Apa Group · ASX:APA
Apa — Shareholder Meeting (October 2006)
38 slides from Apa's shareholder meeting presentation, Oct 30, 2006
Slide 1: Please switch off mobile phones
Please switch off mobile phones for the duration of the meeting 1
Slide 2: Annual Meeting, Sydney, 30 October 2006
Annual Meeting Sydney, 30 October 2006 George Bennett - Chairman Mick McCormack – Managing Director
Slide 3: Directors
Directors George Bennett Russell Higgins Muri Muhammad Robert Wright Mick McCormack 3
Slide 4: Attending
Attending Ms Samantha Lewis - Deloitte Touche Tohmatsu Mr James Graham – Freehills Mr Mark Pistilli – Chang, Pistilli & Simmons Representatives from our Registrars - Link Market Services Limited 4
Slide 5: Registration and Voting
Registration and Voting A person entitled to vote - a yellow card A non-voting member - a red card A visitor - a blue card 5
Slide 6: Information about APA
Information about APA Look at our website - www.pipelinetrust.com.au Look for presentation by our Managing Director posted to our website Contact our unit registry - Link Market Services 6
Slide 7: Motion
Motion “That the Notice of Meeting is taken as being Read” 7
Slide 8: Agenda
Agenda Consider for approval: ¾ Nomination, George Bennett to be elected as a director of Australian Pipeline Limited; and ¾ Institutional Placement made on 6 September 2006; Report to unitholders on our performance and strategy 8
Slide 9: Nomination for Re-election of Director
Item 1 Nomination for Re-election of Director Vote to be conducted by a show of hands 9
Slide 10: Nomination of George Bennett
Item 1 Nomination of George Bennett "Unitholders are asked to consider and, if thought fit, approve the nomination of George Bennett to be elected as a director on the board of Australian Pipeline Limited." 10
Slide 11: Results of Proxy Votes – George Bennett
Item 1 Results of Proxy Votes – George Bennett Resolution For Open Against Abstain 1 30,644,310 7,764,790 257,924 84,694,529 11
Slide 12: Approval of Institutional Placement
Item 2 Approval of Institutional Placement Vote to be conducted by a show of hands 12
Slide 13: Approval of Institutional Placement
Item 2 Approval of Institutional Placement “That the placement of 41,800,000 units to institutional investors described in the explanatory notes to the notice convening this meeting, is approved for the purposes of Listing Rule 7.4." 13
Slide 14: Results of Proxy Votes – Institutional Placement
Item 2 Results of Proxy Votes – Institutional Placement Resolution For Open Against Abstain Disregarded 2 14,617,738 3,471,451 734,927 393,044 99,745,740 14
Slide 15: Agenda
Agenda Financial Highlights Implementing Our Growth Strategy Corporate Activity in Energy Sector Outlook 15
Slide 16: Financial Highlights of FY06
Financial Highlights of FY06 Net profit before significant items - $60.7 million Core revenue growth (excluding pass-through revenue) - $15.3 million or 5.5% on PY; Operational cost savings; Offset by higher interest expense on increased borrowings and tax; Full year distribution increased to 24 cen
Slide 17: Significant Items
Significant Items FY 2006 Pre-Tax Tax After Tax $m $m $m Stress corrosion cracking provision (11.3) 3.4 (7.9) APA Group tax consolidation - 7.5 7.5 benefit Settlement of tariff dispute 3.3 (1.0) 2.3 Total (8.0) 9.9 1.9 FY 2005 Stress corrosion cracking provision (23.5) 7.1 (16.5) APA Group tax conso
Slide 18: Franking Credits
Franking Credits All distributions will be unfranked for at least the next two years due to entry into tax consolidation regime. APA’s goal is to grow distributions by at least CPI annually. 18
Slide 19: Our Growth Strategy
Our Growth Strategy Short, medium and long term strategy is regularly reviewed Core and complementary assets are identified We plan to pursue these when assets come up for sale 19
Slide 20: Implementing our Growth Strategy
Implementing our Growth Strategy Kogan North Murraylink Goldfields Gas k Transmission 20
Slide 21: Implementing our Growth Strategy
Implementing our Growth Strategy Allgas GasNet 21
Slide 22: Northern Gas
Northern Gas Gas supply to eastern Australia remains a critical issue in the next decade CSG is a significant and developing supply option for eastern Australia PNG Project ¾ FEED activities relating to the PNG Pipeline Project being scaled back ¾ APA remains committed to taking a significant and in
Slide 23: Corporate Activity
