Apa Group · ASX:APA

Apa — Shareholder Meeting (October 2017)

45 slides from Apa's shareholder meeting presentation, Oct 27, 2017

  1. Slide 1: APA Group 2017 Annual Meeting

    APA Group 2017 Annual Meeting 27 October 2017 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 has delivered consiste

  2. Slide 2: Chairman's address: distributions and franking credits

    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 paying position this financial year and therefore expect franking

  3. Slide 3: Australia's energy predicament and growth opportunities

    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 South Australia; the tripling of gas demand in eastern Aust

  4. Slide 4: Building a solid and sustainable business

    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 operational and development expertise to deliver energy when and

  5. Slide 5: Address by Managing Director, Mick McCormack

    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 governance and remuneration matters are outlined in the framew

  6. Slide 6: Australia's energy prices and policy planning

    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 a generally stable political environment, except for the occasional

  7. Slide 7: 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 the increase in gas prices on the east coast, just does

  8. Slide 8: Adding strategically important assets and expansions

    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. During the financial year, our earnings were boosted by full year contributions from two assets acqu

  9. Slide 9: Growth projects and capex timing

    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 well known to APA and are highly creditworthy. Most of the p

  10. Slide 10: Northern Queensland Pipeline and gas supply projects

    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

  11. Slide 11: Emu Downs and Badgingarra renewable precinct

    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 complement each other in the fact that when the wind isn’t blowing the

  12. Slide 12: Concluding 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 our team of 1,600 committed employees to ensure your investment cont

  13. Slide 13: APA Group 27 October 2017

    APA Group 2017 27 October 2017.

  14. Slide 14: 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). The information in this presentation does not contain all the information

  15. Slide 15: Leonard Bleasel AM, APA Group Chairman

    APA Group Chairman Leonard Bleasel AM 3

  16. Slide 16: APA Group Board

    APA Group Board Mick McCormack Steve Crane John Fletcher Russell Higgins AO Managing Director Patricia McKenzie Michael Fraser Debbie Goodin 4

  17. Slide 17: APA Group senior management

    APA Group senior management Peter Fredricson Ross Gersbach Sam Pearce Rob Wheals Kevin Lester Elise Manns Nevenka Codevelle Company Secretary & General Counsel 5

  18. Slide 18: Minutes of last meeting

    minutes of last meeting 27 October 2016.

  19. Slide 19: Agenda annual meeting 2017

    agenda annual meeting 2017.  Chairman’s address  Managing Director’s address  Formal business  General business  Meeting close

  20. Slide 20: Chairman's address

    Chairman’s address Victorian-Northern Interconnect Expansion Project completed in FY2017

  21. Slide 21: FY2017 results

    FY2017 results 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 Distributions per security 43

  22. Slide 22: Sustainable distribution growth

    sustainable distribution growth • FY2017 distribution payout ratio(1) of 49.8% 18.2% 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 1000 Utilities accumula

  23. Slide 23: APA strategy – connecting Australia to its energy future

    APA strategy – connecting Australia to its energy future $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 Farm — Darling Downs S

  24. Slide 24: FY2018 outlook

    FY2018 outlook • 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 $535 million • Distri

  25. Slide 25: Good governance practice

    good governance practice As at 1 July 2017 APA adopted a corporate governance framework which is designed to be as 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 Application of the “tw

  26. Slide 26: Managing Director's address

    Managing Director’s address Update Emu Downs Solar Farm in WA, under construction

  27. Slide 27: Dynamic energy markets

    dynamic energy markets • 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 regimes to manage the

  28. Slide 28: FY2017 achievements

    FY2017 achievements Existing assets • 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 completed — Moomba Inter

  29. Slide 29: 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 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. projects listed below

  30. Slide 30: FY2018 projects – East Coast Grid

    FY2018 projects – East Coast Grid • Leveraging the unique capabilities of APA’s East Coast Grid Reedy Creek Wallumbilla Pipeline Project description: Domestic gas implications: • 50km, 300TJ/day bi-directional pipeline • APLNG able to participate flexibly • $80m construction cost and fully in Austra

  31. Slide 31: APA's unique power offering

    APA’s unique power offering Emu Downs Solar Farm 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 • 13 year offtake contr

  32. Slide 32: Sustainability – here for the long term

    Sustainability – here for the long term Our Values – STARS Our Decision Compass 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 the number of lost time

  33. Slide 33: Formal business

    Formal business Orbost Gas Processing Plant, VIC

  34. Slide 34: Registration and voting

    registration and voting Yellow card - person entitled to vote Red card - non-voting member Blue card - visitor and non-voting 22

  35. Slide 35: Ordinary Resolutions

    Ordinary Resolutions • 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

  36. Slide 36: Resolution 1: Adoption of the Remuneration Report

    Resolution 1 Adoption of the Remuneration Report 24

  37. Slide 37: Resolution 1 proxy votes

    Resolution 1  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 majority on a poll 25

  38. Slide 38: Ordinary Resolutions 2 and 3

    Ordinary Resolutions 2 and 3 • 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

  39. Slide 39: Resolution 2: Nomination of Patricia McKenzie

    Resolution 2 Nomination of Patricia McKenzie for re-election as a Director 27

  40. Slide 40: Resolution 2 proxy votes

    Resolution 2  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 calculating the required major

  41. Slide 41: Resolution 3: Nomination of Michael Fraser

    Resolution 3 Nomination of Michael Fraser for re-election as a Director 29

  42. Slide 42: Resolution 3 proxy votes

    Resolution 3  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 calculating the required majorit

  43. Slide 43: Voting and proxy votes

    voting and proxy votes Yellow card Red card Blue card 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 2 672,187,969 11,795,348 1,432

  44. Slide 44: General business

    General business 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.

  45. Slide 45: For more information visit www.apa.com.au

    for more information visit www.apa.com.au

APA Group — Shareholder Meeting (October 2017) on 6ix