Apa Group · ASX:APA
Apa — Investor Presentation (February 2018)
31 slides from Apa's investor presentation, Feb 21, 2018
Slide 1: APA Group entitlement offer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES APA Group entitlement offer. For personal use only 21 February 2018
Slide 2: Disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES disclaimer This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) (APL) as the responsible entity of Australian Pipeline Trust (ARSN 091 678 778) (APT) and APT Investment Trust (ARSN 115 585 441) (APTIT) (together, AP
Slide 3: Disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES disclaimer There can be no assurance that actual outcomes will not differ materially from these statements. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as predic
Slide 4: Disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES disclaimer APA and the underwriters Neither the underwriters, nor any of their Extended Parties, nor the advisers to APA, have authorised, permitted or caused the issue, lodgement, submission, dispatch or provision of this presentation and do not
Slide 5: Capital raising overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES capital raising overview APA is undertaking a fully underwritten capital raising by way of a 1 for 17, pro-rata accelerated institutional For personal use only tradeable retail renounceable entitlement offer to raise approximately $500 million (
Slide 6: Key offer details
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key offer details 1 for 171 fully underwritten pro-rata accelerated institutional tradeable retail renounceable entitlement offer Offer structure For personal use only to raise approximately $500 million and size Approximately 65,547,493 milli
Slide 7: Debt maturity profile
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES debt maturity profile Equity raise will help manage APA’s internal gearing profile and further strengthen its credit metrics For personal use only Repayment of Subordinated Notes will lower average cash interest costs Debt maturity profile1 St
Slide 8: Offer timetable
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES offer timetable Event For personal use only Trading halt, announce 1H FY18 results and Entitlement Offer Wednesday, 21 February 2018 Institutional Entitlement Offer closes Thursday, 22 February 2018 Institutional shortfall bookbuild Friday, 23 Feb
Slide 9: Key risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks For personal use only
Slide 10: Key risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks This section discusses some of the key risks associated with any investment in APA together with risks relating to For personal use only participation in the Entitlement Offer which may affect the value of APA Securities. The risks set
Slide 11: Key risks – 1. business risks: regulatory risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 1. business risks 1.1 regulatory risks APA's business includes regulated assets - A number of APA's significant assets are subject to economic regulation, including regulation of the prices that APA is permitted to charge as For pers
Slide 12: Key risks – regulatory risks (cont'd)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 1. business risks 1.1 regulatory risks (cont’d) Risk of changes to the regulatory environment governing APA's activities (cont’d) For personal use only - Further, in 2018, it is anticipated that the Gas Market Reform Group and the Au
Slide 13: Key risks – gas demand risk
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 1. business risks 1.3 gas demand risk The performance of APA's energy infrastructure businesses is affected by the volume of gas transported through APA's pipeline networks. As well as gas For personal use only supply, this is depend
Slide 14: Key risks – counterparty and long-term contract risk
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 1. business risks 1.5 counterparty risk In addition, APA enters into contracts with its customers and other counterparties which give the counterparty rights to terminate the contracts if APA For personal use only defaults on its obl
Slide 15: Key risks – interest rates, refinancing, credit rating
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 1. business risks 1.8 interest rates and refinancing risks (cont’d) APA's borrowings extend through to 2035. Access to continuing financing sources to extend and/or refinance debt facilities will be important. An inability For person
Slide 16: Key risks – acquisition and integration risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 1. business risks 1.12 acquisition and integration risks (cont’d) APA may not be able to identify and/or successfully complete all prudent acquisition opportunities or mitigate all risks which may arise from an For personal use only
Slide 17: Key risks – environmental risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 1. business risks 1.16 environmental risks National, state and territory environmental laws and regulations affect the operations of APA's assets and apply to the sites, easements and facilities of For personal use only APA's operati
Slide 18: Key risks – pipeline reliability and extreme weather
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 1. business risks 1.19 reliability or interference of pipeline network APA's business is materially dependent on the reliability of its pipeline network. In order to maintain the pipeline system operations, repairs and For personal u
Slide 19: Key risks – people risk
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 1. business risks 1.23 people risk APA's continued success is dependent, in part, on its ability to attract, engage, develop and retain the right employees within a market where there is For personal use only varying supply of skille
Slide 20: Key risks – joint venture risk
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 1. business risks 1.27 joint venture risk APA holds a number of interests in companies together with joint venture partners through equity or other joint ventures. Certain decisions require For personal use only approval of the other
Slide 21: Key risks – offer and general risks: underwriting
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 2. offer and general risks 2.1 underwriting risk APA has entered into an underwriting agreement under which the underwriters have agreed to fully underwrite the Entitlement Offer, subject to the For personal use only terms and condit
Slide 22: Key risks – renouncement risk
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 2. offer and general risks 2.2 renouncement risk (cont.) To the maximum extent permitted by law, APA, the underwriters and their respective advisers, affiliates, related bodies corporate, directors, officers, For personal use only pa
Slide 23: Key risks – market and economic risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 2. offer and general risks 2.4 market generally (cont’d) Securities (including the New Securities to be issued pursuant to the Entitlement Offer) may trade at higher or lower prices than the price at the time of For personal use only
Slide 24: Key risks – changes in law and tax
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES key risks – 2. offer and general risks 2.10 changes in law, regulation and government policy Changes in law (including the NGL and the NGR), relevant taxation laws, interest rates, accounting standards, other legal, legislative and administrativ
Slide 25: Annexure A: International selling restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Annexure A: International selling restrictions This presentation does not constitute an offer of entitlements (Entitlements) or New Securities in any jurisdiction in which it would be unlawful. In particular, This presentation may not be distribut
Slide 26: Annexure A: International selling restrictions (cont.)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Annexure A: International selling restrictions (cont.) Canada (British Columbia, Ontario and Quebec provinces) cont’d Section 138 of the Securities Act (Ontario) provides that no action shall be commenced to enforce these rights more than (a) in t
Slide 27: Annexure A: International selling restrictions – Hong Kong
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Annexure A: International selling restrictions (cont.) Hong Kong WARNING: This presentation has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, n
Slide 28: Annexure A: International selling restrictions – Japan
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Annexure A: International selling restrictions (cont.) Japan The Entitlements and the New Securities have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948),
Slide 29: Annexure A: International selling restrictions – Sweden, Switzerland
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Annexure A: International selling restrictions (cont.) Sweden This presentation has not been, and will not be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this presentation may not
Slide 30: Annexure A: International selling restrictions – United States
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Annexure A: International selling restrictions (cont.) United States This presentation may not be distributed or released in the United States. This presentation does not constitute an offer to sell, or a solicitation of any offer to buy, any secu
Slide 31: Glossary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Glossary $ or A$ or dollars Australian dollars 1H18 Interim the interim distribution of 21 cents per existing Security for the period of 6 months ended 31 December 2017. New Securities For personal use only Distribution are not entitled to the 1H1