APA Group (ASX:APA)

CMD 2022

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May 5, 2022

Okay, we have questions. Good morning, everyone. I'm Kynwynn Strong, General Manager of Investor Relations and Corporate Affairs at APA. Welcome to our 2022 investor day. APA has been performing strongly, but like APA, I would like to acknowledge the traditional custodians of the lands on which we meet. We pay our respects to their elders, past and present, and extend that respect to all Aboriginal and Torres Strait Islander people here today. Safety first. It's really worth remembering that in case of an emergency, please follow the local evacuation path towards our assembly point. Your full day with the APA management team will consist of important information. Over the course of this morning, we'll take you through the important role APA is having to ensure we have secure, reliable and affordable energy. As you can see, we have put some learnings in place. The first session starts with an overview of the presentation and a presentation from Aurora Energy Research, followed by a panel discussion with our executive team. We have a short break before commencing the second session, followed by APA's investment considerations, ESG and a second moderated panel. A point to note on the second session is we invite all of the colleagues around the virtual audience to ask questions in those two interactive sessions. We have some challenges and instead of putting questions on the floor, we will ask the questions from the virtual audience. For the rest of the audience, we have a chat in the back of the house. With that, I'm delighted to hand over to APA's CEO and Managing Director, Rob Wheals, to talk to you about APA's investment. Thank you, Kynwynn, for the introduction. Good morning, everyone, and thank you for joining us today or this morning, both those that have joined us in the room and those that are joining us virtually. I'd like to begin by acknowledging the traditional custodians of this country right across Australia, same as we speak in our respective regions. I'm joined today by leaders of the APA team, on the management team of the APA. Now, most of you, well, all of you know APA as a leading energy infrastructure business. Today I'm gonna take you through and definitely through the energy transition as I see it unfolding in front of us. In particular, I will take you through the transition. In particular, I will take you through the transformation of the energy sector and the important role that the energy sector will play in decarbonizing across the Australian economy. Now, what's gonna be important in all of this is an important role that technology will play in the energy transition. APA is well placed, and I'm extremely confident that APA is really well placed to play a leading role in a number of different ways. Firstly, through the transformative energy solutions that we will deploy by leveraging the existing and new skills that we will develop over the course of the energy transition. Importantly also in gas infrastructure that will play a very important role in the energy transition inasmuch there is an orderly transition over the course of the next several years. Now, next is direct links to it. 50% of Australia's emissions come from the energy sector, and you can see on this chart that the energy sector contributes more or rather 50%, made up of the electricity sector and stationary energy. Now, when you think about that, what is very important is that the energy sector plays a critical role in the transformation of energy transition. The transition of the Australian economy in order to decarbonize it. Otherwise, we will not achieve net zero emissions. Now, if we look at the energy sector, and particularly the National Electricity Market, 55% of our emissions come from coal. Which means that if the energy sector is going to decarbonize, then coal has to come rapidly out of our system. Which means that we're gonna have a fundamental shift in our energy mix as the energy transition plays out. That's exactly what's happening, and it's accelerating at a fantastic pace. We've seen that play out since over the last number of months with the announcement of Horizon Energy, which is a joint partnership coming out pretty much towards the end of what we would have been tracking. Now, as I've said, technologies are gonna play, and the introduction of new technologies are gonna play a really, really important role in this energy transition, and you can see that shown on this chart. Now, some of those technologies are very well developed and proven and commercial, and some have some way to go. Those are the key to a number of details, mostly around how they're gonna be best able to be commercialized at scale, which what that means is that some technologies are available today, some are yet to be proven, and it means that the transformation that we need to see in the energy sector has some way to go and is therefore uncertain. It's probably best described when you think about it as an uncertain future. Now, while that future is uncertain and unclear, that doesn't mean to say we don't want to have an orderly transition. We need to have an orderly transition. If we don't have an orderly transition, we will not be able to ensure security of supply and reliability. As part of that, also affordability. Now, you can see down the slide here that there's a range of different technologies which are part of that technology roadmap as we see decarbonization playing out over the course of a number of decades. All of these different technologies will play a key role. They will all play a key role in different ways, and particularly since we said play out a more technology-neutral approach. They all come with risks and challenges. Even the more proven and commercial technologies today come with risks and challenges. Some of them are, as I said, technical and commercial, but also environmental and the broader socio-social impact of how we roll out these new technologies. What does that mean? It means that the energy transition is not gonna be smooth. We've got a rapid withdrawal of coal, a rapid deployment of renewable energy, backed up by storage. This is certainly the monumental effort when you think about not just this decade or the next decade, but as I said before, it's akin to rebuilding the National Electricity Market in build order. When you think about taking out one major fuel source for 65% of our energy system, it doesn't make sense to be taking out more from other fuel sources at the same time. In fact, what it does do is it underscores the critical role that gas and gas infrastructure will play to ensure that we do have an orderly transition. Now, that idea of coal coming out of the system and renewables coming in, and the important role that gas plays is probably best explained by giving you an example. The example here is one in the UK. Now, what we saw here in the U.K. is over a period of a decade, we saw the rapid retirement of coal out of the system. You can see that in the black at the bottom of the chart. The rapid deployment of renewable energy to the extent that it's now made up about 40% of the energy mix in the U.K. In the U.K.'s case, based on renewables throughout the last 12 months. The important role that gas and gas infrastructure should have been able to play to provide security of supply during that renewable rollout means that because there was actually a massively low levels of gas production and low levels of gas storage, gas was unable to step up the way we would expect it to be able to step up and ensure supply. What did that mean? I think the chart speaks for itself here better. We saw over the course of 12 months a 3- to 4-fold increase in wholesale energy prices. 3- to 4-fold increase in wholesale energy prices, only exacerbated by what was playing out in the European market as well. That increase in energy prices has flowed through to consumers in what is now being called the realistic budget for households detailing around what's been called energy poverty. Now we must, and we can avoid that situation happening in Australia. I'd like to quote the outgoing CEO of Tomorrow Energy, who said this recently, that we need to have a balanced transition of people and energy, and if we trade energy security, we will lose the mandate for the energy transition. What does this now mean? Well, with this in mind. Excuse me. With this in mind, the energy transition is well underway in Australia. This chart, as you can see, is the AEMO ISP-based scenario in the Integrated System Plan. There you can see the rapid retirement of coal in our energy system, the increase in renewable generation, and gas and other flexible forms play a critical role. With coal rapidly retiring, it only underscores the important role that gas will play in serving renewables in the market. Importantly, when we think about it, gas generation is not competing, it's complementing the introduction of more renewables into the system. Not a compliment here, but nice compliment. When you think of Australia, well, I'm extremely confident when I say this before that I think Australia ticks a lot of boxes. Why do I say that? We have abundant natural resources, but our wind and our solar, that's right. We also have abundant gas resources which can be developed and should be developed to serve these abundant natural resources like wind and solar can come to fruition. Gas, of course, being much lower emissions and available to provide the firming capacity. Now, there are multiple opportunities for APA as a generation-centric business, say that. You know well that we have a suite of skills around operating energy infrastructure, and we really do believe we are well placed to use those skills to deploy engineering, technical, and physical infrastructure to deliver reliability, high strength, low cost nuclear at most of our locations like infrastructure. Gas, of course, is transferable into storage or the energy customer. Now I've said there are opportunities in this sort of renewable energy high strength, again, as we come to this slide, which demonstrates how we think the opportunities play out for APA specifically. Firstly, you know, in this transition, which you may have heard before, there can be no energy transition without transmission, which is slide one. With that rapid roll of retirement coming out of the system and more renewables coming on, we need to have a plan for how we can drop into the context so that new energy coming in will not have to wait and just sit around with many of the elements of renewable energy unable to perform fully because they're stuck due to the 50% rule of the network. It needs to be done in a planned way, and maybe the best way to think about it is when you plan your housing estate to be developed. The first thing that happens is access roads get built, roads get built in the housing estate, all these utilities go in, and only after that the homes get built. This is exactly the way we see the renewable energy done. Developing transition infrastructure first so that the generators will come in and will know with confidence that when they build their infrastructure, it can be able to be sold to the market. This approach by government on the East Coast, particularly the government of New South Wales, means they're building kilometers of streaming generation and thousands of kilometers of high voltage transmission needs to be built. At this point, I would like to congratulate the New South Wales government on the forethought and their proactive approach in walking us through how this will play out in New South Wales, meaning that this can have a more orderly transition and at the same time create real opportunities for investment and jobs. Now, APA is participating, and this is I think well known in the renewable energy trial processes here in New South Wales, and we formed a very strong consortium, which is called Network Revolution. Our consortium partners consist of three companies, specific partners, Cicinus, UGL, and CD Contractors. We've now been shortlisted as one of three to participate in a competitive process for the design, the development, supply, installation, and operation of the interconnector for the renewable energy zone in New South Wales. This is an incredibly exciting and significant opportunity, and we believe that as owners and operators of significant infrastructure here in Australia, together with our consortium partners, we have the skills and the team to build and develop what will be New South Wales's first renewable interconnector. That project will play out over the incoming six months where we will be able to put a proposal as part of this competitive bid process. On to renewables. Now, you well know that we are a significant player in Australia on renewable infrastructure. Australia, and our focus is all the while being how do we work with our customers to help them on their decarbonization journey. We've been very successful at doing that. I think the most recent example that I could point you to is the development of the AGL Megawatt Solar Farm or White Cliffs Solar Farm in western New South Wales. There we are developing that solar farm for our customers, backing up the energy with the gas-fired plant and that's exactly how we see this in the future. We make this business across these three pillars that enable us to complement each other. We will see a customer feel comfortable with low cost of energy, low capital, low development risk because they rely on us to provide a package. Now, across central Queensland, so a lot of our mining customers in mining regions like Western Australia are looking to do the same thing. They're looking to do the same thing because they want to green up their operations. We actually see this as a major growth opportunity going forward in clean energy solutions. We develop for our customers combining reliable gas generation with renewables. This is one of our customers in Western Australia where we will definitely deliver on the project going. Now turning to hydrogen. You can see on this chart the hydrogen value chain all the way through from electricity to the green hydrogen value chain, all the way through from the development of the renewable generation and electrolysis, the transportation of the hydrogen all the way through to the end customer taking to their end user market. We see significant opportunities in the hydrogen value chain and in the East Coast development over the next few years as it develops over time. Now we have core skills which we believe are very much transferable into the sector and already have those core skills into the renewable energy pipeline sector, for example. We recognize we're not experts in all parts of the value chain, and that is why we will be partnering with our industry, particularly those core skills, where we don't have those skills in-house. I give a real life example of where we are currently undertaking to develop a hydrogen project where we