Apa Group · ASX:APA
Apa — Investor Presentation (June 2015)
32 slides from Apa's investor presentation, Jun 5, 2015
Slide 1: Connecting opportunities
For personal use only Connecting opportunities Connecting resources to markets through a sustainable strategy Investor Presentation for North American Investors June 2015
Slide 2: APA Overview
Australia’s largest gas pipeline owner by pipeline length, capacity and volume For personal use only APA Overview (Ticker: APA AU) Normalised Continuing Business EBITDA(1) $800m Market capitalisation A$10.4billion (as at 29 May 2015) Full years Half years $700m ASX rank S&P/ASX 50 $600m CAGR: 14.0%
Slide 3: For personal use only
For personal use only APA Group │ June 2015 │ 3
Slide 4: Stable and predictable cashflows
Stable and predictable cashflows Customers associated with many contracted assets provide essential services: For personal use only – Regulated gas distribution systems – Major power generation facilities Counterparty credit ratings by contracted volumes(1) 1H 15 Revenue split by contract type for
Slide 5: APA's long term strategy
APA’s long term strategy Consistent execution of a sustainable growth strategy since listing in 2000 For personal use only We’re focused on building and enhancing our core business of gas infrastructure assets Continuing to grow our Leveraging our asset ownership interests in management, develop
Slide 6: APA listing - June 2000
APA listing - June 2000 For personal use only 15 years ago, APA had assets worth circa $1 billion with no operatorship APA Group │ June 2015 │ 6
Slide 7: Own and/or operate $19 billion of assets - June 2015
Own and/or operate $19 billion of assets - June 2015 For personal use only Today, APA is the largest gas infrastructure portfolio in Australia in terms of scale and geographic diversity APA Group │ June 2015 │ 7
Slide 8: For personal use only
Construction of the new Eastern Goldfields Pipeline, 162 km looping of APA’s Victorian Northern WA is well underway with almost half of the 292 km Interconnect is almost complete, enabling more gas to of pipe strung along the route. Completion due by flow north into NSW from southern supply basins.
Slide 9: Where to from here - strategic development
Where to from here - strategic development For personal use only Continue to connect resources to markets, by working with our customers New pipelines and expansions underwritten by customer contracts Provision of new services responding to customers’ needs and developing new opportunities C
Slide 10: Key initiative - east coast grid innovation
Key initiative - east coast grid innovation For personal use only Transformational change in service provision - seamless, flexible, new options/solutions Ongoing development and growth opportunities APA’s east coast grid is responding to the dynamic eastern gas market, providing flexibility for
Slide 11: Production vs Consumption in the east
Production vs Consumption in the east For personal use only 800 PJ Gas Consumption TAS by Eastern States SA Gas Production by Eastern regions Otway / Bass / Gippsland VIC Sydney NSW Cooper Bowen / Surat QLD 2010 201020112011 2012 2010 2012 2013 2013 2014 2014 One GTA Source: EnergyQuest quarterly re
Slide 12: Wallumbilla Gladstone Pipeline acquisition - adds km and access to Gladstone
Wallumbilla Gladstone Pipeline(1) acquisition - adds 543 km and - access to Gladstone For personal use only (1) QCLNG Pipeline renamed on change of ownership to APA Creation of 7,500 km of interconnected grid with access to export market and highly creditworthy customers APA Group │ June 2015 │ 12
Slide 13: Wallumbilla Gladstone Pipeline acquisition
Wallumbilla Gladstone Pipeline acquisition For personal use only Financial close reached on 3 June 2015 Final acquisition price of US$4.6 billion 20 year take-or-pay contracts with BG Group and CNOOC entities Tariffs escalating by US CPI for term of contracts with first full year EBITDA cont
Slide 14: Emerging opportunity - NT Link
Emerging opportunity - NT Link Options For personal use only Short/quick - Mount Isa: 600 km Long/ $$$ - Moomba: 1,175 km …or somewhere in between Why link? NT has >200,000 PJ of gas resources(1) Seamless transport between Timor Sea, Bass Strait, Sydney and Gladstone Long term additional
Slide 15: Opportunities in the west
Opportunities in the west GGP expansion projects complete For personal use only Eastern Goldfields Pipeline − greenfield − long term GTAs with AngloGold − using 3 interconnected APA pipelines − replace diesel with gas − completion due by Jan 2016 Customers that take long term view of their ene
Slide 16: Further growth - Australian midstream sector
Further growth - Australian midstream sector APA will continue to consider investment opportunities in the midstream sector For personal use only North American oil and gas industry has distinct upstream and midstream sectors Opportunities for the Australian upstream sector to pursue a similar a
