APA Group (APA) 2015年年度報告「ASX」.pdf

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1、APA GROUPANNUAL REPORT2015CONNECTING MARKETS CREATING OPPORTUNITIESAUSTRALIAN PIPELINE TRUST 01 DirectorsReport23 RemunerationReport36 ConsolidatedStatementofProfitorLossandOtherComprehensiveIncome37 ConsolidatedStatementofFinancialPosition38 ConsolidatedStatementofChangesinEquity39 ConsolidatedStat

2、ementofCashFlows41 NotestotheConsolidatedFinancialStatements76 DeclarationbytheDirectorsofAustralianPipelineLimited77 AuditorsIndependenceDeclaration78 IndependentAuditorsReportAPT INVESTMENT TRUST 80 DirectorsReport82 ConsolidatedStatementofProfitorLossandOtherComprehensiveIncome83 ConsolidatedStat

3、ementofFinancialPosition84 ConsolidatedStatementofChangesinEquity85 ConsolidatedStatementofCashFlows86 NotestotheConsolidatedFinancialStatements95 DeclarationbytheDirectorsofAustralianPipelineLimited96 AuditorsIndependenceDeclaration97 IndependentAuditorsReport99 AdditionalInformation1APA Group|Annu

4、al Report 2015AUSTRALIANPIPELINETRUSTANDITSCONTROLLEDENTITIESARSN091678778DIRECTORS REPORTTheDirectorsofAustralianPipelineLimited(“ResponsibleEntity”)submittheirreportandtheannualfinancialreportofAustralianPipelineTrust(“APT”)anditscontrolledentities(together“APA”or“ConsolidatedEntity”)forthefinanci

5、alyearended30June2015.ThisreportreferstotheconsolidatedresultsofAPTandAPTInvestmentTrust(“APTIT”).DIRECTORSThenamesoftheDirectorsoftheResponsibleEntityduringthefinancialyearandsincethefinancialyearendare:LeonardBleaselAMChairmanMichaelMcCormack ChiefExecutiveOfficerandManagingDirectorStevenCraneJohn

6、FletcherRussellHigginsAOPatriciaMcKenzieRobertWrightDetailsoftheDirectors,theirqualifications,experience,specialresponsibilitiesanddirectorshipsofotherlistedentitiesaresetoutonpages19to21.TheCompanySecretaryoftheResponsibleEntityduringandsincethefinancialyearendisMarkKnapman.PRINCIPAL ACTIVITIESThep

7、rincipalactivitiesofAPAduringthecourseoftheyearweretheownershipandoperationofenergyinfrastructureassetsandbusinesses,including:energyinfrastructure,primarilygastransmissionbusinesseslocatedacrossAustralia;assetmanagementandoperationsservicesforthemajorityofAPAsenergyinvestmentsandforthirdparties;and

8、energyinvestmentsinlistedandunlistedentities.STATE OF AFFAIRSNosignificantchangeinthestateofaffairsofAPAoccurredduringtheyear.SUBSEQUENT EVENTSExceptasdisclosedelsewhereinthisreport,theDirectorsareunawareofanymatterorcircumstancethathasoccurredsincetheendofthefinancialyearthathassignificantlyaffecte

9、dormaysignificantlyaffecttheoperationsofAPA,theresultsofthoseoperationsorthestateofaffairsofAPAinfutureyears.FINANCIAL AND OPERATIONAL REVIEW1.About APA1.1APAOverviewAPAisAustraliaslargestnaturalgasinfrastructurebusiness.Itownsand/oroperatesorhasaninterestinapproximately$19billionofenergyinfrastruct

10、ureacrossAustralia,andoperatesthesewithaskilledworkforceinexcessof1,600people.APAhasadiverseportfolioofapproximately14,700kilometresofgastransmissionpipelinesthatspanseverystateandterritoryonmainlandAustraliaanddeliversabouthalfthenationsnaturalgas.Italsoownsorhasinterestsinotherrelatedenergyinfrast

11、ructureassetssuchasgasstoragefacilities,gasprocessingfacilities,gascompressionfacilitiesandpowergenerationassets.On3June2015,APAcompletedtheacquisitionofthepipelinethatconnectstheQueenslandCurtisLNGProjecttoitsexportportatGladstone,fromBGGroup.APAhasrenamedthepipelinetheWallumbillaGladstonePipelines

12、eepage8.APAhasownershipinterestsin,and/oroperates,theGDI(EII)PtyLtd(“GDI”)andAustralianGasNetworksLimited(previouslyEnvestraLimited)gasdistributionnetworks,whichtogetherhaveapproximately27,700kilometresofgasmainsandpipelines,andapproximately1.3milliongasconsumerconnections.APAalsohasinterestsin,ando

13、perates,otherenergyinfrastructureassetsandbusinesses,includingSEAGasPipeline,EnergyInfrastructureInvestments(“EII”),EII2,DiamantinaPowerStationandEthanePipelineIncomeFund.APAsobjectiveofmaximisingsecurityholdervalueisachievedthroughexpandingandenhancingitsinfrastructureportfolio,securinglowrisk,long

14、-termrevenueonitsassets,operatingthebusinesssafelyandefficientlyandgeneratingfurthervaluethroughitsmanyandvariedserviceofferings.APAislistedontheAustralianSecuritiesExchange(“ASX”)andisincludedintheS&PASX50Index.SincelistinginJune2000,itsmarketcapitalisationhasincreasedmorethan18-foldto$9.2billion(a

15、sat30June2015),andithasachievedtotalsecurityholderreturnof1,304%orannualcompoundgrowthrateof19.2%1attheendofthefinancialyear.1)TotalsecurityholderreturnisthecapitalappreciationoftheAPAssecurityprice,adjustedforcapitalmanagementactions(suchassecuritysplitsandconsolidations)andassumingreinvestmentofdi

16、stributionsatthedeclareddistributionratepersecurity.FiguresquotedaresourcedfromIRESSandmeasuredasat30June2015.2APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUED1.2 APAobjectivesandstrategiesAPAsobjectivestoprovidesecureandpredictablereturntoi

17、tsinvestorsissupportedbyitsstrategiesof:continuingtogrowourownershipinterestsintransmissionpipelinesthroughfurtherexpandingtheEastandWestCoastGrids;growingotherenergyinfrastructuremidstreamassets;leveragingAPAsassetmanagement,developmentandoperationalcapabilities;providingasafe,stimulatingandrewardi

18、ngworkplace;deliveringresponsiveandvaluablesolutionstocustomers;continuingtodeliveranenvironmentallyresponsible,safeandessentialservice;contributingtothecommunitiesAPAserves;andmaintainingAPAsfinancialstrength,flexibilityandcapability.Thisstrategyhasremainedrelativelyunchangedsincelisting.1.3 APAass

19、etsandoperationsAPAisamajorparticipantindeveloping,owningandoperatingnaturalgastransportationinfrastructureacrossAustralia.APAsassetsandoperationsarereportedinthreeprincipalbusinesssegments:EnergyInfrastructure,whichincludesallAPAswhollyormajorityownedpipelines,gasstorageassets,gascompressionassetsa

20、ndtheEmuDownswindfarm;AssetManagement,whichprovidescommercial,operatingservicesand/orassetmaintenanceservicestoitsenergyinvestmentsforappropriatefees;andEnergyInvestments,whichincludesAPAsstrategicstakesinanumberofinvestmentvehiclesthathouseenergyinfrastructureassets,generallycharacterisedbylong-ter

21、msecurecashflows,withlowongoingcapitalexpenditurerequirements.APA GROUP ASSETS AND OPERATIONSWESTERNAUSTRALIANORTHERNTERRITORYQUEENSLANDSOUTHAUSTRALIANEWSOUTHWALESVICTORIATASMANIAWind FarmGas Storage FacilityGas Processing PlantGas Power StationAPA Group AssetsAPA Group InvestmentsAssets Managed(Not

22、 Owned By APA)231314171918201615231227262324316242523221191078232321235272727273APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUEDEnergy Infrastructure assets(numberscorrespondwiththoseonthemaponpage2)Length/CapacityRegulatorystatusEast Coast

23、and Northern Territory assets1)RomaBrisbanePipeline(includingPeatLateral)583km/233TJ/dFullregulation2)CarpentariaGasPipeline944km/119TJ/dLightregulation3)BerwyndaleWallumbillaPipeline112kmNotregulated4)SouthWestQueenslandPipeline936km/384TJ/dNotregulated5)WallumbillaGladstonePipeline(includingLatera

24、ls)556km/1,510TJ/dNotregulated6)MoombaSydneyPipeline2,029km/439TJ/dLightregulation(partial)7)CentralWestPipeline255kmLightregulation8)CentralRangesPipeline295kmFullregulation9)VictorianTransmissionSystem1,847kmFullregulation10)DandenongLNGStorageFacility12,000tonnesNotregulated11)SESAPipeline45kmNot

25、regulated12)AmadeusGasPipeline1,657kmFullregulation9,259kmWest Australian assets13)PilbaraPipelineSystem249km/166TJ/dNotregulated14)GoldfieldsGasPipeline(88.2%)1,546km/202TJ/dFullregulation15)EasternGoldfieldsPipeline(underconstruction)293kmNotregulated16)KalgoorlieKambaldaPipeline44kmLightregulatio

26、n17)MidWestPipeline(50%)362km/11TJ/dNotregulated18)ParmeliaGasPipeline448km/50TJ/dNotregulated19)MondarraGasStorageFacility15PJNotregulated20)EmuDownsWindFarm80MWNotregulated2,942kmEnergy Investments and Asset Management(numberscorrespondwiththoseonthemaponpage2)EnergyInvestmentOwnershipInterestDeta

27、ilAssetManagement21)GDI20.0%Gasdistribution:3,214kmofgasmains,96,045gasconsumerconnectionsinQldOperational,managementandcorporatesupportservices22)SEAGasPipeline50.0%Gaspipeline:687kmpipelinefromIonaandPortCampbell,VictoriatoAdelaide,SAMaintenanceservicesonly23)EnergyInfrastructureInvestments19.9%Ga

28、spipelines:TelferGasPipelineandlateral(488km);BonaparteGasPipeline(286km);WickhamPointPipeline(12km)Electricitytransmissioncables:Murraylink(180km)andDirectlink(64km)Gas-firedpowerstations:DaandinePowerStation(30MW)andX41PowerStation(41MW)Gasprocessingfacilities:KoganNorth(12TJ/d);TiptonWest(29TJ/d)

29、Operational,managementandcorporatesupportservices24)EthanePipelineIncomeFund6.1%EthanePipeline:1,375kmfromMoombatoPortBotany,SydneyOperational,managementandcorporatesupportservices25)EII220.2%Windgeneration:NorthBrownHillWindFarm(132MW),SACorporatesupportservices26)DiamantinaPowerStationjointventure

30、50.0%Gas-firedpowerstations:DiamantinaPowerStation(242MW)andLeichhardtPowerStation(60MW)Corporatesupportservices27)AustralianGasNetworksNil1Gasdistribution:23,408kmofgasmainsandpipelines,1.21milliongasconsumerconnections,1,124kmofpipelinesinSA,Vic,NSW,Qld&NTOperationalservices1)InAugust2014,APAsoldi

31、ts33.05%ownershipinterestinAustralianGasNetworksLimited(“AGN”,formerlyEnvestraLimited).OperatingandmaintenanceagreementswithAGNremaininplaceuntil2027.4APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUED2.Financial highlightsProfitaftertaxandnon

32、-controllinginterests,earningsbeforeinterestandtax(“EBIT”)andEBITbeforedepreciationandamortisation(“EBITDA”)excludingsignificantitemsarefinancialmeasuresnotprescribedbyAustralianAccountingStandards(“AIFRS”)andrepresenttheprofitunderAIFRSadjustedforspecificsignificantitems.TheDirectorsconsidertheseme

33、asurestoreflectthecoreearningsoftheConsolidatedEntity,andthesearethereforedescribedinthisreportasnormalisedmeasures.APAreportedprofitaftertaxandnon-controllinginterestsandincludingsignificantitemsof$559.9million,anincreaseof62.9%comparedwith$343.7millionreportedinthelastfinancialyear.APAsFY2015profi

34、tincludesaftertaxsignificantitemsof$356.0millionrelatingtoaftertaxprofitonthesaleofAPAsshareholdinginAustralianGasNetworksLimited(formerlyEnvestraLimited)andtherecoveryduringtheperiodoffeespaidbyHastingsDiversifiedUtilitiesFundtoHastingsFundsManagement.ThisyearsprofitiscomparedwithprofitinFY2014whic

35、hincludedaone-offadjustmenttothetaxexpenseforthefinancialyeartoreflectachangeinthetreatment,fortaxdepreciationpurposesonly,ofvariouscapitalassetsacquiredin2006(totalling$144.1million).Normalisedprofitaftertaxandnon-controllinginterests(thatis,excludingsignificantitems)increasedby2.1%to$203.9million(

36、2014:$199.6million).Revenue(excludingpass-throughrevenue)increasedby$126.7millionto$1,119.2million,anincreaseof12.8%onthelastfinancialyear(2014:$992.5million).StatutoryEBITDAof$1,269.5millionwas$522.2millionabovelastfinancialyear(2014:$747.3million)andnormalisedEBITDAof$822.3millionwas$74.9millionor

37、10.0%abovelastfinancialyear(2014:$747.3million).NormalisedEBITDAat$822.3millionisinlinewithAPAsguidanceforFY2015of$810millionto$825million.StrongerearningsacrossmostofAPAsassetscontributedtotheincreaseinnormalisedprofitandEBITDAandincludedthefollowing:additionalearningsfromtheexpandedSouthWestQueens

38、landPipelineandtheGoldfieldsGasPipeline;organicgrowthacrossmostofourassetsincludingthePilbaraPipelineSystem,MondarraGasStorageFacility,RomaBrisbanePipelineandAmadeusGasPipeline;andfourweeksofEBITDAcontributionfromthenewlyacquiredWallumbillaGladstonePipeline.Theseincreaseswerepartiallyoffsetbyareduct

39、ioninearningsfromAssetManagement,givenabnormallyhigh,one-offcustomercontributionsinFY2014of$23.4million(2015:$3.6million).Operatingcashflowincreasedby30.3%to$562.2million(2014:$431.5million),andoperatingcashflowpersecurityincreasedby13.5%,or6.7cents,to56.5centspersecurity(2014:49.8centspersecurity).

