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Sgspaa Investor Update

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Sgspaa Investor Update SGSPAA INVESTOR UPDATE AUG 2020 OUR TEAM 2 David Gillespie Luis Castillo-Melendez Chief Financial Officer GM Corporate Finance AGENDA 3 01 SGSPAA BUSINESS OVERVIEW 02 INVESTMENT STRENGTH 03 FINANCIAL OVERVIEW 04 PROGRAMME DETAILS A LONG AUSTRALIAN HISTORY 4 The company now known as Jemena Limited is incorporated by an Act of the Parliament of Establishment of the Victorian Electricity New South Wales. Back then it was known as Commissioners by the Victorian State The Australian Gas Light Company. It was Government State Government. The Disaggregation of the SECV into generation, formed as a business venture by private Commissioners were the forerunner of the transmission and distribution companies, citizens, to produce “town gas” from coal State Electricity Commission of Victoria which are then further split and then gasification. The main use for the gas at that (SECV) and, much later, Jemena Electricity privatised. SECV’s electricity distribution time was in the gas street lamps that were Networks (JEN) and the other four Victorian business was privatised in 1994, with the installed on the main streets in the (very small) electricity distribution businesses. The network divided into five network areas, Sydney CBD. Electricity Commissioners were responsible for operated by five separate companies. One of generation and distribution of electricity these, is now known as Jemena Electricity throughout the State of Victoria. Networks (Vic) Limited. 1837 1918 1993- 1994 RECENT TIMELINE 5 2004 2007 2014 2003 2006 2009 2019 ALINTA ASX LISTED SP 100% SGCC 60% / SP 40% OWNERSHIP Singapore Northern Gas Pipeline (NGP), Aquila-AMP Power (SP) State Grid of China Duke Energy Alinta-AGL Darling Downs Pipeline System Capital acquires Colongra (SGCC) acquires 60% acquisition merger (DDP), Atlas and Roma Projects acquisition 100% of the of the business with Senex business TRANSACTION Jemena Gas Linking Tenent Creek in the NT to EGP Network Acquired Gas Alignment of long Mt Isa in QLD. Acquired Darling 34% UED (NSW) Jemena Alinta-AGL Transmission term ownership in Downs Pipeline System. Additional QGP Electricity & Storage investments in Pipeline and Zinfra Network (VIC) demerged support of a growth Vichub portfolio Facility portfolio processing facilities in PORTFOLIOActewAGL TIMELINE JV (ACT) Queensland. SGSPAA AT A GLANCE 6 Well-Diversified Business Established Regulatory Regime Business is well-diversified across Transparent and well-established geography, fuel and markets. economic regulatory regime. Strong Management & Shareholders State Grid of China Corporation Predictable & Stable Cashflows (SGCC) is the largest utility in the 100% of CY19 EBITDA from world. Singapore Power (SP) is a regulated networks and leading energy utility company in contracted pipeline revenues. the Asia Pacific region. Long Life Assets with Strong Track Record Investment Grade Credit Ratings Well-maintained long life assets SGSPAA credit ratings of A3 (stable) / with a strong performance and A- (stable) is supported by a strong continuous reliability track record. internal policy framework. ENVIRONMENTAL, SOCIAL & CORP. GOVERNANCE 7 GOVERNANCE Govern our business and ENVIRONMENT manage our supply chain in Reduce our own operational an ethical and responsible impacts while also adapting manner, while continuing to to a changing environment grow and deliver reliable, to ensure reliable, affordable, affordable, and sustainable and sustainable energy energy supply. supply. SOCIAL CLICK FOR Bring energy to life through FULL REPORT engaging with our people and communities in a meaningful and constructive way. Notes: Jemena 2019 Sustainability Report: https://indd.adobe.com/view/36702cba-c271-4767-a981-8d1d7ff351e4 SGSPAA’s BROAD GEOGRAPHIC FOOTPRINT 8 With more than A$12 billion worth of major utility infrastructure, we supply millions of households and businesses with essential services every day. PREDICTABLE AND STABLE CASH FLOWS 9 Predictable ZINFRA cashflows from GAS TRANS & WATER DIST 1% predominately CONTRACTED ELEC DIST regulated and 23% 23% 24% contracted ZINFRA business. 1% INVEST REGULATED Charts depict 13% CY19 EBITDA 76% GAS DIST Contributions. 39% by type by segment COVID-19 UPDATE 10 TRANSITION & RECOVERY FINANCIAL IMPACTS • External environment stabilising • Pathway to transition clearer • Government starting to consider capital investment to simulate JGN JEN economy and jobs through recovery BUSINESS 1-3 months 3-12/24 months 1-2 years+ 1 IMMEDIATE RESPONSE NEW NORMAL CY20 A$0.4M A$1.4M • Crisis management • Economic growth restarted FORECAST • Business continuity • Likely different economic mix • Business prioritisation (determined in part by overall 2 of activities impact of crisis) • Borders reopening 15% 15% • Ways of working & living TAKE UP PACKAGE Notes: 1. Full year forecast excludes deferrals (ie. cashflow timing impacts). 