ASX RELEASE 13 March 2012 The Manager ASX Market Announcements Australian Securities Exchange 4 th Floor, 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Dear Sir or Madam Company Announcement I attach the following announcement for release to the market: • Interim Results Presentation Yours sincerely Mark Knapman Company Secretary APA Ethane Limited
Investor Meeting EPX 1H FY12 Results
Brief Overview Principal Activity – Investment in the Moomba to Sydney Ethane Gas Pipeline, through wholly owned subsidiary, Gorodok Pty Limited – Pipeline – 1375km in length, running through regional NSW as well as the urban areas from Wilton into Botany Commercial Arrangements – Pursuant to a long term Product Transportation Agreement (to 2030) with its sole customer Qenos, provides capacity on the pipeline for the transportation of ethane from the gas processing plant in South Australia’s Cooper Basin to a petrochemical plant near Botany Bay, Sydney owned by Qenos – In early 2011, Qenos updated EPX on its haulage requirements for the period from 2011 to 2014. Based on the nominated volumes, the Fund’s revenues over that period are expected to be in line with current revenue levels Operations – EPX has no employees – Operational roles are undertaken by East Australian Pipeline Pty Limited under a long term operations and maintenance contract Presentation 2
Distributions in FY12 (year to date) FY12 Distributions In 1H FY12, EPX announced distributions for the half year of 7.85 Period Date Paid / Amount cents per security Expected Per Security EPX announced the distribution for the (cents) period ending March 2012 of 4.15 cents per security July 11 - Sept 11 14 Oct 11 3.72 Distribution impacted by: Oct 11 - Dec 11 13 Jan 12 4.13 – Continuing repayment of the $20m debt facility held with Investec. The next Jan 12 – Mar 12 13 Apr 12 4.15 scheduled repayment of $2.3m is to be paid on 31 March 2012 – Provisioning for expected items (eg. pigging, mine subsidence) Presentation 3
1H FY12 Results Statutory Results Federal Government announced it would amend recent legislation, which had allowed $’000 % a deduction for the tax cost setting amount Change allocated to an asset with a right to future 0.6 ▲ Revenue 13,321 income 8.3 ▼ Net Profit After Tax 3,464 Any enacting of that proposed legislation will require reversal of accounting tax deductions 11.4 ▲ Operating Cash Flow 8,636 booked to date 11.4 ▲ Operating Cash 12.5 cents Prospective impact of $1.0m increase in Flow/Security income tax expense Statutory results primarily impacted by: No claim has been made with respect to the amount previously deductible for FY2012 • Higher income tax expense Any enacting of that proposed legislation will • Lower borrowing costs result in the Fund paying tax from FY2013 • Slight increase in revenue • Slight increase in maintenance and operating costs Presentation 4
Balance Sheet Summary Non-current cash relates to quarantined Actual 1H FY12 ($000) funds: Cash and cash equivalents – for specific capital projects, in accordance Current 4,804 with the requirements of the Investec Non-current 9,127 facility ($5.5m); and Total cash and cash equivalents 13,931 – held on deposit over bank guarantees and Property, plant and equipment 39,717 an overdraft facility ($3.6m) Intangible assets and other 58,959 Current borrowings represents four Total Assets 112,607 quarterly principal repayments remaining Trade and other payables 3,850 on the Investec Facility Loans and borrowings - Current 9,164 - Non-current - FY 12 Expectations Total loans and borrowings 9,164 Other – By end June 2012, the Fund will have - Current 100 sufficient available cash to repay Investec debt in full - Non-current 15,532 Total other 15,632 – Further cash on deposit has been released Total Liabilities 28,646 due to bank guarantees no longer required Net Assets 83,961 Issued capital 95,628 Accumulated Losses (11,667) Total Equity 83,961 Presentation 5
Key Issues Going Forward Repayment of Investec Debt Facility Repaid in instalments from Dec 10 Current quarterly amortising repayments of ~$2.3m Expected to be finalised in FY12 Final repayment due in Dec 12 Non Routine Operating Costs Supervising 3 rd party work in State Rail (SRA) land Required to ensure public safety and to maintain Timetable for incurring costs is pipeline integrity dependent on SRA works Commenced in FY09 Forecast to cost ~$0.2m in 2HFY12 Mine Subsidence Monitoring Due to underground coal mining activities in the Required to maintain pipeline integrity Appin region. Expected to cost ~$0.1m in 2HFY12 Magnetic flux leakage inspection pigging “intelligent” or “smart” pigging, inclusive of required Required to maintain pipeline integrity cleaning pigging into Botany Expected to cost ~$0.2m in 2HFY12 Presentation 6
Ethane Pipeline – Wilton to Port Botany Presentation 7
Ethane Pipeline – mine subsidence Presentation 8
Ethane Pipeline – through Sydney Presentation 9
Ethane Pipeline – SRA quadruplication project Presentation 10
Ethane Pipeline Scraper Station Ethane Pipeline 200 mm diameter Presentation 11
Bulla Park Pump Station Ethane Pump Station From Moomba To Sydney Presentation 12
Disclaimer This Presentation has been prepared by APA Ethane Limited (ACN 132 157 290) the responsible entity of the Ethane Pipeline Income Trust (ARSN 118 961 167) and Ethane Pipeline Income Financing Trust (ARSN 118 961 023) ( Ethane Pipeline Income Fund (the Fund) ). Summary information This Presentation contains summary information about the Fund and its activities current as at the date of this presentation. The information in this presentation is of a general background nature and does not purport to be complete. It should be read in conjunction with the Fund’s other periodic and continuous disclosure announcements which are available at www.ethanepipeline.com.au. Not financial product advice Please note that APA Ethane Limited is not licensed to provide financial product advice in relation to securities in the Fund. This presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire securities and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and consult an investment adviser if necessary. Past performance Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Future performance This Presentation contains certain “forward-looking statements” such as indications of, and guidance on, future earnings and financial position and performance. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This Presentation contains such statements that are subject to risk factors associated with the industries in which the Fund operates which may materially impact on future performance. Investors should form their own views as to these matters and any assumptions on which any forward- looking statements are based. The Fund assumes no obligation to update or revise such information to reflect any change in expectations or assumptions. Investment Risk An investment in securities in the Fund is subject to investment and other known and unknown risks, some of which are beyond the control of the Fund. The Fund does not guarantee any particular rate of return or the performance of the Fund. Not an offer This Presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security. Presentation 13
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