40、Operatingcashflowwasimpactedbytheone-offreceiptof$17.2millionduringthefinancialyearrelatingtoAPAssuccessfulappealtotheNSWSupremeCourtinamatterregardingfeespaidbyHastingsDiversifiedUtilitiesFundtoHastingsFundsManagementLimited.Thispartiallyreversespaymentsof$8.3millionmadeinFY2014and$68.8millioninFY2

41、013.Excludingthesesignificantitems,normalisedoperatingcashflowwasupby23.9%to$545.0million(2014:$439.7million)andcorrespondingoperatingcashflowpersecuritywasupby7.9%,or4.0cents,to54.8centspersecurity(2014:50.8cents).Thisincreaseisdespitea14.9%increaseintheaveragenumberofsecuritiesonissuethisfinancial

42、yearto995,244,990securities(2014:865,977,265securities).APAsdistributionsforthefinancialyeartotalled38.0centspersecurity,anincreaseof4.8%,or1.75cents,overthelastfinancialyear(2014:36.25cents),andwasinlinewithguidanceofatleast36centspersecurity.Thedistributionpayoutratioof68.8%basedonnormalisedoperat

43、ingcashflowwasslightlylowerthanthe68.9%ratiolastfinancialyear.APAcontinuestofullyfunditsdistributionsoutofoperatingcashflowswhilstalsoretainingappropriatelevelsofcashinthebusinesstosupportongoinggrowth.Thetableonthefollowingpageprovidesasummaryofkeyfinancialdataforthefinancialyearandincludeskeyrecon

44、cilingitemsbetweenstatutoryprofitaftertaxattributabletoAPAsecurityholdersandthenormalisedfinancialmeasures.5APA Group|Annual Report 2015AUSTRALIANPIPELINETRUSTANDITSCONTROLLEDENTITIESDIRECTORS REPORT CONTINUED30June201530 June 2014ChangesinChangesin($000)($000)StatutoryaccountsNormalisedaccountsSign

45、ificantSignificantYearended30JuneStatutoryitems2NormalisedStatutory items 2 Normalised$000%$000%Totalrevenue1,553,615 1,553,615 1,395,9921,395,992157,62311.3%157,62311.3%Pass-throughrevenue1434,382 434,382 403,477403,47730,9057.7%30,9057.7%Total revenue excluding pass-through1,119,233 1,119,233 992,

46、515992,515126,71812.8%126,71812.8%EBITDA1,269,490 447,240 822,250 747,334747,334522,15669.9%74,91610.0%Depreciationandamortisationexpense(208,200)(208,200)(156,228)(156,228)(51,972)(33.3%)(51,972)(33.3%)EBIT1,061,290 447,240 614,050 591,106591,106470,18479.5%22,9443.9%Financecostsandinterestincome(3

47、24,162)(324,162)(325,084)(325,084)9220.3%9220.3%Profitbeforeincometaxandnon-controllinginterests737,128 447,240 289,888 266,022266,022471,106177.1%23,8669.0%Incometax(expense)/benefit(177,198)(91,222)(85,976)77,684144,060(66,376)328.1%(29.5%)Non-controllinginterests(1)(1)(1)(1)0.0%0.0%Profit after i

48、ncome tax and non-controlling interests559,929 356,018 203,911 343,705144,060199,645216,22462.9%4,2662.1%Operatingcashflow3562,190 17,201 544,989 431,541(8,201)439,742130,64930.3%105,24723.9%Operatingcashflowpersecurity(cents)456.5 54.8 49.850.86.713.5%4.07.9%Earningspersecurity(cents)456.3 20.5 39.

49、723.116.641.8%(2.6)(11.3%)Distributionpersecurity(cents)38.0 38.0 36.2536.251.754.8%1.754.8%Distributionpayoutratio566.6%68.8%70.2%68.9%(3.6%)(5.1%)(0.1%)(0.2%)Weightedaveragenumberofsecurities(000)995,245 995,245 865,977865,977129,26814.9%129,26814.9%Notes:Numbersinthetablemaynotaddupduetorounding.

50、1)Pass-throughrevenueisrevenueonwhichnomarginisearned.Pass-throughrevenuearisesintheassetmanagementoperationsinrespectofcostsincurredin,andpassedontoAustralianGasNetworksLimited(“AGN”,formerlyEnvestraLimited)andGDIinrespectof,theoperationoftheAGNandGDIassetsrespectively.2)Significantitems:2015relate

51、stonetproceedsrealisedfromthesaleofAPAsinvestmentinAGNaswellassuccessfulrecoveryoffeespaidbyHastingsDiversifiedUtilitiesFundtoHastingsFundsManagementLimited.2014relatestoaone-offadjustmenttoAPAstaxexpenseforthefinancialyeartoreflectachangeinthetreatment,fortaxdepreciationpurposesonly,ofvariouscapita

52、lassets.3)Operatingcashflow=netcashfromoperationsafterinterestandtaxpayments.4)Between23December2014and28January2015,APAissuedatotalof278,556,562newordinarysecurities,resultingintotalsecuritiesonissueasat30June2015of1,114,307,369.Theissuewasofferedat$6.60persecurity,adiscounttoAPAsclosingmarketprice

53、of$7.67persecurityon9December2014,thelasttradingdaybeforetherecorddateoftheentitlementofferof15December2014.TheweightedaveragenumberofsecuritiesforthecurrentandpriorperiodhasbeenadjustedinaccordancewiththeaccountingprinciplesofAASB133:EarningsperShare,forthediscountedrightsissue.5)Distributionpayout

54、ratio=totaldistributionpaymentsasapercentageofnormalisedoperatingcashflow.6APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUED3.Business segment performances and operational reviewStatutoryreportedrevenueandEBITDAperformanceofAPAsbusinesssegmen

55、tsissetoutinthetablebelow.Changes20152014Yearended30June$000$000$000%Revenue(continuing businesses)EnergyInfrastructureEastCoastGrid:Queensland1388,916 271,746117,17043.1%EastCoastGrid:NewSouthWales137,998 133,5554,4433.3%EastCoastGrid:Victoria163,592 153,6689,9246.5%EastCoastGrid:SouthAustralia2,72

56、5 2,686391.5%NorthernTerritory27,877 24,8483,02912.2%WesternAustralia265,972 237,56628,40612.0%Energy Infrastructure total 987,080 824,069 163,011 19.8%AssetManagement85,056 99,171(14,115)(14.2%)EnergyInvestments21,784 18,0203,76420.9%Total segment revenue 1,093,920 941,260152,66016.2%Pass-throughre

57、venue434,382 403,47730,9057.7%Unallocatedrevenue(interestincome)224,322 1,14223,1802,029.8%Divestedbusiness3991 50,113(49,122)(98.0%)Total revenue 1,553,615 1,395,992157,62311.3%EBITDA(continuing businesses)EnergyInfrastructureEastCoastGrid:Queensland1340,131 234,459105,67245.1%EastCoastGrid:NewSout

58、hWales120,808 115,5695,2394.5%EastCoastGrid:Victoria130,170 127,6162,5542.0%EastCoastGrid:SouthAustralia1,940 2,380(440)(18.5%)NorthernTerritory17,954 15,2142,74018.0%WesternAustralia212,604 188,94723,65712.5%Energy Infrastructure total 823,607 684,185 139,422 20.4%AssetManagement49,448 67,552(18,10

59、4)(26.8%)EnergyInvestments21,783 18,0203,76320.9%Corporatecosts(73,579)(72,536)(1,043)(1.4%)Total segment EBITDA 821,259 697,221124,03817.8%Divestedbusiness3991 50,113(49,122)(98.0%)Total EBITDA before significant items 822,250 747,33474,91610.0%Significantitems4447,240 447,240n/aTotal EBITDA 1,269,

60、490 747,334522,15669.9%Notes:Numbersinthetablemaynotaddupduetorounding.Fromthisreportingperiod,APAwillreportitssegmentEBITDAexclusiveofcorporatecosts.FY2014segmentEBITDAhasbeenrestatedtoalignwithFY2015reporting.1)IncludestheWallumbillaGladstonePipelinerevenueandEBITDAcontributionsfrom4June2015.2)Int

61、erestincomeisnotincludedincalculationofEBITDA,butnetsoffagainstinterestexpenseincalculatingnetinterestcost.3)InvestmentinAustralianGasNetworksLimited(“AGN”,formerlyEnvestraLimited)soldinAugust2014.4)Significantitems:2015relatetonetproceedsrealisedfromthesaleofAPAsinvestmentinAGNaswellassuccessfulrec

62、overyoffeespaidbyHastingsDiversifiedUtilitiesFundtoHastingsFundsManagementLimited.2014relatestoaone-offadjustmenttoAPAstaxexpenseforthefinancialyeartoreflectachangeinthetreatment,fortaxdepreciationpurposesonly,ofvariouscapitalassets.APAsoperationsandfinancialperformanceduringthefinancialyearprincipa

63、llyreflectongoinggrowthinoperationalperformanceofAPAsasset,additionalrevenuefromexpansionprojectsthathavebeencommissionedduringtheyearandfourweeksofearningsfromthenewlyacquiredWallumbillaGladstonePipeline,partiallyoffsetbyadecreaseinEBITDAfromAssetManagementduetolowercustomercontributions.EBITDAinAP

64、Ascontinuingbusinesses,whichexcludesAustralianGasNetworksLimited(formerlyEnvestraLimited)thatwasdivestedinAugust2014,increasedby$124.0million,or17.8%,to$821.3million,inlinewithAPAsguidanceforFY2015of$810millionto$825million.APAderivesitsrevenuethroughamixofregulatedrevenue,long-termnegotiatedrevenue

65、contracts,assetmanagementfeesandinvestmentearnings.Earningsareunderpinnedbystrongcashflowsgeneratedfromhighquality,geographicallydiversifiedassetsandaportfolioofhighlycreditworthycustomers.7APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUEDAna

66、tionalregulatoryregimeprovidesmechanismsforregulatorypricingamongstotherthings,andisencapsulatedintheNationalGasLawandNationalGasRules.TheeconomicregulationaspectsoftheregimeapplytomostgasdistributionnetworksandanumberofgastransmissionpipelinesinAustralia.Theregimeprovidesfortwoformsofregulationbase

67、donapipelinesrelativemarketpowerfullregulationandlightregulation.Forassetsunderfullregulation,theregulatorapprovespriceandothertermsofaccessforstandard(“reference”)servicesaspartofanaccessarrangementprocess,suchthattheassetownerhasareasonableopportunitytorecoveratleasttheefficientcostsofowningandope

68、ratingtheassettoprovidethereferenceservices.Accessarrangementperiodsusuallyrunforfiveyears.Forassetsunderlightregulation,contractualterms(includingprice)arenegotiatedbetweentheserviceproviderandcustomerwithrecoursetoarbitrationbytheregulatorintheabsenceofagreement.APAassetssubjecttofullregulationorl

69、ightregulationaredetailedonthemapbelowandinthetableonpage3.Contractedrevenuesaresourcedfromunregulatedassetsandassetsunderlightregulationaswellasassetsunderfullregulation.Contractsgenerallyentitlecustomerstocapacityreservation,withthemajorityoftherevenuefixedoverthetermoftherelevantcontract.APAscurr

70、entweightedaveragecontracttermisapproximately10years,andwherenewinfrastructureisrequired,termstendtobelongerthanthiscurrentaverageinordertounderwritetheinvestmentbyAPAinanynecessaryexpansion.DuringFY2015,approximately21%ofrevenue(excludingpass-through)wassubjecttopricesdeterminedunderfullregulation,

71、49%ofrevenue(excludingpass-through)wasfromcapacityreservationcharges,12%fromstorageandothercontractedrevenuesand15%fromthroughputcharges.Giventhedynamiceastcoastgasmarket,therewereadditionalrevenuesfromprovisionofflexibleshorttermservices,accountingfor2.2%ofFY2015revenue($21.4million)forEnergyInfras

72、tructure.APAcontinuestofocusontheoperation,developmentandenhancementofourgastransmissionanddistributionassets,andenergyinvestmentsacrossmainlandAustralia.FY2015 REVENUES BY CONTRACT TYPE APA 1 PIPELINES BY REGULATION TYPE Regulated revenue:21%Capacity charge revenue:49%Storage&other contracted reven

73、ue:12%Throughput charge&other variable revenue:15%Flexible short term services:2.2%Other:0.8%Full regulation pipelinesLight regulation pipelinesNot regulated pipelines1)Owned and/or operated by APA3.1 EnergyInfrastructureTheEnergyInfrastructuresegmentincludesgastransmission,gascompressionandstoragea

74、ssetsandtheEmuDownswindfarm.Revenuefromtheseassetsisderivedfromeitherregulatoryarrangementsorcapacity-basedcontracts.Regulatoryarrangementsonmajorassetsarereviewedeveryfiveyears.Currently,in-placecontractshaveaweightedaveragetermofapproximately10years.TheEnergyInfrastructuresegmentcontributed90.2%of

75、revenue(forcontinuingbusinesses,excludingpass-through)and92%ofEBITDA(forcontinuingbusinesses,beforecorporatecosts)duringFY2015.Revenue(excludingpass-throughrevenue)was$987.1million,anincreaseof19.8%onthelastfinancialyear(2014:$824.1million).EBITDA(forcontinuingbusinesses,beforecorporatecosts)increas

76、edby20.4%onthelastfinancialyearto$823.6million(2014:$684.2million).Commissioningofvariousexpansionprojectsandnewhaulagecontractsacrossmultipleassets,includingSouthWestQueenslandPipelineandGoldfieldsGasPipeline,aswellasorganicgrowthfromthemajorityofAPAsassets,asdetailedinsubsectionsbelow,contributedt

77、othisresult.ENERGY INFRASTRUCTURE REVENUE BY STATE ENERGY INFRASTRUCTURE EBITDA BY STATEA$1,200m8001,000600400200FY11QLDFY12FY13FY14FY15082%80%78%NSWVICSANTWAEBITDA margin(RHS)A$1,000m600800400200FY11QLDFY12FY13FY14FY150NSWVICSANTWA8APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTR

78、OLLED ENTITIESDIRECTORS REPORT CONTINUEDENERGY INFRASTRUCTURE EBITDA BY PIPELINE FY15FY14FY13FY12FY110A$m100200300400500600700800Wallumbilla Gladstone PipelineSouth West Queensland PipelineRoma Brisbane PipelineCarpentaria Gas PipelineOther Qld assetsMoomba Sydney PipelineVictorian Transmission Syst

79、emSESA PipelineAmadeus Gas PipelineGoldfields Gas PipelineEmu Downs wind farmPilbara Pipeline SystemMondarra gas storageOther WANote:Thechartsaboveandonpage7excludediscontinuedoperationspreviouslyaccountedforwithinEnergyInfrastructure,includingearningsfromAllgasNetworksandMoombaAdelaidePipeline.92%o

80、fFY2015revenuewasreceivedfrominvestmentgradeorbettercounterparties.FY2015revenues,onanindustrysegmentbasis,werebrokendownasfollows:43%fromutilitysectorcustomers;34%fromcustomersintheenergysector;20%fromresourcessectorcustomers;and2%fromindustrialcustomers.FY2015 REVENUES BY COUNTERPARTY CREDIT RATIN

81、G FY2015 REVENUES BY CUSTOMER INDUSTRY SEGMENTA-rated or better:27%BBB to BBB+rated:39%Investment Grade:26%Not rated:6%Sub-investment grade:2%Utility:43%Energy:34%Resources:20%Industrial:2%Other:1%Geographically,EnergyInfrastructureassetsaremanagedastheEastCoastGrid(Queensland,NewSouthWales,Victoria

82、andSouthAustralia),theNorthernTerritoryandWesternAustralia.East Coast GridWiththeadditionoftheWallumbillaGladstonePipeline,APAnowhasa7,500+kilometresofintegratedpipelinegridontheeastcoastofAustralia,withtheabilitytotransportgasseamlesslyfrommultiplegasproductionfacilitiestogasusersacrossfourstatesan

83、dtheACT,aswellastotheexportLNGmarketwhichisdevelopinginGladstone.CustomersusingtheEastCoastGridhaveflexibilityinrelationtoreceiptanddeliverypoints,withthepotentialtomovebetweenaround30receiptpointsandaround100deliverypoints(includingGladstone).APAhasdevelopedthecommercialandoperationalframeworktodel