commence a feasibility study, where we are looking to develop an extremely large-scale hydrogen project together with our very strong Australian partner, Origin, where I can sort of partner between all of our core skills right across the board. That is clear by looking at the slide, which has potential to be an extremely significant project and power between hydrogen exports East Coast. Now all these technologies are going to develop over time. Starting off with an existing infrastructure that we deploy is not a new technology, but it is significant. It is infrastructure which will need to deploy further renewable energy hydrogen. As these technologies develop and roll out of gas, it will be an important part of the energy mix for the long term, particularly as we see the coal rapidly coming out of the system. Now, when you look at our markets, it's a pretty parallel, almost a parallel history. On the East Coast, the growth in demand for gas infrastructure is very much driven by how we can bring new gas supply to the market. Because when you change your gas infrastructure, the gas supply comes in. This can be contrasted with Western Australia, where the demand for gas infrastructure is very much demand driven by the demand from mining customers in resource areas trying to respond to the very fast growth of more minerals and so forth. Therefore the additional infrastructure that is required. Now when I go back to the East Coast, it's very clear that APA East Coast gas infrastructure is extremely well placed to support the changing supply dynamics. We have our 7,500 kilometers of East Coast gas network, and that connects all major Queensland through to the southern market gas users with the exception of South Australia. Therefore we are able to connect the new gas supply sources to the East Coast sort of as well as the development projects. In fact, we are already responding. You know, we have expanded our East Coast gas network by as much as 25% in a very important incremental expansion. You would see most recently we also have an efficient expansion on the South West Pipeline to Victoria, which connects Port Campbell with the southern market and importantly provides a path to solve the gas storage capacity for Victoria. In Western Australia, demand is very much driven by the growth in the demand for resources. A lot of it's driven by LNG. I think we start to see some of that activity. You can see the increase in demand for resources and you can see where those opportunities are and you can see how well located they are in Australia's infrastructure. We remain very confident about the growth and opportunities that Western Australia going forward. For now, we have an early position with the ports of Australia to connect up with the largest supply of gas to the east coast. Again, confirms the confidence that we have around the development of other growth projects in Western Australia infrastructure. Now, while the East Coast and the West Coast both describe what's described as developed gas, the one thing that is common is that gas is critical to the economy today as well as in the future. That's important if we think about it from three perspectives and they're very sharp. First to our residential and commercial customers. There are millions of customers that today use gas for space heating, for hot water, for cooking, and that's not easy to replace. When we look at our industrials, many of our industrials, as you know and as you'll understand on this chart, that our industrial customers use half of our gas for electricity. Half. That use of gas is not easily substituted. Our industrial customers, manufacturing customers use gas for competitive margins as well as an industrial price which is a contract model with a differential price. Now, if you were to go through the theoretical example I tried to apply to all of you for example, the equivalent to gas. It's equivalent to that half gas for electricity in those environmental effects are essentially equivalent to the entire oil that is put together over the whole of Australian market. It's quite an undertaking that's required if it's for alternatives for our industrial customers. Of course, gas is important because gas is a feedstock. That's what the population calls it and our gas is much more than just a bridge fuel category. I'm now going to summarize a key message from my presentation. The energy transition is about development. The energy sector is critical to ensuring that we have a low-carbon Australia together with possibly about half of industry's emissions. That energy sector, including the decarbonization of energy sectors, is so much dependent upon technological change, both in successful implementation of existing technology, but also energy technologies that are currently in infancy through financial support for those types of innovations. I'm confident that APA is well-placed to play an even larger role. I think we'll do that in two ways. One is through deploying transformative energy solutions, leveraging our portfolio that we have today to build on our future, but also through our gas infrastructure which is so critical to ensuring security of supply. Don't take it from me. A little later this morning we have a panel. On that panel we have David Pursell. He is a partner at Energy Consulting. Energy Consulting only took an assessment of the impact that the energy transition will have on the sector, particularly gas, but other sectors as well. David will no doubt talk a little bit more about that and his perspective on the potential impact on the energy sector supply chain, which is obviously our manufacturing sector. Before we have the panel, I'm going to hand over to Hugo Sherlock. Now Hugo is the Managing Director at Aurora Energy Research. Hugo Sherlock, among other things, is responsible for market risk modeling and has done a lot of work on how the power system will evolve through the energy transition. Hugo Sherlock, our key insight. Thank you very much for listening to me today, and I'll now hand over to Hugo Sherlock. Thanks so much, Rob Wheals. I might just wait for my presentation to come up. Thank you very much for that warm introduction. Aurora's a company which essentially models wholesale electricity markets. Tries to unpick some of the complexities that Rob Wheals described in his presentation. It gives a long-term view on how we think electricity markets are going to play out here in Europe and the States. Particularly focusing on, you know, the decarbonization journey. Before we get into it, I'll stress the analysis in this report is based on some independent work we've done with Drive, the private group, which is about 100 organizations across the world. Renewable developers, infrastructure firms, government project finance banks, then tailors the kind of mix of groups that are involved in the transition. The reason we did this particular report on net zero is somewhat obviously consultants and investors are asking to have price and capacity mix forecasts that are consistent with net zero. They want their base case to be a net zero electricity system moving forward. That's why we modeled the scenarios for them. We'll get into it, but there are a number of different policy pathways to get there, each with quite different implications. The presentation is in two parts. One is net zero drivers of net zero electricity system, so how are they different from business as usual? Then the second, what does a net zero electricity system look like? How do people live in one, and what's the role of firming, and why does price just crash when almost all the generation is from zero marginal cost renewables? Let's get into it. Let's ride the net zero highway. Well, there are a few key features, and as I've touched on it, what the first would be would be rapid electrification. Realistic and acceptable scenario remains about 200 kWh at the moment, more than doubling to 400 kWh if you electrify the rest of the economy like road transport, industrial processes. I mean, that is pretty extraordinary. 200 kWh going to 400 kWh by 2050. Literally, doubling of the system. As you can see on the top left-hand side here is talked about kind of base level growth for them, or greater demand that comes from people from higher income. Particularly case for domestic use. The other part of the story that we see is it's difficult to envisage a world where this happens entirely through grid scale. There is going to be a big role for behind the meter technologies. On rooftop solar and the rapid growth in Australia, something like 3 GW a year has been an extraordinary sort of impact on power greatly in terms of the level of growth. We do factor in quite big growth in rooftop solar, but also increasingly behind the meter storage, whether that's at the household level or a community battery level. The other one is about that is grid flexibility. Built into the forecast for the net zero is not just rapid growth of grid scale, but also some pretty substantial movement. The third part of the story is like again the growth in capacity. If you really believe in a net zero electricity system, you think doubling of demand is credible, somewhat obviously you need some pretty good infrastructure. Our modeling indicates that if we are hitting targets, then we'll need to spend somewhere between AUD 14 billion-AUD 20 billion of additional grid funding to unlock further network capacity over and above what is planned through the optimal development pathway. Significant investment in network capacity. Now, on the bottom right-hand side, we talk about a slightly simplified way. What are our core system policy mechanisms which is put into a net zero electricity system? We're talking about two of these aspects. One is a carbon price. Clearly that's unlikely given the current political environment in Australia. We kind of back what the carbon price review will do is deliver a carbon budget. You can see that on the low usually carbon budgets for electricity system kind of something around 50 megatonnes. Also pretty relatively low by international standards. This probably isn't a source. I'm not going to go down this carbon price road. The way we're getting renewables onto system at the moment, some through corporate PPA, but we touched on it again earlier, the New South Wales Roadmap. It's a lot of direct support for renewables, right? Think about two orders of New South Wales Roadmap. Bilateral or contract for renewables through government, driven by state policy is the lead at the moment. The way we get to net zero management is what's about system. Where does this get us to in total emissions? We complete a roadmap to a new scenario there on the right between supporting state-based packages at the moment as a set of scenarios. As I said, it's in one of these functions consistent with what AEMO plans require in terms of the low to 30s and the right trajectory model. It's somewhere in that kind of 750-860 carbon budget. Basically, we now need to transition faster than BAU in one of those two policy mechanisms I've described. Terrific. I don't want to spend too much longer on this, and to some degree, this slide's a little bit out of date, not only because it's forward markets, which people would know have gone up reasonably recently to complete sort of marginally over 400. It's just making that high-level point that the way we get to net zero networks is really important. A carbon price, I think it's worth understanding links the wholesale 55 different thermal assets into the market as the price goes up. If we support renewables through a CfD contract, that contract is probably in cash, and you've brought lots of quite inexpensive renewables into the system, and you can use as well as much faster. Now, fuel costs, as you've seen, only one contract. In a world where we're writing lots of contracts for system for renewables, we're likely to see green levy support from about 2030 or so to net zero. That's what the UK has done. The green levy part becomes built into the AEMO material, and that part indicates the world of net zero for material is going to translate into a position where net zero is sort of characterized in terms of cost of climate risk. Very different impacts on wholesale markets when we have the policy mechanisms. Terrific. To the second part of the presentation, what does the net zero electricity system look like? Just to be clear, how do you pick the right one, when your goal for your generation is to measure some variables? There's quite a lot going on in the slide. If you give me a second, I'll give a little bit of time to explain. On the top left-hand side, we've picked Victoria as an example. We're looking here at 2021 projected. What we've got mapped here is what we've described as residual capacity. This is the demand that is not met by the renewables and not met by the existing plants. This is basically the amount of thermal capacity we need for the year. You can see the gray line is 2021 and the green line is. This is a picture of all renewables, it's not just solar. You see in the green line that there's some times on the left-hand side of the chart where you need a lot of because it's double demand, but the sun is not shining and the wind's not blowing. At each point we only have 6.4 gigawatts of that much. As we follow that down, because we've built a lot of renewables, there's lots of time in the year where renewables are actually oversupplied and they might be being curtailed, so they're not producing, or they might be being exported to neighboring states. You can see when you compare it to 2021 that it's almost straight or pretty straight either, under supplying for peak high demand or oversupply and that's the nature of intermittent renewables. On the right-hand side there, what we've done is shown a map that peaks thermal capacity required by the length of time we need it for that. It's basically making the quite obvious point that you can't just put solar panels or wind turbines out across this country and not rely on anything else. You see capacity is 12 gigawatts, but in most years you might only need exactly 8 gigawatts of that. Right? It's where that's going to do the job. There's a decent chunk of the time still an industrial within the kind of system where you might look at periods of long low wind output. You might be into something that combines gas with heat storage, which is the light brown, and you might need at least 50 gigawatts of that. This is a picture of the kind of system as well. We've been able to highlight very clearly in the northwest wind solar. We've got the Germans who've been through bouts, periods of low wind output, and through those periods, you need things that can run at full swing during those periods of time. I won't spend too much time on the bottom part of that chart, but it's pulled out in advance. You see most of the time the wind is blowing and the sun is shining. There are periods where we need that significant chunk of capacity and gigawatts in this interval to