WACC Final Decision
AER WACC Final Decision Comparison of Final Decision WACC parameters to previously proposed position and existing parameters on SP AusNet networks: AER WACC Parameters Existing Parameters on SP AusNet Networks Electricity Electricity Gas Previously Transmission Distribution Distribution Proposed Fin