84、iverawiderangeofflexibleservices,suchasmulti-assetservices,bi-directionaltransportation,capacitytradingandgasstorageandparkingfacilities.Tothisend,APAopeneditsIntegratedOperationsCentre(“IOC”)inBrisbaneinApril2015.TheIOCisdesignedtoholisticallymanageourportfolioofinterconnectedassetstobetterenableus

85、torespondtochangesinoperationalandmarketconditions.Byintegratingcommercial,technicalandoperationalresourcesintheonelocationinareal-timeenvironment,APAprovidesasingleoperationalpointofcontactforourcustomersandenhancesoperationalefficiency.DuringthecourseofFY2016,APAwillcompletethetransitioningofitsas

86、setstotheIOC.FlexibilityofferedbyAPAsEastCoastGridallowscustomerstomanagetheirgasportfoliosinamoredynamicmanner,inresponsetoagasindustrythatisundergoingsignificanttransformation.Thisisaresultoftheneartreblinginthesizeoftheeastcoastgasmarket,drivenprimarilybytheLNGexportmarketatGladstone.Inadditionto

87、additionalcontributionfromexpandedassetsfromprojectsdescribedbelow,APAexperiencedongoingorganicgrowthacrosstheEastCoastGrid,includingfromtheRomaBrisbanePipeline,theMoombaSydneyPipelineandtheCarpentariaGasPipeline.Duringthefinancialyear,thefollowingmajorcapitalprojectswerecompleted:inDecember2014,APA

88、completedtheinstallationofanewcompressoratWinchelseaontheSouthWestPipeline(withintheVictorianTransmissionSystem)betweenPortCampbellandBrooklyninVictoria.ThenewcompressorincreasedthecapacityoftheSouthWestPipelineby76TJ/day;9APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTI

89、TIESDIRECTORS REPORT CONTINUEDinMay2015,APAcompletedafurtherexpansionoftheVictoriaNewSouthWalesInterconnect(“VNI”)toincreasethefirmpeakwintergasflowsfromVictoriaintoNewSouthWalesby145%,atatotalcostofapproximately$160million.NewgastransportationagreementswithOriginEnergy,EnergyAustraliaandLumoEnergyc

90、ommencedduringtheyeargivencompletionoftheexpansionprojectsthatinvolvedaugmentingadditionalcompressioncapacityatCulcairn,aswellasadditionallooping.AfourthagreementwithanexistingcustomerwasannouncedinJuly2015.ThiswillsupportfurtherexpansionoftheVNIby30TJ/dayto146TJ/dayintotal,treblingcapacityoveraperi

91、odofnearlythreeyearsinresponsetochangesintheeastcoastgasmarket;andinJanuary2015,theSouthWestQueenslandPipelineexpansionprojectswerecompletedandcommissioned.Theseprojectsinvolved$325millionofexpansionsthatwereunderpinnedbyvariouslongtermcontractswithhighlycreditworthycounterparties.TheSouthWestQueens

92、landPipelinehasundergoneamajorcapacityexpansionthroughaugmentationofcompressionfacilitiesatWallumbillaandMoombaandpipelinebi-directionalcapability.APAcompletedtheacquisitionoftheWallumbillaGladstonePipelineon3June2015andthepipelinecontributed$35millionofEBITDAduringthefinancialyear.WhilsttheQueensla

93、ndCurtisLNGProjectitselfisexpectedtoberampingupitsproductionforitssecondtrainduringFY2016,APAscontractsonthepipelinearefulltake-or-paycontractsfor20years(withtwo10-yearoptionstoextend),regardlessofvolumetransportedforthefoundationshippers,withtariffsescalatingannuallyatUSCPI1.TheexpectedEBITDAcontri

94、butionofthesecontractsinthefirstfullfinancialyearto30June2016isUS$355million.USdollardenominateddebtwasraisedtoassistinthefinancingoftheacquisition.ThenetUSDcashflowsafterservicingtheUSDdenominateddebtfacilitieswillultimatelybeconvertedtoAUD,inlinewithAPAsTreasuryRiskManagementPolicy.MoredetailsonAP

95、AsguidanceforFY2016canbefoundonpage16anditspolicyformanagingforeignexchangecanbefoundinNote21tothefinancialstatements.AgainstthebackdropofaverydynamicgasmarketinthesoutheastofAustralia,APAcontinuestoadaptandprogressivelydevelopitsgasinfrastructureandservicesinresponsetothechangingneedsofitscustomers

96、.Northern TerritoryAPAsassetsintheNorthernTerritorycontinuedtoperformatoraboveexpectationsduringtheyearincludingcommencementofanewlongtermagreementtodelivernaturalgastotheAustralianAgriculturalCompanymeatprocessingfacilitynearDarwinviatheAmadeusGasPipeline.Inearly2014,APAcommencedafeasibilitystudyto

97、linkitspipelineinfrastructureintheNorthernTerritorywithitsEastCoastGrid.Theproposedpipelinelink(the“NTLink”)willcreatetheopportunityforgassourcedfromonshoreandoffshorefieldsintheNorthernTerritorytosupplymarketsintheeast,andprovideadditionalgassecurityfortheNorthernTerritory.TheNTLink,ifbuilt,willcon

98、nectAPAsAmadeusGasPipelineintheNorthernTerritorywiththeAPAownedEastCoastGrid.APAexpectsthiswillprovideadditionalflexibilitytosuppliersandusersofgasintheNorthernTerritoryandtheeasternstatesofAustralia,byinterconnectingmoreresourceswithmoremarkets.DuringFY2015,theNorthernTerritoryGovernmentannouncedit

99、sownprocess(NorthEastGasInterconnectoror“NEGI”)aroundconnectingtotheeastcoastandshortlistedfourbidders,includingAPA.APAcontinuestoworkonitsfinalsubmissionaspartofthegovernmentsprocesswhichisdueinSeptember2015andfurtherworkalsocontinuesinrespectofAPAsfeasibilityprocessoutsideoftheNorthernTerritoryGov

100、ernmentprocess.Western Australia West Coast GridInWesternAustralia,APAsassetsserveavarietyofcustomersintheresources,industrialandutility(mainlyinthePertharea)sectors.TheGoldfieldsGasPipeline(“GGP”)andPilbaraPipelineSystembothexperiencedstrongorganicgrowthfromresourcesectorcustomersinFY2015.Intheener

101、gyprecinctthatisdevelopingaroundthePertharea,theMondarraGasStorageFacilitysawsolidorganicgrowth.TheGGPexpansionprojectwascompletedduringtheyear.FY2015resultswerepositivelyaffectedbythenearfullyearcontributionfromthisexpansion.APAmanagedthe$150millionexpansionprojectonbehalfoftheGoldfieldsGasTransmis

102、sionJointVenture(“GGTJV”)throughwhichAPAowns88.2%oftheGGP.ContractswithRioTintoandMountNewmanJointVenture(85%ownedbyBHP),thatsupportedtheexpansion,wereenteredintoduringFY2012.Duringthefinancialyear,APAcommencedconstructionofthenew293kilometreEasternGoldfieldsPipeline(“EGP”).Thisprojectisunderwritten

103、bytwogastransportationagreementsexecutedbetweenAngloGoldAshanti(“Anglogold”)andAPAinJuly2014forthetransportationofnaturalgastoAngloGoldsSunriseDamOperationsandtheTropicanaOperationsjointlyownedbyAngloGoldandIndependenceGroupNL,locatedintheeasternGoldfieldsregion.TheEGPwillconnectAPAsexistinginfrastr

104、ucture,theGoldfieldsGasPipelineandtheMurrinMurrinLateraltotherespectiveminesitelocations,withcommissioningexpectedaroundthemiddleofFY2016.Undertheagreements,APAwilltransportgasacrossatotaldistanceof1,500kilometrestotheminesthroughAPAsthreeinterconnectedpipelines.3.2 AssetManagementAPAprovidesassetma

105、nagementandoperationalservicestothemajorityofitsenergyinvestmentsandtoanumberofthirdparties.ItsmaincustomersareAustralianGasNetworksLimited(“AGN”,formerlyEnvestraLimited),EthanePipelineIncomeFund,EnergyInfrastructureInvestmentsandGDI.Assetmanagementservicesareprovidedtothesecustomersunderlongtermcon

106、tracts.Revenue(excludingpass-throughrevenue)fromassetmanagementservicesdecreasedby$14.1millionor14.2%to$85.1million(2014:$99.2million)andEBITDA(forcontinuingbusinesses)alsodecreasedby$18.1millionor26.8%to$49.4million(2014:$67.6million).1)ConsumerPriceIndex.10APA Group|Annual Report 2015AUSTRALIAN PI

107、PELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUEDASSET MANAGEMENT REVENUE ASSET MANAGEMENT EBITDAA$100m755025FY11One-off Customer ContributionsFY12FY13FY14FY150Underlying Asset Management EBITDAA$80m406020FY11One-off Customer ContributionsFY12FY13FY14FY150Underlying Asset Management

108、 EBITDAThisdecreaseinrevenueandEBITDAisduetoareductionincustomercontributionsforrelocatingAPAinfrastructure,to$3.6millioncomparedwith$23.4millioninthelastfinancialyear.Thiswaspartiallyoffsetbyanincreaseinassetmanagementfees.Ascanbeseeninthegraphbelow,therecontinuetobeannualswingsincustomercontributi

109、ons,asthesearedrivenbyourcustomersworkprogrammesandrequirements.Overanumberofyears,thelongtermannualaveragerevenuereceivedforthisworkhasbeenapproximately$10millionperannum.CUSTOMER CONTRIBUTIONS ENERGY INVESTMENT REVENUE&EBITDAA$30m20FY11FY12FY13FY14FY150Average$9.9mA$80m604020FY11Divested&transferr

110、ed investmentsFY12FY13FY14FY150Continuing investmentsAsmentionedpreviously,APAsoldits33.05%stakeinAGNduringthefinancialyear,however,theoperatingandmaintenanceagreementsremainonfootuntilmaturityin2027.3.3 EnergyInvestmentsAPAhasinterestsinanumberofcomplementaryenergyinvestmentsacrossAustralia,includi

111、ngSEAGasPipeline,EnergyInfrastructureInvestments(“EII”),EthanePipelineIncomeFund,EII2,GDIandDiamantinaandLeichhardtPowerStations(collectively“DPS”).APAholdsanumberofrolesinrespectofmostoftheseinvestments,inadditiontoitsownershipinterest.Allinvestmentsareequityaccounted,withtheexceptionofAPAs6%intere

112、stinEthanePipelineIncomeFund.APAdivestedits33.05%interestinAustralianGasNetworksLimited(“AGN”,formerlyEnvestraLimited)on7August2014.AsaresulttherewasnomaterialcontributionfromAGNtotheFY2015results.BothpowerstationsatDPSwerecommissionedduringthefinancialyear.ContributionfromDPSisapproximatelyforthe6m

113、onthsthatthepowerstationshavebeeninoperation.EBITDAfromcontinuinginvestmentsincreasedby20.9%to$21.8million(2014:$18.0million),drivenbyincreasedcontributionfromGDI,EII2andSEAGasPipeline,inparticular.3.4 CorporateCostsFromthisfinancialyear,APAwillseparateoutcorporatecostsfromoperatingbusinesssegmentEB

114、ITDAreporting.Bydoingthis,itisexpectedthatsecurityholderswillbeabletobetterunderstandtheunderlyingperformanceoftheoperatingbusinessesandthecostsforAPAtooperateandmanagethesebusinesses.Duringthefinancialyear,corporatecostsincreased,slightly,by1.4%overthepreviousyearto$73.6million(2014:$72.5million).C

115、orporatecostshavetrendeddownasaproportionofrevenueandtotalEBITDAoverthelastfewyears.Moreover,ascanbeseeninthegraphsbelow,asthebusinesshasgrownsignificantlybothintermsofinvestorreturnsandbalancesheet,APAscorporatecostshaveremainedrelativelysteady,demonstratingtheefficientscalabilityofAPA.11APA Group|

116、Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUEDCORPORATE COSTS TO CONTINUING BUSINESSES EBITDA CORPORATE COSTS VS BUSINESS GROWTHA$1,000m600800200400FY11Continuing businesses EBITDA(LHS)FY12FY13FY14FY15014%810124260Corporate costs/Continuing business

117、es Operating EBITDA(RHS)A$1,200m8004002006001,000FY11Revenue(LHS)FY12FY13FY14FY150A$18b12931560Corporate costs(LHS)Total Assets(RHS)Enterprise value(RHS)EBITDA(LHS)Infact,whilstrevenue,EBITDA,totalassetsandtotalenterprisevaluehavegrownatacompoundannualgrowthrate(“CAGR”)ofbetween14%and39%overthelastf

118、iveyears,corporatecostshavegrownatasignificantlylower5.8%CAGR.20152011ChangesYearended30June$million$million%Revenue11,094 62814.9%EBITDA2821 42517.9%Totalassets14,653 5,42828.2%Marketcapitalisation9,182 2,47038.9%Enterprisevalue317,413 5,61532.7%Corporatecosts74 595.8%Corporatecosts/EBITDA2(%)8.2%1

119、2.1%Notes:1)Continuingbusinessesrevenue,excludingpass-throughrevenue.2)ContinuingbusinessesEBITDA.3)Marketcapitalisationplusnetdebtasatendoffinancialyear.3.5 RestatementofhistoricalsegmentEBITDAFromthisreportingperiod,APAwillreportitssegmentEBITDAexclusiveofcorporatecoststoprovideaclearerpictureofth

120、eperformanceoftheunderlyingassetswithinthebusiness.Forprioryearcomparisonpurposes,thefollowingtablerestatessegmentEBITDAforthelast5years.20152014 2013 1 2012 2011Yearended30June$000$000$000$000$000EBITDA(continuing businesses)EnergyInfrastructureQueensland340,131 234,459180,65291,01681,966NewSouthWa

121、les120,808 115,569120,243122,789111,764Victoria130,170 127,616136,869138,292128,815SouthAustralia1,940 2,3802,4192,1102,136WesternAustralia212,604 188,947149,404133,886108,093NorthernTerritory17,954 15,21413,50210,6335,577Energy Infrastructure total 823,607 684,185 603,089 498,726 438,351AssetManage

122、ment49,448 67,55251,55335,56342,517EnergyInvestments21,783 18,02015,6359,5803,165Corporatecosts(73,579)(72,536)(64,488)(63,594)(58,754)Total segment EBITDA821,259 697,221605,789480,275425,279Divestedbusiness299150,11356,15455,21364,309Total EBITDA before significant items822,250747,334661,943535,488

123、489,588Significantitems3447,240101,685(9,663)2,521Total EBITDA 1,269,490747,334763,628525,825492,109Notes:Numbersinthetablemaynotaddupduetorounding.1)APAadoptedrevisedAASB119duringFY2014.Astherevisedstandardmustbeappliedretrospectively,comparativenumbershavebeenrestated.2)AustralianGasNetworksLimite

124、d(formerlyEnvestraLimited)soldinFY2014,MoombaAdelaidePipelineSystemsoldinFY2013,APAGasNetworkQueensland(Allgas)soldintoGDI(EII)PtyLtdinFY2012.3)Significantitems:FY2015relatestonetproceedsrealisedfromthesaleofAPAsinvestmentinAustralianGasNetworksLimited(formerlyEnvestraLimited)aswellasthesuccessfulre