meet demand at that time. Again, it's making quite a simple point, although it's probably an obvious concept as well, that we're going to need a variety of different technologies to decarbonize that by renewables. This kind of tackles the same problem in another language, but also trying to describe what the system looks like. Again, you know, you might get challenged if you did not include this. You can see where we are in 2023 in there, and it's a mix of thermal and renewables and thermal and solar, and the sum is that gigawatt. What does the net zero system look like by country? I think the headline message is it's huge rise in actual gigawatts by even more than 10 gigawatts. That's because, again, we're factoring those times when wind doesn't blow as well. It's a much bigger system in absolute gigawatts. Some of that will be behind the meter generation. But you do need to see some growth in terms of capacity as well as that in those colors that are on this slide. On the right-hand side, what we've done is map peak demand, which is that red diamond against peak capacity in 2050 and 2060. You can see that in both cases we've got more firm capacity than we need for peak demand. Clearly this is like polarizes matter or internet has gone down and that's something where we put some of that back. By the time we get to 2060, we've still got more firm capacity than we need. A lot of that is behind the meter. That's the green we've touched on before, and we are increasingly going to rely on more interconnectors to move that power around sometimes when the sun is shining and the wind is blowing. It's a total of 60 gigawatts. I think, you know, a typical moment in my life is when I work with people from Deloitte is where these forces are all trying to push in the same direction, actively to try to do the same thing. For this to improve, we do need to believe that there's a story about behind-the-meter community generation that puts power plants at the very end of the actual thermal demand cycle. As technologies are here and there's more of them to choose from, but it is still the type of hard job. This is what the system sort of looks like in another chart and how it. What does this mean for gas assets or in a future net-zero carbon thing? There's something, you know, like nine or 10 gigawatts of gas at the moment in there. Also I think we grow pretty significantly year by year in terms of that. You can see that broken out by state there. What do we see as a role for what we describe as system capacity in particular? I don't mean gas or hydro or battery or CCUS or any different types of tech. We see a little bit more gas capacity, but actually roughly around the same. I think what's interesting here is that the gas output will vary significantly by where you put it, right? You see the low either on the bottom left or right-hand side of the chart in years where we've had really good wind output, we might only see like 9 terawatts of. In the low renewable output, we may require more output or certain mismatch. Whether you add more in renewable or what we've been seeing so far moving forward, focused on. The first thing that's kind of almost the number one question we get asked by people looking long term about electricity is if we've got all this zero carbon or zero marginal cost assets why don't households like this track. It's a terrific question and I keep trying to make these really quick, but they get more and more complicated the more I answer. What we've tried to do here is, on the previous LCOE scenario, stack in hours from the lowest price hours to highest price hours in our model. You can see in the lowest price hours, all these are the ones that have more renewable. It actually renewable output is making up a significant proportion of the market. That heavier gray trend, storage is simply charging. Whether it's AUD 40, you know, AUD 10 actually a highly variable market. Take a step back, you can see it's all going to be pretty low or negative. We then move up in terms of price through the year. You can see that basically what's driving it is low renewable output. There's still a lot of renewable output all the way through to the point of peak. Once you start going through the other options, you see that actually there's not quite enough renewable output to meet the demand, and therefore battery is discharging to power both the load of course, but there's also peaking a amount of peaking in there against that or hydro. Now even that might only be 3%-10%, probably 3% of the year. Especially playing still quite an important role in setting the market for your 50% of the time if it's meeting its demand. This is quite a subtle point that even though the vast majority of the time we're keeping to the left side here, that mix of technology, it's the flexibility technology that's just playing a really important role in setting the market and increasingly over and over the last 10 years. You can see that it's actually almost that pattern of much higher prices rather than flat just above AUD 50 or AUD 60. It's actually not that frequent rate. These are price of battery which play the important role in keeping the price higher I think. I'd also make the point that, while at the moment it seems as if battery is that flexible technology, I think as we move into this world, batteries playing a bigger and bigger role. You've got one-, two-, four-hour batteries and those are unique. They're out of that price range as well, charging when the price is low in the middle of the night with solar at its highest and then discharging when you want to see it. Even technological advances like system flow which more will be occurring for you, the more longer periods of low renewable output and you need battery to contract. If we are trying to set up storage resources in some way or other to secure this demand battery, but we recognize that it's important for more effective and faster forms of flexibility over time as well. I think the other interesting thing about this slide is that, you know, most of us are operating in where wholesale markets start to drive the climate issue, but we're distributing it across the asset. It really changes your activity or your ability to develop deep decarbonized over a period of time. In the zero world, you're going to see this shift of all different sort of modes. You move to a much more price sensitive asset, price sensitive mode where renewables dominate the market or flat price and flexible technologies set the market. Actually the middle of that price distribution is actually going to fall out because you don't have a whole series of steps before the market goes out of that much. That's what it really gives you. Listen, that was a good thing I wanted to cover in this presentation, but hopefully it made you aware at least about how we're thinking about the net zero system and about the role of flexibility going forward as well. Thank you, David. We really hope that people's volatility and in the process of association. I'd like to also invite David Lamont from Deloitte to the stage. David is Senior Partner, Leader of Deloitte's Industrial Practice in Australia and a Leader of Deloitte's Sustainability Team. He's been a key contributor to the Manufacturing Australia Report, on the role of manufacturing in Australia. Just as a quick note, you can actually get the report from Deloitte. Thank you very much for joining us today. We really appreciate you taking the time to join us. We heard Rob earlier talk about the importance of the industrial sector as a significant user of gas. In fact, the industrial sector accounts for close to 50% of the gas supply in this country. David, if we could start with you. Can you say a little kind of a key insight from the report on the importance of the manufacturing sector for the UK economy? Much of the report kind of speaks to, as you guys have outlined, the importance of the manufacturing sector to the UK economy. I think just to touch on a few of the key points. You know, we're looking at the top of the pile in terms of capital intensity, high skill levels, and what they actually do in terms of the benefits that they have to the economy. The guys have pointed out how important manufacturing is to that. Between the U.K. and the U.S., there are large differences. To sort of say that, you know, for instance, on the sort of product footprint itself, trade surplus with the U.K. is important. I think that's important as well. Trade equal or close to free status with the U.K. is really important. I think the key from a U.S. perspective, probably the big thing for them is that trade is controlled. If there's a disruption in any of that, it's a bad thing for the U.S. economy. 25% of U.S. investment in the country economically goes to the manufacturing sector. Particularly car manufacturers. The number of sort of connections in the value supply chain is pretty big, pretty significant. I think it's fair to say that pretty much every industry in the country that was relevant would probably have some kind of connection with the U.K. In terms of the relationship, thinking back to your question on energy as well, which was one of the focus areas that I touched on earlier. Yes, thank you. Just thinking about the key points that were in the report and a couple of the things that were brought up in the theory is that the manufacturing sector is obviously very important, keeping high-wage jobs, different skills. Can you talk a little bit on the industries that tend to be good at sort of some of those skills that you talked about in the report and some of the pathways that you have found for the U.K. manufacturing sector? Yeah, sure. I think those points are important. I think the key to both the U.K. and the U.S. actually is skills. We've got people with different skill sets that can adapt and get that. The U.K. is quite skilled overall. In terms of the manufacturing sector, you know, we've talked about before, but when we think about economic growth, the best way to think about that is to ask where could growth be? Because the wonderful thing about the U.S. is we've got all these kinds of different economic opportunities across the states. In the UK, it's much more difficult to manufacture things because it's different. We watch things like skills very closely. I think there are a lot of things that the UK lacks a bit. I think with that in mind, you know, I think we also need to be quite real. We forget that, the kind of things that are sort of more relevant to us. We would have been focused in on four of the parts. Plastics, steel, aluminum, and then computer chips. Those industrial sectors. You know, the focus was more on the kinds of things that are happening. In the last, technological ten years, a lot of the integration that has taken place has been more from an understanding of the importance of driving profits in those fields. One of the biggest challenges for us, we have lots of commercial activity that's driven by the need to compete globally with China. Actually, we know what that means. We do know what that means. We're in pretty tight battles in terms of the kind of food and beverage. There is a lot of competition. There is enormous pressure to cut those costs drastically to keep pace with the way that things are produced elsewhere in the world. That means most likely that if there are replacements, then that's going to be one of those things that we have to, you know, actively think about more closely. In terms of a little, something about aluminum, to get the full price and relevance, for pathways, you know, that correct representation of the value. We're talking about in the country around 450 different metals, more than 34 which are just in the top 1% of 50,000 different materials in terms of importance. For me, I think that's correct. For aluminum, I think the movement toward aluminum that we must have them in fact actually. There's a big challenge there. It really is also about any of the preferences that those metals need to be positive in those contexts like that is pretty critical. Two things around ammonia. The technology is actually a bit closer, the hydrogen is a good example of pathways around extraction to one thing, but that requires the capability to be able to generate that reform target and to support the people who are responsible for that. now I'm thinking, put those people in place and work with them. right now, Braille is talking to Stephen Seale, who's the lead officer from the BOER into the green hydrogen. we know that the counterparty will be through the participation of all those willing, that process might be more intense than what we've actually not done before. definitely put people in place. and then on, you know, in concrete, that is also a really critical thing that we have to get right from the start of this thing. going through the process and completely remove carbon, but people also like carbon capture storage or other things as well. you know, those are the reasons that we need to sort of generate those because it's the path forward that we want to take. Sorry, you know, on the policy side, actually, we've got two different paths that we're asked, and there's still a little bit of work to do in this space. Thank you. I can just pick up on one point that really jumped out at me from the report when you were talking about ammonia and doubling the cost. If you double the current cost, you would double the levelized cost in 2020, and that could result in more than a 40% increase in cost. Yeah. You're absolutely right. That's absolutely true. The other thing we need to be clear on is that the steps are similar to the reasons that I understood. Just think about how our future looks in advance and making practical information for what's actually going to be realized, what is difficult about it, and what's the best. If you go on to the second one, I think it's the data. When you're looking at zero emissions, particularly or the exact amount that we need to think of as part of the solution, would that include the public sector? Would it apply to things like the transport network and national. Yeah. I mean, just generally, you know, I think both sort of zero and 2% as well. You know, we're looking at different sorts of pathways. You know, one of the big differences is not just 100% of the fuel that we use, but also the actual country that we're talking to. You know, information available to say, low-carbon power is different from region to region, you know, powers. It's the sort of practical, you know, the readiness is what actually faces countries with the real need and the skills available to be able to fit these low-carbon things within the community. Lastly, I suppose it's true that having a store of zero-carbon ammonia is different from having a store of power. I think it's important to think about how different these things are. Yeah. That's a real practical point. Also, I think that's key. For example, the three steps that you need to go. When you actually model an outcome in 