2. Take up (%) of relief package against original regulatory estimates in March 2020. OWNERSHIP 11 State Grid Corp. of China Singapore Power (SGCC) (SP) SGCC is the largest A1 (Stable) / A+ (Stable) Aa2 (Stable) / AA (Positive) utility in the World 100% 100% and the SP Group is State Grid International a leading energy Development Australia Singapore Power International Investment Company Ltd (SGID) (SPI) utilities company in A2 (Stable) / A (Stable) Asia Pacific and one 60% 40% of Singapore’s largest corporations. SGSPAA A3 (Stable) / A- (Stable) SGCC INTERNATIONAL PRESENCE 12 GLOBAL EXPERIENCE ITALY PORTUGAL GREECE CHINA HONG KONG OMEN PHILIPPINES BRAZIL CHILE AUSTRALIA SINGAPORE POWER GROUP 13 Aa2 (Stable) / AA (Positive) Singapore Australia China Issuer 40% SGSPAA SP PowerAssets Shirui Energy A3 / A- SP Services Jemena PowerGas Zinfra Singapore District AusNet Services Cooling 31.1% Notes: Companies where shareholding interest is not indicated, Singapore Power Limited has 100% shareholding. SGSPAA’s STRATEGIC VISION 14 Grow our portfolio: Be a world-class energy asset Adapt and influence the • Diversified portfolio across five owner, operator and service evolving energy industry: markets. provider: • Adapt to play a key role in a • Develop and execute a • Optimise and continually lower carbon future. portfolio of opportunity / improve operations. • Bring best practice to initiatives. • Continue to be a trusted partner. Australia. ELECTRICITY GAS SERVICE & ELECTRICITY GAS MARKETS MARKETS PROJECTS DISTRIBUTION DISTRIBUTION • Build a portfolio in • Enhance transmission • Win in services with • Drive competitiveness • Drive competitiveness storage, T&D, stand network coverage to o innovation through continuous through continuous alone power systems support key o efficiency improvements. improvements. and microgrids customers and unlock o digital and • Prepare for the grid • Innovate to prepare markets. serviceable markets. o safety of the future. for a low carbon future. HYDROGEN: WESTERN SYDNEY GREEN GAS PROJECT 15 AUG 2018 ARENA A$7.5M A$7.5M funding secured JEMENA ARENA OCT 2018 Project launched with Fed Gov support AUG 2019 1.4M Order placed Potential for first NSW Customers electrolyser SEP 2019 Community consultation & engagement AUG 2020 RENEWABLE Electrolyser STORAGE TRANSPORT installation & commissioning ENERGY Hydrogen will be stored in Hydrogen will be made LATE 2020 Australia’s largest gas Solar and wind energy to be available for mobility, utilised to power the Green gas to network - the Jemena Gas including transport and customers Network in NSW. electrolyser and generate vehicle industries. hydrogen. REGULATED ASSETS JEMENA GAS NETWORK (JGN) 17 RAB EBITDA EBITDA MARGIN CONTRIBUTION REGULATED A$3.3B ~25,000kms 62% as at DEC 19 JGN 39% REST OF GROUP RAB GROWTH 61% 1.4M+ JUL 20 - ~3.4% p.a. as at DEC 19 JUN 25 forecast 95 92 (A$M) CY 15 CY 16 CY 17 CY 18 CY 19 94 92 88 1,426 1,437 620 620 586 586 583 583 1,369 576 576 566 566 1,273 1,317 450 450 409 409 394 394 385 385 351 351 221 221 210 210 196 196 174 174 155 155 CY 15 CY 16 CY 17 CY 18 CY 19 REVENUE EBITDA CAPEX Customers Connected ('000s) Volume (PJ) JEMENA ELECTRICITY NETWORK (JEN) 18 RAB EBITDA EBITDA MARGIN CONTRIBUTION REGULATED A$1.5B ~6,300kms 53% JEN as at DEC 19 24% REST OF GROUP RAB GROWTH 76% 353,000+ JUL 21 - ~4.3% p.a. as at DEC 19 JUN 26 forecast (A$M) 4,229 CY 15 CY 16 CY 17 CY 18 CY 19 4,206 4,186 4,265 4,219 448 448 422 422 419 419 418 418 398 398 344 353 334 335 268 268 237 237 325 232 232 222 222 206 206 167 167 162 162 158 158 142 142 136 136 CY 15 CY 16 CY 17 CY 18 CY 19 REVENUE EBITDA CAPEX Customers Connected ('000s) Volume(GWh) JEMENA GAS PIPELINES JEMENA GAS PIPELINES 20 EGP QGP EBITDA EBITDA CONTRIBUTION Eastern Gas Pipeline Queensland Gas Pipeline MARGIN Transport gas from Victoria to Links Wallumbilla gas hub in CONTRACTED residential and commercial central Queensland to large 68% GAS customer in New South Wales. industrial gas users in Gladstone and Rockhampton. PIPELINES 22% REST OF CONLONGRA VICHUB DDP NGP GROUP Gas Transmission Interconnect facility to Darling Downs Pipeline Northern Gas Pipeline 78% & flow gas between the Gas transmission Links Northern Australia’s EGP, the Tasmanian Gas pipelines in South East gas fields to the east Storage Pipeline Pipeline and the Victorian Queensland. coast gas market. gas distribution system. (A$M) CY 15 CY 16 CY 17 CY 18 CY 19 EBITDA MARGIN 79% 338 338 77% 290 290 272 272 260 260 253 253 232 232 72% 213 213 206 206 197 197 188 188 70% 169 169 165 165 151 151 68% 117 117 103 103 REVENUE EBITDA CAPEX CY 15 CY 16 CY 17 CY 18 CY 19 ASSET INVESTMENT ACTEWAGL DISTRIBUTION PARTNERSHIP (AAD) (50%) 22 RAB EBITDA CONTRIBUTION REGULATED A$1.38B 50% HOLDING ActewAGL as at JUN 19 7% ELECTRICITY GAS REST OF GROUP 350,000+ JUL 19 - JUL 16 - 93% as at JUN 19 JUN 24 JUN 21 HISTORICAL EBITDA (A$M) Partnership with Icon Water Limited, an 75 66 66 63 63 59 59 Australia Capital Territory government 55 owned company with assets and investments in water, wastewater, electricity, gas and telecommunications.
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