Apa Group · ASX:APA
Apa — Shareholder Meeting (October 2017)
46 slides from Apa's shareholder meeting presentation, Oct 27, 2017
Slide 1: Annual Meeting Presentation ASX Announcement
Australian Pipeline Ltd ACN 091 344 704 | Australian Pipeline Trust ARSN 091 678 778 | APT Investment Trust ARSN 115 585 441 Level 25, 580 George Street Sydney NSW 2000 | PO Box R41 Royal Exchange NSW 1225 Phone +61 2 9693 0000 | Fax +61 2 9693 0093 APA Group | apa.com.au 27 October 2017 ASX ANNOUNC
Slide 2: Address by Chairman, Len Bleasel AM
APA Group 2016 Annual Meeting 27 October 2017 For personal use only Address by Chairman, Len Bleasel AM Ladies and gentlemen, I am pleased to present another solid year of results for APA. Our strategy and proactive approach to growth and innovation, combined with prudent management of the business
Slide 3: Chairman's address: distributions, franking and TSR
As APA paid around $20 million in tax during the period, Securityholders also benefitted from an enhancement of that distribution payout of 4 cents per security in franking credits over the full year. We expect to be in a similar tax For personal use only paying position this financial year and ther
Slide 4: Australia's energy market dynamics
Australia’s energy predicament and rising power bills have certainly been in the media and political spotlight over the last year. Several factors have contributed to the new dynamics in Australia’s energy sector. These include blackouts in For personal use only South Australia; the tripling of gas
Slide 5: Chairman's address: sustainable business and North America
To-date, we have built a business that is solid and sustainable and one that the Board and APA’s employees are very proud to be a part of. From having an appropriately structured balance sheet and risk framework, to using our in-house For personal use only operational and development expertise to de
Slide 6: Corporate governance framework and remuneration
The Board adopted a new Corporate Governance Framework as at 1 July 2017 which is available on APA’s website, and hopefully you’ve had a chance to look at it. The full details of additional entitlements for Securityholders in relation to For personal use only governance and remuneration matters are
Slide 7: Energy policy and prices
Most Australian’s are wondering how we got to this situation of paying some of the highest energy prices in the world. We live in the lucky country which is blessed with an abundance of natural energy resources, a robust economy and For personal use only a generally stable political environment, exc
Slide 8: Gas prices and pipeline tariffs
While gas prices have increased dramatically recently, pipeline tariffs haven’t. Gas transmission charges account for only 5-10% of the delivered price of gas for residential consumers. So, the allegation that transport tariffs are to blame for For personal use only the increase in gas prices on the
Slide 9: Asset additions and interconnected portfolio
We continue to add strategically important assets and expansions to our portfolio as we invest to assist our customers in getting energy to their customers and encouraging new gas supply development. For personal use only During the financial year, our earnings were boosted by full year contribution
Slide 10: Growth projects and capex outlook
Firstly you’ll see they are spread across several areas of our expertise - pipelines, renewables and mid-stream processing. These are all now core skills of APA. Secondly you can see they are all long term contracts with customers that are For personal use only well known to APA and are highly credi
Slide 11: Supply projects: Narrabri and Northern Queensland Pipeline
Narrabri isn’t the only project with the potential to substantially increase supply to the eastern market. APA recently announced agreements to work with gas producers in both the Bowen and Galilee Basins in Queensland for the development of gas reserves and resources equating to roughly 10 years of
Slide 12: Renewable energy precinct and company values
The Emu Downs Solar Farm and Badgingarra Wind Farm sites are adjacent to our existing 80MW Emu Downs Wind Farm, creating a 230MW renewable energy precinct. All three sites will share infrastructure and operational resources. They For personal use only complement each other in the fact that when the
Slide 13: Closing remarks
As I conclude my address, I would like to thank APA’s investor’s for your continued support of our business. APA has achieved a lot, but there is certainly more to do given the changing energy environment. I look forward to leading For personal use only our team of 1,600 committed employees to ensur
Slide 14: APA Group October 2017
For personal use only APA Group 27 October 2017.
