Slide 1: ASX Release: Interim Results Presentation
For personal use only ASX RELEASE 24 February 2010 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: • Interim
Slide 2: Financial Results Half year ended 31 December 2009
For personal use only Financial Results Half year ended 31 December 2009 24 February 2010
Slide 3: Result overview and strategic highlights
For personal use only Result overview and strategic highlights Mick McCormack Managing Director and CEO 1H10 Result Presentation Æ 2
Slide 4: Ten years of consistent, strong performance
Ten years of consistent, strong performance For personal use only Total securityholder returns 400 APA maintains its value • no asset write‐down 300 • no dilutive capital raising • no distribution cut 200 100 Distributions per security 35 31.0 cps 30 0 cents per security 25 00 00 01 01 02 02 03 03 0
Slide 5: Strong cash generating business
Strong cash generating business For personal use only 1H10 1H09 Change $ million $ million Operating cash flow 159.5 122.8 up 30% Operating cash flow per security (cents) 31.6 25.8 up 23% Interim distribution 15.75 15.0 up 5% Distribution payout ratio 50.2% 59.8% Revenue excluding pass‐through 343.3
Slide 6: Strong performance from continuing business
Strong performance from continuing business For personal use only 1H10 1H09 Change $ million $ million Continuing Business performance Revenue excluding pass‐through 336.3 308.5 up 9% EBITDA 244.3 213.9 up 14% Continued organic growth of APA’s core business 1H10 Result Presentation Æ 5
Slide 7: Strategic and operational highlights
Strategic and operational highlights For personal use only Capturing and developing the growth opportunities on APA’s asset portfolio available from the growing demand for gas – Committed capital expenditure of $250 million to expand gas transmission and distribution assets, including – Moomba Syd
Slide 8: Financial performance
For personal use only Financial performance Peter Fredricson Chief Financial Officer 1H10 Result Presentation Æ 7
Slide 9: Strong interim result
Strong interim result 1H10 1H09 Change For personal use only $ million $ million Total revenue excluding pass‐through1 343.3 357.0 3.8 % Total revenue 495.9 490.0 1.2 % EBITDA 244.3 238.2 2.5 % EBIT 197.4 189.1 4.4 % Net interest expense (111.1) (121.9) 8.9 % Tax (22.7) (17.6) (28.8)% Profit 2 63.6
Slide 10: History of strong performance
History of strong performance For personal use only Operating cash flow EBITDA 250 $234 m 500 $444 m 200 400 $160 m $ million $ million 150 300 $244 m 100 200 50 100 0 0 01 02 03 04 05 06 07 08 09 0 01 02 03 04 05 06 07 08 09 0 1 1 20 20 20 20 20 20 20 20 20 1H 20 20 20 20 20 20 20 20 20 1H Distribu
Slide 11: EBITDA growth across business segments
EBITDA growth across business segments For personal use only 1H10 1H09 Change $ million $ million Gas Transmission and Distribution Queensland 51.6 50.5 2% New South Wales 53.1 44.0 21% Victoria 56.4 54.5 3% South Australia 0.8 0.8 ‐ Western Australia 51.0 48.7 5% Northern Territory 1.2 1.4 (14)% Ga
Slide 12: EBITDA growth across business segments
EBITDA growth across business segments For personal use only 70 1H09 60 1H10 EBITDA split by segment EII contribution 50 Energy Investments Asset 6% $ million 40 Management 7% 30 20 GasTransmission and Distribution 10 87% 0 Queensland New South Victoria & South Western Asset Energy Assets sold to Wa
Slide 13: Major capital expenditure
Major capital expenditure For personal use only 1H10 1H09 $ million $ million Regulated Victoria Transmission System 16.6 8.0 Includes northern expansion (1H10); Brooklyn Lara Pipeline (1H09) APA Gas Networks (Qld) 8.7 7.0 Includes southern network expansion 25.3 15.0 Major Projects Queensland expan
Slide 14: Fully covered distributions
Fully covered distributions For personal use only On target to deliver at least 5% growth for FY2010 distribution 50 48.2 Operating cash flow per security 45 42.7 39.7 Distribution per security 40 37.6 38.2 35 cents per security 31.6 30 31.0 29.5 25 28.0 1H10 payout ratio 50% on 24.0 20 22.5 opera
Slide 15: Prudent capital management: strong balance sheet
Prudent capital management For personal use only Strong balance sheet Cash and committed undrawn facilities of $650 million at 31 December 2009 1H10 metrics – Gearing1 of 69.9%, reduced from 70.3% at 30 June 2009 – Interest Cover Ratio of 2.16x, increased from 2.13x at 30 June 2009 – Interest ra
Slide 16: Prudent capital management: long-term debt portfolio
