Apa Group · ASX:APA
Apa — Macquarie Australia Conference 2023
25 slides from Apa's conference presentation, May 2023
Slide 1: Strengthening communities through responsible energy
Strengthening communities through responsible energy Macquarie Australia Conference May 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by APA Group Limited (ACN 091 344 704) as responsible entity of the estimates. A number of important factors could cause actual results or performance to differ materially from such APA Infrastructure Trust (ARSN 091 678 778) and APA Investment Trust (A
Slide 3: Acknowledgement of Traditional Custodians
In the spirit of reconciliation APA acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present, and extend that respect to all Aboriginal and Torres Strait Islander Peoples today. APA
Slide 4: Building momentum with three priority areas
We are building momentum across the business with a relentless focus on three priority areas Our Operational Creating People Excellence Value APA Macquarie Conference May 2023 4
Slide 5: APA's strategy: partner of choice for energy transition infrastructure solutions
APA’s strategy is to be the partner of choice in delivering infrastructure solutions for the energy transition Contracted An effective transition Renewables requires energy that is and Firming Electricity Transmission Reliable We are supporting Australia’s energy transition through investment in Gas
Slide 6: Creating value as the partner of choice for the energy transition
Creating value as the partner of choice, delivering infrastructure solutions for the energy transition A customer-focused strategy… Resource Energy Supply Large Commercial Government Industry and Wholesale and Industrial …meeting the needs of our customers where we have a competitive advantage… → Re
Slide 7: Opportunities in resource intensive areas via bundled solutions
Attractive opportunities in resource intensive areas via bundled solutions facilitating decarbonisation efforts $25bn $20bn 81% Contracted VRE and Gas pipelines and Of companies in the Firming – Off grid CO2 Transmission Metals and Mining sector Customer Drivers have a scope 1 & 2 net zero target1 M
Slide 8: A trusted partner that can bundle solutions
A trusted partner that can bundle solutions to facilitate reliable, affordable and lower emissions energy Variable renewable energy Indicative microgrid structure Gas-powered generation supported by battery storage Mining site End user APA Macquarie Conference May 2023 8
Slide 9: Case studies | Gruyere and Mount Isa
Case studies | Gruyere and Mount Isa Completed project Current project Gruyere Gold Mine Hybrid Power Station ~$218m Queensland North West Power System >$1bn invested invested 13MW 4.4MW 88MW Transmission solar capacity BESS solar capacity 64MW 198km 324MW Lateral gas gas power gas gas power pipelin
Slide 10: Opportunities in electricity transmission via renewable energy zones
Attractive opportunities in electricity transmission via renewable energy zones 125 GW 35 REZs $50bn+ REZ development 2049-50 Renewable Energy Zones Additional VRE Shortlisted across New transmission Step Change scenario1 capacity by 20502 eastern Australia3 investment4 REZ are resource areas for cl
Slide 11: Eastern Australia has significantly more coal generation than other regions
Eastern Australia has significantly more coal generation compared to more progressed regions where gas plays a key role in firming renewables 100% Other 4% 3% 3% Nuclear 21% 15% Renewables Hydro 32% 80% Coal 33% Gas 8% 66% 38% 60% 15% 38% 2% 40% 2% 67% 46% 20% 40% 33% 30% 4% Eastern Australia1 Weste
Slide 12: Net Zero Australia study confirms need to increase gas power
Future energy The Net Zero Australia1 study confirms the need to materially increase gas power capacity to support the energy transition → Ensuring system security will require a variety of technologies. All scenarios determine a need to increase gas fired power generation. A majority of the scenari
Slide 13: Gas supply is essential to reliability and affordability
Gas supply is essential to ensure our energy system maximises reliability and affordability over the transition UK electricity prices day ahead baseload contracts – monthly average3 Monthly average (GBP/MWh) 400 350 300 250 Jan-Dec 21 200 +189% 150 100 Commencement 50 of Russia-Ukraine conflict Jan
Slide 14: APA's defensive characteristics provide a solid foundation
APA's defensive characteristics provide a solid foundation to play a significant role in Australia's energy transition Contracts provide revenue certainty1,2 Diversification of customers and industry exposures1,2 4% 3% 11% 8% 1% 25% Energy Capacity charge revenue Utility ~87% Regulated revenue Diver
Slide 15: Closing Remarks
Closing Remarks We have a clear strategy which is We have a proven track record in We are well positioned to partner with customer driven across four primary developing and operating energy government to support Renewable asset classes infrastructure Energy Zones We have experience delivering The ma
Slide 16: Q&A Session
Q&A Session APA Macquarie Conference May 2023 16
Slide 17: Appendix
Appendix APA Macquarie Conference May 2023 17
Slide 18: APA is well positioned to benefit from rising inflation
APA is well positioned to benefit from rising inflation Revenue Drawn debt EBITDA Majority of APA’s revenue is indexed to inflation1 Fully hedged/fixed with average maturity of 6.2 yrs2 High EBITDA margins3 EBITDA as % of revenue CPI linked revenue Drawn debt hedged or fixed at 31 Dec 2022 Costs as
Slide 19: A leading Australian energy infrastructure business
APA is a leading Australian energy infrastructure business playing a key role in the transition of Australia's energy system Delivering secure, reliable and affordable energy Diverse energy infrastructure portfolio • Operating critical infrastructure to deliver energy to residential and commercial u
Slide 20: Existing APA operational footprint
Existing APA operational footprint diversified across a range of energy infrastructure assets APA Macquarie Conference May 2023 20
Slide 21: Group structure
Group Structure Group structure APA Infrastructure Trust APA Investment Trust (APA Infra) (APA Invest) • APA Group is listed as a stapled structure on the Australian APA Group Limited Securities Exchange (ASX:APA) (Responsible Entity) • APA is comprised of two registered managed investment schemes:
Slide 22: 5 year normalised financials
5 year normalised financials Financial Performance 1H23 1H22 FY22 FY21 FY20 FY19 FY18 Revenue $m 1,498.9 1,384.4 2,732.4 2,605.3 2,590.6 2,452.2 2,386.7 Revenue excluding pass-through(1) $m 1,231.9 1,117.7 2,236.6 2,144.5 2,129.5 2,031.0 1,941.4 Underlying EBITDA(2) $m 878.9 857.7 1,692.3 1,628.8 1,
Slide 23: Sources for market size (slide 6)
Sources for market size (slide 6) • Off-grid Firming – APA analysis including reference to AECOM’s Australia’s Off-grid Clean Energy Market Report, https://arena.gov.au/knowledge- bank/australias-off-grid-clean-energy-market-research-paper/ • Gas Firming & Contracted VRE On-grid – APA analysis of AE
Slide 24: Thank you
Thank you APA Macquarie Conference May 2023 24
Slide 25: For further information
For further information Andrew Gibson General Manager, Investor Relations M: +61 437 169 292 E: andrew.gibson@apa.com.au www.apa.com.au