Corporate Activity AGL/Alinta Merger ¾ APA remain focused on running our business efficiently and profitably and for the benefit of our unitholders Acquisition Strategy ¾ We bid competitively for acquisitions because of our unique business model 23
Slide 24: Pipeline asset map
BONAPARTE GAS PIPELINE (APA) Pipelines Murraylink === == Proposed State and Territory boundry a ey nasa Bl Allgas Distribution System pone sas (rmadeus Gas Gas storage facility (Amadeus Gas Trust) B Gas processing facility Di Capital cities @ Point of interest ROMA TO BRISBANE PIPELINE (APA) GOLDFIE
Slide 25: Financial Results To Date
Financial Results To Date Continues Growth Trend since Listing Net Profit from Recurring Operations CAGR = 14.6% pa $m 70 60 50 40 30 60.7 51.4 41 45 20 37.1 30.7 10 0 2001 2002 2003 2004 2005 2006 25
Slide 26: Managing Director's Presentation
Managing Director’s Presentation Corporate Update A challenging and fulfilling year: ¾ Alinta/AGL ¾ Reinvigorating our growth strategy ¾ Building on our existing gas transmission business ¾ Targeting commercially and strategically appropriate assets Mick McCormack Managing Director Delivering Value
Slide 27: Key Personnel
Key Personnel Rick Francis Stephen Ohl Peter Fox Chief Financial Officer Group General Manager, Operations General Manager, Corporate Development Sandra Dureau Austin James General Counsel/ Company Secretary/ 27 General Manager, Regulatory General Manager, Corporate
Slide 28: Business Model
Business Model Australian Pipeline Trust Unitholders Manager - APA Personnel Controls ®@ Operating Expenditure ® Capital expenditure @ Regulatory affairs m Revenue contracts Benefits of low cost structure returned in full to unitholders Gas transmission Gas distribution Electricity transmission Othe
Slide 29: Implementing Our Growth Strategy: Murraylink
Implementing Our Growth Strategy Murraylink ¾ Links Berri, SA with Red Cliffs, near Mildura, Vic ¾ Low risk asset with fixed revenues to 2013 and beyond ¾ Expertise in managing gas pipelines transferable to underground electricity cables 29
Slide 30: GasNet
GasNet Highly complementary business to APA’s existing asset portfolio Meets APA’s investment criteria and enhances ability to grow securityholder distributions annually Reinforces APA’s position as a leading owner and operator of energy transmission assets in Australia ¾ Strengthens APA’s ability t
Slide 31: GasNet: Significant Synergistic Benefits
GasNet Significant Synergistic Benefits Better use of the NSW/VIC Interconnect ¾ Increased gas throughput ¾ Other opportunities include gas storage services Increased competition of APA’s Moomba to Sydney pipeline with the Eastern Gas Pipeline Greater greenfield opportunities Reduction of operating
Slide 32: Allgas
Allgas Acquisition price of $521m Rapid asset value growth: 8% p.a. over next 5 years Attractive Internal Rate of Return (equity IRR of over 12%) Exceptional fit for APA ¾ Further development of, and value accretion to, APA’s unique Queensland asset suite ¾ APA in-house technical, commercial & regul
Slide 33: Allgas Business
Allgas Allgas Business Comprises of: ¾ Regulated gas distribution networks ¾ Rights relating to Gatton to Gympie pipeline ¾ Moura pipeline A Business That Is Well Understood By APA 33
Slide 34: Allgas Growth Potential
Allgas Growth Potential Residential growth ¾ South east Queensland – Australia’s fastest growing region ¾ Government strategies encourage gas utilisation ¾ Utilisation per household increasing Industrial & commercial growth ¾ Expansion into new geographic areas near Ipswich and on the Sunshine Coast
Slide 35: Sound, Well Diversified Business
Sound, Well Diversified Business Exciting opportunities in both core and complementary businesses. CSG is a significant and developing supply option for eastern Australia Gas supply to eastern Australia remains a critical issue in the next decade PNG Project ¾ FEED activities relating to the PNG Pip
Slide 36: Alinta/AGL
Alinta/AGL AGL’s 25.4% interest in APA transferred to Alinta as part of AGL/Alinta merger Alinta bought 10.25% of APA units recently The Takeovers Panel ordered Alinta to sell the 10.25%, which the Federal Court has upheld ¾ Alinta is appealing now to the Full Federal Court There are restrictions on
Slide 37: The Future
The Future Strong growth path Acquisition and organic development focused Internally managed – no fee leakage Long term value for all unitholders 37
Slide 38: We Deliver Energy
We Deliver Energy www.pipelinetrust.com.au 38