125、coveryoffeespaidbyHastingsDiversifiedUtilitiesFundtoHastingsFundsManagementLimited.FY2013relatesprimarilytoone-offitemsassociatedwiththeHDFacquisition.FY2012relatestotheprofitlesstransactioncostsonthesaleofAllgas.FY2011relatestoanumberofone-offnon-operatingitems.12APA Group|Annual Report 2015AUSTRAL

126、IAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUED4.Capital and investment expenditureCapitalexpenditure(includingstay-in-businesscapitalexpenditure)forthefinancialyeartotalled$396.3millioncomparedwith$446.7millionlastfinancialyear.Growthprojectexpenditureof$343.1million(2014:$

127、382.5million)wasinrespectofpipelinecapacityexpansionintheVictoriaNewSouthWalesInterconnect,additionalcompressionfacilitiesatMoombaandWallumbillaandconstructionoftheEasternGoldfieldsPipelineinWesternAustralia.Thesecapitalexpendituresweregenerallyeitherfullyunderwrittenthroughlong-termcontractualarran

128、gementsorhaveregulatoryapprovalthrougharelevantaccessarrangement.Themajorityofinvestmentexpenditureforthefinancialyearof$5,888.0million(2014:$126.1million)relatedtotheWallumbillaGladstonePipelineacquisitioncompletedinJune2015,withasmallportionattributabletocompletionoftheDiamantinaPowerStation.Capit

129、alandinvestmentexpenditureforthefinancialyearisdetailedinthetablebelow.Capitalandinvestmentexpenditure1Descriptionofmajorprojects2015$million2014$millionGrowth expenditureRegulatedVictoria-NSWInterconnectlooping&compression,Winchelseacompression136.165.5MajorprojectsQueenslandWallumbillaandMoombacom

130、pression104.4206.6NewSouthWalesMoombaSydneyPipelinesouthernexpansion12.413.2WesternAustraliaEasternGoldfieldsPipelinedevelopment,GoldfieldsGasPipelineexpansions64.273.4OtherVictorianmeteringandLNG,maintenancesystem,enterpriseassetmanagementsystemsandprocesses26.323.8207.0317.0Total growth capex343.1

131、382.5Stay-in-businesscapex50.645.1CustomercontributionsPiperelocationsforcouncils,PilbaraPipelinerelocation2.719.1Total capital expenditure396.3446.7AcquisitionsWallumbillaGasPipeline5,866.8EnergyInvestmentsDiamantinaPowerStationjointventure21.2126.1Total investment expenditure5,888.0126.1Total capi

132、tal and investment expenditure6,284.3572.8Notes:Numbersinthetablemaynotaddupduetorounding.1)Thecapitalexpenditureshowninthistablerepresentsactualcashpaymentsasdisclosedinthecashflowstatement,andexcludesaccrualsbroughtforwardfromthepriorfinancialyearandcarriedforwardtonextfinancialyear.13APA Group|An

133、nual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUEDAscanbeseeninthemapbelow,APAcontinuestoworkonprojectsaroundthecountryandmaintainsguidancefor$300millionto$400millionofannualorganicgrowthcapitalexpenditureleveloverthenextcoupleofyears.ACTUAL AND COMMITTED

134、 MAJOR CAPITAL EXPENDITURE PROJECTS GROWTH CAPITAL EXPENDITURE1234MOUNTISAMOOMBAWALLUMBILLASYDNEYADELAIDEBRISBANEMELBOURNEGLADSTONEDARWINPERTH1910101112112873445656789101112Goldfields Gas Pipelineexpansions completedDiamantina Power StationcompletedWallumbilla and Moombacompressions installedBi-dire

135、ctional capability onBerwyndale Wallumbilla andSouth West Queensland PipelinesWallumbilla GladstonePipeline acquisitionIntegrated OperationsCentre openedWinchelsea compression installedVictoria-New South WalesInterconnect expansion to118Tj/d completed(VictorianTransmission System and MoombaSydney Pi

136、peline southern lateral)Eastern Goldfields Pipelineconstruction commencedNT Link feasibility study continuesBi-directional capability on RomaBrisbane and Moomba SydneyPipelines due 1Q FY16Expansion work for further 30TJ/dcapacity increase commencedA$400m200300100FY12A1FY13A FY14 FY15 FY16 FY170Commi

137、ttedActualCapex guidance range1)FY12 guidance was for$200m+103COMPLETED PROJECTSONGOING PROJECTS5.Financing Activities5.1 CapitalmanagementAPAissuedatotalof278,556,562newsecuritiesbetween23December2014and28January2015(inclusive),raising$1.84billiontoprovidefundinginsupportoftheacquisitionoftheWallum

138、billaGasPipeline(formerlyQCLNGPipeline)andAPAsongoingcapitalneeds.Thenewsecuritieswereissuedat$6.60persecurityasaresultofaone-for-threeacceleratedrenounceableentitlementoffertoexistingsecurityholders.Asat30June2015,1,114,307,369securitieswereonissue(2014:835,750,807).DuringthefinancialyearAPAcomplet

139、edthefollowingfinancings:inDecember2014,APAestablishedaUS$4.1billiontwo-yearsyndicatedbridgefacilitytoprovidecertaintyoffundingfortheWallumbillaGladstonePipelineacquisition.US$4.1billionofthefacilitywascancelledinMarch2015,followingAPAssuccessfulissuanceofbondsintheinternationaldebtcapitalmarkets(de

140、tailedbelow).ThebalanceofUS$100millionisasyndicatedrevolvingcreditfacilitythatremainsavailabletoAPAtoprovideflexibilityinrespectofworkingcapitalneeds;inMarch2015,APAissuedEUR1,350millionandGBP600millionoffixedrateMediumTermNotes(MTNs)fromitsEuroMediumTermNoteprogramfollowingasuccessfulmarketingproce

141、ssaimedatraisinglongertermborrowingstofundtheacquisitionoftheWallumbillaGladstonePipelineandforAPAsongoingcorporateneeds.TheMTNswereissuedinthreetranches:EUR700millionofseven-yearnotesatafixedcouponof1.375%;EUR650millionof12-yearnotesatafixedcouponof2.0%;andGBP600millionof15-yearnotesissuedatafixedc

142、ouponof3.5%.ProceedsfromtheMTNswereswappedintoapproximatelyUS$2.3billionandAPAwillretainthefundsinUSdollarsatanall-inweightedaveragefixedrateofapproximately4.2%perannum;andinMarch2015,APAissuedUS$1.4billionofseniorguaranteednotesintheUnitedStates144Adebtcapitalmarket.Thenoteswereissuedintwotranches:

143、US$1,100millionof10-yearnotesatafixedcouponof4.2%;andUS$300millionof20-yearnotesatafixedcouponof5.0%.At30June2015,APAsdebtportfoliohasabroadspreadofmaturitiesextendingouttoFY2035,withanaveragematurityofdrawndebtof8.5years1.APAsgearing2of63.4%at30June2015wasdownslightlyfrom64.2%at30June2014.APAremain

144、swellpositioned,atthislevel,tofunditsplannedorganicgrowthactivitiesfromavailablecashandcommittedresources.1)USDdenominateddebthasbeennominallyexchangedatAUD/USDexchangerateatrespectiveinceptiondateof0.7772forEuroandGBPMTNissuancesand0.7879forUS144Anotes.2)Gearingratiodeterminedinaccordancewithcovena

145、ntsincertainseniordebtfacilitiesasnetdebttonetdebtplusbookequity.14APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUEDAPA DEBT MATURITY PROFILE AND DIVERSITY OF FUNDING SOURCESA$2,000m1,0001,500500FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25FY26FY2

146、7FY28FY29FY30FY31FY32FY33FY34FY350Bank borrowingsUS Private Placement NotesPublic bonds swapped into AUD(AUD,CAD,JPY,Sterling,US144A)Public bonds swapped into USD(Euro,Sterling,US144A)First call date 60yrSubordinated NotesAt30June2015,APAhadaround$1,587millionincashandcommittedundrawnfacilitiesavail

147、abletomeetthecontinuedcapitalgrowthneedsofthebusiness.SubsequenttotheendofFY2015,APAestablishedanew$830millionsyndicatedbankfacility,replacingtheexisting$1.1billionsyndicatedfacility.ThishasreducedAPAscashandavailable,committed,undrawnfacilitiestoaround$1.3billion.Thenewfacilitycomprisesthreetranche

148、s:$311.25millionmaturinginSeptember2017;$311.25millionmaturinginSeptember2018;and$207.50millionmaturinginSeptember2020.APAhasaprudenttreasurypolicywhichrequiresconservativelevelsofhedgingofinterestrateexposurestominimisethepotentialimpactsfromadversemovementsininterestrates.Otherthannotedbelow,allin

149、terestrateandforeigncurrencyexposuresondebtraisedinforeigncurrencieshavebeenhedged.Themajorityoftherevenuestobereceivedoverthenext20yearsfromthefoundationcontractsontheWallumbillaGladstonePipelinewillbereceivedinUSD.TheUS$3.7billionofdebtraisedinMarch2015isconsideredtobea“designatedhedge”fortheserev

150、enuesandthereforehavebeenkeptinUSD.NetUSDcashflowafterservicingtheUSDinterestcoststhatarenotpartofthat“designatedrelationship”willbehedgedonarollingbasisforanappropriateperiodoftime,inlinewithAPAstreasurypolicy.APAalsoentersintointerestratehedgesforaproportionoftheinterestrateexposureonitsfloatingra

151、teborrowings.Asat30June2015,94.0%(2014:72.8%)ofinterestobligationsongrossborrowingswereeitherhedgedintoorissuedatfixedinterestratesforvaryingperiodsextendingoutinexcessof19years.5.2 BorrowingsandfinancecostsAsat30June2015,APAhadborrowingsof$8,643million1($4,789millionat30June2014)fromamixofsyndicate

152、dbankdebtfacilities,bilateraldebtfacilities,USPrivatePlacementNotes,MediumTermNotesinseveralcurrencies,AustralianMediumTermNotes,UnitedStates144ANotesandAPAGroupSubordinatedNotes.Excludingsignificantitems,netfinancecostsdecreasedby$0.9million,or0.3%,to$324.2million(2014:$325.1million).Thedecreaseisp

153、rimarilyduetoproceedsfromthesaleofsharesinAGNappliedtoreducedebtandtointerestincomefromtermdepositsreceivedduringthepre-settlementperiodoftheacquisitionoftheWallumbillaGladstonePipeline.Theaverageinterestrate(includingcreditmargins)applyingtodrawndebtwas6.76%1forthefinancialyear(2014:7.12%).APAsinte

154、restcoverratio2forthefinancialyear,at2.59times(2014:2.31times),remainswellinexcessofitsdebtcovenantdefaultratioof1.1timesanddistributionlockupratioof1.3times.5.3 CreditratingsAPTPipelinesLimited,theborrowingentityofAPA,maintainedthefollowingtwoinvestmentgradecreditratingsduringthefinancialyear:BBBlo

155、ng-termcorporatecreditrating(outlookStable)assignedbyStandard&Poors(S&P)inJune2009,andlastconfirmedon10December2014;andBaa2long-termcorporatecreditrating(outlookStable)assignedbyMoodysInvestorsService(Moodys)inApril2010,andlastconfirmedon10December2014.1)USDdenominateddebthasbeennominallyexchangedat

156、AUD/USDexchangerateatrespectiveinceptiondateof0.7772forEuroandGBPMTNissuancesand0.7879forUS144Anotes.2)Forthecalculationofinterestcover,significantitemsareexcludedfromtheEBITDAused.15APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUED5.4 Income

157、taxIncometaxexpense(includingsignificantitems)forthefinancialyearof$177.2millionresultsinaneffectiveincometaxrateof24.0%.TheFY2014profitaftertaxincludedasignificantitemof$144.1millionrelatingtoaone-offadjustmenttotaxexpensetoreflectachangeinthetreatment,fortaxdepreciationpurposesonly,ofvariouscapita

158、lassetsacquiredinFY2007.ThisresultedinanincometaxbenefitforFY2014of$77.7million.Excludingsignificantitems,theeffectiveincometaxrateforthefinancialyearis28.2%whichishigherthanthe25.0%inthepreviousyearduetoAPAceasingtoequityaccounttheEnvestrainvestmentandtotheincreaseinnon-deductibleamortisationoncont

159、ractintangiblesduringtheyear.Afterutilisationofallavailablegrouptaxlossesandpartialutilisationofavailabletransferredtaxlosses,anincometaxprovisionof$7.2mhasbeenrecognisedasat30June2015.5.5 DistributionsDistributionspaidtosecurityholdersduringthefinancialyearwere:Final FY2014 distributionInterimFY201

160、5distributionpaid 10 September 2014paid18March2015Total distributionTotaldistributionCents per security$000Centspersecurity$000APTprofitdistribution16.42137,23915.12 126,396APTcapitaldistribution APTITprofitdistribution2.3319,4652.38 19,860APTITcapitaldistribution 18.75156,704 17.50 146,256On26Augus

161、t2015,theDirectorsdeclaredafinaldistributionforAPAforthefinancialyearof20.50centspersecuritywhichispayableon16September2015andwillcomprisethefollowingcomponents:FinalFY2015distributionpayable16September2015TotaldistributionCentspersecurity$000APTprofitdistribution18.12 201,945APTcapitaldistribution

162、APTITprofitdistribution2.38 26,488APTITcapitaldistribution 20.50 228,433Totaldistributionforthefinancialyearended30June2015is38.0centspersecurity,anincreaseof1.75cents,or4.8%,onthe36.25centspersecuritypaidinrespectoftheyearended30June2014.Distributioninformationispresentedonanaccountingclassificatio

163、nbasis.TheAPAGroupAnnualTaxStatementandAnnualTaxReturnGuide(tobereleasedinSeptember2015)willprovidetheclassificationofdistributioncomponentsforthepurposesofpreparationofsecurityholderincometaxreturns.5.6 TotalsecurityholderreturnDuringthefinancialyear,APAsmarketcapitalisationincreasedby59.5%to$9.2bi

164、llionat30June2015.APAstotalsecurityholderreturnforthefinancialyear,whichaccountsfordistributionspaidplusthecapitalappreciationofAPAssecuritypriceandassumesthereinvestmentofdistributionsatthedeclaredtime,was30.0%,placingAPAinthetop21stpercentileofoneyeartotalshareholderreturnsforthefinancialyear1.APA

165、stotalsecurityholderreturnsincelistingontheASXis1,304%,acompoundannualgrowthrateof19.2%.ThetablebelowprovidessecurityholderswithanunderstandingofthegrowthinvalueofAPAsecurities,excludingvalueraisedthroughcapitalraisingactivities,duringFY2015aswellassincelisting.FY2015SinceListingNumberofPriceperMark

166、etNumberofPriceperMarketsecuritiessecuritycapitalisationsecuritiessecuritycapitalisation(million)($/security)($million)(million)($/security)($million)Beginningofperiod835.8$6.89$5,758.3244.0$2.00$488.0Capitalraised2278.6$6.60$1,838.5870.3$2.50-$6.60$4,254.5Endofperiod1,114.3$8.24$9,181.91,114.3$8.24