2050, how do you think about the fact that that thing gets done or it doesn't get done as we move towards this goal? Not only because it's proposed, but because it's written down as well. Yeah. It's a perfect question, and I think it's the right place to be right now. Also, you know, Mark already noted the sort of demand as an input. You know, not just the generation we need to build, and then supply and demand. I think we increasingly are going to be looking harder at not just the absolute level of demand, but I think that there are theoretical problems with demand over the coming 30 years, but also the pace of it, sort of requires planning. You know, there are various kind of policy mechanisms on the way to address these problems, both in terms of morass, as well as both demand side as well as supply. I think the fundamental question is people like our friends at Policy Network have to think much harder and much more about the absolute level of demand, but also the pace. That varies from sector to sector. It's also true that there will be a lot of contention. You know, I think the great example that I would really mention is valuable infrastructure. If we are still building lots of composite power plants right now that are going to work, then we really need to focus on the infrastructure that's less expensive. Why? We're not adding to our future additional demand. I do think there's going to be more opportunities in that space. Particularly about sort of the wire itself or about you know the role that government plays to flex around demand within that. You know, we've all used that sort of bring that back themselves and deliver sort of the same power each year. I think the other, you know, point now in terms of demand, as you can see there, Bill, which is coming up this morning is load and what we've got in front of us. The marginal load is that we increase firming capacity to get to net zero and not really start to decline yet. It's why looking over at that point and at the same time, we've got coal coming out of. Well, if you think about 4 and 5, if you look at the U.S., the number of questions. Personality at the moment plays a rather limited role in the platform for 4.0. As Tony mentioned, building self-removals and permanent assets fast enough is important on any production center without gold plating software solutions and significant infrastructure. That is difficult, and that's why I think it shows up here, and that's also where this inflection point is right now. Caused by that wave that can be breaking through and bringing in super power and making that transition to best production possibility because of the circle there. On the circle topic then, just going back to the slide, we're going into that sort of different phase where it's sort of this sort of more consumer sort of institutional use of blockchain. Kind of that trust gap is shrinking. Yeah. It's difficult, as I said, for that to be widespread across different use cases as well. It depends a lot about what you're doing and sort of, you know, what business model is going to be successful. I think we sort of might see a lot of sort of either well, if it will be kind of like either, you know, like trust in government to do it the right way. There will be a certain amount of flexibility for people to kind of experiment with that. As a bank, you know, if it's built, it will require some sort of, you know, reasonable amount of control because of that sort of extra auditing that you carry out of the amount of the hydrogen to just have enough different industrial processes. I think sort of a really wide variety is very important for companies like us to not sort of pick up either way. It is really clear. Yeah. I was looking and I think that's where you are here. It's a big thing for me. It's not the best presentation. It's very hard to look at and it's really good. I think that's one of the reasons too, that on the other way, I think we want to talk about that a couple of things. The technology kind of speaks for itself a little bit. We can drop it because we'll focus on that. The other one was the big thing for me is sort of the best practice of just before even with the traditional kind of digital transformation projects. Best practice usually involves sort of building systems that are suitable. Without it being sort of truly built on the architecture either. It's a bit of a challenge. You know, we do understand what those challenges are. It really does seem to match with the challenges as well as the opportunities that are out there. If I can just go back to my board a little bit. On my board, David, when you think about the professional services side, how do you see those sort of two paths then? It's not competing because they're both sides that you want to support, right? When clients are saying, "Well, which is more important? Which is more important?" Yeah. I would say they're working together. It's still very early days. It's gonna take a lot of many more times before we will have the proper systems to have a private space. Both are, we can't pass up the sort of public space because it is a good way of building trust. We can't forget about that. Both of those are good. I think one of the things that I'm trying to do is kind of be personal with some of the work we do is looking at sort of the best practice of that. That's kind of key for us. When you go to the right here, the industrial, you know, industrial side, you know, just as Charles was talking about earlier about this kind of digital twin aspect and collaboration between different companies. There are amazing opportunities there. Certainly a lot more engineering and a lot more kind of action in production and detail around sort of, how that sort of looks and functions and things. I think, those are two things that stand out. Every major kind of digital twin company has either sort of an interaction or a valuable component of their strategy. Sort of tracking things in real time and being able to visually see what's happening. That's just kind of where it is more sort of just like you said, the pipeline, the total deal as well as the sort of collaboration between different industries. It's more sort of data analysis and sort of direct sort of engagement with the client. Those are kind of the main things. It's clear to see that there are a lot of different opportunities, both for existing clients and potential new clients that want to work with you as well as existing clients that want to do more with you. Thinking about the member form that you've demonstrated there on the quality work done to explain sort of the different areas that are available and the types of solutions that are available for firms. How do you think that works best with our recognizing the affordability for many types of groups, people, the reliability of it for people, but also the need for that personal support that David talked about as well? Yeah. I approach it in two ways. One is a kind of policy political and second is an economic. In terms of policy political, I would say this is actually a political hot potato. It is very difficult to have a nuanced debate framed by this sort of either/or. We can't have that. Again, using the UK as an example, the way they thought about this was to use its capacity market because, you know, its gas and oil was competing with the likes of India in the winter. What they wanted to do was centralize all the asset ownership so they could, you know, put forward the basis of that necessary capacity. I think globally at a political policy level, it's very different to have a free market base. What we do need to make sure the lights stay on is that allows us to then accelerate decarbonization and have sort of public participation with the public and policy makers around this data. That's sort of high level. I do though think it's different country to country, it's more complex. Regulators matter, commodity price volatility has always mattered, but it will matter more. I think what we're seeing too is there'll be a real premium both on the generator side, which is behavior how they actually trade flexibility, load capacity, but also on the supply side. We work with a lot of platforms which know much more about flexibility than other people. So that Google own 24/7 green power, and doing the matching and in some ways they're integrating themselves around the grid. I think the end user can do it right then or whether it's large users or whether it's end users as well. They are much more aware and in some ways in control of it. What we're finding happens as well in the way electricity and power supply. What I haven't yet done necessarily is really looked into the fiber connectivity side of things. It's difficult to get a hold of. I think the new report that came out from the British well before it. Can I just kind of get you on a little bit more around what's happening from a science perspective? So there's a heavy focus on net zero globally. Can you talk a bit about that sort of technical side of what's happening now? So do you think it's going well to get it? Can you just give us a bit of your thoughts on that? Yeah. I mean, I've no huge opinions on choices. I think it's going to, you know, if I've got some time, there is a point broadly where I just thought we will need more capacity than other times. You know, you can debate the timing and the cost. In that sense, we will need more flexibility to move renewables around the system. Perhaps that little bit of flexibility will probably become a more important system over time. You know, potentially, can it just transform to provide the right types of that, and we will need more interoperability for the transition as well. I actually think the key thing or benefit from choice is that it encourages the integrated thinking from a policy. You know, through that, we've often talked about policy frameworks, but in principle, those set out the reliability target and the carbon reduction target. In that world where states are, you know, sort of supplying electricity, to some degree that state lessens the economic risks for various markets. You know, the elements come together, you know, a little while ago. I think it's going to drive itself. It's definitely interesting because they do have their own structural sort of timeline. They want to draw the resources before its domestic goals, and they're asking for part of that solution to happen sooner rather than later. That's the body of the product. It's arguably the reason everyone's changing what they're doing. Just on the policy aspect of the data, we report the discussion and then the policy to tell the public just why we have done it and the benefits they get from it. To get it right, can you talk a little bit about the engagement element? Sure. I think we recently redone most of our work around regulation and policy support for reduction of carbon in the energy transition. This is where perfect, you know, statistics. We can look for what's going to be perfect. But then when I put in the box of steps that you've got to push through governments and regulators, there's a lot of potential stuff that we get every week that comes in. I think it's sort of useful to think about this from a customer perspective. Certainly I'm sure this sort of market that we've got constantly working and I think the Christmas number was just under 100 different submissions that we're working on. But then in terms of actually sort of looking at what the market looks like, this would be for a customer to keep an eye on. I think there's a kind of distinction between how the different parties may look at the different products that we've got. There was an earlier question for you. We get a lot of people asking about batteries and how they might work within their property. Do you think there's some logic for, you know, what they can offer in terms of greenwashing skills or maybe there's a use for things that might help with heat pumps or other things like that? Yeah. Look, that is our opinion. I mean, that's our opinion. You know, we are optimistic. We're very short. It's in huge growth rates where California just revealed that it's 50% year-over-year. If you look at the growth of batteries in terms of capacity and installation, we think that's a very big growth market somewhere. We've got positions from batteries. The story of batteries is quite interesting because for me, sort of you see the story go from batteries are no help. We didn't quite know what to do with them because it's like keeping a freezer at the right level. That's what the home solar battery did quite properly. A lot of the batteries that are out there at the moment have you know run very well providing those kind of niche properties. The next generation of battery technologies has the benefit of longer duration batteries that can last for four-hour. They'll be even more sort of bulk user power. Again, charging when it's not a solar stream, it can go lower than negative. Batteries demand and price and doing that better practically compared to getting whatever it is you've got to store from 5MS or fuel and kind of like driving it to where it needs to be after. We've seen that story play out in a number of different markets. It's certainly gonna go up from there because it is, you know, sort of so well dominated with climate driven demand. That role is moving forward fast. You know, from just a gigawatt of battery storage gets to through a gig. Now it's a million. There are other technologies, Flow, iron-air, and others that can play that role. We're seeing huge growth rates of batteries in California again. This is why we want to go out and find these opportunities because I don't wanna tighten it the rest of our conversation with the battery play. You know, one of the priorities is that power, you know, at this time for batteries because it, you know, will provide a source of power. Again, that matters more in regions which are slightly slower in the way they do this. What they will do is despite the thermal technologies, what can equalize that, you know, the one that's being put there. We've got these stories going on. Also not, you know, at the moment looking at those batteries directly. The other side of battery storage is quite interesting. We see ideas and ways in which it can be value added. Batteries are such a complicated mix of chemistry. Rather than doing it all yourself, we feel batteries is the right part of the grid where it can store power so we're not overloading our networks with that and then deliver it when it's needed. That can be stretched. Particularly as we think about social license and where are we gonna build these energies, we wanna build them in places from an environmental sustainability. Without all project licenses, we think batteries have a role to play. Again, we're probably not gonna build something with the batteries. We need to build a new battery plant which is required to utilize that. It improves the standard social license. However, it gives you that valuable