Apa Group · ASX:APA
Apa — Macquarie Australia Conference 2012
20 slides from Apa's conference presentation, May 2, 2012
Slide 1: Growth over the long term
Growth over the long term Ross Gersbach Chief Executive Strategy and Development Macquarie Australia Conference 2 May 2012
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). Summary information: This presentation contains summary information abou
Slide 3: APA – well positioned in a growing industry
APA – well positioned in a growing industry Australia’s largest natural gas pipeline owners 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 Gas Pipeline , Jemena
Slide 4: Developing profitable growth opportunities
Developing profitable growth opportunities 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 storage services Amade
Slide 5: APA’s value creating growth
APA’s value creating growth 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 growth – optimal asset use
Slide 6: Core growth – pipeline portfolio extension
Core growth – pipeline portfolio extension 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) – 2007: SEA Gas (Vic‐
Slide 7: Core growth – pipeline expansions
Core growth – pipeline expansions 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 infrastructure capacity to
Slide 8: Core growth – pipeline expansions
Core growth – pipeline expansions 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 compressor station $150m compr
Slide 9: Core growth – gas storage
Core growth – gas storage 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 Parmelia Gas Pipeline (APA)
Slide 10: Mondarra Gas Storage Facility expansion
Mondarra Gas Storage Facility expansion 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 capacity will mitigate potent
Slide 11: Further growth – energy investments
Further growth – energy investments 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 management, operations
Slide 12: Further growth – energy developments
Further growth – energy developments 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 revenue contracts R
Slide 13: Emu Downs wind farm
Emu Downs wind farm 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 farm – No commodity pri
Slide 14: Providing total energy solution
Providing total energy solution 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 developed Located adjace
Slide 15: Diamantina Power Station – a win‐win solution
Diamantina Power Station – a win‐win solution 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) – Local generation, with n
Slide 16: Investment considerations and criteria
Investment considerations and criteria 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 over the life of the p
Slide 17: APA growth – creating value for investors
APA growth – creating value for investors 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 2003 2004 2005 2006 20
Slide 18: Conclusion
Conclusion 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 – Further growth – optima
Slide 19: APA asset and investment portfolio
APA asset and investment portfolio APA: Macquarie Australia Conference, May 2012 19
Slide 20: Delivering Australia’s energy
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