Slide 1: Financial Results Year ended 30 June 2015
For personal use only Financial Results Year ended 30 June 2015 26 August 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: Results overview and strategic highlights
For personal use only Results overview and strategic highlights Mick McCormack Managing Director and CEO APA FY15 Results Presentation 3
Slide 4: Sound financial performance
Sound financial performance $ million 2015 2014 Change For personal use only Statutory results EBITDA 1,269.5 747.3 up 69.9% Net profit after tax 559.9 343.7 up 62.9% Operating cash flow(1) 562.2 431.5 up 30.3% Operating cash flow per security (cents) 56.5 49.8 up 13.5% Normalised results (2) EBITDA
Slide 5: Growth across majority of APA's assets
Growth across majority of APA’s assets For personal use only FY15 highlights Strengthening our capabilities in a dynamic market – Expanding, extending and enhancing our infrastructure Organic growth portfolio – Inter-connecting gas resources to gas markets SWQP & GGP expansions completed – Mai
Slide 6: Developing growth projects across the country
Developing growth projects across the country NT Link feasibility study For personal use only continues GGP expansions Continue to connect completed DPS completed resources to markets by Wallumbilla and working with our Moomba compressions customers Bi-directional capability on SWP and BWP Commi
Slide 7: Wallumbilla Gladstone Pipeline – US$4.6bn acquisition
Wallumbilla Gladstone Pipeline – US$4.6bn acquisition WGP connection to Queensland Curtis Island LNG facility 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 Eas
Slide 8: Victoria – New South Wales Interconnect expansion continues
Victoria – New South Wales Interconnect expansion continues For personal use only Continuous expansion providing an alternate route to Sydney and north for multiple gas basins in offshore Victoria (Otway, Bass, Gippsland) VNI Expansions and bi-directional capabilities allow gas to flow freely fr
Slide 9: East Coast Grid – Australia's gas superhighway
East Coast Grid – Australia’s gas superhighway A gas superhighway offering unprecedented levels of For personal use only service innovation and flexibility: – ~30 gas receipt and ~100 gas delivery points – Storage (in-pipe, LNG) – Multi-asset services – Interruptible haulage and storage services –
Slide 10: NT Link to East Coast Grid - update
NT Link to East Coast Grid - update For personal use only All routes have connection to: Existing APA infrastructure APA’s 7,500 km East Coast Grid APA commissioned feasibility study in Feb 2014 Potential reserves of approximately 240 TCF across 6 basins (Source: NT Government media release
Slide 11: Developing a holistic energy solution in Western Australia
Developing a holistic energy solution in Western Australia For personal use only Solid organic growth in the emerging Perth region energy precinct – Contributions up from Mondarra gas storage facility and Emu Downs wind farm PILBARA PIPELINE SYSTEM Serving mining operations in the Pilbara and Pi
Slide 12: 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 13: Financial performance
For personal use only Financial performance Peter Fredricson Chief Financial Officer APA FY15 Results Presentation 13
Slide 14: Reconciliation – statutory and normalised results
Reconciliation – 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
Slide 15: 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 16: FY15 EBITDA Bridge
FY15 EBITDA Bridge For personal use only $1,269.5m Corporate Costs Energy 11.6% Investments Net operating EBITDA Asset growth from $447.2m Management Energy $109.1m $35.8m $894.8m $821.3m $1.0m $747.3m $769.8m ($19.8m) $697.2m ($73.6m) ($50.1m) $72.5m 11.6% organic growth achieved in FY2015 APA FY15
Slide 17: FY15 Operational summary – Energy Infrastructure
FY15 Operational summary – Energy Infrastructure Expansion of the East Coast Grid capacity and service For personal use only offerings continues: Revenue Split by Contract Type − EBITDA from APA’s East Coast Grid increased by 16.1% prior to inclusion of WGP − WGP financial close reached on 3 June