167、$9,181.9Growthinvalueoverperiod$1,585.1$4,439.41)FiguresquotedaresourcedfromIRESSandmeasuredasat30June2015.2)Sincelisting,APAhasundertakenavarietyofcapitalraisingactivitiesincludingrightsissues,placementsanddividendreinvestmentplans.ForFY2015,thisrelatestothe1-for-3rightsissueconducted.16APA Group|A

168、nnual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUEDAPA TOTAL SECURITYHOLDER RETURN SINCE LISTING TO 30 JUNE 2015APA total securityholder returnUtilities Accumulation IndexS&P/ASX 200 Accumulation Index4000JUN 00JUN 01JUN 02JUN 03JUN 04JUN 04JUN 06JUN 07JU

169、N 08JUN 09JUN 10JUN 11JUN 12JUN 13JUN 14JUN 151,2001,6008005.7 Guidanceforthe2016financialyearBasedoncurrentoperatingplans,APAexpectsstatutoryEBITDAforthefullyearto30June2016tobeinarangeof$1,275millionto$1,310million.Onanormalised,continuingbusinessesbasis,EBITDAisexpectedtoincreasebyapproximately55

170、%to60%onthe2015financialyearcontinuingbusinessEBITDA.ThisincludesacontributionofaroundUS$355millionfromthenewlyacquiredWallumbillaGladstonePipelineandgrowthacrosstheremainderoftheAPAportfolioofbetween3%and7%.APAhasenteredintoforwardexchangecontractsforFY2016,forthenetUSDcashflowfromthegastransportat

171、ionagreementsfortheWallumbillaGladstonePipeline(“WGP”),afterservicingUSDdenominateddebt.InforecastingAUDequivalentEBITDAcontributionfromWGP,wehaveusedtheforwardexchangeratesforthesehedgedrevenues.Anydifferencesinthehedgedrateandtheactualratewillbeaccountedforinthehedgereserveaccountwithintheequitypo

172、rtionofAPAsbalancesheet.Netinterestcostisexpectedtobeinarangeof$500millionto$510million.Growthcapitalexpenditureisexpectedtoremainintherangeof$300millionto$400millionforFY2016.Distributionspersecurityforthe2016financialyearareexpectedtobeatleastequaltothosepaidinrespectofthe2015financialyear,thatis,

173、atleast38.0centspersecurity.Changes2016guidance2015actualYearended30June$000$000$000%NormalisedEBITDAfromcontinuingbusinesses1,275to1,310821.3454to48955%to60%Netinterestcost500to510324.2176to18654%to57%StatutoryEBITDA300to400343.1DistributionpersecurityAtleast38.038.06.Regulatory mattersKeyregulator

174、ymattersaddressedduringthefinancialyearincluded:GoldfieldsPipelineaccessarrangementInAugust2014,arevisedaccessarrangementproposalwassubmittedtotheEconomicRegulationAuthorityofWesternAustralia.APAhasrespondedtoaseriesofqueriesbytheregulatoronthatproposal.TheregulatorwillissueadraftdecisiontowhichAPAw

175、illthenprovideafurtherresponsebeforetheregulatormakesafinaldecision,whichisestimatedtooccurbyDecember2015.Thecurrenttariffsareapplicableuntiltheregulatorsfinaldecisionbecomesoperative.GDIbecomessubjecttolight-handedregulationAPAholdsa20%interestinGDI.DuringtheyearAPA,onbehalfofGDI,successfullyhadthe

176、regulatorystatusoftheGDInetworkchangedfromfulleconomicregulationtolight-handedregulation,loweringthecostofregulationincurredbythenetwork.GasPolicydevelopmentsTheongoingunprecedentedchangesintheEasternAustraliangasmarkethaveresultedinnumerousgovernmentalreviewsandinquiriesintopolicysettings.APAhasbee

177、nanactiveparticipantinthesereviews,highlightingthesignificantcontributionthatourportfolioofpipelineassetscoupledwithourresponsivecustomerserviceshasmadetothedevelopmentofthegasmarket.7.Health,safety and environmentHealthandsafetyreportingTheLostTimeInjuryFrequencyRate(“LTIFR”)1forAPAwas0.64(foremplo

178、yeesandcontractors)forthefinancialyear,downfrom0.80inthelastfinancialyear.Thereweretwoemployeeandtwocontractorlosttimeinjuriesduringthefinancialyear.TheTotalRecordableInjuryFrequencyRate2forAPAwas8.11(foremployeesandcontractorscombined)inFY2015,areductionof8.89from17.00inthelastfinancialyear.APAaims

179、tobeazeroharmworkplaceforitsemployees,contractorsandthebroadercommunitiesinwhichitoperates.DuringFY2014,APAlaunchedathreeyearStrategicImprovementPlanandintroducedatailoredlistofriskbasedinitiativesaspartoftheplan.1)LostTimeInjuryFrequencyRateiscalculatedasthenumberoflosttimeinjuries(injurieswhichres

180、ultinthelossofatleastonefullshift),multipliedbyonemillion,dividedbythetotalhoursworked.2)TotalRecordableInjuryFrequencyRateiscalculatedusingthesameformulaasLTIFRwiththeaddedinclusionofallmedicallytreatedinjuries.17APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIREC

181、TORS REPORT CONTINUEDTheStrategicImprovementPlanandeachinitiativefollowtheRiskControlAssureframework.Oneriskwhichwasidentifiedduringtheyearasrequiringadditionalcontrolswasdriving.Asafedrivinginitiative,calledSafedrive+hasbeenaddedtothestrategicplan.Thisinitiativewillprovidetherequisitelevelofcontrol

182、andtrainingforallAPAdrivers,passengersandcontractors,aswellasaminimumstandardvehiclespecification.Otherkeyinitiativesimplementedduringthefinancialyearinclude:RelaunchtotheLeading Zero Harm behaviouralprogram,calibrationofthehazardprofileprocess,thecompletionofthehazardidentificationprocessandriskbas

183、edandsystemaudits.The implementation of Safeguard+APAsonlinehealth,safetyandenvironment(“HSE”)repositorywentliveinDecember2014.Theplatformhasalreadyprovidedthebusinesswithmuchimproveddisciplinesforreporting,communicating,investigatingandactioningHSEfailureswhilstalsoprovidinganeasytousereportingsuit

184、ewhichprovidesvastlyimprovedHSEdataandanalysis.A tailored contractor management systemThenewsystemprovidestoolsandprocessesforthebusinesstoappropriatelyassessandmonitorcontractorperformance.ItrequirescompliancewithAPAprocurementandHSEstandardsensuringalignmentwithregardstoapproachtoHSE.APAencourages

185、healthylivingandcontinueditssponsorshipforemployeeswhoparticipateintheGlobalCorporateChallenge.Inaddition,APAcompletedacompanyhealthandwellbeingriskprofileofemployees.Theprogramsurveyedandtestedasampleof284employeesacrossthebusiness.Theresultswillbeusedtodevelophealthandwellbeingprograms.Environment

186、alregulationsAllpipeline,distributionandgasprocessingassetsownedand/oroperatedbyAPAaredesigned,constructed,tested,operatedandmaintainedinaccordancewithpipelineanddistributionlicencesissuedbytherelevantStateandTerritorytechnicalregulators.AlllicencesrequirecompliancewithrelevantFederal,StateandTerrit

187、oryenvironmentallegislationandAustralianstandards.ThepipelinelicencesalsorequirecompliancewiththeAustralianStandardAS2885“PipelinesGasandLiquidPetroleum”,whichhasspecificrequirementsforthemanagementofenvironmentalmattersassociatedwithallaspectsofthehighpressurepipelineindustry.ConstructionEnvironmen

188、talManagementPlanssatisfyingSection6oftheAustralianPipelineGasAssociationCodeofEnvironmentalPracticearepreparedasneeded.MajorprojectconstructionactivitiesareauditedorinspectedinaccordancewithEnvironmentalManagementPlanrequirements.InaccordancewithPart3ofAS2885,EnvironmentalManagementPlanssatisfyingS

189、ection7oftheCodeareinplaceforalloperatingpipelinesandaremanagedinaccordancewithAPAscontractsandthetermsandconditionsofthelicencesthatAPAhasbeenissued.TheSafetyandOperatingPlanforthedistributionnetworksthatAPAoperateshasbeenauditedduringthefinancialyear,inaccordancewithNewSouthWalestechnicalregulator

190、yrequirements.SeniormanagementreviewsauditreportsandanymaterialbreachesarecommunicatedtotheBoard.TheBoardreviewsexternalauditreportsand,onamonthlybasis,theinternalreportspreparedrelatingtoenvironmentalissues.NosignificantbreacheshavebeenreportedduringthefinancialyearandAPAhasmanageditsassetsinaccord

191、ancewiththerelevantEnvironmentalManagementPlans.EnvironmentalreportingInOctober2014,APAcompliedwithAustraliasNationalGreenhouseandEnergyReporting(“NGER”)obligationsfortheFY2014.EnergyreportingforFY2015willbesubmittedinOctober2015.APAsmainsourcesofemissionsarefromthecombustionofnaturalgasincompressor

192、stationsandfromfugitiveemissionsassociatedwithnaturalgaspipelines.NGERcompliancereportingappliedtoassetsunderAPAsoperationalcontrol,whichincludetheRomaBrisbanePipeline,theMoombaSydneyPipeline,theSouthWestQueenslandPipeline,theNorthernTerritoryNaturalGasDistributionNetwork,theGoldfieldsGasPipeline(88

193、.2%ownership),theDiamantinaPowerStation(50%equityownership)andtheGDIgasdistributionnetwork(20%equityownership).APAssummaryofScope1emissionsandenergyconsumptionforthe2014financialyeararesetoutinthefollowingtable:Financialyear20142013ChangeScope1CO2emissions(tonnes)311,421322,827(11,406)(3.5)%Energyco

194、nsumption(GJ)6,425,0422,791,839(3,633,203)(130.1)%8.Risk overviewAPAidentifiesriskstothebusinessandputsinplacemitigationactionstoremoveorminimisethenegativeimpactandmaximisetheopportunitiesinrespectoftheserisks.MaterialrisksarereviewedonanongoingbasisbyAPAsExecutiveRiskManagementCommitteeandtheBoard

195、AuditandRiskManagementCommittee,togetherwiththerelevantbusinessunitsandinternalexperts.FurtherinformationonthisprocessisprovidedinAPAsCorporateGovernanceStatement(refertoPrinciple7)andtheSustainabilityReport(partoftheAnnualReview).Riskassessmentconsidersacombinationoftheprobabilityandconsequenceofri

196、sksoccurring.ListedbelowareanumberofkeyrisksidentifiedthatcouldmateriallyaffectAPAnegatively.However,theriskslistedmaynotincludeallrisksassociatedwithAPAsongoingoperations,thematerialityofrisksmaychangeandpreviouslyunidentifiedrisksmayemerge.KeyrisksEconomic regulationAPAhasanumberofpriceregulatedas

197、setsandinvestmentsinitsportfolio.Regulatorypricingperiodsgenerallyrunforfiveyearsandreflecttheregulatorsdeterminationof,amongstothermatters,APAsprojectedoperatingandcapitalcosts,andweightedaveragecostofcapital.ThepriceregulationoutcomesdeterminedbytheAustralianEnergyRegulatororEconomicRegulationAuth

198、ority(forWesternAustralia)underanaccessarrangementprocessforafullregulationassetmayadverselyaffectAPAsrevenueinrespectofthatasset.18APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUEDAnumberofAPAsassetsaresubjecttolightregulationwhich,whilenota

199、priceregulationregime,doesenabletheregulatortoarbitrateanydisputeswithcustomersonpriceandothertermsofaccess.Inaddition,undertheNationalGasLaw,anypersonmaymakeanapplicationthatanunregulatedpipelinebecome“covered”andsubjecttoeconomicregulation,whichmayadverselyaffectAPAseconomicposition.Bypass and com

200、petitive riskBypassandcompetitiveriskoccurswhenanewtransmissionpipelineoffersgastransportationservicestothesameendmarketservicedbyexistingpipelines.Ifabypassriskeventuates,APAsfutureearningscouldbereducedifcustomerspurchasegastransportationservicesfromnewpipelinesratherthanfromAPAsexistingpipelines.

201、Gas demand riskReduceddemandforgasandincreaseduseofgasswapcontractsbycustomersmayreducethefuturedemandforpipelinecapacityandtransportationservicesandadverselyimpactAPAsfuturerevenue,profitsandfinancialposition.Gas supply riskAlong-termshortageofcompetitivelypricedgas,eitherasaresultofgasreservedeple

202、tion,allocationofgastoothermarkets,ortheunwillingnessorinabilityofgasproductioncompaniestoproducegas,mayadverselyaffectAPAsrevenueandthecarryingvalueofAPAsassets.Counterparty riskThefailureofacounterpartytomeetitscontractualcommitmentstoAPA,whetherinwholeorinpart,wouldreducefutureanticipatedrevenueu

203、nlessanduntilAPAisabletosecureanalternativecustomer.Counterpartyriskalsoariseswhencontractsareenteredintoforderivativeswithfinancialinstitutions.Interest rates and refinancing risksAPAisexposedtomovementsininterestrateswherefloatinginterestratefundsarenoteffectivelyhedged.Thereisariskthatadverseinte

204、restratemovementsmayaffectAPAsearnings,bothdirectly(throughincreasedinterestpayments)andindirectly(throughtheimpactonassetcarryingvalues).APAhasborrowingsextendingthroughto2035.Accesstocontinuingfinancingsourcestoextendand/orrefinancedebtfacilitieswillbeimportant.Aninabilitytosecurenewdebtfacilities

205、atasimilarquantumandcosttoexistingdebtfacilitiesmayadverselyaffectAPAsoperationsand/orfinancialpositionandperformance.Foreign exchange risksAPAisexposedtomovementsinforeignexchangeratesandthereisariskthatadverseUSD:AUDexchangeratemovementsmayaffectAPAsearnings(throughreducedAUDrevenuesreceivedfromUS

206、Ddenominatedrevenues)anddebtlevels(throughtranslationofUSDdenominateddebt).Investment riskAPAmayacquireinfrastructureandrelatedassetsorundertakeadditionalorincrementalinvestmentinitsexistingassets.Thereisariskthatassumptionsandforecastsusedinmakinginvestmentdecisionsmayultimatelynotberealised,andthi

207、smayadverselyaffectAPAsfinancialpositionandperformance.ThereisalsoariskthatAPAmaybeunabletosecurefurtherappropriateinfrastructureinvestmentsonsuitableterms,therebylimitingitsgrowth.Contract renewal riskAlargepartofAPAsrevenuesarethesubjectoflong-termnegotiatedrevenuecontractswithendcustomers.Duetoar

208、angeoffactors,includingcustomerdemandrisk,gassupplyrisk,counterpartyrisk,shortertermcontractsandbypassandcompetitiverisk,APAmaynotbesuccessfulinrecontractingtheavailablepipelinecapacitywhenitcomesdueforcontractrenewal,andconsequentlymayadverselyimpactAPAsfuturerevenue,profitsandfinancialposition.Ope

209、rational riskAPAisexposedtoanumberofoperationalriskssuchasequipmentfailuresorbreakdowns,ruptureofpipelines,informationtechnologysystemsfailuresorbreakdowns,employeeorequipmentshortages,contractordefault,unplannedinterruptions,damagebythirdparties,integrationofacquiredassetsandunforeseenaccidents.Ope