Slide 15: Disclaimer
disclaimer This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) as 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 The information in this presentation does not conta
Slide 16: APA Group Chairman Leonard Bleasel AM
APA Group Chairman For personal use only Leonard Bleasel AM 3
Slide 17: APA Group Board
APA Group Board For personal use only Mick McCormack Steve Crane John Fletcher Russell Higgins AO Managing Director Patricia McKenzie Michael Fraser Debbie Goodin 4
Slide 18: APA Group senior management
APA Group senior management For personal use only Peter Fredricson Ross Gersbach Sam Pearce Rob Wheals Kevin Lester Elise Manns Nevenka Codevelle Company Secretary & General Counsel 5
Slide 19: Minutes of last meeting October 2016
For personal use only minutes of last meeting 26 October 2016.
Slide 20: Agenda annual meeting 2017
agenda annual meeting 2017. For personal use only Chairman’s address Managing Director’s address Formal business General business Meeting close
Slide 21: Chairman's address
Chairman’s address For personal use only Victorian-Northern Interconnect Expansion Project completed in FY2017
Slide 22: FY2017 results
FY2017 results For personal use only FY2017 change Statutory results Revenue excluding pass-through(1) $1,888.3 m Up 14.0% EBITDA $1,470.1 m Up 10.5% Net profit after tax $236.8 m Up 32.0% Operating cash flow(2) $973.9 m Up 12.9% Operating cash flow per security 87.4 c Up 12.9% Distributions Distrib
Slide 23: Sustainable distribution growth
sustainable distribution growth • FY2017 distribution payout ratio(1) of 49.8% 18.2% For personal use only 1750 compound APA total securityholder return annual 1500 growth rate • Components for FY17 distribution: S&P/ASX 200 accumulation index Since listing 1250 15.05 cents APT profit distribution 1
Slide 24: APA strategy – connecting Australia to its energy future
APA strategy – connecting Australia to its energy future For personal use only $1.2bn of new projects announced • New supply to the dynamic east coast gas market: — Reedy Creek Wallumbilla Pipeline — Orbost Gas Processing Plant • Renewable energy portfolio: — Emu Downs Solar Farm — Badgingarra Wind
Slide 25: FY2018 outlook
FY2018 outlook For personal use only • Based on current operating plans and available $1,475m to information, EBITDA for FY2018 is expected to be $1,510m within a range of $1,475 million to $1,510 million $1,470.1m • Net interest costs for FY2018 expected within a ~2% growth range of $525 million to
Slide 26: Good governance practice
good governance practice As at 1 July 2017 APA adopted a corporate governance framework which is designed to be as For personal use only consistent, as far as is practicable, with the best practice procedures of public listed companies Advisory vote at each Annual Meeting on the Remuneration Report
Slide 27: Managing Director's address
Managing Director’s address For personal use only Update Emu Downs Solar Farm in WA, under construction
Slide 28: Dynamic energy markets
dynamic energy markets For personal use only • Finkel Report (June 2017) noted that: ― Gas can support variable renewable electricity generation and also contribute to emissions reduction as replacement for ageing coal-fired generation fleet ― State governments should adopt evidence based regulatory
Slide 29: FY2017 achievements
FY2017 achievements Existing assets For personal use only • Full year contribution from DPS and Ethane Pipeline acquisitions • Full year contribution from Eastern Goldfields Pipeline • Bi-directional and multi-asset, flexible services to meet customer needs • Capacity augmentation — VNI expansion co
Slide 30: Growth projects – $1.2bn announced in FY2017
growth projects – $1.2bn announced in FY2017 • $200m in incremental revenue to be delivered in FY20 through new projects For personal use only Capex Pipeline projects Renewables projects Midstream projects Projects FY17 1H FY18 2H FY18 1H FY19 2H FY19 1H FY20 2H FY20 Customer FY17 (incl. VNIE, excl.
