Apa Group · ASX:APA
Apa — UBS Emerging Australian Companies Conference 2009
22 slides from Apa's conference presentation, Apr 1, 2009
Slide 1: ASX Release: UBS Emerging Australian Companies Conference presentation
For personal use only ASX RELEASE 1 April 2009 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: • APA Group UB
Slide 2: APA Group – UBS Emerging Australian Companies Conference
For personal use only APA Group UBS Emerging Australian Companies Conference Mick McCormack, Managing Director Sydney, 1 April 2009
Slide 3: APA is Australia's leading gas pipeline business
APA is Australia’s leading gas pipeline business For personal use only Objective Maximise value for securityholders in the short, medium and long term … by growing distributions and operating cash flow Strategy Focus on gas infrastructure assets in Australia’s growing gas market … transmission,
Slide 4: APA's gas infrastructure business
APA’s gas infrastructure business For personal use only Owner of strategic gas infrastructure across Australia: – More than 12,000 km of gas transmission pipelines – 23,000 km of gas distribution networks and 1.1 million connections (APA and Envestra) Internal management and operation of APA’s w
Slide 5: APA's strengths
APA’s strengths For personal use only Unrivalled gas asset footprint - largest gas transporter of natural gas across Australia by pipeline length, capacity and volume Integrated portfolio of gas pipeline assets - providing revenue and operating synergies Attractive growth opportunities – enhan
Slide 6: Solid track record in delivering value
Solid track record in delivering value EBITDA For personal use only Revenue (excluding passthrough) 500 700 615 450 431 600 400 500 350 Operating cash flow and 300 400 distributions per security $m $m 250 300 200 45 42.7 200 150 100 40 100 50 35 0 0 29.5 30 2004 2005 2006 2007 2008 2004 2005 2006 20
Slide 7: Continued strong underlying growth in 1H09
Continued strong underlying growth in 1H09 For personal use only $ million 1H09 1H08 Change 1 Underlying revenue excluding pass-through 367.7 305.5 K 20% Underlying EBITDA 1 248.8 214.7 K 16% Underlying NPAT 1 56.7 44.7 K 27% Underlying OCF 2 122.8 109.3 K 12% Underlying OCF per security (cents) 25.
Slide 8: Strategic and operational highlights 1H09
Strategic and operational highlights 1H09 For personal use only Completed the establishment of Energy Infrastructure Investments (EII) – Proceeds in excess of book value – $647 million used to pay down debt – Strong equity partners – Marubeni Corporation and Osaka Gas of Japan – APA continues as a
Slide 9: Capital management
Capital management For personal use only Strong balance sheet Secure long term debt portfolio Cash and committed undrawn facilities of Refinanced $150 million MTNs in August $710 million at 31 December 2008 2008 (plus additional $15 million debt facility) Gearing* of 69.7% within target range
Slide 10: APA's quality gas infrastructure portfolio
APA’s quality gas infrastructure portfolio For personal use only Delivering gas from all major gas production sources to all major gas markets – More than 50% of gas used in Australia is transported through APA’s pipelines Importance of APA pipelines in eastern states – Transporting more than 70
Slide 11: Growing demand for gas - power generation
Growing demand for gas - power generation For personal use only Pipelines primarily sell capacity - gas fired power generation requires pipeline capacity and gas throughput: Baseload Æ volume throughput Peak/intermediate Æ capacity and storage Growth in gas fired power generation Growth in cap
Slide 12: Opportunities in a carbon constrained environment
Opportunities in a carbon constrained environment For personal use only Implementation of Carbon Pollution Reduction Scheme (CPRS) and expanded Renewable Energy Target (RET) requires significant new generation investments in the next decade. – $33 billion in new generation capacity, including back
Slide 13: Integrated pipelines facilitate retail market dynamics
Integrated pipelines facilitate retail market dynamics For personal use only Small number of retailers across east Australian gas and electricity markets – Three largest retailers (excluding NSW electricity) supply majority of the East Australian retail market Retailers’ gas portfolios are diver
Slide 14: Regulated and contracted revenue
Regulated and contracted revenue For personal use only Two categories of price regulated assets: (1) Tariffs set by regulation eg Victorian Transmission System (VTS) and APA Gas Network; (2) Tariffs set by regulation but existing contract terms remain Tariffs commercially negotiated for all othe
Slide 15: Summary
Summary For personal use only APA continues to deliver value to its securityholders through growth in distributions and operating cash flow Strong focus on capital management Quality portfolio of gas infrastructure assets throughout Australia Attractive growth opportunities with APA’s pipeli
Slide 16: Supplementary information
For personal use only Supplementary information
Slide 17: Total committed debt facilities (at December 08)
Total committed debt facilities (at 31 December 08) For personal use only Facility Facility amount Tenor Medium term notes $300 million March 2009 1 Bilateral borrowings $165 million July 2011 2003 US private placement $496 million 7, 10, 12 and 15 year tranches September 2010, 2013, 2015 and 2018 2
Slide 18: Regulatory resets over the next five years
Regulatory resets over the next five years For personal use only The Carpentaria Gas Pipeline and Moomba Sydney Pipeline are now both Light Regulation pipelines. Murraylink and Directlink assets were sold to EII. The current regulatory revenue arrangements for these electricity transmission asse
Slide 19: For personal use only
For personal use only April 09 Æ 18
Slide 20: Delivering Australia's energy
For personal use only Delivering Australia’s energy For further information visit APA’s website www.apa.com.au 1H09 Results Presentation Æ 19
Slide 21: Disclaimer
Disclaimer For personal use only The information contained in this presentation is given without any liability whatsoever to Australian Pipeline Trust or APT Investment Trust or any of its related entities (collectively “APA Group”) or their respective directors or officers, and is not intended to c
Slide 22: ASX Release: further information and contacts
For personal use only ASX RELEASE 1 April 2009 For further information please contact: Investor enquiries: Media enquiries: Chris Kotsaris Joanne Collins Investor Relations APA Group Kreab Gavin Anderson Telephone: (02) 9693 0049 Telephone: (02) 9552 8939 Mob: 0402 060 508 Mob: 0423 029 932 Email: c
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