capacity that you get from a battery just in time. Just before we close, David, is there anything else you want people to think about in terms of energy transition that we haven't touched on? Yeah. I think people need to remember to keep their 24/7 calm. I mean, it looks like it's wonderful to just draw a straight line from here to the target for how we achieve carbon emissions. Without that battery, I mean, I think we need to be realistic in terms of what we can achieve. Given that battery storage is such a big piece of that, I think we need to think about that as well and think through some of these things. You know, the example I come back to is in Nevada. I think the US has a strong track record. Nevada raised their sort of renewable target to 90% and that looks like an effective way to get to that. We haven't- Thank you very much indeed, David Pursell. Just a note that the Q&A for some speakers will be open just after. Yeah, look, I think there's lots on a lot of them, but I think, you know, there is this size of the opportunity that some of this is enormous. I think the price point is definitely on the good side. It all gets a bit complicated if you get into the weeds. You know, in my mind, the future is just a diversified portfolio strategy, a range of flexible assets from it, from us, and people with the right, you know, capabilities to develop and favor those assets. You know, provided the full spectrum. I think that's the direction of travel. It's very much going to be a portfolio business. Thank you, David. Fantastic. Dave, really appreciate you taking the time to talk to us today. We'll now take a break for 20 minutes. We'll ask you to mute that and we'll see you back at the session. Welcome, everyone. My name is Peter. I was just reflecting before I kicked off, looking around the crowd and I broadly have got a lot of capacity in this room from our debt investors. We have a couple of other investors as well. We have some productive investors in the room and you can all be incredibly proud of the role that you've all played in this company's success so far. It's increased both over the last 100 years that you've been not only an individual but investing and putting the funding forward to develop Australia's infrastructure. There's always a lot more to be done in that space in the near term. As proud as you are, we're very proud of at APA and we're all proud of our history. We're very proud to be a company with a proven track record of success. We're proud to be a company with a strong purpose to bring communities to the forefront. At APA, we're driving a great strategy for the future today and it's certainly moving along and we're playing a major part in the transformation of the industry the work that we're doing around the community, the work that we're doing. We're point number one. Point number two, which is really important is always. The third part of the strategy that is inevitable, certainly global, and I think you've heard from some of the speakers before you today is the drawdown of gas is happening everywhere and the demand for gas in the short term is often weaker. Yeah. We've just raised a lot as it relates to that energy transition. That strategy is ineffective if you don't have the capability to win. We believe we've got the right culture, we've got the right people. A great strategy also means very little if you don't have the right foundations. At APA, we're very proud and we believe we've got the right foundations in place. Part of our foundations and core to our financial capabilities are our defensive operating model backed by balance sheet and the ongoing investments we make in our core operations. Investments that we know are critical to ensure that we deliver against our goals. Let's start with our operating model, and we presented this at the half year. It's not new. It's been rehashed and rehashed because it's so important. It's time well spent. First, we've got to build an attractive business platform. It's attractive for three simple reasons. First is our contract book. Second is the diversity of the asset class that it touches, supported further fields with well-defined industries. Thirdly, very topical, but very importantly, we are strongly hedged to inflation. Without a doubt, we're in a period of high inflation, and that represents a real power in our business. We've got significant balance sheet capacity. We've got strong liquidity. We've got plenty of headroom in our credit metrics, and it gives us the flexibility to create value through either investment or capital management. We plan in this capability and diversification nimble, and our most recent example of this is the investment in Raven Backfire. We were able to make that investment using our existing balance sheet, and we moved quickly, and we moved collaboratively. While it's not in that sense, we're carrying this capacity, given the confidence to go to market and the confidence to apply the growth capital to the business going forward. We do have other capital management tools at our disposal. I'll talk a little bit about those in a second. They're there designed to give us flexibility to continue to create value for you as the prevailing conditions evolve over time. Most of you know me very well in this room, and you know I like to talk about a good bit of free cash, if I'm honest with you. I can talk about this enough quick, and I probably will do. For me, one of the key responsibilities as CEO is to ensure that we both get the value to shareholders, minimizing the cost of that interest. Recent work on the APA has really pushed our company more. We've got a low average cost of debt. We're geared around our exposures to rising interest rates, and we don't have any major maturities until around 2025. There's a quick chart on the top, and that's just to remind people when you look at that 2025 stack, we've got a range of 10-12 years, different interest rates there to be refinanced consistently. The rates have gone so high as 7.5%. We've got 7.4% for one of those, but they average around about 5%. That's pretty consistent with the rate if you were to take our 7-year average. If we could just do a seven-year average, seven-year moving average over rates, we could park them in that area in the mid-5%. We're in a reasonably good state to be able to continue to create value as we move forward with our strategy. We're often asked about how we think about funding our growth. Importantly, how we go about determining our investment return. Most of the time we get the question, what are those blue title accounts? That's something that's a few parts to it, so we can't tell you that just yet. What I'll start to do is talk to you about the process that we go through. The sources used for the funding funnel before you on this slide is a real highlight of the areas that we focus on when it comes to capital allocation. Yeah. The sources side of the equation is another reminder of our strong foundation for capital. Our revenues are doing well in contrast with the firms in the space. Our balance sheet is strong. We've got high levels of liquidity, attractive credit metrics that see us through the debt cycles. We've got access to the capital markets that could possibly make a bigger number as well. Under these strong foundations, we start our allocation process with the usage side of that equation by making sure we're investing in the base business to keep APA economically sustainable. Our base business aspect is designed to ensure our assets are safe, reliable, and efficient. This largely speaks to our operations team who use life cycle models to regularly maintain, upgrade, and improve the efficiency of our critical infrastructure. While our current operating and technology systems have served the company well, it's helped get us to this stage of our journey. We now need to continue to invest in our systems and processes to ensure we're even more efficient and more scalable as we continue to grow. I'll talk to you in a little bit about that in a moment. When I first start seeking our investments, we're setting our hurdle rates. We know they're very critical to the APA value creation. Our investment hurdle rates incorporate a buffer above our WACC. It's pretty simple stuff. It's why they incorporate a buffer, and we review them regularly, every six months, to ensure that they reflect changes in the business and changes in the market. Now, we don't change them every six months in terms of the hurdle rates, but what we do consider from time to time is if there's a sustained period of adjustment. For example, sustained rising interest rates, then that may cause us to modify our hurdle rates. We also apply different hurdle rates based on the different investment classes, dependent upon the risk profile of those investments. We don't necessarily apply a different hurdle rate to a different asset class, particularly from transmission or distribution, which would be pretty wide. Another different gas pipeline that means that the risk profile is different. We adjust our hurdle rates based on that risk profile. At one bookend, we look at our regulated assets. At the other end of the spectrum, we value some of our new bookings in our generated valuation method, our end of life opportunities, those sorts of movements. We do the contracted business as well. We apply different hurdle rates based on the different risk profiles. The last thing that we do is we also apply metrics such as cash payback to our investment evaluation. Again, it's all pretty 101 sort of stuff. It's basic stuff that you all know. It's really important that we think about making sure that we get those project cash returns on those investments, particularly where the longevity or the useful life of those investments are concerned, which is obviously the case when you're in a market like we are where you're looking at these types of investments as well. Our capital strategy is also designed to ensure that we have other tools in this, not in M&A and organic growth, but other tools to create value for you, our shareholders. That may include things like liability management, which is something we've learned this year as a function of interest rates. We did that in February last year. We're at it again right now. It's the right tool. We hope to continue to monitor but, really proud of the work that we did in February last year, and we can see that we've created immediate value for our shareholders. There's other tools at our disposal as well, such as our DRPs that we can implement. There's our buybacks that we can implement. Again, they're all designed to create value differently for our shareholders. In fact, today we're going to talk about our strategy for 2022 to 2025. Our five-year strategy to fulfill that strategy. We've got to think differently. We need to grow the multi-business model. That's because we're constantly looking at ways to grow today. At AGL, we've got a history of consistently delivering solid growth, creating from what was a very small spin off 21 years ago, the large company that you see before you today. To keep growing, we always need to look forward and challenge ourselves to do things differently, because we know that by doing the same things that we did in the past, it's not going to be sustainable for our future. We need to continue to invest in our business for a successful future. I'm gonna give you a couple of examples. First, if you take our business development investments that we've made, and you look at what we've done over the last 12 months, we've transformed the sort of investments that we've made in those terms. A lot of it is taking and investing in people and building capabilities in that space. You're gonna see the long-term benefit of those investments in our growth pipeline development. There is a direct correlation between the investments we've made in people, teams, and our growth pipeline. The reason about this is we've made and it's been successful so far. We also continue to expand our solar PV team, and we will continue to expand our solar team as we pursue new opportunities in the newest growing growth market for us, for the renewable energy market here in New South Wales. The other investment, which is very clear is the work that we're doing around carbon capture and investment in that project. We're doing research, we're doing testing, we're engaging with Jay-Z to contemplate an entire range of energy systems. We're looking at batteries and storage, and we're looking at hydrogen. You heard David speak before about the importance of the manufacturing industry. In fact, we've got to get these new energy products low cost and certain, and that's why we're doing JV with Alinta at West Thumbnails. We've grown our collaboration with them turning into the hydrogen testing that we're doing with Alinta. We're very excited about that one. There's one way to go with that. We need to continually do more for our customers and our communities to ensure that we've got a sustainable future. We need to ensure that our developments are even more sensitive to the environment than they ever were before. That's a real strategic focus for us. It's very critical. When you look at the energy, the electricity transmission lines that we're going to deliver in New South Wales through the Great Divide, those works will do good and it's something that impacts communities and impacts us. We're gonna do that as a community of owners and work with governments to really help them move forward in a positive way for the community. We need to further strengthen our relationships, not only with our communities, but also our customers. We also need to invest and do these things differently to support our own internal zero ambition. We've talked about that as part of our four-year development of this development plan. We're making investments in our systems and processes, ensuring that our technology platforms are modern and easy to use for our 2,000 employees. By way of example, we're making investments in a new ERP system. I probably got my piece wrong there. It's not an ERP, it's an SFR. In another organization, I wouldn't do that, but we are doing a new ERP because it's the right thing to do, and we wanna make sure that our systems and processes are modern and efficient and they will change. We're also investing in technologies to make our workforce in the field more agile and more mobile. We're really working closely with Joan's team and the operations team to make sure that they have the tools they need to be able to work efficiently and effectively. Then a really exciting thing, an exciting investment to make is what we call an employee support, and they're a huge part of our employee value proposition. It's a great history and value add stuff, and they create a stronger foundation for the next 10,000 years. We're strengthening our risk management and our governance capabilities, as companies always are as they grow. An example of that is the work that we're doing around physical security and