Apa Group · ASX:APA
Apa — Craigs Investment Partners Investor Day October 2015
28 slides from Apa's conference presentation, Oct 12, 2015
Slide 1: Connecting Markets Creating Opportunities
For personal use only Connecting Markets Creating Opportunities Peter Fredricson, Chief Financial Officer October 2015
Slide 2: 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 3: Australia's largest gas pipeline owner by pipeline length, capacity and volume
Australia’s largest gas pipeline owner by pipeline length, capacity and volume For personal use only APA Overview (Ticker: APA AU) Market capitalisation A$9.5 billion (as at 30 September 2015) ASX rank S&P/ASX 50 Credit Rating S&P: BBB (outlook Stable) Moody’s: Baa2 (outlook Stable) Assets owned/ ~
Slide 4: Maximising value for securityholders
Maximising value for securityholders For personal use only Indexed to 100 from listing date, 13 June 2000 to 30 June 2015 Source: IRESS data Normalised results exclude one-off significant items, reflecting APA’s core earnings from operations. CAGR: 14.8% APA Group | Craigs Investment Partners Invest
Slide 5: FY15 EBITDA Bridge
FY15 EBITDA Bridge For personal use only 11.6% organic growth achieved in FY2015 APA Group | Craigs Investment Partners Investor Day | October 2015 5
Slide 6: Developing growth projects across the country
Developing growth projects across the country For personal use only Continue to connect resources to markets by working with our customers Committed projects underwritten by long term revenue contracts and/or regulatory arrangements Provision of new services responding to customers’ needs and
Slide 7: East Coast Grid – Australia's gas superhighway
East Coast Grid – Australia’s gas superhighway A gas superhighway offering unprecedented levels of service For personal use only innovation and flexibility: – ~30 gas receipt and ~100 gas delivery points – Storage (in-pipe, LNG) – Interruptible haulage and storage services – Capacity trading and i
Slide 8: Wallumbilla Gladstone Pipeline – US$4.6bn acquisition
Wallumbilla Gladstone Pipeline – US$4.6bn acquisition For personal use only Welcome addition to APA’s East Coast Grid – Financial close on 3 June 2015 – 4 weeks of contribution to APA earnings – Addition of Gladstone delivery point to the East Coast Grid – 20-year take-or-pay contracts with two hi
Slide 9: Western Australia & Northern Territory
Western Australia & Northern Territory Solid organic growth in the emerging Perth For personal use only region energy precinct Serving mining operations in the Pilbara and Goldfields regions Possible pipeline routes to connect the NT and the East Coast Grid NT Link – bids submitted, final bidd
Slide 10: Sustainable growth in Distributions
Sustainable growth in Distributions APA’s Distribution Policy For personal use only Fully covered by Operating Cash Flow Regard for capital needs of the +4.8% business and economic conditions on FY14 Grow generally in line with Operating Cash Flow Sustainable over the long term Soft target
Slide 11: Outlook and FY2016 Guidance
Outlook and FY2016 Guidance Statutory EBITDA for FY2016 expected within a range of $1,275 million to $1,310 million For personal use only Includes US$ denominated contribution from Wallumbilla Gladstone Pipeline of approximately US$355 million Net interest costs for FY2016 expected within a ra
Slide 12: Connecting gas resources to gas markets
Connecting gas resources to gas markets Organic growth Darwin For personal use only – Capacity expansions, enhancements and new services – New services and more flexible contracts supplement traditional take-or-pay Dynamic energy market conditions Gladstone – Assist customers to manage energy ne
Slide 13: 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 – Decrease in LTIFR(1) to 0.64, down from 0.80 – Second year of a 3-year HSE Strategic Improvement Plan Enhancing infrastructure operation
Slide 14: Questions
For personal use only Questions APA Group | Craigs Investment Partners Investor Day | October 2015 14
Slide 15: Appendix
For personal use only Appendix APA Group | Craigs Investment Partners Investor Day | October 2015 15
Slide 16: FY15 statutory and normalised results
FY15 statutory and normalised results For personal use only $ million 2015 2014 Change Statutory Significant Normalised Statutory Significant Normalised Normalised items items Revenue excluding pass-through(1) 1,119.2 - 1,119.2 992.5 992.5 12.8% EBITDA – continuing businesses(2) 838.5 17.2 821.3 697
Slide 17: FY15 result: EBITDA by business segment
FY15 result: EBITDA by business segment For personal use only % of Historical EBITDA by business segment(1) $ million 2015 2014 Change EBITDA(3) Energy Infrastructure Queensland 340.1 234.5 45.1% 38.0% New South Wales 120.8 115.6 4.5% 13.5% Victoria & South Australia 132.1 130.0 1.6% 14.8% Western A
Slide 18: FY15 Operational summary – Energy Infrastructure
FY15 Operational summary – Energy Infrastructure Expansion of the East Coast Grid capacity and service For personal use only offerings continues: Revenue Split by Contract Type − EBITDA from APA’s East Coast Grid increased by 16.1% prior to inclusion of WGP − WGP financial close reached on 3 June
Slide 19: EBITDA by pipeline
EBITDA by pipeline For personal use only APA Group | Craigs Investment Partners Investor Day | October 2015 19
Slide 20: 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 FY2015 Revenue by Customer Credit Rating FY2015 Revenue by Customer Industry Segment Stable a
Slide 21: FY15 Operational summary – Energy Investments & Asset Management
FY15 Operational summary – Energy Investments & Asset Management For personal use only Asset Management Underlying earnings continue to grow Reduction in one-off customer contributions for relocating APA infrastructure, however still generate around $10m p.a. on average in the long term Energy I
Slide 22: Corporate overheads stay flat vs growth
Corporate overheads stay flat vs growth For personal use only Corporate costs have remained flat over the last 5 years vis-à-vis growth of the business Corporate costs as a portion of EBITDA from continuing operating businesses is at 8.2% This is expected to further improve in FY16 with additi
Slide 23: Capital expenditure
Capital expenditure For personal use only $ million FY15(1) FY14(1) Committed growth capex Growth capex Regulated - Victoria 136.1 65.5 Major Projects Queensland 104.4 206.6 New South Wales 12.1 13.2 Western Australia 64.2 73.2 Other 26.3 23.8 Total growth capex 343.1 382.5 Stay in business capex 50
Slide 24: Capital management
Capital management For personal use only Cash and committed undrawn facilities of around $1.6 billion as at 30 June 2015(1) . Metrics(2) 2015 2014 Gearing (3,4) 63.4% 64.2% Interest cover ratio 2.59 times 2.31 times Average interest rate applying to drawn debt (4) 6.76% 7.12% Interest rate expos
Slide 25: Capital management
Capital management APA has received solid support from international debt capital markets For personal use only Maintaining diversity of funding sources and spread of maturities (1) Does not include the US$4 billion syndicated bridge facility executed in November 2014 which is, as yet, undrawn APA
Slide 26: Debt facilities
Debt facilities For personal use only Total committed debt facilities at 30 June 2015 Facility Drawn $million amount amount Tenor 2013 Bilateral borrowing 200 0 5 years maturing December 2018 2014 Syndicated facilities (1) 1,100 125 2.25, 3.25 and 5.25 year trances maturing September 2016, 2017 and
Slide 27: APA FY15 Results Presentation
For personal use only 27 APA FY15 Results Presentation 27 APA Group | Craigs Investment Partners Investor Day | October 2015
Slide 28: For further information contact
For personal use only For further information contact Yoko Kosugi Delivering Australia’s energy 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
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