Apa Group · ASX:APA
Apa — FY2020 Earnings Presentation
27 slides from Apa's earnings presentation, Aug 26, 2020
Slide 1: Financial results year ended 30 June 2020
financial results year ended 30 June 2020. 26 August 2020
Slide 2: 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
Slide 3: Results overview
Celebrating years results overview Rob Wheals CEO & Managing Director
Slide 4: FY2020 highlights – sound results
FY2020 highlights – sound results $ million FY2020 FY2019 change Statutory results Revenue excluding pass-through(1) 2,129.5 2,031.0 Up 4.8% EBITDA 1,653.9 1,573.8 Up 5.1% Net profit after tax 317.1 288.0 Up 10.1% Operating cash flow(2) 1,095.9 1,012.1 Up 8.3% Operating cash flow per security (cents
Slide 5: COVID-19 Impact & response
COVID-19 Impact & response Impact of COVID-19 APA’s Crisis Management Team activated in March 2020: • Liaise with regulators, government • Pivotal part of essential service supply agencies, industry groups, customers chain and suppliers • Customers first: • Ensure ongoing provision of reliable – Tar
Slide 6: Orbost Gas Processing Plant – Transition Agreement
Orbost Gas Processing Plant – Transition Agreement • APA and Cooper jointly focused on Orbost Gas Processing Plant, VIC completing the plant to deliver additional gas supply to the market • Aligns goals between the parties to maximise stable processing capacity • Provides for the sharing of costs an
Slide 7: Strategic Imperative highlights (1/4) customer centric
Strategic Imperative highlights (1/4) customer centric APA made progress in the journey to put customers at the centre through our Red Dot program and collaborating with Energy Charter signatories across the energy supply chain Red Dot Program Energy Charter • Customer Promise launched • APA first E
Slide 8: Strategic Imperative highlights (2/4) operational excellence
Strategic Imperative highlights (2/4) operational excellence (safety & sustainability) ✓ 99.9% gas Health and safety Sustainability nomination • FY2020 TRIFR result 9.09 • Developing a Sustainability delivery Roadmap, including a Climate ability to Change Management Plan respond to customer • Publis
Slide 9: Strategic Imperative highlights (3/4) growth & innovation
Strategic Imperative highlights (3/4) growth & innovation Growth Darling Downs Solar Farm, QLD • $1.7 billion plus growth capex FY2017 – FY2020 • $288 million growth capex in FY2020 • +5.1% EBITDA growth in FY2020 Contributing assets include: – Darling Downs Solar Farm (QLD) – Badgingarra Wind & Sol
Slide 10: Strategic Imperative highlights (4/4)
Strategic Imperative highlights (4/4) Financial Stakeholder People & Strength Relationships Culture +8.3% OCF/security Stakeholder engagement New operating model to 92.9 cents per security AGP & RBP regulatory clarity of roles processes Ample liquidity Agile response cash & committed undrawn Regulat
Slide 11: Financial performance
Celebrating years financial performance Peter Fredricson Chief Financial Officer
Slide 12: Summary results
summary results $ million FY2020 FY2019 Change APA made the following Revenue excluding contributions to the 2,129.5 2,031.0 4.8% pass-through(1) broader economy EBITDA 1,653.9 1,573.8 5.1% during FY2020: Depreciation and amortisation (651.6) (611.4) (6.6%) • $1,102 million EBIT 1,002.4 962.4 4.2% p
Slide 13: FY2020 result: EBITDA by business segment
FY2020 result: EBITDA by business segment % of FY20 $ million FY2020 FY2019 Change EBITDA(1) Energy Infrastructure Queensland 1,007.9 1,010.1 (0.2%) 58.3% New South Wales 160.8 149.4 7.6% 9.3% Victoria & South Australia 104.2 116.0 (10.2%) 6.0% Northern Territory 19.9 19.2 3.7% 1.2% Western Australi
Slide 14: FY2020 EBITDA bridge
FY2020 EBITDA bridge Energy Infrastructure A$m 14
Slide 15: Low risk business model