cyber security. Above all, it's about people who are full of our potential, and we're investing in that. We're upskilling. We're improving our training. We're developing our graduates in our own settings, and we're developing our leadership pipeline. Now, the things we were gonna keep doing in scale as well as starting to try new things help us get to this place. Also, as I said, I'm so proud of having improved both Sellagaz revenue and Sellagaz profit. Sellagaz developed the pipeline. These aren't because we're making this investment. We're in a fantastic creative environment with strong colleagues. We've got lower input costs because of our reliable maintenance and stronger infrastructure. We've got lower tax paid because of all the accelerated depreciation on all of the growth projects that we've invested in. We're effectively reinvesting this cash into enhancing our capabilities and again, making sure that the growth is sustainable growth. We know it's the right thing to do. Thank you for your attention today. At APA, we know we've got a lot of work. We know we've got a strong balance sheet, and we're certainly, as I just said, investing to build a sustainable growth and a sustainable business. I will now hand you back to Rob. Thank you very much, Adam, for that presentation. We are now going to change gears and focus on community and our commitment to our community. Now, I could stand up here and give you a presentation on our sustainability roadmap and our commitment to our community, but I think far more powerful is to hear directly from our people who are living and breathing value every day. So we have APA's purpose in strengthening community and creating responsible opportunity. The way that we work with communities and our social performance is really key to our success as a business. The culture at APA in Darwin, NT, is very safety-oriented in here. We are thinking about what the future is and how we're going to position ourselves for growth into the future. I think as you guys know, the next door we're gonna open is definitely in Western Australia. If you want any further information on what we do, then you can always look us up on our channel through Facebook or Instagram. We'd like to thank everyone for their time at the end of the day. Make sure they're buckled in the car and other supplies that's on board. At APA, we're very proud to go above and beyond the environmental compliance to make sure it's definitely embedded into everything that we do. One of the themes of our purpose for me at the moment is looking at ways that through our projects and through our assets, we can better engage with key stakeholders like our landholders or First Nations communities and people so that we're understanding and working in a way that delivers mutual value to those key community stakeholders. We wanna engage with our landholders, we wanna understand how our landholders use their land, how our projects interact with our landholders, and we wanna work collaboratively with them. We wanna pay them fair compensation, and we wanna ensure that we're able to co-locate together for the future. APA is committed to supporting our local communities through community-driven projects like the Kari Kari Rifle Project, the East Kakadu Project, and the Northern Gulf Billabongs Connect Project. Our approach to social investment and the way that we invest in our community is a sustainable development approach. This can be small things at a project or asset level and bigger scale initiatives such as our partnership with Fred Hollows or Clontarf. Clontarf, for example, we're working with them to strengthen education and wellbeing outcomes for young Indigenous men. A third of our funding comes via the private sector. The private sector businesses that support us, and we're lucky APA Group, they not only provide, you know, much-needed financial support, but they're really interested in a partnership and through a relationship with the partners that we employ within all our countries. Obviously, the employment opportunities that provide for our youth workers graduates. Our work together is really helping to make an impact to Aboriginal and Torres Strait Islander eye health. When Fred Hollows first started in the 1970s, Aboriginal people were 10 times more likely to go blind than other Australians. Now, thanks to our formerly great ACA and other partners, Aboriginal people are 3 times more likely to go blind than other Australians. We've made some good progress, but there's a lot of work to be done. Urai has a fantastic partnership with the APA Group, and it operates in two ways. One is with immediate help when farming family and the injuries that they sustain getting the crop. Second part of it is we have a team of counselors who respond after that disaster has passed to come in and provide that additional long-term support. One of the key examples of how we're looking to strengthen our relationship with First Nations people in particular is on our Northern Gulf Billabongs Connect project. On that project, we've taken the time to understand who the different traditional owners are and develop a relationship agreement with them. Those relationship agreements consider cultural heritage, they consider what's important to those groups and how we can contribute to things like employment or business outcomes for them and their communities. As we commit building our new site, we've worked with our First Nations people to obtain a naming renaming, the translation of our logo onto it in the local language, and also to commission an artwork to hang in the reception. The role of the customer council, you know, represents our stakeholders, our local community base. APA is a customer. It's hard to do our process from thousands of meters away, and the stories that have been embedded in this country to give you a real sense of where they are, who they are in their lives and being part of this country. APA was committed to achieving net zero by 2060. One of the core ways we were going to do that is reduce emissions, scope one and scope two on our current operating assets. It's a big job, and it's going to take time and effort. We need to work now to understand the technologies available to reduce our emissions now, but need to kind of keep our eye on the future as to what's achievable longer term as technology emerges and changes to support our path forward. I know that APA is a big work group hub for a lot more, and I've worked on a couple of projects like the 50th anniversary of Cowra Civic Centre as well as working in a hub for. It's really fantastic to be a graduate at APA. We have 14 incoming graduates in the 2022 cohort, 7 of which are girls. I can see myself working at APA for a very long time. There's so many career opportunities and always personal development opportunities. The kinds of work is pretty variety for you. Doing certified trades and straps, digging pipelines, doing a bit of tutoring, doing doors. It's a variety. If you're looking for a career in industry, I would recommend APA. It's got a lot of stability, great working hours and you get to travel around the country. People at APA are great. They're not afraid to speak up and stop themselves and to help each other. We're focused on our people, our customers and our future, and we do that through living and breathing our values. We put safety first, and we make sure our assets are reliable and available so that the lights are on and our gas flows. Good morning, everyone, and welcome to APA's investor update. Thanks for joining us for your call today. My name is Ben Tapp. I'm the chief financial manager of the group. I'm going to be introducing the background and the executive team questions throughout. I'm excited to have the opportunity to join you for the first time. It's a session I actually enjoy to be able to talk to the team, and just share some great work that the group is doing and start working with you to understand APA better. As Rob said, just opening, key messages for today. We're really looking to focus on growth. I think that was actually mentioned in Ben's opening discussion about where we're heading, 2023. We thought it was important for me to just give a specific update and also clarify some of the comments that Ben made earlier about the 5 strategic initiatives that we're working on. We'll start as we always do, I think, with safety. Ben, I might take a few questions specifically on safety. I know that there's a particular focus on both people and cultural safety at the moment, which is a good improvement. It's really important for us to continue to make progress. Sure. Thank you. Where that's led us to is just acknowledging our value to our employees and the value that that's offered to us for production stability. The last couple of years have been pretty tough, particularly in the southern states. Through that period in the last two years, we've reduced our travel default speed. If you like, let's say we're coming from India, typically our employees would come across at about 50%. We're going to travel at a reasonable speed where we still can offer that value, but we're reducing our travel. When we think about safety, we don't just think about personal safety. We think about health and wellbeing. We also think about purpose safety. Just to touch on health and wellbeing, which is a big topic at the moment. We have done for the last couple of years. At the back end of lockdown just in two, three last year, it was really important for us to go out and just culturally build that. For us to go out with every single employee that we have across the country and ask them how they're feeling, what's topical for them in their world. On the health and wellbeing front, we had over 90% of people believe that their leader cares about their health and wellbeing. That's the most contracts of all the agencies. Of those 2,004-day week out, we got more than 80 contracts which is plus 4 times the contract. That was really exciting and exciting that we operate a business which is about getting the best out of Western Australia. In the last month or so, we've also initiated a training module for wounded well-being which got actually a couple of days ago, and it's really structured around the idea of how possibility, which is just a little pretty simple three-step process where you engage with the person, sit them down, ask them how they're feeling, redirect them to services if they are. Importantly, we're checking in that, you know, maintaining that social fabric is the right way. The third element that we focused on is process safety. We didn't want to pick and choose one even though they were related. Really briefly, the more we prevent, but we're no experts in the field, but it still impacts people's lives differently. We've spent the last 3 years really building a solid foundation with our process safety framework, implementing that across the business, including corporate-wide process safety awareness training, and really putting us on a good foundation in our level of skills over the next couple of years to build that process safety framework within the business. Just referencing back to that culture build out of last year, when we talk to our employees and we ask them about how they feel about safety, over 95% of our employees feel that they can have their input and can buy into process safety. That was a pretty good photo of the people that we can do the work across the country, how they think about working out here and so forth. That's the mindset that we want to go with, and that comes with the care that our people inspect the stuff. I talked about our improvement plan. We're actually coming to the end of our last phase in improvement plan. What we're doing is going to have a look. The way we've gone about that whole process of starting a new structure is actually we'll ask our employees for safety data. We did it quite simply. We went around and we sent out a group of people to do process safety and look around at the back of our sites. We talked to around 100 of our employees at all levels and all locations and asked them about what's important to them in safety and how we can improve. We've used that really rich data to structure a top-down bottom-up improvement plan that we're now able to resource where it's needed. If I combine those three things I just described, personal safety, helping well-being, and process safety, ultimately our goal is to form the business and the scorecard that we want. In particular, that scorecard is the foundation that sets us up to grow. Not from when we're in our pandemic for business. We're talking to customers. Safety and how we go about our business comes to the fore, and we're really confident that we've got the right capability to build on that successfully going forward. Thank you. Darren, I'll say it might be okay. As John talked about in his presentation and the types of supplies from Western Australia, we have to factor in the major contracts with customers like Origin Energy who are affected on their contracts. They've got up to 10+ million of production that we expect to perform for the stage one of our development. Just based on again looking at changing pattern of suppliers and vendors from this customer perspective or even we've got annual customer demand across a range of customers. That would be a multiple of customers requires safety. You know, not all that stuff comes through. Given the dynamic of the market and given our capability to deliver for as both a benchmark and some criticized heavy and critical customers. Darren, what about in the West? You know, not to keep people focused on customers, but the customer demand in the West. Yeah, if I can talk a little bit from a freight perspective. The West is pretty exciting place for us at the moment. There's real strong demand for growth. If you look at the main asset that I'd like to talk about is the Goldfields Gas Pipeline Two. Goldfields Gas Pipeline One goes all the way from the West up in the Pilbara, comes out to Newman, travels south, gets down to Kalgoorlie, then comes out into Eastern Goldfields, through to country. 