Apa Group · ASX:APA

Apa — Merger or Acquisition (September 2021)

16 slides from Apa's merger presentation, Sep 24, 2021

  1. Slide 1: Superior Proposal for AusNet Services

    Superior Proposal for AusNet Services Sales Desk Presentation 24 September 2021

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

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