low risk business model Energy Infrastructure revenue split • APA has robust risk management By revenue type processes in place Capacity charge revenue: 79.1% Capacity charge revenue: 79.1% • Manage counterparty risks by: Regulated revenue: 8.0% Regulated revenue: 8.0% − Diversification of customer
Slide 16: Capital expenditure
capital expenditure $ million FY2020 FY2019 • FY20 Growth capex $287.7m Growth capex • Over $1.7b invested in growth capex projects FY17-FY20 Regulated 46.5 30.6 Non-regulated • 5-10 year average capex has been $300 m-$400 m p.a. East Coast 207.4 208.6 • Stay-in-business capex increased to $109.5 m
Slide 17: Capital management
capital management • Credit ratings: S&P BBB (outlook Stable, affirmed Feb 2020) Moody’s Baa2 (outlook Stable, affirmed Feb 2020) • Strong credit metrics provide balance sheet flexibility • All outstanding debt is fully hedged into fixed interest rates out to FY2035 • Issued €600 million (A$1,017.8
Slide 18: Fully covered distributions
fully covered distributions • FY2020 distribution payout ratio(1) of 53.8% Franking Credits • Components for FY2020 final distribution: • $85.3 million tax payable for FY2020 8.53 APT profit distribution 3.66 Franking credits (FY2019: $71.8 million) 11.74 APT capital distribution • FY2020 effective
Slide 19: Outlook & strategy
Celebrating years outlook & strategy Rob Wheals CEO & Managing Director
Slide 20: Long-term success driven by fundamentals
Long-term success driven by fundamentals • Growth in global energy demand • Resilience of our low risk business model through economic cycles • Portfolio of high-quality long-life assets • Strong skills and capability to navigate a constantly changing environment • Operational and safety excellence
Slide 21: Strategy remains relevant for energy transformation
Strategy remains relevant for energy transformation Demand for energy will continue. • Deliver services our customers value Energy transformation is underway – requires a holistic consistent with APA’s Customer Promise response. • Continue to strengthen asset and stakeholder management, development
Slide 22: A spectrum full of business opportunity for APA
A spectrum full of business opportunity for APA low decarbonisation Illustrative deep decarbonisation $ Alternative Policy approaches $$$$$$$ lowest investment highest investment Technology Transition Partial decarbonisation Net zero carbon Status quo decarbonisation (~50% by 2050) (~100% by 2050) (
Slide 23: Growth opportunities & progress
growth opportunities & progress ENERGY NORTH EAST WEST FUTURE AMERICA “connect to “demand” “lower carbon” “core skillset” supply” - renewables - target regulated - firming power LDC / contracted - connection to - new infrastructure - new technologies gas transmission new gas supplies for new project
Slide 24: Executive leadership team - finalised
Executive leadership team - finalised APA’s New Operating Model Corporate Functions: Govern & Support Business Units: Execution People, Governance North Transformation Strategy & Infrastructure Safety & Finance & External Operations & Technology Commercial Development America Culture Affairs Elise P
Slide 25: Summary
summary FY2020 – a solid result • EBITDA up 5.1% • Operating cash flow up 8.3% • Growth capital expenditure continued - $287.7 million • Distribution of 50 cps, up 6.4%, plus 7.31 cps franking credits FY2021 Outlook • FY21 EBITDA guidance – $1,625 million to $1,665 million • FY21 Net interest cost -
Slide 26: APA's uniquely integrated energy infrastructure
APA’s uniquely integrated energy infrastructure Assets and Investments Glossary AGPGLOS Amadeus Gas Pipeline Darwin AL Agnew Lateral WPP BGP Bonaparte Gas Pipeline 734 PJ BGP BWSF Badgingarra Wind and Solar Farms BWP Berwyndale Wallumbilla Pipeline 16,830 PJ CGP Carpentaria Gas Pipeline CRP Central
Slide 27: For further information contact
For further information contact: Jennifer Blake Head of Investor Relations Tel: +61 2 9693 0097 / +61 455 071 006 E-mail: [email protected] Or visit the APA website at: www.apa.com.au 27