1,800 kilometers long. That pipeline was initially built to supply our APA customers in the Pilbara. We've now got 27+ hidden connections to that pipeline. Strength of the demand really allows the diversity from the travel to put it together and draw supply to different. It's the diversity of the minerals that are just pretty hard to find. Whether it's gold, nickel, some of the more rare earths, including cobalt and potash, most of those minerals require energy. They require energy to be mined, processed. For a third of three minerals, they're not close to our cables today within the structure. As we're a customer driven business, we really look to fulfill the needs of the customer base. What they're telling us is they are looking to decarbonize their supply chain, and they want gas to do it, and they're looking to blend that with renewables. We're at a predominant solar in our business, the wind also. How do you combine that with gas then? Decarbonized but importantly, as we've said earlier, how is that supply secure? It has to be secure 24/7. We are in the middle of commissioning our first microgrid in the west. We're looking forward to that process of interest. We're really well positioned to leverage that with EnerSys to work with our customers to enable them to decarbonize and meet their goals. We've seen similar demand for public versus combination. I'll give you an example. I mean, Chase currently is a marketplace solar farms for our megawatts. Carnegie has got around the best generation or best value deals. These are 2012. Then putting renewables in that market. That's becoming a big, a large opportunity for solar farm. Our level, it's been programmed for very long, but we have a solar farm site in Dugald River near, so that's an example in the Carnegie region. It's one of the mineral regions that tends to be very attractive for renewables power because effectively because we're in the gas industry, which doesn't tend to be close to the market. That's not working across, you know, similarly to things like the wind farm which have come up into the Dugald River and we've got a couple of things, and then eventually it comes out. I think that now I'm there, that's when we've got projects underway with Dugald River at the moment. I wonder if you can talk to me about how the team manages those sorts of. We did, and you know, as we mentioned on our website, our commitments to them. Also a big focus for EnerSys on composting. One in this is non-recurring facility. It's a project on the ground. We're building several new ones start renewables to turn into custom products that can be touched. Composting actually is a meaningful project that's being socialized through or attempted to be socialized through customer choice. In Queensland, there's a wonderful territory outstanding, people may not be so aware of the region, but that means people in the region with a standard household bill multiple different systems to fill that cost. Composting recognizes between the, because of all the green blame, because they're in some territory in that actual frontier region that costs 4 months of garbage in that region will go up a bit of a compost system. It's probably not well appreciated, but composting plants have come across the ground and actually significantly decrease costs. This is more rational process for transitioning customer. It's a very good process for managing that. Second is really efficient projects. We will get the project in the RSP to the end result. From a project like an island system or something like that, a lot of the mechanisms are not fully involved in a lot of capacity to offer solar farms. There are projects that are different than that, but it's also different goods because if you want to help customers transition there, it makes a difference from a AUD 3 billion project versus something a lot lower than that, maybe AUD 10 million. Five times as much can be sort of leveraged in the system plan or in different projects. Certainly, I'm not on a different quality, but just in the sense of the buy down. People are actually pretty good at doing these transition projects and stuff that's entirely hard to get, you know, efficiency gains on projects that don't have much sort of variety. My third point is the part of the compensation is going into the assets for AUD 50, something like AUD 50 anyway because of line losses and other things. The cost to downsize the region to be connected again is extremely unknown cost. AUD 50, it would be higher than that still. Not an accurate representation, but as a rough guide, our build is equal to 12,000. In Queensland, that allows a little over AUD 3. AUD 3 is a good build. We know that today we're only really becoming cost effective if the checkup cost comes down. The wholesale price and the lowest bid for the wholesale is very, it is very stacked up. It's sort of a structure that people should be still looking to speculate. What are your thoughts on emerging tech and, you know, and maybe it could just really help with that point where we are in the different stages. Excellent. I think that's a really good update. The first time I backed into this because I was doing a review for a thorough understanding of this project between the asset looking at different growth strategies on that line. You specifically touched on potential planning with HIMA and, you know, really understanding where you see some potential opportunities as well. Perhaps that's maybe a different thing we can talk about. In the process, there's a new process and a new sort of process for the way that we're taking the Indigenous country land mass into account. Covering the areas of the country that don't get that touch, whereas in this process, we can look at that as well. I think we've got two things. Of course, if we turn this around so that we can get sort of real-time data, we can look at how well these things are working. If we make them perform some sort of sorting or part, having that again in real time from one site might be a little bit more familiar with it. We think the best way to do this is by putting it on a battery model where one can see exactly what's going on. Say I've got 5 different amenities, and that's real-time data design. It would be really useful to put in your phone or in an important asset. For instance, in a live line coming up the road, just an asset related to what the close to critical asset. Give everyone this different input and all the time. I mean, everyone understands the question first, how the power's got to these poles. Looking further on the LCOEs across the different model with source and supermarket over there, and then the line from the site to our thing. We thought that things really are just under regulation as well as the customer service. Right. Help with the take money. I think for students who want the resources. Certainly I'll put it in the input. If you put the form, we can go from there. Potential risk around the grid was obviously involved in government talks about that design and how that operation would work and make sure that we're all on the next steps from there. Awesome. Yeah, I think Rob touched on it a lot already in his presentation. Yeah, clearly, you know, working with the U.K. government where so we can build it to take advantage. If you want to build a government system, you've got to pick the right partner with the right capabilities. In that process, I think the process involves us picking up. What I think is strong, I think that process of running through the balance of the engineering teams that work with the short-listed parties to run a trial and, then get us to a meeting to start a final proposal meeting. I think what's important as well is quite a lot of information going into that start. We've got quite a lot of detailed areas that we have to consider. There's things in the past that we've looked at or that we're more interested in. We're getting those kind of things as a generation tender. One document influence, the process on point three, then I just think we're building things together that can support the various generations. I think it's really important that the real trend is always around the right structural order. There's also a difference being asked around the difference between network and transmission that we've mentioned. Think about a transition from frames to something like solar or wind or energy growth. We're gonna have a transition there. We're gonna have that transition from generation, and therefore we need to ensure that we've then delivered that in the 50 power serving in terms of assets required and people ready to inject the next transition asset. That's the conundrum. What they're doing with the tender process is they're working with the generators in a generation bid, and they're working with the ground members to bring that through. Really, a lot of that work around ensuring the right selection across the nation. Well then, obviously those challenges are probably the main things that strive. There's a crazy range of platforms and different inputs coming together to integrate something. We've all been thinking how long this will take. Amanda Cheney, from your point of view, what sort of pressures do you think this puts? From your point of view, what sort of pressure does this put on? Well, first of all, one of the main points we made before was that this is a big investment. It's a big investment in terms of the platform. You know, the guys in the board say that if we make much use of the AI that's going to put so much pressure on different projects. Engaging with all the authorities to get the approval is something that's not easy. It's a huge task, and that's something that we're working really hard at, and that work is now underway. It's really, we're actually focusing on looking around how this all works and how we're able to engage with our government support in this learning process. We will do that. We've got to. I think about the different elements. We heard in the video. We find that the way to get buy-in from traditional owners on that project and the complexity of the project is different to what we've seen in the past. To build on the relationship in particular, we work with our existing third parties, pathways to business and employment opportunities for traditional owners. That's both the way and something we want to bring in more of in the future. When I think about the landowners, we have agreements to work with the landowners along the pipeline. When I think about landowners, you've made some inquiries about 15,000 kilometers of pipeline in this country, 1 million towers which come in. We will have people building some projects like this when money is needed to invest it for. We are used to doing it. Finally, I might just say we have put forward in our construction contracts on that project, we have hard WII and our construction contracts with it. These kind of roll it into the way you are thinking about local employment and starting to have a big construction contract with all the progress that we've made. Well, probably, actually, I guess, you know, probably the best thing for us to ask where we're at with the construction. Well, we've just commenced construction on the compressor station on site. We've been doing a lot of earth work preparation work up at Windassat where we want to put the target compressor kit. The compressor station and the pipeline will be connecting to the Greater Pilbara rail network construction site pretty quick. If all goes well, which we obviously hope it will, we will be constructing that between now and the end of the year. Then contracted work in that region. Because I think when we talk for open investment questions and talking about the market opportunity in WA and more nationally, we're looking at things that sell and have some WII and some reservations on that. It's enough to put people off investing in pension markets. We've got people that want to do what they want for their business trust. Then I'll talk about the business of employing young women as referral contractors. We've got a number of customers I know Rich has talked about, and it's always important there because I've always said before we've got young girls in engagement that are just blown away by that. The customers themselves do. For the NGR, we're looking at really having contractors install those lines and the contracts to go to contractors, individual customers like that for us. The NGR is a big income stream. It's predominantly from New Providence, but also from Intermental Road. Different customers are talking about how people see it as a whole for Internet. It's a little different. In terms of authority customers at the moment, we've got a whole raft of guys that are building off the NGR, which is a priority work program environment complex. The government's helping us with that. We've got many teams going. The only goal from this customer was more immersed in all this. Our average customer puts in 3 works. Customers paying for it could get hundreds in EPI different scopes. There's also a customer for some cross-sector outcomes for things that businesses do that people can't compete with. I think it's, you know, growing customer base and value and it's grown a lot just for digital only. There's still a fair lot of customers that are going to come into the NGR that are on the list of builds that the customers want to see. That's a bigger market than NGR for minimal jobs to put in. Great to have you here. I think this time last year we were probably under 10 because of COVID restrictions and still dealing with that problem. We haven't spent a lot of time talking about the US today, but from a corporate point of view, what's happening in the US workforce is particularly critical for our business. Well, basically, yeah, I mean, it would be fair to say that the US has had development through almost like the start of this year. Certainly it's been declining since the beginning of the year. You talk about the size of the trial. I think the estimate is short, but the scale of what's in the US is quite significant in terms of this trial. I combine that with the global risk registry environment, and I think it just goes to show that this performance is important. It continues to suggest to us that there's opportunity abroad. These are great opportunities and they're most likely going to be in the U.S. We started looking at the infrastructure exactly with pressure, maybe just recently, not that long ago. But this is the Australian approach, and I think we both came out of the government side into the equity strategy. The growth there is quite phenomenal at the moment. It reinforces the work that Joe has been connecting the network to manage the risk space in that. That trial has been started and is underway and we think out through the first half of next year, 20-25 years. We're confident about the opportunities ahead of us. It's really a time of continuing to develop relationships with tools in the market, retail, particularly to all of our suppliers relationships. The understanding of different regions and areas just like place by place, we continue to watch and absorb the issues around it and comfortable that we're in good position to respond to the opportunity as it arrives. We have been looking at for a while, hopefully what it says about a recognition that we have been patient and we can continue to be patient, and we're going to find those opportunities when they present themselves. I often get asked, Gretchen, about the price of steel. There are no bargains in steel, but I also find that when I see some of these valuations that come up in Australian market, the U.S. market is considerably cheaper compared to the Australian market. I'm confident that we continue to be patient and that there will be product opportunities that come our way. That's what we've been able to source opportunities for our clients