Connecting markets
creating
opportunities

APA GRoup ANNUAL REVIEW AND
SUSTAINABILITY REPORT
2015

  • $9.2B

    MARKET CAPITALISATION

    as at 30 JUN 2015

    +59.5%

    as at 30 JUN 2015

  • $US4.6B

    (AUD$6B) AUSTRALIA'S
    LARGEST PIPELINE
    ACQUISITION

  • 28,535

    NEW NETWORK
    GAS CONNECTIONS

  • 38.0¢

    FY2015 TOTAL
    DISTRIBUTION PER
    SECURITY

  • $ 821.3M

    NORMALISED EBITDA
    CONTINUING BUSINESS

    +18% year-on-year
    and in-line with
    FY2015 guidance

BUSINESS PERFORMANCE (NORMALISED1)

EBITDA ($M)

2015

822.3

2014

747.3

2013

661.9 2

2012

535.5

2011

489.6

OPERATING CASH FLOW ($M) 3

2015

545.0

2014

439.7

2013

432.6

2012

335.6

2011

290.0

TOTAL ASSETS ($M)

2015

14,652.9

2014

7,972.5

2013

7,698.9

2012

5,496.1

2011

5,427.6

REVENUE EXCLUDING
PASS-THROUGH ($M)4

2015

1,119.2

2014

992.5

2013

919.5

2012

758.0

2011

720.3

OPERATING CASH FLOW
PER SECURITY (CENTS)5

2015

54.8

2014

50.8

2013

56.0

2012

52.5

2011

52.6

DISTRIBUTIONS
PER SECURITY (CENTS)

2015

38.0

2014

36.3

2013

35.5

2012

35.0

2011

34.4
FINANCIAL RESULTS 2015 Normalised1 $ million 2014 Normalised1 $ million Change Normalised1 % 2015 Statutory $ million 2014 Statutory $ million Change Statutory %
Revenue 1,553.6 1,396.0 11.3 1,553.6 1,396.0 11.3
Revenue excluding pass-through 4 1,119.2 992.5 12.8 1,119.2 992.5 12.8
EBITDA 822.3 747.3 10.0 1,269.5 747.3 69.9
Profit after tax and non-controlling interests 203.9 199.6 2.1 559.9 343.7 62.9
Operating cash flow 3 545.0 439.7 23.9 562.2 431.5 30.3
FINANCIAL POSITION            
Total assets 14,652.9 7,972.5 83.8 14,652.9 7,972.5 83.8
Total drawn debt 6 8,642.8 4,789.4 80.5 8,642.8 4,789.4 80.5
Total Equity 4,382.7 2,496.5 75.6 4,382.7 2,496.5 75.6
FINANCIAL RATIOS            
Operating cash flow per security (cents) 5 54.8 50.8 7.9 56.5 49.8 13.5
Earnings per security (cents) 5 20.5 23.1 (11.3) 56.3 39.7 41.8
Distribution per security (cents) 38.0 36.3 4.8 38.0 36.3 4.8
Distribution payout ratio(%) 7 68.8 68.9 66.7 70.2
Gearing(net debt plus equity)(%) 63.4 64.2
Interest cover ratio (times) 2.6 2.3

Notes: Numbers in the table may not add up due to rounding.

  • Normalised financial results exclude significant items.
  • The balances for June 2013 have been restated for the effect of applying AASB 119: 'Employee Benefits'.
  • Operating cash flow = net cash from operations after interest and tax payments.
  • Pass-through revenue is revenue on which no margin is earned. Pass-through revenue arises in the asset management operations in respect of costs incurred in, and passed on to Australian Gas Networks Limited ("AGN", formerly Envestra Limited) and GDI in respect of, the operation of the AGN and GDI assets respectively.
  • Between 23 December 2014 and 28 January 2015, APA issued a total of 278,556,562 new ordinary securities, resulting in total securities on issue as at 30 June 2015 of 1,114,307,369. The issue was offered at $6.60 per security, a discount to APA's closing market price of $7.67 per security on 9 December 2014, the last trading day before the record date of the entitlement offer of 15 December 2014. The weighted average number of securities for the current and prior period (FY2014) has been adjusted in accordance with the accounting principles of AASB 133: 'Earnings per Share', for the discounted rights issue.
  • APA's liability to repay debt at relevant due dates of the drawn facilities. This amount represents current and non-current borrowings as per balance sheet and is adjusted for deferred borrowing costs, the effect of unwinding of discount, unrealised foreign exchange differences reported in equity and deducting other financial liabilities that are reported as part of borrowings in the balance sheet.
  • Distribution payout ratio = total distribution payments as a percentage of normalised operating cash flow.