210、rationaldisruption,orthecostofrepairingorreplacingdamagedassets,couldadverselyimpactAPAsearnings.Insurancepoliciesmayonlyprovideprotectionforsome,butnotall,ofthecoststhatmayarisefromunforeseenevents.Operating licences and authorisationsAllpipeline,distribution,gasprocessing,storageandelectricitygene

211、rationassetsownedand/oroperatedbyAPArequirecompliancewithrelevantlaws,regulationsandpolicies.AnychangesmayhaveanadverseimpactonAPAspricing,costsorcomplianceregimes,whichcouldmateriallyaffectAPAsoperations,earningsand/orfinancialpositionandperformance.Certainlicences,permitsorregulatoryconsentsmaynot

212、berenewed,granted,continuedorsuchrenewal,grantorcontinuationmaybeonmoreoneroustermsorsubjecttolossorforfeiture,whichmayadverselyaffectAPAsoperationsand/orfinancialpositionandperformance.Construction and development riskAPAdevelopsnewassetsandundertakesexpansionofitsexistingassets.Thisinvolvesanumber

213、oftypicalconstructionrisks,includingthefailuretoobtainnecessaryapprovals,employeeorequipmentshortages,higherthanbudgetedconstructioncostsandprojectdelays,whichmayimpactthecommercialityandeconomicsofthedevelopmentorotherwiseimpactonAPAsotherassets.Iftheserisksmaterialise,thismayadverselyaffectAPAsope

214、rationsand/orfinancialpositionandperformance.Disputes and litigation risksInthecourseofitsoperations,APAmaybeinvolvedindisputesandlitigation.ThereisariskthatmaterialorcostlydisputesorlitigationcouldaffectAPAsfinancialpositionandperformance.Credit rating risksThereisnoassurancethatanyratingwillremain

215、ineffectforagivenperiodoftimeorthatanyratingwillnotberevisedorwithdrawnentirelybyaratingagencyinthefutureifinitsjudgement,circumstanceswarrant.APAisundernoobligationtoupdateinformationregardingsuchratingsshouldtheychangeovertime.19APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROL

216、LED ENTITIESDIRECTORS REPORT CONTINUEDDIRECTORS1.Information on Directors and Company SecretaryInformationrelatingtothequalificationsandexperienceoftheDirectorsandCompanySecretaryissetoutbelow:Leonard Bleasel AMFAICD FAIMIndependent ChairmanAppointed28August2007AppointedChairman30October2007Leonard(

217、Len)Bleaselhadalongcareerintheenergyindustrybeforeretiringfrommanagementin2001.HestartedhiscareerinAGLin1958andworkedinavarietyofroles,culminatinginthepositionofManagingDirectorandCEOfrom1990to2001.Lenspastappointmentshaveincludedleadnon-executiveDirectorofQBEInsuranceGroupLimitedandChairmanofFoodla

218、ndAssociatedLimited,ABNAMROAustraliaHoldingsPtyLimited,SolarisPower,NaturalGasCorporationHoldingsLtd(NewZealand),ElgasLtd,EastAustralianPipelineLtdandtheAdvisoryCouncilforCIMBSecuritiesInternational(Australia)PtyLtd.HewasalsoadirectorofStGeorgeBankLimitedandGasValpo(Chile).LeniscurrentlyChairmanofth

219、eTarongaConservationSocietyAustralia.HewasawardedanAMintheGeneralDivisionoftheOrderofAustraliaforservicestotheAustraliangasandenergyindustriesandthecommunity.Michael McCormackBSurv GradDipEngMBA FAICDChief Executive Officer and Managing DirectorAppointedManagingDirector1July2006Michael(Mick)McCormac

220、khasbeenChiefExecutiveOfficerofAPAsince1July2005andManagingDirectorsince1July2006.Hehasover30yearsexperienceinthegasinfrastructuresectorinAustraliaandhiscareerhasencompassedallaspectsofthesectorincludingcommercialdevelopment,design,construction,operationandmanagementofmostofAustraliasnaturalgaspipel

221、inesandgasdistributionsystems.MickisaformerDirectorofEnvestraLimited(nowAustralianGasNetworks),theAustralianPipelineIndustryAssociationandtheAustralianBrandenburgOrchestra.Steven CraneBComm FAICD SF FinIndependent DirectorAppointed1January2011Steven(Steve)Cranehasover30yearsexperienceinthefinancials

222、ervicesindustry.Hisbackgroundisininvestmentbanking,havingpreviouslybeenChiefExecutiveOfficerofABNAMROAustraliaandBZWAustralia.Stevehasconsiderableexperienceasanon-executiveDirectoroflistedbusinesses.HeiscurrentlyChairmanofnibholdingslimitedandDeputyChairmanoftheTarongaConservationSocietyAustralia.He

223、wasformerlyChairmanofAdelaideManagedFundsLimitedandInvestaPropertyGroupLimited,aDirectorofTransfieldServicesLimited,BankofQueenslandLimited,AdelaideBankLimited,FoodlandAssociatedLimitedandAPAEthaneLimited,theresponsibleentityofEthanePipelineIncomeFund,andamemberoftheAdvisoryCouncilforCIMBSecuritiesI

224、nternational(Australia)PtyLimited.SteveisamemberoftheAuditandRiskManagementCommitteeandtheRemunerationCommittee.John FletcherBSc MBA FAICDIndependent DirectorAppointed27February2008JohnFletcherhasover35yearsexperienceintheenergyindustry,havingheldanumberofexecutivepositionsinAGLpriortohisretirementi

225、n2003,includingChiefFinancialOfficer.HebringsbroadfinancialandcommercialexperiencetotheBoardhavingpreviouslybeenaDirectorofIntegralEnergy,NaturalGasCorporationHoldingsLtd(NewZealand),FoodlandAssociatedLimited,SydneyWaterCorporationandAlintaEnergyGroup.JohnwasanAGL-appointedDirectorofAustralianPipeli

226、neLimitedfrom2000to2005.HeistheChairmanoftheRemunerationCommitteeandamemberoftheAuditandRiskManagementCommittee.Russell Higgins AOBEc FAICDIndependent DirectorAppointed7December2004RussellHigginshasextensiveexperience,bothlocallyandinternationally,intheenergysectorandineconomicandfiscalpolicy.HewasS

227、ecretaryandChiefExecutiveOfficeroftheDepartmentofIndustry,ScienceandResourcesfrom1997to2002andChairmanoftheAustralianGovernmentsEnergyTaskForcefrom2003to2004.RussellisaDirectorofTelstraCorporationLimitedandArgoInvestmentsLimited.HeisaformerChairmanoftheGlobalCarbonCaptureandStorageInstitute,theCSIRO

228、EnergyTransformedFlagshipAdvisoryCommitteeandSnowyHydro,aswellasaformerDirectorofLeightonHoldingsLimited,RicegrowersLimited(tradingasSunRice),StJamesEthicsFoundation,AustralianBiodieselGroupLimited,EFICandtheCSIRO.HewasalsopreviouslyamemberofthePrimeMinisterialTaskGrouponEmissionsTrading.RussellisCh

229、airmanoftheHealthSafetyandEnvironmentCommitteeandamemberoftheAuditandRiskManagementCommittee.20APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUEDPatricia McKenzieLLB FAICDIndependent DirectorAppointed1January2011PatriciaMcKenziehasconsiderable

230、expertiseandexperienceinenergymarketregulationand,asaqualifiedsolicitor,extensivecorporatelegalexperience.SheiscurrentlyChairofHealthdirectAustraliaandaDirectorofTransgrid.PatriciawasformerlyaDirectorofMacquarieGeneration,AustralianEnergyMarketOperatorLimited(AEMO),thenationalenergymarketoperatorfor

231、electricityandgas,andChiefExecutiveOfficerofGasMarketCompanyLimited,themarketadministratorforretailcompetitioninthegasindustryinNewSouthWalesandtheAustralianCapitalTerritory.PatriciaisamemberoftheHealthSafetyandEnvironmentCommitteeandtheRemunerationCommittee.Robert WrightBCom FCPAIndependent Directo

232、rAppointed11February2000RobertWrighthasover35yearsfinancialmanagementexperience.DuringhisexecutivecareerhewastheChiefFinancialOfficerofseverallistedcompanies.HehasalsobeenbothanExecutiveDirectorandNonExecutiveDirectorofanumberoflistedcompanies.HeiscurrentlytheChairmanofSuperRetailGroupLimitedandAPAE

233、thaneLimited,theresponsibleentityofEthanePipelineIncomeFund,andwaspreviouslyChairmanofSAIGlobalLimited,DexionLimitedandRCLGroupLimited.RobertistheChairmanoftheAuditandRiskManagementCommitteeandamemberoftheHealthSafetyandEnvironmentCommittee.Mark KnapmanBCom LLB FGIA FCISCompany SecretaryAppointed16J

234、uly2008MarkhasextensiveexperienceasaCompanySecretary.HewasCompanySecretaryandGeneralCounselofanASX-listedcompanyandAsiaPacificLegalCounselandCompanySecretaryforaUSmultinationalcompanypriortojoiningAPA.Priortothoseroles,hewasapartnerofanAustralianlawfirm.MarkisaFellowoftheGovernanceInstituteofAustral

235、iaandtheInstituteofCompanySecretariesandAdministrators,andisadmittedtopracticeasasolicitor.2.Directorships of other listed companiesDirectorshipsofotherlistedcompaniesheldbyDirectorsatanytimeinthethreeyearsimmediatelybeforetheendofthefinancialyearareasfollows:NameCompanyPeriodofdirectorshipLeonardBl

236、easelAMQBEInsuranceGroupLimitedJanuary2001toSeptember2012MichaelMcCormackEnvestraLimitedJuly2007toSeptember2014StevenCranenibholdingslimitedSinceSeptember2010TransfieldServicesLimitedFebruary2008toFebruary2015BankofQueenslandLimitedDecember2008toJanuary2015JohnFletcherRussellHigginsAOTelstraCorporat

237、ionLimitedSinceSeptember2009ArgoInvestmentsLimitedSinceSeptember2011LeightonHoldingsLimitedJune2013toMay2014RicegrowersLimitedDecember2005toAugust2012PatriciaMcKenzieRobertWrightSuperRetailGroupLimitedSinceMay2004APAEthaneLimited1SinceJuly2008SAIGlobalLimitedOctober2003toOctober20131)APAEthaneLimite

238、distheresponsibleentityoftheregisteredmanagedinvestmentschemesthatcompriseEthanePipelineIncomeFund,thesecuritiesinwhicharequotedontheASX.21APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUED3.Directors meetingsDuringthefinancialyear,14Boardmeet

239、ings,threeRemunerationCommitteemeetings,fourAuditandRiskManagementCommitteemeetingsandfourHealthSafetyandEnvironmentCommitteemeetingswereheld.ThefollowingtablesetsoutthenumberofmeetingsattendedbyeachDirectorwhiletheywereaDirectororacommitteemember:AuditandRiskHealthSafetyandRemunerationManagementEnv

240、ironmentBoardCommitteeCommitteeCommitteeDirectorsABABABABLeonardBleaselAM11414MichaelMcCormack1414StevenCrane14143344JohnFletcher14143344RussellHigginsAO14144444PatriciaMcKenzie14143344RobertWright14144444A:NumberofmeetingsheldduringthetimetheDirectorheldofficeorwasamemberofthecommitteeduringthefina

241、ncialyear.B:Numberofmeetingsattended.4.Directors SecurityholdingsTheaggregatenumberofAPAsecuritieshelddirectly,indirectlyorbeneficiallybyDirectorsortheirDirectorrelatedentitiesat30June2015is1,305,883(2014:979,426).ThefollowingtablesetsoutDirectorsrelevantinterestsinAPAsecuritiesasat30June2015:Fully

242、paid securitiesSecuritiesFullypaidsecuritiesDirectorsas at 1 July 2014Securitiesacquireddisposedasat30June2015LeonardBleaselAM460,664153,552614,216MichaelMcCormack208,59069,530278,120StevenCrane100,00030,000130,000JohnFletcher66,18822,06288,250RussellHigginsAO92,04030,679122,719PatriciaMcKenzie12,50

243、07,48619,986RobertWright39,44413,14852,592979,426326,4571,305,883TheDirectorsholdnootherrightsoroptionsoverAPAsecurities.TherearenocontractstowhichaDirectorisapartyorunderwhichtheDirectorisentitledtoabenefitandthatconferarighttocallforordeliverAPAsecurities.OPTIONS GRANTEDInthisreport,theterm“APAsec

244、urities”referstothestapledsecuritieseachcomprisingaunitinAustralianPipelineTruststapledtoaunitinAPTInvestmentTrustandtradedontheAustralianSecuritiesExchange(“ASX”)underthecode“APA”.NooptionsoverunissuedAPAsecuritiesweregrantedduringorsincetheendofthefinancialyear,nounissuedAPAsecuritieswereunderopti

245、onasatthedateofthisreport,andnoAPAsecuritieswereissuedduringorsincetheendofthefinancialyearasaresultoftheexerciseofanoptionoverunissuedAPAsecurities.INDEMNIFICATION OF OFFICERS AND EXTERNAL AUDITORDuringthefinancialyear,theResponsibleEntitypaidapremiuminrespectofacontractinsuringtheDirectorsandoffic

246、ersoftheResponsibleEntityandanyAPAGroupentityagainstanyliabilityincurredinperformingthoserolestotheextentpermittedbytheCorporations Act 2001.Thecontractofinsuranceprohibitsdisclosureofthenatureoftheliabilityandtheamountofthepremium.AustralianPipelineLimited,initscapacityasResponsibleEntityofAustrali

247、anPipelineTrustandAPTInvestmentTrust,indemnifieseachpersonwhoisorhasbeenaDirectororCompanySecretaryoftheResponsibleEntityoranyAPAGroupentityunderarangeofdeedpollsandindemnityagreementswhichhavebeeninplacesince1July2000.ThisindemnitymayextendtosuchotherofficersorformerofficersofAPAGroupentitiesastheB

248、oard,initsdiscretion,ineachcasedetermines.Theindemnityoperatestothefullextentallowedbylawbutonlytotheextentnotcoveredbyinsurance,andisontermstheBoardconsidersusualforarrangementsofthistype.Underitsconstitution,AustralianPipelineLimited(initspersonalcapacity)indemnifieseachpersonwhoisorhasbeenaDirect

249、or,CompanySecretaryorexecutiveofficerofthatcompany.TheResponsibleEntityhasnototherwise,duringorsincetheendofthefinancialyear,indemnifiedoragreedtoindemnifyanofficerorexternalauditoroftheResponsibleEntityoranyAPAGroupentityagainstaliabilityincurredbysuchanofficerorauditor.1)TheChairmanattendedallcomm

250、itteemeetingsexofficio.22APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESDIRECTORS REPORT CONTINUEDREMUNERATION REPORTTheremunerationreportisattachedtoandformspartofthisreport.AUDITOR1.Auditors independence declarationAcopyoftheindependencedeclarationoftheauditor,Del

251、oitteToucheTohmatsu(“Auditor”)asrequiredundersection307CoftheCorporations Act 2001 isincludedatpage77.2.Non-audit servicesNon-auditserviceshavebeenprovidedduringthefinancialyearbytheAuditor.AdescriptionofthoseservicesandtheamountspaidorpayabletotheAuditorfortheservicesaresetoutinNote29tothefinancial

