Apa Group · ASX:APA
Apa — Shareholder Meeting (October 2018)
41 slides from Apa's shareholder meeting presentation, Oct 25, 2018
Slide 1: Annual Meeting Presentation
Australian Pipeline Ltd ACN 091 344 704 | Australian Pipeline Trust ARSN 091 678 778 | APT Investment Trust ARSN 115 585 441 Level 25, 580 George Street Sydney NSW 2000 | PO Box R41 Royal Exchange NSW 1225 Phone +61 2 9693 0000 | Fax +61 2 9693 0093 APA Group | apa.com.au 25 October 2018 ASX ANNOUNC
Slide 2: Address by Chairman, Michael Fraser
APA Group 2018 Annual Meeting 25 October 2018 Address by Chairman, Michael Fraser Ladies and gentlemen, It’s been another significant and productive year for APA. For long-time investors, you’ve been fortunate in hearing words to that effect from the respective Chairmen of APA over the last 18 years
Slide 3: Chairman's address: CKI Consortium offer
APA has had a long-term focus on growing the business and growing returns to our Securityholders – and we’ve done that very successfully. That success has caught the attention of others - most notably the CKI group. Let me be clear that the Board has never put a ‘For Sale’ sign up on APA, however in
Slide 4: Timing of the takeover and energy policy
In terms of timing, it all depends on if and when the Treasurer were to give his approval. If approval were to be given in the next week or so, we envisage a meeting of APA Securityholders to be held early in December. If the transaction was approved at that meeting, then payment to APA Securityhold
Slide 5: Energy policy and ESG framework review
That is an honest conversation that needs to be had when we as a community and politicians on our behalf, make choices as to whether to allow the development of certain projects or not, and it shouldn’t just be the loudest voice whose arguments prevail. For APA – we’ll continue to do our part to try
Slide 6: Address by Managing Director, Mick McCormack
Address by Managing Director, Mick McCormack Thank you, Chairman, and good morning, ladies and gentlemen. As I was preparing this address and given the circumstances around the proposed transaction with CKI, I was reflecting that today is the 14th time I have addressed APA’s Annual Meeting as the CE
Slide 7: Growth projects and capital spend
These projects are all bang on our strategy of leveraging our existing portfolio base to grow the business. This diversity not only increases our asset portfolio, our physical footprint and our expertise, but it simultaneously helps diversify our risk profile. APA is in the midst of the largest capi
Slide 8: Growth capex outlook and customer relationships
Even though the proposed National Energy Guarantee policy is dead for the time being, the simple fact underlying that policy is that we need to balance the growing proportion of renewable energy sources with dispatchable, reliable energy – like gas, which should be good for APA. As a result of good
Slide 9: Success, employees and securityholder return
Now, our success has been recognised by a compelling offer made by CKI to our Securityholders. But regardless of how it pans out, the hard work, vision and persistence that has led to our success remains unchanged. We will still be the same company we always have been – with a team of highly skilled
Slide 10: APA Group 2018 annual meeting
APA Group 2018 annual meeting. 25 October 2018.
Slide 11: Disclaimer
disclaimer This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) as responsible entity of the Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) (APA Group). The information in this presentation does not contain all the information
Slide 12: Michael Fraser, APA Group Chairman
APA Group Chairman Michael Fraser 3
Slide 13: APA Group Board
APA Group Board Mick McCormack Steve Crane Debbie Goodin Russell Higgins AO Managing Director Patricia McKenzie Shirley In’t Veld Peter Wasow 4
Slide 14: APA Group senior management
APA Group senior management Nevenka Codevelle Peter Fredricson Ross Gersbach Kevin Lester Company Secretary Elise Manns Sam Pearce Rob Wheals 5
Slide 15: Agenda
agenda annual meeting 2018. Chairman’s address Managing Director’s address Formal business General business Meeting close
Slide 16: Chairman's address
Chairman’s address Construction of the Reedy Creek Wallumbilla Pipeline in Queensland, commissioned in May 2018
Slide 17: FY2018 results
FY2018 results FY2018 change Statutory results Revenue excluding pass-through(1) $1,941.4 m Up 2.8% EBITDA $1,518.5 m Up 3.3% Net profit after tax $264.8 m Up 11.8% Operating cash flow(2) $1,031.6 m Up 5.9% Operating cash flow per security 90.7 c Up 4.1% Distributions Distributions per security 45.0
Slide 18: CKI update
CKI update • 13 June 2018: APA announced indicative, unsolicited non-binding proposal – due diligence commenced • 13 August 2018: Conditional Implementation Agreement announced • A$11.00 per security cash offer • APA Board unanimously recommends the compelling offer(1): – >30% premium (5 day, 1 mont
Slide 19: Long term investment – capital intensive
long term investment – capital intensive investors need a level of certainty to make confident investment decisions Wallumbilla Gladstone Pipeline ~$6 b Darling Downs Solar Farm ~$200 m Orbost Gas Processing Plant ~$270 m
Slide 20: FY2019 outlook
FY2019 outlook • Based on current operating plans and available information, EBITDA for FY2019 is expected to be within a range of $1,550 million to $1,575 million • In the event that the CKI proposal does not proceed and APA remains a stand-alone listed company for the full financial year, distribu
