Apa Group · ASX:APA
Apa — Merger or Acquisition (September 2021)
16 slides from Apa's merger presentation, Sep 24, 2021
Slide 1: Superior Proposal for AusNet Services
Superior Proposal for AusNet Services Sales Desk Presentation 24 September 2021
Slide 2: Disclaimer
disclaimer This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) as responsible entity of the Australian Investors should form their own views as to these matters and any assumptions on which any forward-looking statements are Pipeline Trust (ARSN 091 678 778) and APT
Slide 3: APA is a leading Australian owned energy infrastructure business
APA is a leading Australian owned energy infrastructure business Compelling 6.0% FY22 distribution yield1 APA has deep experience in owning and operating energy infrastructure 53.0c 50.0c 51.0c • Servicing 1.4m network customers and ~100 47.0c 43.5c 45.0c wholesale customers • Experienced senior man
Slide 4: Summary of APA's Superior Proposal
Summary of APA’s Superior Proposal Superior • Proposal to acquire 100% of AusNet Services (“AusNet”) shares for $2.60 per share(1) via scheme of arrangement (the “Proposal”) Proposal • Under the Scheme, all AusNet shareholders would receive $1.820 cash and 0.0878 APA securities for each AusNet share
Slide 5: Creating Australia's flagship energy infrastructure business through the proposed acquisition of AusNet
Creating Australia’s flagship energy infrastructure business through the proposed acquisition of AusNet Uniquely positioned to deliver infrastructure solutions critical to the nation’s energy transition Electricity infrastructure Gas infrastructure ~$35bn ~$29bn Transmission(4) enterprise value(1) t
Slide 6: AusNet is a highly attractive business
AusNet is a highly attractive business One of the largest electricity network operators Predictable earnings and Exposure to growing in Australia cash flows energy markets 94% of FY21 EBITDA generated Deep skill and experience in • $11.2 billion Regulated & Contracted Asset Base from regulated busin
Slide 7: AusNet's predictable earnings and cash flows
AusNet’s predictable earnings and cash flows Historical financials(1) History of consistent RCAB(4) growth +4.7% $m FY16 FY17 FY18 FY19 FY20 FY21 • RAB: $0.7bn growth $10.8b $11.2b Revenue2 1,919 1,882 1,910 1,862 1,978 1,925 expected by FY26 $10.3b $9.8b $8.9b $9.4b % Growth (2)% 1% (3)% 6% (3)% $3
Slide 8: Increasing exposure to electrification
Increasing exposure to electrification APA standalone Pro-forma merged business(1) Power Generation, contracted electricity and others 20% 11% Electricity distribution Underlying Underlying EBITDA EBITDA Electricity transmission 13% $1.6bn $2.8bn 58% Gas Gas Power Generation, 89% contracted electric
Slide 9: Fast tracks the potential to unlock long term growth opportunities in the Australian energy transition
Fast tracks the potential to unlock long term growth opportunities in the Australian energy transition Organic growth pipeline Market opportunities Unlocking growth with a combined business Gas $1.3 billion organic $8 billion market • Accelerates APA to be Australia’s flagship energy transmission an
Slide 10: Case study: significant grid investment required to support Renewable Energy Zones (REZs)
Case study: significant grid investment required to support Renewable Energy Zones (REZs) NSW and Victorian Renewable Energy Zones • State Governments developing REZs to combine infrastructure and attract private investment • State Governments seeking to increase project contestability via procureme
Slide 11: APA has deep experience in owning and operating energy infrastructure
APA has deep experience in owning and operating energy infrastructure Infrastructure Stakeholder Climate Social Performance development management Announced ambition for net zero Positive active engagement with Commercial development Regulatory management operations emission by 2050 First Nations’ c
Slide 12: Unique opportunity to create value for APA and AusNet investors
Unique opportunity to create value for APA and AusNet investors Standalone AST valuation Immediate value for Revenue growth and Accelerates growth investors synergies • Creates the scale, balance Remove AST’s growth constraints • Proposal is expected to be • Capturing growth sheet and capability to
Slide 13: APA's Superior Proposal delivers optimal mix of value and certainty for AusNet shareholders
APA’s Superior Proposal delivers optimal mix of value and certainty for AusNet shareholders Full and fair value Attractive premium to current trading levels • Substantial premium to recent trading levels and compelling value for AusNet shareholders • AusNet shareholders electing cash consideration c
Slide 14: Proposal consistent with comparable energy infrastructure transactions
Proposal consistent with comparable energy infrastructure transactions Regulated electricity asset EV / RCAB transaction comparables Mean: 1.55x 1.66x 1.60x 1.62x 1.57x 1.53x 1.46x 1.41x APA’s offer (2021) Brookfield’s SKI offer (2021) TransGrid (2020) Endeavour Ausgrid (2016) TransGrid (2015) offer
Slide 15: APA's Superior Proposal comparison to the Brookfield Proposal
APA’s Superior Proposal comparison to the Brookfield Proposal APA’s Superior Proposal Brookfield’s Proposal 1 Value $2.60 per share(1) $2.50 per share 2 FIRB conditionality Not subject to FIRB approval FIRB approval required 3 Timing 4 weeks confirmatory due diligence 8 weeks minimum exclusivity per
Slide 16: Creating Australia's flagship energy infrastructure business
Creating Australia’s flagship energy infrastructure business APA is a leading Australian owned energy infrastructure business with a diverse portfolio of high-quality long-life assets A leading Australian owned energy Experienced local management team with the skills and capability to support Austra