to do that. All right. Thank you. Gavin, we had a question about the quality then. There's footage in the video of some of what was going on in the open interest yesterday. I think maybe Christian might be talking a little more about this. Yes. In Australia, we have a system where we have a lot of different types of investors which cover a broad spectrum of people from all walks of life. We don't impose that much restriction on customers in having access to investments. That's very different to some of the other jurisdictions. We also use a different way of categorizing investments. We just don't. That one set of people will receive, they won't have any restrictions at all. What they do for each project is start the project by having sort of multi-family to see whether we can find the right investors. If we can find the right investors, we offer it to a small number of times. That's significantly different to the UK one. We have actually built a platform that we use to test the interest of investors. They can actually just get the information. We can't secure it for everybody, but we can offer it to a small group of people. We simply are able to start at 100% occupancy. There's still a lot of work to do because at the end of it, you will go on the same platform where we have to talk to lots of different companies across the country. We have to do it several times. That's something that's important for us to get to this year. Then we have to do our regulatory approval process, which comes to recognition. At the moment, for the projects that we're working on, we have an understanding of the product. We just need to go and take the platform and put that into it. We will review it. We have had a lot of interest from investors coming against our platform, and we're being approached and introduced by the platform companies. We've been able to build those relationships since day one. That means we can get a lot of interest. We can actually use those platforms to conduct due diligence ourselves to test the viability and the standard of the investment and have the platform open for investors who have a little bit of platform to deliver the best outcome for the investor. It's the ultimate test that we want. We can use the platforms to help us get to that stage. We've got another couple of threads that may have been gone away, and I might just bring people in to see if they have something here. Well, I would say that we're touching base back with the teams and actually as well. In all of our high growth projects, we probably have at least 20-30 people working on it across the business because we have to work across those areas. We also have a whole range of technical people which are very, very experienced. The three high growth projects that we're working on, that's all getting to 30 people. We are finding that we need those 30 people. We could have the people before. In select projects, we will need to get 50. This is a large scale or high risk project. We have to be able to put processes and procedures in place so that we can track all the processes. This helps us undertake the best practice. That's what we take to market because it's the best practice. 88 and 41 is the project focus which we want to get ready for the platform. It is currently in the pit. We are looking to perhaps pipe it and have it produced as part of the 10 project. The other project is the Blue Titan little project. It's the great basalts that sit above the natural gas field. It's half a mile thick and actually probably over 8,000 feet deep. We believe that the tight oil reservoir above that could be economically produced. We think it's going to be a decent type of production, type of oil field in those reservoirs. It's oil reservoirs, I think. And there's also some interest in producing gas from that as well. Andrew, my question is: which fields do you think are really important to our near-term system and how does it improve our focus on what we're actually doing and working with the system? Really our work at the moment is concentrating on the near-term opportunity and our near-term targets. Really the planning around how we're going to get there. I think this is very much focused on how what's the right fit for our business, particularly given the sort of different asset bases that we have and our areas of strength. What are those opportunities for production and for, you know, what's the role of oil and gas in our portfolio? With that in mind, we're really considering where do we focus our efforts, what kind of targets we have, but absolutely where those can be focused in, and how do we actually get there to then produce the intended sort of production profile that we think is appropriate. At the same time, we've identified Site Three, and we're working collaboratively to understand what asset base we have at Site Three and what it can support from a development point of view, as well as looking at acquiring assets and how that fits within our portfolio and working with partners on the front end. We're starting to come together around the commonality of where we are focused and deciding the best way forward to transplant those assets into production. Okay. Adam, how do we factor into our investment decisions? If we prefer within oil and gas, how much are we prepared to put in? The reality is, we all know that the target for oil and gas assets is between 20-30. If we put AUD 24 billion into, you know, if we put that much money into oil and gas, then we've got a problem with our liquidity. The challenge trying to work that one out is, given the spread that we have between sort of field development and cash flow, it's looking at structured financing, which we've discussed, and approaching it from a level of return that is acceptable to members and something that we think we can actually deliver. We can't do that in, like a physical sort of way where we spend the dollars and then balance sheet higher. We need to do it in a kind of a process and a thought influence as well. I want to ask you a question on opportunities that the company has and we all look forward to. For the board and the executives, our real focus is on opportunity because we think it's really important to have and use as a core element. Values that we have are just as important because they attach to the results, help us deliver, help us create the culture that we value and that we think is appropriate. Importantly, also help us create the next generation of leaders that we need. That's something that I'm actually really interested in from our point of view. For example, climate change is going to have an extreme impact on future business cases. It's one of the key areas that the board is actively engaged with at the moment. At a practical level, we have governance protocols with the experts from the big three, so the big three oil companies to talk about and listen to what they say and to inform our own thinking and our approach to that level of risk. As you would expect from a board chair, who's really thoughtful about directors, we think about the talent, both in the style of people coming in. We've done some work around diversity, but we're still quite far from where we need to be. That's something we're actively working on. Coming to email, guys, I think we have about 66,400 emails. We have about 150 managers who process about 2,000 emails a week. And Adam, ESG considerations in our capital markets, as you know, in, took us through some, the outlook for the oil market. I think the governance one, the thing that I think is coming is the importance of thought space and the importance of trust with capital. I guess that's the economics. It's not just about the information that's put out through how the company talks or the providers tell us what the company is doing. I think a lot more comes from the actual actions that the company takes. It's good news in a way, because I think it's based on the fact that there's more digital information that we can access, which gives us more. I think France program is quite controversial here in the United Kingdom. I'm sure that in the next few years this area will be flying and the trends are just so good. I can't see anything but good. Just some stats from our site is the governance requirements are almost all of those can be completed, but it's not fully turned on to have that level of oversight still coming from your government. It's also just deciding when the greater value is to have an external review house that you do sort of things to challenge your access and the value for everybody. Gary, I understand that the Bank of New South Wales has recently just won half of all active accounts by the bank. That's 2 just under 1 billion at the moment. I was just interested in your thoughts on how or what is driving that? Okay. The first thing I would say is that I mentioned that I'm a statistician, and here's the fact that people forget. The first time I went to visit my sister-in-law in the United States was in 2008. It's about 10 years ago. We flew from London to New York. When we got to Heathrow, we went through customs. When I looked up at the screen, it said, "Please identify yourself." I thought, "Oh, my God, this is such that nobody's flying with a passport." I was getting the only passport I'd brought with me was my card. Normally you have to produce your passport either at the stage of ticketing which is when you book your ticket or at the stage of boarding which is when you actually get on the plane. There are problems with both of these. You can't travel with your passport especially if you are finishing a contract. For many people having a copy of your passport is risky because that copy can get lost. When you have a look at global travel, you don't want to take that risk. Clearly we are seeing a shift. We've got a new way of life. Through that survey, everybody mentioned that we know it can be spacey to deal with one piece of paperwork, which is great for us of course. The other thing that was really good was we identified an area for improvement and that was to do with age groups. We also found that there was a need for additional milestones. What we've done about that is a number of things. We've seen a considerable feedback with our current release because that's about our fourth one. We went with a market research firm to find a place that will increase our reach with the flying public. That was up to 18-20. We also wanted to target people already who are out of their twenties. Again, that is a real attraction for any business but also one for the travel network. The other thing that we really concentrate all the time, I'll be up to current time frame is within 56% now of our general input is out of date. According to his feedback, this is becoming a pretty predominant. The good news is that we've actually spent about 6 months a year of that what we call audit of profiling to about 18. Again, we've concentrated in that area about getting up to date in delivering our output. Lastly, I'm just sort of looking at my notes here. Yesterday we were told that we actually are number one in Australia for the past 2 tax returns. That's pretty awesome because we're a budget next to a big four investor firm, companies like Survey to Survey. Who actually did that survey was the actual tax office. That's from ATO and people. I'm very proud of the investment into the product and how it's helping people really, really take control of their tax. Now going on to, I think that question maybe it might end on me. We need to wrap it up. I do want to get you to just wrap up on the regulations from the office of the Australian Securities and Investments Commission. Obviously Dan, like last week or so we came out with 450 operators sort of like moving back into the system. We had 50 operator sites across the country. In my realm, sites is people. People about 100. That's a big red flag where the big groups were caught and the video will show it. The small things like the software entity, the bigger associations like on the Fred Harvey Association. It's very alarming for where we work in the region and the people we work with. Dan Guy that cuts off graduates. Really move that into what comes through and it really is 50-50 split for both different. If you look lightly on the last couple of years and actually the headline profit couple of years. As people breastfed and colleagues also are going off to work this year, often on a close to 50% with half in roles. Families, breastfed colleagues who are locked down now. That's a pretty high price to pay for taking some of that build time. We take the units growing. Importantly, we've got a pool with the social fabric around the edges and the way we connect with people better. We are really confident that combining profitability and stability, long-term plan. Importantly, we're really confident that we get something in our pool for getting customers in the doors. We're getting those people to come from further out in the community. With that, I'll ask people to. Right. It's been a good morning, and I think quick, and I won't sit and listen to the afternoon. I really wanted to thank you all for your participation this morning. We've heard about the challenges and the opportunities that the energy transition presents and brings in them. We've heard about the critical role that we think gas plays in the sort of decarbonization toolkit now, but we've also heard about the real risks and the risks that are posed by gas supply and therefore the importance of a gas supply strategy going forward also. We've heard from Adam Watson about the capital allocation and how we can fund our growth transitions and build zero net carbon capacity. We've heard from the AGA team, from Ed, Michael, and Theo about our opportunities. On that point about James Fazzino, I made a point about James Fazzino, but I wanted to be able to publicly thank our AGM Chair, James Fazzino, for really great representation over the last few years and being able to lead that charge and accept such a tremendous job continuing to deliver for all of our stakeholders. I'd also like to thank the panel that we just wrapped the afternoon with, for the useful discussion. Of course, we also thank the AGA team who've been helping to pull this morning together. We've also heard from our industry experts, David Pursell and Sue, who've been able to share their insights on how they see the energy transition impacting on the manufacturing sector, which of course is part of Australia's economy, and also how it relates to things. I wanted to thank Dave and Sue for coming along to share their insights, which was particularly valuable. Again, I wanted to thank you once again for your interest in joining us here this morning. I hope that you've come away as confident, feeling confident of where we start the role that AGA will play in the energy transition to help your customers okay, and confident in our ability to be always powerful together. Thanks very much.

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