Slide 21: Managing Director's address
Managing Director’s address Emu Downs Solar Farm in WA, commissioned in January
Slide 22: FY18 highlights
FY18 highlights 5 mining customers DPS – new customer now utilising the interconnected Goldfields Grid Reedy Creek Wallumbilla Pipeline 20MW EDSF – – new bi-directional pipeline commissioned in January accessing the eastern Australia gas market Emu Downs & Badgingarra 167.5MW of new solar and Darlin
Slide 23: Customers at the centre of our decision-making
customers at the centre of our decision-making The Energy Charter – industry initiative Flexibility • Objective: reconnect industry as a whole with its purpose and create collective accountability for better customer outcomes Clarity Simplicity • Charter Principles focus on: • Interconnected grid -
Slide 24: APA – 18 years of growth
APA – 18 years of growth 17.9% compound annual growth rate since listing $13bn invested by APA into 2,400 APA total securityholder return Australian energy infrastructure 2,000 Utilities accumulation index S&P/ASX 200 accumulation index 1,600 globally unique East Coast Grid 1,200 >7,500km interconne
Slide 25: Formal business
Formal business Yamarna Power Station, under construction, Western Australia
Slide 26: Registration and voting
registration and voting Yellow card - person entitled to vote / ask questions Blue card - non-voting member /ask questions Red card - visitor and non-voting 17
Slide 27: Ordinary Resolutions
Ordinary Resolutions • Resolution 1: Adoption of the Remuneration Report • Resolution 2: Nomination of Debra Goodin for re-election as a Director • Resolution 3: Nomination of Russell Higgins AO for re-election as a Director • Resolution 4: Nomination of Shirley In’t Veld for election as a Director
Slide 28: Resolution 1 Adoption of the Remuneration Report
Resolution 1 Adoption of the Remuneration Report “That the Remuneration Report for the year ended 30 June 2018 be adopted.” 19
Slide 29: Adoption of FY2018 Remuneration Report
Resolution 1 Adoption of FY2018 Remuneration Report Valid available proxy votes received: for open against abstain* 526,738,642 9,370,701 180,007,389 3,714,239 73.55% 1.31% 25.14% - * votes by a person who abstains on an item are not counted in calculating the required majority on a poll 20
Slide 30: Ordinary Resolutions 2, 3, 4 and 5
Ordinary Resolutions 2, 3, 4 and 5 • Resolution 2: Nomination of Debra Goodin for re-election as a Director • Resolution 3: Nomination of Russell Higgins AO for re-election as a Director • Resolution 4: Nomination of Shirley In’t Veld for election as a Director • Resolution 5: Nomination of Peter Wa
Slide 31: Resolution 2 Nomination of Debra Goodin
Resolution 2 Nomination of Debra Goodin for re-election as a Director “That the nomination of Debra Goodin to be re-elected as a Director of Australian Pipeline Limited be approved.” 22
Slide 32: Proxy votes: Debra Goodin re-election
Resolution 2 Nomination of Debra Goodin for re-election as a Director Valid available proxy votes received: for open against abstain* 701,963,417 9,743,136 6,249,869 1,874,549 97.77% 1.36% 0.87% - * votes by a person who abstains on an item are not counted in calculating the required majority on
Slide 33: Resolution 3 Nomination of Russell Higgins AO
Resolution 3 Nomination of Russell Higgins AO for re-election as a Director “That the nomination of Russell Higgins AO to be re-elected as a Director of Australian Pipeline Limited be approved.” 24
Slide 34: Proxy votes: Russell Higgins re-election
Resolution 3 Nomination of Russell Higgins AO for re-election as a Director Valid available proxy votes received: for open against abstain* 580,278,020 9,783,518 127,893,681 1,876,057 80.82% 1.36% 17.81% - * votes by a person who abstains on an item are not counted in calculating the required ma
Slide 35: Resolution 4 Nomination of Shirley In't Veld
Resolution 4 Nomination of Shirley In’t Veld for election as a Director “That the nomination of Shirley In’t Veld to be elected as a Director of Australian Pipeline Limited be approved.” 26
Slide 36: Proxy votes: Shirley In't Veld election
Resolution 4 Nomination of Shirley In’t Veld for election as a Director Valid available proxy votes received: for open against abstain* 705,498,679 10,184,409 2,172,313 1,975,875 98.28% 1.42% 0.30% - * votes by a person who abstains on an item are not counted in calculating the required majority
Slide 37: Resolution 5 Nomination of Peter Wasow
Resolution 5 Nomination of Peter Wasow for election as a Director “That the nomination of Peter Wasow to be elected as a Director of Australian Pipeline Limited be approved.” 28
Slide 38: Proxy votes: Peter Wasow election
Resolution 5 Nomination of Peter Wasow for election as a Director Valid available proxy votes received: for open against abstain* 703,833,862 10,002,909 3,835,427 2,159,078 98.07% 1.39% 0.53% - * votes by a person who abstains on an item are not counted in calculating the required majority on a
Slide 39: Voting and proxy votes
voting and proxy votes Yellow card Red card Blue card Person entitled to vote Non-voting member Visitor and non-voting FOR OPEN AGAINST ABSTAIN* Resolution 1 526,738,642 9,370,701 180,007,389 3,714,239 Adoption of the Remuneration Report 73.55% 1.31% 25.14% - Resolution 2 701,963,417 9,743,136 6,249
Slide 40: General business
General business Badgingarra Wind Farm, under construction, Western Australia
Slide 41: For more information visit www.apa.com.au
for more information visit www.apa.com.au