APA Group · ASX:APA
APA — UBS Emerging Australian Companies Conference (April 2009)
21 slides from APA's conference presentation, Apr 1, 2009
Slide 1: APA Group UBS Emerging Australian Companies Conference
APA Group UBS Emerging Australian Companies Conference Mick McCormack, Managing Director Sydney, 1 April 2009
Slide 2: APA is Australia's leading gas pipeline business
APA is Australia’s leading gas pipeline business Objective Maximise value for securityholders in the short, medium and long term … by growing distributions and operating cash flow Strategy Focus on gas infrastructure assets in Australia’s growing gas market … transmission, storage and distributi
Slide 3: APA's gas infrastructure business
APA’s gas infrastructure business Owner of strategic gas infrastructure across Australia: – More than 12,000 km of gas transmission pipelines – 23,000 km of gas distribution networks and 1.1 million connections (APA and Envestra) Internal management and operation of APA’s wholly and partially ow
Slide 4: APA's strengths
APA’s strengths Unrivalled gas asset footprint - largest gas transporter of natural gas across Australia by pipeline length, capacity and volume Integrated portfolio of gas pipeline assets - providing revenue and operating synergies Attractive growth opportunities – enhancing capacity in APA’s
Slide 5: Solid track record in delivering value
Solid track record in delivering value Revenue (excluding passthrough) EBITDA 500 700 615 450 431 600 400 500 350 Operating cash flow and 300 400 distributions per security $m $m 250 300 200 45 42.7 200 150 100 40 100 50 35 0 0 29.5 30 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 cents 25 Total
Slide 6: Continued strong underlying growth in 1H09
Continued strong underlying growth in 1H09 $ million 1H09 1H08 Change 1 Underlying revenue excluding pass-through 367.7 305.5 K 20% Underlying EBITDA 1 248.8 214.7 K 16% Underlying NPAT 1 56.7 44.7 K 27% Underlying OCF 2 122.8 109.3 K 12% Underlying OCF per security (cents) 25.8 25.0 K 3.3% Interim
Slide 7: Strategic and operational highlights 1H09
Strategic and operational highlights 1H09 Completed the establishment of Energy Infrastructure Investments (EII) – Proceeds in excess of book value – $647 million used to pay down debt – Strong equity partners – Marubeni Corporation and Osaka Gas of Japan – APA continues as asset manager for EII
Slide 8: Capital management
Capital management Strong balance sheet Secure long term debt portfolio Cash and committed undrawn facilities of Refinanced $150 million MTNs in August $710 million at 31 December 2008 2008 (plus additional $15 million debt facility) Gearing* of 69.7% within target range of Repaid $300 milli
Slide 9: APA's quality gas infrastructure portfolio
APA’s quality gas infrastructure portfolio Delivering gas from all major gas production sources to all major gas markets – More than 50% of gas used in Australia is transported through APA’s pipelines Importance of APA pipelines in eastern states – Transporting more than 70% of gas in this regio
Slide 10: Growing demand for gas - power generation
Growing demand for gas - power generation Pipelines primarily sell capacity - gas fired power generation requires pipeline capacity and gas throughput: Baseload Æ volume throughput Peak/intermediate Æ capacity and storage Growth in gas fired power generation Growth in capacity Growth in pipeli
Slide 11: Opportunities in a carbon constrained environment
Opportunities in a carbon constrained environment Implementation of Carbon Pollution Reduction Scheme (CPRS) and expanded Renewable Energy Target (RET) requires significant new generation investments in the next decade. – $33 billion in new generation capacity, including back-up gas fired generati
Slide 12: Integrated pipelines facilitate retail market dynamics
Integrated pipelines facilitate retail market dynamics Small number of retailers across east Australian gas and electricity markets – Three largest retailers (excluding NSW electricity) supply majority of the East Australian retail market Retailers’ gas portfolios are diversified across gas basi
Slide 13: Regulated and contracted revenue
Regulated and contracted revenue Two categories of price regulated assets: (1) Tariffs set by regulation eg Victorian Transmission System (VTS) and APA Gas Network; (2) Tariffs set by regulation but existing contract terms remain Tariffs commercially negotiated for all other pipelines and new ca
Slide 14: Summary
Summary APA continues to deliver value to its securityholders through growth in distributions and operating cash flow Strong focus on capital management Quality portfolio of gas infrastructure assets throughout Australia Attractive growth opportunities with APA’s pipelines serving Australia’
Slide 15: Supplementary information
Supplementary information APA Group
Slide 16: Total committed debt facilities (at December 08)
Total committed debt facilities (at 31 December 08) Facility Facility amount Tenor Medium term notes $300 million March 2009 1 Bilateral borrowings $165 million July 2011 2003 US private placement $496 million 7, 10, 12 and 15 year tranches September 2010, 2013, 2015 and 2018 2 2007 Syndicated facil
Slide 17: Regulatory resets over the next five years
Regulatory resets over the next five years The Carpentaria Gas Pipeline and Moomba Sydney Pipeline are now both Light Regulation pipelines. Murraylink and Directlink assets were sold to EII. The current regulatory revenue arrangements for these electricity transmission assets are due for reset i
Slide 18: APA's assets as at September 2008
APA's ASSETS AS AT SEPTEMBER 2008 LEGEND —— APA Pipelines, —— Envestia Pipelines — Electricity Transmission —— Ethane Pipeline —— State and Territory Boundary [BB APA Gas Network Envestra Distribution Network LNG / Gas Storage Facility Gas Processing Facility / Power Station Capital Cities Point of
Slide 19: Delivering Australia's energy
Delivering Australia’s energy For further information visit APA’s website www.apa.com.au 1H09 Results Presentation Æ 19
Slide 20: Disclaimer
Disclaimer The information contained in this presentation is given without any liability whatsoever to Australian Pipeline Trust or APT Investment Trust or any of its related entities (collectively “APA Group”) or their respective directors or officers, and is not intended to constitute legal, tax o
Slide 21: ASX Release: further information
ASX RELEASE 1 April 2009 For further information please contact: Investor enquiries: Media enquiries: Chris Kotsaris Joanne Collins Investor Relations APA Group Kreab Gavin Anderson Telephone: (02) 9693 0049 Telephone: (02) 9552 8939 Mob: 0402 060 508 Mob: 0423 029 932 Email: [email protected].
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