MORE GROWTH
IN THE PIPELINE
2016 - BEYOND

15 Years
of growth

We only look forward at APA as to what opportunities for growth lay ahead, never resting on our laurels of what we've achieved. However, we also believe it's healthy to acknowledge our significant growth and success since listing 15 years ago. That's why our celebratory timeline starts at financial year 2015 - like you, we're keen to see what's next in 2016 and beyond, but we're proud of our achievements over the last 15 years.

2015 - 2011

2015

30 JUN 2015
MARKET CAP $9.2B
SECURITY PRICE $8.24

JUN 2015

Wallumbilla Gladstone Pipeline acquisition, underpinned by
20 year take-or-pay gas transportation agreements. APA's largest acquisition
to-date.

2014

DEC 2014

Diamantina and Leichhardt Power Stations officially opened, underpinned by
long term electricity supply contracts until 2030.

2013

28 JUN 2013
MARKET CAP $4.8B
SECURITY PRICE $5.73

2013 - 2011

Maximising the value of APA's portfolio through consolidation and expansion - we're more than the sum of our parts.

2012

DEC 2012

Completed acquisition of Hastings Diversified Utilities Fund. Creation of APA's East Coast Grid through the addition of the South West Queensland Pipeline. Emergence of the West Coast Grid with acquisition of Pilbara Pipeline System.

DEC 2012

Commenced expansion of APA's compression capacity at the Wallumbilla Gas Hub.

2011

DEC 2011

Capacity expansion of the Goldfields Gas Pipeline.

JUL 2011

Emu Downs wind farm acquisition in the Perth area energy precinct, underpinned by 20 year electricity supply contracts.


Acquisition of the Amadeus Gas Pipeline in the Northern Territory.

MAY 2011

Fivefold capacity expansion of Mondarra Gas Storage Facility in the Perth area energy precinct.

APR 2011

Capacity expansion of the Roma Brisbane Pipeline.

2010 - 2006

2010

30 JUN 2010
MARKET CAP $1.9B
SECURITY PRICE $3.45

2010 - 2009

APA obtained investment grade credit ratings from Standard & Poor's (June 2009) and Moody's (April 2010).

2010 - 2008

Enhanced APA's asset footprint by means of capacity expansion, pipeline development and acquisitions.

MAR 2010

Acquired the Berwyndale to Wallumbilla Pipeline.

2008

DEC 2008

Established Energy Infrastructure Investments (EII) for APA annuity style assets.


Completed construction of the Bonaparte Gas Pipeline.

AUG 2008

Acquired the Central Ranges Pipeline.

2007

2007 - 2006

Start of ongoing acquisition and development of complementary assets for the APA portfolio.

OCT 2007

APA fully internalised asset management and operational services.


APA acquired Origin Energy Network (Jun/Jul 2007) assets including interests in SEA Gas Pipeline and the Envestra gas distribution network along with the long term operations and management contract for Envestra assets.


APA completed construction and commissioning of Daandine (Jan 2007) and X41 (Nov 2007) Power Stations.


APA completed construction and commissioning of Kogan North (Mar 2006) and Tipton West (Mar 2007) gas processing facilities.


APA acquired the Murraylink (Mar 2006) and Directlink (May 2007) electricity interconnectors.

2006

DEC 2006

Acquisition of the Victorian Transmission System (formerly GasNet).

NOV 2006

Acquisition of Allgas gas distribution network in Queensland.

2005 - 2000

2005

2005 - 2001

Period of acquisition of minority interests in major APA pipelines consolidating our ownership positions across Australia.

FEB 2005

Acquired the remaining 30% interest in the Carpentaria Gas Pipeline.

30 JUN 2005
MARKET CAP $1.0B
SECURITY PRICE $3.45

2004

AUG 2004

Goldfields Gas Pipeline interest increased to 88.2%.


Acquired Mondarra Gas Storage Facility, along with the Parmelia Gas Pipeline.

2001

FEB 2001

Acquired the remaining 15% interest in the Roma Brisbane Pipeline.

2000

30 JUN 2000
MARKET CAP $0.5B
SECURITY PRICE $2.10

13 JUN 2000

APA was listed on the Australian Stock Exchange. Foundation contract was on the only 100% owned Moomba Sydney Pipeline.