Slide 18: EBITDA by pipeline
EBITDA by pipeline For personal use only FY15 FY14 FY13 FY12 FY11 -50 50 150 250 350 450 550 650 750 A$ m 850 Wallumbilla Gladstone Pipeline South West Queensland Pipeline Roma Brisbane Pipeline Carpentaria Gas Pipeline Other Qld assets Moomba Sydney Pipeline Victorian Transmission System SESA Amade
Slide 19: FY15 Operational summary – Energy Investments & Asset Management
FY15 Operational summary – Energy Investments & Asset Management For personal use only 80m A$ Asset Management One-off Customer Underlying earnings continue to grow 60 Contributions Reduction in one-off customer contributions for relocating APA infrastructure, however still generate 40 around $1
Slide 20: 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 21: 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 22: 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 23: 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 24: Fully covered distributions
Fully covered distributions For personal use only cents 60 56.0 54.8 51.9 52.6 52.5 50.8 FY15 distribution payout 50 48.2 ratio(1,2) of 68.8% 40 Distribution components: 38.0 38.0 cents profit distribution 35.5 36.3 30 34.4 35.0 nil capital distribution 31.0 32.8 38.0 cents 20 4.8% growth in d
Slide 25: 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$355 million Net interest costs for FY2016 expected within a ra
Slide 26: Outlook
For personal use only Outlook Mick McCormack Managing Director and CEO APA FY15 Results Presentation 26
Slide 27: Connecting gas resources to gas markets
Connecting gas resources to gas markets Darwin For personal use only Organic growth – Capacity expansions, enhancements and new services – New services and more flexible contracts supplement traditional take-or-pay Gladstone Dynamic energy market conditions – Assist customers to manage energy ne
Slide 28: Questions
For personal use only Questions APA FY15 Results Presentation 28
Slide 29: Supplementary information
For personal use only Supplementary information APA FY15 Results Presentation 29
Slide 30: APA Group structure
APA Group structure For personal use only APA is a stapled vehicle comprising two registered managed investment schemes: APA Group Securityholders – Australian Pipeline Trust (ARSN 091 678 778) – APT Investment Trust (ARSN 115 585 441) is a tax pass-through trust Australian Pipeline Limited (ACN
Slide 31: Australia's largest gas pipeline owner by pipeline length, capacity and volume
Australia’s largest gas pipeline owner by pipeline length, capacity and volume For personal use only APA Overview (Ticker: APA AU) A$m Normalised Continuing Business EBITDA(1) Market capitalisation A$9.5 billion (as at 25 August 2015) $1,000m CAGR: 14.8% ASX rank S&P/ASX 50 $800m Moody’s: Baa2 (outl
Slide 32: Maximising value for securityholders
Maximising value for securityholders Total securityholder return since listing For personal use only 1600 1400 TSR: 1,304% TSR CAGR: 19.2% p.a. 1200 1000 800 600 400 200 0 60% Total annual return 47% APA total securityholder returns 40% 33% 30% S&P/ASX 200 accumulation index 24% 28% 22% Utilities ac
Slide 33: 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 34: Balance sheet
Balance sheet For personal use only $ million 30 June 2015 30 Jun 2014 Change Current assets 721.3 203.4 254.7% Property, plant and equipment 8,355.2 5,574.5 49.9% Goodwill and other intangibles 4,696.7 1,321.3 255.5% Other non-current assets 879.7 873.4 0.7% Total Assets 14,652.9 7,972.5 83.8% Curr
Slide 35: Debt facilities
Debt facilities For personal use only Total committed debt facilities at 30 June 2015 Facility Drawn $million(1) amount amount Tenor 2013 Bilateral borrowing 200 0 5 years maturing December 2018 2014 Syndicated facilities (2) 1,100 125 2.25, 3.25 and 5.25 year trances maturing September 2016, 2017 a
Slide 36: For personal use only
For personal use only 36 APA FY15 Results Presentation 36 APA FY15 Results Presentation
Slide 37: 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