Slide 31: FY2018 projects – East Coast Grid
FY2018 projects – East Coast Grid • Leveraging the unique capabilities of APA’s East Coast Grid For personal use only Reedy Creek Wallumbilla Pipeline Project description: Domestic gas implications: • 50km, 300TJ/day bi-directional pipeline • APLNG able to participate flexibly • $80m construction co
Slide 32: APA's unique power offering
APA’s unique power offering Emu Downs Solar Farm For personal use only Project description: APA’s unique offering: • 20MW solar farm • Adjacent to Emu Downs Wind Farm and Badgingarra Wind • $50m cost, incl $5.5m funding via Farm ARENA grant • Commissioning expected Jan 2018 • Shared infrastructure •
Slide 33: Sustainability – here for the long term
Sustainability – here for the long term Our Values – STARS Our Decision Compass For personal use only the APA Way 40 34.3 2 TRIFR(1) LTIFR(2) 1.06 20 1 0.8 10.41 0.64 0.52 8.11 7.5 0 0 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Notes: (1) Total reportable injury frequency rate (TRIFR) is measured as th
Slide 34: Formal business
Formal business For personal use only Orbost Gas Processing Plant, VIC
Slide 35: Registration and voting
registration and voting For personal use only Yellow card - person entitled to vote Red card - non-voting member Blue card - visitor and non-voting 22
Slide 36: Ordinary Resolutions
Ordinary Resolutions For personal use only • Resolution 1: Adoption of the Remuneration Report • Resolution 2: Nomination of Patricia McKenzie for re-election as a Director • Resolution 3: Nomination of Michael Fraser for re-election as a Director 23
Slide 37: Resolution: Adoption of the Remuneration Report
Resolution 1 For personal use only Adoption of the Remuneration Report 24
Slide 38: Adoption of FY2017 Remuneration Report votes
Resolution 1 For personal use only Adoption of FY2017 Remuneration Report Valid available proxy votes received: for open against abstain* 653,304,688 11,304,429 15,815,761 6,452,253 96.01% 1.66% 2.32% - * votes by a person who abstains on an item are not counted in calculating the required major
Slide 39: Ordinary Resolutions
Ordinary Resolutions 2 and 3 For personal use only • Resolution 2: Nomination of Patricia McKenzie for re-election as a Director • Resolution 3: Nomination of Michael Fraser for re-election as a Director 26
Slide 40: Nomination of Patricia McKenzie for re-election
Resolution 2 For personal use only Nomination of Patricia McKenzie for re-election as a Director 27
Slide 41: Patricia McKenzie re-election votes
Resolution 2 For personal use only Nomination of Patricia McKenzie for re-election as a Director Valid available proxy votes received: for open against abstain* 672,187,969 11,795,348 1,432,937 2,218,400 98.07% 1.72% 0.21% - * votes by a person who abstains on an item are not counted in calculat
Slide 42: Nomination of Michael Fraser for re-election
Resolution 3 For personal use only Nomination of Michael Fraser for re-election as a Director 29
Slide 43: Michael Fraser re-election votes
Resolution 3 For personal use only Nomination of Michael Fraser for re-election as a Director Valid available proxy votes received: for open against abstain* 629,939,891 11,799,283 42,433,844 3,461,586 92.07% 1.72% 6.20% - * votes by a person who abstains on an item are not counted in calculatin
Slide 44: Voting and proxy votes
voting and proxy votes Yellow card Red card Blue card For personal use only Person entitled to vote Non-voting member Visitor and non-voting for open against abstain* Resolution 1 653,304,688 11,304,429 15,815,761 6,452,253 Adoption of the Remuneration Report 96.01% 1.66% 2.32% - Resolution 2 672,18
Slide 45: General business
General business For personal use only Expansion of the Victorian Northern Interconnect was completed in FY2017. Simon Heath, Lead E&I Drafter, provided electrical support during the construction of the Young Pressure Reduction Station, part of the VNIE project.
Slide 46: For more information visit www.apa.com.au
For personal use only for more information visit www.apa.com.au