252、statements.TheBoardhasconsideredthosenon-auditservicesprovidedbytheAuditorand,inaccordancewithwrittenadvicefromtheAuditandRiskManagementCommittee(“Committee”),issatisfiedthattheprovisionofthoseservicesbytheAuditoriscompatiblewiththegeneralstandardofindependenceforauditorsimposedbytheCorporations Act

253、 2001anddidnotcompromisetheauditorindependencerequirementsoftheAct.TheBoardsreasonsforconcludingthatthenon-auditservicesprovideddidnotcompromisetheAuditorsindependenceare:allnon-auditservicesweresubjecttoAPAscorporategovernanceprocedureswithrespecttosuchmattersandhavebeenreviewedbytheCommitteetoensu

254、retheydonotimpactontheimpartialityandobjectivityoftheAuditor;thenon-auditservicesprovideddidnotunderminethegeneralprinciplesrelatingtoauditorindependenceastheydidnotinvolvereviewingorauditingtheAuditorsownwork,actinginamanagementordecisionmakingcapacityforAPA,actingasanadvocateforAPAorjointlysharing

255、risksandrewards;andtheAuditorhasprovidedalettertotheCommitteewithrespecttotheAuditorsindependenceandtheAuditorsindependencedeclarationreferredtoabove.INFORMATION REQUIRED FOR REGISTERED SCHEMESFeespaidtotheResponsibleEntityanditsassociates(includingDirectorsandSecretariesoftheResponsibleEntity,relat

256、edbodiescorporateandDirectorsandSecretariesofrelatedbodiescorporate)outofAPAschemepropertyduringthefinancialyeararedisclosedinNote30tothefinancialstatements.Exceptasdisclosedinthisreport,neithertheResponsibleEntitynoranyofitsassociatesholdsanyAPAsecurities.ThenumberofAPAsecuritiesissuedduringthefina

257、ncialyear,andthenumberofAPAsecuritiesattheendofthefinancialyear,aredisclosedinNote23tothefinancialstatements.ThevalueofAPAsassetsasattheendofthefinancialyearisdisclosedinthebalancesheetintotalassets,andthebasisofvaluationisdisclosedinthenotestothefinancialstatements.ROUNDING OF AMOUNTSAPAisanentityo

258、fthekindreferredtoinASICClassOrder98/0100dated10July1998and,inaccordancewiththatClassOrder,amountsintheDirectorsreportandthefinancialreportareroundedtothenearestthousanddollars,unlessotherwiseindicated.CORPORATE GOVERNANCE STATEMENTCorporateGovernanceStatementforthefinancialyearisavailableatAPAswebs

259、iteonhttp:/.au/about-apa/corporate-governance.aspx.SignedinaccordancewitharesolutionoftheDirectorsoftheResponsibleEntitymadepursuanttosection298(2)oftheCorporations Act 2001.OnbehalfoftheDirectorsLeonardBleaselAMRobertWrightChairman DirectorSydney,26August201523APA Group|Annual Report 2015AUSTRALIAN

260、PIPELINETRUSTANDITSCONTROLLEDENTITIESREMUNERATION REPORTfortheyearended30June2015LETTER FROM THE CHAIRMAN OF THE REMUNERATION COMMITTEEDearSecurityholders,OnbehalfoftheBoardandtheRemunerationCommittee,IampleasedtopresentAPAsRemunerationReportforthefinancialyearended30June2015.FY2015wasayearofstrongp

261、erformanceforsecurityholders,withAPAcontinuingtodeliversuperiormarketreturnsandfurtherstrengthenthebalancesheet.FY2015sawasuccessfulmajoracquisition,expansioninassetsthroughmajorcapitalworks,businessandtechnologyimprovements,improvedsafetyperformance,averagecontractdurationextensionsandexcellentfina

262、ncialreturns.Changes to executive remuneration frameworkAsflaggedinlastyearsreport,forthisyearthemeasurementperiodfortotalsecurityholderreturn(“TSR”)inthelongtermincentive(“LTI”)planwasextendedtothreeyears,tomorecloselyreflectthelong-termnatureofAPAsbusinesscycle.Inaddition,TotalFixedRemuneration(“T

263、FR”)fortheCEO/MDandSeniorExecutiveshasincreasedthisyearasafunctionofAPAscontinuedsignificantgrowthinsizerelativetootherAustralianStockExchange(ASX)listedcompanies.AspartofourconservativemanagementofTFRandtomaintainamarketcompetitiveremunerationpackage,APApositioningpolicyisfortheTFRquantumtobeatleas

264、tthemedianagainstcomparableASXlistedcompanies.InordertoensureourexecutiveremunerationstructureisalignedwithAPAsstrategicoutlookandremainsmarketcompetitive,theBoardhasundertakenanindependentremunerationframeworkreview.Overall,weconcludedtheframeworkisalignedwithourbusinessstrategyandmodelbutthatthefo

265、llowingimprovementswouldbeimplemented.TheBoardapprovedtheintroductionofaminimumsecurityholdingpolicyfortheChiefExecutiveOfficerandManagingDirector(“CEO/MD”),SeniorExecutivesandalltheotherparticipantsoftheLTIplan.InadditiontheBoardhasapprovedtheextensionoftheperformancemeasurementperiodofnormalisedEa

266、rningsBeforeInterest,Tax,DepreciationandAmortisationdividedbyFundsEmployed(“EBITDA/FE”)fortheLTIplantothreeyears(tobeeffectivefromFY2016),tostrengthenthealignmentofmanagementandsecurityholderinterests.Formoreinformationonourexecutiveremunerationframeworkandhowitsupportssecurityholdervalue,pleasesees

267、ection3ofthisreport.This years remuneration reportTheBoardiscommittedtotransparencyandstronggovernance.WerecogniseandwelcomesecurityholdersinterestinAPA,includingunderstandingourremunerationstrategyandoutcomes.Thisyear,wehavesubstantiallyupdatedandexpandedourremunerationreporttoprovideinformationweb

268、elievesecurityholdersneedtomakeinformeddecisions.While,asaregisteredmanagedinvestmentschemelistedontheASX,APAisnotcoveredbytheremunerationreportingrequirementsoftheCorporations Act 2001,wehavefollowedasimilarformat,aswerecognisethiswillbefamiliarandunderstandabletomanyofoursecurityholders.Wealsopres

269、entremunerationinformationonanaccrualbasisratherthanapaidbasis,tobetterallowsecurityholderstoreconcileamountsawardedfortheperiodwithAPAsperformanceintheperiod.Wewelcomeyourfeedbackonthereportanditscontents,andlookforwardtoyourattendanceatourFY2015AnnualGeneralMeeting.JohnFletcherChairman of the Remu

270、neration Committee24APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESREMUNERATION REPORT CONTINUEDfor the year ended 30 June 2015TopicPagenumber1.Whatthisreportcovers242.RemunerationoutcomesandAPAperformance243.Executiveremunerationarrangements284.Executivecontracts31

271、5.Remunerationgovernance316.Non-executivedirectorarrangements317.Additionalkeymanagementpersonneldisclosures321.What this report coversThisreportdetailstheremunerationarrangementsfornon-executiveDirectorsincludingtheKeyManagementPersonnel(“KMP”)listedbelow.Thesearethepeoplewithauthorityandresponsibi

272、lityforplanning,directingandcontrollingthemajoractivitiesofAPA,directlyorindirectly,includingbothnon-executiveDirectorsandexecutives(executiveDirectorandseniorexecutives).NameRoleDurationofappointmentI)Non-executivedirectorsLeonard Bleasel AM ChairmanofAPAGroupFullyearSteven CraneMemberofAuditandRis

273、kManagementCommitteeandRemunerationCommitteeFullyearJohn FletcherChairmanofRemunerationCommitteeandmemberofAuditandRiskManagementCommitteeFullyearRussell Higgins AO ChairmanofHealthSafetyandEnvironmentCommitteeandmemberofAuditandFullyearRiskManagementCommitteePatricia McKenzie MemberofHealthSafetyan

274、dEnvironmentCommitteeandRemunerationCommitteeFullyearRobert Wright ChairmanofAuditandRiskManagementCommitteeandmemberofHealthSafetyandFullyearEnvironmentCommitteeII)ExecutivedirectorMichael McCormack ChiefExecutiveOfficerandManagingDirector(“CEO/MD”)FullyearIII)SeniorexecutivesPeter FredricsonChiefF

275、inancialOfficer(“CFO”)FullyearRoss GersbachChiefExecutiveStrategyandDevelopmentFullyearRobert WhealsGroupExecutiveTransmissionFullyearJohn FergusonGroupExecutiveNetworksFullyearKevin LesterGroupExecutiveInfrastructureDevelopmentFullyearMark KnapmanCompanySecretaryFullyearPeter WallaceGroupExecutiveH

276、umanResourcesFullyearThenamedpersonsheldtheircurrentpositionsforthewholeofthefinancialyear.TherehavebeennochangestoKMPbetweentheendofthefinancialyearandthedatethisreportwasauthorisedforissue.2.Remuneration outcomes and APA performanceOneofthekeyfactorsindeterminingtheremunerationpositionofAPAexecuti

277、vesismarketrelativity,andwithinAustralia,rankingontheASX200onmarketcapitalisationisthemostcommonlyusedbenchmark.APAGrouphasdeliveredstrongshareholdingreturns,soundfinancialperformanceandsignificantorganisationalgrowthyearonyear.This,togetherwiththeBoardsdesiretoattractandretainafirstclassmanagementt

278、eam,hasdrivencommensurategrowthinremunerationlevelsinAPA.APA MARKET CAPITALISATION RANK AGAINST ASX200106040208070503090FY11FY1090th75th60th46th48th34thFY12FY13FY14FY1510025APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESREMUNERATION REPORT CONTINUEDfor the year ende

279、d 30 June 20152.1 ExecutiveremunerationawardedFY2015Aspartofourcommitmenttogreatertransparencyandtobetterreflectthepayforperformancerelationship,thetablebelowsetsoutremunerationearnedbyAPAExecutivesinFY2015andFY2014onanaccrualbasisfortheperiodratherthanremunerationreceivedduringtheperiod.Forinstance

280、,ShortTermIncentive(“STI”)valuesinthetablebelowreflectSTIearnedinFY2015butareduetobepaidinthenextfinancialyear.ThisdiffersfromAPAsapproachintheFY2014remunerationreportwhereSTIreflectedcashpaidinFY2014(i.e.September2014),butearnedinFY2013.AwardedAwardedinFY2015in FY2014TotalFixedRemunerationAwardedAl

281、located(“TFR”)STI1LTI2Other3TotalTotalExecutiveDirectorandSeniorExecutives$Michael McCormackCEO/MD1,535,0001,609,4471,647,7274,792,174 3,857,979Peter FredricsonCFO780,000561,600559,650202,0002,103,250 1,823,444Ross GersbachChiefExecutiveStrategyandDevelopment823,000589,844590,503228,6662,232,013 1,8

282、75,835Robert WhealsGroupExecutiveTransmission590,000408,162423,3251,421,487 1,125,803John FergusonGroupExecutiveNetworks524,000361,560375,9701,261,530 1,031,199Kevin LesterGroupExecutiveInfrastructureDevelopment 479,000311,757343,6831,134,440 878,714Mark KnapmanCompanySecretary509,000260,406264,4611

283、,033,867 872,659Peter WallaceGroupExecutiveHumanResources532,000361,893381,7101,275,603 967,288 5,772,0004,464,6694,587,029430,66615,254,36412,432,9211)AwardedSTIrepresentstheamountsearnedbytheexecutivesduringthereportingperiodandareduetobepaidinSeptember2015astheyaredependentonapprovalbytheBoardand

284、havingthesignedauditedannualaccounts.2)AllocatedLTIrepresentsthevalueofreferenceunitsthatwereearnedbytheexecutivesduringthereportingperiod.ReferenceunitswillbeallocatedinAugust2015astheyaredependentontheapprovalbytheBoardandthereleaseofAPAGroupsannualresultstotheASX.3)Otherrepresentsthelastpaymentof

285、aloyaltyandperformancebonusmadetoPeterFredricsonandRossGersbach.Thebonuswaspaidoutinthreeannualcashinstalments(commencinginApril2012)withthelastpaymentmadeinApril2015(seesection4forfurtherdetail).2.2 APAperformanceandincentiveplanoutcomesFY2015Strongperformanceagainstallmajormetricshasbeenachievedag

286、aininFY2015.TheGroupssuperiorperformanceledtostrongat-riskremunerationoutcomes.MoredetailonthelinkbetweenAPAperformanceandexecutiveremunerationoutcomesisprovidedbelow.Five year snapshot of APA performanceThefollowingtableprovidesasummaryofAPAsfinancialperformanceoverthelastfivefinancialyears.Include

287、dbelowarefinancialmetricsrelatedtoincentiveplanperformancemeasuresandadditionaldisclosuresreflectingAPAsearningsandhowthisimpactssecurityholderreturns.Yearended30JuneFY2015FY2014 FY2013 1 FY2012 FY2011EBITDAbeforesignificantitems($m)822.3 747.3661.9535.5489.6Profitafterincometaxandnon-controllingint

288、erestsaftersignificantitems($m)559.9 343.7295.1130.7108.5OCFPSbeforesignificantitems(cents)254.8 50.856.052.552.6Earningspersecurityreported(cents)256.3 39.738.220.419.7Distributionpersecurity(cents)38.0 36.335.535.034.4Closingsecuritypriceat30June($)8.24 6.895.994.994.071)ThebalancesforFY2013havebe

289、enrestatedfortheeffectofapplyingaccountingstandardAASB 119:Employee Benefits.2)APAissuednewordinarysecuritiesbetween23December2014and28January2015.Theissuewasofferedat$6.60persecurity,adiscounttoAPAsclosingmarketpriceof$7.67persecurityon9December2014,thelasttradingdaybeforetherecorddateoftheentitlem

290、entofferof15December2014.Thenumberofsecuritiesforthecurrentandpriorperiod(FY2014)hasbeenadjustedinaccordancewiththeaccountingprinciplesofAASB 133:Earnings per share followingthediscountedrightsissue.26APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESREMUNERATION REPOR

291、T CONTINUEDfor the year ended 30 June 2015ThechartbelowillustratesthemovementinAPAsreturnindexoverthelastfivefinancialyearsagainsttheS&P/ASX100andS&P/ASX200Utilitiesreturnindices.Areturnindexreflectsthetheoreticalgrowthinvalueofasecurityholdingoveraspecifiedperiod,assumingdividendsarere-investedtopu

292、rchaseadditionalunitsattheclosingpriceapplicableontheex-distributiondate.PERCENTAGE CHANGE IN RETURN INDEX FROM BASE300%150%200%250%50%100%0%FY11FY10FY12FY13FY14FY15(50%)S&P/ASX200 UtilitiesAPA GroupS&P/ASX100Link between APA performance and awarded STISTIisanannualcash-settledincentivesubjectto12mo

293、nthfinancialandnon-financialperformance.STIfundingisdependentonnormalisedOCFPS,ameasureoftheaveragecashamountgeneratedbythebusinessforeachstapledsecurityissued(typicallyexcludingsuchthingsassignificantitems).ThismeasureisdirectlylinkedtoAPAsstrategicgoalofincreasingcashflowsoverthemediumterm.Executi