Slide 17: Operational excellence - IOC
Operational excellence - IOC APA’s new Integrated Operations Centre will provide seamless service to our For personal use only customers on the east coast grid Better response to market changes Integrated Operations Centre, Brisbane Holistic management of the Grid Standardised and consistent p
Slide 18: Maintaining a strong balance sheet
Maintaining a strong balance sheet Growth needs to be sustainably funded with appropriate capital structure For personal use only APA’s Distribution Policy Fully covered by OCF Sustainable over the long term Capital Management 31 Dec 2014 30 Jun 2014 Grow generally in line with OCF Gearing (1,
Slide 19: Long term, diverse debt portfolio
Long term, diverse debt portfolio March 15 issuance – ongoing access to global markets: For personal use only – EUR700m 7yr notes @1.375% coupon Weighted average interest rate – EUR650m 12yr notes @2.0% coupon applying to drawn debt reduced to 5.6%* – GBP600m 15yr notes @3.5% coupon Average ma
Slide 20: Focus on safety and operational excellence
Focus on safety and operational excellence Health and safety For personal use only – Long-term safety goal of Zero Harm – a program of continuous improvement LTIFR – Decrease of LTIFR (1) to 0.7 (FY14), down from 2.1 (FY13) 7.3 6.1 – LTIFR as at 31 Dec 2014 is 0.3 4.9 – Second year of 3 year HSE S
Slide 21: APA - connecting resources to markets
APA - connecting resources to markets For personal use only Largest gas infrastructure portfolio in Australia in terms of scale and geographic diversity Unrivalled, interconnected footprint with sustainable growth opportunities Stable and predictable cash flows from regulated assets and long term co
Slide 22: Page Intentionally Left Blank
For personal use only Page Intentionally Left Blank
Slide 23: Financial Highlights
For personal use only Financial Highlights APA Group │ June 2015 │ 23
Slide 24: Proven growth and value creation
Proven growth and value creation Revenue EBITDA For personal use only $1,200m Full years Half years $1,000m Full years Half years $850(1) $993 $1,000m $920 $800m $764 $747 $800m $720 $758 $673 $660 $600m $447 $526 $460 $492 $600m $510 $523 $444 $399 $400m $400m $200m $200m $0m $0m FY09 FY10 FY11 FY1
Slide 25: Maximising value for securityholders
Maximising value for securityholders Total securityholder returns since listing For personal use only APA TSR: 1,394% 1600 APA CAGR: 19.9% 1400 1200 1000 800 600 400 200 0 APA Total securityholder return Total annual returns S&P / ASX 200 Utilities Accumulation Index 60% 43% Utilities Accumulation I
Slide 26: Sound financial performance
Sound financial performance For personal use only $ million 1H 15 1H 14 Change Statutory results EBITDA 849.6 398.9 up 113%(4) Net profit after tax 467.3 120.7 up 287%(4) Operating cash flow (1) 280.4 208.3 up 35%(4) Operating cash flow per security (cents) 31.9 24.1 up 32%(4) Normalised results (2)
Slide 27: 1H15 result: EBITDA by business segment
1H15 result: EBITDA by business segment For personal use only $ million 1H15 1H14 Change 1H15 EBITDA by business segment(1) Energy Investments Energy Infrastructure Asset Management 1.9% 5.0% Queensland 136.4 108.8 25% New South Wales 59.6 62.2 (4)% Victoria & South Australia 70.3 62.4 13% Western A
Slide 28: 1H15 Operational summary
1H15 Operational summary Energy Infrastructure EBITDA by asset For personal use only Expansion of the East coast grid capacity and service 1H15 offerings continues: − Moomba / Wallumbilla compressions completed 1H14 − BWP bi-directional installed − Victoria – NSW Interconnect expansion continues 1
Slide 29: Capital expenditure
Capital expenditure For personal use only $ million 1H15(1) 1H14(1) Growth capex – Actual & Committed Growth capex Regulated - Victoria 55.5 14.9 $400m Major Projects Queensland 78.5 93.6 $300m New South Wales 0.6 4.8 Western Australia 14.1 39.1 Other 13.3 11.4 $200m Total growth capex 162.0 163.8 S
Slide 30: Fully covered distributions
Fully covered distributions Distribution guidance for FY 2015 “at least 36.25 cents” For personal use only 1H 15 distribution payout ratio(1,2) cents of 55.6% 60 56.0 51.9 52.6 52.5 52.6 Distribution components: 50 48.2 17.5 cents profit distribution nil capital distribution 40 36.3 31.9 17.5 ce
Slide 31: Disclaimer
Disclaimer This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) the responsible entity of the Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) (APA Group). For personal use only Summary information: This presentation contains su
Slide 32: For further information contact
For personal use only For further information contact Delivering Australia’s Energy Yoko Kosugi Head of Investor Relations, APA Group Tel: +61 2 9693 0049 E-mail: yoko.kosugi@apa.com.au or visit APA’s website www.apa.com.au