Prudent capital management For personal use only Secure long‐term debt portfolio supporting business growth Refinanced debt maturing in FY2010, plus raised headroom to refinance maturities in FY2011 – $1,365 million raised in 1H10 – USPP, bilateral loan, new syndicated facility Continuing implem
Slide 17: Operational performance and outlook
For personal use only Operational performance and outlook Mick McCormack Managing Director and CEO 1H10 Result Presentation Æ 16
Slide 18: APA strategy firm
APA strategy firm For personal use only Maximise value for securityholders Focusing on gas infrastructure assets in Australia’s growing gas market and enhancing APA’s portfolio of assets 4,061 PJ – Abundant domestic gas reserves – Increasing demand for natural gas, 69,708 PJ in particular for powe
Slide 19: Gas transmission and distribution
Gas transmission and distribution For personal use only New South Wales Victoria and South Australia – Continuation of Moomba Sydney Pipeline – Commenced work on northern zone expansion mainline expansion program (5‐year) 60 50 – Commenced expansion of southern lateral for SESA Pipeline EBITDA 4
Slide 20: Development and growth opportunities
Development and growth opportunities For personal use only APA’s portfolio provides strategic growth opportunities 1H10 Result Presentation Æ 19
Slide 21: Guidance for FY2010
Guidance for FY2010 For personal use only Distribution guidance unchanged Distribution guidance – Interim distribution confirmed at 5% (yoy) – Barring unforeseen circumstances, anticipate delivering 5% growth in FY2010 – Full year distribution expected to be in line with previous years’ pay‐out ra
Slide 22: Questions
For personal use only Questions 1H10 Result Presentation Æ 21
Slide 23: Supplementary information
For personal use only Supplementary information 1H10 Result Presentation Æ 22
Slide 24: APA profile
APA profile For personal use only APA is Australia’s largest natural gas infrastructure business – Gas Transmission and Distribution: gas pipelines, interconnected gas storage facilities across Australia, and gas distribution networks in Queensland and New South Wales – Asset Management: provides
Slide 25: Key financial ratios
Financials For personal use only Key financial ratios 1H10 1H09 Underlying operating cash flow (cps) 31.6 25.8 Weighted average securities on issue (m) 504.5 475.8 Payout ratio 50.2% 59.8% Earning per security (cps) underlying 12.7 11.9 reported 12.6 3.8 Interest cover ratio (times) 2.16 1.88 Gearin
Slide 26: Cash flow
Financials For personal use only Cash flow 1H10 1H09 $ million $ million Change Operating cash flow (OCF) 159.5 122.8 29.9% Distributions (net of DRP) 50.6 43.7 Available operating cash flow 108.9 79.1 37.7% Operating cash flow per security (cents) 31.6 25.8 22.5% Distributions per security (cents)
Slide 27: Revenue analysis by business segment
Financials For personal use only Revenue analysis by business segment 1H10 1H09 Change $ million $ million Gas Transmission and Distribution Queensland 76.8 71.8 7% New South Wales 64.3 54.3 18% Victoria 72.8 75.3 (3)% South Australia 1.0 1.4 (29)% Western Australia 72.5 69.1 5% Northern Territory 5
Slide 28: Reconciliation – statutory and underlying
Financials For personal use only Reconciliation – statutory and underlying 1H10 1H09 $ million $ million Change Statutory result Revenue 495.9 490.0 1% EBITDA 244.3 238.2 3% Profit (after significant items) 63.6 18.0 254% Underlying result Revenue 498.0 500.7 (1)% EBITDA 246.3 248.8 (1)% Profit 64.3
Slide 29: Total committed debt facilities
Financials For personal use only Total committed debt facilities (as at 31 December 2009) Facility Facility amount Tenor 2008 Bilateral borrowings 1 $165 million July 2011 2009 Bilateral borrowing 2 $150 million August 2014 2007 Syndicated facility 2 $900 million June 2012 2009 Syndicated facility 3
Slide 30: Regulatory update
Regulatory update For personal use only APA’s major price regulated assets Regulatory resets over the next five years Regulatory resets are spread out over five years, with on average one reset per year – Next major asset reset ‐ Goldfields Gas Pipeline Revised Access Arrangement (AA) for the Gold
Slide 31: APA asset and investment portfolio
APA asset and investment portfolio For personal use only 1H10 Result Presentation Æ 30
Slide 32: 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 33: For further information contact
For personal use only For further information contact Chris Kotsaris Delivering Australia’s energy Investor Relations, APA Group Tel: +61 2 9693 0049 E‐mail: chris.kotsaris@apa.com.au or visit APA’s website www.apa.com.au 1H10 Result Presentation Æ 32