294、vesareawardedanSTIonlyifOCFPSisabovethethresholdlevelofperformancesetbytheBoard.OCFPSthereforeactsasagatewayforawardsundertheSTIplan.OCFPSisalsothemechanismthroughwhichtheaggregateamountavailableforSTIpaymentsislimited,ensuringstrongalignmentbetweenindividualperformanceandAPAsabilitytopay.STIawarded

295、issubjecttoExecutivessatisfyingtheirperformanceagainstabalancedscorecardofpre-determinedAPAbusinessunitandpersonalobjectives.ExecutiveSTIAwardedFY2015FY2014 FY2013 FY2012 FY2011ExecutiveAwardMaximum96.0%95.0%95.0%96.5%95.0%ExecutiveAwardAverage92.6%89.2%87.2%90.8%92.5%ExecutiveAwardMinimum86.8%85.3%

296、77.0%77.5%89.5%OCFPSPerformanceas%ofOCFPStarget118.9%113.1%117.2%105.6%107.6%ThechartbelowillustrateshowexecutiveSTIoutcomesalignwithperformanceagainstthekeybusinessmetricofOCFPS.STI PERFORMANCE AND EXECUTIVE AWARDS140%110%80%FY11FY12FY13FY14FY1550%Executive Award MaximumExecutive Award AverageExecu

297、tive Award MinimumOCFPS Performance as%of OCFPS targetExecutive performance Vs.KPI performance measures27APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESREMUNERATION REPORT CONTINUEDfor the year ended 30 June 2015STI outcomes during FY2015ForFY2015,theSTIoutcomesfore

298、xecutives,asa%ofmaximumopportunity,aresetoutinthetablebelow:STIearnedSTIforfeitedExecutives%$%$MichaelMcCormack93.2%1,609,4476.8%117,428PeterFredricson96.0%561,6004.0%23,400RossGersbach95.6%589,8444.4%27,406RobertWheals92.2%408,1627.8%34,338JohnFerguson92.0%361,5608.0%31,440KevinLester86.8%311,75713

299、.2%47,493MarkKnapman94.2%260,4065.8%16,033PeterWallace90.7%361,8939.3%37,107Link between APA performance and awarded LTILTIisacash-settledincentivesubjecttotwoAPAmeasuresRelativeTSR(threeyearrollingaverageperformanceagainstS&P/ASX100companies)andEBITDA/FE.Bothmeasuresareweightedequallyandarelinkedto

300、buildingsecurityholderwealth.RelativeTSRprovidesthemostdirectmeasureofsecurityholderreturnandreflectsaninvestorschoicetoinvestinAPAordirectcompetitors.SecuritypricegrowthisunderpinnedbyearningsgrowthandEBITDA/FEisbasedontheintegrityofearningsperformanceagainstfundsemployedwhichprovidesameasureofhowe

301、fficientlytheassetsarebeingdeployed.ThechartbelowpresentsAPAsTSRperformancerelativetoS&P/ASX100companies(forFY2013andFY2014basedonTSRendofyearrankandforFY2015basedon3yearrollingaverage)andEBITDA/FEasafunctionofimprovementstohistoricalactual.LTIawardsasapercentageofmaximumopportunity:EBITDA/FETSRLTIA

302、llocatedFY2013100.0%55.4%77.7%FY201466.7%53.2%59.9%FY201590.8%100.0%95.4%LTI PERFORMANCE AND EXECUTIVE AWARDS120%80%40%20%60%100%FY13FY14FY150%EBITDA/FETSRas a%of total trancheLTI AllocatedLTI outcomes during FY2015ForFY2015,theLTIoutcomesforexecutivesaresetoutinthetablebelow:LTIallocatedLTIforfeite

303、dExecutives$MichaelMcCormack1,647,72779,148PeterFredricson559,65025,350RossGersbach590,50326,747RobertWheals423,32519,175JohnFerguson375,97017,030KevinLester343,68315,567MarkKnapman264,46111,978PeterWallace381,71017,29028APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITI

304、ESREMUNERATION REPORT CONTINUEDfor the year ended 30 June 20153.Executive remuneration arrangements3.1 AlignmentofremunerationstrategywithbusinessstrategyVISIONMaintainourrankingasAustraliasnumberoneenergyinfrastructurebusinessEnhanceourportfolioofgasinfrastructure Designedtofurtheraligntheinterests

305、oftheExecutiveswiththelong-terminterestsofthesecurityholdersandtoensureexcessiverisk-takingisnotrewarded.TheBoardatitsdiscretionmayrequireExecutivestorepaysomeorallofanySTIorLTIawarded,forfeitunvestedLTIand/orforgofutureSTIorLTIawardsifAPAsfinancialresultshavebeenmisstatedduringtheprecedingthreefina

306、ncialyearsandthemisstatementmayhaveimpactedincentiveplanoutcomes.AligningExecutivestosecurityholdersthroughanequity-basedincentiveprogramisnotpracticableforAPAduetoourstapledtruststructureandtheConstitution.APArecognisesthebenefitofitsExecutivesholdingsecuritiesinAPA.Asaresult,tofurtheralignExecutiv

307、einterestswiththoseofsecurityholders,inFY16,theBoardhasintroducedaminimumsecurityholdingrequirement.ThepolicyrequirestheCEO/MDtohaveadirectsecurityholdinginAPAequaltoatleast100%ofTFR.SeniorexecutivesarerequiredtohaveadirectsecurityholdinginAPAequaltoatleast50%ofTFR.CurrentExecutiveswillhavefiveyears

308、tomeettherequirementandnewExecutives(appointedtoofficeafter1July2015)willhavethreeyearsfollowingappointmenttomeettherequirement.Attractandretainkeytalent Reflectmarketvalue,individualsskillsandexperience.Consistsofbasesalary,non-monetarybenefitsandsuperannuation.Referencemarketmedianagainstacomparab

309、lesetofcompanies.Rewardperformanceagainstspecificbusinessobjectives(linkedtokeymeasuresofsuccess).Cash-basedincentive,subjecttoannualfinancialandnon-financialperformance.OnlypayableiftargetOCFPSisachieved.Clawbackappliesforthreeyears.Rewardexecutivesforcreatingsecurityholdervalue.Allocationsofrefere

310、nceunits(settledincash).TSRagainstS&P/ASX100companiesandEBITDA/FEperformancemeasures.Tranchevestingoverfouryearperformanceperiod.Clawbackappliesforthreeyears.ClawbackappliestounvestedLTIawards.MotivateandrewardexecutivesforsuperiorperformanceMarketcompetitiveremuneration(PositionTFR/TPOatmarketmedia

311、n)AlignwithsecurityholderinterestsAlignwithAPAbusinessmodel&organisationalimperativesComplywithlegalrequirementsandappropriategovernancestandardsCapturerevenueandoperationalsynergiesFacilitatethedevelopmentofgasrelatedprojectsPursueopportunitieswhichleverageourknowledgeandskillsbaseStrengthenourfina

312、ncialcapabilityKEY MEASURES OF SUCCESSREMUNERATION GOVERNANCEEXECUTIVEREMUNERATIONCLAWBACKPOLICYMINIMUMSECURITYHOLDINGPOLICYREMUNERATION OBJECTIVESTOTAL PACKAGE OPPORTUNITY(“TPO”)TFRSTILTI29APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESREMUNERATION REPORT CONTINUED

313、for the year ended 30 June 20153.2 ChangestotheexecutiveremunerationframeworkduringFY2015Asnotedinlastyearsreport,themeasurementperiodforTSRinthelongtermincentiveplanwasextendedtothreeyearsinFY2015,tomorecloselyreflectthelong-termperformanceofAPA.TheBoardhasalsoapprovedtheintroductionofaminimumsecur

314、ityholdingpolicyandtheextensionoftheEBITDA/FEperformancemeasurementperiodtothreeyears(tobeeffectivefromFY2016),tostrengthenthealignmentofmanagementandsecurityholderinterests.3.3 ApproachtosettingremunerationEachexecutivesTPOisdependentontheirroleintheorganisationandtheircapacitytoinfluenceoutcomes.A

315、PAsexecutiveremunerationisstructuredasamixoffixedremunerationandatriskcomponents(STIandLTI).Theequalemphasisonshortandlong-termperformance(i.e.,throughSTIandLTIawards)ensuresexecutivesareapproximatelyrewardedfordeliveringsustainedAPAperformance.Theproportionoffixedversusatriskremunerationvariesbetwe

316、enroleswithinAPA,reflectingthedifferentcapacityofexecutivestoinfluenceAPAsoperationalperformanceandreturnstosecurityholders.CEO/MDTFR as a%of TPOTarget STI as a%of TPOTarget LTI as a%of TPOSenior ExecutivesCompany Secretary40%50%58%30%25%21%30%25%21%3.4 RemunerationComponentsTFRTFRisreviewedannually

317、andisdeterminedbyreferencetoindependentexternalremunerationbenchmarkinginformation,takingintoaccountanindividualsresponsibilities,performance,qualificationsandexperience.APAspolicyistopositionTFRatleastthemedianagainstcomparableASXlistedcompanies.STIThetablebelowsetsoutthekeyelementsoftheexecutiveST

318、Iplan.STIplanelementDescriptionSTI opportunitySTIopportunityisexpressedasapercentageofTPOandvariesbyrole.TargetSTIopportunitiesaresetoutinthetablebelow.MaximumSTIis150%oftargetSTIopportunity.ParticipantTarget STI as a%of TPOCEO/MD30%SeniorExecutives25%CompanySecretary21%Performance gatewayOCFPSactsa

319、sagatewayforawardsundertheSTIplan.STIopportunityisonlyrealisableiftheOCFPSthresholdlevelofperformancesetbytheBoardismet(i.e.,the“gateopens”).Plan fundingProvidedtheOCFPSthresholdismet,theSTIopportunityavailablemaybemodifiedbasedonthelevelofOCFPSperformanceachieved.Performance measuresOncethe“gateope

320、ns”andisfunded,STIawardsaresubjecttoperformanceagainstindividualKPIsbasedonabalancedscorecardofAPA-wide,businessunitandpersonalobjectivescovering:Financial measures:costcontrol,revenueandcashgenerationandcapitalexpendituremanagement.Non-financial measures:health,safetyandenvironmenttargets,projectde

321、liveryandreinforcementofourethicalandvalues-basedculture.Timing and deliveryAllSTIawardsarepaidincash,usuallyinSeptemberofthenewfinancialyear,followingthecompletionoftheauditofannualaccounts.ClawbackTheBoardinitsdiscretionmaydeterminethatsome,orall,ofanexecutivesSTIawardisforfeitedintheeventofmiscon

322、ductorofamaterialmisstatementintheyearendaccountsintheprecedingthreeyears.Cessation of employmentIfaparticipantresignsorisdismissed(withorwithoutnotice),allunvestedSTIawardsareforfeited.Ifanemployeeleavesforanyotherreason,anSTIawardwillbepaidoutbasedontheproportionoftheperiodthathaspassedandperforma

323、nceatthetimeofcessation(subjecttoBoarddiscretion).Change of controlIfachangeofcontroloccurs,anSTIawardwillbepaidoutbasedontheproportionoftheperiodthathaspassedatthetimeofchangeofcontrol(subjecttoBoarddiscretion).30APA Group|Annual Report 2015AUSTRALIAN PIPELINE TRUST AND ITS CONTROLLED ENTITIESREMUN

324、ERATION REPORT CONTINUEDfor the year ended 30 June 2015LTIThetablebelowsetsoutthekeyelementsoftheexecutiveLTIplan.LTIplanelementDescriptionAward vehicleAsastapledsecurityandunderourConstitution,theuseofactualsecuritiesintheLTIplanwouldnotbepracticable.Instead,APAoperatesareferenceunitincentiveplanto

325、createalignmentwithsecurityholders.ReferenceunitsexactlymirrortheperformanceofAPAsecuritiesandaresettledincash.Tofurtheralignexecutivesandsecurityholders,APAhasintroducedamandatorysecurityholdingpolicy,effectivefromFY2016,requiringexecutivestoholdasubstantialnumberofsecuritiesinAPA(seepage28forfurth

326、erdetail).ReferenceUnitsarevaluedatallocationbasedonthe30tradingdayvolumeweightedaveragemarketprice(“VWAP”)ofanAPAsecurityimmediatelypriortotheopeningoftheAPAsecuritytradingwindow.ThewindowfollowstheannouncementofAPAsannualfinancialresultstotheASX.LTI opportunityLTIopportunitiesforeachparticipantare

327、setasapercentageofTPO,varybyroleandareshownonpage29.MaximumLTIis150%oftargetopportunity.ParticipantTarget LTI as a%of TPOCEO/MD30%Senior Executives25%Company Secretary21%LTI allocationTheactualindividualLTIallocationisdeterminedatthecompletionofthefinancialyearbasedonTSRperformanceagainsttheS&P/ASX1

328、00comparatorgroupandEBITDA/FEperformance.Performance measures and targetsAwardsaresubjecttotwoequallyweightedmeasures:RelativeTSRandEBITDA/FE.Relative TSRTSRmeasuresthepercentagechangeinsecurityprice,plusthevalueofdividendsordistributionsreceivedduringtheperiod,assumingalldividendsanddistributionsar

329、ere-investedintonewsecurities.APAGroupsTSRismeasuredrelativetoapeergroupcomprisingofS&P/ASX100constituentsandismeasuredoverthreefinancialyears.RelativeTSRhasbeenselectedasanLTIperformancemeasureasitprovidesthemostdirectmeasureofsecurityholderreturnandreflectsaninvestorschoicetoinvestinAPAordirectcom

330、petitors.ExecutivesonlyderivevaluefromtheTSRcomponentoftheLTIplanifAPAsperformanceisatleastatthemedianofS&P/ASX100companiesoverathreeyearperiod.EBITDA/FEEBITDA/FEreflectsEarningsBeforeInterest,Tax,DepreciationandAmortisationdividedbyadjustedFundsEmployed.EBITDA/FEhurdleissetasapercentagegrowthcompar

331、edtobudgetandhasbeensettoreflectimprovementonthepriorfinancialyear.TheBoarddeterminestheEBITDA/FEtargeteachyearthroughtherigorousbudgetsettingprocesstoimprovethecapitalefficiencyoftheorganisation.EBITDA/FEhasbeenselectedasanLTIperformancemeasureasithelpsdeterminetheoperatingcashflowleveragebeingachi

332、evedbasedontheoperatingassetsavailabletothebusiness.Itisalongertermperformancemeasurebasedontheintegrityofearningsperformanceagainstfundsemployed.RetestingThereisnoretestingoftheallocation.Timing and deliveryAnLTIallocationvestsinthreeequalinstalmentsoverthethreefinancialyearsfollowingtheallocation,

333、withtheinitialone-thirdvestingattheendofthefirstfinancialyearfollowingthefirstaward,one-thirdattheendofthesecondfinancialyearandone-thirdattheendofthethirdfinancialyear.Uponvesting,theLTIisdeliveredincash.Thecashpaymentisequaltothenumberofunitsvestingonthevestingdatemultipliedbythe30tradingdayVWAPofAPAsecuritiesimmediatelypriortotheopeningoftheAPAsecuritytradingwindow,followingtheannouncementofAPA