Apa Group · ASX:APA
Apa — Macquarie Australia Conference 2012
21 slides from Apa's conference presentation, May 2, 2012
Slide 1: ASX Release cover letter
For personal use only ASX RELEASE 2 May 2012 The Manager ASX Market Announcements 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: • Presentation – Gro
Slide 2: Growth over the long term
For personal use only Growth over the long term Ross Gersbach Chief Executive Strategy and Development Macquarie Australia Conference 2 May 2012
Slide 3: Disclaimer
Disclaimer For personal use only 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). Summary information: This presentation contains su
Slide 4: APA – well positioned in a growing industry
APA – well positioned in a growing industry Australia’s largest natural gas pipeline owners For personal use only Unrivalled gas asset footprint – Largest transporter of natural gas across Australia DUET 1,480 km – 80% Dampier Bunbury Pipeline Singapore 1,800 km – Eastern Gas Pipeline , Queensland
Slide 5: Developing profitable growth opportunities
Developing profitable growth opportunities For personal use only Growth capital expenditure Developing opportunities that enhance the value of APA’s energy infrastructure portfolio Emu Downs Further expansion of APA’s wind farm pipelines to meet growing demand acquisition for gas transportation and
Slide 6: APA's value creating growth
APA’s value creating growth For personal use only Core business growth – optimal gas delivery – Pipeline portfolio extensions – maximising ‘gas source to market’ connections – Pipeline expansions – matching demand with capacity efficiently – Gas storage – balancing supply and demand Further grow
Slide 7: Core growth – pipeline portfolio extension
Core growth – pipeline portfolio extension For personal use only Extending APA’s natural gas pipeline portfolio to optimise connections between gas sources to markets of energy users Pipeline developments – 2008: Bonaparte (NT) Pipeline acquisitions – 2004: Parmelia (WA) – 2006: Gasnet (Vic, WA)
Slide 8: Core growth – pipeline expansions
Core growth – pipeline expansions For personal use only Incremental expansion of pipeline capacity to match demand … a cost efficient approach Process – Understanding customer and market requirements for pipeline service – throughput, peak, pressure, storage, flexibility etc. – Test existing infra
Slide 9: Core growth – pipeline expansions
Core growth – pipeline expansions For personal use only Past and current pipeline expansions are underpinned by contractual or regulatory arrangements, generating secure, long term returns Goldfields Gas Pipeline 3 new compressor stations and compressor upgrades Carpentaria Gas Pipeline New compress
Slide 10: Core growth – gas storage
Core growth – gas storage For personal use only Interconnected gas storage provides for supply and demand balancing, as well as supply security APA’s gas storage infrastructure – Mondarra Gas Storage Facility (Western Australia) – underground gas storage (depleted gas reservoir) connected to Parme
Slide 11: Mondarra Gas Storage Facility expansion
Mondarra Gas Storage Facility expansion For personal use only Drivers for expansion Increasing demand for gas storage services for downstream Western Australian market – Power generation and peak gas supply Recent gas supply interruptions highlighted vulnerability of supply – Gas storage capacit
Slide 12: Further growth – energy investments
Further growth – energy investments For personal use only APA’s energy investments leverage internal capability, both people and systems Minority equity stakes in secure, relatively low growth energy infrastructure assets and businesses, together with Long term operating agreements – mix of asset
Slide 13: Further growth – energy developments
Further growth – energy developments For personal use only Developing energy infrastructure that leverages APA’s existing infrastructure Power generation that enhances or protect APA’s infrastructure Providing customers with a suite of services Maintaining APA’s risk profile – long term secure
Slide 14: Emu Downs wind farm
Emu Downs wind farm For personal use only Acquired at attractive multiples – FY12 EBITDA multiple of approx. 8.5 times – Includes 130 MW wind farm development rights on an adjacent site Delivering secure earnings – Long term revenue contracts for black and green products from the existing wind f
Slide 15: Providing total energy solution
Providing total energy solution For personal use only Wind generation and gas fired generation linkage – Variability in wind generation production supplemented with gas peaking generation – Essential in Western Australian market – Provides an opportunity for gas‐fired peaking generation to be deve
Slide 16: Diamantina Power Station – a win-win solution
Diamantina Power Station – a win‐win solution For personal use only An APA and AGL Energy power generation development to supply energy users in Mt Isa and surrounding regions Energy efficient – 242 MW combined cycle plant, with high energy efficiency of 55% (compared with 35% for coal fired) – Lo
Slide 17: Investment considerations and criteria
Investment considerations and criteria For personal use only Strategic – core asset versus leverage opportunity – Ownership percentage depends on the strategic nature of the asset and the ability to extract synergies with APA’s asset footprint Economic – returns appropriate to risk – Cash flows
Slide 18: APA growth – creating value for investors
APA growth – creating value for investors For personal use only Total securityholder returns since listing 800 EBITDA TSR of 608%, 500 492 APA total securityholder returns CAGR of 18.0% 700 S&P/ASX 200 accumulation index 400 Utilities accumulation index $ million 300 600 200 500 100 0 400 2001 2002
Slide 19: Conclusion
Conclusion For personal use only APA is well positioned in a growing market – Continuing to expand and enhance our energy infrastructure portfolio across Australia in line with increasing demand for gas and energy Focused growth for the long term – Core business growth – optimal gas delivery – F
Slide 20: APA asset and investment portfolio
APA asset and investment portfolio For personal use only APA: Macquarie Australia Conference, May 2012 19
Slide 21: For further information contact
For personal use only For further information contact Delivering Australia’s energy Chris Kotsaris 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